Even as Flipkart and Amazon indulge in a war of words over who clocked higher sales during the recently concluded festive sales, an online survey of 1,000 consumers by Bank of America Merrill Lynch shows a clear preference for Amazon, reports fe Bureau in New Delhi. The survey found that 52% prefer Amazon, followed by 34% who prefer Flipkart and 8% Snapdeal. Only 4% said they look for the website offering the product at the cheapest price. This means that contrary to the general perception, the Indian online shopper is starting to develop brand loyalties, and values quality of service rather than simply going for the cheapest offer.
The study says that Amazon’s preference share is higher than its current market share. According to the BofA-ML forecast, Flipkart is likely to maintain its estimated market share of 43% in calendar year 2016 to around 44% in calendar year 2019. However, Amazon is expected to slowly gain ground — from 28% in CY16, it is expected to go up to 37% in CY19. Currently, Flipkart and Amazon are neck and neck, excluding the fashion category — Flipkart is the clear leader in fashion, with its acquisition of Myntra and Jabong.
According to the survey, Flipkart could maintain its market share if the company continues to secure regular funding in future. If Walmart’s investment of around $1billion along with a minority stake in Flipkart materialises, the report says, it would help Flipkart access Walmart’s worldwide logistics network and increase its probability and maintaining the lead.