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Reinventing
Content
•   Online Retail Market in India
•   Online behaviour
•   Introduction to Flipkart
•   Current Scenario
•   Business Models
•   Competitor Analysis
•   Where Flipkart Stands
•   Reinventing Flipkart
•   Promotional Strategies



Get Ready for superior experience…
Online Shopping Trends in India, 2013




http://www.youtube.com/watch?feature=player_embedded&v=aW8-FUFPySQ
Online Retail Market in India
 • The online retail market in India may grow to Rs 70 bln
   (over $1.30 billion) by 2015 from Rs 20 bln in 2011 as
   internet access improves. - ASSOCHAM

                5%
           6%

     10%                   34%   Consumer durables          More than 50 %
                                 Apparel and accessories
                                                              of the sales
                                 Books
   15%
                                 Beauty and personal care
                                                               happen in
                                 Home and furnishing
                                                            non-metro cities.
                                 Other
                     30%



China - 1,000 deal sites              Indian e-commerce co - 70
• Social Networking and search act as entry points to
  retail sites, showing higher overlap
• Portals and Entertainment sites are also popular among
  retail users
• More than 70% consume Business/Finance, News and
  web-mail.
• Online retail reach is 1.5 times more than online travel

Comscore report
Online shopping experience




Study conducted by UPS
Introduction to Flipkart
• Founders: Sachin and Binny Bansal
• Background: IIT Delhi & ex Amazon
• Year: 2007       Investment: 4 lacs
• Headquarters: Bangalore
• Started: Books
• Today: More than 15 categories
• Revenue: Rs 500 crore (FY 11-12)
• Investors: Tiger Global, Accel Partners and South
                   Africa's Naspers
• IPO expected: In next 2-5 yrs


Making Customers Happy is our highest priority
Current Scenario
• Lack of transparency in Accounting strategies
• Building Infrastructure and adding people at irrational
  pace
• Huge investment in last mile delivery, warehousing and
  technology
• Dead stock situation
• Internal conflicts
• Attempt to return 30-40 % of books they had bought a
  year ago




Struggle to remain Customer Delight…
Competitor analysis - Catagorised



 Other Categories   Books and ebooks
 Flipkart           Infibeam
 Yebhi              Dial-a-Book
 Jabong             Bookadda
 snapdeal           Friends of Books
 ebay               Indiatimes Shopping
 homeshop18         eBay
 myntra             Junglee
 Zovi               uRead



Managing Inventory is the biggest challenge
Inventory Model - SWOT




Need of the Hour
Inventory Model - SWOT




Funds Blocked
Different views
 • Pepperfry
    – e-commerce player takes upon itself the task of running
      inventory and logistics
    – No warehouse management and outsourced logistics

 • Yebhi.com
    – Vendors keeps the inventory at their warehouses
    – Have own logistics team in place
    – Suppliers finance inventory

 • Jabong.com and Flipkart
    – Own inventory model


Knowing when to go by the book and when to throw it
Competitor Analysis
•24x7 call centre
•Delivery time 48 hrs
• Rich catalogues to choose from
•Less discounts but latest products
Myntra
• “A fashionable new age”
• Reach out to a larger number of consumers
   – Launched first brand campaign focusing on benefits
     of online shopping
• Logistic partner for beinghumanclothing.com
Shop by Trends and Brands




Updating youth with latest trends
Satisfying Customers through getsatisfaction.com
•Signup incentives
•Offers unlimited
• Extensive range of Brands
•Top visited site - comscore
Jabong
• Jabong is the most visited retail site followed by Flipkart
  and Amazon
• 11.6 million unique visitors per month
• Celebrates the shopaholic in TVCs
Premium Brands makes special appearance
ebay
• Celebrates 8th year with offers to the consumers
   – WTF (Way to fab) sale
   – Coupons
   – 0 EMIs across ebay
• Focus on Deals in their TVCs
Yebhi
• Consistently trying to replicate the offline behaviour
• Business Model

                                             Collect items from Vendor’s
             Order received
                                                      warehouse




                              Process and sent to
                                  customer




• Delivery time 1-2 days (including Sundays)
Yebhi Karke Dekho




  Promotion - TVC & website



Eliminating touch and feel factor while shopping
Realtime updates




• Realtime shopping updates
• Cash Back offers
Offerings
Exploring Flipkart
Home page 1st scroll
Website
•   Old school Look and feel
•   Looks like electronics only website
•   Category sections looks like limited
•   Compared to other website flipkart scores 4 out of 10

