CHAPTER-4 ANALYSIS

4.1FLIPKART'S FINANCIAL ANALYSIS

4.1.1Turnover ratio

S.NO RATOS 2016-2017 2015-2016 2014-2015 2013-2014

1. Inventory
turnover 7.02 times 5.75 times 5.03 times 7.41 times
ratio
2. Debtor
turnover 12.26 times 12.17 times 9.13 times 12.09 times
ratio
3. Creditor
turnover 5.85 times 5.00 times 3.50 times 3.44 times
ratio
4. Average
collection 30 days 30 days 39 days 30 days
period
5. Average
payment 61 days 72 days 103 days 104 days
period
6. Working
capital 4.83 times 4.88 times 2.75 times 4.86 times
turnover
7. Current
assets 2.45 times 2.35 times 1.56 times 2.13 times
turnover
ratio

Current Ratio: The current ratio of the company is increasing in all the years,
with the highest increase in the year 2014-15. This is due to increase in the
current assets of the company namely sundry debtors, cash & bank balance
and the loans and the advances made by the company. Again in the current
year it is increasing which is 2.06.

Liquid / Quick Ratio: Sundry debtors and loan and advances also affect the
quick ratio of the company. The increase in these sundry debtors and the loans
and advances may decrease the profitability of the company. Usually, a high
acid test ratio quick ratio is an indication that the firm is liquid and has the
ability to meet its current liabilities in time. As a rule of thumb is 1:1 is
considered satisfactory. In FY 2013-14 the quick ratio is 0.83, so we can say
that this is not completely satisfactory. It may not be able to meet its current
liabilities on time. Whereas in the FY 2014-15 it is 1.02, which can be
considered satisfactory and in the FY 2015-16 it is 0.86 as well as in 2016-17
it is 0.72 which again can be considered non satisfactory. It may not be able
to meet its current liabilities on time, which is not good sign for the
enterprises.

Inventory turnover ratio: The inventory turnover ratio shows how rapidly
the inventory is turning into receivables through sales. This ratio has been
continuously increasing since FY 2014-15. A high inventory turnover
indicates the efficient management of inventory because more frequently the
stocks are sold. So we can say that enterprises have a very good turnover ratio.
Thus Flipkart has a very good inventory management.

Debtors Turnover Ratio: The Debtors turnover ratio, which shows that the
number of times the debtors are turned over during a year. But the debtor of
the company is reducing which shows that the company is not properly
managing its debtors. There is no rule of thumb, which may be used as a norm
to interpret the ratio, as it may be different from firm to firm depending upon
the nature of the business.
Current Turnover Ratio: It is establish the relationship between net sales
and current asset indicating how efficiently they have been used in achieving
the sales. It measures the efficiency with which current asset employed. A
high ratio indicates a high degree of efficiency in current asset utilization and
vice-versa. In the FY 2013-14, 2014-15, 2015-16, 2016-17 it is 2.13, 1.56,
2.35 & 2.45 respectively. So it seems that although in the FY 2014-15 it is not
good, but it is good in the previous year and next year, i.e. In the 2015-16 and
2016-17 the ratio is very good. So it means that although the firm has
staggered a bit but still it again managed to regain and recovered. In the FY
2016-17 current assets is being utilized in much better way compared to the
FY 2015-16.

Working Capital Turnover Ratio:

In the FY 2013-14, 2014-15, 2015-16, 2016-17 it is 4.86, 2.75, 4.88 and 4.83
respectively. So, it seems that although in the FY 2014-15 it was not good but
in the year previous of 2008-9 and also after 2014-15 it is good, i.e. in the FY
2015-16, FY 2016-17, the ratio is very good. So it means that although in the
mid the firm staggered a bit but still it again managed to regain and recovered.

Gross Working Capital:

It is clear that Gross Working Capital has increased heavily as compared to
year 2013-14. If we compare the Gross Working Capital of the years 2014-15
and 2015-16, there is slightly difference. It denotes the total working capital
or total investment in current assets. Sufficient working capital helps the
company to avoid stoppage of work and effects on profitability. The company
can also get an idea about the required funds for maintaining current assets.

