PROJECT REPORT (Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of Calcutta) Title RETAIL SECTOR — ONLINE MARKET: _HUIPHART Submitted by Name: NAVNEET SHAH Registration No: 017-XXXX-XXXX-12 Name of the College: THE BHAWANIPUR EDUCATION SOCIETY COLLEGE College Roll No. : 010XXXXXXX Supervised by Name of the Supervisor : Prof. Saptarashi Ray Name of the College: THE BHAWANIPUR EDUCATION SOCIETY COLLEGE Month & Year of Submission : FEBRUARY 2015INDEX (CHAPTER CONTENT PAGE NO- 1 ____Introduction __ 1-3 2 Objectives and Methodology 4 3. Market trend analysis 5-9 4. Case study 10-24 5. Conclusion 25-26 6. Bibliography 27 7. Annexure 1-A 28 8. Annexure 1-B 29ACKNOWLEDGEMENT: | sincerely appreciate the inspiraion; support and quidance of all hose people who have been instrumental in making this propect a success. | have taken effor's in this project. However, it would not have been possibie without the kind Support and help of matyy individuals. twould like to extend my sincere thanks to al of them, | NAVNEET SHAH, the student of THE BHAWANIPUR EDUCATION SOCIETY COLLEGE, am extremely grateful to “COLLEGE” for the corfidence besiowed in me ‘andentrusting my project enlited “RETAIL SECTOR-ONLINE SHOPPING. FLIPKART. [At thie juncture | fool deoply honerod in expressing my sincore thanks to For moking the resources available at right time and providing valuable insights leading to the successful completion of my project | would also ike to thank all the faculty members of college for their critical advice and ‘guidance without which this project viould not have been possible. Last but not the least | place a deep sense of gratitude to my famlly members and my fiends who have been constant source of inspiration during the preparation of ths project work.1,3 Disadvantages of online shopping ‘+ Delay: Te main disadvantage of onine shopping , you carmot receive the product mmediatay. You have io wail untl ihe product arves. Sometimes 1 isbewer io have an item instant than keep wailing fort for many Gays. | would prefer to buy an item instant i thedelvey tine is too ong “+ Inferior products: You dort know about he actual qually ofthe product. Sometimes the ‘description ofthe product might be aiferent than the actual roguct. AS a vesul you might lend up with inferior quality produc. ‘+Shipping Charges: Shoping chages ard shipping delays is one ol the biggest «sisadvantages of shopping ontne. lets are generally cheaper in onine Web store. But sometime the adation of shipping charge makes the pice similar or more expensive than your nearby local store. + Delivery Problems: Someime you may face Delivery risk. Delivery sk occurs when the soll falsto deliver the orginal product or delversa damaged (nferorduplicate) product {due to shipping problems. '+ Shopaholic: Since t's vory oasy to ssarch & purchase diforontitome very easly and quickly ‘rom online, many peope ende up being a online exopahelic. That means they buy too many things they actualy dont need Sea to ay, think lam one of them! Onine Sbopaholc people thinks they are saving money bacauce the cost ie vory low when you shop trem onlin, but zomotme ie acually e waste because you dont need them. So, buy amar ‘+ Scams: As online stopping is becoming very common the numberof onfine scam and fraud ig alco incsoasing, This i why a buyer should always buy from trstad wobsites only because tustod wobsites would taka care o! ary frau to maintain tno roputaion. “+ Some items are better to buy from the real Store: You wouldr't lke t» buy any clothing products because vou wont be able to know whether they are qoing 1 ook geodon you or nat. ‘+ Return protiems: Retuming an item i cfcult in case of online shopsing Athough seller accepts seis return, they usualy want tha item within a short petiodof time and you also have to pay forthe shipping charges. “+ Warranty issues: Many electronic items are sold without intemational waranty. So make sure you contact with th seller to verty whether the itam has intamational warranty or notppat ard so far my cars running great | am very thankful to god for creating uch an easior ‘way of shopping ‘Save tme and energy. You con't nave o wasie your time in gingto store ang staraing in ‘ont oF the crowd. Vino Ikes fo Search a product nthe every Comers ofa shop and stand in ‘ne long tne ‘or paying ine Du? Snopping trom tne local store becomes more ume ‘consuming and expansive If you do not have @ car of you Own. YOU can solve allthe above ‘problems usi by shopping online. Freedomot choice: Freedom of choices very high in online than shopping rom a nearby lore. n onfine you can choose the product you are looking, from a vast range of products Freedomot price flexbilty: You wil enjoy the freadom of price flexibly. I you dont lke the prise of aprodust from an onine shop, you can switch to othor online ts sore to look for ‘cheaper price. You car also fallow this procedure in normal shop, but it woul take more time and energy to do 0. High satistaction percentage: Now a cay, shopping onine is vary rola, The percentage of catistacion ie wary high. This is why you would so0 mest cf the caller has 09% posite foosbeck. Buyer protection: Deponcabie websites Ike Ebay povites