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albums starting at 6 on the store. A purchased song can only be downloaded maximum 4 times on an internet
enabled device. Flyte garners 600K downloads in 5 months
In 2012, product launches includes health & beauty products, Life style products which includes watches, belts,
bags & luggage.
As far as future is concerned, Flipkart will be looking at bigger investments in our supply chain and technology.
In terms of sales they were earlier looking at a figure of $1bn by 2015. But this can be achieved in the next one
to two years. Flipkart will also be looking at entering new categories. Additionally, Flipkart Self-Delivery, which
currently operates in 27 cities, will be further scaled up.
In a landmark move, NH7.in, a platform to discover independent music and leading-edge culture created by
Only Much Louder (OML), has partnered with Flipkart.com to create an exclusive section dedicated to
independent music on the Flipkart digital music store, Flyte. The store will enable independent artists across
the country to sell their music digitally to their fans.
The NH7.in store on Flipkart will be a game changer. Up until now, independent artists had limited avenues to
retail their music to the ever-growing fan base for indie music. The NH7.in community represents the largest
group of indie music lovers in the nation. Now, along with promoting independent music, NH7.in creates an
avenue for artists to sell music directly to their fans, which is the crucial next step for independent arts to grow.
In addition to this, four million monthly users of Flipkart will have access to a wide selection of independent
music from India and around the world at their fingertips.
In July 2012 Flipkart announced the launch of its in-house brand Digiflip. Digiflip is a brand of digital
accessories with products like laptop bags, laptop sleeves and camera bags among others
3. Acquisitions
The following are the acquisitions by Flipkart
2012: Letsbuy.com
Letsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company for an
estimated US$ 25 million.Letsbuy.com had been closed down and all the traffic of Letsbuy is diverted to
Flipkart.
5. Product Strategy
Flipkart is set out to create something for the Indian market a service that was specifically built keeping the
Indian consumer in mind. For them, the biggest inspiration continues to be the constant learning process that
has been a part of their journey. The other has been the ability to realize our dream of doing something for the
Indian consumer.
As far as entrepreneurship is concerned, Flipkart believes that the core focus for every start-up, regardless of
the industry, should be the same and that is customer focus. By putting the needs of their customer first and
listening to what they have to say, is the only route to building a large, loyal customer base the blueprint to
any business success story.
Consistent customer service is the hallmark of Flipkart. Discounts cannot replace the customer's satisfaction of
being serviced promptly and efficiently. Similarly, the trust-building exercise is accorded a lot of importance.
Flipkart connects with customers in real-time, through Facebook and Twitter. Honesty is the best policy for this
e-commerce trailblazer.
Flipkart is rapidly expanding its network of warehouses, distribution centers, procurement operations and 24/7
customer support teams. The company has its own delivery network in 37 cities and is set to expand this in the
current financial year. With a team of around 4,800 members, the company operates from offices and
warehouses in seven Indian cities.
6. Operational strategy
Flipkart began operations on the consignment model goods were procured from suppliers on demand,
based on the orders received through the website. However, eventually, the books-to-electronics e-shop
adopted the warehouse model. The company has its own warehouses, and maintains its own inventory. Sales
projection determines the inventory, and the available inventory accounts for the sales made; it's a self-feeding
cycle of sorts. Nearly 60 to 70 per cent of deliveries take place through their own network as this model
provides for better control over the entire logistics management piece.
On the operational front, issues faced by the company pertain to delay in deliveries, or faulty products. As a
customer-centric, none of these issues can remain unresolved for long. They faced significant challenges in
reverse logistics. It's a big task to track unsuccessful orders, which are quite costly to manage. Hence, Flipkart
stresses on customer service it aligns with the firm's philosophy of making better our service promise'. Their
bigger objective is to redefine the way India shops.
Flipkart will continue to expand our categories in order to meet the growing consumer interest in the ecommerce market. They have recently added computer peripherals, kitchen appliances, televisions and home
theatre systems and selected stationery items to their product range. They will continue to add more products /
selection to their existing categories as well.
