In the rapidly evolving landscape of Indian e-commerce, technology is not just a tool but the cornerstone of success. Flipkart, India’s leading e-commerce platform, stands at the forefront of the evolving e-commerce business in India. In a recent interaction with Business Today, Jeyandran Venugopal, Chief Product and Technology Officer at Flipkart shared insights into the company’s approach towards technology, its role in shaping the future of e-commerce, and its commitment to next-gen innovation.
PD: Can you talk about Flipkart’s technology infrastructure at large? How do you see it evolving?
JV: Flipkart’s robust ecosystem is supported by the latest technology and innovation. As the Indian e-commerce landscape continues its rapid evolution, we understand that agility and responsiveness are key to success. That’s why we’re constantly innovating and evolving our technology infrastructure, integrating new solutions that enhance our capabilities and deliver exceptional customer experiences.
From interactive interfaces to leveraging cutting-edge innovations like GenAI-powered virtual assistants like Flippi, dedicated virtual worlds for brands and our own Flipverse, powered by 3D and AR visualisation technologies, we’re committed to harnessing the power of technology to create a seamless and immersive shopping experience for every customer. These immersive experiences, coupled with AI-powered product recommendations and data-driven insights, help us cater to the unique needs and preferences of our diverse user base across India.
Our focus extends beyond the immediate customer experience. We know that a thriving ecosystem requires empowering our sellers as well. We have implemented various tech interventions, like simplifying the seller onboarding process and providing data-science-driven insights, to help them understand customer behaviour and optimise their offerings, ultimately benefiting the entire ecosystem.
In a country as diverse as India, we believe that creatively using technology can truly unlock the potential of e-commerce, expand its reach to customers and sellers located in the remotest corners of the country.
PD: How do you see the e-commerce landscape evolving in the coming years? What are the emerging business models and what role will technology play in its growth?
JV: The e-commerce industry is evolving in exciting ways. The recent report by Bain highlights a slight slowdown in retail market growth due to inflationary pressures, but online adoption continues to rise steadily. At Flipkart, we see this as an opportunity for innovation and adaptation. Technology will undoubtedly be a driving force behind the growth of e-commerce. We’re witnessing the emergence of advanced technologies such as Web3, Gen AI, NFTs, and immersive metaverse constructs, all of which are poised to revolutionise the way people shop online.
In terms of business models, we’re seeing a diverse range of approaches aimed at catering to evolving consumer needs. Q-commerce platforms, for instance, have experienced remarkable growth, with India’s e-grocery spending doubling over the past year. While scaling beyond top metro cities remains a challenge, the potential for expansion into Tier 2 and beyond is promising.
Hyper-value platforms, on the other hand, are resonating particularly well with shoppers from Tier 2+ cities and low-income households. Flipkart’s own success story, Shopsy, exemplifies this model by offering an unbranded assortment at ultra-low price points, attracting new e-commerce customers with an average selling price of just over Rs.200.
Inspiration-led commerce, or live commerce, has emerged as a significant trend, especially in markets like Southeast Asia. Flipkart has embraced this trend with features like Live commerce, which enables interactive shopping experiences through live streams hosted by influencers and celebrities. Our recent launch of Vibes further integrates the shopping experience with video content, providing users with a unique and engaging way to explore products.
Overall, the future of e-commerce in India is incredibly promising, with technology driving innovation and new business models emerging to meet the diverse needs of a diverse customer base across the country.
PD: How does Flipkart utilise AI, machine learning, and data analytics to create personalised customer experiences, and what benefits does this approach offer to shoppers?
JV: As one of India’s largest e-commerce marketplaces, AI and data analytics aren’t just buzzwords at Flipkart, they’re the foundation of our commitment to customer satisfaction. They allow us to treat each customer as an individual, understand their unique needs, and ultimately, create a more engaging and rewarding shopping journey.
We’ve built regional language interfaces, voice search, and image recognition tools to bridge the gap for new online users and non-English speakers. Our AI-powered search and recommendation engine, fueled by collaborative filtering and content-based algorithms, suggests products they’ll truly love based on their preferences and behaviour. But personalization goes beyond just products. We utilise AI-powered solutions like ‘Address and Location intelligence’ to ensure accurate deliveries even in remote areas with non-standard addresses. With Flippi, our GenAI-powered chatbot, we enable intuitive, conversational product discovery, bridging the gap between traditional and online shopping.
PD: What examples can you provide of Flipkart’s commitment to next-gen innovation and its use of made-in-India technologies to improve logistics and operations?
