INTRODUCTION Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It’s being touted as India’s answer to Amazon.

Founded by Sachin Bansal and Binny Bansal (not related to each other) in Oct 2007, Flipkart has catapulted to one of India’s most popular e-commerce sites and undoubtedly as the most popular online destination for books within a short span of three years. History Flipkart was established in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for before quitting and finding their own company. Initially they used word of mouth marketing to popularize their company. A few months later, the company sold its first book on - John Woods' Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 30 Indian web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones & accessories, cameras, computers, computer accessories and peripherals, pens & office supplies, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc. Interesting Statistics about the company  As of today, Flipkart employs over 4500 people  It experiences 2 million unit sales and 4 million unique visitors per month with sales growing at 25% per month, eyeing a $50 million run rate  With close to 11.5 million titles, Flipkart is the largest online book retailer in India with 80 per cent market share  It has a registered user base of two million customers and ships out as many as 30,000 items a day, clocking daily sales of Rs 2.5 crore  Flipkart is rapidly expanding its network of warehouses, distribution centers, procurement operations and 24/7 customer support teams. The company even has its own delivery network in 27 cities and is set to expand this even further by next year What sets it apart? With path-breaking features like Cash/Card on Delivery, 30 Day replacement policy and EMI options, Flipkart has now made it possible for anyone across the country with internet access to shop online. The Flipkart experience is characterized by the intuitive user

com 2010 WeRead.000 movies and close to 50. They later raised two rounds of funding from Accel Partners and Tiger Global Management to the tune of $31 million. with the first round being around $10 million and the second round being $20 million Acquisitions 2010 WeRead 2011 Mime360 2011 2012 LetsBuy. a social book discovery tool. with co-founders Sachin and Binny Bansal spending Rs 400. Funding The company was initially self-funded. 2011 Mime360.000 ($9056) to setup the business. is a Bollywood news site that offers updates. the company has consistently recorded repeat purchase rates of more than 70%. a digital content platform company.interface. As a testimony to the superior customer experience. The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network.000 ratings. 2011 Chakpak. . free shipping and low prices. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. news. photos and videos. Flipkart acquired the rights to Chakpak’s digital catalogue which includes 40.000 filmographies.

West Bengal Mumbai. Kerala Products Flipkart started with selling books. home and kitchen appliances. personal care. pens & office is India's second largest e-retailer in electronics. Uttar Pradesh Pune. health care. they added to their catalogue media (including music. In 2010.2012 Letsbuy. Tamil Nadu Delhi Kolkata. On average. and can subsequently be utilized to make purchases on the site. audio players and televisions. 20 Crore in FY 2009-2010 and 75 Crore for FY 2010-2011. Flipkart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their Flipkart account using credit or debit cards. computers. Karnataka Chennai. Warehouses are located in the following cities. warehouses and customer service centres across India. In November 2011. product launches included cameras. In FY 2011-2012. gaming consoles. Maharashtra Noida.         Bangalore. Flipkart is set to cross the 500 Crore (US$ 100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online. Maharashtra Kochi. Locations The company's headquarters is located in Bangalore's Koramangala neighbourhood. Flipkart bought the company for an estimated US$ 25 million Business Results Flipkart's reported sales were 4 Crore in FY 2008-2009. Flipkart has offices. as and when required. . computer accessories. movies and games) and mobile phones & accessories. Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of 5000 Crore (US$ 1 billion) by 2015. In 2011. often near airports.

Flyte. Flyte offers browse by language options where users can download international as well as regional Users can shop for tracks from various albums starting at Rs 6 on the store.Later. the company revealed its new Flyte Digital Music Store. a legal music download service in the vein of iTunes and Amazon. offers DRM-free MP3 downloads. in February 2012. Flipkart has listed the music based on its genre on the new music store and has given a lot of variety. .

