Recently Flipkart.com the market leader of online stores as said by the media has required competitor Letsbuy.com in cash and equity deal. I am not writing this article to give you this news but more importantly what might be the consequences. Letsbuy.com was quite dear to me and some of my friends. I have brought couple of times from the online portal. They used to offer very good price, fast delivery and variety of choice. The last thing I bought on Letsbuy.com was a Logitech speaker for Rs 749 whose market price was above Rs 1200. Since then I noticed that price for that product increased twice by denomination of Rs 100 and that speaker now cost over Rs 900. In fact Letsbuy.com increased its price across all its products. The discount coupons they used to provide is now almost over. The sudden continues price rise was little surprising but with the news that Flipkart has bought Letsbuy.com, the question is answered now. On the contrary Flipkart.com’s price was almost always higher than Letsbuy.com. Just check for Philips QT4019 Trimmer on both the sites and you will find it cost Rs 1129 on both the sites. I paid Rs 160 less for the same trimmer on Letsbuy.com few months back.
What it did is, reduced competition and using the synergy of each others resources they can control the price to a great extent. As a consumer, we always need greater competition in the market to get a good price on products. The media is saying the market is consolidating but it will also reduce competition. But we will have to live with it! However, we still have Ebay which still allows awesome competition and price and hopefully it will be so in near future.