Festival sale: Amazon beats Flipkart in exclusive smartphone deals, says report
The ongoing festival offers and discounts have made customers throng e-commerce and m-commerce players like never before. Main players like Amazon, Flipkart and Snapdeal also organised or planning special days like Big Billion Sale, with promised offers and big discounts on several items. However, according to a research report, in exclusive deals on mobile phones, Amazon offered 70% of the most preferred smartphones and thus was far ahead than its nearest competitor Flipkart. 
 
As per Ugam, smartphones is an important category for online retailers, and online exclusive models account for almost 75% of total online smartphones sales in India. "The Indian ecommerce war is more intense than ever. Today, stellar growth is no longer enough; winning market share is key", said Mihir Kittur, co-founder and chief innovation officer at Ugam. The firm provides market research, analytics, and online marketing services for online retailers and comparison shopping engines.
 
The analysis of 31 exclusive smartphones offered by Amazon India and 29 exclusives by Flipkart by Ugam, the managed analytics services provider, demonstrates how retailers can assess their online assortment and pricing to improve their competitiveness during peak shopping seasons.   
 
According to the analysis, Amazon offered majority of the top 20 most-preferred exclusive smartphones. Based on online shopper intent data, Amazon offered 70% (14 out of 20) of the most-preferred exclusive smartphones. This includes smartphones such as the Moto G Plus, Lenovo Zuk Z1 and the OnePlus2.
 
 
What, as per the analysis is interesting is almost half of the top exclusive smartphones on Flipkart were also available on Amazon. This includes Lenovo K3 Note, LeEco Le 2, and the Lenovo Vibe K5, however, Flipkart was priced lower than Amazon was for two out of those three smartphones, Ugam says.
 
The analysis by Ugam shows that (deals on) Amazon were priced the lowest for more than half of the exclusive smartphones available on both websites. It says, "Of the 60 exclusive smartphones we analysed, 17 exact models were available for purchase on both Amazon India and Flipkart. Amazon was priced lowest for 53% (9 out of 17) of these exact smartphones."
 
Even the exclusives offered by Amazon were priced lower than the models with similar specifications available on Flipkart. "Out of 31 Amazon exclusives, Flipkart had 29 smartphones that were similar in specifications. Of these, 28 were available for purchase. We found that Amazon's exclusives were priced lower for 57% (16 out of 28) of the models with similar specs available on Flipkart," Ugam added.
 
 
However, Flipkart's exclusives were priced lower than the models with similar specifications available on Amazon. Ugam says, "Out of 29 Flipkart exclusives, Amazon had 9 smartphones that were similar in specifications. We found that Flipkart's exclusives were priced lower for 67% (6 out 9) of the models with similar specs available on Amazon."
 
 
To identify the trending products, Ugam first selected all the exclusive smartphone models available on Amazon and Flipkart as of 28 September 2016. It then used Ugam's proprietary big data platform to collect and aggregate consumer demand data such as the search volume, social media signals, and online reviews and ratings, which calculates a popularity score for each product called Shopper Intent Score (SIS).
 
Ugam says, the availability of similar products was identified by checking which smartphones on a competitor's site has specifications similar to an exclusive smartphone. These specifications include the screen size, operating system, processor type, storage capacity, RAM and battery capacity. Ugam then tracked prices for matched products across Amazon and Flipkart to find out which retailers are priced the lowest as on 6 October 2016.
 
"Retailers should leverage online shopper intent signals, such as search, reviews, ratings and social media data to inform better selection and pricing decisions and, thereby, drive a competitive edge in this ultra-competitive landscape," Kittur from Ugam added.
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    COMMENTS

    Anil Kumar

    4 years ago

    Insightful & detailed article. Beats the daily tom-toming articles of Eco Times.

    Reliance Industries beats expectations with second quarter results
    Mumbai : Reliance Industries on Thursday reported a consolidated net profit of Rs 7,206 crore for the quarter ended September 30.
     
