The document provides information about group members working on an e-commerce project, details about Flipkart and Myntra as e-commerce companies in India, and discusses the benefits and challenges of Flipkart acquiring Myntra. It notes that Flipkart and Myntra together would control a majority of the online fashion market in India. It also mentions that the acquisition would help both companies achieve economies of scale and better compete with Amazon, while facing challenges around profitability and competition from other domestic players.

2. Group Members
• JITIN AMARMANI
• JYOTSNA CHATURVEDI
• KRITIKA GUPTA
• MOHIT JAIN
• NIHARIKA BISHT
• NIKITA SINGH
• PIYUSH PARASHAR
• PIYUSH PRAKASH
• SHASHANK VERMA

3. E-Commerce
• What is E-Commerce?
• Internet Use in India- 137 million
•Preferred payment mode- COD
•Market Size and growth –
$2.5 to 1$4 billion in 3 years
10 million online shoppers

4. • Started – 2007
• Expanded - 2010
• Payment methods
• Revenue – $11.8 billion

5. • Established -2007
• Headquarters
• Turn Over – 800 Crore

6. Operations

7. How does Myntra or Flipkart works

8. Shopping Screen

9. Shopping Kart

10. Payment options

11. Receipt Generation
• Order No : OD126547826
• This contains all the information i.e. product code,
date of purchase , reference no, delivery area code
• Helpful in easy tracking of orders.

12. Delivery and Logistics
• No of order served daily > 30,000
• Own delivery channel for metro cities. i.e. EKART.
• Partner delivery agencies for rest of target area.
• Blue Dart & DHL are the major delivery partners of
flipkart.

13. Return Policy
• 30 days money back guarantee : Unsatisfied customer
calls flipkart customer service product is returned by
logistics partner and replacement or money is
returned in the account.
• E-Wallet Feature: Loyal customer deposit more
money and can be used for further purchases

14. Customer Support
• New Sale, Customer grievances, Other info
• 24 * 7 Customer Support.

15. Internal process in Myntra &
Flipkart
• How can these site offer discount every weekend
unlike other stores ?
• Total number of staff working in this
organization

16. WHY???
BIG DEAL…….
BIGGER REASONS…….

17. BUSINESS’
MINDS!!!!!!!!!!
COST OF ACQUISITIONCOMPETITION COMES
CALLING
PROFITABILITY TARGETS
ENTER INTO NEW
BUSINESS

18. • Cost Of Acquisition And
Economies Of Scale - By joining
forces, Flipkart and Myntra would realize huge
cost savings on customer acquisition as they
basically target the same customer and
demographic base. Combined company
would control the major E-Commerce of
India resulting in signifcant economies of
scales.
• Competition – Amazon, with its
well oiled machinery, is ready to fight
against all players of E-Commerce in
India which both Flipkart and Myntra
would better be able to face as a combined
entity.
‘GAME
OVER
EFFECT’

19. • Profitability targets –
Accel Partners and Tiger Global are
investors to both Flipkart and Myntra. Their
merger would concentrate the investments
from both the companies, helping them to
reach revenue and profitability targets much
quicker.
Pants into new business
– Apparel segment is one of the most
profitable segments in e-commerce industry
with profit margin varying from 20-50%.
Flipkart would take advantage of Myntra
being the strongest player in this industry, for
its own growth and profits.

20. Awards by Flipkart
• Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award
2012-2013 from Economic Times, leading Indian Economic Daily
• Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India
Business Leader Awards 2012' (IBLA).
• Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards
2011.
• Flipkart.com, secured second position in the List of Cheapest Mobile Store
2013, compiled by Indian e-commerce observer Zoutons.com.

21. Awards by Myntra
• Awarded 'Fashion E-Retailer of the Year 2013' by
Franchise India – Indian E-Retail Awards
• Awarded 'Best E-commerce Website for 2012' by
IAMAI – India Digital Awards
• Awarded 'Images Most Admired Retailer of the
Year: Non–Store Retail' for 2012 by Images Group
• Awarded 'Best E-commerce Partner of the year
2011-12' by Puma India

22. Competitors
“Competition seeks
business.”

23. International E-Retailing
Store

24. Amazon
• World’s Largest Online
Shopping site founded in
1994.
• In India launched in June,
2013.
• Has one of the best
delivery networks in India.
• Site Rank: 10.
Ebay
• American E-commerce
company founded in 1995
• Better known for its
Trading facilities(Buy &
Sell).
• Provides some of the
amazing deals which you
can’t find on any other
sites.
• Site Rank: 26.