FLIPKART MARKET EXPANSION

Flipkart Case Study: Its Digital Marketing and Strategy in times of COVID-19!
Here is one another post popular flipkart case study by CIDM institute. Flipkart Co-founded
by Sachin Bansal and Binny Bansal in October 2007, Flipkart.com paved the way of e-
commerce revolution in India. Both Bansals have worked in Amazon and had technical
expertise as a coder. So, technology had to be the backbone of this Indian venture. Flipkart
started much before the digital Indian government’s ‘Make in India’ and digitisation
initiative. With the humble starting as a virtual bookstore, it is now the country’s largest e-
commerce player. It has grown by leaps and bounds and has its delivery network for smooth
and faster delivery. Paytm, OYO rooms case study and Zomato case studies are also very
popular Indian companies which are taught in Harvard bruises

hools.

The Journey of Flipkart: From an online bookstore to the e-commerce giant, it is!
Flipkart case study shows high values and high technical background are the base of this
company. The e-commerce giant was the first to offer an exclusive feature such as 30-day
return guarantee, and Cash on Delivery. It worked well not only for early adopters but also
for the price-sensitive segment. It helped in easing out the transition of its Indian customers,
making the switch from offline to online shopping smoother and streamlined. From books to
exclusive launches with OEMs, this e-commerce unicorn has its product offering spread
across twelve broad categories such as computers, camera, kitchen appliances, healthcare
products, stationery items, TVs, home theatre, and many more.

Flipkart Online Music Platform Flyte was a Failure

Flipkart had also launched a music platform called flyte and shut it down little over a period
due to poor customer transactions for a single track model. Books seems to be okay to begin
with but launching mobile phones establishing into an expensive platform hadn’t been
particularly suitable.

Flipkart’s Customer Relationships Case Study

Flipkart cashed in on the intellectual property of books and banked on the consignment
model of procuring products on demand. It signed up with two models in Bengaluru, where
it is based out of. The e-commerce would procure a book from any of the dealers; pack it,
and courier it to the customer. The company was receiving over 100 book orders per day
and providing country-wide shipping. The zeal to succeed, extend the customer base and
offer excellent services was high without letting the limited resource come in the way. Since
there was no money to hire cutting-edge CRM or customer support personnel, the founders’
phone numbers were listed on the website. The idea was to focus on customer services, and
customer satisfaction so that when the company expands, it has their trust and base. The
user experience and technology have always been core expertise of Flipkart. The website
loads faster and is mobile-optimised and offers hassle-free user experience. The e-
commerce website now has an app too, which is light, and easy to browse as well. Flipkart
started early and had the head star when there were no competitors, and they could grow
unabashedly. They had room to grow, make mistakes and learn from them without virtue
signalling.

Flipkart’s Opens Its Warehouse

With time, Flipkart opened warehouses in Bengaluru, Delhi, Mumbai and Kolkata and went on to work with more than five hundred
suppliers. The e-commerce giant handles more than eighty per cent order through its warehouse, which is centrally managed and
governed for quality services. In the e-commerce domain, Flipkart competes with the international conglomerate Amazon and Snapdeal at
the home turf. It acquired Myntra and Jabong, once the leading names in apparel and established itself right there in the centre. The e-
commerce giant has pursued the expansion strategy with such enthusiasm that it took Amazon by the horn in the smartphone segment.
Flipkart also owns (acquired) a UPI or Unified Payments Interface-based mobile payment-slash- digital wallet service called PhonePe.

Case study on Flipkart Became Indian E commerce Giant

The e-commerce giant was valued at $20 billion by the U.S. based retail chain, Walmart,
which acquired seventy-seven per cent controlling stake in the company.

It also took over a fledgeling online electronics retailer, Letsbuy and a Delhi-based mobile
marketing automation startup called Appiterate to boost its mobile services. Myntra still
operates as a standalone e-commerce market, focused on offering fashion and home decor
at pocket-friendly prices.
Flipkart has several in-house brands such as Citron, Smartbuy, Billion and MarQ. Billion
proved to be a damp squib and couldn’t take off. MarQ ran into branding controversy with
Marc Enterprises. The company also launched a 55-inch Android smart TV 4K that went as
quickly as it came.

Flipkart Milestones (Or not) achieved through the years

Year 2012
Case study on Flipkart shows they had tough-times. The Enforcement Directorate raided
Flipkart offices and seized documents and computer hard drives to look into the alleged
violations of FDI regulations.

Year 2014
The Regulatory Authority found Flipkart to be in violation of the FEMA. Several competitors,
including Future Group of Big Bazaar fame, aren’t particularly happy with the discounts
policy of online retailers. This is why it filed a complaint with the Ministry of Commerce and
Industry, GOI for predatory pricing and urged to regulate online marketplaces for a
symbiotic existence. This case study on Flipkart showing various attributes about how a
company face legal issues and then come out of it with implementing proper business ethics
with customers.

