A complete report on flipkart by Karachi University Students

1. CONTENTS:
 Introduction of Group Members
 Introduction of Flipkart
 E-Business model
 E-Commerce
 Market analysis
 Competitors analysis
 Future Recommendations
REPORT BY:
GROUP 7
SYED MOHIB
RIZVI
MUHAMMAD
ASKARI
MOHIB ALI
UMAIR AHMED
SAAD ALI
CLASS:BBA(SP)
SEMESTER:I-(SPRING2020)
COURSE:CAB
TEACHER:MISS AMBREEN R.KHAN
FLIPKART REPORT
MIDTERM REPORT

2. CONTENTS:
 Introduction of Group Members
 Introduction of Flipkart
 E-Business model
 E-Commerce
 Market analysis
 Competitors analysis
 Failures of flipkart
 Future Recommendations
 Key learnings from flipkart

3.  INTRODUCTION OF GROUP MEMBERS:
 My name is Syed Mohib Rizvi, I have done
intermediate in Pre Medical from AKHSS. I have
attended training in English language and in hand
writing skills. I am expert in cricket and in
photography. I am giving home tution from class 1 to
8 in evening. My hobbies are to play games whether it
is online or offline, indoor or outdoor and to do
hangouts. My future plan is to become financial
manager in any multinational company.
 My name is Syed Muhammad Askari, I did my O levels
from BeaconHouse then completed my intermediate
from Fatmiyah Boys College. I have played in various
football tournaments such as PGF and Karachi United
Football tournament. I have also won Bronze medal in
kangaroo Mathematics Competition. I also have a
keen interest in sports and watching movies. I plan to
complete my degree then work in an multinational
company.

4.  My name is Saad Ali Akhtar, I have done my intermediate
in science Pre medical from DJ Sindh Government Science
College I am expert in cricket In a evening I do my online
business on Facebook My goal is to join IMF Or World Bank
after complete my Master.
 My name is Syed Mohib Ali, I have done inter in Science pre
engineering from PECHS education foundation college.I am
certified in English language course from Oxford coaching
centre. I have also done some businesses in previous time. I
am teaching in coaching center in evening from 1 to 2nd
year, i have good business skills i think i can do a great
business , my goal is to become a great business man, after
completing my studies i will follow my family path so after
receiving the degree of MBA i like to join PAK ARMY on High
post.
 My name is Umair Ahmed, I have completed my
intermediate in Science Pre Engineering from PECHS Govt
College. I have attended training in E-commerce
management and in FreeLancing from digiskill. Me and my
friend have created YouTube channel and we running it as
our hobby. After completion of my BBA degree I will proceed
for master’s degree as well and wants to become Chief
marketing officer(CMO) of an organization.

5.  INTRODUCTION OF FLIPKART:
 Flipkart was Founded in 2007
 Its Headquarter is located in Bangalore (India
 Their owners are two brothers Sachin and Binny Bansal who were both alumni of
the Indian Institute of Technology Delhi (IIT) and formerly worked for Amazon
 The company initially focused on online book sales, before expanding into other product
categories such as consumer electronics, fashion, home essentials & groceries, and other
lifestyle products.
 Initially Bansals invested $5600 on developing this site.
 It is an online shopping service which has a revenue of INR43,615 crore (US$6.1 Billion).
 It is ranked 104 globally and 6th in India by Alexa Rank.
 Flipkart's reported sales were INR 40 million (US$560,000) in 2008–2009,INR 200
million (US$2.8 million) in 2009–2010 and INR 750 million (US$11 million) for 2010–2011.
 The service competes primarily with Amazon's Indian subsidiary, and the domestic rival is
Snapdeal. As of March 2017, Flipkart held a 39.5 % market share of India's e-commerce
industry.
 Flipkart had raised a total of US$3 billion, after over 12 rounds and 16 investors.
 Sachin Bansal was awarded Entrepreneur of the Year 2012–2013 from The Economic Times,
a leading Indian economic daily newspaper.
 In September 2015, the two founders entered Forbes India Rich List debuting at the 86th
position with a net worth of $1.3 billion each.
 In April 2016, Sachin Bansal and Binny Bansal were named to Time magazine's list of The
100 Most Influential People.
 Walmart won the bid in 2018 for 16 billion dollars and earned 77 % share of the company.
 Their CEO (Jan 2017 – Present) is Kalyan Krishnamurthy
 Currently their employees are more than 30,000.
 The valuation of their business in 2019 was US$20 Billion.
 The company has customer base of around 160 million people.
 Flipkart is offering over 150 million products across 80+ categories.

