this report tells you online shopping tren in India and as well around the globe.

1. Name:
1. Muhammad Ali Qaiser
2. Clement John Stephen
3. Hamza Hanif
Class:
BBA 7th Semester
Subject:
E-Commerce
Submit to:
Sir Chettan Kumar

2. About Flipkart:
Flipkart is an Indian based ecommerce company started by Sachin Bansal and Binny Bansal who
previously worked at Amazon.com. Flipkart is an e-commerce marketplace company founded in
2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore, but has its
headquarters in Bangalore, Karnataka, India. Flipkart has launched its own product range under
the name "DigiFlip" with products including tablets, USBs, and laptop bags. Flipkart's last
fundraising round in May 2015 had pegged its valuation at $15 billion. In May 2016, Morgan
Stanley lowered Flipkart's valuation to $9.39 billion. In November 2016, Morgan Stanley
lowered Flipkart's valuation again, to $5.54 billion.
www.flipkart.com
History:
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian
Institute of Technology Delhi. They are not related to each other. They worked for Amazon.com,
and left to create their new company incorporated in October 2007 as Flipkart Online Services
Pvt. Ltd. The first product they sold was the book Leaving Microsoft To Change The World to a
customer from Hyderabad Flipkart now employs more than 33,000 people. Flipkart allows

3. payment methods such as cash on delivery, creditor debit card transactions, net banking, e-gift
voucher and card swipe on delivery.
Business Structure:
Flipkart announced the launch of Flipkart Marketplace. To start with, Flipkart has on-board 50
sellers that will sell books, media, and consumer electronics. The announcement means a change
in the way Flipkartdoes business. With a marketplace model, Flipkart will no longer have an
inventory of its own, rather buyers can deal with sellers directly and the delivery will be done by
Flipkart. The structure will be similar to eBay India. In a report dated 25 November 2014, a
leading media outlet reported that Flipkart were operating through a complex business structure
which included nine firms, some registered in Singapore and some in India. In 2012 Flipkart co-
founders sold WS Retail to a group of investors led by Rajeev Kuchhal.
Acquisitions:
Flipkart acquired the following on the following dates:
Date Acquired
Apr 1, 2016 PhonePe
Dec 3, 2015 MapMyIndia
Sep 1, 2015 FX Mart
Apr 29, 2015 Appiterate
May 22, 2014 Myntra
Feb 9, 2012 LetsBuy.com
Dec 22, 2010 weRead

4. Business Model of Flipkart:
Flipkart is an e-commerce portal, B2C shopping Portal, for Indian customers or at-the-moment,
customers ordering the goods for delivering in India. The model here is : Portal > List Sellers
who sell the desired portfolio products > Get customers browsing through the products > Create
appealing discounts > Customer Shops for the desired products > Seller / Flipkart ships the
product to customer > Product Accepted and Not returned back > Seller gets his agreed price of
the product minus the commission charged by FlipKart for doing everything they do.
The sale can happen via multiple channels as listed below & For all the sale achieved by
FlipKart for a particular seller FlipKart will charge a percentage (%) cut on the total sale amount
excluding taxes.
1. Direct via Website
2. Direct via Web-App
3. Direct via Mobile App (Android or iOS or others)
4. Direct via Tele Sales (Customer calling and Placing order – Happens rarely now)
5. Via Affiliate networks (Bloggers, Coupon Websites, Review Websites etc)
6. Social Buy
SWOT Analysis:

5. Initial Products:
In July 2014 Flipkart launched its own set of tablet, mobile phones & Phablet. The first among
these series of tablet phones was Digiflip Pro XT 712 Tablet. In July 2014 Flipkart launched its
first networking router, under its own brand name named DigiFlip WR001 300 Mbit/s Wireless
N Router. In September 2014 Flipkart launched its in-house home appliances and personal
healthcare brand Citron. The label includes a wide range of cooking utilities and grooming
products.
Sales:
Flipkart one of India’s biggest e-commerce websites, has announced that it crossed 150 million
products in sales. In a press statement, Flipkart claims that it has seen a 150 per cent growth in
the number of products sold as compared to 2014. The top selling categories on the site are
Fashion & lifestyle, home and consumer electronics. In terms of top cities based on traffic, the
list goes as follows: Bangalore, New Delhi, Chennai, Pune, Coimbatore, and Ahmedabad for
Flipkart.
Visits:
The e-commerce website claims that it has over 45 million registered users and over 10 million
daily visits. Interestingly Flipkart also says that close to 75 per cent of the traffic on the site is
coming via mobile. It has been reported that like Myntra’s recent app only path, Flipkart (which
incidentally owns Myntra) could also go the same app-only way by September this year.
Competitors:
Top Flipkart competitors are:
1. Amazon
2. Snapdeal
3. eBay
4. Bigbazaar
Competitive Advantage:
Flipkart have gained several competitive advantages over others:
1. They have acquired companies like Myntra, Jabong, Appiterate, Letsbuy, Mine360,
chakpak.com, weread and the latest one being UPI-based payments start-up PhonePe. These
companies are helping it in enhancing its functional capabilities.
2. Founders are Ex-Amazon employee so they have the required know how of e-commerce.

