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How Flipkart broke India's online shopping inertia - Times Of India

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How Flipkart broke India's online shopping inertia

IANS Dec 9, 2011, 12.49PM IST

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Tag : real estate

Indian Institute of Technolog -Delhi

NEW DELHI: It was meant to be a portal that compared different e-commerce websites, only there weren't enough of them to be compared. Thus was born Flipkart, making sure that online shopping would never be the same again in India. From a two-member embryonic idea to a 4,500member company, the Flipkart story is not just about stupendous success and mind-numbing numbers. Much more than that, it's about redefining customer experience and breaking online shopping inertia.
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Started in 2007 by Sachin Bansal and Binny Bansal -- both from the Indian Institute of Technology-Delhi (IIT) and with prior experience in Amazon -- the Bangalore-based firm ships close to 30,000 items per day. Or, in other words, 20 products per minute.

IN-DEPT H CO ERAGE Customer Service Online Shopping

"We are clocking daily sales of Rs.2.5 crore ($ 5 mn). Our growth rate has been 100 percent quarter on quarter," Sachin Bansal, CEO of Flipkart said. But the interesting part is that around 60 per cent of Flipkart's orders are cash or card on delivery.

"Indian consumers are much more cautious about shopping online as compared to the Wes They are reluctant to divulge credit card details. The cash on delivery service has helped a lo traditional consumers turn to online shopping," he adds.
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How Flipkart broke India's online shopping inertia - Times Of India

Al o, he model ha nbol ed he lock o a e po ed o he benefi of pla ic mone a

hole ne c ome ba e hich ha n' been e o ho e i h a defa l echnological handica ih

"I' e ne e nde ood ho o pa b ca d online. The be I can do i e an ATM. I mo e eb i e had he ca h on deli e op ion," a Sneha Anand, a chool eache . Sonal Nangia, enio ice p e iden ( e ail) a Technopak, a " pe io c ome e pe ience i offe ". ib e Flipka ' cce

o he

"Righ f om b o ing o deli e , o can ack o o de . Y o can p e-o de an n elea e book, ge good p ice , e en he c ome e ice i e ong. Rai e an i e, i ' efficien l e ol ed," Nangia aid.

Add Sachin Ban al, "When e a ed, he c ome e pe ience offe ed b e-comme ce i e a belo a e age. O aim a o add e hi . We feel ha i ' hi foc on c ome a i fac ion and o ne hip of he c ome e pe ience ha ha o ked in o fa o ." The pe io c ome e ice no i h anding, Flipka ' bigge d a h ge di co n i offe -- m ch o he en of offline o e .

ha p obabl been h

"I a ai ing o la m hand on Ha ki M akami' ne book '1Q84'. B i a a oo e pen i e a R .1,000. B Flipka had a fla 30 pe cen di co n , and I go i in R 700," Madh a Vi h aka ma, a Delhi Uni e i den .

Tho gh all book o e ge p o 50-60 pe cen di co n f om p bli he , he lo o e head one of he n me o i e of online o e -- enable Flipka o pa on he a ing in he fo m of di co n .
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The compan ock nea l 11.5 million i le , "making he la ge book e aile in India. pe da a, e ha e 80 pe cen ha e of he online book ma ke ", Sachin Ban al a . So ill hi end pell doom fo offline book o e ? "No," belie e An j Bah i of Bah i on .

"The e' a h ge ma ke fo e e one o co-e i . Be ide , Flipka ' ma ke i o all diffe en o ng people of 20-25 age g o p b book f om hem. Some 80 pe cen of hei b ine i chic li e a e. The mo e en ible and ma e eade ill al a go o a book o e," Bah i B Nangia of he G gaon-ba ed Technopak beg In e na ionall al o ha ha been he end." o diffe . "The adi ional o e a e o

She belie e he inc ea ing "acce o in e ne , mo e iPad , ma phone , ophi ica ed echnolog ha gi e 3D ie of p od c , ime poo con me , inc ea ing co of ill all lead o a hif o digi al comme ce". B i h Ama on, con ide ed a big ha k in online e ail pace, al ead knocking a India' ill ha e l in d indling fo ne fo Flipka ?

"No, India i a h ge ma ke , he e i m ch mo e pace fo mo e e- e ail o e ," a Sonal. Bah i, ho e e , feel he e i a palpable dange . "Flipka o k beca e of di co n . Ama can offe g ea e di co n a i can ake bigge lo e being a bigge compan . Tha ill cha he d namic ," he aid.
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How Flipkart broke India's online shopping inertia - Times Of India

Al ead , he e a e pla e like Infibeam, Naap ol and Le b in he ma ke . Acco ding o a A ocia ed Chambe of Comme ce and Ind of India (A ocham) e , he online e ma ke in India ma g o o R .70 billion (o e $1.30 billion) b 2015 f om R .20 billion in 2011 a in e ne acce imp o e .
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