    Excluding exceptional items -- mainly on account of the net impact of the sale of US shale gas assets -- the net profit was 43.1 per cent higher over the like period of the previous year. But taking such items into consideration, the profit fell 22.9 percent.
     
    Sequentially, the consolidated net profit was up 1.3 percent.
     
    The company's standalone quarterly net profit stood at Rs 7,704 crore, up 17.9 per cent over the corresponding period of the previous year.
     
    "The company achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings," Chairman Mukesh Ambani said in a statement after the release of the latest numbers.
     
    "Refining business sustained high profitability in a tough environment, highlighting our exceptional refining assets, dynamic response to market trends and robust operations," Ambani said.
     
    "Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins."
     
    The main surprise was in the gross refining margin -- the difference between the crude oil price and the value of petroleum products coming out of a refinery -- of $10.1 per barrel, which was below $11.5 per barrel for the previous quarter, but well above market expectations.
     
    "As far as gross refining margin is concerned, our outperformance of the Singapore benchmark has been $2.5 per barrel over the last five years. In this backdrop, the $5 outperformance over the last two quarters is significant," Chief Financial Officer Alok Agarwal said.
     
    On a consolidated basis, Reliance Industries achieved a turnover of Rs 81,651 crore, an increase of 9.6 per cent over the corresponding period of the previous year.
     
    "Increase in revenue is primarily on account of increase in volumes in refining, petrochemical and retail businesses," the company said.
     
    The results were announced after the close of Indian equity markets. The company's shares, though, ended the day at Rs 1,088.50, up Rs 1.60, or 0.15 per cent.
     
    The company also spoke about its latest venture -- Jio 4G services -- in the results statement.
     
    It took exception to incumbent players not providing enough interconnect points for Jio calls to go through, and said its customers, as a result, continued to face severe quality of service issues.
     
    "Call failure rates continue to be severe with over 75 calls failing out of every 100 call attempts on the networks of some of the operators. This is in breach of quality of service regulation that not more than 5 calls out of every 1,000 call attempts can fail."
     
    Nonetheless, Ambani said: "We are delighted and humbled by the enthusiastic adoption of Jio by India. Jio is built to empower every Indian with the power of data."
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    First time In 5 years, PSU profits fell in 2015
    For the first time in five years, the profits of Indias state-owned companies shrank, by about 20 per cent in 2015, with 77 public-sector units (PSUs) reporting losses and contribution to the exchequer dropping Rs 20,000 crore ($3 billion) over the previous year, according to the latest government data available.
     
    The drop in profits -- from Rs 1.28 lakh crore ($22 billion) to Rs 1.03 lakh crore ($17 billion) -- over 2013-14 comes in the backdrop of Prime Minister Narendra Modi's 2016 Independence-day declaration that a "new culture" had helped flag carrie Air India and telephony provider Bharat Sachar Nigam Limited (BSNL) improve their performance.
     
    As many as 235 PSUs -- companies in which the central government or other government companies held at least 51 per cent of shares -- surveyed by the Ministry of Heavy Industries and public enterprises saw profits drop in a year that India's economy grew 7.3 per cent over 4.7 per cent in 2013-14.
     
    "In the past, government companies accounted for a large share of the country's gross domestic product (GDP), today they don't," said P. Rameshan, former director of the Indian Institute of Management-Rohtak.
     
    India had 298 PSUs in 2015-16 -- of which 63 have not yet started operations -- in sectors that include mining (Coal India Ltd, Oil and Natural Gas Corporation), manufacturing (Indian Oil Corporation, Bharat Petroleum), services (BSNL, Air India), electricity (National Thermal Power Corporation) and agriculture (National Seeds Corporation).
     
    Except electricity, PSUs in other sectors reported a fall in profits or a rise in losses during 2014-15 compared with the previous year.
     
    PSU contribution to the exchequer dropped Rs 20,000 crore in 2014-15
     
    The government's companies contributed Rs 20,000 crore less to the public exchequer in 2014-15 than they did the previous year, when they generated Rs 2.2 lakh crore.
     