6.  E-BUSINESS MODEL:
Its business
model is
divided into
three
factors:
Flipkart’s
key
activities
Flipkart’s
customer
segments
Flipkart’s
value
proposition

7. 1) FLIPKART’S KEY ACTIVITIES:
 The following are the major key activities that are conducted daily that help to deploy all the
operations of Flipkart:
 To Design, develop and optimize its ingenious online platform specifically for electronic
commerce products for the Indian Regions.
 To Manage the supply chain network of its products including logistics, warehouses, etc.
 To Hire, train and retain the workforce.
 To Product catalog– maintain product catalog with images and videos.
 To Build and manage sellers’ network.
 To Establish a partnership with distributors and other manufacturers.
 To do Marketing & Sales promotion including developing an effective Pricing strategy and
promotional offers and discounts during shopping peak seasons and holidays.
 To Establish a secure payment portal.
 To Establish Customer support (24 – 7) via phone, online chat, and email.
2) FLIPKART’S CUSTOMER SEGMENTS:
 MASSIVE URBAN MARKET WHO PREFERS TO BUY ONLINE:
 The Flipkart has grown into an enormous platform for a vast marketplace in India for the
time being.
 Currently, Flipkart marketplace is only open and available for deliveries to be made
anywhere within India.
 DISCOUNT LOVERS & PROMOTIONAL OFFERS FOR CUSTOMERS:
 Flipkart offers its loyal and new customer(s) promotional offers & special pricing during the
holidays.
 They also provide branded products at reasonable prices – This is also a great way to ensure
diligent treatment towards loyal customers and help further introduce its products to
potential marketplaces.
 BOOK LOVERS MARKET TREND ANALYSIS:
 Flipkart originally started selling books and now have expanded to major electronics at a
massive scale for adults and children.
 CUSTOMERS WHO PREFER CONVENIENCE AND ACCESSIBILITY:
 Flipkart products are easily accessible through their official website.
 Flipkart products can be accessed through Flipkart’s software applications programs.
(Google Play & iTunes)

8.  CUSTOMER TARGETED BY PRODUCT:
 Flipkart’s most success is driven by the smart analytics that is evaluated for the market
places.
 Its social media platforms are another set of sources that help the analyst identify what
consumers are into nowadays, and what is the recent trend.
 Flipkart targets those products that are in high demand to potentially make a sale.
3) FLIPKART’S VALUE PROPOSITIONS:
 EXCLUSIVE PRODUCTS LAUNCH:
 Electronics
 TVs & Appliances
 Baby & Kids
 Home & Furniture
 Sports, Books & More
 UNIQUE FEATURES:
 Customer Login & Signup area
 Sell on Flipkart as a Seller
 24x 7 Customer Services
 Advertise with Flipkart
 Software Application (Dual Interface)
 Flipkart Assured– badge for high-quality products and faster delivery.
 CONVENIENCE:
 Before the Flipkart launch, India consumers used to purchase such goods directly from
Amazon, Ali Baba, Snapdeal and other competitive platforms that offer almost the same
types of products and services.When Flipkart launched with competitive products with low
prices, the Indian consumers’ interest rose in the local Indian Amazon, i.e. Flipkart.
 WIDE SELECTION:
 Users are able to find just about any type of product, whether it is for the holidays,
searching for a gift or just doing some general shopping.
 Flipkart Users are able to search through thousands of different sellers and review the
listings that they have.Each listing (product) is listed with product specifications and details.
Users are able to search through category.

9.  CHEAP PRODUCTS &HIGHLY TRUSTED:
 One of the best things about Flipkart is that fact that they offer their clients to review the
listing from these sellers and other relevant shops that offer their products at the lowest
prices as compared to the markets.
 Because of their policies, due diligence, and the positive feedbacks, Flipkart is highly trusted
and recommended by customers who have used the Flipkart services before.
 Trust credibility factors help to increase business potential revenue streams by reference or
through retention conversions.
 E-COMMERCE:

10.  FLIPKART’S MONEY INCOME:
 Flipkart works on business to consumer (B2C) type of E-commerce:
 BUSINESS TO CONSUMER (B2C):
 It is the model taking businesses and consumers interaction. The basic concept of this
model is to sell the product online to the consumers.
 B2C is the direct trade between the company and consumers. It provides direct selling
through online.
 For Example; if you want to sell goods and services to consumer so that anybody can
purchase any products directly from supplier’s website.