6. 3. Flipkart had received $700M of funding last year after which its valuation gone to $15
billion.
4. It has a fantastic positioning in the mobiles and small appliances segment.
Marketing Strategies:
1. Distribution Strategy:
Having its own distribution firm (Ekart) and payment gateway payzippy has
helped the company in controlling its expenses and passing the benefits to the end customer.
The very demerit of Flipkart’s distribution channel is its reach as compared to the peer E-
commerce companies like Amazon, Snapdeal Ebay etc who can deliver the customer’s order
even to the remote locations. One more problem of Flipkart is that it does not support sellers with
package size of above 8 kgs. You have to use flipkart advantage for the same.
2. BCG Matrix:
Flipkart’s merchandising section (including Myntra) as well as its electronics segment is
a Star in the BCG matrix. The reason is that the segment is growing and more & more customers
are getting accustomed with online buying of clothes & electronics items in India. But as the
market is huge, the market share is less for each E-commerce player and they are fighting hard
for it. All other segments are question mark due to intense competition between the players.
Profitability is low overall so the future is unknown.
3. Segmentation, targeting, positioning:
Behavioural & Psychographic are the segmentation strategies used by
Flipkart to segment the market to cater to the customers changing needs & wants. With
the rise in per capita income and change in buying patterns, customers are getting more
acquainted and are comfortable in buying online. Flipkart uses undifferentiated targeting
strategy, since people of all demography purchase items online which is available to
everyone where the delivery is possible. National & Multinational E-commerce
companies are giving neck to neck competition to each other, due to which their
positioning is very important. Flipkart has positioned itself as a trust worthy and customer
friendly E-commerce brand.
4. Customer Analysis:
Flipkart customers consist of middle class social groups who are
comfortable with online shopping and find it convenient. Majority of the customers are
the professional who are busy with their business/Job & find it convenient to purchase
anything online rather than visiting the physical outlet in order to save time & money.
5. Market Analysis:
Changing government regulations and entry of some biggies like Alibaba,
Ebay, Snapdeal and various other start-ups is driving growth in the industry. Indian
government have allowed 100% FDI in marketplace setup which will help the companies
in their expansion and further penetration in the current market.

7. How do we Pay for Flipkart purchase:
Flipkart offers you multiple payment methods. Whatever your online mode of payment, you can
rest assured that Flipkart's trusted payment gateway partners use secure encryption technology to
keep your transaction details confidential at all times. You may use Internet Banking, Gift Card,
Cash on Delivery and Wallet to make your purchase.
Flipkart also accepts payments made using Visa, MasterCard,
Maestro and American Express credit/debit cards in India and 21 other countries.
Market Share of Flipkart:
According to a 2014 report by, three players have pulled ahead in the horizontal marketplace
race. Flipkart leads with a 44 per cent share of the $6.3 billion Indian e-commerce market, by
Gross Merchandise Value (GMV). Snapdeal is No.2 with 32 per cent share, while Amazon, a
late starter in India - it launched in June 2013 - has 15 per cent. Amazon touched $1 billion in
sales in 2014. For the company, India is the fastest-growing international market to reach that
mark, in just one-and-a-half years. Amazon does not agree with the Morgan Stanley report on the
difference in GMV share.
Long term objectives:
“Flipkart” aims to become the largest retailer of India. Flipkart wants to be present across all
categories, except in groceries and automobiles, the CEO said, “Our target is not just those who
shop online. We want to highlight the convenience of e-commerce to traditional offline shoppers
and, thus, help grow the market.”
Comparison:
The basic difference between all the three online retailers is that they work on different models.
Flipkart.com started as a direct retailer, selling goods directly to consumers and has recently
included the marketplace model as well, where sellers can list their products. Ebay.in has always
worked as a marketplace, enabling sellers to meet buyers and the company does not directly
retail products. Amazon has always followed both the models, where it sells products directly
and also lets other sellers sell their goods on its portal. While Flipkart.com and Amazon.in have
fixed price on their products, Ebay.in allows buyers and sellers to engage in auctions. On
flipkart.com customers don’t have to pay any shipping charge if they are buying products above
rs.500, Ebay.in has different shipping charges according to the sellers and Amazon offers some
products with free shipping while others are charged for shipping. Amazon.in and flipkart.com
also have different shipping and delivery options for which rates may vary. Other than that all
the 3 websites are multi-product and multi-category online retailers and don’t have much
difference.

8. Key Success Factors:
Following are the key success factors of flipkart:
1. First mover advantage
2. Increase of E-commerce industry
3. Cash On delivery
4. Customer orientation
Taglines used by flipkart:
“Bookstore at your door”
“The store at your door”
“Jo dikhta hai wo bikta hai”
“Shopping ka naya address”
“No kidding, no worries”
Conclusion:
Flipkart, the first billion dollar internet company from India is by far the leading online store in
the nation. Now that Amazon is reportedly entering India in early 2012, this news becomes more
significant, Cosidering that Amazon haspreviously, unsuccessfully, tried acquiring the company,
with Flipkart demanding a very high buy out price. With online retail industry in India pegged to
reach $1.5 billion (2015), sources suggest that e-commerce is just hotting up in India and we may
soon seen many more Internet companies achieving.