• Need to give modern look to the website
• Personalize the content for regular visitor
• Text, colour and creatives needs to be refreshed
Inside page




              • Items displayed needs to be regularly
                refreshed as per availability

              • Products should zoom out on mouse
                over
Social Media
 "The number of social media users in urban India reached
   62 million by December 2012 and it is estimated to reach
             66 million by June 2013," - IAMAI
  Youth audience – Primary target of Flipkark spends huge
   chunk of time   sharing views on social media

 Social Networking and search act as  entry points
            to retail sites, showing higher overlap



Power to Make or Break your brand
Less than 1% engagement
Fans Wall Posts

                                     •No real time interaction of
                                     brand with the fans

                                     •Clarify, apologize




Important - Don’t leave them unsatisfied
Decent number of followers and interactions
TVC




• Innovative concept to put across the message




#Bangon
Energizing Flipkart
Strategy


                        Listen
       Offers                          Engage



 Services            Customer              Spread



Keep him happy before he is ready to go…
Service
• Flipkart Express

• Time is more important than money
• This service will help the customer to get the product on
  urgent basis
• Flipkart will skip the regular process for these orders to
  reach quickly to the specified destination

• Flipkart will charge extra for this service
Offers
• Your Combo our Price

• All shopping websites give offers on pre defined
  combos
• Flipkart will gives chance to the customer to make his
  customised combo
• Ones the combo is made it is submitted for flipkart
  quote
• Flipkart here has a chance to surprise the customer with
  the price considering the multiple product purchase



Encouraging group buying
Listen




 •   Strong ORM in place with professional support
 •   Keep track what competitors are doing
 •   Track conversations to fulfill the GAP in the category
 •   Analyse reactions on updates and offers


If speaking is silver then LISTENING isGold
Engage
• Continous online presence through
   – Owned Media
   – Earned Media
   – Paid Media
• Disseminate Useful information
• Interact with influential people
• Engage with all the mentions of brand in digital space

• Offers and their promotions to be done creatively



Engagement builds long term relationships
Spread
 • QR CODES

 • Every parcel will have QR code embedded on it
 • The user can scan the QR code to unlock discount for
   next purchase
 • Scanning will convert into Tweet which will have a
   customized message


      Just received my @flipkart parcel #Happy




Amplification effect
The door of opportunity is always
         marked PUSH.

          Happy Shopping!!

                      - Thankyou
                             Bhavna Vaja
                      bhavnavaja@gmail.com