Year 2015-2017
The primary rival company, Snapdeal also refused its acquisition offer valued at US$ 700-
800, for a more lucrative offer of at least US$1 billion, which didn’t prove to be fruitful for
the former. Snapdeal never could recover from the blow of its losses.

Flipkart Big Billion Day Case Study- A revolution

The concept of Big Billion Day (On the similar lines of Cyber Monday) by Flipkart during the
Diwali season boosts the company’ sales like never before. As per an estimate, the company
sells goods worth US$ 100 million in less than twelve hours during this sale. However, it
hasn’t been without its fair share of criticism and social media controversies over price
bumps, shortage of stocks, technical glitch and delayed delivery. Flipkart not only
revolutionised the e-commerce space but also was the trendsetter in creating an ‘app only’
space. Furthermore, its standalone subsidiary Myntra blocked access to its desktop website
and moved to operate through its app. While it was an unprecedented move, it was an
abrupt and forced one. The users weren’t ready to make the transition, and thus the sales of
Myntra dropped to ten per cent. Flipkart traced its steps back and reinstated the website in
2016. However, at present, the user experience offered by the app is phenomenal! This
microsite puts forth blog, style advice and products optimised for mobile browsing.
Similarly, in 2015, Flipkart launched a pop-up on its desktop website to encourage users to
download its app. Upon seeing the lukewarm response on Myntra, Flipkart shelved its plan
to go for an app-only experience. However, it launched its mobile website called Flipkart Lite
in November 2015 to enable light smartphone browsing.
Flipkart Internal Challenges Case Study
Case study on flipkart has become very interesting to know the facts that challenges never
dies to stay on top of the race. While the company and customers couldn’t stop gushing
about its lightning-fast delivery, the ground realities were a stark contrast from what was
presented. Its in-house logistic arm, eKart ran into trouble as its 400 employees accused the
management of forcing them to work in unhealthy working conditions such as the lack of
basic amenities such as clean toilets, medical assistance for riders, e xtended workhours,
seven-day week and so on.

After a delivery executive,Nanjunda Swamy was murdered by a customer over a CoD

product, Flipkart launched a safety initiative called ‘Project Nanjunda’ for its delivery agents
and an SOS button.

Year 2017 – A Successful Year For Flipkart

This year Flipkart left Amazon India behind and grabbed a significant fifty-one per cent share
in the smartphone segment. It sold 1.3 million phones in just the first twenty hours on
September 21, 2017, on Big Billion Day as compared to 2.5 million phones in five days in the
year 2016. It also shows the adoption of users towards online shopping vis-à-vis.

In the year 2017, the e-commerce giant had more than 40 per cent share of the Indian e-
commerce market. Its presence is also bolstered by its aggressive merger and acquisition
policy.

Year 2018 – Money Came but Company Gone

This case study on flipkart turned its gear in the year 2018, now company gets the money it
was looking for and find time to exit by giving challenges to some other shoulders.

Global retail giant, Walmart won a bidding war against Amazon and paid US$16 billion to
buy a majority stake in Flipkart. This acquisition was the world’s largest e-commerce
takeover. Walmart’s shares tanked badly on the New York Stock Exchange fearing the
former’s acquisition of a loss-making entity. Sachin Bansal also left the company soon after
the acquisition. Now, the Flipkart employees, including the top management report to CEO
of Walmart e-commerce US, Marc Lore.

On August 18, 2018, the acquisition finally saw the light of the day. Walmart also provided
equity funding worth US$2 billion to Flipkart.

Year 2019 – A new start

Flipkart case study has taken many turns and in 2019, the startup and the U.S.based
Authentic Brands came together to license and manage Nautica stores in India.

The company also invested $4 million in a reward platform, EasyRewardz to boost customer
engagement. The year 2019 also saw the launch of Flipkart Video, a direct face-off in the
direction of Amazon Prime Video. The initial content is sourced from the streaming
platforms like Voot, TVF and Viu. Much like Zomato, it also started streaming original
content as Flipkart Video Originals.

