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Flipkart potential
Flipkart was founded in 2007 in Bangalore, India by Sachin and Binny Bansal. It started as an online book retailer and has since expanded into multiple product categories. Flipkart is now one of the largest online retailers in India, delivering over 5 million shipments per month to customers in around 150 cities. In the future, Flipkart aims to scale its business further by increasing the number of sellers on its marketplace and expanding its product offerings and mobile features.
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Flipkart potential
- 3. History and growth E-Commerce Foundedin the year 2007 Mr. Sachin Bansal and Binny Bansal Registered in Singapore Headquartered in Bangalore, Karnataka
- 4. History and growth Sachinand binny Left Amazon; Flipkart was founded Went online; Started as book retailer Accel partners (India) invest $1 million Tiger global invest $20 million Launched seller marketplace Acquired myntra
- 5. LARGEST ONLINE RETAILERSIN INDIA • 14 product categories & with a reach in around 150 cities • 3000 sellers on its platform and delivering 5 million shipments per month PAYMENT METHOD • Cash on delivery, credit or debit card transactions • Net banking, e-gift voucher and card swipe on delivery FLIPKART SELLS GOODS • WS Retail • Other third-party sellers LAUNCHED ITS OWN PRODUCT RANGE • DigiFlip • Citron
- 6. Business model 01 02 03 04 Inventory-led modelrequires huge investment in warehouse and logistics, Now, Flipkart.com e-commerce websites are using mix of both the models. Flipkart started its operation with books, but soon it started adding more categories. Inventory Led Model as well as market place model. Flipkart, which had an inventory-led format, lately announced a shift to the marketplace model, which is about hosting many retailers on a single online platform. However, industry sources reason that Flipkart may still not have left the inventory-based format and, therefore, it requires significant investments.
- 7. Business model Promotional Techniques Newspapers Television media Weband a personalized banner ads E-mail promotions with incentives like discounts to buy
- 8. War is onfor Indian Market Share
- 9. Product Offering Comparison betweenFlipkart.com and Amazon. In Flipkart has about 7 percent more SKUs than Amazon
- 10. Product Offering Comparison betweenFlipkart.com and Amazon. In For Laptops category, the gap is wider with Flipkart having a 45percent bigger catalogue size
- 11. Product Offering Comparison betweenFlipkart.com and Amazon. In In Cameras Category, Amazon leads the race with 284 SKUs against Flipkart’s 256 SKUs.
- 12. Supply Factor Comparison:X-Factor- Vendor Network &Value Management Flipkart
- 13. Supply Factor Comparison:X-Factor- Vendor Network &Value Management Third-party vendor However, it has reportedly sealed an unconventional deal with Catamaran Ventures, the private investment arm of Infosys co-founder N R Narayana Murthy. Catamaran is holding a majority stake in a venture which is supposed to work at the back-end of operations for Amazon in India.
- 14. Challenges Faced inOctober 2014 Flipkart.com Intention to increase the popularity by targeting Billion sales, a day long shopping event on 6-10-2014 & promised greatest sale ever in India
- 15. Challenges Faced inOctober 2014 Flipkart.com As part of the sale, the company was offering multiple items at price of Re 1, up to 30 percent off on Smartphones, Laptops starting Rs 15,000, Fashion and Perfumes at 50 percent off and Toys at 50percent off, among others. It was also hosting exchange offers on Televisions and Phones.
- 16. Problem Faced inOctober 2014 Flipkart.com Many users could not place the order because the servers were not capable Many users who placed orders received e-mail informing them that the order stand as cancelled Many users who placed orders received e-mail informing them that the order stand as cancelled Major competitors filed complaints against Flipkart to Commerce Ministry claiming that selling products for less than cost price is against the commerce policy of India.
- 19. Growth Engines Rural It isexpected that the percentage of Internet users from rural locations will grow to 40-50 percent by 2018, up from 29 percent in 2013. Mobile It is estimated that mobile internet users will make up between 70-80 percent of India’s total online population, up from 60-70 percent in 2013. E-commerce Morgan Stanley expects the size of the Indian internet market to rise from $11 bn in 2013 to $137 bn by 2020 and market capitalisation of these internet businesses could touch $160- 200 bn from the $5 bn at present.It is expected that telecoms and other corporations will continue to invest in modernizing network infrastructure, at a steady 10% growth. Government spending will also grow at 20% to $3.5 billion. Infrastructure Infrastructure The Internet related contribution to India’s GDP in 2013 was 3.2% at $60 billion, and is expected to rise to 4.6% to $160 million by 2018.
- 20. Future Prospects: Flipkart Flipkart’splans for the future mainly include scaling up the size of its business. It plans to have 10 to 12000 sellers on its platform within the next few years. Also, on acquisition of Myntra, Flipkart, currently owns about 50 percent of the organized lifestyle market in India. It plans to increase this figure to 70 percent. It has more than 1,000 sellers now, & it wants to scale up this number to 10,000 to 15,000 in a year’s time, & to a few lakhs in 4 to 5 years. Around 40 percent of Flipkart’s online traffic now comes from Mobiles. It thus wants to add more features to its mobile shopping app to increase customers’ satisfaction& loyalty.
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