Source : Times of India
Flipkart has started reviving its books business after a few years of the category losing focus within the company. The e-tailer said over the past six months the books category grew by about 70% on the back of its efforts to strengthen it. Flipkart started operations in 2007 as an online book seller just like its arch rival Amazon.
Over the past few months, the Bengaluru-based online retailer has gone back to the drawing board to build a new strategy to regain share, which it lost largely to Amazon. The books category draws in a lot of urban shoppers and fits in with Flipkart’s move to win back this set of customers who have been lured by Amazon in the recent past.
The local arm of the Seattle-based Amazon has about a 60% share of the online book market, as per industry insiders. Due to the pressures to meet steep gross sale targets in its fight against Amazon, the books category lost its priority in the company as an important business. Books are typically of low average selling price and margins are very thin. Instead, Flipkart has been putting its weight behind driving sales of smartphones, large appliances, and fashion.