JV: Innovation is at the core of everything we do. We have been building in-house IoT-based automation capabilities to develop cutting-edge technologies to enhance operational efficiency and minimise fraud. Our strategic investments in automation systems such as cross belt sorters, automated storage and retrieval systems, and robotic movement systems enable us to keep the key processes in logistics and operations ready to seamlessly manage the surge in demand during festive seasons.
To improve supply chain operations, we have partnered with emerging Indian startups and co-developed solutions. For instance, we developed the Autonomous Mobile Robot (AMR) for automating the manpower-intensive merge operation for multi-item orders with zero error.
PD: You also have Flipkart Labs. Tell us about it.
JV: Flipkart Labs is Flipkart’s innovation team that pioneers and champions emerging technologies in an agile fashion, by seeding potentially impactful trends, iterating early solutions, and making them market-ready for Flipkart users. Labs work on new & emerging technologies like Augmented Reality (AR), 3D, Web3 / Blockchain, and Generative AI to enhance the overall shopping experience for all involved stakeholders – customers, sellers & the platform.
PD: What are your thoughts on Web3 and Metaverse reshaping the retail landscape, and how is Flipkart adapting to these changes?
JV: The emergence of Web3 and the Metaverse presents a paradigm shift in the retail landscape, offering new avenues for immersive experiences and virtual commerce. At Flipkart, we recognise the transformative potential of these technologies and are actively adapting to embrace these changes.
Customers today expect detailed visualisation of products, whether it’s virtually trying on clothing or visualising furniture in their homes, our immersive technologies enhance engagement, improve conversions and reduce returns.
Following the launch of 3D and AR features in 2021, and the introduction of Beauty/Makeup Try-ons, Flipkart took one step ahead towards immersive shopping in 2022, by launching the largest e-commerce metaverse activation globally with Flipverse during the Festive period in October 2022. Recently, in 2023, during the Big Billion Days event, Flipverse saw a 10X increase in visits compared to the pre-festive period.
We took this further in 2023, with our Virtual Worlds offering. The first format consists of dedicated, customised Virtual Worlds created by brands. The second format includes co-tenancy of brands within Flipkart’s own Virtual World, known as Flipverse, with engaging features such as allowing users to chat with other users & win rewards in the Metaverse.
Moving onto Web-3, our strategic partnership with Polygon and the establishment of a Blockchain Centre of Excellence powered by Flipkart Labs, focuses on overcoming technological challenges and developing immersive experiences that enhance lives and foster connections. Our Flagship Web-3 product, FireDrops, aims to foster deeper & more personalised brand-user interactions. It offers NFT-based rewards, enhancing customer engagement and loyalty with secure, transparent and personalised experiences.
PD: I saw that Flipkart has recently launched Skin Analyser. What are the insights behind it and what makes it unique?
JV: The launch of the Skin Analyser powered by Modiface is another innovation by Flipkart to provide personalised and innovative solutions for our customers. With an increasing demand for personalized and data-driven shopping experiences, shoppers are looking for tailored skincare recommendations based on their skin types and concerns, instilling confidence in their product choices. Skin Analyser offers a comprehensive analysis of shoppers’ skin health, aiming to enhance the overall skincare shopping experience. The success of this initiative is evident, with a substantial 21% increase in product purchases featuring the Skin Analyser, showcasing its widespread adoption.
PD: What are Flipkart’s focus areas for 2024 in terms of technological innovation, and how does Flipkart attract and hire talent to support these initiatives for seamless implementation?
JV: We will continue strengthening our customer experience through loyalty programs, innovative shopping experiences, and improving our supply chain to enhance the delivery experience.
As a people-first organisation, Flipkart follows a comprehensive approach to hiring talent, blending traditional recruitment methods with innovative outreach initiatives. Our efforts are aimed at nurturing a community of tech talent, and preparing the next generation of tech leaders in the country. Our programmes such as Girls Wanna Code, Flipkart Runway, GRiD, and Wired, to name a few are aimed at attracting top talent across the country at a grassroots level, providing an equal and inclusive platform for talented and skilled youth to participate.
Over the years, we’ve built a collaborative culture of innovation. We believe that collaboration is key, and often, our products are a result of multiple teams and talents working together to provide the best experience for customers and the seller ecosystem. Our flexible and adaptive career policies have enabled employees to identify their interest areas and pursue diverse roles within the Flipkart ecosystem. Our AI-enabled jobs marketplace Thrive, for instance, assists our employees in exploring diverse verticals and roles within the organisation, supporting them through the transition journey.
