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Source: m.economictimes.com
•87% of the total internet user base in India, or 493 million Indians, are defined
as regular users, says a Kantar report
•Of this, 293 million active internet users reside in Urban India, while there are
200 million active users in Rural India
•Increased availability of bandwidth, cheap data plans and increased awareness
driven by government programmes seem to have rapidly bridged the digital gap
between urban and rural India.
Flipkart:
Flipkart Strategy:
Flipkart had spent years in raising money in form of million dollars and
has now tapped into the expansion of the online market in India by
targeting to obtain more investment. The company’s strategy is to raise as
much as 1 billion US dollars to fund the various businesses and
organizations in India. The main target of Flipkart is to take the top
position in India by replacing Amazon as the leading E-commerce website
and marketplace for the buyers and the sellers.
Flipkart Business Model:
The online platform of the Flipkart is a B2C (buyer to consumer)
model which provides ample shopping opportunities to the Indian
consumers in an effective manner. As a popular online
marketplace, Flipkart also allows the various sellers from across
the country to sell their products under different categories on the
online platform. It also encourages the sellers to provide various
attractive discounts to the buyers or the consumers such that their
products are sold off and they earn substantial profits. The sellers
get certain amounts from Flipkart after the deduction of the
commission by Flipkart for the services provided to the sellers.

The various options taken by Flipkart while formulating its business model
include:
• Enhancing the overall website of Flipkart.
• Introducing the web app to the users.
• Introducing the mobile app to the consumers and the optimization of the
same.
• Promotions of the products and services on the various social websites
like Facebook, YouTube, Twitter, Instagram and much more.
• Proper offline advertisements and promotions based on the banners
and the TV advertisements.
• Making use of affiliate networks like coupon websites, review websites,
bloggers and much more.
Improvements:
Improve customer loyalty: Flipkart’s chances of maintaining market
leadership will lie in its ability to launch effective customer loyalty
programmes. This is an area where rival Amazon has tasted a lot of success
thanks to its all-encompassing model.Another way to approach the problem
is by driving greater consumer stickiness.Flipkart seems to have taken the
first steps towards the exercise. It is mulling expanding to other segments.
Invest in logistics: Amazon Prime became an integral part of
online shopping in the US mainly because of its promise of faster
delivery. Likewise, Flipkart needs to fasten its logistics wheel.
Get on the food & grocery bus: Flipkart, which shut down its
grocery delivery app Nearby last year, will be missing out on a huge
opportunity if it delays getting into the segment. Flipkart should
leverage its customer base to establish a strong presence in the
grocery segment, which is a recurring, daily-order business.
Invest in tech, try new biz strategies: Flipkart needs to make
significant, holistic investments on its tech infrastructure to improve
customer experience. They should invest much more in technology.
Not only in the backend, but also on the consumer interface front.
There are many tech revolutions happening, such as the concept of
virtual trial rooms.
Target Tier II, III cities: According to a recent report by research
firm RedSeer Consulting, Tier II and below cities will account for as
much as half of all the e-tailing business in the country by 2020.
This is an area where Flipkart hasn't paid much attention so far.
“Flipkart should focus on Tier II and III centres where growth will be
around providing relevant merchandise, like rivals ShopClues and
Snapdeal. It should make the proposition of online shopping more
relevant for such customers. Its strong presence in apparel can be
crucial in this strategy
FLIPKART : ROUTE TO FOLLOW
As Internet penetration is exploding in India, witch
rising numbers of mobile phone users and cheap
internet services, Ecosytem route is recommended
as more and more users will be demanding varied
services in the future.
Why Ecosystem route?
Multi-purpose app that includes everything the user
needs.
• Unified experience: Different modules can work
together sharing data and resources.
• Aggregate data: It minimizes the danger of
producing data silos.
• Single environment: Users have everything they
need in one place.
• Customer Convenience: Users do not have to
download multiple apps for different purposes
• User friendly: One stop solution for different
needs of the customer can be addressed under
an umbrella app which adds to the overall user
experience.
SERVICES

Customer Metrics (in Millions)

OTT SERVICES: One stop location for new 325
300
movies and tv shows from around the world 300
available exclusively on flipkart. 275

250
225
225
TRAVEL BOOKING SERVICES: Booking tickets
200
for flights, trains, buses and pre-made holiday 180
packages. 175

150

125
Payments of bills: Payment for mobile phone, 105
100
internet services, utilities like electricity etc.
directly from the app or website 75 60
50 36
25 10 15
7.2
Payments of bills: Payment for mobile phone, 0
internet services, utilities like electricity etc. Daily Active Users Monthly Active Users Repeat Users
directly from the app or website 2016 2018 2020 (Projected)