Background

Indian e-commerce company

Headquartered in Bangalore, Karnataka

Founders Sachin Bansal and Binny Bansal (2007)

Among the top 30 Indian Web sites

In 2009, we had a topline of 20 crore.

1st Indian Internet Company to be valued at

$1 Billion!Current manpower ~ 2500

Credited with being India's largest online bookseller We sell 1.5 lakh books a month. That’s 3.5 books a minute!

Great variety of productsBooksGadgets (Computers, Cameras, Gaming & Mobiles and accessories)Music, Movies and PostersTV, Video and AudioHome and KitchenPens and StationeryBelts, bags, Watches and luggageHealth and BeautyMP3 Downloads

Fantastic discounts

Various payment optionsMultiple payment methods like credit

card, debit card, net banking, e-gift

voucher and Cash on Delivery

On-time delivery system Over 1 million registered users! Ships over 20000 items every day. More than half of those are books!

Broke even in March 2010 

Generated USD 11 million in sales last financial year

Competition

We get over 0.5 million unique visitors every month from India

Amazon gets 0.75 million unique visitors every month from India. And this is when they had not even started operations here!

Competition Map

Star CJHome Shop 18Magazine Mall

InfibeamAmazon

ebayIndiatimes

Snapdealdealsandyou

NaaptolBuytheprice

MyntraFashion &You

JabongInkfruitYebhi

BookaddaFriends of book

AmazonuRead

Direct

Competition

Business Problem

• The company is witnessing a problem in terms of

extremely low profit margin

• Also the number of customers ordering low value

items to be delivered over long distances are

higher, thus providing low margins and losses in

some cases.

• But we cannot discourage to lose out on such

customers as they might be of lifetime value

• To tackle this problem, more premium products are available on the website so that the high margins from these products can subsidize the losses from selling low value products over long distance

• The transaction cost is also same irrespective of the product ordered. Thus it makes more sense to earn more revenue per transaction

• But the catch here is that Indian customers still prefer buying the high priced item at physical stores as it gives them the feeling of safety and trust

• Also, the Brand Flipkart is more associated with Books rather than a full fledged retail portal

Where we are

With over 11.5 million book titles, 14 different categories, more than 3 million registered users and sale of 30000 items a day, we can say with utmost confidence that we are one of the leading e-commerce players in the country.

The “steroids” for our website are low prices, free shipping and an intuitive interface that makes it very convenient to search .

Where we want to be

We want to be the sustainable leader with profitability.

We don’t want to continue the price war way but want to concentrate more on

customer service and a pleasant buying experience.

Target Group

Our primary customers are urban middle

class who are well versed in using the

technology, are well educated and are

comfortable shopping online.

India has only 52 million active internet

users and only 40% of them shop online.

The Brief

• We have established a niche in the market by effective communication through its latest television campaigns

• Now we want to focus on generating more revenue from the existing customers

• Also our positioning has to change from cheap product offering to convenience, effective delivery & customer service