Flipkart comes up with new strategy, plans to cross sell its services as well as its customers to its biggest clients. CEO Binny Bansal plans to cross-sell Flipkart’s commerce, supply chain and advertising services to its top-selling merchants and deep-pocketed brands such as Samsung . He also wants to monetize Flipkart’s registered customer base of 75 million by selling insights to these merchants and brands on who and where the top-paying customers are and what kind of products they want.
Smartphone brands Samsung and LeEco have spent sizable portions of their marketing budgets on Flipkart for the product launches of their latest handsets, also opening brand stores on the platform. Bansal had mentioned in an interview last week that:
“We are focussing on cross-selling,… There is a lot of overlap. We have seen brands using our services from across the board. For example, Samsung is using our advertising platform, they sell on Flipkart, and, hopefully in the future, we will power their supply chain.”
Bansal also wants to establish Ekart and Flipkart’s payments business as independent brands focused on business clients. He said in the interview that he expects Ekart and Flipkart’s fashion website Myntra to become profitable first, while the core commerce business at Flipkart and payments will need more scale to start making money.
If what Binny is planning actually take a good shape, it will aid him prove to a new set of investors that Flipkart has a business model that can stand on its own by generating cash flows from Ekart and the advertising business by next year. While Flipkart has more than $1 billion in the bank, it needs to keep replenishing its war chest to fend off an increasingly aggressive Amazon. Right now, the focus (on the seller-side) is on large brands that have the deep pockets to pay and the intent to reach scale, collect data and better their product portfolio in an efficient manner. On the customer-side, the focus is on offering the best-quality goods at the lowest cost in the least amount of time.
Experts are saying that Bansal’s strategy would help Flipkart have more control and information to brands. Leading brands have had a fractious relationship with online retailers and in the past have objected to the deep-discounting practices followed by these investor-backed ventures.