•Leading e-commerce

Company in India BOOKS

CONSUMER
GOODS
LIFESTYLE

•Founded in 2007 by FLIPKART

PAYMENT
GATEWAY
Sachin Bansal and Binny SERVICES

WS RETAIL E-KART
Bansal
VALUED
AT 9760
Cr.
•Poised for rapid growth

• Fastest growing
amongst Asia pacific region.

•Expanding into non-metropolitan India.

•Social media and mobile technologies are accelerating

e-commerce adoption.

•Large retailers are looking forward to build an online

presence.
GEOGRAPHIC:

CATERS TO TIER 1, TIER 2 AND TIER 3 CITIES

USAGE RATE:
•Third largest internet user base of 124 million (10% internet penetration)
•India’s mobile user base is 87.1 million and is expected to double by March 2015
.Flipkart projects its sales to reach INR 10 billion by year 2014.
•On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue
of INR 50 billion (US$1 billion) by 2015.
•Flipkart has 10 million registered users; about a million visit the site every day.
•The users of age 15-34 years are most susceptible to changes in purchase/consumption
behaviour.
AGE GROUP:
•Youngest online demographic globally .

•75% of online users between the age group of 15-34 years.

MARKET GROWTH:
•Current size of e-commerce market in India $11.2
billion

•360 e-commerce portal offering services in India

(tripled since 2010)

• Internet users in India is expected to grow to 376

million by 2015.

MARKET TRENDS:
SALE OF DIFFERENT PRODUCTS
CONTRIBUTION

9% ELECTRONIC
GOODS
23%
TIER 1
TIER 2+3 48% BOOKS
40% 51%
RURAL 29%
LIFESTYLE AND
ALLIED
PRODUCTS
 .Industry condition: very high
S potential
T
R .Investor ’s trust
E .Services and warehousing
N
G
.Payment options
T blished brand
H W .Entry of international on-line
S E competitors in Indian market
A .Customers are not comfortable with
K online payment
N .Not profitable operationally
E
S .Time to build confidence among the
S customers
.Middle management retention issues.
 .Development of m-commerce
in the e-market
OPPORTUNITIES
.Increasing internet
penetration

O .Target social medias to reach

young population
.High interest among VC/PE.

THREATS
.Capture of alternative
market by competitors
e.g.Infibeam
T
• Amazon.com/ Amazon.in

• Junglee.com.

• EBay

• SnapDeal

• Jabong.com

• Homeshop18

• Yebhi.com
Key success factors:
•First mover advantage
•Experience of E-commerce industry
•Investments
•Cash on delivery
•Customer orientation
•Voice based search (July 2013) 2010:

We read

•Online payment solution

2012:
2011:
Letsbuy.c ACQUISITIONS
Mime360
•Flipkart e-books (July 2013 om

•Men's wear (October 2013) 2011:

Chakpak.
com

.Shutdown of flyte (the digital music store, june 2013 )

•Membership cards and premium facilities.
•Extended range of academic books.
•Providing Sponsorships.
•Vernacular language option on websites.
•Better featured user interface.
•Cost cutting on packaging.
•Flipifts
•Liquor
FLIPIFT’S:-
•All consumer goods, generic gift products, customized goods.
•A different section for generic and customized products under flipift
•Presto, customized gift manufacturer and retailer-sole provider of
customized goods
•Will also be supported by IP tracking systems to enhance
repeatability.

Indiangi
Archies Red Cafepress.
ftsportal iFEE com
.com moments L
 •Initially in Mumbai and NCR
•Mandatory registration
•Uploading Identification proof mandatory
•Minimum order of $16
RETAILER
ORDERS
CONFIRMS THE
PLACED WITH AVAILABILITY OF
FLIPKART STOCK

SATISFIED
FLIPKART RETAILERS CUSTOMER CUSTOMER

RETAILER
DELIVERS

ALLOCATION OF ORDERS WITH

RETAILERS
•

•
•
•
•
 Internet users by age
3%
6%
15-24
16% 35% 25-34
35-44
45-54
55+ Youth population (million)
40% 464
500 430
Internet users by age 400 353
(source: survey) 300 youth
200 population
(million)
100
0
2001 2011 2021
•Flipkart targets mainly the youth of the country,
•Web friendly people.
•Target markets should include
oPeople who do not relate well with English language,

oAcademic institutions and people associated with it

oCurrent buyers
Points of parity: Points of Difference:
• Easy locating of products •Flipkart membership cards
• Competitive prices. for premium customers
• No hassles of going to shops •E-wallet
personally and shop for products •Vernacular language
• Availability of various products on one •Better user interface-one
platform drag approach.
• Discount on purchases.
• Home delivery
• Gifting services
• Cash on delivery
• Availability of liquor
• Flipifts
• Academic related books
 “Bookstore at your
door”
“The store at your
door”
“Jo dikhta hai wo bikta
hai”
• Product
• Price
• Promotion
• Place
• Process
• People
• Physical evidence
•Aims most segments except automobiles and groceries.
FICTION
ACADEMIC
LITERATURE
CHILDREN

ELECTRONIC GOODS
HOUSEHOLD ELECT.
MOBILE TECHNOLOGIES
PERIPHERALS,WELLNESS

APPARELS
ACCESSORIES

Suggested: Flipifts, bottoms up, extended range of

academic books
PRICE: PROMOTION:
•Offers discount •Advertising
•E-wallet •Online marketing
•E-gift vouchers •Media
Suggested: •Word of mouth
• membership cards with Suggested:
points facility •sponsorships
• e-wallet promotion
• themes of advertisements
concentrating on different services
provided.
PLACE: PROCESS:
•Inventory at 4 major •Cash on delivery
centers-
Mumbai, Delhi, Bangalore, •Debit and Credit card
Kolkata transactions

•Delivery services through •Delivery time

e-kart and postal services
•Payzippy safe payments
•Covers all tier-1 cities and
major tier-2 and tier-3 •Suggested: Vernacular language
cities
PEOPLE: PHYSICAL EVIDENCE:
• The packaging and quality of
•Customer services
product
•Investors
•Prompt delivery
•Employees
•30 day return policy

Suggested- Better user

interface, IP tracking for Flipifts
 5000

Revenue In INR Cr.

2000

1000
500
4 20 75

2008-09 2009-10 2010-11 2011-2012 2012-2013 2013-14 2015

• 2009: $1 million from Accel Partners

• 2010: $10 million from Tiger Global

• 2011: $20 million from Tiger Global

• 2012: $150 million from Naspers, Tiger Global and Accel Partners

• 2013: $360 million in two phases:

• 2013, July: $200 million from Naspers, Accel Partners, Tiger Global and

Iconiq Capital

• 2013, October:$160 Million from Dragoneer Investment, Morgan

Stanley, Sofina, Vulcan Capital, Tiger Global

 INVESTMENTS

400
350
360
300
250
200
150 $million
150
100
50
1 10 20
0
2009
2010
2011
2012
2013
 FLIPIFTS :
 LIQUOR :
•Wrapping Expense
• Liquor Iicense-20-30 lacs
(INR) • Advertising

• Pricing: approximately 20% • Earnings per 15% of cost of

highly priced than MRP. (INR) the gift