This presentation gives to an insight of E-retailing in India. Also it focuses on the Competition that prevail between Amazon and flipkart. Also it provide information about the future of E-retail market india.
Amazon.com, Inc. is an American international electronic
commerce company with headquarters in Seattle, Washington, United States.
Amazon.com started as an online bookstore, but soon diversified,
selling DVDs, VHSs, CDs, video and MP3downloads/streaming, software, video
games, electronics, apparel, furniture, food, toys, and jewellery.
The company also produces consumer electronics—notably the Amazon
Kindle e-book reader and the Kindle Fire tablet computer.
Amazon is considered the fourth most successful startup company of all time
by market capitalization, revenue, growth and cultural impact
MISSION: TO BE WORLD’S LARGEST CUSTOMER CENTRIC COMPANY.
DIVERSITY IN SELECTION
PLATFORMS FOR MERCHANTS AND ASSOCIATES.
COMPANY DON’T BELIEVE IN INNOVATING NEW THINGS.
BUT RATHER INNOVATING IN THINGS THAT DON’T CHANGE.
E BOOK READER AND AMAZON KINDLE
ALL ENERGY IS USED IN IT.
1998: PlanetAll, a reminder service based in Cambridge, Massachusetts; Junglee, an XML-based data mining startup based in
Sunnyvale;[Bookpages.co.uk,a UK online book retailer, which became Amazon UK on October 15, 1998.
1999: Internet Movie Database (IMDb);Alexa Internet, Accept.com, and Exchange.com
2003: Online music retailer CDNow. By 2011, the website cdnow.com was defunct and in use by a different company.
2004: Joyo.com, a Chinese e-commerce website.[
2005: BookSurge, a print on demand company, and Mobipocket.com, an e-Book software company.[CreateSpace.com (formerly
CustomFlix), a distributor of on-demand DVDs, based in Scotts Valley, California. CreateSpace has since expanded to include print on-
demand books (POD), CDs, and video.
2006: Shopbop, a retailer of designer clothing and accessories for women, based in Madison, Wisconsin.
2007: dpreview.com, a digital photography review website based in London; Brilliance Audio, the largest independent publisher
of audiobooks in the United States.
2008: Audible.com; Fabric.com; Box Office Mojo;AbeBooks; Shelfari; (including a 40% stake in LibraryThing and whole ownership
of BookFinder.com, Gojaba.com, and FillZ);Reflexive Entertainment,a casual video game development company.
2009: Zappos,an online shoe and apparel retailer Lexcycle, SnapTell, an image matching startup, Stanza, a rival e-book reader to
2010: Touchco., Woot,Quidsi, BuyVIP, Amie Street.
2010: Toby Press[
2011: LoveFilm, The Book Depository, PushbuttonYap,
2012: Kiva Systems,Teachstreet Evi
2013: IVONA Software, GoodReadsLiquavista
Flipkart is an Indian e-commerce company headquartered
in Bangalore, Karnataka.
It was founded by Sachin Bansal and Binny Bansal in 2007.
In its initial years, Flipkart focused on online sales of books, but
later it expanded to electronic goods and a variety of other
Flipkart offers multiple payment methods like credit card, debit
card, net banking, e-gift voucher, Cash on Delivery and Card
Swipe on Delivery
THEN & NOW
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.
Initially funded by the Bansals themselves with Rs. 4,00,000. In its initial
years, Flipkart focused on online sales of books.
Today , 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.
In 2012, Flipkart added A.C, air coolers, stationery supplies & life
style products to its product portfolio.
As of today, Flipkart employs more than 4,500 people.
RISKING IT ALL ON THE LINE
There was huge risk taken by both the Bansal's as both of them got a high
profile job in the worlds biggest e-commerce website named Amazon.
Leaving Amazon to start their own company with just Rs. 4,00,000
involved a huge risk as there was no guarantee that their idea would
succeed or not.
It was result of this risk taking only that today Flipkart generates Rs 1.5
Crore a Day. It has a record user base of 1 Million in India only.
