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E-commerce and flipkart boom in INDIA


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Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.

E-commerce businesses usually employ some or all of the following practices:

Provide Etail or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall
Buy or sell on websites or online marketplaces.
Gather and use demographic data through web contacts and social media.
Use electronic data interchange, the business-to-business exchange of data.
Reach prospective and established customers by e-mail or fax (for example, with newsletters).
Use business-to-business buying and selling.
Provide secure business transactions
2000: The dot-com bust.
2001: achieved profitability in December 2001.
2002: eBay acquires PayPal for $1.5 billion.[14] Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
2003: posts first yearly profit.
2004:, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.[15]
2007: acquired by R.H. Donnelley for $345 million.[16]
2009: acquired by for $928 million.[17] Retail Convergence, operator of private sale website, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.[18]
2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.[19][20]
2011:, parent company of, acquired by for $500 million in cash plus $45 million in debt and other obligations.[21] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion.[22]
2013: US eCommerce and Online Retail holiday sales reach $46.5 billion, up 10 percent.[23]
2014: processes over $1 million in Bitcoin sales.[24] India’s e-commerce industry is estimated to have grown more than 30% from a year earlier to $12.6 billion in 2013.[25] US eCommerce and Online Retail sales projected to reach $294 billion, an increase of 12 percent over 2013 and 9% of all retail sales.[26] Alibaba Group has the largest Initial public offering ever, worth $25 billion
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Published in: Internet

