P

a
g
e
1

NATIONAL INSTITUTE OF FASHION TECHNOLOGY



E-commerce (Assignment-1)


BUSINESS MODEL & STRATEGY OF FLIPKART





Under the guidance of: - Presented by:-
Mr. Amar Tiwari Abhilash kr. Ankit (01)
DFT-5


P
a
g
e
2

ACKNOWLEDGEMENT

Dictionary has failed me when I begin to thank my teacher Mr.
Amar Tiwari for his unflinching support and constant guidance
which were a big step forward to the completion of this
assignment. His sincerity and perseverance has been a constant
source of inspiration. I also thank him for his effective tips.

I am really thankful to my classmates for their full co-operation
and support. This study is a fruitful outcome of a good
teamwork.

I would also like to thank the almighty God without whose grace
nothing is possible and is ever needed. It was a nice learning
experience for me.

Any suggestions would be willingly accepted and incorporated.


Abhilash Kumar Ankit(01)
DFT-5




P
a
g
e
3

TABLE OF CONTENT

PHOTO GALARY AT THE END OF THE DOCUMENT


SERIAL
NUMBER
TOPIC PAGE
NUMBER
EXECUTIVE SUMMARY 4
1) INTRODUCTION 6
2) COMPANY PROFILE 7
3). BUSINESS MODEL 9
4). KEY CONSIDERATION 11
5). SUCCESS REASONS & MARKET
STRATEGY
17
6). CHALLENGES 18
7). COMPARISON 21
8). RECOMMENDATION 23
9). CONCLUSION 25
10). REFERENCES 26

P
a
g
e
4


EXECUTIVE SUMMARY
The concept of e-commerce is downloading at a fairly
rapid pace in the psyche of the Indian costumer. In the
metros shortage of time is the big driver for online
shopping. On the other hands accessibility to the variety
of products makes audiences from smaller towns & cities
opt for the online route.
A quick overview of Indias internet penetration shows a
User base of approximately 100 million. The spread &
subsequent adoption of e-commerce, thus only seems
logical. As there is a competitive companies face many
challenges such as small basket size & higher customer
acquisition cost. As an online retail provider flipkart also
faces some challenges. In spite of these challenges
flipkart has over 10 million customer base and has
100,000 average shipments per day. It is a strategy that
has enabled them to gain lions share of the online retail
market.
There are online retailers like myntra who is specialized
in apparels only, whereas flipkart handles more than 25

P
a
g
e
5

products category, and through this report we will be
able to understand various aspects and strategy of the
company through which they are able to handle the
supply of more than 25 products.
The research provided by me in this document provides
information about an overall analysis of a leading e-
commerce platform in India and thereby examines their
strategy with respect to e-business & marketing. The
growth of this portal has been precedential in defining
the e-business parameters in India.










P
a
g
e
6

INTRODUCTION

Flipkart is an e-commerce company founded in 2007, by
Sachin and Binny Bansal. It operates exclusively in India,
where it is headquartered in Bangalore, Karnataka. It is
registered in Singapore, and owned by a Singapore-based
holding company. According to Alexa Internet, Flipkart's
website is one of the 10 most visited websites in India.
Flipkart has launched its 1
st
product in 2007 which was a
book. Again it has various range of products under the
name "DigiFlip", offering camera bags, pen-drives,
headphones, computer accessories, etc. Legally, Flipkart
is not an Indian company since it is registered in
Singapore and majority of its shareholders are foreigners.
Because foreign companies are not allowed to do multi-
brand e-retailing in India, Flipkart sells goods in India
through a company called WS Retail. Other third-party
sellers or companies can also sell goods through the
Flipkart platform.




