the journey of flipkart and myntra

Group Members

• JITIN AMARMANI

• JYOTSNA CHATURVEDI

• KRITIKA GUPTA

• MOHIT JAIN

• NIHARIKA BISHT

• NIKITA SINGH

• PIYUSH PARASHAR

• PIYUSH PRAKASH

• SHASHANK VERMA

E-Commerce

• What is E-Commerce?

• Internet Use in India- 137 million

•Preferred payment mode- COD

•Market Size and growth – $2.5 to 1$4 billion in 3 years 10 million online shoppers

• Started – 2007

• Expanded - 2010

• Payment methods

• Revenue – $11.8 billion

• Established -2007

• Headquarters

• Turn Over – 800 Crore

Operations

How does Myntra or Flipkart works

Shopping Screen

Shopping Kart

Payment options

Receipt Generation

• Order No : OD126547826

• This contains all the information i.e. product code, date of purchase , reference no, delivery area code

• Helpful in easy tracking of orders.

Delivery and Logistics

• No of order served daily > 30,000

• Own delivery channel for metro cities. i.e. EKART.

• Partner delivery agencies for rest of target area.

• Blue Dart & DHL are the major delivery partners of flipkart.

Return Policy

• 30 days money back guarantee : Unsatisfied customer calls flipkart customer service product is returned by logistics partner and replacement or money is returned in the account.

• E-Wallet Feature: Loyal customer deposit more money and can be used for further purchases

Customer Support

• New Sale, Customer grievances, Other info

• 24 * 7 Customer Support.

Internal process in Myntra & Flipkart

• How can these site offer discount every weekend unlike other stores ?

• Total number of staff working in this organization

WHY???BIG DEAL…….

BIGGER REASONS…….

BUSINESS’ MINDS!!!!!!!!!!

COST OF ACQUISITIONCOMPETITION COMES

CALLING

PROFITABILITY TARGETS

ENTER INTO NEW BUSINESS

• Cost Of Acquisition And Economies Of Scale - By joining forces, Flipkart and Myntra would realize huge cost savings on customer acquisition as they basically target the same customer and demographic base. Combined company would control the major E-Commerce of India resulting in signifcant economies of scales.• Competition – Amazon, with

its well oiled machinery, is ready to fight against all players of E-Commerce in India which both Flipkart and Myntra would better be able to face as a combined entity.

‘GAME OVER EFFEC

T’

• Profitability targets – Accel Partners and Tiger Global are investors to both Flipkart and Myntra. Their merger would concentrate the investments from both the companies, helping them to reach revenue and profitability targets much quicker.

Pants into new business – Apparel segment is one of the most profitable segments in e-commerce industry with profit margin varying from 20-50%. Flipkart would take advantage of Myntra being the strongest player in this industry, for its own growth and profits.

Awards by Flipkart

• Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from Economic Times, leading Indian Economic Daily

• Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012' (IBLA).

• Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards 2011.

• Flipkart.com, secured second position in the List of Cheapest Mobile Store 2013, compiled by Indian e-commerce observer Zoutons.com.

Awards by Myntra

• Awarded 'Fashion E-Retailer of the Year 2013' by Franchise India – Indian E-Retail Awards

• Awarded 'Best E-commerce Website for 2012' by IAMAI – India Digital Awards

• Awarded 'Images Most Admired Retailer of the Year: Non–Store Retail' for 2012 by Images Group

• Awarded 'Best E-commerce Partner of the year 2011-12' by Puma India

Competitors

“Competition seeks business.”

International E-Retailing Store

Amazon

• World’s Largest Online Shopping site founded in 1994.

• In India launched in June, 2013.

• Has one of the best delivery networks in India.

• Site Rank: 10.

Ebay

• American E-commerce company founded in 1995

• Better known for its Trading facilities(Buy & Sell).

• Provides some of the amazing deals which you can’t find on any other sites.

• Site Rank: 26.

Domestic E-Retailing Store

Snapdeal

• Founded in 2010.

• Since then it has been growing at very fast rate.

• You can find everything on this site from hat to shoe and from bags to watches.

• Site Rank: 291(Globally)

15(India).

Jabong

• Indian fashion and lifestyle e-commerce portal founded in 2012.