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Online shopping flipkart

  • 2. Content • Online Retail Market in India • Online behaviour • Introduction to Flipkart • Current Scenario • Business Models • Competitor Analysis • Where Flipkart Stands • Reinventing Flipkart • Promotional Strategies Get Ready for superior experience…
  • 3. Online Shopping Trends in India, 2013 http://www.youtube.com/watch?feature=player_embedded&v=aW8-FUFPySQ
  • 4. Online Retail Market in India • The online retail market in India may grow to Rs 70 bln (over $1.30 billion) by 2015 from Rs 20 bln in 2011 as internet access improves. - ASSOCHAM 5% 6% 10% 34% Consumer durables More than 50 % Apparel and accessories of the sales Books 15% Beauty and personal care happen in Home and furnishing non-metro cities. Other 30% China - 1,000 deal sites Indian e-commerce co - 70
  • 5. • Social Networking and search act as entry points to retail sites, showing higher overlap • Portals and Entertainment sites are also popular among retail users • More than 70% consume Business/Finance, News and web-mail. • Online retail reach is 1.5 times more than online travel Comscore report
  • 7. Introduction to Flipkart • Founders: Sachin and Binny Bansal • Background: IIT Delhi & ex Amazon • Year: 2007 Investment: 4 lacs • Headquarters: Bangalore • Started: Books • Today: More than 15 categories • Revenue: Rs 500 crore (FY 11-12) • Investors: Tiger Global, Accel Partners and South Africa's Naspers • IPO expected: In next 2-5 yrs Making Customers Happy is our highest priority
  • 8. Current Scenario • Lack of transparency in Accounting strategies • Building Infrastructure and adding people at irrational pace • Huge investment in last mile delivery, warehousing and technology • Dead stock situation • Internal conflicts • Attempt to return 30-40 % of books they had bought a year ago Struggle to remain Customer Delight…
  • 9. Competitor analysis - Catagorised Other Categories Books and ebooks Flipkart Infibeam Yebhi Dial-a-Book Jabong Bookadda snapdeal Friends of Books ebay Indiatimes Shopping homeshop18 eBay myntra Junglee Zovi uRead Managing Inventory is the biggest challenge
  • 10. Inventory Model - SWOT Need of the Hour
  • 11. Inventory Model - SWOT Funds Blocked
  • 12. Different views • Pepperfry – e-commerce player takes upon itself the task of running inventory and logistics – No warehouse management and outsourced logistics • Yebhi.com – Vendors keeps the inventory at their warehouses – Have own logistics team in place – Suppliers finance inventory • Jabong.com and Flipkart – Own inventory model Knowing when to go by the book and when to throw it
  • 14. •24x7 call centre •Delivery time 48 hrs • Rich catalogues to choose from •Less discounts but latest products
  • 15. Myntra • “A fashionable new age” • Reach out to a larger number of consumers – Launched first brand campaign focusing on benefits of online shopping • Logistic partner for beinghumanclothing.com
  • 16. Shop by Trends and Brands Updating youth with latest trends
  • 17. Satisfying Customers through getsatisfaction.com
  • 18. •Signup incentives •Offers unlimited • Extensive range of Brands •Top visited site - comscore
  • 19. Jabong • Jabong is the most visited retail site followed by Flipkart and Amazon • 11.6 million unique visitors per month • Celebrates the shopaholic in TVCs
  • 20. Premium Brands makes special appearance
  • 21.
  • 22. ebay • Celebrates 8th year with offers to the consumers – WTF (Way to fab) sale – Coupons – 0 EMIs across ebay • Focus on Deals in their TVCs
  • 23.
  • 24. Yebhi • Consistently trying to replicate the offline behaviour • Business Model Collect items from Vendor’s Order received warehouse Process and sent to customer • Delivery time 1-2 days (including Sundays)
  • 25. Yebhi Karke Dekho Promotion - TVC & website Eliminating touch and feel factor while shopping
  • 26. Realtime updates • Realtime shopping updates • Cash Back offers
  • 29. Home page 1st scroll
  • 30. Website • Old school Look and feel • Looks like electronics only website • Category sections looks like limited • Compared to other website flipkart scores 4 out of 10 • Need to give modern look to the website • Personalize the content for regular visitor • Text, colour and creatives needs to be refreshed
  • 31. Inside page • Items displayed needs to be regularly refreshed as per availability • Products should zoom out on mouse over
  • 32. Social Media "The number of social media users in urban India reached 62 million by December 2012 and it is estimated to reach 66 million by June 2013," - IAMAI Youth audience – Primary target of Flipkark spends huge chunk of time sharing views on social media Social Networking and search act as entry points to retail sites, showing higher overlap Power to Make or Break your brand
  • 33. Less than 1% engagement
  • 34. Fans Wall Posts •No real time interaction of brand with the fans •Clarify, apologize Important - Don’t leave them unsatisfied
  • 35. Decent number of followers and interactions
  • 36. TVC • Innovative concept to put across the message #Bangon
  • 38. Strategy Listen Offers Engage Services Customer Spread Keep him happy before he is ready to go…
  • 39. Service • Flipkart Express • Time is more important than money • This service will help the customer to get the product on urgent basis • Flipkart will skip the regular process for these orders to reach quickly to the specified destination • Flipkart will charge extra for this service
  • 40. Offers • Your Combo our Price • All shopping websites give offers on pre defined combos • Flipkart will gives chance to the customer to make his customised combo • Ones the combo is made it is submitted for flipkart quote • Flipkart here has a chance to surprise the customer with the price considering the multiple product purchase Encouraging group buying
  • 41. Listen • Strong ORM in place with professional support • Keep track what competitors are doing • Track conversations to fulfill the GAP in the category • Analyse reactions on updates and offers If speaking is silver then LISTENING isGold
  • 42. Engage • Continous online presence through – Owned Media – Earned Media – Paid Media • Disseminate Useful information • Interact with influential people • Engage with all the mentions of brand in digital space • Offers and their promotions to be done creatively Engagement builds long term relationships
  • 43. Spread • QR CODES • Every parcel will have QR code embedded on it • The user can scan the QR code to unlock discount for next purchase • Scanning will convert into Tweet which will have a customized message Just received my @flipkart parcel #Happy Amplification effect
  • 44. The door of opportunity is always marked PUSH. Happy Shopping!! - Thankyou Bhavna Vaja bhavnavaja@gmail.com

Editor's Notes

  1. http://dbgorg00d8r0p.cloudfront.net/wp-content/uploads/2013/02/eSparks-shared-presentation.pdf?9d7bd4