P
a
g
e
7

Company profile

Company name :- Flipkart
Revenue :- Rs. 60.8 billion
Employees : - 10,000
Owned by :- Sachin & Binny Bansal
Slogan :- The Online Megastore
Founded :- 2007
Industry type :- online retailing
Website :- flipkart.com
Language :- English
Product range :- apparels, electronics, accessories,
Footwear, books, home furnishing,
Other names :- Amazon of India
First product :- Books (Leaving Microsoft to
change the world by VVK
chandra)

P
a
g
e
8



Official website of flipkart

P
a
g
e
9

BUSINESS MODEL:-
The business model of flipkart is based on B2C i.e,
business to customer model. The following revenue
generation model is being followed by flipkart.
1. Affiliate revenue model:- The affiliate program is an
online distribution
solution which is based on the principle of
commission. Merchants advertise and sell their
products and services through links to partner-
websites.It is a pay-for-performance model:
Commissions are only paid for actual revenue or
measurable success. An affiliate-link includes a code,
which identifies the affiliate. Thats how clicks, leads
or sales are tracked. The affiliate therefore acts as
the interface between merchants and customers.
This model the merchants sell their products or
services and the affiliates get their commissions.
Variations include banner exchange, pay-per-click
and revenue sharing programs. The affiliate model is
well-suited for the web and therefore very popular.

2). Transaction fee model:- A company receives
Commissions based
On volume for enabling or executing
transactions. The revenue is generated through

P
a
g
e
1
0

transaction fees by the customer paying a fee for a
transaction to the operator of a platform. The company
is a market place operator providing the customer with a
platform to place his transactions. During this process
the customer may be presented as a buyer as well as a
seller. To actively participate in this e-market, customers
must register, so both parties of a transaction taking
place are identified. From a business perspective, the
offer is determined by others as customers offer their
goods online and are acting as sellers. The amount of the
transaction fee can be both fixed and percentage
calculated.

3). Sales revenue model: - Wholesalers and retailers of
Goods and services sell their
products online. The main benefits for the customer are
the convenience, time savings, fast information etc. The
prices are often more competitive. In terms of online
sales there are different models such as market places as
common entry points for various products from multiple
vendors. Since, flipkart provides online shopping, they
obviously follow the sales revenue model.



P
a
g
e
1
1

KEY CONSIDERATION
Flipkart has the following key considerations:-
1). Price
2). Product review
3). Convenience
4). Payment system
5). Offers
Detailed study of the above points:-

1). Price:- flipkart provides the garments of almost
all ranges keeping in mind the economical
combination of the country, it is very much sensitive
about the financial strata of the people & hence
caters people from all the community. The various
price ranges which flipkart provides for the
apparel segment in the varies from 250 to 3000
and above. The ethenic wear & lehngas on the
website also cost around 40,000.


P
a
g
e
1
2

2).Product Review:- - flipkart provides us with a
special facility of giving our own product reviews
while buying. We can write product reviews on the
page of the garment. So that people who visit that
page and like the particular garment can see the
reviews and take reference from them. This will help
them to make judgments regarding the product. Also
it helps flipkart to know their customer reviews.

3). Convenience:- flipkart has the most convenient
online shopping model. It provides services such as cash
on delivery, 30 day replacement, 30 day exchange policy,
wish list, wallet, digital cart etc making the online
shopping experience highly comfortable experience for
the customer. Also, view of the garment from all sides is
provided so that the customer can understand the fit of
the garment.
Flipkart provides all clothing products in various sizes and
also provides a size chart so that the customer can
identify his correct size and purchase accordingly.
Flipkart also provides detailed specifications of the
garment such as, type, fit, fabric, dimensions, neck,
sleeve etc.


