How innovative businesses can get can be gauged from this latest news that Flipkart, online retail giant and one of the most preferred destinations for mobile phone buyers has introduced a phone repair service for devices bought on its platform.
The game-changer is not just offering to repair the phones, Flipkart will pick up the phone from the buyerâ€™s location and return within a maximum of 10 days with guaranteed repairs. Now, this will please any customer, since in the present arrangement the best of brands under warranty would expect you to search their authorized service centre and drop off the phone and collect it after repairs. Flipkart has a winning formula here.
The online retailer, on the verge of becoming a Walmart-owned enterprise, is already enjoying an enviable presence in the Indian online market for mobile phones. The figures being floated are, 70% of the online market for mobiles and 25% of all phones sold, offline and online put together. The company aims to take this figure to 40% in the next couple of years.
Now, coming back to the offer of repair guarantee from Flipkart. The scheme would work like this; the customer pays a token Rs 49 a year to cover all kinds of damages to the phone being taken care of. The only exceptions under this cover will be theft.
Flipkart already has in its wings, F1 Info Solutions, a phone repair services unit and has made investments in Jeeves, another company engaged in phone repairs. The scheme has been started and for the present only Asus phones have been included. Going forward, practically every brand sold on Flipkart will be accompanied by this repair guarantee offer.
Observers believe this one facility alone can push the sales of mobile phones online by up to 30%. Amazon may also have to think up something similar if it doesnâ€™t want Flipkart to run away with the category on its platform.