FLIPKART BROUGHT MAY REVOLUTIONARY INNOVATIVE IDEAS TO MAKE
ONLINE SHOPPING MUCH EASIER AND FUN THAN IT WAS A FEW YEARS
BACK. SOME OF THESE INNOVATIONS ARE :-
DELIVERY WITHIN 2 DAYS
The first few e-commerce web sites broke the trust of many Indian
customers by not delivering the order product on time.
Flipkart realised this problem and in order to bring the customer
back to on line shopping it came up with idea of delivering the
product in 2 days & if there is a delay then the customer is paid
interest on the value of product.
30 DAYS RETURN POLICY
In order to satisfy the Indian customer after the product is delivered
flipkart came up with idea of providing 30 day return policy.
This is done to ensure that the product delivered to the customer is
Card Swipe on Delivery
Flipkart realised that most of Indian customers are not comfortable
sharing there credit card details online. As there is always a risk of
For solving this problem it came up with the idea of card swipe on
delivery i.e- the delivery guy brings the card swipe machine so that
all the transaction happens before customer.
In FY 2011–2012, Flipkart crossed the INR5 billion
(US$100 million) mark as Internet usage in the
country increases and people get accustomed
to making purchases online. Flipkart projects its
sales to reach INR10 billion by year 2014. On
average, Flipkart sells nearly 20 products per
minute and is aiming at generating a revenue of
INR50 billion (US$1 billion) by 2015.
2010: WeRead, a social book discovery tool.
2011: Mime360, a digital content platform company.
2011: Chakpak.com is a Bollywood news site that offers updates,
news, photos and videos. Flipkart acquired the rights to Chakpak’s
digital catalogue which includes 40,000 filmographies, 10,000
movies and close to 50,000 ratings. Flipkart has categorically said
that it will not be involved with the original site and will not use the
2012: Letsbuy.com is India's second largest e-retailer in electronics.
Flipkart has bought the company for an estimated US$25 million.
Letsbuy.com had been closed down and all the traffic of Letsbuy is
diverted to Flipkart.
80 percent of Amazon’s product
reviews were positive. people who
received free products from
publishers, agents, authors, and
The lesson: Encourage reviews of
your business, especially when
you’ve got a happy customer on
People are reading more than
ever because of the ease of E-
books. E-books from Amazon are
also popular among those with
iPads because of Amazon’s
Lesson: If you’ve got a niche
product that you’re known for,
keep your focus on it and maintain
a wide selection
Amazon.com works hard to
differentiation through customer-
focused information services.
Amazon.com's site retains
customer preferences and
customization for users
Lesson : should focus on the
customer preferences and give
them advantage of customization
Amazon still manage to get a hold
on its price differentiation when
compared to other physical or
But with flip kart , they are still not
getting it. Customer still find a wide
gap in price b/w flip kart and
other online store.
3 possible scenarios
Amazon buys Flipkart: (Probability: 40%) This is the dream Flipkart
founders /investors are hoping for day in and day out. The question
then will be about what the price will be. If we look at history, it's
similar to what Ramesh Chauhan of Parle soft drinks faced when
Coke was trying to enter India. He sold off 4 brands: Thumsup, Gold
sport, limca and one other for a price of 750 crores when a
reasonable value was more likely 275 to 300 crores. It's rumored that
Flipkart founders have already asked for 2 billion USD which Amazon
thought was ridiculous and turned down. This is the kind of exits
current investors are hoping for.
3 possible scenarios
Amazon crushes Flipkart: (Probability: 50%) Amazon brings in its own
expertise, processes, patents, IP, brand and offers superior buying
experience thereby wiping flipkart out of existence. The problem
which flipkart has solved( Logistics) is a commodity and can easily
be replicated. I am assuming that flipkart doesn’t have any IPR or
patent ( In fact the founders having worked with Amazon earlier
might have exploited Amazon's IPR ). The customers quickly switch
to Amazon. Finally, Flipkart is sold for a small amount to Amazon. It
would be disastrous for founders and investors.
3 possible scenarios
Flipkart does a Lagaan: (Probability: 10%) Amazon is not able to find
its feet in the country. Flipkart finds the battle tough. If Bansals get
the government to protect it. They bribe Momota di / Fernandez
who go on rampage and either drive Amazon out of India or, just
like the Naukri Versus Monster showdown, Flipkart becomes #1 and
Amazon is comfortable playing the second fiddle.