<p><em>The 360 degree view on the consumers, is a billion dollar valuation game of etailers if they play the cards right, says<strong> Vishal Krishna</strong></em><br><br><br>For a well-funded internet company it becomes a necessity to complete the consumers shopping loop.The company does this by partnering with services that are acquisition targets or are simply valuable to their core services. This includes linking daily shopping needs, such as grocery, with ancillary needs like booking air and rail tickets, hotels and cabs. Why do large etailers or consumer internet companies do this? It is for customer acquisition, it is to understand consumer behaviour and finally to make them “lazy”. Yes, if a person can sit at home and transact on a couch, for his or her needs, then the etailer has done its job. This 360 degree view, on the consumers, is the billion dollar valuation game if they play the cards right. Currently everyone is in acquisition mode so a large chunk of money is being spilt on inducing a purchase with discounts.But clever partnerships ease the load on etail companies.<br> </p><table style="width: 200px;" border="1" cellpadding="1" cellspacing="1" align="right"><tbody><tr><td><img alt="" src="http://bw-image.s3.amazonaws.com/Vishal-200.jpg" style="width: 200px; height: 200px; float: right; margin: 1px;"></td></tr><tr><td><strong>Vishal Krishna</strong></td></tr></tbody></table><p>How so? They will cross sell services and bring in a revenue share on each transaction closed. It is a lead generation plus transaction based service model. If Flipkart ties up with MakeMyTrip, for example, the transaction made on a suitcase may offer a discount on a purchase of a ticket or vice versa. This example allows these companies to transact with each other and acquire new customers at the same time. This, as the retail industry calls it, enriches the experience of the customer.<br><br>The question is whether this works. Retailing follows culture and like culture it is never static. If a particular experiment works then the cross selling services will be blown in to everyone’s TV screens. The tie up with IRCTC and Amazon is of strategic importance in a brand’s perspective. By tying up with the Railways Amazon is telling the people in this country that is a platform for the masses. The added strategy is the business value that it is trying to achieve, which is to induce the masses to shop on Amazon. We will see several such experiences, offered by internet companies, and tie-ups over the next five years. In the end it is just a means to complete the circle of shopping. Nothing more! <br> </p>
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