11. 1) SELLERS, MANUFACTURERS &DISTRIBUTORS OF PRODUCTS:
 Flipkart massive inventory system is supplied by some of the prime titans in India:
 SELLERS:
 Sellers that sell their products or services via Flipkart through means of operating a “store-
presence” on the Flipkart platform.
 Flipkart is responsible for delivering the goods. However, the supply chain (products or
services) are directed by the supplier/sellers’ end.
 The sellers are responsible for fulfilling the orders that they Sellers claim to sell/promote
.
 PAYMENT PARTNERS:
 Flipkart has partnered with Banks, Credit card, e-wallet companies to offer secure payment
service on its platform.
2) PAYMENT SYSTEM:
 Flipkart platform offers multiple methods for its customers to pay for their orders.
 CASH ON DELIVERY:
 The concept that was pioneered by Flipkart has changed the game of e-commerce in Indian
Market. A customer that would like to place an order on COD can place orders that do not
exceed 50,000 Indian Rupees (Approx. $700)
 CREDIT/ DEBIT CARD:
 During the sign-up phase, clients are required to provide either a credit card or debit card.
Such cards can be issued from India or the other 21 countries that Flipkart accepts to do
business with.

12.  BANK’S INTERNET BANKING FEATURE:
 Customers have the option to sync their Flipkart accounts with their local banking facility to
process payments.
3) FLIPKART REVENUE STREAMS:
 COMMISSION STRUCTURE:
 Flipkart makes a percentage cut whenever someone sells their product to a customer.
Commissions are usually deducted from the original transaction value prior to paying out
the seller who sold the item.
 The commission structures vary from item to item, they are categorized in the following;
 Low Margin branded categories: 2-5%.
 High Margin branded categories: 10-25%.
 OWN SHIPPING SERVICES – EKART:
 It is a department that makes all the deliveries of goods to the concerned consumer.
 It costs 50 Indian Rupees for items that are less than half a KG (weight).
 SHOPPING FEE (FLIPKART ASSURED PROGRAM):
 Shopper saves more by availing free deliveries on orders that exceed the value of 500 Indian
rupees. The saved amounts usually are accumulated and then spent again at Flipkart.
 FLIPKART’S E-COMMERCE MAP:

13.  FLIPKART IS SET TO OVERCOMEAMAZON BY YEAR 2023:
 MARKET ANALYSIS:
 MARKET SHARES:
 In 2018, Walmart bought a $16 billion majority stake in Flipkart Online Services Pvt. Ltd.
giving it a foothold in the country's e-commerce market, which is set to grow to $200 billion
by 2026. That figure is up from $48.5 billion as of 2018, according to the International Trade
Administration.
 Flipkart is the largest online retailer in India, with a 31.9% market share in 2018, followed by
Amazon at 31.2%, according to Forrester. After adding the market share of its fashion
specialty sites Myntra and Jabong, Flipkart controls a 38.3% market share.
 India's largest e-commerce marketplace Flipkart is looking to extend its lead over rival
Amazon during this festive season by targeting a 70 per cent market share in the domestic
online shopping space.

14.  With a $4-billion war chest, Flipkart is open to burning cash to buy a significant portion of
the existing market share and continue its lead over Amazon. The mainstay of Flipkart's
strategy is to push the sale of smartphones- a category that has not been providing
monetary benefits to the e-commerce firms so far.
 Flipkart claims most of the heavy lifting will be done by the smartphone category in which it
aims to capture around 75 per cent of the market share, among online sellers. The category
will drive 50 per cent of its overall GMV during the next one month, while supporting
accessories and electronics are expected drive another 10 per cent of its overall GMV.
 The company had earlier claimed that one out of two smartphones would be sold on its
platform during the upcoming festive month. Typically, around 67-70 per cent of
smartphones is sold offline, while the remainder is sold online. Analyst Counterpoint notes
that Flipkart controls around 50 per cent of the online smartphone market and 15 per cent
of the overall market.
 Fashion and large appliances will be the other big contributor for Flipkart, with 15 per cent
of its GMV being driven by these two categories. While fashion is a smaller segment than
smartphones in terms of GMV, the category is expected to drive the maximum number of
stock keeping units (SKUs) for Flipkart at 55 percent.
 Amazon had claimed that it has already overtaken Flipkart on every metric possible. Both
companies have been participating in a war of words, asserting their dominance over the
other.While Flipkart's aim is to beat Amazon, a third competitor has emerged in the form of
Paytm.
 FINANCE:

15.  REVENUE:
 FLIPKART THE LARGEST LEADING FIRM OF E-COMMERCE IN
INDIA:

16.  COMPETITOR ANALYSIS:
Overall there are several competitors of flipkart, but majorly there are six competitors:
1) AMAZON:
 Amazon is arguably the world’s largest online shopping store. It offers a wide array of
services including online retail, consumer electronics, multimedia content and computing
services among others. It is ranked as the leading online retailer in the US generating an
estimated net sales of close to $140 billion in 2016.
 A considerable part of its revenue is generated from the online sale of electronics and other
related goods. It is also one of the most valuable brands in the world with approximately
400 million customers with active accounts globally.
 Amazon also offers its services through mobile App and digital products like music and
videos. It currently has over 370,000 employees worldwide. Amazon is the topmost Flipkart
competitor due to its increasing market share.
2) ALIBABA.COM:
 Alibabais another giant company that offers online commerce services. It was founded in
1999 as a simple B2B online shopping portal but later grew to become the biggest e-
commerce portal in Asia offering B2B, C2C, and B2C online services. The total revenue that
this company generated in 2017 financial is estimated to be around 158.3 bn RMB, an
equivalent of over $24 billion.
 As a leading e-retailer in Asia and also penetrating other parts of the world. Alibaba has
employed over 51,000 employees to help in facilitating various processes involved in buying
and selling of different products on the platform.

17.  Astonishingly, Alibaba has been able to receive a total number of record an average of
approximately 812 million orders per day in the entire 2017.
3) SNAPDEAL:
 Snapdeal is another Indian based e-commerce company that offers online retail services. It
was founded in 2010 but has risen to become one of the biggest e-retailers in India.
 It has a broader assortment of products estimated to be over 35 million obtained from
more than 125,000 retailers and brands, both local and international.
 Over the period of its existence, it has been able to acquire some businesses such as
Grabbon.com, esportsbuy.com, and Doozton.com, which has made it possible to expand
and become a solid competitor in the e-retailing sector, especially in India.
4) PAYTM:
 Paytm is an Indian-based online payment and e-commerce Company that offers allows the
users to make payments upon purchase of a wide range of products including fashion items,
electronics, home appliances and digital products among many more.
 Paytm is an abbreviation for Payment through mobile has over 13,000 employees working
in different divisions hence making the user experience fast, secure and efficient
 It was founded in 2010 but operates as a subsidiary of One97 Communications.
Paytm is increasingly becoming a strong competitor in this industry particularly in India,
where it has over 3 million merchants in different parts that operate offline. Because of
complete backing by Alibaba, Paytm is the strongest upcoming Flipkart Competitors.
5) SHOPCLUES.COM:
 Shopclues is an online platform that offers consumers with the opportunity to shop and
make payments for different types of products. It was founded in 2011, but it has improved
its services and brand visibilityto become among the highly regarded online marketplaces in
India.
 It deals explicitly with home appliances, kitchen wares, electronics and fashion products
that are owned by local and regional brands.
 It surpassed the half a million mark in regards to merchants in the platform in 2016, which is
apparently seen as one of its most significant milestones since it was established. Shopclues
employs more than 11,000 workers.
6) EBAY.INC:
 Ebay is an American multinational e-commerce corporation based in San Jose, California,
that facilitates consumer-to-consumer and business-to-consumer sales through its
website.eBay was founded in the autumn of 1995, and became a notable success story of
the dot-com bubble. eBay is a multibillion-dollar business with operations in about 30
countries, as of 2011.

