flipkart e-retailing store in india

1. Flipkart.Com : India’s Leading E-Portal
Business
“Flipkart- Amazon Of India ”
- Manidhar Chowdary A

2. Introduction
• Online Retail Industry
• It is one of the leading e-commerce players in the country
• With over 11.5 million book titles listed, 11 different categories, more than 2 million registered users and sale of
30000 items a day.
• Founded by Sachin bansal & Binny bansal in Bangalore, Karnataka in 2007.
• Started with initial capital of INR 4 lakh.
• 7 warehouses, offices and delivery centers (2011).
• Revenue is of US $1 billion(FY 2013-14).
• 15000+ employees till December 2014.
• Subsidiaries are “We Read”, “Mime 360” and “Lets Buy”.

3. Management Team
Sachin Bansal
CEO and Co-founder
Binny Bansal
COO and Co-founder
Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a degree
in Computer Engineering. In 2006 he joined Amazon.com in India which he later left to
set-up Flipkart.
As CEO, Sachin oversees all the customer facing activities of the company ranging from
technology to marketing. He is also in charge of Flipkart's corporate divisions which
include the finance and legal departments.
An avid gaming enthusiast, Sachin likes to spend most of his free time with his family.
Born and raised in Chandigarh, Binny went on to get a degree in Computer Engineering
from IIT Delhi. He had a brief stint at Amazon before taking the entrepreneurial plunge
with Flipkart.
At Flipkart, Binny oversees all operational activities that come into play from the time
the customer places an order till the time of delivery. This spans across divisions like
warehousing, logistics and customer support.
Binny is also passionate about soccer and NBA. An active sportsman, he used to
captain his school basketball and soccer teams.

4. “To become Amazon of India”.
Providing a delightful and memorable customer experience.
“Completely hassle free shopping experience with best
prices in India”.
VISION
MISSION
OBJEVTIVES

5. FLIPKART
Normal
people (for
gifts, etc.)
Students/Academicians
and
Corporate/executives
Book lovers

6. • Bad experience of Indian with online shopping in the
past-
1. Poor experience with the product
2. Late shipping
3. Poor customer services
• Not an easy segment to break into , people were very
particular in paying money for something which they
had not seen or received.
Initial Challenges

7. • COD [Central ordinance depot]
• 24*7 Customer Service
• Never Promise Something That You
Don’t Have-It Built Its Own Inventory
• Delivery- Its own Courier Company
• No Question- Return Policy And 30
Days Replacement Policy- A Recent
Study Has Found That 89% Of
Online Buyers Say Return Policies
Influence Their Decision To Shop An
E-Trailer
FLIPKART BUILDING TRUST

8. • INDIAN RAILWAYS – www.irctc.co.in played a big role to its
success.
• Internet Boom In India And Growing Internet Base Users In India.
• Not Much Competition In The Market.
RIGHT TIMING HELPS!

9. • Flipkart has been mostly marketed by word of mouth advertising.
• Customer satisfaction has been their best marketing medium.
• Flipkart very wisely used SEO (Search Engine Optimization) and
Google Ad-words as the marketing tools to have a far reach in the online
world.
• Flipkart.com official Face book page has close to 4.4m 'likes'. Flipkart
recently launched a series of 3 ads with the tag line - "No Kidding No
worries"
• Kids were used to create the adverts to send out the message - if a kid
can do it, you can also do it.
• All in all to create a great customer experience.
Marketing Strategy

10. Flipkart’s Success mantra!
• Great customer service
Flipkart users are more satisfied than that of their competitors. Great customer service has
been its hallmark.
• Easy to use website, hassle free payment system
The user interface is sleek and easy to use.
• Cash on delivery/Card on delivery mode of payment
This has been a major instrument in Flipkart’s success. Almost 60% of its sales happen
through this mode. Cash on delivery created trust in the minds of Indian customers who
were always weary of making payments online.
• Focused on user experience
Every other e-commerce site, tried to cram the maximum of amount of information possible
into every single page where as Flipkart focused on providing only the relevant info.

