Project Report on
MARKETING STRATEGIES OF FLIPKART
In partial fulfillment of requirement for the Award of Degree of M.Com
Subject: International Marketing
Submitted By: Mr. Vicky Singh
Roll No. ! ".#om. $art % II& Seme'ter ( III
)nder the *uidance of: Pro. Praka!" M#lc"an$ani
SMT. C%AN&I'AI %IMAT%MAL MANS(K%ANI COLLEGE
)+,ASNA*AR % -!/
(NI)ERSIT* OF M(M'AI +,- / +,-0
This This is to certi certify fy that, that, Mr. Vicky Singh Singh of M.Com Part – II, has successfully completed the project in in International International Marketing titled Marketing titled “Marketing Strategies of under my guidance for the academic year 2015-16 . The information Flipkart” under submitted is true and original as per my knowledge.
Mr. Prakash Mulchandani (Internal Guide)
Prof. Gopi Shamnani (Coordinator, M.Com)
Dr. Padma V. Deshmukh (I/C Principal)
________________ External Examiner 2
&ECLARATION
I& Mr. Vicky Singh 'tudent of S"0. #,ANDIBAI ,I"A0"A+ "ANS)1,ANI #2++3*3& )+,ASNA*AR 'tudying in ".#om $art % II& Seme'ter % III& hereby declare that I ha4e completed thi' project on “Marketing Strategies Of Flipkart” for the subject “Internation “International al Marketing” Marketing”
in the academic year !5(6.0he
information 'ubmitted 'ubmitted i' true and original to the be't of my 7nowledge.
111111111111111 Mr. Vicky Singh
3
ACKNO2LE&GEMENT
0he 'ati'faction& which accompanie' the 'ucce''ful completion of the project& i' incomplete without the mention of a few name'. 8e ta7e thi' opportunity to ac7nowledge the effort' of the many indi4idual' who helped u' ma7e thi' project po''ible.
8e would li7e to e9pre'' our 'incere gratitude to our $rof. Prakash Mulchandani for gi4ing u' an opportunity to wor7 under her e'teemed guidance which helped u' to impro4e upon our lacunae during the project re'earch. 8e are 4ery grateful to her for pro4iding u' with e4ery po''ible opportunity freedom to learn and e9plore. 8e are deeply indebted to her for her 'ugge'tion'& con'tant in'piration and encouragement.
4
E3EC(TI)E S(MMAR*
0he concept of e(commerce i' downloading at a fairly rapid pace in the p'yche of the Indian con'umer. In the metro'& 'hortage of time i' a big dri4er for online 'hopping. 2n the other hand& acce''ibility to a 4ariety of product' ma7e' audience' from 'maller town' and citie' opt for the online route. "ajor retailer' face challenge' in 'toc7ing their 'tore' adequately. 2ften& cu'tomer' are unable to purcha'e item' of their choice& thu' prompting them to re'ort to e(retailer'. ;lip7art ha' accorded a lot of importance in tru't building e9erci'e that i' why it ha' a 'trong #u'tomer Support 0eam which help' the cu'tomer' with the web'ite guidance and re'ol4ing i''ue'. ;lip7art u'e' it' in(hou'e logi'tic' <;1+= a' well a' third party logi'tic' $+= 'er4ice' a' the logi'tic' i' one of the mo't important for a 'ucce'' of any ecommerce 4enture. Along with the logi'tic'& re4er'e logi'tic' of ;lip7art i' al'o well de4eloped with a / day return policy and flip7art bearing courier charge' for returned product'. ;lip7art when it 'tarted employed the con'ignment model of procurement a' it wa' the mo't ri'7 free way to operate but then they changed to In4entory model to en'ure 'uperior deli4ery time'. But with foreign direct in4e'tment <;DI= fa4oring the mar7etplace model in April !/& ;lip7art changed it' bu'ine'' model to mar7etplace model. 8S Retail a pet project of ;lip7art now handle' the in4entory and warehou'e management. ;lip7art ha' continued to fare 4ery well in term' of the deli4ery time becau'e of their de4eloped 'upply chain management and dedicated cu'tomer 'upport team to en'ure cu'tomer delight. 0hi' cau'e' them to build a lot of 'lac7 into their e9i'ting 'y'tem' cau'ing higher co't' at 'e4eral point' in the 'upply chain. ,ow they addre'' thi' challenge i' what will determine their future 'ucce''.
