‘I don’t think e-marketplaces are a threat to the traditional retail stores’

In the last one year, the online marketplace has emerged as an effective alternative channel for product companies. Flipkart.com has been a frontrunner among the various e-marketplaces emerging in India. An exclusive interaction with Retail Head Michael Adnani:

CT: Online retail seems to be catching on in a big way. Do you believe it can be a big threat to the traditional brick-and-mortar distribution model?

Adnani: No, I don’t think it is a threat to the traditional retail stores. They have their own value which can never be replaced. The whole experience of shopping, going out with your family, the joy of looking at products and choosing is a different experience. We’re not even looking at replacing that. We’re just offering convenience to the customers, an alternate place for shopping. So, I would say the online channel can play a complementary role to the traditional one.

CT:E-marketplaces seem to be gaining popularity, particularly with the mid-sized businesses who don’t have access to a large distribution network. What are the main advantages they see?

Adnani:Yes, that is surely happening in a big way. In fact, now we don’t even have to go looking for brands. Everyone is coming to us. I think the key advantage these companies see with e-commerce is a much wider reach and ability to offer the same level of service across multiple locations. And of course, there is a big cost advantage too. Flipkart is trying to help them grow at a much faster pace. You look at some of the sales figures. Motorola is a classic example.

CT: Yes, but we also hear that the supply chain is not able to keep up with the demand at times…

Adnani::This has nothing to do with the supply chain or distribution network. If the vendor can keep up the production levels to match with the consumer demand, we can distribute the product. But there are times when the demand suddenly goes up beyond expectations, which is what happened in the case of Motorola. At such times, even the brick-and-mortar stores are not able to keep up. While we do try and make our projections as accurate as possible, these things can still happen.

CT: Do you also offer branding and marketing support to these companies?

Adnani::Yes, we have a dedicated team for doing that. We offer support at every stage, right from custom clearance to the final distribution of products. We let these companies do what they are good at i.e. manufacturing. And we do what we are good at i.e. distribution.

CT: How do you see the e-commerce space evolving in the coming months?

Adnani::It is evolving very fast. In fact, it is now m-commerce, not e-commerce. The mobile has given a huge boost to growth. Everyone may not have access to a desktop, but today almost everyone has a mobile. This has made online buying very convenient for all kind of consumers.