Flipkart Case Study Essay

barefacedkart.com is a story of the two young information playing system science graduates brothers Sachin Bansal (26) and Binny Bansal (25) from IIT-Delhi 2005 batch who left their jobs in amazon.com (an American multinational E-commerce comp each) in 2007 with a dream to ferment Indias top retail Outlet In E-commerce Industry. They came up with an idea to sell takes including novels online. all overturn karts clock timeline shows it was to start as a price comparison platform, but there werent enough e-commerce locates to compare. So, some(prenominal) the Bansals, who were colleagues at IITDelhi, and then at Amazon.com, thought, why not start an e-commerce site? That was the genesis of somerset kart. From an initial investment of Rs. 4 Lakh this So they started to thrust a website, although it was a larger task to grow a website with 50,000 titles but wouldnt be impossible for IITians so finally they scored which took about a month and a half to start a basic workin g website with 50,000 titles and grown our catalogue to over 1 Lakh available titles. On 5th September 2007 they launched the companys URL i.e. confusekart.com for the first time in just an apartment room. . The website was launched on 15th Oct 2007. Flip kart is an Indian ecommerce company headquartered in Bangalore, Karnataka. From a start-up with an investment of just four lakh rupees, Flip kart has grown into a 100 million gross online retail giant in just five years.Flip kart focused on online sales of books initially. The process involved in online shopping for books has g angiotensin converting enzymeness through drastic changes and is more secure right now. A customer could use our user-friendly web page to place an order, once the order is placed online the book is taken off the online inventory. In case of unavailability it go away be purchased from a supplier. The Book will then get packed and couriered on the same day. Flip kart is currently tied up with just abou t 12 courier profit providers. Flip kart also use Indian Postal services to drop dead areas without courier providers. Logistics play an important role in our business. But it later expanded to electronic goods and a variety of other productions. The key differentiators are Availability of variety of goods of various categories, online shopping experience on the site and post sales experience. away from this the Cash on Delivery service is also one of the main reasons which keep it apart fromother E-commerce portals. The cash-on-delivery model adopted by Flip kart has proven to be of great significance since credit card and net banking penetration is very low in India. . Flip kart offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, and Cash on Delivery. IDEABinny Bansal and Sachin Bansal axiom a good opportunity in the market around e-commerce. Also, regular job was not as challenging. The excitement and satisfaction that comes with buildi ng something of a long lasting jimmy is addictive enough for them to march on this. They started flipkart.com because they themselves felt the need for a good online book store. E-commerce sector is one of the toughest to get into in India. They call back that they can make a difference here. They wanted to create something which has a long lasting value and which we can be proud of. An attractive neutral name is what they looked for. Good domain names were gruelling to get. They were looking at at names that did not just speak of books alone, but one that could suit any category of Products that we may add in future. Also, they wanted to have a catchy name with advanced recall potential. Flip kart could in simple terms mean Flipping things into your Kart.CURRENT POSITION OF FLIP KARTFlip kart started with selling books. In 2010, they added to their catalogue media (including music, movies and games) and mobile phones and accessories. In 2011, product launches included cameras , computers, pens & office supplies, computer accessories, syndicate and kitchen appliances, personal care, health care, gaming consoles, audio players and televisions. In 2012, product launches includes health & beauty products, Life dah products which includes watches, belts, bags & luggage. In November 2011, Flip kart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their Flip kart account using credit or debit cards, and can subsequently be utilised to make purchases on the site, as and when required. From June 2012, Flip kart allowed people to buy toys, posters and from October 2012, Flip kart entered into apparel retailing.ACQUISITIONS MADE BY FLIPKART.COM2010 WE demonstrate, social book discovery tool2011 MIME260, a digital content platform com2011 Chakpak.com