marketing. and automated data collection systems.688 crore by the end of 2009 to an estimated Rs 31. supply chain management. databases. email. extranets. online marketing.598 crore in 2010. selling. The penetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a large number of new entrants. urban traffic congestion and lack of time for offline shopping Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs Internet commerce industry in India has seen manifold increase in the last couple of years. . It can be in the following forms     Business-to-business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Consumer-to-Business (C2B) E-Commerce in India India has an internet user base of over 100 million users. online transaction processing. and mobile phones. The industry consensus is that growth is at an inflection point with key drivers being:      Increasing broadband Internet (growing at 20%) and 3G penetration. electronic data interchange (EDI). It typically uses electronic communications technology such as the Internet. automated inventory management systems. It can involve electronic funds transfer. Rising standards of living and a burgeoning.E-COMMERCE IN INDIA E-Commerce . with the total market size increasing from Rs 19. buying. and servicing of products or services over electronic systems such as the Internet and other computer networks.Electronic commerce or e-commerce consists primarily of the distributing. The information technology industry might see it as an electronic business application aimed at commercial transactions. upwardly mobile middle class with high disposable incomes Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers Busy lifestyles. e-books. e-marketing.

lack of common taxation rules can hinder growth in future. both global and local. Challenges ahead However.5 billion mark by 2015. Experts say that in 12-18 months. Indian market will see the leaders emerge. As more global players enter the e-commerce space.Growth of E-Commerce in India over the years (Figures in USD millions) 12000 10000 10000 8000 6000 4230 4000 2000 0 2007 2008 2009 2010 2011 1750 3015 6790 E-Commerce India 2012 India's e-commerce industry is primed for a shakeup as sales soar. ecommerce is just sizzling in India and we may soon see many more Internet companies achieving success similar to that of companies like Flipkart and Snapdeal. valuations drop and the fitter among the companies gobble up weaker rivals. India's best-known and stronger online retailers are taking the lead in the consolidation race. especially. the need of the hour is a uniform goods and services tax (GST) across the . its biggest rival Snapdeal is in advanced talks to acquire a company that will give it a bigger presence beyond its strength in the group-buying market. With the online retail industry in India pegged to reach $1. Thus. the growth of E-Commerce is not devoid of challenges that the industry is confronted with. There will be a couple of multi-product generalists who will be successful and a winner in each single-product category. In the online shopping industry. After Flipkart announced last week that it is acquiring consumer electronic retailer Letsbuy.

Currently. On the local front. This would need to be resolved in order to extend the reach and improve the e-commerce Though consumers in small towns have started using Internet actively. conversion from visitors to shoppers would take some time. While online shopping is expected to find some share in smaller Indian towns too. Then there is logistical and supply constraint for retailers. given the different taxation rates. inter-state movements of products often pose a problem. increasing supply of products and lack of logistics like warehouses can be a challenge for retailers . online shopping predominantly remains a practice of urban and middle class consumers.

a lot of new players enter this market every day. there is a great opportunity for growth in this sector. Moreover. there is not a lot of differentiation that can be created in terms of product quality.Porter’s 5 forces Analysis Threat of new entrants Since the E-Commerce industry in India is booming. However. Thus. a lot of suppliers are available today that are ready to sell them to an e-tailer. Tomorrow. CDs. Moreover. Books. there is no incentive for the customer to stick to the same product. Brand loyalty too does not come into picture in the e-commerce industry to a great extent. Bargaining power of buyers It is high because the customers or the buyers have a plethora of options available to buy any product. substitutes are possible in all formats as there is always something new coming up in the internet market. Threat of suppliers integrating forward into the industry is also. Also. electronic items etc. since internet is available everywhere. . the supplier side is strong and concentrated and thus patented products like Microsoft office are not easily available. in this case. it tends to breakdown any regional barriers. most customers here are price conscious and thus look for price as their major criteria for selection. since there is no switching cost involved in changing from one online product to the other. He also has an option of watching the movie online itself as today a lot of websites have instant screening facilities for movies that customers desire. if we talk about firms like Microsoft. We talk about DVDs. say a buyer wants to order a movie DVD from say Flipkart. There are no patents possible as it is an open sector and everyone has easy access to technology Threat of substitutes Here. then he can always order a CD from a nearby store (as these substitutes are growing tremendously). They can easily switch from one product to the other. if he finds it to be expensive. Also. Bargaining power of suppliers In general it is low because the kinds of products that this industry caters to are available quite easily. This encourages even more players to enter this lucrative market.

MSN. interaction through blogs and websites. FNAC. quality of the final product. easy user interface. . The only way to be able to differentiate is through the service you provide in terms of delivery time. Amazon. Flipkart. in the market that sell a large diversified set of products and there is not much differentiation amongst them. and cost cutting through efficient supply chain management.Threat of Competitors This threat is high as there are a large no of firms like EBay. Snapdeal etc.