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FLIPKART INTERNET PRIVATE LIMITED Graduation Project in WOMEN’S CLOTHING DEVELOPMENT OF FRINGE VERTICALS OF WOMEN’S CLOTHING VPL BRANDS (METRONAUT AND DIVASTRI) Submitted By: PRAGATI KHANNA MFM/16/58 BATCH : 2016 2018 MASTERS OF FASHION MANAGEMENT (MFM) DEPARTMENT OF FASHION MANAGEMENT STUDIES (FMS) NATIONAL INSTITUTE OF FASHION TECHNOLOGY (NIFT)

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Page 1: FLIPKART INTERNET PRIVATE LIMITED Graduation Project in14.139.111.26/jspui/bitstream/1/787/1/Pragati khanna.pdf · “B2B business is now dwarfing that of the B2C business.” The

FLIPKART INTERNET PRIVATE

LIMITED

Graduation Project in

WOMEN’S CLOTHING

DEVELOPMENT OF FRINGE VERTICALS OF WOMEN’S CLOTHING

VPL BRANDS (METRONAUT AND DIVASTRI)

Submitted By:

PRAGATI KHANNA

MFM/16/58

BATCH : 2016 – 2018

MASTERS OF FASHION MANAGEMENT

(MFM)

DEPARTMENT OF FASHION MANAGEMENT STUDIES

(FMS)

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

(NIFT)

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ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to my mentor Mr. Sushil

Raturi, my course leader Mr. Yashwant Misale, my industry mentor Mr.

Tanmoy Chakraborty and colleagues for intensifying my learning curve.

Without their guidance and support, this project would not have been

possible. Their unwavering support and encouragement directly or

indirectly accompanied me, and made my work much easier. Specifically, I

would like to thank my friends at the NIFT and elsewhere for their

cooperation and support throughout.

Regards

Pragati Khanna

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DECLARATION OF ORIGIONALITY

I hereby declare that this report is an original report done by me. All the

data that has been previously published and written by someone has been

dutifully referenced and used. The report has been done under the

guidance of my faculty and industry mentor and their assurance to let me

go ahead has been fully acknowledged.

Name: Pragati Khanna

Masters of Fashion Management

NIFT MUMBAI

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CERTIFICATE BY FACULTY MENTOR

This IS to certify that the internship project “Development of Fringe

verticals of Women’s Clothing VPLs – Metronaut Woman and

Divastri” is prepared by Pragati Khanna for the partial fulfillment of the

degree of Masters of Fashion Management. This report is her original work

and done under my supervision.

Prof. Sushil Raturi

Masters of Fashion Management

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

MUMBAI

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TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE NO.

1. 1.1 GLOBAL E-COMMERCE 1.2 FLIPKART AND E-COMMERCE IN INDIA

1.3 FLIPKART’S LIFESTYLE DIVISION 1.4 MARKET PLACE

1.5 VIRTUAL PRIVATE LABEL AND PRIVATE LABEL

1.5.1 METRONAUT WOMAN

1.5.2 DIVASTRI

1 5

8 9

9

11

12

2.

PROJECT UNDERTAKEN

2.1 INTRODUCTION

2.2 TIMELINE OF THE PROJECT

2.2.1 RESEARCH

2.2.2 OPTION PLANS

(I) METRONAUT SHIRTS (II) METRONAUT SCARVES

(III) METRONAUT SOCKS (IV) DIVASTRI DUPATTAS

(V) DIVASTRI NIGHT WEAR GOWNS (VI) DIVASTRI BLOUSE

2.3 VENDOR MANAGEMENT

2.4 SAMPLING

I) SAMPLES II) MAINTAINING TRACKER

III)DESIGNER COMMENTS IV) QC APPROVAL

V) COMMENTS

VI) REVISED SAMPLES

2.5 PHOTOSHOOT

2.6 CATALOGUING

2.7 LAUNCH

14

15

15

21

23 24

25 26

28 29-30

31-32

33

33 33

33 34

34

35

36-40

41-43

44

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2.8 AFTER-SALE ANALYSIS 44-45

3 LEARNING OUTCOMES

47

4 REFLECTION

48

BIBLIOGRAPGY

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CHAPTER 1

1.1 GLOBAL E - COMMERCE

➢ Global Retail Ecommerce Sales Will Reach $4.5 Trillion by 2021

Cumulative data from Statista anticipates a 246.15% increase in worldwide ecommerce

sales, from $1.3 trillion in 2014 to $4.5 trillion in 2021. That’s a nearly threefold lift in

online revenue.

Numbers of that scale are often hard to wrap our heads around. They’re at once both

invigorating and mind-boggling.

Fig. 1 (https://www.shopify.com/enterprise/global-ecommerce-statistics)

“B2B business is now dwarfing that of the B2C business.”

The dominance of B2B ecommerce means at least two things.

First, self-service is on the rise. Data from CEB Now Gartner found that “customers

are 57 percent of the way through a typical purchase process prior to proactively

reaching out to a supplier’s sales rep.” This doesn’t eliminate the need for a sales staff,

but it does give ecommerce a distinct advantage.

Second, wholesale customers — namely, independent retailers, small-to-medium

franchises, and B2C outlets — largely prefer a simplified ordering experience. This

eliminates the need to invest your wholesale portal with all the bells and whistles of

B2C ecommerce.

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➢ Ecommerce Expansion Typically Follows a Three-Stage Global Path

Fig. 1 (https://www.shopify.com/enterprise/global-ecommerce-statistics)

Forrester research indicates that digital businesses “tend to follow a similar path and

prioritize the same list of countries.” The list of countries included in each phase are

listed above, but what’s important is to consider the characteristics of each “wave.”

Top-tier markets

• Large and developed ecommerce presence

• Smaller markets with strong physical infrastructures

• Ripe product markets within smaller overall markets

Second wave

• Early-stage ecommerce development

• Complex domestic regulations

• Digitally advanced countries but small market sizes

Wait and see

• Uncertain political climates

• Emerging ecommerce markets with long-term potential

• Challenging infrastructures

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➢ Online Payment Preferences Vary Around the World

Fig 2: (https://www.technavio.com/report/global-media-and-entertainment-services-global-e-commerce-market-

2016-2020)

Online payment methods weigh heavily on buying decisions and local preferences vary

depending on the country.

Still, it’s easy to overlook how people pay. Cultural-centricity blinds us to the

differences in buying habits. Without carefully considering the data, we default to

whatever payment methods have been working for us domestically.

It’s no surprise that in North America, credit cards are number one by a mile. Digital

payment systems like PayPal and Apple Pay are a close second. At the global scale,

credit cards — 53% — and those same digital payment systems — 43% — also

dominate.

Unlike North America, cash on delivery is the number one choice in Eastern Europe,

India, Africa, and throughout the Middle East. Similarly, enabling direct debit is a must

if your target markets include India, Africa, and both China as well as Southeast Asia

and the Pacific (listed as “Asia” above).

For some, the differences in preference are small. For others, the gap is wide.

➢ Social Media and App-Only Shopping Trends

This e-commerce industry analysis observes that vendors are beginning to switch from

website platforms to app-only services. There has been an increase in consumer

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shopping transactions through mobile apps and social media platforms. Instagram just

recently added an update for e-commerce vendors to include a link to directly purchase

the products featured in the uploaded photo.

Social media advertising is also a continuously developing trend that allows vendors to

use display banner ads and sponsored content to attract customers. For developing

countries with internet connectivity issues (such as Africa, India, and South Korea), this

shift to app-only shopping can pose quite a challenge as it restricts customers from

making purchases.

➢ Competitive E-Commerce Market Trends

This e-commerce industry analysis identifies APAC as the fastest growing e-commerce

region with a tremendous CAGR of more than 25%. Our e-commerce market analysts

predict that increasing internet penetration, the high purchasing power of the middle

class and the growing adoption of smart technologies will help promote this exponential

growth over the next four years. Local APAC e-commerce vendors dominate this

region’s market by restricting foreign influence and thus maintaining revenue growth.

➢ Home Appliance Segment

E-commerce market application segments include home appliances, clothing and

footwear, books, cosmetics, electronics, baby goods, groceries and more. According to

this ecommerce industry analysis, the home appliances segment is the largest segment

by revenue, accounting for more than 32% of the total global ecommerce market share

in 2015. Some trends affecting the growth of home appliance e-commerce segment

include increased recycling and the demand for smart energy options.

➢ Competitive landscape and key vendors

The global e-commerce market is highly competitive due to the presence of many large

established players. Vendors contend in terms of product portfolio, pricing, delivery and

payment options, return policies, and discounts and offers. To increase their profit

margins and extend their geographic presence, vendors in the global e-commerce

industry are making investments in planning, designing, and developing their services

and acquiring new players. The strong positions of the established vendors and long

break-even periods will restrict the entry of new players in the market over the forecast

period.

Leading vendors covered in the e commerce industry analysis are:

Alibaba

• Amazon.com

• Apple • eBay

• Google

• PayPal

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Other prominent vendors featured in this e-commerce market research report include

ASOS.com, Barnes & Noble, Best Buy, Costco, GameStop, Groupon, J. C. Penney and

Walmart.

1.2 FLIPKART AND E-COMMERCE IN INDIA

Fig.4 (http://www.flipkartcareers.com/work-in-india.php)

Through regular sales, exclusive launches and flash sales, e-commerce platforms have

been able to create and maintain demand to make online shoppers come back on a

regular basis. The ultimate vision though for e-commerce companies is to make online

shopping a daily or recurring habit. Flipkart, Amazon and Snapdeal have all tried this

through different means.

Flipkart, India’s most valuable Internet start-up, has retained the prized tag of being the

country’s most popular e-commerce brand for the fourth straight quarter.

According to the fourth version of the RedSeer E-tailing Leadership Index (ELI),

Flipkart (Flipkart Internet Pvt. Ltd) has maintained its lead over rivals such as Amazon

India (Amazon Seller Services Pvt. Ltd) and Snapdeal (Jasper Infotech Pvt. Ltd) in the

e-commerce rankings with a total score of 97—the same score that it notched up during

the last quarter.

Flipkart is an Indian company serving in the

electronic commerce sector and headquartered

in Bengaluru, India. It was founded in October

2007 by Sachin Bansal and Binny Bansal (no

relation). Flipkart has launched its own product

range under the name "DigiFlip" with products

including tablets, USB flash drives, and laptop

bags. As of April 2018, the company is valued

at $20 billion.

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Fig. 5 (http://www.flipkartcareers.com/work-in-india.php)

More aspirational products and high-value items such as premium phones, consumer

electronics and appliances were bought this year. For Flipkart, about half of these sales

on their platform were made using their 'No Cost EMI and Product Exchange' option.

Since banks are banned from providing zero-interest EMIs, online retailers are

collaborating with non-banking finance companies (NBFCs) such as Bajaj Finserv. A

survey conducted by Hitachi Capital Consumer Finance found that for 83 percent of the

e-buyers are strongly influenced to make purchases because of financing offers.

Enabling the customer with attractive and on-demand options, therefore, becomes key.

Initiatives like these along with cashbacks offered by the likes of Paytm, FreeCharge,

and CashKaro, and loans extended by NBFC platforms like Zestmoney—which provide

EMI options for consumers who don’t own credit cards—have boosted e-commerce

sales.

Flipkart’s numbers were helped mainly because of greater brand recall among

consumers, even as it improved on key metrics such as product assortment and lower

product prices.

In the last few years, if there is one industry that has taken center stage in India, it is e-

commerce. Online marketplaces are changing the way India shops. While the e-

commerce in our country is a multi billion-dollar industry, it is not just the big guns that

have profited from it. There are lakhs of small and medium entrepreneurs who joined

the e-commerce bandwagon as sellers and are witnessing significant growth in their

business. So, whether you are a large-scale business, small entrepreneur or plan to start

your own business, e-commerce is your biggest business opportunity. Here’s why:

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Low investment — High returns

The first challenge any aspiring businessman faces is having the capital required to start

a business. To start your business as an online seller, you need minimal investment to

build an inventory and start selling. Apart from your inventory, the only resource you

will need to get started is a computer and a reliable Internet connection.

Most businesses require you to rent or buy a space to set up a business, but e-commerce

does not. No shop or warehouses are required to get started. In fact, you don’t even need

extra manpower if you are partnering with an e-commerce company that has a strong

and efficient logistics network.

Benefits aplenty

As the proverb goes: “Opening a shop is easy, to keep it open is an art”. Managing a

business is indeed a task tougher than setting it up. But managing your business on an

e-commerce platform is easy with the help and support an online marketplace provides

you. Any business related issues at your end are taken care of by the e-commerce

company you are associated with. All you need to focus on is your business expansion

and upholding the quality of your products.

No special technical skills required

One of the biggest myths that still prevail is that one needs to have some technical skills

to operate in an online marketplace. But the reality is that if you can browse the Internet,

surf through websites and can check emails, you are technically skilled enough to

become an online seller.

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1.3 FLIPKART’S LIFESTYLE DIVISION

LIFESTYLE DEPARTMENT

The lifestyle department has been divided into 4 parts that is headed by each of the

Director, Assistant director, Senior managers and then Managers.

The four departments namely are:

1. Women’s clothing

2. Men’s clothing

3. Kid’s clothing

4. Accessories

The men’s clothing is the highest grossing department in the Lifestyle category of

Flipkart and second comes the Women’s clothing. The third is the kid’s category and

the last is the bags and accessories.

Fig. 6 (http://www.flipkartcareers.com/work-in-india.php)

PRIVATE LABEL

VIRTUAL PRIVATE LABEL

MARKET PLACE

MEN'S CLOTHING WOMEN'S CLOTHING ACCESSORIES KID'S CLOTHING

LIFESTYLE

FLIPKART

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Mostly all the departments work from the Market place exception being few of the

private labels that have been introduced by Flipkart.

1.4 MARKET PLACE

The Flipkart Marketplace platform is essentially a virtual mall giving shoppers access

to multiple brands and sellers under one roof. Going forward users will be able to

compare sellers and get the best prices at varied service levels for most products. On the

other hand, sellers stand to benefit from the trust that Flipkart has built with its users by

building a robust and scalable e-commerce platform.

A true e-commerce marketplace adheres to the standards and directions of a zero

inventory model.The e-commerce marketplace becomes a digital platform for

consumers and merchants without warehousing the products. Marketplaces do offer

shipment, delivery and payment help to merchants by tying up with some selected

logistics companies and financial institutions.

Fig. 7 (http://www.flipkartcareers.com/work-in-india.php)

1.5 VIRTUAL PRIVATE LABEL AND PRIVATE LABEL

Virtual private Labels and Private Labels do not have much difference based on the fact

that they are sold on the same market place model.

The basic difference between these two models is the designer’s guidance and it’s

ability to make decisions. The brands namely – Divastri and Metronaut are headed under

Virtual Private Labels and “Anmi” is the Private label.

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Fig. 8 (http://www.flipkartcareers.com/work-in-india.php)

The above picture shows how the age groups between 18-35 years are the most

influencers and shoppers online and this the market which Flipkart wants to tap with

the help of Divastri and Metronaut for which I has worked.

Divastri, Metronaut and Anmi products are put under 'Flipkart Assured' scheme – which

means they have gone through six steps of quality check. Flipkart’s initial focus, is on

establishing the private label’s positioning in terms of quality, design, and pricing,

which in turn will lead to sales and revenue.

After focusing on growth for a decade, this ten-year-old company is now endeavoring for

profitability. These labels are the only factors that can assure profit for marketplaces,

for which sellers’ commission is much lesser than the logistics costs itself. Flipkart gains

absolute control over quality and pricing. Women’s ethnic wear has a few renowned

brands, and Flipkart is focussed on this category. To maintain quality, Flipkart claims,

each fabric has been defined to have certain standards in terms of weight per meter,

composition, yarn count/density, and ensure that they are shrink- proof with zero-colour

loss.

Flipkart provides the design, branding and labels, but sellers manufacture them

following the set standards of quality. Once the manufacturing is done, they get

approval for quality from third-party global agencies, and then they are able to list it.

Rishi claims that since women’s ethnic wear is a long tail category, there is no conflict

of interest with other sellers who sell unbranded items.

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1.5.1 METRONAUT WOMAN:

After the launch of its first private label for women’s ethnic wear Divastri, Flipkart

Fashion launched a private label named Metronaut for women’s smart casual wear and

accessories.

Positioned as an aspirational brand, Metronaut will offer a choice of tees, shirts, jeans,

belts, wallets and sunglasses in 300 styles.

“Metronaut is a combination of Metro + Astronaut, with the black and white logo

designed to resemble a spaceship. The brand is targeted at youth migrating to metros

with hopes and dreams about building a bright future for themselves,”

Stating that Metronaut styles are contemporary and smart at affordable sub-₹1,000

price-points, Vasudev said new collections will be launched every 2-3 months.

Women’s apparel has been one of the largest and fastest growing categories in the online

lifestyle space in India, and Flipkart has been a dominant player in this category with

close to 30 per cent market share.

At present, Flipkart has 35 per cent market share of the overall fashion e-commerce

market and along with Myntra and Jabong, the firm leads with 70 per cent share of the

fashion e-commerce market in India.

On the estimated demand for Metronaut, apparel is a one-lakh-crore market wherein,

sub-₹1,000 apparel constitutes 60 per cent of the demand. While there are strong global

woman’s wear brands and home-grown brands with popular product lines, it gives a

huge opportunity to offer a high-quality, well-designed, affordable product line that will

take on the unorganized market — that’s where Metronaut comes in. Metronaut tees

and socks are priced between ₹350–550 all designed by an in-house team. E- retailers

are introducing private labels as the higher margins they get from private labels will

steer them to the path of profitability in a business where margins are wafer thin.

VIRTUAL PRIVATE LABEL

DIVASTRI WOMAN

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1.5.2 DIVASTRI

Divastri was Flipkart’s first private label in the fashion category to tap into the demand

for women's ethnic wear. With the launch of Divastri, the brand offers unstitched

garments category, typically served by long tail merchants in a bid to control quality

and pricing in the segment.

According to Flipkart, fashion accounts for more than 60% of all units sold on the online

platform.Of this, nearly half the units sold are in the ethnic wear and Indian

contemporary wear category, thus Divastri had been launched to fetch the major sales

in Ethnic wear. In its latest effort in this regard, women’s ethnic wear ‘Divastri’ includes

more than 1,500 styles of sarees, lehenga cholis, and dress materials.

All Divastri products will be under 'Flipkart Assured' scheme – which means they have

gone through six steps of quality check. Flipkart’s initial focus is on establishing the

private label’s positioning in terms of quality, design, and pricing, which in turn leads

to sales and revenue.

Currently, Flipkart has selected 20 sellers for Divastri, based on performance history,

design capabilities, quality standards, manufacturing and sourcing capabilities. It plans

to increase the number in due course.

Flipkart provides the design, branding and labels, but sellers manufacture them

following the set standards of quality. Once the manufacturing is done, they get

approval for quality from third-party global agencies, and then they are able to list it.

Divastri is not particularly of lower ASP (average selling price), but value for money.

Personalisation is essential for higher conversion and repeat customers. Every time a

customer browses through the site, Flipkart collects data on that person’s interests and

shows more relevant selection next time.

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CHAPTER 2

PROJECTS UNDERTAKEN

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2.1 INTRODUCTION

To initially start working on any kind of project in an industry under a particular

brand, it always makes sure the employee/internee is well aware of the department,

it’s workings and especially it’s merchandise and their target customers. Only then we

can have a thorough learning in the Fourth month process in the organization.

Objectives of this project were :

➢ To conduct a market research for understanding of Verticals, Design, Pricing,

Fabric.

➢ To develop appropriate Option & Stock Plan

➢ To efficiently manage the vendors in parallel with the Flipkart team

➢ To effectively manage Internal Stakeholders while Working with different

design and Business Teams.

➢ To conduct after sales analysis and check for changes if necessary.

Project Deliverables were:

PROJECT DELIVERABLES

Developing Option Plans

Cataloguing

After Sales Analysis

Stakeholder Management

Vendor Management

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2.2. TIMELINE OF THE PROJECT

The project I had started was put into 8 steps in the 14 weeks of my internship. The

eight step project’s major deliverables were:

Fig. 9: (Source : Author)

2.2.1. RESEARCH:

• An extensive research was done to check the potential of the women’s

clothing verticals.

• The attributes that were specially taken care of were:

1. Every vertical’s Units sold, Average monthly sales and revenue earned.

2. Top ten sellers in each vertical.

3. Seller’s monthly units sold and the revenue generated.

4. The competitive price points in which they were already playing.

5. Taking note of specific styles, pattern, design and fabric.

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The basic objective was to see that how all the verticals were performing in the

Women’s clothing and how could we target the verticals for best sales. The below image

shows that how many units are sold and the revenue they generate for determining the

average selling price I could have kept for a particular product.

STEP 1:

Fig. 10: (Source : Author)

STEP 2:

Fig. 11: (Source: Author)

ASP REVENUE UNITS SOLD PARTICULARS

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The second step as a part of my research was to figure out the best selling vendors or

sellers in their particular categories. The research in all of the similar steps were done

for eleven verticals but the verticals that had got Live were Metronaut Women Socks,

Metronaut woman T shirts and Divastri Blouse, Dupattas with the research and option

plan I had made.

The research was done on:

1. Tops

2. T-shirts

3. Shirts

4. Socks

5. Camisoles

6. Nighty

7. Dupatta

8. Blouse

9. Scarves and Stoles

10. Dresses

11. Shorts

STEP 3:

The next step is to check for the important attributes relating to the top five

sellers/vendors of the Flipkart so that the option plan of Metronaut Women was as crisp

as them and could give them a competition. This was done to check the pricing that I

could have kept for their products.

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Fig. 12: (Source: Author)

Fig. 13: (Source: Author)

STEP 4:

This step is the most important step because it gives the clear idea of what prices are the

most selling in the market and at what price point the customer of Flipkart will be

willing to buy. The price bucket is thus one of the most integral parts of the option plan

process.

Fig. 14: (Source: Author)

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Fig. 15: (Source: Author)

STEP 5:

The last step in this research was to put the reference image along with the price and

fabric of the socks. The socks is a very small verticals and hence has very little examples

but otherwise, top 15-20 products of all the verticals are put for the reference image.

This helps us determine the styles that are best doing and those that should be included

in the option Plan.

Fig. 16: (Source: Author)

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Fig. 17: (Source: Author)

Fig. 18: (Source: Author)

The research for all eleven verticals was done in the similar way the snapshots of two

verticals i.e socks and dupattas have been shown which are currently live. All these

were the reference images which would have later helped me in making an optimum

option plan.

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2.2.2. OPTION PLAN

The second step was to thus create an option plan for all the verticals for which

the research had been done. Option plans for Divastri and Metronaut were to be

done and that had to be done keeping in the mind their both’s theme and images

in the market and the kind of what Flipkart wants to portray.

Divastri being an Indian wear brand was particularly targeting the home-makers

of India who would be keen on buying the very culturally advanced yet stylish

merchandise but also that is cheap. Divastri was trying to target women of ages

between above 30/35 and hence the most heavy verticals of Divastri was

Lehenga Choli and Sarees.

On the other head, Metronaut was is pictured as a very aspirational brand for the

youth. Metronaut men has already been launched and it was set to launch for

women now thus the image “Metronaut Man” had created, “Metronaut women”

had to be on the same lines and not deviate from the already established theme.

The major challenge for Metronaut women was that the Men’s clothing is the

highest paying category for Flipkart and yet Metronaut Men was not doing the

kind of business it was expected to make. So now, with the launch of Metronaut

women, it wanted to be the amongst the top verticals for Flipkart’s women’s

clothing. Hence the option plan was very carefully put together.

The option plan included:

1. Style

2. Fabric

3. Price

4. No. of options (either single set or combos)

5. Colors

6. Reference images

The option plan which were created had to be communicated to the seller or

vendor when it was fully made. Thus, Option plans were created in the most

easy communicable language for the sellers/vendors to understand.

The integral part while creating the option plan was to take care of both the “Style

trends” as well as the highest seller products and Flipkart’s target market. The

option plan had to constitute the larger part of the products and styles that were

a hit on the Flipkart’s existing market.

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In case of Metronaut, the following option plans were created:

1. Shirts

2. Socks

3. Camisoles

4. Scarves and stoles

In case of Divastri, the following option plans were created:

1. Nighty

2. Dupatta

3. Blouse

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OPTIONS PLANS

i) METRONAUT SHIRTS

Fig. 19: (Source: Author)

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ii) METRONAUT SCARVES:

Fig. 20: (Source: Author)

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iii) METRONAUT SOCKS: Option plan proposed

(CURRENTLY LIVE ON WEBSITE)

Fig. 21: (Source: Author)

METRONAUT SOCKS LIVE ON FLIPKART (Option Plan implemented)

Fig. 22: (Source: Author)

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iv) DIVASTRI DUPATTAS: Option plan proposed (

CURRENTLY LIVE ON WEBSITE )

Fig. 23: (Source: Author)

Fig. 24: (Source: Author)

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DIVASTRI DUPATTAS LIVE ON FLIPKART (option plan implemented)

:

Fig. 25: (Source: Author)

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v) DIVASTRI NIGHT WEAR GOWNS:

Fig. 26: (Source: Author)

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vi) DIVASTRI BLOUSE: Option plan proposed

(CURRENTLY LIVE ON WEBSITE)

Fig. 27: (Source: Author)

Fig. 28: (Source: Author)

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DIVASTRI BLOUSE LIVE ON FLIPKART (Option Plan implemented):

Fig. 28: (https://www.flipkart.com/search?q=DIVASTRI%20B%3BLOUSE&otracker=start&as-show=on&as=off)

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2.3. VENDOR MANAGEMENT

• While the option plan had been finalised, the suitable vendors were supposed to

be finalised.

• According to the season, the budget of the verticals and as per the deadlines, the

launch of socks and tops for Metronaut woman and Dupattas, blouse for Divastri

was set.

• During the first stage when the research is done, the vendors/sellers who are

doing the most business in the particular vertical are taken note of. The buyers

of the women’s clothing mostly have a prior relationship built with the vendors

which makes it easier for us to take the decisions for the vendors. Or if by chance

the vendors are supposed to be chosen, the sellers who are the doing the most

business online are chosen for the preferred verticals.

• A well formatted contract is established by the legal team of the Flipkart which

binds the business relationship between the seller and the Flipkart. The contract

clearly states that the merchandise that has been launched by the name of

Metronaut or Divastri can not be made available under any brand name of the

seller’s name on any portal.

• A meeting is thus scheduled to convey and meet the seller and finalise the deal.

• Following were the sellers which were chosen out of all the vendors and I had to

travel with my manager to the following places because the sellers were also

needed to be told about the option plans and the dates by when the production

must be complete also.

1.Banjara India for Dupattas (Ahmedabad).

Vendor Management

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2. Miss chase, Maniac (Tirupur) and Campus Sutra for T-shirts.

3. AJ Sports for Socks (New Delhi)

4. Klamotten for Nighty (New Delhi)

• After the necessary clauses have been agreed upon by the seller and also seeing

if he has the production capacity for the target option plan, the deal is closed.

• The deal has to be signed by the seller/vendor and also by any of senior managers

or assistant directors of the company. Only then the deal can be carried ahead.

• One of the important steps after the deal has been finalised is that the sellor

should have been successfully registered under the brand name it wants to sell.

For eg. Banjara India needs to make sure he is a registered seller for Divastri on

Flipkart.

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2.4. SAMPLING

Sample

Updating of

Designer

Quality Check

Comments to

Corrected

PHOTO-

Recieve Tracker commens Approval seller Samples SHOOT

i) SAMPLE RECEIVED:

Once the option plan has been communicated, a tentative date has been given by

the seller and the Flipkart so that the samples are received on time and a proper

track record can be maintained. Constant communication between the seller has

to done and make sure the samples are coming.

ii) UPDATING OF TRACKER:

A tracker by the Quality check team has been made on the google sheets so that

all of the brand’s responsible people can update the trackers and a record can be

made.

The tracker involves the data:

1. Date the sample is received by the company

2. Seller’s name

3. Brand’s name

4. The specific product code that has been given by either the seller or me.

6. The colour of the product

7. The date when the QC team receives the garment

8. The date when the comments have been given by the QC team.

iii) DESIGNER COMMENTS:

In this case of VPL, the designer gives the silhouette and major graphic or text

guidelines to us which we communicate to the seller/vendor. Sometimes, the

designer too communicates directly to the seller, and hence when the sample

comes forward, the designer needs to approve the design or the garment and

mentioning the product code, send me the comments if the sample is approved

or not. And also if any kind of corrections need to be made.

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iv) QUALITY CHECK:

Certain quality measures have been set by the quality check team prior to

receiving the samples. Some of the quality check criterias involve

2. Fabric quality (tear resistant or if the color will bleed)

3. Material used in the garment i.e certain percentage of cotton or polyster.

4. GSM of the garment.

5. Basic things like if there is any colour variation within the garment or any

oil stains during the production process.

6. Checking if the seams and zippers etc are all okay.

v) COMMENTS TO THE SELLER:

Appropriate comments to the seller are communicated in a proper MS Excel

format which were shared by me to the seller.

Fig. 28: (Source: Author)

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Fig. 29: (Source: Author)

vi) CORRECTED SAMPLES:

Once the sample comments have been sent by the team, the seller/vendor is made clear

of the faults and how he could correct them on call for a better understanding. Estimated

time for new samples is almost 10/15 days and we expect the new samples to arrive

within 25 or 30 days. When the new samples come, it goes through the same process of

receiving designer and QC comments and then it is approved and put in the production.

The final products are then sent for the photoshoot.

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2.5. PHOTOSHOOT

This is the step where the cataloguing process begins. Amazon is considered the

Flipkart’s biggest competitors and Myntra is the one which considerably controls most

of the fashion online market. Hence, when the photoshoot guidelines are made

considering Amazon, Myntra, Flipkart’s existing photoshoot and all other major

websites for the particular verticals.

Taking note of all the major cataloguing of the above said websites, a catalog guideline

is submitted to the seller or vendor who is getting the photoshoot done himself. In the

some cases like socks and dupattas, where the photoshoot was conducted by me from the

photoshoot agencies from Delhi and Surat respectively, the guidelines were sent to them

directly.

The snapshots of presentation for the photoshoot guidelines were like:

v) There is a specific backdrop that has been finalised by the marketing team

of Flipkart so that the private labels can be differentiated from the regular

brand on Flipkart and thus this is the backdrop which should be definitely

put.

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vi) For the photographers and the sellers/vendors who get the photoshoot

done by themselves, they have to be provided by the specific model’s

attributes so that the catalogue looks of a premium brand. Only then the

products leave a lasting impression on the audience.

vii) This is a case of photoshoot guideline for Nighty and hence no specific

instructions for hair were given. In some cases like that of Divastri

dupattas which should reflect Indian culture, guidelines for them are

different.

And in case of Nighties, websites like Clovia or Pretty secrets having

better catalogues and thus their reference is given.

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viii) Below are the four shots which would get Live on the Website:

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In cases like Metronaut woman where the Photoshoot was done in Bangalore only, me,

the designer and the stylist of the photoshoot agency were all present. The photoshoot

for Metronaut woman tops was done like:

Fig. 30: (Source: Author)

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This is how the Metronaut woman catalogue now looks like:

Fig. 31: (https://www.flipkart.com/search?q=metronaut+woman&otracker=start&as-show=off&as=off)

Taking this image as a reference, out of many poses, the best and most clear ones are

selected for the website.

Fig. 32: (https://www.flipkart.com/search?q=metronaut+woman&otracker=start&as-show=off&as=off)

These shots included the Style shot, zoomed-in shot, casual shot and the front and

back view together.

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2.6. CATALOGUING

The process of getting images and products live on the website is too long and every

step needs to be done very carefully.

The products can be done Live only from the seller portal by the seller only but the

initial process where the Seller ID is generated and product listing IDs are created was

handled by me.

REFERENCE IMAGE:

Fig. 33: (Source: Author)

• The above image show the File where the FSNs (Flipkart serial numbers) have

been generated. Before the FSNs are generated, a BOF file needs to be submitted

and only then the catalogue team provides the FSNs.

• After the FSNs have been generated for each product, the images with their

respective FSNs are uploaded in the dropbox and then again that file is shared

with catalogue team.

• Once the dropbox links are shared with the team, the images are uploaded on the

website but are not made Live. Getting images live takes more time.

• Hence with the whole process of getting images live is done and then the seller

is merely asked to update the prices at which he wishes to sell the products.

• When the Products have been made live, the products need to get the right

audience for the sale boost, hence, for this purpose the Flipkart’s data base is

checked and in reference to that, specific keywords are put in relation to the

merchandise.

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REFERENCE IMAGE:

Fig. 34: (Source: Author)

After the products have been made live, there are certain size standards that have been

set by the Flipkart QC team which has to be taken care by the sellers/vendors. The size

chart is uploaded after the products have been made live on the website.

A full format of all the measurements of an ideal size are given by the QC team which

has all the characteristics of the garment.

My work was to put the sizing into a jist and a table for the catalogue team to upload.

The size charts are uploaded only on the basis of the attributes of the garment.

Like:

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REFERENCE IMAGES :

Fig. 35: (Source: Author)

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2.7. LAUNCH

After the photos and products have been successfully made live on the website, we had

to make sure that the new products are visible enough on the website. PLA (Product

Listing Advertisements) is to be started. Every brand’s financial and marketing team

decides on the budget for the PLAs and hence, the PLA is started and every weeks bid

can be changed or altered as per the brands approval.

A separate tracker for the Flipkart’s Private Label is maintained where we can see the

daily sales and the orders that start pouring in and the PLA’s can be adjusted according

to those views and orders placed.

A day is decided where the brand which has been launched receives a special mention

on the homepage of Flipkart and that is also assumed to affect the sales.

2.8. AFTER SALES ANALYSIS

REFERENCE IMAGE:

Fig. 36: (Source: Author)

The above picture shows the after-sale analysis that was done by me to further change

or alter the prices and the PLA boost.

These are some of the circumstances which influence the changes in any of the above:

1. The product is not getting any views at all and neither any sales.

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This means that the PLA is not being done on the specific product and the sales

are being severely affected. The aim of the PLAs are to give any product the

maximum views it can get.

Solution: The PLA bid is made much higher and the products that did not get

any views at all are put on first two pages.

2. The product is getting views but is not converting into sales.

Sometimes, the product because of PLA, is visible on the first or second pages

but because of some reason does not the adequate amount of orders.

Mostly in these case, the price is considered to be the factor that is affecting the

orders. Hence, it needs to be resolved.

Solution: The average view what I had considered was 100 views because the

brand was just launched. In this case, the T shirts and socks were getting the

desired number of view but no sales. Thus the price had to be dropped. So, the

products starting at Rs. 599 were asked to re-priced them between Rs. 450 – Rs.

500.

3. The product is getting both views and sales.

This is one of the best cases because in this case, it proves that the PLAs are

working as the product is getting views as well as being ordered. This is the

scenario where Flipkart as a brand and a retailer can make the most business.

Solution: This is one of the most desirable scenarios and thus it means that at

whatever price the products were stated, the target audience was willing to pay

for it. Hence, in this case the products were not re-priced.

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CHAPTER – 3

LEARNING OUTCOMES

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Internship at Flipkart was a great learning experience as it gave me hands on exposure

of working in an organization set-up for the second time. Interning in the Women’s

Clothing gave me a lot of idea on the know-how and functioning of the department, yet,

there will always be a room for more and more learning. This company also taught me

other things like organizational behavior, time management and how to conduct one-

self in a corporate world. My experience couldn’t have been more enriching.

While Interning I gained knowledge about:

• How truly research matters a lot before taking any either small or big decisions

in a business. The drawback while launching a brand is that we can not predict

the amount of sales nor the customer’s reaction to the merchandise we provide,

hence, research is the only way we can try giving the customers as per their

requirement or preferred styles.

• As much as research plays an important part, so does making the correct option

plan because that is the collection that will influence the revenue a company will

earn in the next 3 months.

Hence, making an adequate option plan is one of the most important steps for a

brand launch.

• Got an insight about how Flipkart works and through such an elongated process

the products get live on the website.

• Learnt how the process of designing, manufacturing, Sampling for Flipkart is

done in an elaborative way.

• The process of pitching and finalizing to contacting to vendors and

manufacturers was learnt.

• I learnt that not just few people but so many teams are involved in getting a single

product online. By the end of the internship I was thoroughly clear about the

cataloguing process of Flipkart.

• How after sales analysis is one of the most important step after the brand has

been launched. Unless we do not know how to adequately do this process, the

brand wont be able to grow.

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CHAPTER – 4

REFLECTION

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My experience with FLIPKART was by far the best experience as compared to the other

companies I had earlier worked with. My manager especially made sure that I learn and know

how the whole process works and I learn at every step which is on-going in the business. I

could not have got a better mentor as he made me push my limits and I could see myself

growing and learning with every passing day.

The employees and the team I worked with was one the best teams and everybody was super

friendly. Despite being a fresher to the industry, people welcomed me and offered me roles

and duties trusting me.

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BIBLIOGRAPGHY

• Alnoor Peermohamed, “Flipkart launches it’s first private label fashion brand.”

Last updated June,2017

www.business-standard.com/article/companies/flipkart-launches- divastri-its-first-private-

label-fashion-brand-117062000062_1.html

• Payal Ganguly, “Flipkart Fashion launches first private fashion label Divastri”.

Last updated on July,2017

https://economictimes.indiatimes.com/small-biz/startups/flipkart-launches-first-private-

fashion-label-divastri/articleshow/59212687.cms

• Retrieved May 2018 from,

http://www.flipkartcareers.com/work-in-india.php

• Retrieved May 2018 from,

www.flipkart.com/search?q=metronaut+woman&otracker=start& as-show=off&as=off

• Retrieved May, 2016 from,

https://en.wikipedia.org/wiki/Flipkart