7. Branding
Flipkart went for a major brand makeover, making it look more up market. There have been large newspaper
ads, TVCs and a lot of web ads. But unlike other ecommerce companies the inorganic marketing kicked in only
when the product was strong. Flipkart already had a proven model execution with books and extending to other
verticals did not need infrastructural changes. Flipkarts real achievement has been in solving the pain points in
Indian ecommerce that most well funded players are still complaining about.
No Kidding, No Worries
No Kidding, No Worries, the recent advertising and branding campaign of Flipkart is a unique example of Trap
Them Young. An in-depth analysis of recent advertisement campaign of Flipkart strongly conveys Indian
youths sentiments and their desire. The story board of adverts, features kids in adult situations, like a beauty
parlor, a cafe, and an office. The Hinglish language & the happening places is the heart of No Kidding, No
Worries advertisement series. The creative director succeeds to keep KOOLNESS of Brand Flipkart.
a. Yahoo News:
Until last year Flipkart had a feed of Yahoo News on its product pages. From what SEO means, this is to
increase the keyword density and introduce original content on the page, as the product description across all
books sites is same.
2. Payments:
No credit card/net banking, fear to transact online, repeat transaction failures, no access to web these are the
common problems with online payments. What Flipkart is doing to overcome these?
Flipkart had at least 4 different Payment Gateways integrated. They introduced Cash-on-Delivery. Then they
are also doing order on phone. Payment via DD/Cheque is also accepted.
2 basic things that they are currently doing that take little technical effort but quite some product management
will:
a. Auto redirection to banking site: Unlike most other ecommerce sites, Flipkart never lands you on CCavenue
page, you are auto redirected to the banks page where the info is required to be filled. Flipkart by-passes 1
unnecessary page by passing the required parameters directly to CCavenue and not through a user interface.
b. Banks Status: Flipkart maintains its own real time status if the banks net banking is working or not. So there
are no surprises after you have chosen the bank and then go to the net banking page.
3. Inventory:
In the world of eCommerce, the players keep a standard list of products and then go out procuring it only when
there is an order placed. There is no inventory on their end and there is no live status of inventory from their
supplier. Remember The Alchemist, Never Promise something that you dont have.
4. Delivery:
Flipkart is exploiting the delivery problem as a cashable need gap and building its own delivery
backend. Flipkart is seen delivering through their own delivery boys in Bangalore and at times within 12hrs from
order.
Flipkart has started putting fliers in newspapers in Bangalore with a product listing, call-to-order phone number
and a promise of delivering tomorrow. This means more discoverability, no payment problem and no delivery
delay.
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. Flipkart is looking to raise $100Mn at a valuation of $200Mn.
9. Marketing
It is very difficult to sell a product which has been offered intentionally high to a middle customer in India. But
then the customer is getting that offer at the comfort of their home. Any customer will like this and will pay the
amount tagged by retailer. But how can this idea are promoted. Flipkart used Word of Mouth as their best
marketing tool to sell their product. A satisfied customer tells others also about a good experience, and this how
the business of Flipkart depends. Flipkart has been using different Social Networking Engines to promote their
product. Promotions on Facebook, twitter and other social sites helps in gaining some attention, but to some
extent, the rest has been done by Services offered by Customer.
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
official Face book page has close to 9 lac '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.
The message is very clear to make people more comfortable with Flipkart, to generate a great customer
relationship and loyalty on the basis of great product prices and excellent customer service. All in all to create a
great customer experience.
2. Strategic pricing - Basically overall pricing strategy where some products are given at a higher discount in
order to capture market share or consumer mindshare.
So individual product pricing can be higher or lower while the overall picture is kept in mind so that the
company as a whole can sustain itself on an overall profits or deep enough pockets to work on losses for
sometimes.
Price is optimized best when the overall cost to the company per product is optimized. So that means here the
contributing factors have to be looked at and the costing there has to be optimized.
