Indian e-Commerce Companies Aim To Turn Profitable In 2016

by Paul Joseph on December 26, 2013 · 0 comments

The Indian e-Commerce segment might have appeared to be firing on all cylinders post the Great Online Shopping Festival ( GOSF ) organized by search giant Google, but these web-businesses are presently burning more cash than what they are making. However, based on multiple reassuring parameters , the companies are confident of not just breaking-even, but turning profitable in the year 2016. The Tough Choice Between Sales and Growth: Majority of the prominent online shopping portals are gradually choosing one of the two methods and interestingly, each camp has justifiable reasons that the companies feel are vital to be focused on , if they want to be more than ‘Just Another Shopping Website’. While online shopping destinations SnapDeal and Myntra have opted to achieve ‘ Sustainable Growth ’, Flipkart , still feels it needs to close a sale ‘ At Any Cost ’. SnapDeal has targeted gross sales of Rs. 6,220 Crores (US$ 1 Billion) by 2014 and start turning profitable by mid/end of 2015. Surprisingly, even with this pace, the company could just be the first Indian Online Shopping portal to have black on its Balance Sheet instead of red, shared Kunal Bahl, Co-Founder, SnapDeal, who is betting big on the mobile commerce too. His reliance on the mobile platform driving sales is so high that he expects as many as 75% of all orders to come from it. Myntra , that has been making gradual progress owing to its niche factor , has set a rather modest target of Rs. 800 Crores (US$ 129 Million) for the next year and this is because the company prefers progress to sales, said Mukesh Bansal, Founder, Myntra, “ The choice is between sales at any cost or sustainable growth. We have chosen the latter. ” On the contrary, Flipkart is still focused on clocking higher number of sales, shared Binny Bansal, Co-Founder, Flipkart, “ Our focus right now is still on investing in our growth story .” Online Commerce is certainly a reliable segment, but owing to extensive competition, coupled with entry of powerful foreign companies has compelled these businesses to have a very cautious approach . With such a tussle, do you think the customer is benefiting?   Image Source | Labnol Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via – Web, Advertising and Technology Blog in India]

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