buyerprotecion to motivate ‘people to buy from ther ste. This highly trusted webstes wil give yourmoney back if any ‘soler do not deliver the item or deliver an item which does not match with the description, Rare products: Shoocing onineis very usful in buvina rae products For example, Faw {days ago | have bought a rare car part through E-bay. The price ofthe part was very affordable to. Privacy: There are some products which you dont want o buy public. You can buy any ‘Kind of product from onine web siore anonymously to maintain your desired privacy. E-business: The progress of online business is actually helging milion of people. Now ‘people can buy and sel from the home. People who cannot affordto buy or rena shop, ‘can easily open an online store and selitems from their home. This is playing a very ‘mportantrole in reducing the unemployment rat.HAPTER 1: INTRODUCTION LLDefinition: Online Shopping ‘Ontne shopping invoves purchasing products 0: sevices aver the Internet. Onine shopping s done through an onine shop, e-shop, e-store, vlual sore, webshop, Inlemmet shop or online store. A the ‘Products inonine stores are described through tax, wih photos and with multimedia les. Many ‘onlin stores will provide links for extra information about theirpreduets. They cfton make availabe, saety Procedures instructions, manufacture specification and demonstrations. Some will provide advice or how:o guides. As you are already on the interne, you can search for product views that ‘ther consumers may have posted. Some online steras have place for these reviews on their own ‘tes. Many alow users to rate the products. Advice suchas this fram other consumers, about a ‘Product, wouldbe unavaiatie in a conventional stor. L int line S| 1+ Easy to Find: Finding & product entino is much easier than looking fort inthe loeal stor. ‘You can search any preduct easly by using the saarch engine featu of an onlin shopping \wobsito, Butin store you have to 00k forit unt you find it. Sometime it hosomes very ‘annoy'ng when you car find the product evan after looking in tho couple of shops. But in ‘online uewally we don't have to fase thie problam. If you don’ find a product than you ean ‘switch to anew shopping wobsita without wasting your tino. For example you dont find ‘the sutable productin E-bay, you ear leak fort inthe Amazon without wasting your tim. (On the othor hand it you do not find any prosuct in the store you have to go te othar stone which is more laborious and tine consuming, || Products can be cheaper: Sometimo a preduct can be much chosparin ancther county than your county. In ths caso it would bo wise to shop online to save some monay Hoe is my story, | had a big preblem withthe airflow sonsor of my ca. | wont io the door, and thoy asked 7008 fora now airflow sensor. Sinco my caris old, lam never gong to spard that much mene for that eensor. I didnot have time and patanee to look fora spare part {rom the junkyard. Then an idea popped into my hea! | took out the part umber ard ‘searchadit on E:bay, and tound planty of used pats witha very cheap price. bought thoTounderstand the concent of onine shopoing in India and what are its recent trends. Toidenty the major markat players in toms of online shopping and condicting a comparative study. ‘+ Tounderstand the notion of online shopping wth respect to mate-female prefarence =a case study of Fipkar. 2.2 Methods Primary data: Primary mscarch consistsof a collection of orignal primary data callactad by the ras02*chor It's ton undertaken aftor the rosearchar hae gained some inightinto ths icsue by ‘eviewirg secondary research or by analyzing previously collected piimary da. Itcan be ‘accomplished inrough vaious methods, including questomaives and tewptone interviews in market research, or expenments and drect ouservatons in ne physical sciences, amongst others. ‘Secondary data: Secondary datais data colectad by someone cther than the user. Common ‘sources of secondary data for socal science include censuses, organizational records anc data collected trough quaitaive mathodologioe or qualitative research. Primary data, by contract, ao collected by the investigator corducting the research. ‘This study nas boon conducted based on both primary and secondary data sources, where the {infomation regarcing the generalized idea about onine shopping and the company profile isbased (on secondary sources as obtained from company website and vaious articles. However the authenteaton of such information & dificult judge. The nformation regarding the customer awareness has been collected by emeloying primary method, where 20 responderts (10 male and 10 female) wore intaniowedInga's e-commerce manet grew ata staggering 88 per cent in 2013 10 16 Dillon, rang on Dooming online retat trends ana detyng slower economic growth ang exponentialy increasing tation. ‘According o he Survey, Indias @ commerce market, which Sood al $2.5 blon in 2008, reached $8.5 bilion 2012 and rose 88 percent to ouch $18 blon in 2013. The survey estimates ine county's e-commerce market to each $56 bilon Dy 2023, atven by rising conine reat. ‘To mate tne most of increasing online stopping trends, more companies are collaborating wit dally