P
a
g
e
1
3

4). Payment system:- Flipkart offers multiple payment
methods. Whatever the selected online mode of
payment, customer can remain assured that Flipkarts
trusted payment gateway partners use secure encryption
technology to keep the transaction details confidential at
all times. The details of the various payment systems
enabled by flipkart are given below.
a). Internet Banking:- Internet Banking means any user
with a personal computer & browser can get connected
to the banks website, to perform any of the virtual
banking functions. The system is updated immediately
after each transaction.
b). Credit/Debit card method:- All major credit / debit
cards are accepted. It is done automatically by software
packaged with e-commerce software. SSL encryption
International cards not accepted here.

c). Payment Gateways:- Bank itself providing its own
payment gateway(like ICICI payseal) 3rd party services
like Ccavenue which ties up with many banks

d). Cash On Delivery:- The most innovative idea of
payment that was launched by flipkart was the COD
method. With C-o-D you can pay in cash at the time of
actual delivery of the product at your doorstep, without

P
a
g
e
1
4

requiring you to make any advance payment online. The
maximum order value for Cash on Delivery (C-o-D)
payment is 50,000. It is strictly a cash-only payment
method. The amount is paid to the courier service
provider who delivers the product to the customer.

e). wallet (for the flyte service) to make the purchase:-

the wallet is a prepaid credit system, launched by
flipkart.com, for a hassie free shopping experience. It
provides the following benefits like:-
Making one time payments and shopping
multiple number of times.
Simpler & faster checkout process.
No more worries of transaction failures.

f). Flipkart EMI Option:- The Flipkart EMI payment
option is available for Citibank, HDFC, ICICI, Kotak
Mahindra and American Express credit cards only. You
can choose to pay in 3, 6, 9 or 12 month instalments. The
minimum order value to avail the EMI payment option is
4,000.


P
a
g
e
1
5

g). Saved Cards:- - At the time of making a card payment,
select the option Save this card for future payments to
save the given credit/debit card. Pay conveniently using
your saved cards.

h). E-vouchers:- E-Vouchers are used to minimize the
cost of buying the products through flipkart. These
vouchers could be bought by the people. Generally these
types of vouchers are used for the purpose of gifting
someone, so that any product they buy could get
minimized.
SNAPSHOTS:-


The size chart of mens wear

P
a
g
e
1
6


Flipkart e-gift vouchers


Flipkart affiliate programs

P
a
g
e
1
7

Success Reasons & Market Strategy:-

Various factors for the success of flipkart are given
below:-

1). Long term objectives:- F Fl li ip pk ka ar rt t a ai im ms s t to o
b be ec co om me e t th he e l la ar rg ge es st t r re et ta ai il le er r o of f I In nd di ia a. . F Fl li ip pk ka ar rt t w wa an nt ts s t to o
b be e p pr re es se en nt t a ac cr ro os ss s a al ll l c ca at te eg go or ri ie es s, , e ex xc ce ep pt t i in n g gr ro oc ce er ri ie es s
a an nd d a au ut to om mo ob bi il le es s, , t th he e C CE EO O s sa ai id d. . O Ou ur r t ta ar rg ge et t i is s n no ot t
j ju us st t t th ho os se e w wh ho o s sh ho op p o on nl li in ne e. . W We e w wa an nt t t to o h hi ig gh hl li ig gh ht t t th he e
c co on nv ve en ni ie en nc ce e o of f e e- -c co om mm me er rc ce e t to o t tr ra ad di it ti io on na al l o of ff fl li in ne e
s sh ho op pp pe er rs s a an nd d, , t th hu us s, , h he el lp p g gr ro ow w t th he e m ma ar rk ke et t. .

2). User Friendly & Easy Navigation:- The website is
very user friendly & easy to navigate. Even a new
user surfing for the first time with the website would
be able to understand the various methods of buying
the product through it.

3). Mode of payment:- one of the most important
reason for the rate of success of the product by
flipkart is the method of payment. As per the
requirement and understanding the psychology of


P
a
g
e
1
8

the indian population the method of cash on
delivery was started & this boomed its market.

4). Great customer service:- Flipkart users are more
satisfied than that of their competitors. Great customer
Service has been its hallmark. According to various
customer surveys the evidences of great services has
been found.