Year 2020 – pandemic outbreak

Major e-retailers like Flipkart and Amazon halted their operations and services on March 25,
2020,in the wake of coronavirus pandemic outbreak. Later, Flipkart partnered with Uber
India to deliver everyday essential items in metro cities like Mumbai, Delhi and Bengaluru
amidst COVID-19 national lockdown. This partnership enabled hundred and thousands of
India to stay at home and support in breaking the chain.

Sachin Bansal, the co-founder of Flipkart, said it a long ago what the world leaders realise
now.

“IT WOULD BE A MISTAKE IF THE INTERNET AND TECHNOLOGY AREN’T CONSIDERED AS A

STRATEGIC SECTOR AND WE KEEP ON DEPENDING ON CHINA TO BUILD THAT FOR US…WE
HAVE THE CAPABILITY AND WE HAVE THE KNOW-HOW TO DO THIS IN INDIA TO MAKE IT
HAPPEN FOR US.”

Operation and Flipkart Business Structure Case Study

Flipkart works through a complex business model enabled by several business entities based
out of India and Singapore. In the wake of new FDI rules to reduce dependency on one
vendor, the company stopped selling via its in-house vendor, WS Retail. Later, to reduce its
operational expenses, it was sold to a syndicate of investors.
What are Funding Source of Flipkart?
Case study on flipkart funding source is very exciting, its very hard to see such success and
digest it with ease. Flipkart raised money from investment partners in several rounds. Here’s
the year-wise roundup.

2009

While the co-founders spent mere Rupee four lakhs on setting up the website, it went on
toraise US$1 million in the year 2009 from Accel India.

2010-2011

In the year 2010 and 2011, it raised US$ 10 million and US$ 20 million respectively from
Tiger Global.

2012

Flipkart also raised its final round of funding worth US$150 million from Naspers Group and
ICONIQ Capital in 2012. It also raised an additional round of financing of US$200 from its
consortium of investors-Accel Partners, Iconiq Capital, Tiger Global and Naspers.

2013

Morgan Stanley Wealth Management, Dragoneer Investment Group, Sofina SA, Vulcan Inc.
also raised a US$ 160 million for the company.

2014 Yuri Milner’s DST Global as well asthe existing investors such as Naspers, Iconiq Capital
and Tiger Global, raised US$210 million for the company. The speculations were rife that
the company is looking for the U.S. listing in 2016 and is striving to build funding for at least
US$500 million before that. Later this year, the e-com retailer went on to raise US$1 billion
for Tiger Global, Accel Partners, Morgan Stanley and a Singapore-based fund GIC.

Case Study on How Flipkart Valuation Increases?

Flipkart managed to increase its valuation up to $11 billion as it raised $700 million in
December 2014. This case study shows us how to take the business using investment and
how can we further valuate our company to make it bigger.

Later this year, the e-com retailer filed with Singapore-based ACRA to become a public
company. Once its funding capital reached $700 million, its number of investors exceeded
and it went on to add new investors such as Steadview Capital, Qatar Investment Authority,
Greenoaks Capital, T. Rowe Price Associates and Baillie Gifford.
2015

Flipkart continued to acquire considerable funding (US$550 million) from its investors and
managed to raise its valuation to $15 billion. In August, it had raised nearly $3 billion from
sixteen investors in twelve rounds of funding.

2017

Flipkart raised its valuation to US$11.6 billion with another funding of US$1.4 billion from
Microsoft, Tencent and eBay. Softbank Vision Fund also invested US$2.5 billion in the
company during this year.

2018

In September, Flipkart’s Singapore entity put ₹3,463 crores into its Indian Flipkart for
regulatory formalities.

Digital Marketing Case Study on Flipkart

Like Paytm, Flipkart realised that social media platforms are best utilised as humanely as
possible. It has used its Twitter account to promote products, organise contests and
generate some organic traffic. However, like any other brand, the e-com retailer went
through retractions, witty wars of words and apologies. Flipkart won several awards in gold
category at SAMMIE 2018 for creating a seamless brand experience across social media
platform, making the best use of it to generate leads, revenues and for launching a product.
Case study shows that flipkart must have hired the best digital marketing company who
helped it for a successful business plan.

Flipkart ‘You’s Feed’

Every brand launches an annual sale, but Flipkart took hyper-personalisation a step ahead
with a personalised customer feed called You’s Feed. This customer-oriented, algorithm-
based and automated feed is user-based platform advertising, bringing you products that
you might have referred to or has shown interest at some point. Its case study shows us
various ways to look from the perspective of customers for a successful business
relationships.