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TA'LE OF CONTENTS . Introduction 24er4iew( 3 commerce
>
"ar7et Si?e and $layer'
@
,i'tory
-
;unding
5
Acqui'ition
>
!. ;lip7art
/. "ar7eting Strategie' "ar7et 24er4iew
!5
"ajor #ompetitor'
!6
"ar7et Segmentation
/!
"ar7et $o'itioning
Strategie'
#yber Security #hallenge'
/
0a9ation #hallenge'
/6
-. #hallenge'
5. S820 Analy'i'
/>
#onclu'ion
--
0he 8ay Ahead
-
Bibliography
-/
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INTRO&(CTION 24er the la't decade& the Internet ha' changed the way people buy and 'ell good' and 'er4ice'. 2nline retail or e(commerce i' tran'forming the 'hopping e9perience of cu'tomer'. 0he 'ector ha' 'een unprecedented growth e'pecially in the la't two year'. 0he adoption of technology i' enabling the e(commerce 'ector to be more reachable and efficient. De4ice' li7e 'martphone'& tablet' and technologie' li7e /*& -*& 8i(;i and high 'peed broadband i' helping to increa'e the number of online cu'tomer'. Ban7' and other player' in e(commerce eco'y'tem are pro4iding a 'ecured online platform to pay effortle''ly 4ia payment' gateway'. 0he homegrown player' ha4e 'hown tremendou' growth and attracted 'ome big in4e'tor'. 0he entry of global biggie' li7e Ama?on and Alibaba ha' ta7en the competition to a new le4el. 3( tailer' are differentiating them'el4e' by pro4iding inno4ati4e 'er4ice offering' li7e one(day deli4ery& /(day replacement warranty& ca'h on deli4ery <#oD=& ca'hbac7 offer'& mobile wallet'& etc. 0he 'upply chain ha' impro4ed 'ignificantly and e(tailer' are e4en le4eraging on the 'er4ice' of Indian $o't for greater reach acro'' the country. In !-& Indian $o't collected !.> billion through #oD option of payment. India 'lipped from -th to !th ran7 among the top / de4eloping countrie' in !- *lobal Retail De4elopment Inde9 <*RDI= that loo7' at mea'ure' for retail in4e'tment' worldwide. #hile and #hina are leading in the *RDI ran7ing'. 0he 'ector i' 'till in it' growth 'tage in India and ha' enormou' potential to offer in the coming year'. 0he go4ernment' mo't pre'tigiou' Digital India project could ta7e the 'ector to new height'.
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MARKET SI4E 0he digital commerce mar7et in India ha' grown 'teadily from -.- billion in ! to /.6 billion in !-. A' per indu'try e'timate'& the digital commerce mar7et in India i' e9pected to reach 6 billion by the end of !5 on the bac7 of growing Internet population and increa'ed online 'hopper'. 2nline tra4el account' for nearly 6C of e(commerce bu'ine'' while e(tailing contribute' about !@C. i'a India 'pend data 'howed 5/C growth in the number of e(commerce tran'action' in !-.
