Can Flipkart attract premium users to Voot, Tinder, Zomato, and Practo with a 100% money-back offer?


“Why get hold of your new smartphone?  Get 100% Refund…” Read Flipkart’s latest offer ‘Smart Pack’.  The offer allows users to buy (subscribe) new smartphones by paying within the subscription bundle of premium content and repair providers for 12 or 18 months. 

Users must pay the complete price after they buy the phone.  At the tip of the subscription period, they will return the phone and claim the initial price of the device from Flipkart. 

The bundle includes subscriptions to premium OTT platforms like Sonilive, C5, Gana, and Vote Select, furthermore as services like Zomato Pro, Cult Fit Live, and Practo Plus.  The service (refund) is canceled if the user leaves within the middle of the amount. 

Offers from e-commerce players are available at RealMe, Poco, Samsung, Redmi, Motorola, Infinix, OPPO, Vivo, and smartphone OEMs priced from Rs 6,000 to Rs 17,000. Rates and available services vary looking on the selection of plans (gold, bronze, silver) and also the price of the phone. the number of ‘money-back’ will rely on the number and duration selected. 

Bundle explains the increasing demand for smartphone-based services across segments as consumption of OTT content increases because of COVID.  The mid-premium smartphone price segment at a moderate price is additionally one with the foremost traction. 

But who benefits, and how? 

As a platform, Flipkart gets in its way of monetizing its revenue.  Additionally, with the potential to extend smartphone sales, Flipkart is becoming many other popular brands. 

Flipkart partners can enjoy access to the e-commerce platform.  Flipkart is one of every of the foremost popular e-commerce startups across the globe over the years. it’s not only a brand but also a powerful representative of the e-commerce segment. 

Go to Flipkart’s large base of 300 million customers with new platforms, especially the tiny pay user base for his or her paid / premium offers/services. In a country where content is increasingly used on smaller screens, a platform that plays a major role in smartphone sales seems to be the most effective place. 

Also, the move could lead to the infiltration of recurring payments and subscriptions.  As Flipkart points out, ‘smart pack’ services are offered at the identical or cheaper price because the monthly packs (in addition to discounts) are offered by service providers on their platforms. 

This model is also India’s second journey to contract-based smartphones, albeit through a content/service route.  Traditionally, under the contract model, telecom service providers sell phones with connections. 

the worth of the phone breaks down and clubs up with monthly tariffs during the contract period.  This model won’t gain momentum in India thanks to several reasons like low telecom ARPU (average revenue per user) and preference for prepaid. 

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