Industry Profile:

Flipkart

Company type Subsidiary

Industry E-commerce

Founded 2007; 17 years ago

 Sachin Bansal
Founder
 Binny Bansal

Headquarters  Bangalore, Karnataka, India

(operational HQ)
 Singapore (legal domicile)
Area served India
Key people Kalyan Krishnamurthi (CEO)[1]

Services Online shopping

Revenue  ₹56,013 crore (US$6.7 billion)[2]

(FY2022-23)
Net income  ₹−4,834 crore (US$−580 million)[2]
(FY2022-23)
Number of 22,000 (excluding Myntra)[3] (January
employees 2024)

Parent Walton family (85%)[4]

Subsidiaries  Cleartrip
 Ekart
 Flipkart Health+
 Flipkart Wholesale
 Myntra
 Shopsy

Website flipkart.com

The e-commerce also started a virtual storefront that is dedicated to the

academic needs of students named 'Flipkart Student's Club'. The 'Flipkart Green'
venture was created in 2023 for customers who want to have a sustainable
lifestyle by providing certified sustainable products.

Things are easier said than done! To realize our dreams and that
also in such a grand manner is really a tough task. The founders of Flipkart
have probably conquered their dreams with the amazing success of Flipkart.
Flipkart is something which has really opened up the Indian e-commerce
market and that also in a big way.

Flipkart was co-founded by Sachin Bansal and Binny Bansal in Oct

2007. Both are graduates from IIT-Delhi and have prior work experience in
Amazon.com They both were solid coders and wanted to open a portal that
compared different e-commerce websites, but there were hardly any such sites
in India and they decided to give birth to their own e-commerce venture -
Flipkart.com.

Thus was born Flipkart in Oct 2007 with an initial investment of 4

lac (co-founders savings). It was never going to be easy since India has had
bad past experiences with e-commerce trading. It was not an easy segment to
break into, people were very particular in paying money for something which
they had not seen and received. The trust was missing in the Indian customers.
So what Flipkart had to do was to instill trust and faith in their customers. And
they did exactly the same, will discuss more on how they did so later in the
post.

Flipkart began with selling books, since books are easy to procure,
target market which reads books is in abundance, books provide more margin,
are easy to pack and deliver, do not get damaged in transit and most
importantly books are not very expensive, so the amount of money a customer
has to spend to try out one's service for one time is very minimal. Flipkart sold
only books for the first two years.

Flipkart started with the consignment model (procurement based

on demand) i.e. they had ties with 2 distributors in Bangalore, whenever a
customer ordered a book, they used to personally procure the book from the
dealer, pack the book in their office and then courier the same. In the initial
months the founder's personal cell numbers used to be the customer support
numbers. So, in the start they tried their best to provide good service, focus on
the website - easy to browse and order and hassle-free, and strove hard to
resolve any customer issues. Since there were not any established players in
the market, this allowed them a lot of space to grow, and they did in fact grew
very rapidly.
 Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in
FY 2009 - 2010, 75 crore in FY 2010 - 2011, and the revenue for FY 2011 -
2012 which ends on 31 Mar 2012 is expected to be 500 crore. This is indeed a
massive growth. The company targets revenues of 5000 crore by 2015. he
company started from 2 employees and now has around 4500 employees.

Flipkart started with consignment model as discussed above, since

most of the customer issues like delivery delays etc. result from procurement
model, the company started opening its own warehouses as it started getting
more investments. The company opened its first warehouse in Bangalore and
later on opened warehouses in Delhi, Kolkatta and Mumbai. Today the
company works with more than 500 suppliers. As on date more than 80%
orders of Flipkart are handled via warehouses which help in quick and
efficient service.

A humble beginning from books, Flipkart now has a gamut of

products ranging from: Cell phones, laptops, computers, cameras, games,
music, audio players, TV's, healthcare products, washing machines etc. etc.
Still, Flipkart derives around 50% of its revenue from selling books online.
Flipkart is the Indian market leader in selling books both offline and online, it
enjoys an online share of around 80%. The electronic items have a large
number of players like Naaptol, Letsbuy, Indiaplaza, Tradus, Infibeam, Yebhi
etc. The electronic market share is distributed among them in different
unknown proportions.