is a bolly wood news site that offers updates, news photos and videos 2012 Letsbuy.com is Indias second largest e-retailer in electronics. Flip kart has bought the company for an e stimated US$25 million.ACHIEVEMENTS MADE BY FLIPKART.COMFlip kart owners have been featured in Business Today as one of the top 25 start-ups of 2009.They have been also nominated for Ernst and young award for the best entrepreneur of 2010. Apart from that they have been featured multiple times in start up news as comfortably as mainstream news. Today, they are recognized as number one in the industry. As a evidence to the superior customer experience, the company has consistently recorded repeat purchase rates of more than 50%. They have also managed to get a registered buyer in every small town and urban center and hope to constantly improve their service standards. Flip karts reported sales as follows-IN FY 20082009- 40 millionIN FY 20092010- 200 millionIN FY 20102011- 750 millionIN FY 20112012- set to cross the 5 billionAs Internet usage in the country increases and people get accustomed to qualification purchases online. Flip kart projects its sales to reach US$1billion b y year 2014 and is aiming at generating a revenue of 50 billion (US$1billion)2015. Ranks among the countries top 30 website.Customer base of more than 2 million.30 shipment on daily basisDaily sales have increased to 2.5 crores.POPULAR PRODUCT CATEGORIES1. Clothing T-shirts, Jeans, Sports Wear, Trousers, and so on2. Footwear Casual Shoes, Formal Shoes, Flats, Heels, etcetera3. Beauty & Personal Care Trimmers, Shavers, Soaps, Brushes, etc. 4. Mobiles& Tablets Samsung, Micromax, Nokia, Sony, etc.5. Laptops & Accessories HP, Dell, Sony, Lenovo, penitentiary Drives, etc. 6. Books Literature & Fiction, Biographies, Novels, EBooks, etc. 7. Baby Care & Toys Vehicle & Action Toys, Stuffed Toys, Diapers, etc. 8. Sports & Fitness Cricket, Football, Basketball, Badminton, etc.TOP BRANDS1. Clothing Adidas, Puma, Reebok, Lee, etc.2. Footwear Puma, Adidas, Reebok, Fila, etc.3. Watches Casio, Fastrack, Citizen, Timex, etc.4. TV Sony, LG, Samsung, Philips, Panasonic, etc.5. Sports & Fitness Speed o, Nivia, Yonex, Cosco commerce MODELCreating and maintaining a person-to-person trading community Function as a value added facilitator come through a supportive infrastructureZero inventory & without having traditional sales forceProfit centers home(prenominal) businessInternational business andPaymentLargest online trading forumCompelling and entertaining environmentEstablishing cuss & safety programsCost effective and Convenient tradingStrong community affinityAn intuitive user interfaceORDER LIFECYCLEGet the itemProcure from Supplier (Just-in-time) (Supplier selection)Keep Inventory (Inventory Prediction, Planning)Clean & visit for sanityPages missing, MRP printed lesser than told to youPack the itemTamper proof, weather proof, breakage proofSelect courier & hand-overCourier performances vary across regions a LOTGet tracking id & communicate to customer recap for timely deliveryTake care of returns (faulty product/user changes their mind) Minimize returnsMARKETING STRATEGYFli p kart 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 authorized Face book page has close to 9 lakh 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.EXPANSION PLANSThey aim at 10 times growth and look at $ 1Billion sales by 2015. They will look at bigger investments in their supply grasp and technology. Investment will be made in large warehouses and increased automation of their process, so that the product is not delayed. They intend to enter in to various new categories and expand their current categories as well. Everything keep out for groceries and automobiles w ill be available on Flipkart in future. To go further in the value chain, Flipkart is looking at associations with a larger number of suppliers and partners, both nationally and internationally.PERSONEL ANALYSISGreat customer serviceEasy to use website, hassle free payment systemCash on delivery/ measure on delivery mode of paymentFocused on user experienceADVANTAGESAttract users to the siteProvide selectionMake it easy to Find & Discover productsProvide details to evaluate a productDescription, Specifications, UGC.Price wellHave to be competitive to the most obvious optionsProvide well-provided payment optionsOnline, CODConfirm paymentCONCLUSIONThey started off in 2007 by setting up three centres across India without funding. Six months ago, they reached number one status. They are also four times bigger than their nearest competitor. The company started off small today they have grown ten times over the last one year and aim to touch the Rs 400 crore mark by March 2013.