5). Prepaid wallet features:- Flipkart has started a very
famous way of storing the money, so that one may get
away from the regular credit card bills.

FINANCIAL OBJECTIVE & CHALLENGES:-

US $ 100
million
revenue.
Diversify
product
portfolio
into home
appliances,
electronics,
etc.
2014
US $ 1
billion
revenues.
Aggressive
acquisitions.
Stronger
supply
chain.
2015
Largest
retailer in
India.
Enter global
markets.
2020

P
a
g
e
1
9

Flipkart s existing triangle


















Key Success factors:
brand awareness
convenience
delivery reach
delivery time
reliability
user
experience
availability
price
Competencies:
excellent product
delivery
self owned delivery
n/w
supplier network
first mover
advantage
payment mode
excellent services
internet strategy
(search engine
optimization)
large loyal customer
base.
Value proposition:
C Co om mp pl le et te el ly y h ha as ss sl le e f fr re ee e o on nl li in ne e s sh ho op pp pi in ng g
e ex xp pe er ri ie en nc ce e w wi it th h b be es st t p pr ri ic ce es s i in n I In nd di ia a . .









P
a
g
e
2
0

ACQUISITION:-
1). WEREAD:- In the year 2010, a social book
discovery tools. The stated goal was to give flipkart
a social recommendation platform for buyers to
make informed decisions.
2). MIME360:- a digital content platform company
was hired in the year 2011.
3). CHAKPAK.COM:- Bought in the year 2011, was a
Bollywood site that provides updates & videos,
news about the Bollywood happenings. Flipkart
bought the digital rights of chakpak, which provided
the updates about the Bollywood.
4).LETS BUY.COM:- Was the 2
nd
largest online
retailer for the electronics goods. Was bought by
flipkart for estimated US $ 25 million in the year
2012
5). MYNTRA.COM:- The most recent acquisition by
flipkart in the year 2013. One of the most renowed
online retail store which was acquired by flipkart.

P
a
g
e
2
1

SHOPPING COMPARISON

PARAMETERS FLIPKART E-BAY SNAPDEAL RELIANCE
TRENDS
BIG BAZAR

1). PRODUCT RANGE
MENS WEAR YES YES YES YES YES
WOMENS WEAR YES YES YES YES YES
KIDS WEAR YES YES YES YES YES
E- VOUCHERS YES NO NO NO NO


2). TYPE:- E-COMMERCIAL
RETAIL STORES
E-COMMERCIAL
RETAIL STORES
ONLINE
RETAIL
STORES
MANUAL
RETAIL
OUTLET
MANUAL
RETAIL
OUTLET


3). PRICE
JEANS RS. 500- 5000 RS. 51- 3000 RS. 499-9999 799- 3200 899-3999
T-SHIRTS RS. 599-2999 RS 100- 5999 RS. 599-9999 499- 1999 500-2000
SHIRT RS. 800- 12,999 RS 250- 5999 RS 499-
12000
599- 4000 499- 2500
DRESS RS 298- 7999 RS 250- 5999 RS 200-
10000
599- 2500 299-3000
SKIRT RS 298- 3500 RS 250- 2500 RS 200-3000 599- 3000 299-1500