deal and discoun! sis, he suivey painted cut Inga nas interne! base of around 150 milion as of Augus, 2013, the survey sal. Having close to 10 per ont ot intemet peneraton in inata throws a very by opportunity for tine retalers to grow and expand as future of Internet seems very bright ‘+ Product Trend Analysis: Besides elecrorics gaoges, apparel and jewellery, nome and kitchen applances, lesiyle accessores tke watches, books, beauty products and pertumes, taby products witnessed siniicant upward movementin last one year. The products that are seid most ave inthe tech ana tashien category, incusing mobile ptones, -pads, accessories, MPS players, digtal cameras and jewellery, ‘among fers, ttound. ‘+ Location Trend analysis: As por responses by 3,500 tracers ang organzes Fetalers in Dem, Mumbai, Chenral, Bangalore, ANmadabad and Kokata Who pariopaied n the survey, ontne shoppng grew at a apis pace in 2013 due 0 aggressive online a'scoums, ning tel pnoes ang avataoiny of abuncantonine ‘options. Among the cites, Mumbai epped ie stot online shoppers tolowe by Det, wivle Kolkata rankos tha, the survey toung + AgeWise Analysis: The age-wise analysis revealed that 95 per cont of entire ‘shoppersare aged between 18 years and 25 years, 55 per con! between 26 years ‘and 95 years, 8 per cont inthe age group cl 36-45 years, while only 2 per cont are in the age group o! 45-00 years. Beskies, 05 per cent ol online shoppersare male whe 35 percom are orale3.2.2 Flipkart.com vs Ebey.in vs Amazon.in Basis of Flipkart.com | Amazon. Distinction © Wong | Flokariam aed EbayinRasalvays | Ariazon has avays Nese asadred reiaicr, | worked as. flowed bat the alg goods drecty | marketplace smedels, where & foconsimer: and | erabing sellrsto | sails procucs hhas econtlyincuded | meet buyers and the | drecty and aso lets the markeipace | compan) doos aot | other sellbrsto sll model as wel vnere | arty tat | tree gooss on is alls can'et he | producta portal products z i cigomhas Ebayinalows _| Anazonin has Wed Prong Poler fiodonie nite boys ax selersto | pce anes proauets fengage n auetons. | proguss © Shpong | On fiokaricom | Ebayin hasaiorent | Amazon Charges |aistomers dont | stipsinacharmes | ofierssome have to payany according tothe | products wit ree shipping charge t | Sellen, | Bhppng wie they ae buying | otters are charges products above | orshppne “13500. @ Discount | Flokaricom offrsEbayindoos net | Amazonin afew Simeny | Beweono-w0% | raveany space | between 10-40% Giscountrange | discountrarge. | dzcount range Spread uniform) | speoad uniform. Medeor | Flbkat ‘On eBay, the cash | Amazon doesn Payment | mentonscashan- | or-delvery option fs alow such Geinery asa mode | avalableonyyita | payments forall Srpaymem slong | selerotier a. | tems Ttasolovies a wih ert car, alvery charg. Sebi ards ananat banking. 3.2.3 Market Share Analysis Folowing FLnkar’s& Nynia’s recert merger, ecommerce companies Flipkant ang Myrtraare acquiing and incubating private abels 19 increase tei fashion business. The combined entityis also roping in mow international bands andBolywood celtrities, while noreasing the sllr base,3.2 Comparison between the Market Rulers in Indio 3.2.1 Introduction to the Market Rulers Fipkartoomn, Ebay in and Amazonin ae the three online biggles curretly ghing it cut to gain ‘he maximum number of online shoppersin India. The three websites have acquired muscles and artlory fr the battle in form of imestmants, which they are currently making and wil be making in the future. An outight comparison without mantoning how these websites stated and ‘what they wert through before reaching where they are would be urfar. Let's have alook at how ‘nese websites came ino existence and where hey sland today. + Flpkartcom Flgkar.com was founded by Sachin Barsaland Binny Bansal in 2007 as an online rial portal seling books. The company soon expanded into ll verticals of online retaling and strengthened tset by aoquring the onine ebctoncs retalor Letsbuy.com in 2012. The company has ganes a secured Tooting in Inaia over the years and recently became the rst online retalerin India to cress tho GNV figure ct $! bilion in March 2014, beating ts ove ‘xzeataton of erozeng tha! mark in 2016, Ite cleo the moet veiled oniine retoterin india ‘a the band has a highest recall vaiue among online shoppers © Ebay.n Ebay in isan onina masketplace that lots buyers moots soles; the company was found in 11995 in Amerca and distinguishes itslf as being ‘ntemet corsumer to consumer corporation.’ The company operates lcalzed portals in 30 countries of the world. Ebay.in started operations in 2006 and has continously bul 2 regular sat of buyers and sellers on the website. Since the compary operates as a maketplace italows selerstolist ther products ether ai a xed poe or have an auction for nek products. The company ofers Duyers ‘ebay guarartee’ so ney can be secured that mey get only genuine products + Amazen.in ‘Amazon is the work! largest online retailer. The company was founded in 1984 by Jeff ‘Bezos. The company operates different potas for different counties and ‘Amazon isthe ‘ne that operates in Inda. Apar from being a retaler, Amazcnis also a technology company and created ‘Kindle’ which s an Bock readar for customers who downoad digital books trom the website, Amazon was a late ena’ in India and has to make it mark among Indian audience.Itie eyeing @ shar ef about 8 por cent of tho entire fashion segment inthe next 12-18 ‘onthe, Htelams # accounts fer half to currant markot share. Mya has eight private labels, and tis expected the count might double ina year though the compary di not offal povide any estimate. To increase its presence across cothes, foawear and accessories, Fipkatt Mynta is actively considerng acauirng some online and offine private labels. I plans to spend about ‘5100 mation nthe coming year. “Recanty, we set up @ fashien incubator, In which 18:20 people wil be given support in manufacturing, sampling, supply chan, et, to grow private labels. Attera year, three-four private labela might be acquired by Mynta,” said Mukesh Bancal chiof axecutve of Myriza and head of fashon at both Fipkart and Mynira. Currnty, ‘Myatra has about 650 brands on is portal, while Fipkart has.a base of about 3,060 sollers Market share per provider 2013 Source: http:/findia-retail-market-to-reach-2-23-billion-in-2013/ Flipkart Vs Other Companies9» Reach Top Retail Sites ‘razon 184 Fliptre us Sropdl m beng i“ yrtra as Homeshopl 4s o 4 8 Rn Duin Oetth sana aprz tna WE Beach in 12012 Source : http:/Awww iamuire.com/2012/10/india-among-the-fastest-growing- ecommerce-market-a-report/S329 THE E-TAIL FIGHT AMAZON BEER csocdeon bY Numberofproducts = 15mn 15mn = Smn+* — L.imnt Categories 24-704 = 500* 2,000 Sellers 5,000 3,000 100,000 45,000 Time in india limonths years = 4years_ Sears” *Snapdeat's assortment of products is excluding books and movies Bay has 1.1 million product listings at any given poict Source: Companies, Source : http://thetechpanda.comy 2014/05/21 /lipkert-takeover-myntra/e-tall-CHAPTER 4. -flipkart 4.1 Case Studyof an Emerging Giant in the Online World ~FLIPKART innovation brings with iselfa newsel of challenges. The E-Fetaling form of market was fairy something unhaard of othe Indan corsumer in 2007, Fipkart which has carved a niche for sein terms of market sha, goodwil and popularity n the anne market fo the extent ha oilers are coming under thveat because of ts dscounts ard smooth operations ‘Started with an intial capital of four las it now aims for annual tumover of arourd Fis.4500 cro‘es. It stated off nih books and lator on started diverstying ts market into appar, Dlectronice, eoftaree, music, ate, Wih aver seventeen ard a haf millon book tite tated Dighteen citfrent categorios, more than four milion ragislared uses arc aloof fity five thousand tems a day i's quite sansation in today’s online market. Moreover wit sucha large areato cover cistrbuion and operational challenges crop vp. Another challenge was inline payment which the consumers were hesitant to make. Fipkart came up wit their unique pocy of Cash-Cn-Delivery. This case study ains fo understand the functioning Figkar, ts methods of operations, distrbution, warehousing and delvery systems. The ascent ot Fpkar'to capture the onlina market in ina in jist our years, tna strategies implemented by & to create onine business ts abity © stand out anong numerous E ‘Retalsites, What has Fipkart got that makes its model so robust? Il aims io predict the future roadmap and also aims to fn signifcan throats to Fibkart inthe near tutu. Flan went vein 2007 with the objective of making books easly avaiable to anyone who hadintamat zocess. Today, they're pesent across various categories including ovis, ‘music, games, mobies, cameras, computers, healthcare and personal producs, bore appliances ard elecrronics, stationery, perfumes, toys, apparels, shoes ~ and stil counting! Be it ther path: breaking servioas ike Cash on Delivery, 2 30-day replacement pcliy, EM ‘optons, tree shiping - andot course the great pricas ha! thy olfe, everything they co revolves around mher obsession wth proving ner customers a memarabe online shopping ‘experience. Then there's their dedicated Fipkart delivery pariners who wok round the Clock to personally make sure the packages reach on time. So t's no surpise that they're & favorite online shopping destination. One of the biggest names in tho Onlin otal Industry and a Leading e:Commerce playerinthe County: Founded by Sachin Bansal Binny Bansalin Bargalore, Karnataka in 2007 Whch was started with inital capil of INF lakh contributed by the founders, 7warehouses, offices and divery centersactss India. With ‘ver 17.5 millon bookttes ised, 16 diffrent categores, mere han 4 millon egstered users and sale of $5000 tems a day ther operations are simply huge. Had 8600+ employees tl! December 2013. Had a massive Revenue of around 1200 Crores (FY 2012- 13) and plans o each 2500 Crores this year. They warked or Amazoncom betore qulting and founding their own company. Intialy they used word of mouth marketing 19 popularize ‘hor company. A fow months lato, tho company seld its frst Bock on fpkert.com- John Wood's Leaving Mirosoft fo Change tho Werld Flirt broke even in March 2010 and ‘las to have had 2 least 100% growth every quarter sirce its lounding The store startod with seling books and in 2010 branched out soling