Similarly& there i' an almo't 'imilar growth trend of e(commerce in the global mar7et. 0he e"ar7eter report had predicted that the bu'ine''(to(con'umer
8
PLA*ERS
Se4eral player' ha4e e'tabli'hed their place in e(commerce mar7et ju't in few year'. 8ith the ri'ing demand of digital commerce& inno4ati4e 'tartup' are emerging in all 'egment'. ,ome grown player' are trying to compete head(on with global player' who ha4e the ad4antage of 'cale& technology and deep poc7et'. According to Deloitte' 'tudy G*lobal $ower' of Retailing !5&H Ama?on continue' to dominate the world of e(#ommerce with net product 'ale' of 6 billion in !/. ;lip7art i' the large't e(tailer in India with a 4aluation of about billion and trying to rai'e fund' to compete with global biggie' li7e Ama?on and Alibaba. Snapdeal i' another homegrown player with a 4aluation of 5 billion. In 2ctober& Snapdeal rai'ed 6! million from the Eapane'e telecom and media group Softban7& who al'o ha' a /C 'ta7e in #hinaJ' e(commerce leader Alibaba. 2ther emerging player' are % Boo7"yShow with almo't @C of the online entertainment tic7eting mar7etF $aytm with almo't ! million u'er' i' leading pro4ider of 4irtual wallet.
0he global e(commerce mar7et i' more ad4anced in term' of technology& awarene''& and payment 'y'tem'. Ama?on and Alibaba are two big player' when it come' to global e(commerce mar7et. Alibaba account' for more than >C of all online purcha'e' in #hina and ha' a global pre'ence. It manage' the mar7etplace and ha' commi''ion ba'ed bu'ine'' model with no product' of it' own. Ama?on& on the other hand& 'tarted a' online boo7 'tore and e9panded the bu'ine'' a' mar7etplace and al'o 'ell' it' own con'umer electronic' 'uch a' 1indle eBoo7 reader'& ;ire 0ablet'& and ;ire 0. 2nly two pure play web(only e(tailer'
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FLIPKART
0hing' are ea'ier 'aid than doneK 0o reali?e our dream' and that al'o in 'uch a grand manner i' really a tough ta'7. 0he founder' of ;lip7art ha4e probably conquered their dream' with the ama?ing 'ucce'' of ;lip7art. ;lip7art i' 'omething which ha' really opened up the Indian e( commerce mar7et and that al'o in a big way. ;lip7art wa' co(founded by Sachin Ban'al and Binny Ban'al in 2ct !. Both are graduate' from II0(Delhi and ha4e prior wor7 e9perience in Ama?on.com 0hey both were 'olid coder' and wanted to open a portal that compared different e(commerce web'ite'& but there were hardly any 'uch 'ite' in India and they decided to gi4e birth to their own e(commerce 4enture ( ;lip7art.com
0hu' wa' born ;lip7art in 2ct ! with an initial in4e'tment of - lac
;lip7art began with 'elling boo7'& 'ince boo7' are ea'y to procure& target mar7et which read' boo7' i' in abundance& boo7' pro4ide more margin& are ea'y to pac7 and deli4er& do not get damaged in tran'it and mo't importantly boo7' are not 4ery e9pen'i4e& 'o the amount of money a cu'tomer ha' to 'pend to try out oneJ' 'er4ice for one time i' 4ery minimal. ;lip7art 'old only boo7' for the fir't two year'. ;lip7art 'tarted with the con'ignment model
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initial month' the founderJ' per'onal cell number' u'ed to be the cu'tomer 'upport number'. So& in the 'tart they tried their be't to pro4ide good 'er4ice& focu' on the web'ite ( ea'y to brow'e and order and ha''le(free& and 'tro4e hard to re'ol4e any cu'tomer i''ue'. Since there were not any e'tabli'hed player' in the mar7et& thi' allowed them a lot of 'pace to grow& and they did in fact grew 4ery rapidly.
0he company 'tarted from ! employee' and now ha' around -5 employee'.
;lip7art 'tarted with con'ignment model a' di'cu''ed abo4e& 'ince mo't of the cu'tomer i''ue' li7e deli4ery delay' etc. re'ult from procurement model& the company 'tarted opening it' own warehou'e' a' it 'tarted getting more in4e'tment'. 0he company opened it' fir't warehou'e in Bangalore and later on opened warehou'e' in Delhi& 1ol7ata and "umbai. 0oday the company wor7' with more than 5 'upplier'. A' on date more than >C order' of ;lip7art are handled 4ia warehou'e' which help in quic7 and efficient 'er4ice.