• Ships 14,000 orders on a daily basis out of which 60% were from small towns.

• Has set a record for sale in the male fashion category in 2012.

• Site Rank: 301(Globally)

14(India).

Fun Facts:

• Which E-Retailer has its founders having same surname but not brothers?

• Which E-company got started by batch-mates at IIT Delhi?

• Which Company got started by ex-employees of Amazon?

• Which Company started off with an initial investment of less than $8000 leading to a staggering company worth of $1.6billion today?

Myntra

• To be a fashion apparel online store only

• To build a strong consumer base

• Basic strategy – Increase product range -> Enhance customer engagement -> maximize customer loyalty

Flipkart

• Flipkart to focus on books, electronics and other wide range of products

• Flipkart Fashion Store – TV campaign

• Flipkart First

• *Bonus Information* - This is very similar to Amazon's Prime program, which the company has not launched in India yet

Flipkart

• Basic Strategy – To Deliver fast, create and maintain a quality enhanced website, increase sales volume with reasonable product price.

• *Bonus Information* - To counter transportation cost -> Increase customer loyalty

• ‘Try and Buy’ service

Myntra + Flipkart

• Flipkart’s Reason

Wanted apparel products specialization, deeper understanding of fashion, aesthetic presentation and experience.

Fashion products to become the most popular category in the near future.

• Myntra’s Reason

To have a stronger distribution network with the present ratio being at 70:250

To foray into the mobile platform

To increase warehouse capacity by 4 times

Continued

• Myntra has started offering 30-40% discount after the infusion. Also, due to the fact of being funded 5 crores by Premji Invest

• Simple Strategy – Combine to two entities -> get a market share a 50% -> keeping the functionality separate, take it to 60%

CHALLENGES

CHALLENGES

1)Uncertainity of profits-

• Flipkart’s revenue soars fivefold to more than Rs.11K crore, but expenses jump more than five times to Rs 13.5K crore. (Mint).

• Layoffs and reduced discounts.

• Is Flipkart Going To Be Another Kingfisher (Forbes)

• Burn Rate brought down from $8 million to about $6 million with ($80-85 million still left in the bank.

CHALLENGES

DISADVANTAGES

When company started-It was all about experience but today it’s just about products.

1)Curbing negative reviews-

Official policy of flipkart-

a) If a review consists only of a product review (Positive or negative): Approve

b) b) If a review consists only of a service feedback (Positive or negative): Reject.

2) Over-dependence on amazon for new ideas-One might think the similarity between both is limited to the fact that Flipkart also started their business by selling books just like Amazon.

But flipkart’s Photocopiers run way deeper.

Benefits

-> Flipkart and Myntra together create the largest e-commerce stories and together will dominate the market.

-> online fashion market share Myntra 30% & Flipkart 20% at present.

Myntra30%

Flipcart20%

Others50%

Market Share

MyntraFlipcartOthers

FLIPKART – MYNTRA THE GAME CHANGER

65%

35%

Market Share

Flipkart+Myntra

Other's

-> Become leaders in the category of Fashion.

-> Flipkarts earned 4-5% by electronics & phones category, F&A will generate double digit margins.

-> 65% market share - online fashion segment by December 2015.

-> Myntra to adopt Flipkart‘s Operational model - Marketplace Model in order to overcome:

• No need for Warehousing

• No shipping Costs

• Increased Profit Margins

• Expand its reach to new customer.

-> The biggest Competitor – Snapdeal, which is backed by ebay.

-> Discourages the growth pace of Jabong.

-> Walmart’s entry into the indian e -market is imminent.

-> It squares off against “Amazon” for dominance of India's fast-growing online retail market.

-> India's e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop. FlipMynt also needs to overcome the threat of small online retail markets.

Indian Population is 1.2

billion

330 Million internet users

Only 10 Million online Shoppers

E-Commerce growing @ 30% in India vs 9%

globally

FUTURE AND SCOPE

BUSY LIFESTY

LES

INCREASE IN

DISPOSABL-E

INCOME

CoD FACILIT

Y

TIE-UPS WITH

INTERNATI-

ONAL BRANDS

RISE OF TIER II CITIES

WHY WILL IT GROW?

CONCLUSION

THANK YOU!