New ad: why did Flipkart go back to basics?

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E-commerce major Flipkart, with 75 million registered users, has gone back to explaining the basics of online shopping to Indian shoppers with its TV ad campaign, Flipkartmatlab bilkul pakka.

The two-film campaign seeks to reassure customers that they can never go wrong while shopping on Flipkart, as the platform sells 100 per cent original merchandise which can be easily exchanged or returned.

“I see this campaign as a purely reactive measure by Flipkart in response to the Morgan Stanley fiasco and Alibaba’s imminent entry into India,” remarked Sanchit Vir Gogia, Chief Analyst, Greyhound Research.

“Flipkart should have launched this market-building campaign three-four years ago, instead of focusing aggressively on customer acquisitions by doling out huge discounts, thereby incurring huge losses.”

On Flipkart choosing to showcase high-value products, Gogia explained that it could be strategy to mitigate losses. “They need to become profitable. Showcasing high-value products will get them much higher margins, than low-value, high-volume categories like mobile phones and accessories.”

Source: The Hindu Business Line

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