A humble beginning from boo7'& ;lip7art now ha' a gamut of product' ranging from: #ell phone'& laptop'& computer'& camera'& game'& mu'ic& audio player'& 0J'& healthcare product'& wa'hing machine' etc. etc. Still& ;lip7art deri4e' around 5C of it' re4enue from 'elling boo7' online. ;lip7art i' the Indian mar7et leader in 'elling boo7' both offline and online& it enjoy' an online 'hare of around >C. 0he electronic item' ha4e a large number of player' li7e Naaptol& +et'buy& Indiapla?a& 0radu'& Infibeam& Lebhi etc. 0he electronic mar7et 'hare i' di'tributed among them in different un7nown proportion'.
India ha' around /.5 crore internet u'er' today where a' the number of home' with #able and Satellite <#S= tele4i'ion i' .5 crore. 0he e9pected internet u'er' will reach a figure of / crore by !- and #S home' are e9pected to be - crore by !-. 0hu' India ha' a tremendou' internet growth and with the cu'tomer' getting accu'tomed to e(commerce& the future of e( commerce 'ector i' definitely ro'y. An appro9imated !5 lac people ha4e tran'acted online thi' year& the number i' all 'et to increa'e with time.
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Al'o to mention mo't of the ;lip7art cu'tomer' u'e internet from $#J'M+aptop' to order good'. 0he u'e of mobile internet i' 4ery le'' at the moment& but with the ad4ent of 'mart phone' the u'e of mobile internet for e(commerce tran'action' will 'oar with time. India ha' > crore mobile net u'er' at the moment& the number i' e9pected to 'well to !!.5 crore by !-.
Intere!ting Stati!tic! a5o#t t"e compan6
A' of today& ;lip7art employ' o4er -5 people.
It e9perience' ! million unit 'ale' and - million unique 4i'itor' per month with 'ale' growing at !5C per month& eyeing a 5 million run rate.
8ith clo'e to .5 million title'& ;lip7art i' the large't online boo7 retailer in India with > per cent mar7et 'hare.
It ha' a regi'tered u'er ba'e of two million cu'tomer' and 'hip' out a' many a' /& item' a day& cloc7ing daily 'ale' of R' !.5 crore.
;lip7art i' rapidly e9panding it' networ7 of warehou'e'& di'tribution center'& procurement operation' and !-M cu'tomer 'upport team'. 0he company e4en ha' it' own deli4ery networ7 in ! citie' and i' 'et to e9pand thi' e4en further by ne9t year.
F(N&INGS
12
•
Initially funded by the Ban'al' them'el4e' with - +a7h'
•
;lip7art ha' 'ince then rai'ed two round' of funding from 4enture capital fund' Accel India
•
$ri4ate equity firm' #arlyle and *eneral Atlantic are in tal7' to jointly in4e't about 5 million to ! million in ;lip7art& according to 'ource'.
•
In Euly !/& ;lip7art rai'ed )SD 6 million from pri4ate equity in4e'tor'.
•
In 2ctober !/& it wa' reported that ;lip7art had rai'ed an additional 6 million from new
in4e'tor'
Dragoneer
In4e'tment
*roup& "organ
Stanley
8ealth
"anagement& Sofina SA and ulcan Inc. with participation from e9i'ting in4e'tor 0iger *lobal.
•
2n !6 "ay !-& ;lip7art announced that it ha' rai'ed ! million from Luri "ilner' DS0 *lobal and it' e9i'ting in4e'tor' 0iger *lobal& Na'per' and Iconiq #apital.
•
In early Euly !-& it wa' al'o highly 'peculated that ;lip7art wa' in negotiation' to rai'e at lea't 5 million& for a li7ely li'ting in the )S for !6.
•
2n !@ Euly !-& ;lip7art announced that it rai'ed billion from 0iger *lobal "anagement ++#& Accel $artner'& and "organ Stanley In4e'tment "anagement and a new in4e'tor Singapore 'o4ereign(wealth fund *I#.