E-commerce and flipkart boom in INDIA

  1. 1. Ecommerce and flipkart boom in India Nilesh Bajaj (14105030)HSB(marketing),GJU S&T 1
  2. 2. What is Ecommerce Electronic commerce, commonly known as e-commerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. 2
  3. 3. The Process of E-Commerce: 3
  4. 4. Different eCommerce models B2C B2B C2C C2B 4
  5. 5. Types of Ecommerce  B2B (Business-to-Business) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. 5
  6. 6. B2B (Business-to-Business) 6
  7. 7. Types of Ecommerce (Contd.)  B2C (Business-to-Consumer) Businesses selling to the general public typically through catalogs utilizing shopping cart software. B2C is really what the average Joe has in mind with regards to ecommerce as a whole. 7
  8. 8. B2C (Business-to-Consumer) 8
  9. 9. Types of Ecommerce (Contd.)  C2B (Consumer-to-Business) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions. 9
  10. 10. C2B (Consumer-to-Business) 10
  11. 11. Types of Ecommerce (Contd.)  C2C (Consumer-to-Consumer) There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. 11
  12. 12. C2C (Consumer-to-Consumer) 12
  13. 13. Trend of Ecommerce in India 13
  14. 14. 14
  15. 15. Future of ecommerce in India 15
  16. 16. E-COMMERCE INDUSTRY IN INDIA •Poised for rapid growth • Fastest growing amongst Asia pacific region. •Expanding into non-metropolitan India. •Social media and mobile technologies are accelerating e-commerce adoption. •Large retailers are looking forward to build an online presence. WORTH 16
  17. 17. Quick Stats: 17
  18. 18. Quick Stats: 18
  19. 19. Quick Stats: 19
  20. 20. Payment Gateway Ecommerce (Contd.) 20
  21. 21. Quick Stats: 21
  22. 22. Payment Gateways in India 22
  23. 23. India is on the verge of an eCommerce boom 23
  24. 24. e-Commerce e-Travel e-Tailing Inventory Model e-Classifieds Marketplace Model Digital Downloads 24
  25. 25. E-tailing or Online retailing is driving the Ecommerce Industry 25
  26. 26. 10 essentials for an Ecommerce portal in India… 1. Offer enticing Deals & Offers 2. Maximum details of Products/Services 3. 360° viewing 4. Quick load time 5. Customer support numbers & Chat support 6. Social Media Links 7. Cash on Delivery / Cash before Delivery option 8. Secure Payment System: SSL certificates, Trust badges 9. Flexible Return policy 26
  27. 27. Why do people Shop online? 81% of respondents shop online for Discounts and Cashbacks 27
  28. 28. 2/3rd of online shoppers in India buy Clothes and Accessories Electronics is the 2nd biggest e-tailing category with 62% 28
  29. 29. How often people shop Online in India? 75% of respondents buy online at least once a month Source:, Online Shopping Trends India Survey 29
  30. 30. Source: ASSOCHAM report & KPMG Report Future of eCommerce in India - India have World’s 2nd largest user base in June 2014 with 243 Million users surpassing U.S. - eCommerce to contribute around 4% to GDP in India by 2020 - The sector will generate 1.5 Million jobs by 2020 - eCommerce is pegged to be worth $56 Billion by 2023 - And will control 6.5% of the total retail market by 2023 30
  31. 31. Current eCommerce Scenario − eCommerce industry is valued at $12.5 Bn as on 2013 Source: ASSOCHAM report − It has a staggering growth rate of 85% in 2013 - Every 3 out of 5 internet users in India shop online - India has a young eCommerce audience with 90% in the age group of 18-35 years 31
  32. 32. Applications of E-Commerce: 1) Online Shopping 2) Electronic Bill Payment 3) Electronic ticketing 4) Online Banking 32
  33. 33. Online Shopping: Online shopping is the process consumers go through to purchase products or services over the Internet. Online shopping is a type of electronic commerce used for business-to-business (B2B) and business-to-consumer (B2C) transactions. 33
  34. 34. Electronic Bill Payment: Electronic bill presentment and payment (EBPP) is a fairly new technique that allows consumers to view and pay bills electronically. EBPP systems send bills from service providers to individual consumers via the internet. 34
  35. 35. Online Banking: Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their bank. The common features provided by online-banking fall broadly into several categories: Transactional Non-transactional 35
  36. 36. Electronic ticketing: An electronic ticket or e-ticket is used to represent the purchase of a seat on a passenger airline, usually through a website or by telephone. This form of airline ticket has rapidly replaced the old multi-layered paper tickets. 36
  37. 37. GOSF A Google's initiative, ‘Great Online Shopping Festival’ is India's version of Cyber Monday of the west GOSF 2013 reached 16 million Indian shoppers in 4 days The GOSF website received 2Mn unique visitors with 60% 1st time buyers 62% of shoppers in the age group of 18-34 years with 50% women The 4 day event saw a conversion rate of 10% 37
  38. 38. e-commerce company Flipkart has said if one goes by the gross merchandise value (GMV) transacted on its site in February, its annual sales have hit $1 billion (about Rs 6,000 crore). The company had set a GMV target of $1 billion by 38
  39. 39. Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They had been working for previously. The business was formally incorporated as a company in October 2008 as Flipkart Online Services Pvt. Ltd .During its initial years, Flipkart focused only on books, and soon as it expanded, it started offering other products like electronic goods, air conditioners, air coolers, stationery supplies and life style products and e-books. Flipkart now employs more than 9000 people.Flipkart allows payment methods such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on 39
  40. 40. Road Map Product Service Experience Inward - focused company “they love that it works” Brand - focused company “They are safe if customers are satisfied” Emotionally - intelligent -ecosystem - aware company “they can win long term profit in a competitive world with sustained customer engagement” 40
  41. 41. Management Team Mekin Maheswari President, Technology Sujeet Kumar President, Operations Mekin completed his B.E. from PESIT Bangalore in 2002. He started his career with Yahoo! and then went on to join Ugenie where he created weRead, a successful social network around books. At Flipkart, Mekin is responsible for overseeing the company’s technological operations. These include innovation and application of technology in areas starting from supply chain to website management. Mekin is an avid sports fan and was actively involved in badminton, table tennis and cricket during his school and college days. Sujeet completed his engineering from IIT Delhi. He worked in the KPO industry and orchestrated several freelance projects before joining Flipkart in 2008. At Flipkart he is responsible for overseeing supply-chain, warehousing and logistics. He is also in charge of business development for all categories. Sujeet loves playing bridge and poker. 41
  42. 42. INVESTMENTS • 2009: $1 million from Accel Partners • 2010: $10 million from Tiger Global • 2011: $20 million from Tiger Global • 2012: $150 million from Naspers, Tiger Global and Accel Partners • 2013, July: $200 million from Naspers, Accel Partners, Tiger Global and Iconiq Capital • 2013, October:$160 Million from Dragoneer Investment • 29 July 2014:Singapore’s GIC,Tiger Global Management,DST GlobalAccel Partners 42
  43. 43. TARGETING 500 450 400 350 300 250 200 150 100 50 0 Youth population (million) 353 430 464 2001 2011 2021 youth population (million) Internet users by age 35% 40% 16% 6% 3% 15-24 25-34 35-44 45-54 55+ Internet users by age (source: survey) 43
  44. 44. What is Marketing strategy Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. 44
  45. 45. Streamlined Ordering Process It eagerly develops technology to allow customers to better navigate and explore their online retail mall. “When you visit … you can use [it] to find just about any item on the market at an extremely low has made it very simple for customers to purchase items with a simple click of the mouse … When you have everything you need, you make just one payment and your orders are processed.” This simple system is the same whether a customer purchases directly from or from one of the Associates. 45
  46. 46. Attracting youth by advertisements Their main target is youth so most of ads on tv are youth targeted 46
  47. 47. Product Quality Process R&D • Price it Right • Use correct images/ resolutions • Use packaging as per guidelines Customer Experience • Always set right customer expectations • List inventoried products only • Don’t breach pick up promise • Empower teams to take quick decisions • Understand the root causes • Prevent unpleasant surprises by proactively working on improvements • Focus on scalable & sustainable solutions 47
  48. 48. The Customer’s Opinions Each product is available for consumer reviews, and customers may rate products on a hierarchical scale of 1-5 stars. 48
  49. 49. Customer Satisfaction Packaging quality Order to delivery time Pricing Product quality 49
  50. 50. Connecting new customers 50
  51. 51. LOGISTICS 51
  52. 52. e-commerce company is now valued at over $5 billion or Rs 30,000 crores. Flipkart buys out Myntra for $300 m Binny Bansal (L) and Sachin Bansal 52 together the two companies would account for 50 per cent of the online fashion market.
  53. 53. THANKS… 53