Analysis of Flipkart’s Business Model and

consumer’s perspective about online shopping

Abhinav Sharma 10106002Karanpreet Singh 10106013Ravdeep Singh 10106021

Sahil Goyal 10106023Bharat Sethi 10106043

Analyze the current state of E-commerce in India Analyze Flipkart’s business model and strategy Identify the key failures and successes of Flipkart Identify the key hurdles faced by Flipkart Record consumer’s perspective and attitude about

Flipkart and the overall online shopping exercise, through survey.

SWOT analysis of Flipkart based on consumer response Record merchant’s response and attitude about Flipkart

and overall online selling exercise, through survey. SWOT analysis of Flipkart based on merchant’s response

Objectives

The Indian E-commerce market scale was evaluated around $16 Billion in

2013 and is expected to reach $56 Billion by the fall of 2023. The growth rate has touched 85% mark till now and in next ten years, it

is projected to acquire 6.5% of the total retail market if India. India has secured position in top 10 countries list of ecommerce chosen

by online buyers. In a research conducted by eMarketer, it is stated that India crossed

$1.08875 trillion of ecommerce sales internationally. It recorded 21.9% yearly growth as compared to 2011 and 19.3% jump in global sales.

More than 7.6 million people are found visiting deals and discounts based websites, which is a proof itself of their growing fad for online shopping.

As per a study, Indian ecommerce is emerging as the biggest B2C marketplace of Asia after recording an increase of 355 and by 2020 it is likely to appear as the central point for startups, investors and entrepreneurial activities.

Statistics

According to Alexa

Flipkart, Ebay, Snapdeal, Jabong, Home Shop 18, Yebhi, Myntra, Naaptol, Tradusin, and Fashionandyou are the Top 10 e-commerce websites in India.

1. Commercial Factors

1. Cheaper Rates 2. The developing logistics3. Segment specific growth 4. Internet Progression 5. Smartphones Industry on rise

Ecommerce Boom

The faster & accessible Internet Smartphones advanced technology Extending Mobility Faster+cheaper Broadband

2. Technical Factors

Consumer stance ‘Online’ means ‘onlife’ nowadays Rise in disposable income Computer literacy rate

3. Demographic Factors

Boom of Social Media Changing Lifestyle Globalization Young population Product Line Media Reach Digitalization

4. Social Factors

Time saver Cash on Delivery (COD) Delivery and return policies Endless options

Other Factors

Flipkart

Don’t just shop, flipkart

Flipkart MarketPlace- allowing others to sell WS Retail:- their primary retail eKart(Flipkart Logistics)- delivery partner PayZippy(Flipkart e-wallet)

STRONG ASSETS

One Day Delivery

1 convincing publishers to share their inventory

was a challengeRoping in an online payment option, key to any

e-commerce portal, was also a concernPoor infrastructure of indian roads was also a

hurdle

Challenges

Warehouse Operation

General Supply Chain

Marketplace Model

Model for Vendors

Generally foreign publishers such as Hachette, Harper

Collins, Penguin etc. do not sell directly to a retailer. The latter has to go through intermediary distributors.

Indian publications like Rupa, Roli, etc. deal directly with retailers and do give discounts up to 35-45% right from the start. So it may be safe to assume that Flipkart will be getting 40-50% discount on these.

They are able to deal directly with the publisher instead of a distributor, then this range can go up as high as 45-50%

Consumer’s perspective and attitude about

Flipkart

How often you shop online?The people now a days prefer to shop online as it saves a lot of time and

money.

Which of the following features do you like about Flipkart?

People love the ease of searching the most.

Which of the following features you do NOT like about Flipkart?

The only thing that people hate about is the delivery charges. As the flipkart holds free shipping above rs300 of purchase.

What are the other e-commerce sites you have shopped from?

The biggest competitors of flipkart are. Snapdeal and ebay.

How was your experience on these sites as compared to Flipkart?

Customers review is good as that on other websites.

Which of the following are your reasons for shopping online?

The most important benefit that a consumer feel is free home delivery.

What are the reasons that deter you from shopping online?

Concerns regarding quality of product is the far major issue that customer is afraid of. Afterward It is insecurity of payment online. And

these both problems are well sorted in flipkart.

How did you come to know about Flipkart?

Internet is the main source of publicity now a days. And customer satisfaction makes others lured towards the website.

What do you prefer buying from Flipkart?

As we all know flipkart started with the selling of books and slowly it establishes itself and deepens its roots in the Indian ecommerce.

SWOT ANALYSIS BASED ON CUSTOMER FEEDBACK

STRENGTHS: Ease of searching COD Fastest shipping in metropolitan cities WEAKNESSES: Less discounts High shipping costs. OPPORTUNITIES: Improve customer experience Exclusivity of products Faster shipping in remote areas

THREATS: Snapdeal ebay

Merchant’s response and attitude about

Flipkart..

The merchants itself are involved and main aim to get into it I that if the product is best and the unbeatable price then then that merchant will be a chosen one above all and will defenitely

increases the sales.

When did you start online? How does it affect your business(if applicable)

What are the categories of products you sell?

Merchants selling depends on demand and their listing of items does not remain restricted to one product type only.

Merchants demands customers to buy their products and hence flipkart provide them a wide consumer base.

What are benefits of flipkart according to you? Do you have any physical shop

What are limitations of flipkart?

The people are satisfied with the item delivered or they refuse to accept at the time of delivery .

How do they deal and how much user friendly is their online portal?

The merchants are made comfortable with the terms and conditions of the flipkart and are friendly in dealing and some think that on growing

they have become a bit careless.

Commision [If you are also using other online portals, please specify which is better in following contexts?]

The merchants has to pay more commission in case of ebay and amazon as they both are also international sites where as flipkart is limited to

india only.

Larger Customer Base for Sales

The flipkart holds upper hand in consumer visibility and largest customer base for sales.

Consumer Visibility

flipkart holds good for the merchant support and flourish well.

Merchant Support

User friendly portalFlipkart is the most user friendly portal among its competitors .

Competition..Amazon and ebay are the biggest competitor of flipkart as they are

already settled in international market and trusted e commerce website.

Competition

Better Review system for MerchantsEbay is considered as better in case of review system.

SWOT ANALYSIS BASED ON MERCHANT

FEEDBACK STRENGTHS: Consumer visibility Merchant support

WEAKNESSES: Low commision rates. Delay in delivery

OPPORTUNITIES: Improve merchant experience

THREATS: Low merchant competition

1. India's e-commerce market could reach US$50 billion

to US$70 billion by 2020, a huge jump from the US$13 billion seen last year, according to the country's largest e-commerce firm Flipkart.

2. "Consumer mentality and shopping patterns are changing very fast. Online shopping is going to become mainstream in the coming five-six years," - Flipkart co-founder and CEO Sachin Bansal told IANS in an interview

Posted by Ryan Ryan is an editor at ZDNet's Asia/Singapore

Research Papers

CONCLUSION

Flipkart has already gone a long way and have developed a lot of itself during these years with a vision of becoming the ‘Amazon of India’. But this glorious position never comes with a free cost. Still there are lot of hurdles which may deter them all through. They are facing a tough competitors with the advent of Amazon and eBay in India. As in above analysis, we can see how better Amazon and eBay are a big hurdle to them with their fast delivery and low shipping factors, which flipkart have to take very seriously. And in the merchant perspective, low commission deter its sales and hence it have to be tackled with the utmost priority. And with that there will be no hurdle resisting their success.