Flipkart today - COVID strategy

The COVID crisis in India this year has resulted in many brands stepping up in the country’s
hour of need. Flipkart, being a giant was no exception to this, despite being heavily
restricted by law to keep their business from running during this time.

For frontline workers and consumers

Together with parent company Walmart, Flipkart announced that it would donate INR 46
Cr worth of medical supplies to support the fight against coronavirus in India. This includes
the donation of protective equipment such as N95 masks and medical gowns, and
equipment to NGOs and those working in the frontlines. Additionally, Walmart is donating
7.7 Cr to NGOs - Goonj and Srijan in India, which will be used to collect food, medicines
and other equipment for distribution.
Additionally, Flipkart also partnered with Tata Consumer Products so as to ensure a
greater supply of essential food and grocery items for their customers.

Flipkart #SmartBuy also launched hand sanitizers and surgical masks in April, to fight the
shortage. Not only that, Flipkart also joined forces with Uber and Meru Cabs in India, to
deliver essential items to consumers in Delhi, Bengaluru and Mumbai.

For their delivery network and partners

Flipkart has stepped up the medical cover they provide for those working in their supply
chain network - including local stores, as well as individuals. Their insurance provides
protection against lost income during the COVID crisis as well as medical insurance for
outpatient care, consultation and pharmacy requirements.

Flipkart made sure to take care of the ecosystem that drives their main business. This, of
course, is something that will help them win big in the long run, and bounce back once the
economy recovers from the crisis.

Flipkart best campaigns

Flipkart Kidults
No discussion about Flipkart is complete without mentioning their Kidults campaign
launched in 2014. Aimed at spreading the word about Flipkart fashion, this campaign
places stylishly clad kids in everyday situations that adults encounter - of course a lot of
the creatives feature influencers in order to add starpower. This campaign was a hit and
has been used extensively till as recently as 2019.

Flipkart worked with Loewe Lintas on this campaign and it’s clearly had a successful run.
The idea of having kids act like adults is quite refreshing, and has an entertainment factor
which keeps people hooked and coming back for more of these ad creatives. Of course,
roping in star couples like Ranbir and Alia brings its fair share of advantages.
Flipkart's GenE
In December 2018, Flipkart launched an ad campaign to address gender inequality issues
which has often plagued India.

The concept is pretty clever - Flipkart launched a new digital campaign featuring GenE -
Gender Equal which features a new generation of children engaged in atypical activities
associated with their gender. The idea was to raise kids without any rigid gender norms
and allow them to realize their full potential. Flipkart, in tune with this campaign, also
launched a Gen E store on their website - a unisex kids clothing line.
This campaign stands out for me particularly because it’s about raising a future generation
that aims to have a lower disparity between sexes. It’s also about conscious parenting
which is definitely the need of the hour.

Big Billion Day

Flipkart has gone all out with its Big Billion Day campaign in recent years. It’s a sort of
festive Black Friday for India. Last year, they even managed to rope in the evergreen
Amitabh Bachchan for the launch of their Big Billion Day sales.

The idea is to show India in the various stages of preparation for the Big Billion Day -
celebrities play iconic characters - e/g., Amitabh Bachchan plays “Don” - and all of these
characters are as excited about the offers and deals from the Big Billion Day sales as the
everyday people these ads are targeted at.

It’s interesting to see how Flipkart is different from Amazon in its approach to festive
marketing - since both these two e-commerce giants have huge sales during this period.
While Amazon bets on deals, Flipkart is looking at star power in order to bring in a greater
audience to their website. Of course, the ultimate winner here is the consumer, since they
can avail of the exciting offers that both shopping websites bring their way.

India’s next fashion influencer

Myntra (owned by Flipkart) took fashion to television last year when they partnered with
Zoom to launch their TV show : India’s next fashion influencer . The idea was to have a
reality TV show aimed at finding India’s next big fashion guru and to reward their fashion
genius. Bollywood star Sonakshi Sinha judged the show and mentored contestants.
Contestants were asked to put their best looks together and share it on social channels.
The main aim was to enrich both the influencer community as well as bring visibility to
Myntra and e-commerce as a whole. The winner was Tanumita Ghosh. Of course this was
Myntra’s masterstroke, and enabled them to effortlessly bring both the online and offline
worlds together.

