Online Shopping is also called as E-Commerce
E-Commerce stands for Electronic Commerce
Pertains to trading in goods and services through the electronic medium
It is all about speed, connectivity, and sharing and exchanging goods, services and
Online shopping is the use of the internet “for exchanging information of value
between firms and their trading partners, employees, and customers with the
absence of geographical and time restrictions”
India is showing tremendous growth in online shopping
With the middle class of 300 Million people, online shopping shows unlimited
potential in India
ONLINE SHOPPING IN INDIA
Various Websites providing variety of goods and services such Flipkart,
Ebay India, Amazon india, Bigbasket, Jabong etc.
There are total 1938 Online Shopping companies in India(Oct, 2012)
Domestic Online market has the potential to grow between $ 125
Billion and $ 260 Billion by 2024-25
In India Online Shopping is facilitated by Information Directories and
Banks (Net Banking, Phone Banking, Credit Card, Debit Card)
Most difficult challenge for Indian Online industry is : We still belief of
touch and feel concept.
People are not comfortable with online money transaction
• Started: February 2007
• Myntra.com is an Indian online shopping retailer of fashion and casual
• Headquarters in Bangalore.
• Myntra was established by Mukesh Bansal, Ashutosh Lawania, and Vineet
Saxena in February 2007.
• In the last 3 years, Myntra has become the most popular destination for
personalized products in the country.
• Myntra.com is one of the E-tail players to popularize online
shopping which is a new mode of shopping in India.
• Myntra left its mark of innovation through online coupons
• the store circulated a large number of Myntra promotion codes.
NEW BUSINESS FOCUS AND PRODUCTS
• Myntra has tied up with top fashion and lifestyle brands in India,
such as Nike, Inc., Reebok, Puma, Adidas, Asics, Lee, Lotto, etc. to
offer a wide range of current season merchandise from these brands.
• Myntra currently offers products from more than 350 Indian and
There are also casual and dressy footwear for women from Catwalk,
Carlton London and Red Tape to name a few.
BUSINESS MODEL OF
• Myntra.com is an aggregator of many brands.
• Its business model is based on procuring current season
merchandise from various brands and making them
available on the portal at the same time as in respective
retail brand outlets
• Myntra.com was announced as a winner of the Red
Herring Global 100 award.
• CNBC - TV18 awarded Myntra.com as one of the Hottest
Internet Companies of the Year at the Mercedes - Benz
CNBC - TV18 Young Turks Awards.
• Myntra.com is ranked among the top 10
e-commerce companies in India
Myntra undoubtedly enjoyed the first mover advantage in the
online retailing business. But Myntra’s success has been replicated
by other companies that have now become competitors for Myntra.
Some of them are
Blue Bus Tees,
Order Processing and Delivery: Myntra attempts to order and ship every order
within 24 hrs.It offers free shipping within India on all products It can ship internationally
to all major countries.
Technological: Myntra maintains its website which provides the only
means by which a customer can make a purchase.
To maintain, upgrade and improve the website and the user experience,
Myntra employees many computer science engineers and experienced
Myntra has successfully used social networking websites Facebook and Twitter to
expand its customer base.
Myntra positions itself as a fashionable new age brand. It launches major marketing
campaigns every year. In February 2012, Myntra rolled out an OOH (out of home)
campaign across 2 cities to build brand awareness and promote online shopping.
Myntra has used mostly viral marketing and internet for its popularity coupled with
occasional discounts and referral discounts. It can be given a rating of 3/5.
Marketing and Sales is a core activity of Myntra. By looking at the
popularity of Myntra we can conclude that Myntra is doing a much
better job in Marketing & providing its services to customer.
Jabong.com is an Indian fashion and lifestyle ecommerce portal. It sells
apparel, footwear, accessories, beauty products, fragrances, home accessories
and other fashion and lifestyle products. The site started operations in January
2012. It was co-founded by Arun Chandra Mohan, Praveen Sinha and Lakshmi
Potluri. Currently it is spearheaded by Arun Chandra Mohan, Praveen Sinha,
Manu Jain & Mukul Bafana.
The company is headquartered in Gurgaon, NCR. The company has launched its mobile site recently and is said to
have estimated revenues to the tune of 100-150 mn USD.In less than 20 months, Jabong.com has become the third-
most visited online shopping website after Myntra.com and Flipkart.com. The website is currently getting 14000
orders on daily basis out of which 60% of sales are coming from small towns.
