Flipkart’s newest product: Trust

Logo of Flipkart.com
Flipkart.com (Photo credit: Wikipedia)

India’s most famous E-commerce company Flipkart (they aren’t the biggest, that would be mjunction) has been around since 2007. Over the last 5 years, they have emerged as a clear favourite among customers owing to their almost delightful customer service.

Indiamart introduced Cash-on-delivery back in 2001 and then discontinued it in 2003. Flipkart reintroduced Cash-on-Delivery and this feature has now become one of the most crucial payment methods for Indians shopping online.

The point here is, back in 2007, Flipkart started with selling books online. Five years later it has  steadily scaled its business by foraying into categories like computers & peripherals, CDs & DVDs, games, home and kitchen appliances, mobile & accessories, personal and healthcare equipments ( I am sure there they have added more recently, the latest being baby products).

Indians can be frugal by nature, and getting deep discounts with the added benefit of free home delivery drove Indians to shop online. Along the way, Flipkart managed to delight its customers with fast deliveries.

Now in the 3rd quarter of 2012, things look different. Flipkart now wants its customers to shop for a minimum of Rs 300/- to avail of free delivery (Flipkart websiteHow much are the delivery charges? Flipkart provides free delivery on all items if your total order amount is Rs. 300/- or more. Otherwise Rs. 30/- is charged as delivery charges.)

Flipkart is also no longer the cheapest options available online. Below are some screenshots of randomly selected products from Flipkart’s top selling categories:

Books

Mobiles

Electronics

This brings us to an important junction, if people came to shop on Flipkart for price concessions and delivery convenience, why are they still here. The answer to that could very well be Flipkart’s most important product category yet, “Trust”. Flipkart has managed to build a Reputation (dependable and quick), which has created Brand value (reliable and delightful), which over time has built consumer Trust in the brand.

It is this trust in the brand that is being subliminally reinforced by their newest Advertising campaign “Don’t shop it, Flipkart it” (the complete Flipkart Advertising Campaign, August 2012)

Another perspective by Alok Kejriwal – Flipkart ads on TV – are they building the online category at their own cost?

Do share your thoughts.

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Microsoft launches Surface, their own Tablet.

A little over an hour ago, in one of the most secretive press conferences ever, Microsoft launched Surface. According to early reports from Engadget, the specifications for the new Tablet are as follows, “Measuring just 9.3mm thick, the Surface for Windows RT is built around an angled, all-magnesium VaporMg case that weighs just under 1.3 pounds, with an NVIDIA-made ARM chip powering the whole affair. Microsoft’s hardware partner has also gone all-out on extra touches, such as a built-in stand, twin 2×2 MIMO antennas for WiFi, and a 10.6-inch optically-bonded, Gorilla Glass 2-covered HD display.” [Update: The full specifications are now available here]

Another impressive feature is that Microsoft is offering the Tab with two types of Keyboards. A Type Cover full tactile keyboard, and a simple Touch Cover keyboard. According to the Verge, “It may seem like a minor difference, but the Touch cover keyboard is an improvement over the standard capacitive touch keyboard, while the Type Cover is a slimmed down version of a true keyboard with actual moving keys.

Below is the official video released by Microsoft

Do you think this will be able to make enough sales to impact the market share that Apple currently holds with their iPad?

Microsoft, Facebook Announce Patent Agreement

Image representing Microsoft as depicted in Cr...
Image via CrunchBase

Microsoft just announced a Patent agreement with Facebook (you can check out the original Press Release below) According to Robert Scoble (Startup Liaison Officer at Rackspace Managed Hosting), this can get extremely interesting for a few reasons:

1. It shows Microsoft has no chance at all to get into social game other than to license Facebook.
2. Facebook needs more weapons to use in negotiations with Apple.
3. Facebook needs more weapons to hold off Google+ (or Amazon) from cloning everything and moving users to Google (or Amazon).

This is a well calculated move on Microsoft’s part as this paves the way to get Facebook on-board as a key partner in all Windows initiatives including Windows 8 and Xbox.

The Press Release is paraphrased below and can be viewed in full here

REDMOND, Wash. and MENLO PARK, Calif. — April 23, 2012 — Microsoft Corp. and Facebook announced today a definitive agreement under which Microsoft will assign to Facebook the right to purchase a portion of the patent portfolio it recently agreed to acquire from AOL Inc. Facebook has agreed to purchase this portion for $550 million in cash.

In the initial AOL auction, Microsoft secured the ability to own or assign approximately 925 U.S. patents and patent applications plus a license to AOL’s remaining patent portfolio, which contains approximately 300 additional patents that were not for sale.

As a result of today’s agreement, Facebook will obtain ownership of approximately 650 AOL patents and patent applications, plus a license to the AOL patents and applications that Microsoft will purchase and own.

Upon closing of this transaction with Facebook, Microsoft will retain ownership of approximately 275 AOL patents and applications; a license to the approximately 650 AOL patents and applications that will now be owned by Facebook; and a license to approximately 300 patents that AOL did not sell in its auction.

“Today’s agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction,” said Brad Smith, executive vice president and general counsel, Microsoft. “As we said earlier this month, we had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio.”

“Today’s agreement with Microsoft represents an important acquisition for Facebook,” said Ted Ullyot, general counsel, Facebook. “This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook’s interests over the long term.”

The parties are evaluating the accounting treatment for these transactions. These transactions are also subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.