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Flipkart & Amazon give global brands a new lease of life

India’s two largest online marketplaces — Flipkart and Amazon — have helped brands like BlackBerry, TCL, Asus, Honor, Nokia, Thomson, Inalsa and Kodak, to expand and enter new categories. These e-commerce companies have helped by enabling faster payment, reducing the credit period and providing a marketing push. Asus and Honor smartphones, which were relaunched in India through Flipkart, achieved sales of 1 million for the first time.

Flipkart is also helping co-create products for brands with which it has long-term relationships by providing deeper consumer insights. On Amazon, BlackBerry is among the best-sellers in premium smartphones, while TCL dominates in large screen televisions. It has sold almost 3 lakh television sets in India so far this year, becoming the largest brand in the category for Amazon.

Bosch has created the dishwasher category on Amazon and Nokia is among the top brands even with a strong offline presence. Asus India will soon offer devices in a range of price points, including the sub-Rs 10,000 segment, where it will launch two smartphones.

Amazon and Flipkart do not charge strategic partners for consumer insights and they also manage marketing, advertising and distribution, which make it easier for these brands to take another shot at the market without incurring a large working capital outflow.

 

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