FlipKart

Flipkart.Com : India’s Leading E-Portal

Business

“Flipkart- Amazon Of India ”

- Manidhar Chowdary A

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”.

Management Team

Sachin BansalCEO and Co-founder

Binny BansalCOO 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.

“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

FLIPKART

Normal people (for gifts, etc.)

Students/Academicians and

Corporate/executives

Book lovers

• Bad experience of Indian with online shopping in the past-1. Poor experience with the product2. Late shipping3. 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

• 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

• 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!

• 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

Flipkart’s Success mantra!

• Great customer service

Flipkart users are more satisfied than that of their competitors. Great customer service hasbeen 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 happenthrough this mode. Cash on delivery created trust in the minds of Indian customers whowere always weary of making payments online.

• Focused on user experience

Every other e-commerce site, tried to cram the maximum of amount of information possibleinto every single page where as Flipkart focused on providing only the relevant info.

• 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…

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

Order Lifecycle

• Attract users to the siteFamily, Friends, SEO, SEM,WoM, Brand Building

• Provide selection

Make it easy to Find & Discover products

• Provide details to evaluate a productDescription, Specifications, UGC.

• Price wellHave to be competitive to the most obvious options

• Provide convenient payment optionsOnline, COD

• Confirm payment

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…)

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.

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

► 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

►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

PLACEPHYSICAL DISTRIBUTION

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

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

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

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