E-Retail In India is Graduating to Differentiation With Hons In Positioning!!

Flipkart & Snapdeal Eying Everything from Automobiles To Grocery, Fashionistas Myntra & Jabong Busy In Creating Their Niche!!

So what if its still an evolving business, Rules have started being written and Players are already busy in setting their Tactics and defining their Territories!!

Flipkart has identified an opportunity 6 years back and shown guts to build a business from scratch in a virgin territory. It really takes a lot to be a prime mover, advantages can be reaped much later and that too are not sure. As there were no peripheral services and Business Confidence to support Online-Retail Business Model, FK had to integrate across value chain to make this model a really sustainable one!! The bets paid off , hats off to their Vision and a superb execution of their smart strategy. These Bansal friends really showcased the world that what India can do without the So-Called Ecosystem for Innovations and Entrepreneurs, ` $1Bn Turnover in 6 Years` , An year faster than the Big Daddy Amazon, really made them the Darling of E-Commerce. Their Both the S are clear, Strategy & Sight, they want to sell anything and everything , wish to address all needs of an individual Indian Consumer. They have started it so wannabe Ace.....The Amazons & Alibaba`s of Indian E-Commerce Space!!

Working Visa problem for Indian professionals at US, gave birth to India`s E-Commerce Blue-Eyed Boy Snapdeal aka Kunal. Sd`s Kunal Bahl is so synonymous with the Brand, he is the CEO , he is the Brand Ambassador , he is such a dynamic leader who knows how to be innovative and successful at the same time!! With a friend who again happens to be a Bansal, he incubated an altogether different business model of E-Retail. His belief in a Marketplace Model just gave wings to this company and in just 4 years he scaled-up Snapdeal to skies. He is going to touch that $1Bn Mark in  his 5th year of operations only and creating a new record. He challenged the Inventory Business Model and re-written the Rules of Business. Now everyone is following the same. Beware!! FK , how will you differentiate....These two companies are showing the spirit of  the true competitors following each other but how will they differentiate from here onwards!!

Myntra & Jabong both have got their strategies in place, after testing waters they made a quick decision to be a Niche player. So they differentiated themselves with the established players (Sd/FK) thru their offerings. Actually they believed in Sanity of business, i.e the Bottom Line, they went after the categories which are the most profitable, The Apparels. While their counterparts`s too much involvement in Vanity, i.e the Sales Turnover(Dealing in All categories & looking for Scale) still keeping them away from profits since their inception.

Now Myntra & Jabong are trying their hands at Positioning to really take advantage of their Focused Niche Strategy. Whether its association with LFW, Iconic Designers Rohit Bal, Films like Main Tera Hero , Yeh Jawani Hai Deewani, Bhaag Milkha Bhaag and Dhoom 3 , or exclusive arrangements with World`s top  fashion brands, it is only helping Jabong to set a clear positioning for Fashion oriented consumers, its TG. Who have started perceiving Jabong as some fashion destination which they are not hesitate of trying. On the other side Myntra also want to make it clear to its TG by clearly positioning its Brand in association with Fashion Design Council Of India for WIFW. Myntra wants to be an aspiring fashion destination for fashion oriented Indian consumers and seriously trying out many options to be associated with Fashion word to portray as an adorable Apparel brand.

But are they not heading towards the same destination, the same Brand image!! It again takes us to the same question-The challenge lies that how to differentiate from here!!

Tactics like Exclusive Brand Engagements/Promotions, Same Day Delivery, Discounts are just operational measures which don't seem to give sustainable competitive advantage in long run. The market is still nascent, these tactics may work for sometime now but some real Strategy is required to be a long run WINNER!!