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AC7(ISITIONS
+,-,8
8eRead& a 'ocial boo7 di'co4ery tool. 0he 'tated goal wa' to gi4e ;lip7art a 'ocial recommendation platform for buyer' to ma7e informed deci'ion' ba'ed on recommendation' from people within their 'ocial networ7. +,--8
"ime/6& a digital content platform company. +,--8
#ha7pa7.com i' a Bollywood new' 'ite that offer' update'& new'& photo' and 4ideo'. ;lip7art acquired the right' to #ha7pa7' digital catalogue which include' -& filmographie'& & mo4ie' and clo'e to 5& rating'. ;lip7art ha' categorically 'aid that it will not be in4ol4ed with the original 'ite and will not u'e the brand name. +,-+8
+etbuy.com i' India' 'econd large't 3(retailer in electronic'. ;lip7art bought the company for an e'timated )S !5 million.
+,-98
Acquired "yntra.com in an e'timated INR !& crore deal.
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MARKET O)ER)IE2 India ha' an internet u'er ba'e of about !5.! million a' of Eune !-. 0he penetration of e(commerce i' low compared to mar7et' li7e the )nited State' and the )nited 1ingdom but i' growing at a much fa'ter rate with a large number of new entrant'. 0he indu'try con'en'u' i' that growth i' at an inflection point. )nique to India C of Indian e( commerce tend' to be #a'h on Deli4ery. ,owe4er& #2D may harm e(commerce bu'ine'' in India in the long run and there i' a need to ma7e a 'hift toward' online payment mechani'm'. Similarly& direct import' con'titute a large component of online 'ale'. Demand for international con'umer product' %C. 3lectronic' and Apparel are the bigge't categorie' in term' of 'ale'.
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1ey dri4er' in Indian e(commerce are: •
Increa'ing broadband Internet
•
Ri'ing 'tandard' of li4ing and a burgeoning& upwardly mobile middle cla'' with high di'po'able income'
•
A4ailability of much wider product range
•
Bu'y life'tyle'& urban traffic conge'tion and lac7 of time for offline 'hopping
•
+ower price' compared to bric7 and mortar retail dri4en by di'intermediation and reduced in4entory and real e'tate co't'
•
Increa'ed u'age of online cla''ified 'ite'& with more con'umer buying and 'elling 'econd( hand good'
IndiaJ'
retail market i'
e'timated at - billion in ! and i' e9pected to grow to 65 billion
by !6 and >5 billion by !!& % e'timated #A*R of C. According to ;orre'ter& the e( commerce mar7et in India i' 'et to grow the fa'te't within the A'ia($acific Region at a #A*R of o4er 5C between !!%6. A' per OIndia *oe' DigitalO& a report by A4endu' #apital& a leading Indian In4e'tment Ban7 'peciali?ing in digital media and technology 'ector& the Indian e(commerce mar7et i' e'timated at R' !>&5 #rore <6./ billion= for the year !. 2nline tra4el con'titute' a 'i?able portion <>C= of thi' mar7et today. 2nline tra4el mar7et in India i' e9pected to grow at a rate of !!C o4er the ne9t - year' and reach R' 5-&> #rore <!.! billion= in 'i?e by !5. Indian e(tailing indu'try i' e'timated at R' /&6 crore <)S> mn= in ! and e'timated to grow to R' 5/& #rore <.> billion= in !5.
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24erall e(commerce mar7et i' e9pected to reach R' & &> crore' <)S!- billion= by the year !5 with both online tra4el and e(tailing contributing equally. Another big 'egment in e( commerce i' mobileMD0, recharge with nearly million tran'action' daily by operator web'ite'.
MA:OR COMPETITIORS
Ama;on.com i' an American international electronic commerce company with headquarter' in
Seattle& 8a'hington& )nited State'. It i' the worldJ' large't internet company& ba'ed on re4enue and number of employee'.
Snap$eal.com i' an online mar7etplace& headquartered in New Delhi& India. 0he company wa'
'tarted by 1unal Bahl and Rohit Ban'al& in ;ebruary !.
e'a6 Inc.& i' an American multinational corporation and e(commerce company& pro4iding
con'umer(to(con'umer 'ale' 'er4ice' 4ia Internet. It i' headquartered in San Eo'e& #alifornia& )nited State'.