CDs, DVDs, motile hones & accessories, cameras, computers, computer czessores and peripherals, pers & office supplies, other electronic tems such as home appliances, kitchen aplances, personal care gaogets, peathoare produas ete Fipkart aims at 10 times grown and eyes at $ "tion sales Dy 2015, They wil look at bgger investments in thoi supply chain and technology. investment wil be made in lage ‘warehouses and incccased auomation of thairprocass, 9 that the product is nat ‘layad. Thoy intend to enterin to various new eategorios and expand thei current categories as wel. Everything excep! for groeries and automobiles willbe available on Flpkar in future, Togo further in the value chain, Flipkartis looking at associtions witha larger number of suppers and partners, both natinally and intemnaionaly. Fipkart, the first billon dolar Online Company rom India (going by 2015 estimates) by far the leading online stor in the nation. Now that Amazons reportedly entering Inia in eary 2014, this ews Becomes evan more sgnican, consiering that Amazon has previous), ANG Uunsuccesstuly, tfed acquiing ine conpany, wit Fipkart demanding a vey hgh buyout rice.4.2 Company Profile Flgcar, which began in 2007 ie now as per Aloca trate ankings, among the top 20 ingan woo sites and hasbeen erected with boing India's trgest online booksoler. In 2010 they branched tutto seling CDs, DVDs, mobile phones & accessories, cameras, computers, computer Acessories and perpherals, pons & ofice supplies, other electronic tems such as home appliances, ktchen appliances, personalcare gadgets heath care produc's etc. ipcart has (ver 2 millon regsterec users ana ships more nan 30,000 ltams per aay. ‘Te advantages of becuming one of tie most popuar e-commerce websites and thus generating more trafic and revenue through transactions are countered by the disadvantage ‘har Flipkart is now 2 recognizable targot for hackors. 4.2.1 Funding “+ Intaly funded by the Bansais themselves wih 4 Lakts (INR), “+ Flipcart has since then raised two rounds of funding from venture capital funds Accelingia (in 2009) and Tiger Global Management up to she tune of US$10 milion) (n 2010). ‘+ Private equity firms Carlyle and General Atlantic ae in taks to jointly invest about $150 millon to $200 milion in Fipkart,aocording to sources. 4.2.2 Flipkart’sSuecess Mantra ‘+ Great customar sonice: Fipkart users are more salisfied than tha oftheir competitors. Groat customer service has been its hallmark. ‘+ Eagy to use website, hassle free payment system: The user interface is sleek and easy 10 ‘+ Cash on dolveryCard on delivery made of payment: Thishas been a major instrument in Flpkar's success. Almost 60% of ts sales happen through ths move. Cash on detvery Created rust the mins of Indian customers whowere always weary of making payments online, “+ Focused on userexperionce: Eveyy ather @-2ommerce site, tied to ram the maximum at Amount of information pasebe ints ovary single page wheroas Flpkart focused on providing nly the relevant info 4.2.3 Future Road Map ‘+ Theyaim at 10 times growts and eyes al $1Billon sales by 2015availing your senices as ard when requited This counts for higher sales and brand 1 nawspaperreatoris 50 involved in his voaing that sometimes the content in tho adsertiscoments ceates an emational impact on him. iis this power of boing abe to evoke ‘an emotional response with the reader that oes in favor of newspaper acertsing. In cther media, especialy online media, people get perturbed by the distractions in the form of pop-ups ard othe: advertisement forms that eop flashing on andoff the seen. In act ‘experts’ points out that nstead of naving any favorable impact, these ads sone to distract the readers. Howover newspapers, point out experts, involves a foaused reading whore thore are no Aistubing and unwanted flashes of advertisements. As thereis ro distance between the readerand the story i seems thatthe reader actualy undergoes all the emotions inthe stony his leading to increase in the trust factor. Taking advantage of this rust quotiont advertisers cash on newspapers to send ther messages bud and cear among the reads. Hence, Fipkart has used advertisements in newspapers and magazines which are color, bright; mast ofthe images eonss1otNds, and nave clear messages. Here are some of he advertisomorts used by Fipkat in Newspapors and Magazines. © Online Advertising “The number ofimernet users ison a rapid rise workwide ands used by people ofall age and types. lnternethas become a major medium for communication, entertahment and isin the procees of| ‘aplecing traditional entertainment, promo preducts, and informative Modine. Some busine sos a finding that handing out 2 promo product such as pens, business cards, and mugs ae too costly anc Yyeld Ite results. Likewise, tradtional marketing forms such as television, radio, newspaper, magazines, tc, are becoming a thing of the past Internet nas algo Become a major ane eftecive medium fer aaverisng and it has be predicted hal the orfine adverising ane marketingis soon going to replace the advertising {hough tractional medias euch as television, rad, newspaper and magasines. (have picked arcund 10 advantages of online advertising (notin that order) when compared with ‘he tradtionalottine advertsina i. Wider Coverage : The onine advertising gives your ads a wider coverage ard tis lobaly wider coverage helps in making your adverisoments reach more auciences, which may utimatey help you in geting etter results trough your onine advertising campaign.