So looking at the major cost factors that affect the E-Commerce that are taken care of Flipkart:
1. Supply Chain (procurement and shipping):
Flip karts core competency lies in their Supply chain and logistics which has been perfectly monitored and
managed by professionals. This involves a deep understanding of where the suppliers are and where the end
consumers are so that when a customer orders a product, it can reach him by the shortest route in the shortest
time and minimum manpower time being spent.
Online Wallet
Also Flipkart offers 0% EMI on transactions made on credit card payment where the whole amount can be paid
in 3 monthly installments without any extra charge. For installment greater than 3 months, a minimal charge is
levied.
Flipkart Adds Online Wallet to Ease Payment Woes
Flipkart has added a new Walletfeature to enable customers store money in their Flipkart account and redeem
it on future purchases. Flipkart Wallet works on a prepaid credit system: you can top up your wallet with any
desirable amount up to Rs 10,000 by using any one of its regular payment modes like credit card, debit card,
and net-banking. This amount will then be reflected as prepaid credit on your account and can be used as a
payment mode for all forthcoming purchases on the portal. Expectedly, this amount will be deducted from the
balance in your accounts wallet. Flipkart allows you to make a partial payment using your Wallet and pay the
remaining amount using other payment modes like credit card, debit card, and net-banking. Flipkart does point
out that cash-on-delivery payment mode cannot be combined with a Wallet payment. This is Flipkarts way of
bypassing payment gateway problems and also facilitates frequent shoppers
3. Start a small charge for COD, maybe a tiny amount to begin with but sooner or later the charge could
potentially off set the working capital deficit.
build grounds up for Flipkart. Hence an acquisition is the best route to increase momentum on the ecommerce
flywheel Flipkart has already built and set in motion.
Build the ecosystem: When a business model has successful equivalents in developed markets, the role of a
local strategist becomes easy import ideas. How successful will a Flipkart handheld device or Flipkart Web
Services become? What is interesting however is building a supply ecosystem where original creators are
encouraged to participate on the platform without losing value to intermediaries. Authors are a very obvious
target audience in this category, which itself has a very wide range encompassing text books, animated books,
restored (and retold) classics, fiction, non-fiction, graphic novels the list can go on. Besides the content, form
has diversified significantly, thanks to bloggers and journalists. Developing relationships with producers directly
(building the relationship is not entirely easy) and co-creating products increases the value of the Flipkart
platform for those who were perhaps dis-intermediated or losing too much to make authoring a successful
profession (authors has been used metaphorically somewhat. This strategy holds good for any original
producer of content/merchandise. For example, this can work as well for art and handicrafts as it will for books).
Inorganic expansion and building ecosystems should herald a different thinking process for Flipkart a line of
thinking that transforms the business from being a service providing ecommerce to becoming an electronic
marketplace and platform. Platform companies (Eric Schmidt named Facebook, Amazon, Apple and Google as
the Gang of Four Platform Companies) are ones that come with a core and then combine complements from a
variety of other providers to add disproportionate value to the service. Platform companies are difficult to build
but once done (and there are important technology and business considerations) are in the long-term more
successful than pure-play product or service players.
This phase of pulling away is the most important phase in Flipkarts strategy, in both design and execution.
Conclusion
Flipkart is a story that comes from smart work and an it is possible attitude. There is a need to for a couple of
more stories like these and there would be no cribbing about Indian E-Commerce not working.
Their aim is to make Flipkart synonymous with the shopping experience in India.
E-commerce in India has a huge potential going forward and this is just the start. They have a lot of work ahead
of us if they are to fully realize this potential they feel it will be some time before they actually look overseas
The USP of Flipkart is to provide the consumers with the best online shopping experience. The company aims
to provide its customers with good value and wants to be regarded as one of the most friendly service providers
in the domain.
It is also looking to become the biggest e-commerce organization of India while retaining its focus on serving
the customers to the best of their abilities. It will also look to innovate in this domain and try to expand its
offerings so that customers have more to choose from.
These are the reasons why many love Flipkart. Some people calling it as Amazon of India which fits to Flipkart.