18.  The website is free to use for buyers, but sellers are charged fees for listing items after a
limited number of free listings, and again when those items are soldMillions of buyers and
sellers have made eBay the world's largest and most popular Internet site for individuals
and businesses to exchange goods.
 By 1999 eBay had 5.6 million registered users and listed over 3.1 million items for sale; by
2004 there were an estimated 65 million registered users from 150 countries, 971 million
items for sale, and gross merchandise sales hit $15 billion.It also provides users with its
own online pay service, PayPal Inc. As eBay's revenues continue to grow, the sky seems the
limit despite competition from flipkart and amazon and an ever increasing number of
imitators.
 FALURES OF FLIPKART:
Flipkart had done many mistakes which causes them loses in business and inclusion in history
failures of flipkart.All failures which flipkart had done till date are mention under in a picture.

19.  FUTURE RECOMMENDATIONS
 Based on past purchases & transaction history Flipkart should get automatic Product
recommendations which in turn will lead to increase in online shopping.

20.  Most of the corporate houses in India offer Festive shopping cards for their employees as a
part of corporate engagement. Flipkart need to launch such a festive shopping cards, such
as Diwali , New Year, Bonus, Loyalty, etc
 To maximize customer lifetime value for long term run Loyalty Programs for existing high
value e-consumers should be launched.
 Currently products are couriered directly without route planning which results in cost to e-
retailers. Google maps should be used for customer location finding.
 Multiple order delivery of single e-consumer is not delivered by single person. It is delivered
by different delivery boys. Multiple delivery planning should be done in order to save cost
of delivery & time
 Multiple order delivery of single e-consumer is not delivered by single person. It is delivered
by different delivery boys. Multiple delivery planning should be done in order to save cost
of delivery & time.
 KEY LEARNINGS FROM FLIPKART:
 We all know that Flipkart tops the chart in the race of biggest E-Commerce startup in India.
With more than $1.8 Bn in investments from 11 Super big investors, here are some lessons
you should learn from Flipkart.

21. 1) THINK BIG, START SMALL:
 I am sure that you all know the brief journey of Flipkart. It started as a online Book store.
Sachin himself delivered the books if anyone bought it.But boy did they just thought of
being a biggest online book store? Nope, they had a bigger vision, they wanted to be the
biggest player of all things good one wants to buy and can buy online. But did they start as
all things at one place way? Nope. They started pretty small to become what they are now.
2) PASSION AND PERSISTANCE:
 The world needs you to keep at what you are doing. Its so easy to give, any one can give up,
giving up is easy but you are good than that. The Flipkart team sure did face problems, but
never gave up and you should never too.
3) ALWAYS EXPERIMENT:
 Flipkart has always been great at experimenting things. They never will stop doing it, and no
one should. Thats the beauty of experiments, you learn and grow through them. One of the
biggest experiment they did was the BBD (Big Billion Day) which a many of you criticized,
but if you look at it closely, think of how amazing it was as a startup. They experienced
1Billion hits on their servers that day. Saw a sale of over $100 Mn in that single day (Most
startup even fail to reach the number in a year) and still a lot of people bought what they
wanted and they got it.Experiment, it doesn’t matter if you loose or win through that
experiment, you will learn a Lot From experiments.
4) THINK GLOBALLY BUT ACT LOCALLY:
 Flipkart is focused on the Indian market, but the competitive battle for sellers, buyers and
talent is fought globally. The team adopted global best practices like Big Billion Day, which
was inspired by ideas from the U.S, China and Romania.
5) LEARN FROM FAILURES:
 Way back in 2012 (even after some rounds of funding) they faced a failure, am not sure how
many of you know about it, but they started a Music store called Flyte. Somewhat similar to
what iTunes is, but with a Indian touch. They had a prepaid wallet in it and you can buy
songs through it. But after trying to scale it for a year, in 2013 June they shut it down. This
shows that even if you fail, just learn from those failures and continue working towards
your end goal, your vision.
6) DOMINATE:
 One of the biggest lesson and quality of Flipkart being a industry leader is that it learned to
Dominate. Domination is extremely important. We are not saying that you should dominate
in a arrogant way, but dominate your industry and dominate the competition.
And above all, never give up. Never never never ever, never give
up.You will win.
AND ABOVE ALL, NEVER GIVE UP.NEVER NEVER NEVER EVER,
NEVER GIVE UP. YOU WILL WIN.