E-Trading

Presented by

I.V.Muralikrishnakanth

A.M.Jaysree

Contents

• Intro• Founders• Flipkart Story• Evolution of Logos• Funding• Acquisitions• Why flipkart?• Order Lifecycle• Conclusion and References

Intro• Flipkart went live in 2007 with the objective of making books easily available to

anyone who had internet access. They’re present across various categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics – and still counting!

• With over 11.5 million book titles, 11 different categories, more than 2 million registered users and sale of 30000 items a day, they’re one of the leading e-commerce players in the country.

• Their success is largely due to their obsession with providing customers a memorable online shopping experience. Be it Cash on Delivery, a 30-day replacement policy, EMI options, free shipping - and of course the great prices that they offer. Then there's dedicated Flipkart delivery team that works round the clock to personally make sure packages reach on time. For now they're present in 27 lucky cities, but don't worry, plans are underway to spread to many others.

Founders

Sachin Bansal and Binny Bansal

About Founders

• Sachin Bansal• CEO 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

About founders

• Binny Bansal• COO and Co-founder

• 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.

• A big fan of Salman Rushdie , Binny is also passionate about soccer and NBA. An active sportsman, he used to captain his school basketball and soccer teams.

Flipkart Story

• Flipkart,was established by Sachin Bansal and Binny Bansal both are alumni of Indian Institute of Technology Delhi and worked for Amazon.com before quitting and founding their own company.

• Initially they used word of mouth to popularise their company. Within two years through word of mouth of their services, Flipkart became one of the top 100 Indian sites and was credited for being India's largest online bookseller with over 10 million titles on offer.

• Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding.

• Flipkart employs over 3000 people.

Contd..

• Also it had experienced 2 million unit sales and 4 million unique vistors per month with sales growing at 25% per month, eyeing a $50 million run rate as reported by TechCrunch.

• It’s been about a year since Flipkart started moving from being a pure bookstore to selling mobiles/DVDs etc. Since then, Flipkart went for a major brand makeover, making it look more ‘upmarket’.

• There has been large newspaper ads, TVCs and a lot of web ads.

History Started with 2 bedroom apartment in bangalore. Applied the consignment

model initially. As investments came, built warehouses in different cities to cater the demands.

Initial funding by themselves. Later funding come in mixed ways.

Setting up Technological part like  Catalog Management System, Vendor Management System, Customer Service Consoles-easy way.Setting up company, getting a bank a/c, tie-up with distributors and sellers-hard way.

Initially started word of mouth advertisement- blogs, startup meets, book fairs.

Only two rivals- IndiaMart and RediffBooks -they sold a wide variety of products, but quality and logistics was not up to the mark.

Evolution of Logos

Mission, Vision, Objective

MISSION

“Providing a delightful customer experience”

VISION

“To become Amazon of India”

OBJECTIVE

“Making books easily available to anyone who has internet access”

Funding

• Initially funded by the Bansals themselves with 4 Lakh(INR).

• Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010).

• Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150 million to $200 million in Flipkart, according to sources.

Acquisitions

• 2010: “We Read”, a social book discovery tool..

• 2011: Mime360, a digital content platform company.

• 2011: Acquired the rights to Chakpak’s digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.

Screenshot..

Why flipkart?

Discoverability• SEO   • “We Do Not Sell Used Books” tagline.

 

“We DO NOT sell old books or used books. All the books listed at Flipkart.com are new books.

The books listed at Flipkart.com are NOT available for free download in ebook or PDF format....” 

Why flipkart?

Payment• cash on delivery.,..• auto redirection to banking site... 

Inventory...• Not like only when an order is placed they get the

product. The products are all there in the godown. When u order u get it after the specified number of days. Strictly abide by “never promise something that u don't have” rule.

Why Flipkart?

Delivery.. • Most similar looking envelopes are never delivered

thinking that it is a marketing package and no one would track it. They would be willing to bargain on rates but would never say anything about the service. Paying a premium may not solve the problem always.

• Flipkart is seen delivering through their own delivery boys in Bangalore and at times within 12hrs from order.

• Flipkart is looking to build its own courier company. The recent $20Mn funding from Tiger Global was only part of a larger sum they are known to be raising.

Why flipkart?

• Flipkart has offices, warehouses and customer service centers across India. Warehouses are located in the following cities, often near airports.

• Bangalore• Chennai• Delhi• Hyderabad• Mumbai• Noida• Pune• Kolkata

Contd…

• Flipkart has added a prepaid Wallet feature to its e-commerce platform that allows shoppers to store money on the site and use it to purchase items, without having to reach for their credit card for each transaction, according

to a MediaNama report.

Contd..

Order Lifecycle

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

• Provide selection• Make it easy to Find & Discover products

• Provide details to evaluate a product Description, Specifications, UGC Price well Have to be competitive to the most obvious options Provide convenient payment options Online, COD Confirm payment

Order Lifecycle(contd)

• 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

Uniqueness

• No glamour .• Your competition is on SP road Chandni Chowk and koti.

Dealing with suppliers:

> Signing agreements with suppliers

> getting them to share data feeds

> getting them to fulfill your orders• Dealing with Payment Gateways• Setting up & operating large warehouses• Dealing with Couriers• People may not be as forthright & honest

Conclusion• Flipkart, the first billion dollar Internet company from

India(going by 2015 estimates )is by far the leading online store in the nation.

• Now that Amazon is reportedly entering India in early 2012, this news becomes even more significant, considering that Amazon has previously, and unsuccessfully, tried acquiring the company, with Flipkart demanding a very high buyout price.

• With online retail industry in India pegged to reach $1.5 billion (2015), sources suggest that e-commerce is just hotting up in India and we may soon seen many more Internet companies achieving similar success.

Sachin’s tip for the coming entrepreneurs

"Don’t start out alone, it helps to have a co-founder when

things are not going your way. Perseverance and hard work is very

important. The core of any business is to earn money. You have not done

your job well until you find a stranger who is willing to open his/her wallet

to give you money for the services/products that you a offering. The next

step after that is to focus on scaling it up well."

References

• Wikipedia

• The Next Web

• Flipkart

• Aside