%omeS"op-< i' an online and on(air retail and di'tribution 4enture of Networ7 > *roup& India.
,omeShop> wa' launched on @ April !> a' IndiaJ' fir't !-(hour ,ome Shopping 0 channel.
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*e5"i.com i' an Indian 2nline 'hopping 3(commerce portal for ,ome& +ife'tyle ;a'hion e(
retailer& launched in the year !@.
MARKET SEGMENTATION 0he proce'' of defining and 'ubdi4iding a large homogenou' mar7et into clearly identifiable 'egment' ha4ing 'imilar need'& want'& or demand characteri'tic'. It' objecti4e i' to de'ign a mar7eting mi9 that preci'ely matche' the e9pectation' of cu 'tomer' in the targeted 'egment. ;ew companie' are big enough to 'upply the need' of an entire mar7etF mo't mu't brea7down the total demand into 'egment' and choo'e tho'e that the company i' be't equipped to handle. 0he four ba'ic mar7et 'egmentation('trategie' are ba'ed on
GEOGRAPHIC SEGMENTATION -
•
#A03RS 02 0I3R & 0I3R ! AND 0I3R / #I0I3S
DEMOGRAPHIC SEGMENTATION -
• •
5C of online u'er' between the age group of 5(/- year'. ;lip7art target' mainly the youth of the country&
BEHAVIOURAL SEGMENTATION –
•
8eb friendly people.
PSYCHOGRAPHIC SEGMENTATION –
•
;lip7art concentrate' on more $'ychographic& which help' in deciding where to di'play ad' online
18
•
0hey target online 'hopper' and people who dont online 'hop
MARKET POSITIONING
An effort to influence con'umer perception of a brand or product relati4e to the perception of competing brand' or product'. It' objecti4e i' to occupy a clear& unique& and ad4antageou' po'ition in the con'umerJ' mind.
Point! o parit68 •
3a'y locating of product'
•
#ompetiti4e price'.
•
No ha''le' of going to 'hop' per'onally and 'hop for product'
•
A4ailability of 4ariou' product' on one platform
•
Di'count on purcha'e'.
•
,ome deli4ery
•
*ifting 'er4ice'
•
#a'h on deli4ery
•
A4ailability of liquor
•
;lipift'
•
Academic related boo7'
Point! o &ierence8 •
;lip7art member'hip card' for premium cu'tomer' 19
•
ernacular language
•
Better u'er interface(one drag approach MARKETING STRATEGIES
8ord of mouth
bac7 for more= *ood u'e of S32 G8e D2N20 'ell old boo7' or u'ed boo7'. All the boo7' li'ted at ;lip7art.com are new boo7'. 0he boo7' li'ted at ;lip7art.com are N20 a4ailable for free download in eboo7 or $D; formatH 0hu' when you 'earch free eboo7' or pdf boo7' old or u'ed boo7' flip7art will be
di'played. *ood u'e of S3" Ad' at proper place' and u'e pay per clic7 to pay for ad' ery ea'y web interface $ayment con4enience #a'hMcard on deli4ery % there by encouraging 'tudent' and people with no creditMdebit card to purcha'e in flip7art& with mobile internet penetration there i' chance' of capturing
rural mar7et <6C re4enue by #2D= 3"I %by targeting price 'en'iti4e cu'tomer' 8allet % cu'tomer can recharge money online and purcha'e then and when needed tho'e entering detail' alway' i' rectified& target hea4y purcha'e and lu9ury cu'tomer #u'tomer con4er'ion rate i' 'o high more than C $er'onali?ation of the u'er page $roduct recommendation with your pre4iou' purcha'e'
20
Pro$#ct8 •
Aim' mo't 'egment' e9cept automobile' and grocerie'.
•
8eb'ite i' great& ea'y to u'e& ea'y to brow'e through theproduct'& add product' to wi'hli't or
to
a
cart&
get
productre4iew'
and
opinion'&
pre(order
product'&
ma7e
con4enientpayment' u'ing different method' and better Search 3ngine2ptimi?ation.
