3. 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 75 Crore (FY 2010-11).
• 4600+ employees till December 2011.
• Subsidiaries are “We Read”, “Mime 360” and “Lets Buy”.
4. Management Team
Sachin Bansal
CEO and Co-founder
Binny Bansal
COO 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.
5. Awards by Flipkart
Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year
Award 2012-2013 from Economic Times, leading Indian Economic Daily
• Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's
'India Business Leader Awards 2012' (IBLA).
• Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow
Awards 2011.
• Flipkart.com, secured second position in the List of Cheapest Mobile
Store 2013, compiled by Indian e-commerce observer Zoutons.com.
6.
7. BEGINNING OF
Myntra was established by Mukesh Bansal, Ashutosh Lawania and Vineet
Saxena in February 2007. Myntra’s headquarter is in Bangalore, with regional
offices in New Delhi, Mumbai and Chennai.
It began its operations in the B2B (business to business) segment with the
personalization of gifts, which included :-
• T-shirts,
• mugs
• and caps
In 2010, the company shifted its strategy to becoming a B2C (business to
customer) oriented firm, expanding its catalogue to fashion and lifestyle
products.
Myntra.com is ranked among the top 10 e-commerce companies in India . In the
last 3 years, Myntra has become the most popular destination for personalized
8. • Started: February 2007
• Milestone 1: In October 2007 Myntra received a seed funding from Accel Partners
(formerly Erasmic Venture Fund), Sasha Mirchandani from Mumbai Angels and another
angel investor.
• Milestone 2: In 2008 they touched 1000 daily visitors mark.
• Milestone 3: In 2009 they touched 4000 daily visitors mark and were awarded “Pride of
India 2009 2010” award for exceptional business growth by IDG Ventures.
• Milestone 4: In 2010 Myntra was the Red Herring Global 100 winner.
• Milestone 5: By 2012 February Myntra was shipping 10,000 products every day.
• Vision: To become India’s largest online lifestyle products retailer.
9. Awards by Myntra
• Awarded 'Fashion E-Retailer of the Year 2013' by Franchise India
– Indian E-Retail Awards
• Awarded 'Best E-commerce Website for 2012' by IAMAI – India
Digital Awards
• Awarded 'Images Most Admired Retailer of the Year: Non–Store
Retail' for 2012 by Images Group
• Awarded 'Best E-commerce Partner of the year 2011-12' by Puma
India.
10. •Price paidFlipkart has bought a major stake in
Myntra in a cash and stock deal that
could value the company between
$300-330 million its about Rs
1,800-2,000 crore..
12. Facts
• 100% Acquisition by Flipkart
• Rs.2,000 Crore Valuation of Myntra
• Deal took place on 21 May, 2014
• Largest Ecommerce Deal in Indian History
• Myntra’s Founder will join Flipkart’s Board
• Fun Facts:
• Which E-Retailer has its founders having same surname but not
brothers?
• Which E-company got started by batch-mates at IIT Delhi?
• Which Company got started by ex-employees of Amazon?
• Which Company started off with an initial investment of less than
$8000 leading to a staggering company worth of $1.6billion today?
13.
14.
15. Myntra + Flipkart
• Flipkart’s Reason
Wanted apparel products specialization, deeper understanding of
fashion, aesthetic presentation and experience.
Fashion products to become the most popular category in the near
future.
• Myntra’s Reason
To have a stronger distribution network with the present ratio being at
70:250
To foray into the mobile platform
To increase warehouse capacity by 4 times
16. Continued
• Myntra has started offering 30-40% discount after the
infusion. Also, due to the fact of being funded 5 crores
by Premji Invest
• Simple Strategy – Combine to two entities -> get a
market share a 50% -> keeping the functionality
separate, take it to 60%
17. CHALLENGES
1)Uncertainity of profits-
• Flipkart’s revenue soars fivefold to more than Rs.11K crore, but
expenses jump more than five times to Rs 13.5K crore. (Mint).
• Layoffs and reduced discounts.
• Is Flipkart Going To Be Another Kingfisher (Forbes)
• Burn Rate brought down from $8 million to about $6 million with
($80-85 million still left in the bank.
18. DISADVANTAGES
When company started-It was all about experience but today it’s
just about products.
1)Curbing negative reviews-
Official policy of flipkart-
a) If a review consists only of a product review (Positive or negative): Approve
b) b) If a review consists only of a service feedback (Positive or negative): Reject.
2) Over-dependence on amazon for new ideas-
One might think the similarity between both is limited to the fact that
Flipkart also started their business by selling books just like Amazon.
But flipkart’s Photocopiers run way deeper.
19.
20. ->
Flipkart and Myntra together create the largest
e-commerce stories and together will
dominate the market.
-> online fashion market share
Myntra 30% & Flipkart 20% at present.
Myntra
30%
Flipkart
20%
Others
50%
Market Share
Myntra
Flipcart
Others
FLIPKART – MYNTRA
THE GAME CHANGER
21. 65%
35%
Market Share
Flipkart+Myntra
Other's
-> Become leaders in the category of Fashion.
-> Flipkarts earned 4-5% by electronics & phones category,
F&A will generate double digit margins.
-> 65% market share - online fashion segment
by December 2015.
22. -> Myntra to adopt Flipkart‘s Operational model
- Marketplace Model in order to overcome:
• No need for Warehousing
• No shipping Costs
• Increased Profit Margins
• Expand its reach to new customer.
23. -> The biggest Competitor – Snapdeal,
which is backed by ebay.
-> Discourages the growth pace of Jabong.
-> Walmart’s entry into the indian e -market is imminent.
-> It squares off against “Amazon”
for dominance of India's
fast-growing online retail market.
24. -> India's e-commerce market has seen huge growth in the past few years
as more people log on to the Internet to shop. FlipMynt also needs to
overcome the threat of small online retail markets.