11. • Started with books and went on to add
new products
• 2 employees , 2 suppliers to 15000
employees and more than 600 suppliers
• Have Their Own Internal Courier Services
Called Flipkart Logistics
GROWTH STORY…

12. WHY BOOKS WERE THE
FIRST CHOICE ?
• Lower Transactions Size
• Better Shelf Size
• Shipping And Handling Of Books Is Easy
• To Emerge As A Pioneer In Book Retailing
Rather Than Venturing Comparison Shopping
Engine

13. Order Lifecycle
• Attract users to the site
Family, Friends, SEO, SEM,WoM, Brand Building
• Provide selection
Make it easy to Find & Discover products
• Provide details to evaluate a product
Description, Specifications, UGC.
• Price well
Have to be competitive to the most obvious options
• Provide convenient payment options
Online, COD
• Confirm payment

14. Get the item
 Procure from Supplier (Just-in-time) (Supplier selection)
Keep Inventory (Inventory Prediction, Planning)
Clean & Check for sanity
 Pages missing, MRP printed lesser than told to you
Pack the item
 Tamper proof, weather proof, breakage proof
Select courier & hand-over
 Courier performances vary across regions a LOT
Get tracking id & communicate to customer
 Follow-up for timely delivery
Take care of returns (faulty product/user changes their mind)
Minimize returns
Order Lifecycle (Cont…)

16. 2010: WeRead, a social book discovery tool.
2011: Mime360, a digital content platform company.
2011: Chakpak.com, a Bollywood news site that offers
updates, news, photos and videos.
2012: Letsbuy.com, an Indian e-retailer in electronics.
Flipkart has bought the company for an estimated US$25
million.
2014: Acquired Myntra.com in an estimated INR 2,000 crore
deal.

18. FICTION
ACADEMIC
LITERATURE
CHILDREN
ELECTRONIC GOODS
HOUSEHOLD ELECT.
MOBILE TECHNOLOGIES
PERIPHERALS,WELLNESS
APPARELS
ACCESSORIES
Eg: Flipifts, bottoms
up, extended range
of academic books
•Aims most segments
except automobiles
and groceries.
PRODUCT

19. ► Offers discount
► E-wallet
► E-gift vouchers
► Eg: membership
cards with points
facility
► Advertising
► Online marketing
► Media
► Word of mouth
► Suggested:
► sponsorships
► e-wallet promotion
► themes of advertisements
concentrating on different
services provided.
PRICE
PROMOTION

20. ►Inventory at 4 major
centers-Mumbai,
Delhi, Bangalore,
Kolkata
►Delivery services
through e-kart and
postal services
►Covers all tier-1 cities
and major tier-2 and
tier-3 cities
► The packaging and
quality of product
► Prompt delivery
► 30 day return policy
► Suggested- Better user
interface, IP tracking
for Flipifts
PLACE
PHYSICAL DISTRIBUTION

22. STRENGHTS
►Industry condition: very high
potential
►Investor’s trust
►Services and warehousing
►Payment options
►Established brand
►Customer service
►Online discoverability
►Inventory management
►Self owned delivery network
►Supplier network/relation
►Innovation and technology
competence
►Brand
►Supply Chain Management
►Quick Turnaround Time
►Advertisement And Promotion
►Strategic Acquisitions
►Huge Reach
►Self owned logistics i.e. E-KART
►Strong Brand value
►Self owned online gateway i.e
payzippy
►Exclusive tie ups

23. WEAKNESSES:
►Entry of international on-line competitors in Indian market
►.Customers are not comfortable with online payment
►.Not profitable operationally
►.Time to build confidence among the customers
►.Middle management retention issues.
►No control over small value orders
►Free shipping built costs
►Less reach as compared to physical book stores.
►Global reach.
►Investor driven organisation
►Capital and technology intensive
►Less reach compared to physical stores
►Shipping cost for small value orders

24. OPPORTUNITIES:
•growth in e-tail
►growth in e-book culture
►broadband penetration
►mobile apps
►development of m-commerce in the e-market
►increasing internet penetration
►target social medias to reach young population
►high interest among vc/pe.
► untapped mobile users
► coverage of all parts of india
► tie ups with book fairs/education institutes.
► enter new untapped global markets
► Self e-publishing
► Global markets
► Growing demands of e-retailers
► Increassng access to internet
► Rapid adoption of mobile platforms

25. THREATS:
►High competition from major international online
retailers
►Capture of alternative market by competitors
►e.g.Infibeam, amazon.in
►Low internet penetration
►Less usage/preference of online buying
►Small value orders in remote areas with high delivery costs
►Amazon will enter soon
►Economic downturns
►Price wars
►Insecure online transactions due to increased cases of
hacking