Flipkart’s VR Campaign
VR is definitely the future and is set to change life as we know it. But Flipkart - always
experimentative - is an early adopter of technology. They used VR to gamify their Big
Billion Day Sale campaign last year, and match their offers and deals with the full moon
since it is auspicious and closely related to the festive calendar in India. Their ad campaign
ran on days when there was no full moon, but, with the help of VR, users were able to see
a full moon but obscured by clouds. Gamification prompted the users to blow into the
microphone to move the clouds away revealing both the full moon and an exciting new
offer. This campaign went super well, garnering 5 million views and a CTR of 2% which is
10x the industry average.

FLIPKART COMPANY EXPANSION

Flipkart e-Commerce Company was first idealized by Sachin and Binny Bansal in
2007. Both brothers are former Amazon executives. The Bansal brothers were
able to successfully design a business module based on their experience and
expertise. Their business scheme stood promising that led to the initial funding
process from external sources.

Initially, the Bansal brothers invested in a total of $5,600 towards developing an

ideal online book store website. 2 years after the initial launch, Flipkart platform
stood potential enough to raise $1M from Accel India. They later formed alliances
with Tiger Global, raising in a total of $10M in 2010 and $20M in 2011.

Flipkart had also reported that they have completed the 4thround of funding
phase from MIH, a subdivision of Naspers Group and ICONIQ Capital. These
funding were harvested for the very reasoning to further explore new business
opportunities and venture to new business endeavors that would further improve
and grow Flipkart as a company

Business Model Canvas of Flipkart

1. Flipkart’s Customer Segments

Massive Urban Market – who prefers to buy online

 o Flipkart has grown into an enormous platform for a vast marketplace in
India for the time being.

o Currently, Flipkart marketplace is only open and available

for deliveries to be made anywhere within India.

Discount Lovers – Promotional Offers & Special Pricing for Customers


o Flipkart offers its loyal and new customer(s) promotional offers & special
pricing during the holidays.

o They also provide branded products at reasonable prices – This is also a

great way to ensure diligent treatment towards loyal customers and
help further introduce its products to potential marketplaces.

Book Lovers Market Trend Analysis


o Flipkart originally started selling books and now have expanded to
major electronics at a massive scale for adults and children.

Customers who prefer convenience and accessibility


o Flipkart products are easily accessible through their official website.

o Flipkart products can be accessed through Flipkart’s software

applications programs. (Google Play & iTunes)

Customer targeted by Product


o Flipkart’s most success is driven by the smart analytics that is evaluated
for the market places.

o Its social media platforms are another set of sources that help the
analyst identify what consumers are into nowadays, and what is the
recent trend.

o Flipkart targets those products that are in high demand to potentially

make a sale.

2. Flipkart’s Value Propositions

Exclusive Product Launch:

o Electronics

o TVs & Appliances

o Baby & Kids

 o Home & Furniture

o Sports, Books & More

Unique Features

o Customer Login & Signup area

o Sell on Flipkart as a Seller

o 24x 7 Customer Services

o Advertise with Flipkart

o Software Application (Dual Interface)

o Flipkart Assured– badge for high-quality products and faster delivery.

Convenience

o Before the Flipkart launch, India consumers used to purchase such
goods directly from Amazon, Ali Baba, Snapdeal and other competitive
platforms that offer almost the same types of products and services.

o When Flipkart launched with competitive products with low prices, the
Indian consumers’ interest rose in the local Indian Amazon, i.e., Flipkart.

Wide Selection

o Users are able to find just about any type of product, whether it is for
the holidays, searching for a gift or just doing some general shopping.

o Flipkart Users are able to search through thousands of different

sellers and review the listings that they have.

o Each listing (product) is listed with product specifications and details.

Users are able to search through category or through smart search (filter
engines)

Cheap Products & Highly Trusted


o One of the best things about Flipkart is that fact that they offer their
clients to review the listing from these sellers and other relevant shops
that offer their products at the lowest prices as compared to the
markets.
 o Because of their policies, due diligence, and the positive feedbacks,
Flipkart is highly trusted and recommended by customers who have
used the Flipkart services before.

o Trust credibility factors help to increase business potential revenue

streams by reference or through retention conversions.

3. Flipkart’s Customer Relationships

Flipkart aims to establish a global recognition as one of the leading e-commerce platforms.
Since the initial launch in 2007, Flipkart has built a sound relationship for their loyal
customers and followers.


o Flipkart ensures to provide its customers with the best deals and
offers that are more beneficial as compared to other competitive
companies.

o Flipkart has created a reliable platform that provides quality products

with customer reviews.

o Flipkart ensures to provide quality customer support via phone, online

chat or email available 24-7.