•
Puality le4el of the product' i' ab'olutely fine 3.g.& If we ta7e thequality of boo7' a4ailable in #ro''word and +andmar7 i' 'amea' the quality of boo7' ordered by ;lip7art.com.
•
$roduct' are pac7ed in 'uch a way that they are 0amper proof&weather proof and brea7age proof.
•
$roduct line on ;lip7art.com ha4e warrantie' a' promi'ed by thebrand of the product if applicable. 3.g.& Bajaj "Q ! ! 8att'Iron with ! Lear' Bajaj India 8arranty and e9tra paid warranty forthe particular brand i' a4ailable if applicable.
21
•
/(day replacement guarantee for faulty product'. <ideo for the 'ame=. $roduct line i' e9ten'i4e one a' di'cu''ed earlier. Deri4e' around 5C of it' re4enue
•
from 'elling boo7' online. ;lip7art a' a brand ha' already differentiated it'elf a' a pioneer in boo7 retailer&
•
tru'tworthy in term' of 'wift 'er4ice' and 'ecure payment'& quality(oriented product' with lower price offering' than retail mar7et=& inno4ati4e product line& cu'tomer delightful 'er4ice which ha' helped them to form it' own di'tincti4e image better than few unheard competitor' 'uch a' 0radu'.in and Indiapla?a.com.
•
Some unique product feature' of ;lip7art.com 'uch a' 8i'hli't
•
3(gift 4oucher
•
;lip7art launched a
•
new 3lectronic 8allet feature that allow' 'hopper' to purcha'e credit to their ;lip7art account u'ing creditor debit card'& and can 'ub'equently be utili?ed to ma7e purcha'e' on the 'ite& a' and when required.
22
•
Affiliate
Price /
23
•
$rice of the product ta7ing account of 4ariou' e9pen'e' 'uch a' Supplier e9pen'e'& 0ran'portation e9pen'e'& $ac7aging e9pen'e'& Shipping e9pen'e'& #ourier e9pen'e'& in4entory maintenance e9pen'e& office and 'tationery e9pen'e'& 'ale' and ad4erti'ement e9pen'e'& ta9e'& depreciation& di'count allowance' and many more e9pen'e'.
•
Roughly about 5(C profit per boo7 order' which indicate' that generation of re4enue i' on 4olume ba'i'.
•
Differentiated them'el4e' by gi4ing be't 'election'& be't 'er4ice' at lowe't be't po''ible price'. <ideo for the 'ame=
•
Di'count' up to /5C acro'' all categorie'.
•
)pper edge in competiti4e pricing.
Place /
24
•
#hannel type: 8ord' of mouth
•
8hen an order i' placed they either 'er4e the order from their in4entory or procure the boo7 on demand from 4ariou' 'upplier' and then deli4er the cu'tomer.
•
A' on date more than >C order' of ;lip7art are handled 4ia warehou'e' which help in quic7 and efficient 'er4ice.
•
8e deli4er order' in day in 0ier(I citie' and !(/ day' in 0ier II citie' and /(5 day' 0ier III citie'
•
Shipping and #ourier would act a' intermediarie' in thi' proce''.
