Flipkart potential

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Transcript of Flipkart potential

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Roadmap

Roadmap

History and growth

E-Commerce Founded in the year 2007Mr. Sachin Bansal and Binny Bansal

Registered in Singapore Headquartered in Bangalore, Karnataka

History and growth200720082009201020132014Sachin and binny Left Amazon;Flipkart was foundedWent online;Started as book retailerAccel partners(India) invest $1 millionTiger global invest $20 millionLaunched seller marketplaceAcquired myntra

LARGEST ONLINE RETAILERS IN INDIA14 product categories & with a reach in around 150 cities3000 sellers on its platform and delivering 5 million shipments per monthPAYMENT METHODCash on delivery, credit or debit card transactionsNet banking, e-gift voucher and card swipe on deliveryFLIPKART SELLS GOODS WS Retail Other third-party sellersLAUNCHED ITS OWN PRODUCT RANGEDigiFlipCitron

Business model

01020304Inventory-Led Model [FLIPKART]Combination of 2Created online platformThought behind adopting modelInventory-led model requires 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.

Business model Promotional Techniques

01020304NewspapersTelevision mediaWeb and a personalized banner adsE-mail promotions with incentives like discounts to buy

War is on for Indian Market Share

Product Offering Comparison between Flipkart.com and Amazon. In

Flipkart has about 7 percent more SKUs than Amazon

Product Offering Comparison between Flipkart.com and Amazon. In

For Laptops category, the gap is wider with Flipkart having a 45percent bigger catalogue size

Product Offering Comparison between Flipkart.com and Amazon. In

In Cameras Category, Amazon leads the race with 284 SKUs against Flipkarts 256 SKUs.

Supply Factor Comparison: X-Factor-Vendor Network &Value Management

Flipkart

Supply Factor Comparison: X-Factor-Vendor Network &Value Management

Third-party vendorHowever, 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.

Challenges Faced in October 2014Flipkart.com

Intention to increase the popularity by targeting Billion sales, a day long shopping event on 6-10-2014 & promised greatest saleever in India

Challenges Faced in October 2014Flipkart.comAs 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.

Problem Faced in October 2014Flipkart.comMany users could not place the order because the servers were not capableMany users who placed orders received e-mail informing them that the order stand as cancelledMany 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.

Growth EnginesRuralIt is expected that the percentage of Internet users from rural locations will grow to 40-50 percent by 2018, up from 29 percent in 2013.

MobileIt is estimated that mobile internet users will make up between 70-80 percent of Indias total online population, up from 60-70 percent in 2013.

E-commerceMorgan Stanleyexpects 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.

InfrastructureInfrastructure

The Internet related contribution to Indias GDP in 2013 was 3.2% at $60 billion, and is expected to rise to 4.6% to $160 million by 2018.

Future Prospects: Flipkart

Flipkarts plans 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 years time, & to a few lakhs in 4 to 5 years.Around 40 percent of Flipkarts online traffic now comes from Mobiles. It thus wants to add more features to its mobile shopping app to increase customers satisfaction& loyalty.

Future Prospects: Flipkart

Trying to develop its IT infrastructureAbility to recommend its buyersConduct a live survey

Bibliographyhttps://www.youtube.com/watch?v=7TllByUcuUYhttps://www.google.co.inhttp://www.worldwidejournals.com/ijar/http://www.slideshare.net/?sshttp://www.business-standard.com/article/companies/india-set-to-become-world-s-fastest-growing-e-commerce-market-115020601227_1.htmlhttp://www.livemint.com/Money/Zb6XkybJ8neZoVowqCOqeP/Indias-ecommerce-potential.htmlhttp://www.nextbigwhat.com/india-digital-economy-2020-297/

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