4. Flipkart’s Key Activities

The following are the major key activities that are conducted daily that help to deploy all the
operations of Flipkart


o Design, develop and optimize its ingenious online platform specifically
for electronic commerce products for the Indian Regions.

o Manage the supply chain network of its products including logistics,

warehouses, etc.

o Hire, train and retain the workforce.

o Product catalog– maintain product catalog with images and videos.

o Build and manage sellers’ network.

o Establish a partnership with distributors and other manufacturers.

o Marketing & Sales promotion including developing an effective Pricing

strategy and promotional offers and discounts during shopping peak
seasons and holidays.

o Establish a secure payment portal.

 o Customer support (24 – 7) via phone, online chat, and email.

5. Flipkart’s Channels
One of the most significant reasons for Flipkart success is the powerful combination
of Flipkart revenue model and other digital marketing schemes that spread
like wildfire across the internet, creating its online presence, awareness and helping to
further channel Flipkart for opportunities.

Website

o Flipkart Official Website products

o Seller Program

o Affiliation Programs (promotional content)

o Flipkart Plus

The website alone provides additional features, promotional deals and other exclusives that
helps it landing pages convert.

Software Applications

o Flipkart Online Shopping App

o Flipkart Seller Hub

Additional accessible platforms like Flipkart software applications help potential customers
to process other potential orders.

Social Media Channels


o Facebook

o LinkedIn

o YouTube

o Instagram

o Twitter

o Google Plus

Through the social media channels, Flipkart is able to publish blogs, news and other
promotional material that helps to increase the awareness of Flipkart. Thus, increasing new
revenue streams.
6. Flipkart’s Key Partners
In association with the branding phase, Flipkart was built with the assistance of its primary
key partners. Each associated member has relevant experience and knowledge in their
respective professional field, and took part to make company business models, and other
endeavors to motion:

Publishers & Authors


o Flipkart was originally launched as a book buying platform, offering a
wide selection of book and eBook for readers to select and purchase.

o The company soon flourished and expanded its line of products,

converting the business model to the wider side of the spectrum.

Subsidiaries (Myntra, Jobong.com, PhonePe, eBay.in and EKart, LetsBuy)


o Flipkart’s subsidiaries provide a wide range of products to generate
additional revenue with higher profit margins.

o Most of these subsidiaries were launched prior to achieving the financial

goals through their financial investors and capital start-up grants.

Walmart – (Owns 81.3% of Flipkart)


o Walmart is an American multinational retail company that operates in
multiple sectors.

o Headquartered in Bentonville, Arkansas. On May

2018, Walmart acquired 81.3% of Flipkart.

Sellers, manufacturer, and distributors of products

Flipkart massive inventory system is supplied by some of the prime titans in India:


o Sellers – Sellers that sell their products or services via Flipkart through
means of operating a “store-presence” on the Flipkart platform.

o Flipkart is responsible for delivering the goods. However, the supply

chain (products or services) are directed by the supplier/sellers’ end.

o The sellers are responsible for fulfilling the orders that they Sellers claim
to sell/promote.

Payment partners
Flipkart has partnered with Banks, Credit card, e-wallet companies to offer secure payment
service on its platform.
7. Flipkart’s Key Resources
Initial resources that makeup Flipkart, consists of a group of multiple investors that help
fund the structure of Flipkart operations and for further development.

Resources (2007- Present):

Flipkart venture capital funds partners;


o Accel India

o Tiger Global

o MIH (Naspers Group Sector)

o ICONIQ Capital

o Japan’s SoftBank

 In preparation to take on Flipkart’s biggest competition–

Amazon. In 2017, Flipkart had $2.5B from Japan’s SoftBank. In
2018, however, SoftBank had sold all (20% stake in Flipkart) of
its share to Walmart.

Huge Traffic Flow


o One of the most crucial factors for Flipkart is that fact that its ability to
get over 100 million visitors every day.

o The conversion rate + recurring loyal customers and the conversion rate
from reference or third-person help to generate revenues for the
company.

o Flipkart not only do customer come back to shop again through Flipkart
channels but also help to create awareness of the company and increase
company image.