‘+ They wll 1ookat bigger vestments in ther supply chain and technology + Investment will be made in large warchouses and increased automation oftheir process 50 ‘hat the product is not dolayod, “+ They intend to entorin to various new calogorios and expand their current catagories as wot ‘+ Everything except for goceries and automobiles willbe available on Fipkart in future. ‘+ Togo turherin the value chain, Fipkartis looking at associations with a lager number of suppliers and partners, doth nationally and intonatonally 4.2.4 Threats in future ‘There are no mapr oresoeable threats inthe futur. The company has bult agreat brand name, thoy just have to maintain and enhanae the same. Need to keap introducing more produc. adapting tothe changing needs ofthe customer wit fine. The entry of ‘Amazon.com in 2012 inthe Indian e-commerce Space has been ced as abig challenge to Flgkan. Howover Fipkert i a respected Brand name n India and shoud be able to compete with Amazon. Amazon being a vary big compary can bring in serious competition to Flikar, since Amazon can bear mare losses i the beginning o gain customer base. But again, Indan mattis growing ata rapic pace as access io nternet increases and people become mow awave of ecommerce sits and stat tustng the same; hence Indian market is sufficiently big atleast for those two giants to co-exist beneficially. 4.3.1 Promotion strategy ‘+ Advertisements Used in Newspapers and Mogatines Newspaper advertising works on the lundamenial of buldéng rust and contkence with the reader. Nowspapers have the greatest impact because ofthe fllewing reasons: Experts say the arector the exposure ofthe advertisement, the ngeris the period o its impact among the readers. Tharelore experts feel an advertisement says inthe memary of ‘a consumer fora ongertime, chances are quite probable that he mght opi forpuchasing or‘Targeted Audiences : whon compared with one advertising, online adertoing always helps you te reach the targeted aucionce and this helps in making your ‘campaign more profitable and gating more relevant leads. ‘Affordable : Another main advantage of online acvertising er marketing isthe much affordable price when compared wih the traditonal adverising costs. With a mush lesser cost you can adverse on the net for a waer range ot auaience ana \geogaphical locations Eaey to Track and Measure Conversion : Measurabilly and easinet2 te trackthe ‘conversion makes onine advertising mies ahead on the tradtional advertsing methods. A bt of effecive analytes ‘ool are avaiable to measure onine advertising ‘campaigns which help in more improvisation ol the ads ‘Speed : Onine advertsing is much faster than offine advertising and youcan start ‘Sending out your acs oa wider audionce, the moment you star your advertising campaign. Informative: Inonine advertsing, tho advortior is ablo to eanvey mere dotaile ‘about the advorisomont fo the audience ara that oo at rolatvely aw cost Most of the online advertising campaigns are composed ofa clickabie link o a specie landing page, wnere users get more information about the product mentioned in the ad. Flexible Payment Paymant flexi is another adced advantage of nine ‘agverising and makeing. In oftine aaventsing you need to pay the Tul amount 70 the advertising agency respective ofthe resuts. Butin online advertising there the flexi of paying or only qualfed loade, clicks or impressions. Better ROI: Since onto advertising is mainly focused on parformance based ‘payment, you ROI is sure tobe far batter whon compared with offine advertising. Easy Audience Engagement : Online advartisomon makes is easy forthe ‘ausionce to angage with your ads or products. As an advertser we wouldbe abb to {96 more feedback from the aualence and Mereby improve tne qualty of our ads. ‘going orwa etter Branding : Any form of advetising help in improving the branding and online advertising stands 3 notch high in imoroving the branding of your compary, service (or product. + Tweets about FipkartFlpkar stays connected wih is users via titlar, thoy anewar most ofthe quarios’ put up by ther customers and carefully evaluate al the suggestions which we costed inthe twitor| which Keeps the customers happy and intum keep the management of Fliskat hapoy. + Big Billion Day Sale Fier‘ ame fo de business of more than 1 billion f one day on Sth October 2014, Fipkart hac alroady achioved its salo target by 2om but most of tho deale didnt proceed anymora. AL Approx 2pm, sollor accourés cf third pary vendorson Fipkavt have bon put as ponding ie no more orders had been taken forthe day and products were shown the status as ‘out of sock. A few selected deals contrudio be feted, but essentially the sai was over. ‘The main reason behind ths move vas tat Fipkart had already received more than 3,09,000 orders in the fist 8 hours of the sae - a number that was the imitof ther enormous logistics