India has around 13.5 crore internet users today where as the
number of homes with Cable and Satellite (C&S) television is 10.5 crore. The
expected internet users will reach a figure of 30 crore by 2014 and C&S
homes are expected to be 14 crore by 2014. Thus India has a tremendous
internet growth and with the customers getting accustomed to e-commerce, the
future of e-commerce sector is definitely rosy. An approximated 25 lac people
have transacted online this year, the number is all set to increase with time.

Also to mention most of the Flipkart customers use internet from

PC's/Laptops to order goods. The use of mobile internet is very less at the
moment, but with the advent of smart phones the use of mobile internet for e-
commerce transactions will soar with time. India has 8 crore mobile net users
at the moment, the number is expected to swell to 22.5 crore by 2014.

In the financial year 2008-09, Flipkart had made sales to the tune
of 40 million Indian rupees. This soon increased to 200 million Indian
rupees the following year. Flipkart targets to hit the one billion mark by 2015.
 Going by their ever increasing popularity, it does not seem like a farfetched
thought.

Back at the time when Flipkart was launched, any e-commerce

company faced two major difficulties. One was the problem of online payment
gateways. Not many people preferred online payment and the gateways were
not easy to set up. Flipkart tackled this problem by introducing cash on
delivery and payment by card on delivery in addition to others.

The second problem was the entire supply chain system.

Delivering goods on time is one of the most important factor that determines
the success of an ecommerce company. Flipkart addressed this issue by
launching their own supply chain management system to deliver orders in a
timely fashion.

Flipkart also acquired few companies like Myntra.com,

LetsBuy.com etc., to better their presence in the market. With the entry
ofAmazon.com in India, the competition between the companies has seen
many takeovers.

Flipkart’s journey from a small book e-retailer to India’s largest e-

commerce platform inspires a generation of start-ups. In a country where
stereotypes are common, Flipkart managed to break the norm and change the
ecommerce industry in India for ever. Flipkart’s story proves that if you have
a great idea, and you are a doer and not a thinker, success is not far off.

 www.flipkart.com
 Wikipedia.

Company Profile:
Flipkart is an e-commerce company founded in the year 2007 by Sachin Bansal
and Binny Bansal. The company is registered in Singapore, but has its
headquarters in Bengaluru, India. The company seeks to increase traffic (more
clicks on their products) and boost sales and revenue through integration of
Mobile Apps, Display, Pay Per Click and search Engine Optimization. In order
to dispel the fear of people related to shopping online, Flipkart was the first
company to implement to popular ‘Cash on Delivery’ facility. All the products
sold by the company under a particular category may have different
return/replacement period. Flipkart allows multiple payment options such as
cash on delivery, credit or debit card transactions, net banking, e-gift voucher
and card swipe on delivery. The company operates both ways when an order is
received.The products for which it holds inventory are dispatched by it directly.
For the products they do not store in inventory, they just send the order received
by them to the supplier who ships it. The company plans to spend about ₹ 75
crores on e-commerce advertising in the year 2016.Flipkart reserves the right to
terminate your membership and/or refuse to provide you with access to the
website if it is brought to Flipkart’s notice or if it is discovered that you are
under the age of 18 years. This is because as per the Indian contract Act, 1872,
the minors, un-discharged insolvents, etc. are not eligible to use the website. In
context of the above case answer the following questions: (i)The company seeks
to increase traffic (more click on the product) and boost sale and revenue.
Identify the plan used by Flipkart in these lines. (a) Objectives (b) Strategy (c)
Policy (d) Methods (ii)Boost sales revenue through the integration of Mobile
App, Display, Pay per click and search engine optimization. Identify the plan
used by Flipkart in these lines. (a)Objectives (b)Strategy (c)Policy (d)Methods
(iii)In order to dispel the fear of people related to shopping online,

Nature of Flipkart:
Flipkart, one of India's largest e-commerce platforms, exemplifies several key
aspects of e-commerce today:

1. Online Marketplace: Flipkart operates primarily as an online

marketplace where various sellers can list their products. This model
allows for a wide range of products to be offered to consumers without
Flipkart holding inventory directly.
2. Product Range: Flipkart offers a diverse range of products including
electronics, fashion apparel, home goods, books, and more. This wide
selection appeals to a broad consumer base.
3. Digital Payments: Facilitating transactions through digital payments is
integral to Flipkart's operations. It supports various payment methods
including credit/debit cards, net banking, and cash on delivery, adapting
to local preferences.
4. Logistics and Delivery: Flipkart has built a robust logistics network to
ensure timely delivery across India. This includes partnerships with third-
party logistics providers and its own delivery service, Ekart.
5. Customer Experience: Providing a seamless shopping experience is
crucial. Flipkart invests in user-friendly interfaces, personalized
recommendations, and customer support to enhance satisfaction.
6. E-commerce Innovation: Flipkart has pioneered innovations like cash
on delivery in India, Flipkart Plus loyalty program, and initiatives in
artificial intelligence for personalized shopping experiences.
 7. Market Dynamics: It competes fiercely with other e-commerce giants
like Amazon and local players, influencing market trends and consumer
behavior in India.
8. Seller Ecosystem: Flipkart supports sellers through tools and resources to
manage their online presence effectively, contributing to the growth of
small and medium enterprises (SMEs) in India.
9. Mobile Commerce: Recognizing the mobile-first nature of many Indian
consumers, Flipkart has a strong mobile app presence, optimizing its
platform for mobile devices.
10. Social Commerce: Integrating social media platforms for marketing and
engagement has become increasingly important. Flipkart leverages social
channels to reach and interact with its customer base.

Vision:

Flipkart aims to be the most customer-centric e-commerce platform, providing

a seamless shopping experience that is trusted, innovative, and reliable. They
aspire to empower sellers and consumers alike through technology and
exceptional service.

Mission:

Flipkart's mission revolves around several key pillars:

1. Customer Satisfaction: To prioritize customer satisfaction by offering a

wide selection of products, competitive prices, convenient payment
options, and reliable delivery services.
2. Seller Empowerment: To enable sellers to reach a nationwide audience
and grow their businesses by providing them with the necessary tools,
resources, and support.
3. Innovation: To continuously innovate and adapt to changing technology
and consumer trends, ensuring that Flipkart remains at the forefront of the
e-commerce industry.
4. Social Responsibility: To operate ethically and responsibly, contributing
positively to the communities in which they operate and minimizing their
environmental impact.
5. Market Leadership: To maintain and strengthen their position as a
leader in the Indian e-commerce market, setting benchmarks for customer
service, operational efficiency, and technological innovation.

Values:
Flipkart emphasizes several core values that guide its operations and
interactions within the e-commerce landscape. These values are integral to how
Flipkart conducts business and shapes its corporate culture:

1. Customer Centricity: Flipkart places a strong emphasis on

understanding and meeting the needs of its customers. They prioritize
customer satisfaction by offering a wide range of products, competitive
prices, and excellent service.
2. Innovation: Innovation is at the heart of Flipkart's strategy. They
continually seek to innovate in technology, processes, and customer
experiences to stay ahead in the competitive e-commerce market.
3. Integrity: Flipkart operates with integrity and transparency in all its
dealings. They uphold ethical standards in business practices and strive to
earn and maintain trust from customers, partners, and stakeholders.
4. Inclusivity: Flipkart believes in inclusivity and diversity. They aim to
create an inclusive workplace and platform where everyone, regardless of
background or status, feels valued and respected.
5. Excellence: Flipkart is committed to excellence in everything they do,
from product selection and pricing to customer service and operational
efficiency. They set high standards and continuously strive to exceed
them.
6. Empowerment: Flipkart empowers sellers by providing them with the
tools, resources, and support they need to succeed on the platform. They
enable small and medium-sized businesses to reach a wider audience and
grow their enterprises.
7. Responsibility: Flipkart takes social and environmental responsibilities
seriously. They engage in sustainable practices, reduce their
environmental footprint, and contribute positively to the communities in
which they operate.
8. Teamwork: Collaboration and teamwork are fundamental to Flipkart's
success. They foster a culture of teamwork, communication, and mutual
respect among their employees, enabling them to achieve common goals.