26. Domestic E-Retailing
Store

27. Snapdeal
• Founded in 2010.
• Since then it has been
growing at very fast rate.
• You can find everything
on this site from hat to
shoe and from bags to
watches.
• Site Rank: 291(Globally)
15(India).
Jabong
• Indian fashion and lifestyle e-
commerce portal founded in
2012.
• Ships 14,000 orders on a daily
basis out of which 60% were
from small towns.
• Has set a record for sale in the
male fashion category in 2012.
• Site Rank: 301(Globally)
14(India).

29. Fun Facts:
• Which E-Retailer has its founders having same surname
but not brothers?
• Which E-company got started by batch-mates at IIT
Delhi?
• Which Company got started by ex-employees of
Amazon?
• Which Company started off with an initial investment of
less than $8000 leading to a staggering company worth of
$1.6billion today?

32. Myntra
• To be a fashion apparel online store only
• To build a strong consumer base
• Basic strategy – Increase product range -> Enhance
customer engagement -> maximize customer loyalty

33. Flipkart
• Flipkart to focus on books, electronics and other wide range of
products
• Flipkart Fashion Store – TV campaign
• Flipkart First
• *Bonus Information* - This is very similar to Amazon's Prime
program, which the company has not launched in India yet

34. Flipkart
• Basic Strategy – To Deliver fast, create and maintain
a quality enhanced website, increase sales volume
with reasonable product price.
• *Bonus Information* - To counter transportation
cost -> Increase customer loyalty
• ‘Try and Buy’ service

35. Myntra + Flipkart
• Flipkart’s Reason
 Wanted apparel products specialization, deeper understanding of
fashion, aesthetic presentation and experience.
 Fashion products to become the most popular category in the near
future.
• Myntra’s Reason
 To have a stronger distribution network with the present ratio being at
70:250
 To foray into the mobile platform
 To increase warehouse capacity by 4 times

36. Continued
• Myntra has started offering 30-40% discount after the infusion.
Also, due to the fact of being funded 5 crores by Premji Invest
• Simple Strategy – Combine to two entities -> get a market share
a 50% -> keeping the functionality separate, take it to 60%

38. CHALLENGES

39. CHALLENGES
1) Uncertainity of profits-
• Flipkart’s revenue soars fivefold to more than Rs.11K crore, but expenses jump more
than five times to Rs 13.5K crore. (Mint).
• Layoffs and reduced discounts.
• Is Flipkart Going To Be Another Kingfisher (Forbes)
• Burn Rate brought down from $8 million to about $6 million with ($80-85 million
still left in the bank.

40. CHALLENGES

41. DISADVANTAGES
When company started-It was all about experience but today it’s just about products.
1)Curbing negative reviews-
Official policy of flipkart-
a) If a review consists only of a product review (Positive or negative): Approve
b) b) If a review consists only of a service feedback (Positive or negative): Reject.
2) Over-dependence on amazon for new ideas-
One might think the similarity between both is limited to the fact that Flipkart also started their business by
selling books just like Amazon.
But flipkart’s Photocopiers run way deeper.

44. Benefits

45. -> Flipkart and Myntra together create the largest
e-commerce stories and together will
dominate the market.
-> online fashion market share
Myntra 30% & Flipkart 20% at present.
Myntra
30%
Flipcart
20%
Others
50%
Market Share
Myntra
Flipcart
Others
FLIPKART – MYNTRA
THE GAME CHANGER

46. 65%
35%
Market Share
Flipkart+Myntra
Other's
-> Become leaders in the category of Fashion.
-> Flipkarts earned 4-5% by electronics & phones category,
F&A will generate double digit margins.
-> 65% market share - online fashion segment
by December 2015.

47. -> Myntra to adopt Flipkart‘s Operational model
- Marketplace Model in order to overcome:
• No need for Warehousing
• No shipping Costs
• Increased Profit Margins
• Expand its reach to new customer.

48. -> The biggest Competitor – Snapdeal,
which is backed by ebay.
-> Discourages the growth pace of Jabong.
-> Walmart’s entry into the indian e -market is imminent.
-> It squares off against “Amazon”
for dominance of India's
fast-growing online retail market.

49. -> India's e-commerce market has seen huge growth in the past few years as
more people log on to the Internet to shop. FlipMynt also needs to overcome
the threat of small online retail markets.

50. Indian Population is
1.2 billion
330 Million internet
users
Only 10 Million
online Shoppers
E-Commerce
growing @ 30% in
India vs 9% globally
FUTURE AND SCOPE

51. BUSY
LIFESTYL
ES
INCREAS
E IN
DISPOSAB
L-E
INCOME
CoD
FACILITY
TIE-UPS
WITH
INTERNA
TI-ONAL
BRANDS
RISE OF
TIER II
CITIES
WHY WILL IT GROW?

52. CONCLUSION

53. THANK YOU!