Flipkart priya
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Flipkart is an Indian electronic commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007 and now it is among India’s largest online retailers ...

Flipkart is an Indian electronic commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007 and now it is among India’s largest online retailers with reported sales of Rs 75 crore for year 2011-11. Sachin Bansal and Binny Bansal both are alumni of Indian Institute of Technology Delhi who started this company after quieting their jobs in Amazon.com with a vision “To be one of the largest multi-category e-commerce destinations in India, with a strong focus on customer service”

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Flipkart priya Flipkart priya Document Transcript

  • E-Commerce Assignment on: www.flipkart.comReference:[1] http://logisticsweek.com/news/2011/03/not-only-words/[2] http://www.flipkart.com/about-us[3] http://www.livemint.com/2011/06/16233030/Flipkart-raises-20-mn-from-Ti.htmlSubmitted By: Submitted To:Priya Soni Dr. Vishal KhasgiwalaPGDM 3rd trimester13/07/2012
  • Introduction:Flipkart is an Indian electronic commerce company headquarteredin Bangalore, Karnataka. It was founded by Sachin Bansal and BinnyBansal in 2007 and now it is among India’s largest online retailers withreported sales of Rs 75 crore for year 2011-11. Sachin Bansal and BinnyBansal both are alumni of Indian Institute of Technology Delhi whostarted this company after quieting their jobs in Amazon.com with avision “To be one of the largest multi-category e-commerce destinations inIndia, with a strong focus on customer service” In its initial years, Flipkart focused on online sales of books but itlater expanded to electronic goods and a variety of other products. According to the co-founder Sachin Bansal, “We started with booksbecause they are comparatively easy category products to sell online.They do not require huge inventory maintenance, are easier to negotiatesupplier terms and profit margins are high.” Also since books are lowvalue items, inducing customer trial was easy. It was a safe option tostart off with books, given their appreciation in e-commerce the worldover. Now Flipkart have about 11.5 million book titles, 11 differentcategories, more than 2 million registered users and sale of 30000 items aday which makes it Indias answer to Amazon. All this was possiblebecause of the major goal of the company is to provide a memorableonline shopping experience to their customers so that they come backagain and again using innovative services like Cash on Delivery, a 30-dayreplacement policy, EMI options, free shipping , discounted price and veryimportantly on time delivery of the products.Funding of Flipkart:Initially funded by the Bansals themselves with 400,000, Flipkart hassince then raised funding from venture capital funds Accel India in 2009and Tiger Global (US$10 million in 2010 and US$20 million in June2011)
  • Locations of Headquarter and warehouses:The companys headquarters is located in Bangalores Koramangalaneighbourhood. Flipkart has offices, warehouses and customer servicecentres across India. Warehouses are located in the following cities, oftennear airports. Bangalore, Karnataka Chennai, Tamil Nadu Delhi Kolkata, West Bengal Mumbai, Maharashtra Noida, Uttar Pradesh Pune, Maharashtra Kochi, KeralaProductsFlipkart started with selling books. In 2010, they added to their cataloguemedia (including music, movies and games) and mobile phones andaccessories.In 2011, product launches included cameras, computers, pens & officesupplies, computer accessories, home and kitchen appliances, personalcare, health care, gaming consoles, audio players and televisions. In2012, product launches includes health & beauty products, Life styleproducts which includes watches, belts, bags & luggage.In November 2011, Flipkart launched a new Electronic Wallet feature thatallows shoppers to purchase credit to their Flipkart account using creditor debit cards, and can subsequently be utilised to make purchases onthe site, as and when required. Flipkart is currently the only authorisedonline reseller of iPods in India.The role of logistics in the successful functioning of an e-commerceventure is indispensable. All these innovative services will be ineffective ifthe products do not reach the customers on time. Here are some BestPractices of the Supply Chain of Flipkart: Building the Suppliers base- The Company has established a network of more than 500 distributors and only stocks frequently ordered items.
  • Building Infrastructure for Operations- The Company has 4 offices with more than 500 employees. Warehouses of the company are located in 7 cities. Company has tie-ups with more than 15 courier companies like Blue Dart, First Flight etc. to deliver their products and Indian post for areas where courier do not reach. The Process of Supply Chain- o Buying the products like books etc. online. o Selecting mode of payment & making payments. o Enter the phone number and address where the items need to be delivered. o Purchased items are packed and shipped. o For delivering the items depending upon the area where the item need to be delivered either courier, Indian post or own internal logistics arm is used. o The delivery time varies between less than 24 hours and 3 weeks depending on the location and availability of the product. o The inter-city, trans-zone deliveries are made using air cargo. For others in close proximity, products are transported overnight by train or truck. o For the local parts of the cities where the warehouses of the company exist products are delivered using two-wheelers, bicycles.All the Team Members have been trained to work efficiently to meetcustomer expectations.Flipkart’s promotional Strategy: Flipkart has been mostly marketed by word of mouth advertising. Customer satisfaction has been their best marketing medium. Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online world. Flipkart.com official Facebook page has close to 9 lakh likes. Flipkart recently launched a series of 3 ads with the tag line - "No Kidding No worries". Kids were used to create the adverts to send out the message - if a kid can do it, you can also do it.The message is very clear to make people more comfortable with Flipkart,to generate a great customer relationship and loyalty on the basis of great
  • product prices and excellent customer service. All in all to create a greatcustomer experience.Business result:Flipkarts reported sales were: 40 million in FY 2009–2010, 200 million in FY 2010–2011 750 million for FY 2011–2012.In FY 2012–2013, Flipkart is set to cross the 5 billion (US$100 million)mark as Internet usage in the country increases and people getaccustomed to making purchases online. On average, Flipkart sells nearly20 products per minute and is aiming at generating a revenue of 50billion (US$1 billion) by 2014.Suggestions & Recommendations: The company has built a great brand name, they just have to maintain and enhance the same. It needs to keep introducing more products, adapting to the changing needs of the customer with time. The entry of Amazon.com in 2012 in the Indian e-commerce space has been cited as a big challenge to Flipkart. However I think that Flipkart is a respected Brand name in India and should be able to compete with Amazon.Conclusion: (Future for E-Commerce)India has 11 million online customers now which will increase to 30million by 2015. The industrys size is expected to increase to $11.8 b.Seeing the prospects of growth a lot of new online retailers have come upand there is a price war going on to attract more and more customers soit has become extremely important to manage cost to increase profitswhich is only possible by building an efficient nationwide deliverynetwork, warehouses , inventory management , logistics, efficient teamsto manage all this therefore supply chain management becomes animportant factor in this industry. Flipkart obtained funding from Tigerglobal management in 2010 which is being utilized by the company forstrengthening supply chain capacity and upgrading technology platforms,including automation at warehouses.