team to process. They didnot risk taking more ordors and then fal to process thom In dspaten. A wise stratagy to avoid bad mouthing on ‘ate delay, noweverlmitng the sale i sucha way dil only lead to move complaints rom the users. Throughout the ealo, osialmediawas anyway abuzz wth complaints oganat the site crashing and giving errors, orcs disappearing from shopper arts anc coals going cut of stock as soon asthey went ive. Online shonpers have been continuously checking Fipkart {ever hour for new dealsand Fipkart idntinfom its users about the sale end. 44 Primory Data Analysis & Interpretations ‘Number of respondents and their distribution RespondentsSurvey of 20 reaponden, where number of female was 10 and tha of male were 10, 1. Doyou prefer online shopping? “The irequoncy of purchasing orline k wean higher in caso of male than in cave offemales because ‘women are more receptive 1 other people's opinions.mate impulse purchases and devote alt of ‘ume to shopping. 2. F*No' then why? Seautity Quality of Product Delivery Time Physically Fel the Product before buying Physcalyfeeltheproduc before buying Delver Time aun oF rower Payment Security Quality of poduct, inability to tach of fel the product online and payment af security ate the major impediments for both the gendess en doing online shoppingIf*Yes" then how offen do you purchase? 5 Always + ofen + Occasionally + Rarely rarey occasionaly nen Mle aways Frequency of purchase done by Males higher i comparion to female. Most of the males purchase occasional while most of the females purchase rarely, Do youhave say specific oline shopping destination? Flipkart.com Jabong.com Ehyy.in ‘Amazon inFighar.cam Jatone.con “The frequency of purchasing from Flipkart by both males and females istmare ia comparison to other ‘nlize shopping silesbecause the word of mouth ststegy by Fipkartis the mos. successful means of ‘making people aware about them and thelt products, Ths success cat only be puined tough satisfied curtoness, 5. Haye you ever heard about Fipkast? + Yes ver No Flipkatt his siocesfully placed itself'into the prospects mind making itthe India’s lugs Dnline tore wih huge range of products, 6. How di you come to know about Flipkar’? Tale vision © Frends© Newspaper and magazines + Advertisements on websites 2 remake Televison "frends Newspaper and Advertisement ‘magazine on websites ‘Mos of the people came to know about Fipkart hreugh te vsioa fllowedby friends and online ‘advertisements, This proves thai word of mouth sraegy by Fipkart is ke most successful means of ‘making people aware about them and thelr products. This success ca only be gained Uurough sisfied curtomers who sct ax advocates for your products, 7. Did you ever make a purchase from Fliphart™ * Ye + No ‘Mos ofthe males purchase frou Fipkast. The reason is whi it comes to purchases, mate shoppers just wart to get what they need and get it fst. ave and access are important componente fr thes.A. What category o© products do you purchase fom Fipkare Roots aad Stationary eerie lems ‘Mobile and accessories Heath and Beauty products ‘Music, movies and posters Cameras Watches camerse mremale Heath & Beauty protucs ine: Mobile & Acessories ‘eokst Statoney ‘Males purchase mote categories of products thet females, Books and stationery, Electonics, Mobile & accessories, cameras, waches avd others (hag, belts ete.) are purchased more, Books & sationery and electronics itemsare more famous 9, Which of the following features do you like about Fipkarr? Bite of arching Discount Customer service Delivery ime Packaging Exchange OfferPrcaging Delvery ime Boone casteme Seve Nose taseot searching 0 02 04 06 c@ 1 12 ‘Apart fom packaging and delivery tine: Exchangs olfor cantomer sowie, discount dani esse of searchin ate the featites which the people like shout Fipkart. 10, What youdoa’t lke about Flipkart? Delayed delivery Packaging [Lass discount as comparal to other e-commerce sites ‘No complaints os Devas DeWvery Package Less Discount No complaints 3 Delayed delivery.les discoun’s available as compared to other e-commerce sites are the main easons for disliking Fipkat11, Doyou preter online shopping over nom shopping? + Yee Chart {60% of the respondents does not prefer online shopping while 40% of the people pefer shopping ‘online rather than shopping outdoors 12. IF No then why? + Invecured about paying oaline Quality f the product = Love shopping outdoors + Feat the procs physically before buyingChart snircecurty Ss Qaaty ofthe prose Love stooping oitdoors Fel the podictsbeoresuving Most ofthe people liketo feel the produets before buying ther, Therefore they prefer buying ‘eutdoor. 