    Even the top profit-making PSUs -- companies such as ONGC, Coal India Ltd, Indian Oil and NTPC -- saw a 13 per cent dip in profits.
     
    A leading reason for this was the global slowdown and weakening of international oil prices, leading to a 29 per cent fall in export earnings and affecting manufacturing companies.
     
    "The steel industry, one of the biggest in terms of turnover, suffered because of the fall in oil prices," said Anand Kumar, former director of Indian Oil Corporation, India's largest company by revenue in 2014. Nearly 10 per cent of steel industry's demand comes from the petroleum industry, which is facing a slump due to fall in crude oil prices.
     
    As the world gradually recovered in 2014-15, demand for major commodities from India, such as coal and metal, also fell.
     
    Ten at the bottom account for 85 per cent of losses
     
    In 2014-15, 10 loss-making PSUs accounted for 85 per cent of all PSU losses: Rs 27,000 crore, or Rs 4,000 crore more than the previous year. BSNL, Air India and Mahanagar Telephone Nigam Ltd were the biggest losers.
     
    These companies could not cope with competition, said Rameshan. "BSNL is but a mere fringe player in the telecom industry today," he said. "Air India, which lost its status as the market leader long ago, is no different."
     
    Modi said that Air India had made an operating profit of Rs 100 crore in the financial year 2015-16, but as FactChecker.in reported in August 2016, that is 0.0023 times the airline's accumulated losses, now more than Rs 44,000 crore ($7.3 billion) -- equal to India's annual health budget -- and borrowing has grown to more than Rs 38,000 crore ($6.3 billion), IndiaSpend reported in September 2015.
     
    PSUs had also fallen behind on technology, said Hareendran Bhaskaran, dean of Bhavan's Royal Institute of Management, Kochi.
     
    The PSU workforce dropped by 50,000, but employees were paid more
     
    The PSU workforce was trimmed by nearly 50,000 over the last one year, but the per capita expense on employees rose 10 per cent over the same period.
     
    After economic reforms in 1991, private-sector competition, it was hoped, would goad PSUs to reform and improve. But most old problems continue.
     
    "There is a lot of backseat driving by the government," said Alok Perti, former secretary, Ministry of Coal. "Public sector companies that have government directors are likely to see them dictating what course of action should be taken. In many cases, the ministry dictates."
     
    In 2011, the S.K. Roongta Committee, to suggest PSU reforms, said: "Over-governance promotes conservative, cautious and risk-averse organisational culture, with procedures being paramount and outcomes secondary."
     
    The committee recommended a fixed tenure of three years for PSU heads and suggested that 50 more companies be listed on the stock exchanges over the next five years. Not a single company was listed since the recommendation was made.
     
    "That (Roongta report) must be now gathering dust in the corridors of bureaucracy," said Kumar. "Nobody wants to antagonise the master, the politician."
     
    The divestment plan is revived, but 2015-16 target falls short by 66 per cent
     
    Earlier this year, Finance Minister Arun Jaitley said the government should "leverage the assets" -- meaning, sell stakes, land and manufacturing units -- of PSUs to raise money for infrastructure.
     
    However, a little more than a third of the Rs 69,500-crore target for 2015-16 -- to be achieved by selling stakes or closing loss-making PSUs -- was achieved.
     
    Perti said the government's plan to sell stakes would make little difference to the companies. "These will remain government companies, and these companies have the drawback of being run as government departments, rather than companies," he said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Madhur Kotharay

    4 years ago

    This breach is of debit cards. But, worldwide, if there is a credit card breach, with your card used for a fraudulent payment, and you deny that you used the card, the billing company has to prove that you used the card; in India, you have to prove that you DID NOT use the card. So when I used an overseas card (when I lived overseas), I was least bothered. In India, I don't dare to use my card anywhere, except 2-3 reputed companies. And almost never do I hand my card over.

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