Flipkart banks on smartphones to boost sales in 2017-18
Added: (Wed Mar 15 2017)
Pressbox (Press Release) -
Bengaluru: India’s largest e-commerce firm Flipkart Ltd expects gross sales to increase by 50-60% in the next financial year, powered by its reclaimed dominance of online smartphone sales.
Apart from smartphones, which account for roughly half of all e-commerce sales in India, Flipkart will focus on increasing sales of large appliances, fashion and furniture, chief operating officer Nitin Seth said in an interview. Seth added that the company will start selling groceries later this year. He declined to give Flipkart’s sales growth expectation or sales numbers for the year ending March.
Flipkart also expects the e-commerce industry to bounce back in the coming months after a strong start to the year.
“The thing about the e-commerce industry is that it’s pretty much a function of whether Flipkart grows. That’s an important thing to understand because a lot is driven by the (two) top players. So, if we grow by 50-60%, which we are very confident of, we believe that the industry will grow at 40-50% and we definitely hope to further increase our market share lead this year,” Seth said.
In 2016, India’s e-commerce sales were nearly stagnant at $14-15 billion as Flipkart and smaller rival Snapdeal struggled in the first half of the year because of leadership changes (in the case of Flipkart) and investor pressure on both companies to cut costs.