4).PAYMENT MODE
ONLINE
YES YES YES NO NO
5).CASH ON
DELIVERY
YES NO YES NO NO




P
a
g
e
2
2



PARAMETERS FLIPKART EBAY SNAPDEAL RELIANCE
TRENDS
BIG BAZAR

6). RETURN POLICY 30 DAY
REPLACEME
NT
GUARANTEE
60 DAYS
MONEY
BACK,
BUYER
PAYS
RETUEN
SHIPPING
7 DAYS
REPLACEMENT
GUARANTEE
Replacement
possible
Replacement
possible
7). DISCOUNT Sometimes Sometimes Sometimes Sometimes Sometimes
8). SHOPPING CART Available Available Available Not
available
Not
available
9). ONLINE
SUGGESTION
POSSIBLE DISCUSSION
BOARD
CUSTOMER
REVIEWS
Not
available
Not
available
10). DESCRIPTION of
PRODCT
PRESENT PRESENT PRESENT Not
available
Not
available
11). QUALITY of
PRODUCTS
GOOD GOOD GOOD FAIRLY
GOOD
AVERAGE
12). CONSUMER
SATISFACTION
VERY
GOOD
GOOD FAIRLY GOOD GOOD AVERAGE
13). AUTOMOBILES NO YES YES NO NO
14).GROCERY NO YES NO YES YES
15).
CUSTOMIZATION
NO NO NO NO NO
16). Size chart Available Available Available Not
available
Not
available
17). Fit issues May be
prevelant
because of
the
undefined
standard size
of india
May be
prevelant
because of
the
undefined
standard
size of india
May be
prevelant
because of the
undefined
standard size
of india
Not much
issue, as one
can check by
having the
trail of the
garment
Not much
issue, as one
can check by
having the
trail of the
garment



P
a
g
e
2
3

RECOMMENDATIONS:-

1). The facility of international shippage is not
possible for flipkart, as the business is only in
india. So the business may be expanded globally
as per the decision of the company.
2). Cash on delivery is only restricted to the
product value of 49,000, which may be increased.
3). The company has started their own lable for
making camera bags, pendrives etc, the company
may also start its own production house for the
apparels under its own lable.
4). As the companies like e-bay & snapdeals
provide facilities & parts related to automobiles
the business of flipkart must also be extended to
the automobile sector also.
5). flipkart is just like a virtual online retail shop in
itself, whereas e-bay is a platform for the buyer
and the seller to sell the products.

P
a
g
e
2
4

6). Flipkart may provide the facility to the
customers to provide their own size chart so as to
reduce the fit issues.
7). Flipkart may work in improving its supply
chain, so that the time period for the delivery may
be reduced from 2-3 days to 24 hrs.
8). As the users of internet are increasing day by
day, the company must focus to reach more &
more cities for its delivery of products, not only in
tier1-tier2 cities, but also tier3-tier4 cities & also
to such villages where internet facility is available.








P
a
g
e
2
5

CONCLUSION
At last from my research I would like to conclude
that, the overall brand value of flipkart is good
but it is facing tough competition from various
other online portal like, e-bay & amazon. But if
talking just about india then it is the most
superior business portal, which is expanding
aggressively & planning its root deep into indian
market & at the same time shifting the mindset
of the people of the country. i.e by shopping from
manual retail stores to the online stores.
There are some areas where the online portal
need to make some improvement as well as add
some features which in turn would definitely
improve their business.





P
a
g
e
2
6

REFERENCES:-
s.no. Reference & links Date Time
1).

2)
3).

4).

5).

6).


7).




8).

9).
http://www.flipkart.com/generation-economic-
considerations-english/p/itmdxguqhyyv7cny
http://www.flipit.com/in/how-to/flipkart
www.slideshare.com

www.scribd.com

http://www.investopedia.com/terms/b/btoc.asp

http://www.business-
standard.com/article/companies/decoding-
flipkart-the-other-people-numbers-
114080400147_1.html

https://www.google.co.in/search?q=key+
considerations+of+flipkart&noj=1&ei=QJ_-U-
jMHIO8uAT72YLoBw&start=10&sa=N&biw=1366
&bih=657

http://www.ebay.com/

http://www.snapdeal.com/product/jack-jones-
skinny-jeans/1637696686?
25
th
august
2014
25
th
august
2014
25
th
august
2014
26
th
august
2014
26
th
august
2014

26
th
august
2014


27
th
august
2014


27
th
august
2014

27
th
august
2014
9 pm

9.30 pm
11.30pm

11.30pm

11.30pm

11.30pm



11.30pm



11.30pm

11.30pm


P
a
g
e
2
7