Flipkart Plays Sore Loser in the Moto G4 Launch
Flipkart sees some bad days while the company is seeing a mark down in share value by up to 27%, a lot of manufacturers are choosing to go with other Online e-commerce players which offer not only better customer support but have better business practices.
A mutual fund managed by Morgan Stanley has recently marked down the value of Flipkart’s shares by 27%, indicating that global investors believe India’s largest internet company is overvalued.
Flipkart, who had in a press release, mentioned that the value of the company is at $15.2 billion right now. A 27% fall in Flipkart’s share price would imply Flipkart’s valuation now is around $11 billion vs. the 15.2 billion claimed.
But, yesterday’s launch of the Moto G4 was an indication of one of many manufacturers including Lenovo, and now Lenovo-owned Moto, who have shifted their sales to the like of Amazon with higher levels of customer satisfaction. Xiaomi, a brand who had launched in the country with Flipkart has also turned to Amazon this year for offering the Redmi Note 3.
Losing out on flash sales and exclusive launches means that E-commerce giants like Flipkart will also lose out on significant and quick revenues, a large chunk of traffic and customer loyalty.
Flipkart today released a print ad reading #motoOnFlipkart which is identical to the advertisement done by Amazon for their Moto on Amazon.
It seems that Flipkart is now worried that it is losing a large chunk of its revenue to the likes of Amazon and even Snapdeal, and now foul play mode is on.
Earlier this morning the hashtag #motoOnFlipkart was trending on Twitter and some users noticed.
— fazal c (@fzlc) May 18, 2016