Flipkart CEO: 1 billion dollars to build logistics

Absrtact: Flipkart founder and CEO Sachin Bansal (left) accepted Tencent technology to interview India's electricity market is entering a rapid development phase. In July this year, India's biggest electric-business website Flipkart announced a round of $1 billion trillion in financing, with a total valuation of $7 billion trillion, into a global estimate

Flipkart founder and CEO Sachin Bansal (left) accepted Tencent Technology interview

India's electricity market is entering a phase of rapid development. In July this year, Flipkart, India's biggest electricity company, announced a round of $1 billion trillion in financing, with a total valuation of $7 billion trillion, one of the world's most overvalued unlisted internet companies.

Interestingly, at the beginning of the establishment, Flipkart and Amazon were just selling book sites, and Flipkart two founder Sachin Bansal and Binny Bansal worked in the Amazon before starting a business.

Now the two-person website Flipkart has more than 9,000 employees in India, more than 22 million users, an adult sales breakthrough of 1 billion U.S. dollars in the Big Mac, in India enough to shake the Amazon, forcing Amazon urgently to invest in India $2 billion.

Flipkart has forged a bond with China, not only as a teacher, but also as a CEO who has visited China many times and visited Chinese technology companies. Millet sales in India rely on Flipkart, its early lack of experience caused by the site crash.

Flipkart has been basically established in India's largest electric company status. Tencent Technology recently visited India's "Silicon Valley" Bangalore, and interviewed Flipkart founder and CEO Sachin Bansal to help us understand the Indian "Alibaba".

Sachin to Tencent Science and technology, Flipkart to a certain extent, is to study in Beijing East, this year after the acquisition of 1 billion dollars will be used in the technical aspects, especially the supply of goods and technology, will be in many cities in India to establish warehousing logistics.

Learn from the experience of Chinese electric business enterprise

As the same populous country, there are too many similarities between China and India: A large population, underdeveloped transport, a lagging modern retail system, a lack of reliable logistics systems and a very low rate of credit card usage.

This makes many of India's electric business peers willing to China's electric business enterprises in front of the teacher, Flipkart is no exception, in the growth and expansion process, Flipkart borrowed from a lot of experience from China, Sachin also often to China and China Electric Company exchanges.

Learning the experience of Chinese electric companies, Flipkart to set up their own logistics system, in the big cities will be delivery time within 24 hours, in the two or three-line city can also ensure that 2-3 days to deliver the goods to the hands of consumers.

As the Government of India to foreign investment (Flipkart in the establishment of companies and after the investment has become a foreign-owned companies) restrictions and the integrity of its own logistics system, Flipkart will be stripped of the logistics system of the company, the establishment of a separate Ekart logistics company. This February, Ekart company began to undertake other electric Company's logistics and express business. This is similar to the van and the wind-up relationship.

However, compared with the domestic Alipay purse and the development of micro-letter payment, Flipkart's payment business Payzippy development is not very smooth, because Indian users are accustomed to cash on delivery, credit cards and online payment is not high.

Flipkart also has many lessons in the course of development. Flipkart's digital music service, launched in 2012, was closed for more than a year flyte. Sachin said at an event that people go to digital music pages 6 times times as much as traditional CDs, but digital music earns only one-third of traditional CDs. "Users are telling us what they like."

Flipkart also briefly closed the sale of large electrical appliances, which is China's current Beijing-east and Cat fire one of the key areas. This year Flipkart again. The brief closure of large electrical sales within Flipkart is considered a lesson.

Flipkart Chief Manpower Officer Mekin Maheswari to Tencent Technology, Flipkart is customer-centric enterprises, if the customer experience is not good, will suspend the process and improve; Flipkart is not afraid of mistakes, but hope to grow up in the wrong.

With the 1 billion dollar financing in place, Flipkart is ushering in new opportunities for development. Sachin to Tencent Technology said, 2005 to 2010 Alibaba development very fast, the Indian electric business should be in Alibaba 05 to 06 stage, the future will develop very quickly. Flipkart will also grow at more than 100% a year in the market and will follow this development trajectory.

At the Indian Mobile Internet Conference this year, Sachin said that if he went to the United States, he would call on Indians in the United States to return home. For India's next generation of mobile internet is in the hands of Indians. At this time, the field sounded warm applause.

Sachin to Tencent Technology, the Indian-American return to India is already happening, at the top of the Flipkart team of 100 people have come back, the future of this trend will become increasingly apparent, if the phenomenon has occurred in China.

The biggest obstacle to the development of India's electricity industry is the backwardness of India's infrastructure, the narrow and unusually congested roads in many big cities, which is also an important reason why Flipkart is willing to learn to invest heavily in logistics and set up warehouses.

Sachin admits that there is a long way to go to improve India's infrastructure environment, and that the environment is improving a little bit. With the construction of each warehouse in Flipkart, Indian consumers can get the goods in a shorter time.

The indissoluble bond with millet

To some extent, the Flipkart model is more similar to Jingdong. This July, millet officially dabbled in India's mobile phone market, it did not choose its own site, but the choice of partners, Millet's first Indian electric business partner is Flipkart.

Millet's first mobile phone in India is 3 meters, priced at 13999 rupees (about 1445 yuan). However, the first cooperation between Flipkart and Millet had a little "minor problems"--flipkart site paralysis, causing users to abuse on Facebook.

Of course, "episode" does not affect Flipkart and millet cooperation. Sachin to Tencent Technology, millet in India is a phenomenon, many people know millet, millet mobile phones do not need market expansion.

Talking about why the two sides will achieve this cooperation, Sachin revealed that he had visited the millet company in Beijing six months ago, and with Millet Chairman and CEO Lei (Micro Bo) to meet, Lei talked about the millet vision to impress their own.

"Indian consumers need to have good smartphone products, while Flipkart in the electric business, logistics, warehousing in India are more professional, millet to open up the Indian market also needs a good partner." Sachin said that each other became partners.

It should be said that Flipkart impress Millet is not just so, earlier, Flipkart has worked with Motorola. Motorola launches Moto G smartphones in the Indian market and all official Moto G can only be provided through Flipkart.

In February this year, Indian users ordered the phone on the flipkart.com platform. 16GB version Moto G price of 13999 rupees (equivalent to 224 U.S. dollars), 8GB version of the price is 12499 rupees (equivalent to 199 U.S. dollars), the two version in less than one hours all sold out, this effect enhances the millet and flipkart cooperation confidence.

China's smartphone market is nearing saturation, while India's smartphone market is just beginning to grow. Millet is looking at the Indian market as a potentially bigger market than China. Millet President Lin has said that the Indian mobile phone market for millet is a huge opportunity.

Current global vice President Hugo Barra has been squatting in India for 2 months, Millet is also recruiting local leaders in India, Millet GM & head of India Operations Manu Kumar Jain, a strategic stake in Flipkart is also a good choice.

In response to whether the millet strategy to invest in Flipkart, Sachin reply very vague, said the 1 billion dollar financing case has closed the channel. "If Millet invests Flipkart, I don't know what will happen." We are not talking about this problem. ”