Flipkart Edges Past Amazon In Trust In Redseer Ranking; Paytm Will Invest Rs 17,000 Crore!
Paytm has announced a massive investment of Rs 17,000 crore in order to beat Flipkart and Amazon.
As the year draws to a close, ecommerce war is starting to warm up, as new entrant Paytm Mall has blown the war cry. In a direct challenge to existing ecommerce biggies, Paytm has announced a massive investment of $2.5 billion or close to Rs 17,000 crore in order to beat Flipkart and Amazon.
The challenge is pretty direct here, and both Flipkart and Amazon have more than one reason to be worried.
Meanwhile, in an interesting research, it has been revealed that Flipkart has edged past Amazon in terms of trust based ranking; and at the same time, Shopclues has nosedived in the same metrics.
Paytm Mall: We Want To Beat Flipkart and Amazon In India
Signalling a new era of tripartite war in the Indian ecommerce market, Paytm Mall has announced that they will invest $2.5 billion to dislodge Flipkart and Amazon in India.
During an interview, Paytm founder Vijay S. Sharma said,
“This is a marathon. It is absolutely not about this month’s number versus next,”.
When asked how much investment has Paytm Mall planned in the next few years, he said, “It will at least be 2-2.5 billion dollars”.
Sharma firmly believes that Paytm Mall has a “real good shot” at becoming India’s #1 ecommerce player; besides admitting that this cut-throat race is “not for the faint hearted”.
As per Sharma, Paytm Mall can beat Amazon and Flipkart in the next 3-5 years.
“As e-commerce business, we started six months ago and we are nearly half of the large companies. It has grown so fabulously well that we believe that we have a real good shot in the longer horizon, in 3-5 years, of (reaching) the top spot,”
Launched early this year with 68 million products, Paytm Mall has been pretty aggressive.
This festive season (Dussera-Diwali), Paytm Mall spent around Rs 1000 crore on offering discounts to ecommerce users, besides extending the same to offline purchasers.
They claimed to have garnered 20% share of the overall festive sales (although the numbers didn’t add up); and they want local kirana stores to become part of their network as they have planned QR based product catalogues for easy offline-online integration.
Speculations are also rife that Alibaba may use Paytm Mall’s reach and presence to kickstart their own ecommerce venture in India.
Flipkart Is More Trusted Than Amazon?
Meanwhile, research firm Redseer has come out with an interesting study, according to which Flipkart has become more trusted in the last few weeks, compared to Amazon.
As per their E-tailing Leadership Index (ELI), Flipkart has become the “Most Trusted Brand” in Q3 of 2017, as they scored 20 in the Trust parameter, compared to Amazon which scored 18. For Value Proposition and Experience, both portals were ranked same.
At the same time, Shopclues has scored miserably in this ranking, as the trust factor eroded among their users. As per RedSeer, Shopclues witnessed maximum drop in overall ranking, compared to other ecommerce portals.
In terms of demographics, Flipkart is #1 for low-value products in metro cities, meanwhile Amazon scored better for high value products in the same locations.
We will keep you posted as we receive more inputs and news regarding ecommerce industry in India.