13, Ifyesahen why it is preferable? Convenience Widerange available Discounts Unavailability of siores nearby Chart Convenience mWide ange" Dicounts sUnevalabityd storesnearbyConvenience being the main reason why mostof then wart to buy online. Wide range of products we available online. They canchoose whatever hey want as per there needs, 14, How do you rate the online shopping experience from Flipkart? * Poor © Average © Coot © Very good * Excellent 2 as make 1 female os Foor | Average Good Verygood Excellent “The overall experience from Flipkatt is shown above.CHAPTER 5 : CONCLUSION “The founda of Pipkart have probably conquered tei dears with the amazing siecess oF Fipka Fliphartis something which hasreally opened up the kuin e-commerce wrk aid tht also i a tig way. Iwas never going tobe easy since India has had bad pust experiences withe-commerce trading It was notan easy segment to break iato, peuple were ery particu in paying money fer scruething Which they had not seen and received. The trust wasmising ithe Indian customers. So wha Flipkarthad to do was to instil rust and faith in their customers. And they did exacly the same Fliplart began with selling books, since books are easy to procure; taget murket which reads books is inabundance, books provide mone margin, are.eaay to pack and deliver, do net gst damaged ia ‘uansit and most importantly books are not very expensive, so the amount ofmoney a customer has to speni to try out ones service for one time is very minimal. Flipkat sold only books fo the Fist 10 years “The company hasbuiltagreat brand name, they justhave to mainain and eshaace the samme. Need to ep inrodicing more pacts, adapting to the changing teods ofthe customer with time. The entry ‘of Amazoncom in 2012 in the hadiun e-commerce space has been cited as abi challenge to Flipkat. However Fipkartis respected Brand nar in lads an should be able o compete with Amazon, ‘Amazon beng very big company cat bring in serious competition t» Fipkar, singe Amazon cat ‘pear more losses in the beginning to gain cusiomer tase, But again Indkan market is growing at & ‘pid pace as access to internet increases and people becoine mote aware of e-commerce sits and ‘tart wating the same: hence Indian markat is suffcienly big at ast for thase wo gisnts to co-exist ‘eneticialy. Findings + Frequency of puichsse is more ansong Men, + Word of mouth was more influential in promotion as many people were made aware by thet Thiends, + Mest ofthe poople are satisfied withthe services of flipkart and are wiling to recommend ther to ‘make purchases fom fpr, + Except packaging and warranty all others ate considered important the decision making of| ‘nlite purchases. ‘Almost al the factors that Flipkat is focusing onto ate of high importance to the people. +The commercials used by Flipkart are effective enough to convey the message since the ads are fateresuing enough to gaia attention and position ist ino the prospects mt.‘Suggestions: Flipkart has successfully plazed itself ito the prospects mind making tke India’s largest ontine stove with luge range of products, ButFlipkat sill aoeds to workeon ther care competence that is ‘books and stationery tens, ‘With the entry of Amazon.com it wil bea ige competitive market for Flipkart anil hence wil have to position self beter. They need to get aggressive at providing better services which can be filfilled by reducing the delivery tine, seling second hand preduets which willincrease consumers ‘afordabiily much more and entance penetrtion ino the market, “They can even have Weir reUlslores Which can give an access LO coHsUIEE Wo Fel ad analyze the products which wil help them win the eousuers fit, Price will til be «factor as amazon being a huge company will use its economies of swale toremawe their competitors from the market; therefore they need to be more competitive an that aspect. Be very oeused on consurners and build amazing experiences for the customers.BIBLIOGRAPHY www flipkart.com www thehinducom/arts/magarine/artidle3290735.ece rw veciele.com/news/2012/08/14/news roundup fliskart-raise-100m-new: investors www sta tupdunia.com/interview.with-fipkart-founder-binny-baneal-776 www Facebook.com /fpkart www hindustantimes.com/technology/industrytrend/how-Flipkart-broke-indias~ online-shopping-inertia/so-article1-780440 aspx Images from Google Imagescom Commercials from Youtube comANNEXURE- Itt Supervisor's Certificate “This is to cetiy that MRL NAVNEET SHAH 2 stident of 8.Com. Honours in Aecounting & Finance of THE BHAWANIPUR EDUCATION SOCIETY COLLEGE under the University of Calcutta has worked under my supervision and guidance for his Project Work and prepaied a Project Report with the ile “RETAL SECTOR-ONLINE SHOPPING : FLIPKART which he is submitting, is his genuine and original work to the best of my knowledge SIGNATURE: sd/- PLACE: KOLKATA NAME: DATE: DESIGNATION: NAME OF THE COLLEGE : THE BHAWANIPUR EDUCATION SOCIETY COLLEGEANNEXURE- IB Student's Declaration I hereby declare that the Project Work with the tlle RETAIL SECTOR-ONLINE SHOPPING : FLIPKART submitted by me for ihe panial fulfilment of the degree of B.Com, Honus ia Accouating & Finance in Business under the University of Caleuna is my corigital work and has aot been submited earlier to any other University Mntitution for the fulfilment of the requirement for any course of study, also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done hy others or by me However, extracts of any iterate ‘which has been used for this report has been duly acknowledged providing detals of such Iiteranure in the references. SIGNATURE: sd/- NAME: NAYNEET SHAH ADDRESS:316, CANAL STREET, SHREE BHUMI, RAJSHREE APPT., KOLKATA-700048, REGISTRATION NO: 017-XXXX-XXX-12 PLACE: KOLKATA, DATE: