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!!!!!!!!!!

COMPETITION COMES
CALLING

COST OF ACQUISITION

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 ECommerce of India resulting in signifcant
economies of scales.

GAME
OVER
EFFECT

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.

 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 ecommerce 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: NonStore 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
Worlds 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
cant 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 ecommerce 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
Flipkarts 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.

Myntras 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

Flipkarts 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 its just about products.
1)Curbing negative reviewsOfficial 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 ideasOne might think the similarity between both is limited to the fact that Flipkart also started their business by
selling books just like Amazon.
But flipkarts Photocopiers run way deeper.

Benefits

FLIPKART MYNTRA
THE GAME CHANGER
-> Flipkart and Myntra together create the largest
e-commerce stories and together will
dominate the market.

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

Myntra
30%
Others
50%

Myntra
Flipcart
Others
Flipcart
20%

Market Share
35%
65%

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 Flipkarts 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.

-> Walmarts 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.

FUTURE AND SCOPE

Indian Population is
1.2 billion

330 Million internet

users

Only 10 Million
online Shoppers

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

WHY WILL IT GROW?

BUSY
LIFESTYL
ES

RISE OF
TIER II
CITIES

TIE-UPS
WITH
INTERNA
TI-ONAL
BRANDS

INCREAS
E IN
DISPOSAB
L-E
INCOME

CoD
FACILITY

CONCLUSION

THANK YOU!