Flipkart's subscription model is a good offering: Here's how it works

However, offer does not suit users who switch plans often or do not handle their phones well

Indians are warming up to the subscription culture, as in the West. They are subscribing to furniture, air conditioners, and even cars. To cash in on this trend, e-commerce website Flipkart has launched a SmartPack subscription offer with mobile phones. Under this, you can buy a smartphone and return it in 12 or 18 months.

How it works

Buy Flipkart’s SmartPack subscription, which is available on its app or website. Three plans with refund options of 60, 80, and 100 per cent on the phone’s price (see table) are available. You will have to pay the full price of the device and subscription amount of the SmartPack at the time of purchase. Thereafter, you will have to pay the subscription fee every month.

Multiple benefits attached

The subscription plans come with a number of benefits. Apart from money-back, you get access to OTT apps, freebies and other benefits, such as SonyLIV Premium, Zomato Pro, Gaana+ and Practo Plus, among others. The value of freebies can go up to Rs 20,000. Aditya Soni, senior director, mobiles, Flipkart, says: “We have bundled new smartphones with some of the most popular premium services, making them available at affordable prices.”

Few limitations and risks  

The offer is valid only on smartphones priced between Rs 6,000 and Rs 17,000. Buyers will need to pay the entire price upfront. Faisal Kawoosa, research analyst, Techarc Research, says: “This is not a disruptive offer. It’s like any other finance scheme. You have to pay an upfront cost. Even if you put it on your card, you have the full amount blocked notionally and have to pay EMIs. What people are really looking for at this time is an offer in which they don’t have to make an upfront payment.”  

Customers will also tie themselves up for a period of time. Kawoosa adds: “Many offers and services give cash ba­ck immediately. Why not go for them, where no commitment is required?”

A key risk is that you may not get the refund as the phone’s condition, at the time of return, may not meet the seller’s requirements. 

To get a refund, the phone must be in working condition. It should turn on and the international mobile equipment identity (IMEI) number should be visible on its screen. Shilpi Jain, research analyst, Counterpoint, says: “You don’t know what the phone’s condition will be in 12-18 months. There is no guarantee you will be able to meet the conditions.” Customers will also lose out on the money-back offer if they fail to pay the monthly subscription.  

The customer has no option at the time of selling. Kawoosa says: “When you decide to sell a phone purchased in the open market, you can sell it online, to a friend, or at an exchange, depending on where you get the best resale value.” Those options are not available here.  

Bottom line  

This offer comes with many mouth-watering benefits. Go for it if the handset you get has the specifications you require, and subscription plan meets your call and data requirements. If you go for it, pay your bills on time and take good care of the phone. Finally, if you go for the offer, remember to take the refund at the end of the applicable period.

Kawoosa adds: “A few years ago, Jio had offered phones for free, wherein people had to collect the refund after three years, but very few remembered to do so.”