While Amazon and Flipkart battle it out for leadership position in India’s $17 billion e-commerce market, a new report suggests that homegrown Flipkart is more “trusted” by customers than global giant Amazon. RedSeer Consulting, a research firm tracking the e-commerce and startup space, claims that Flipkart was ranked 20 on a scale of 1 of 25, while Amazon earned a rating of 18 from 7,500 customers who were surveyed by them. The RedSeer survey rated e-commerce firms on three parameters — most trusted brand, best value, and buying experience.
It is important to note that the survey was aimed at understanding consumer’s perceptions, and is not indicative of either firm’s financial health and performance. The respondents were surveyed across 30 cities between July and September this year. “A clear trend from our study indicates that Flipkart enjoys greater recall with new online shoppers, who are coming primarily from tier 2 towns and lower income groups,” a RedSeer consultant told Quartz. While Flipkart enjoys a healthy lead in non-metros, it is only marginally ahead in metros, the report noted.
Interestingly, the customers polled reckoned that Amazon offered a “better buying experience” compared to Flipkart. But Flipkart scored higher in terms of brand resonance. The other e-commerce firms that constituted the top five were Snapdeal, Paytm, ShopClues, and eBay. It is interesting that despite having a turbulent year during which it nearly went out of business, Snapdeal continues to hold a fairly positive perception in people’s minds.
Amazon, meanwhile, is not happy with RedSeer’s findings. The company has dismissed its Etailing Leadership Index as “poorly informed and speculative”. “As Indian e-commerce industry is a nascent one, there is a complete lack of credible market reports with robust methodology. We have noticed poorly informed speculative reports with irrelevant sample sizes whose numbers do not add up to what we are seeing in the industry,” Amazon India said in a statement. The company has reiterated that it “continues to be the fastest-growing e-commerce marketplace in India.”