Table of Contents
Background
Flipkart Private Limited, an Indian Multinational e-commerce company, is renowned for its innovative business model that has brought a revolution to the Indian e-retail industry. Founded in 2007 by Sachin Bansal and Binny Bansal, former employees at Amazon, Flipkart expanded its offerings from books to include a wide range of products, including electronics, fashion, home essentials, and more. The company gained significant traction in the Indian market by offering a user-friendly interface, competitive pricing, and a robust logistics network for swift delivery. In 2018, Walmart acquired a majority stake in Flipkart, which further bolstered its resources and market presence. This strategic partnership enabled Flipkart to strengthen its supply chain infrastructure and expand its reach across various regions in India. As of FY23, Flipkart was the market leader, with a 48% share in India eCommerce, growing faster than the industry. Amazon.com, an American multinational technology company, is one of the world’s largest and most prominent e-commerce companies that has revolutionized the way people shop online. Founded by Jeff Bezos in 1994, the E-commerce giant entered the Indian market in June 2013. Amazon entered the Indian market with the vision of revolutionizing online shopping and providing Indian consumers with a wide range of products at competitive prices, coupled with fast and reliable delivery. Amazon has made significant investments in India’s e-commerce ecosystem, including infrastructure development, technology innovation, and initiatives to support small and medium-sized businesses. As of FY23, Amazon.com holds a 26% share in India eCommerce, competing with local players like Flipkart and Reliance’s JioMart for market share and consumer loyalty.
Using Google Trends to Compare Popularity
To understand India’s fastest-growing e-commerce market, we have meticulously compiled and analyzed Google Trends data from 2019 to 2023 for two giant e-commerce players – Flipkart and Amazon.com. By investigating these search patterns, we aim to uncover how online preferences towards these platforms have shifted over the past five years, analyze and compare the relative popularity and search volume of Flipkart and Amazon at a national and state level, and understand how online shopping preferences might differ across various regions in India. The insights gained from this study can have several implications for various stakeholders: Understanding customer preferences in different regions and tailoring marketing campaigns accordingly, Identifying states with growing interest in e-commerce, allowing for targeted expansion strategies, Gaining a deeper understanding of the competitive landscape and potential future growth trajectories for the Indian e-commerce market, Discovering potential areas of growth or untapped markets within the Indian e-commerce ecosystem.
Search trend fluctuations in India: Flipkart vs. Amazon
Fig: 1
The giant e-commerce players, Flipkart and Amazon.com, exhibit search volume fluctuations over time. Amazon.com maintains a higher search volume compared to Flipkart till late 2020. However, since 2021, Flipkart’s search volume has surpassed that of Amazon.com, indicating periods of heightened interest for Flipkart. There are periods when search volumes for both platforms increase or decrease together, indicating potential seasonal trends or shared market events. Seasonal variations seemed to have affected search volumes, with peaks occurring around festive seasons such as Diwali and New Year, which happens when consumers are more likely to shop online. The relative search volumes for Flipkart and Amazon.com reflect their competitive strategies and promotional activities. Increases in search volume for one platform could coincide with marketing campaigns, sales events, or product launches. Despite short-term fluctuations, both platforms have exhibited overall growth in search volume over the years, indicating the increasing popularity and adoption of e-commerce in India (fig: 1).
Search trend fluctuations across Indian states and union territories: Flipkart vs. Amazon
Fig: 2
The e-commerce preferences for Flipkart & Amazon.com seem to vary significantly from state to state. Overall, Flipkart has a stronger foothold in certain northern and eastern states, as evidenced by its higher search volume percentages in Jharkhand, Bihar, and Tripura. Amazon.com, on the other hand, has a stronger presence in southern and western regions, including states like Telangana, Tamil Nadu, Maharashtra, and Gujarat, where its search volume is notably higher than Flipkart (fig: 2).
Fig: 3
Several variations can be seen in search volumes for Flipkart across various regions of India. Eastern states like Jharkhand, Bihar and Odisha show relatively high search volumes for Flipkart, indicating a strong presence of the platform in these regions. While southern and northern states also show decent search volumes, they are relatively lower compared to the eastern states. This implies that Flipkart maintains a notable presence in these regions, reflecting its nationwide reach (fig:3).
Fig: 4
There is a clear disparity in search volumes across different states and union territories for Amazon.com. Andaman and Nicobar Islands, Puducherry, and Delhi exhibit the highest relative search volumes, indicating a strong interest in Amazon.com in these regions. States like Bihar, Madhya Pradesh, Arunachal Pradesh, Assam, and Chhattisgarh have relatively lower search volumes, suggesting comparatively lesser interest in Amazon.com in these regions. However, states with lower search volumes present potential growth opportunities for Amazon to expand its market presence by implementing targeted marketing strategies, improving accessibility, and addressing specific regional preferences and needs (fig: 4).
Strategies to boost market presence and seize growth opportunities: Flipkart vs. Amazon
Based on the analysis of search volume fluctuations and regional preferences for Flipkart and Amazon.com, several recommendations can be made to enhance their market presence and capitalize on growth opportunities:
Targeted Marketing Strategies: Both Flipkart and Amazon.com should develop targeted marketing campaigns tailored to the preferences and needs of different regions. By understanding the unique characteristics of each state or union territory, they can create personalized promotional activities to increase brand awareness and attract more customers.
Improve Accessibility: To reach customers in states with lower search volumes, Flipkart and Amazon.com should focus on improving accessibility through initiatives such as expanding delivery networks, setting up fulfilment centres, and offering local language support. This will make it easier for customers to access their platforms and make purchases, ultimately driving up search volumes in these regions.
Address Regional Preferences: Flipkart and Amazon.com need to understand and address specific regional preferences and cultural nuances. This may involve offering region-specific products, partnering with local businesses, or featuring localized content on their platforms to resonate with customers in different states.
Expand Market Presence: Both platforms should consider expanding their market presence by targeting states with relatively lower search volumes. By investing in targeted advertising, partnerships with local influencers, and community engagement initiatives, they can increase brand awareness and customer engagement in these regions.
Analyze Competitive Strategies: Flipkart and Amazon.com should continuously monitor and analyze each other’s competitive strategies and promotional activities. By staying updated on market trends and consumer behaviour, they can adjust their own strategies accordingly to maintain a competitive edge and capitalize on emerging opportunities.
Overall, by implementing these recommendations, Flipkart and Amazon.com can strengthen their market position, drive growth, and better serve the diverse needs of customers across different regions of India.
References
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About Author:
Pankaj Chowdhury is a former Research Assistant at the International Economic Association. He holds a Master’s degree in Demography & Biostatistics from the International Institute for Population Sciences and a Bachelor’s degree in Statistics from Visva-Bharati University. His primary research interests focus on exploring new dimensions of in computational social science and digital demography.
Komal Gupta is a Lead Data & Market Research Analyst at The Palindromic. She holds a Masters degree in Business Analytics from Symbiosis Centre for Distance Learning. Her key areas of expertise include decision-making through in-depth research and analysis.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of 360 Analytika.
Acknowledgement: The author extends his gratitude to the Google Trends for providing data support.
This article is posted by Sahil Shekh, Editor-in-Chief at 360 Analytika.
