Not surprisingly, content comes first. Interestingly however, those who had the least to spend were also the most keen to improve their own knowledge levels.
Amazon’s user base may be more prime than that of FlipKart but not by much. The interesting thing is that the propensity to spend need not be high to start transacting online. Personally, I expect this price point to fall further. The trust deficit that COD bridged is no longer the deal breaker it used to be. For a multitude of reasons (not excluding PM Modi), we expect COD usage to fall as well.
Ola as we said earlier has more to offer to the emerging Indian than Uber, but for both companies — the battle field is still on our phones. Don’t expect this to change anytime soon. As companies move down the value and try to cater to these users, they will face interesting challenges.
Content Apps can create a separate property to cater to this segment, as long as they are flexible, agile and able to push out engaging content — they will survive and grow. ECommerce players can lower price points and increase the cities they deliver to but how will travel companies serve this user set? Should they build new offerings like pilgrimage packages? Will the unit economics makes sense?
Or more likely should they just do nothing and wait for the market to come to them? Eventually even this user will need to travel for the same reasons we travel — for work, weddings & to come back home. When they do, my guess is that they will book online.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