Objectives of E-Commerce on Flipkart:

Flipkart's objectives in the e-commerce space encompass a range of strategic
goals aimed at maintaining market leadership, enhancing customer experience,
empowering sellers, and driving innovation. Here are some key objectives:

1. Market Leadership: Maintain and strengthen Flipkart's position as a

leading e-commerce platform in India, competing effectively with other
major players like Amazon.
2. Customer Experience: Continuously improve and innovate to offer the
best possible shopping experience for customers, including user-friendly
interfaces, personalized recommendations, and reliable delivery.
3. Product Range: Expand and diversify the range of products available on
Flipkart, catering to a broad spectrum of consumer needs and preferences.
4. Seller Empowerment: Empower sellers by providing them with tools,
resources, and support to succeed on the platform, thereby fostering a
vibrant marketplace.
5. Logistics and Delivery: Enhance logistics and delivery capabilities to
ensure faster and more efficient order fulfillment across India, leveraging
both in-house logistics (Ekart) and partnerships with third-party
providers.
6. Innovation: Drive innovation in technology and services to stay ahead of
market trends and offer cutting-edge solutions that enhance convenience
and efficiency for customers and sellers alike.
7. Digital Payments: Expand and optimize digital payment solutions to
offer secure and convenient payment options that cater to diverse
consumer preferences.
8. Customer Loyalty: Strengthen customer loyalty through programs like
Flipkart Plus, offering rewards and benefits that incentivize repeat
purchases and engagement.
9. Sustainability: Promote sustainability practices within Flipkart's
operations, including packaging, waste reduction, and carbon footprint
reduction initiatives.
10. Market Expansion: Explore opportunities for geographic expansion and
penetration into new market segments to broaden Flipkart's customer base
and enhance market reach.

These objectives reflect Flipkart's strategic focus on growth, customer

satisfaction, innovation, and responsible business practices within the dynamic
e-commerce industry in India and beyond.

E-commerce (electronic commerce) is the activity of electronically buying or

selling products on online services or over the Internet. E-commerce draws on technologies
such as mobile commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. E-commerce is the largest
sector of the electronics industry and is in turn driven by the technological advances of
the semiconductor industry.

Product and Service Profile:

E-commerce typically uses the web for at least a part of a transaction's life cycle although it
may also use other technologies such as e-mail. Typical e-commerce transactions include the
purchase of products (such as books from Amazon) or services (such as music downloads in
the form of digital distribution such as the iTunes Store).[1] There are three areas of e-
commerce: online retailing, electronic markets, and online auctions. E-commerce is
supported by electronic business.[2] The existence value of e-commerce is to allow consumers
to shop online and pay online through the Internet, saving the time and space of customers
and enterprises, greatly improving transaction efficiency, especially for busy office workers,
and also saving a lot of valuable time.[3]

E-commerce businesses may also employ some or all of the following:

 Online shopping for retail sales direct to consumers via web sites and mobile
apps, conversational commerce via live chat, chatbots, and voice assistants.[4]
 Providing or participating in online marketplaces, which process third-party business-to-
consumer (B2C) or consumer-to-consumer (C2C) sales;
 Business-to-business (B2B) buying and selling.[5]
 Gathering and using demographic data through web contacts and social media.
 B2B electronic data interchange.
 Marketing to prospective and established customers by e-mail or fax (for example,
with newsletters).
 Engaging in pretail for launching new products and services.
 Online financial exchanges for currency exchanges or trading purposes.

Awards and Recognition

 Sachin Bansal was awarded Entrepreneur of the Year, 2012–13 from The Economic
Times, a leading Indian economic daily newspaper.
 In September 2015, the two founders entered Forbes India's richest Indian by year,
debuting in the 86th position with a net worth of US$1.3 billion each.
 In April 2016, Sachin and Binny Bansal were named to Time magazine's annual list of
the 100 Most Influential People in the World.
 Flipkart was reported to be at the top in the annual fairwork India Ratings 2021 - which is
a 10-point system that creates a score based on fair pay, conditions, contracts,
management, and representation.[182] A total of 11 platforms were evaluated by a
consortium of the Centre for IT and Public Policy (CITAPP), International IIIT
Bangalore and the global Fairwork network .The methodology included qualitative
interviews with 19-20 workers in Delhi and Bangalore.