Payment System
Flipkart platform offers multiple methods for its customers to pay for their orders:


o COD (Cash on Delivery) – The concept that was pioneered by
Flipkart has changed the game of e-commerce in Indian Market. A
customer that would like to place an order on COD can place orders that
do not exceed 50,000 Indian Rupees (Approx. $700).

o Credit / Debit Card – During the sign-up phase, clients are required to
provide either a credit card or debit card. Such cards can be issued from
India or the other 21 countries that Flipkart accepts to do business with.
 o Bank’s Internet Banking feature – Customers have the option to sync
their Flipkart accounts with their local banking facility to process
payments.

Flipkart SmartBuy

o Flipkart’s private labelSmartBuy is created to introduce its loyal
customers a channel to supply mobile & electronics accessories, home &
kitchen appliances at affordable prices.

Flipkart Technological Aspects


o Flipkart’s technology and infrastructure have enabled them to deliver 5
million products per month.

Sachin Bansal– Executive Chairman


o Sachin Bansal (former Amazon Executive) is currently the owner of
Flipkart.

o S. Bansal is currently looking into new business opportunities and

possibly is interested in making investments to new merging markets
and continue to explore different industries further.

 S. Bansal owns about 6% of Flipkart, Inc. shares.

Binny Bansal– Co-founder & CEO (Helping Founders)


o Binny Bansal (former Amazon Executive) is also the owner of Flipkart.

o Binny Bansal is no longer working with Flipkart due to an allegation

raised by 81.3% shareholder Walmart. Currently, there hasn’t been any
recent releases regarding the allegations.

o B. Bansal was believed to be 5%owner of Flipkart shares.

Kalyan Krishnamurthy– CEO


o Kalyan Krishnamurthy is currently the CEO of Flipkart. Mr.
Krishnamurthy mentioned that Flipkart will soon be required to hire
additional executives for the company.

o Krishnamurthy is responsible for all the operations that are deployed

regularly in the Indian region.
 o Flipkart is still considered a domestic company, and Walmart has
unveiled plans about continuously keeping Flipkart accessible in its
home country – India.

8. Flipkart’s Cost Structure


o Technology & Infrastructure support cost

o Warehouse management and Delivery Cost

o Advertising & Business Promotional Expenses– went up by 9.4% to Rs.

1,188 crores in 2017, as compared with a 100% jump in 2016.

o Workforce maintenance Cost

 Employee Cost Monthly: The average salary per employee is

approx. $981.73 per monthly basis cycle (approx. 70,000
Indian Rupees)

 Employee Cost Annually: There are in total of 30,000

employees x $981.73 average salary = $30 Million

9. Flipkart’s Revenue Streams

Flipkart accumulates its revenue through a few channels. Let’s see how does Flipkart make
money?

How does Flipkart make money?

Commission Structures

o Flipkart makes a percentage cut whenever someone sells their product
to a customer. Commissions are usually deducted from the original
transaction value prior to paying out the seller who sold the item.

The commission structures vary from item to item, they are categorized in the following;


o Low Margin branded categories: 2-5%

o High Margin branded categories: 10-25%

Shopping fees (Flipkart Assured Program)


o Shopper saves more by availing free deliveries on orders that exceed the
value of 500 Indian rupees. The saved amounts usually are accumulated
and then spent again at Flipkart.
Own Shipping Services – Ekart

o It is a department that makes all the deliveries of goods to the
concerned consumer.

o It costs 50 Indian Rupees for items that are less than half a KG (weight)

CONCLUSION

Flipkart’s marketing strategy is a very solid and robust one - of course it also doesn't hurt
that brands like Flipkart have deep pockets and can make their marketing efforts come to
life. The best thing about Flipkart is that they’re great with transmitting coherent
messages across platforms. As a marketer here are my main takeaways from Flipkart:

 Influencer marketing and star power are huge in India - Flipkart

understands this and is not shy about using this channel in order to garner
traffic and views.
 Flipkart is also largely focused on visual ads - be it video, creatives or even
reality tv. As a fashion brand this is great and shows that they understand
their product as well as their audience.
 Multichannel ads are great. While Flipkart drives the performance of their
ads online with performance marketing, they’re also heavy on offline ads
and TV spots which shows a great understanding of the audience.
 Experimenting is always great and Flipkart is not shy about this - being
one of the early adopters of gamification and VR.
 Customer really is king. Their offers are always really great and their
hugely successful Big Billion Day is testament to this fact. If customers -
still largely traditional when it comes to buying clothing online - are happy
to stop going to stores and order online and in some cases even pay in
advance, you kno