Jabong.com follows both inventory model and a controlled marketplace model. In inventory model, products are sourced
from brands and stored in the Jabong warehouse. In controlled marketplace model, Jabong doesn’t store the inventory but
takes care of the Fulfillment, Customer Service, and Returns if any.
The company's main source of promotion has been the internet.[ However, Jabong launched its first TV campaign in March
2012. A similar campaign was launched in September 2012. In Feb 2013 Jabong launched a new TVC with tagline “Fashion
Nikla Mann Fisla”.
Products and Brands
Jabong stands as a Fashion and Lifestyle e-portal by selling shoes, apparels, accessories, home décor
and furniture through its website. The e-store at present carries over 700+ brands and over 50,000
Jabong.com offers same-day delivery in Delhi/NCR, and within 48 hours in top 10 cities and within 2–3 days in
other cities and towns.
Jabong also has its international store Jabongworld.com. JabongWorld offers a wide range of Indian ethnic wear and
western wear such as sarees, lehengas, salwar suits and dress materials, dresses, tunics etc. priced in foreign
currencies like euro, UAE dirham, US dollar, Canadian dollar and Sri Lankan rupee.[
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both
alumni of the Indian Institute of Technology Delhi. They worked for
Amazon.com before quitting and founding their own company.
The first book the company sold was John Woods' Leaving Microsoft to
Change the World.Today, as per Alexa traffic rankings, Flipkart is amongst
the top 20 Indian Web sites and has been credited with being India's largest
online bookseller with over 11 million titles on offer.
Further in 2012, Flipkart added A.C, air coolers, stationery supplies & life
style products to its product portfolio.
Flipcarts reported sales for the years
2008-09 = INR 40 Million
2009-10 = INR 200 Million
2010-11 = INR 750 Million
2011-12 = INR 5 BILLION
Aims to cross INR 50 BILLION by the
OVERVIEW OF FLIPKART
Top Class Shopping Store in India
Started in 2007 with Books
Acquired letsbuy.com and Became HUGE
Today, Features Numerous Products
Payment Methods: Cash on Delivery, Credit/Debit Card, Net Banking, etc.
High-quality Customer Service
POPULAR PRODUCT CATEGORIES
Clothing: T-shirts, Jeans, Sports Wear, Trousers, etc.
Footwear: Casual Shoes, Formal Shoes, Flats, Heels, etc.
Beauty & Personal Care: Trimmers, Shavers, Soaps, Brushes, etc.
Mobiles & Tablets: Samsung, Micromax, Nokia, Sony, etc.
Laptops & Accessories: HP, Dell, Sony, Lenovo, Pen Drives, etc.
Books: Literature & Fiction, Biographies, Novels, Ebooks, etc.
Baby Care & Toys: Vehicle & Action Toys, Stuffed Toys, Diapers, etc.
Sports & Fitness: Cricket, Football, Basketball, Badminton, etc.
Clothing: Adidas, Puma, Reebok, Lee, etc.
Footwear: Puma, Adidas, Reebok, Fila, etc.
Watches: Casio, Fastrack, Citizen, Timex, etc.
TV: Sony, LG, Samsung, Philips, Panasonic, etc.
Sports & Fitness: Speedo, Nivia, Yonex, Cosco, etc.
STRATEGY TO SUSTAIN ITS MARKET DOMINANCE
Leading online trading forum
Partnerships with 250 US/international companies
Global reach (B2C, C2C)
Unlimited scope of categories
No brick warehousing
Zero traditional sales force
Lack of in depth descriptions of products
Inability to measure illegal activity on site (fraud – esp. C2C)
Inability to penetrate some foreign markets
Changing lifestyles of people
Acquisition of smaller substitutes or complimentary sites
Continued international expansion
Expand community services
Increasing number of online stores
Increasing number of online auction sites
Rapid growth of Amazon.com
STRATEGY TO SUSTAIN
ITS MARKET DOMINANCE
The move to go public
eBay's business model
Creating and maintaining a person-to-person trading community
Function as a value added facilitator
Provide a supportive infrastructure
Zero inventory & without having traditional sales force
International business and
SPECIFIC ELEMENTS OF
Largest online trading forum
Compelling and entertaining environment
Establishing trust & safety programs (Safeharbor)
Cost effective and Convenient trading
Strong community affinity
An intuitive user interface
THREE MAIN TACTICS
To build strategic partnerships.
To look for customer feedback for constantly making changes and improvements.
To monitor its internal and external environments for possible opportunities.
Broaden the existing trading platform
Foster eBay community affinity
Enhance features & functionality
Expand value-added services
Continue to Develop:
Build new user community
Acquire local organization
Form partnership with a local company