•
Deli4ery 'er4ice' through e(7art and po'tal 'er4ice'
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0ie up' with local 4endor' and courier firm'
•
#ompany owned warehou'e in major citie' near airport
•
0rying to achie4e minimum return'
•
If the courier cant deli4ery to the location the product i' 'hipped through go4ernment po't
Warehouses are located in the following cities, often near airports
Bangalore hennai !elhi "#dera$ad %u&$ai 'oida (une 25
)ol*ata
Promotion! =
•
+&plo#ees of diisions li*e We$site, Business (lanning and -nal#tics, +.(, Business !eelop&ent, (roduct %anage&entand %ar*eting,
26
/uppl#hain
%anage&ent
and
usto&er/upport
are
generating
reenue for it •
/election riteria at lip*artWhile #ears of eperience arealwa#s $enecial for a candidate, lip*arts focus is to hire thosewho are a$le to consistentl# raise the $ar and introduce a ariet#of innoation to &oe this organiation forward -s lip*art grows, we feel it is a$solutel# necessar# that our e&plo#ees arealso a$le to grow professionall# with the organiation
•
-deuate raining as per their roles and responsi$ilities is gien to the& accordingl# and incenties
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elephone /ales force is onl# 2: of the total e&plo#ees focusing to reduce the unsold;goods not &uch in de&and
• •
%acancellation and returns
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"aing een tie up with /*#pe for the sa&e on the we$site for user delight
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?niue tool of /ales (ro&otion is -@liate on their we$site
•
(u$licit# is $# words of &outh pu$licit# generating trust and accounta$ilit# to users
•
-s
internet;we$
strateg#
used
Aoogle
-dwords,
$logs,
social
networ*ing sites such as twitter, face$oo*, used Aoogle adwords, e&ail ca&paigns
27
•
-dertising focused on rst Words of &outh fro& 200710 as the adertise&ent cost was not aorda$le
•
ocused on (rint and C fro& 2011 onwards
•
Daunched their rst ca&paign in tc on 05;05;2011 with the concept of Arann#, %ouse, %agic (resenting the oncept of Aetting Boo*s !eliered at !oorsteps at
•
Daunched their second ca&paign E'o *idding 'o worriesF that we are serious a$out our pro&ises we &a*e and eperience shopping safel#, delightfull# and with ease
Packaging8 •
Different pac7aging for different product to en'ure 'afe deli4ery
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;lip7art the name goe' with the online cart
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De'ign and pac7aging i' common 'o cu'tomer' can relate it to the company
Po!itioning8 •
•
•
#u'tomer' feel ;lip7art i' cheap& on time deli4ery& replacementF the online myth i' gradually eradicated #ompetitor' 'ee ;lip7art a' the mar7et leader& with the acqui'ition of let'buy.com *eneral public want to try it once for it' creati4e 0# i' ma7ing people curiou' to e9perience flip7art.
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People8 •
Ser4ice people& Sale' #ler7'& Deli4ery dri4er'& "anager'& #omplaint' department& Accounting& 8arranty people& 0echnical people& all wor7 for the cu'tomer ea'e& cu'tomer 'ati'faction and cu'tomer delight.
C%ALLENGES
0hough the e(commerce 'ector i' growing e9ponentially in India& it face' 'e4eral challenge' li7e cu'tomer mind'et& high ca'h on deli4ery <#oD= ba'ed order'& reachability& poor courier 'er4ice' and other policy(related i''ue'. %ig" competition8 0here are 'e4eral player' doing the 'ame bu'ine'' in almo't the 'ame way.
8ith inten'e competition the profitability i' decrea'ing due to aggre''i4e pricing 'trategie'& hea4y di'count' and offer'& free deli4ery& high commi''ion' to affiliate' and 4endor' during 'ale period to name a few. 2nline retailer' lo't around billion becau'e of hea4y di'count' to attract cu'tomer'. $oor logi'tic 'upply chain': 3(commerce companie' li4e on the reach and the ability to 'toc7 more item' than phy'ical 'tore' a' the'e are their bigge't differentiator'. 8ith thi' benefit al'o come' the challenge of robu't 'upply chain' and logi'tic' networ7'& which are not comparable and de4eloped to global 'tandard' in India. 0he courier companie' do not ha4e nationwide deli4ery networ7' and al'o do not ha4e the '7ill' of handling commercial 4alue 29
good'. 0hey al'o do not ha4e the '7ill' for handling #oD& rechec7 return parcel'& and other comple9itie' related to digital 'ale. 0hi' i' forcing 'e4eral e(tailer' to e'tabli'h their own deli4ery networ7 acro'' the country and might ha4e to engage with multiple 'hipping method' u'ing ;ed39 or D,+ for the la't mile deli4ery. Pa6ment!8 3(commerce companie' ha4e to offer a wide 4ariety of payment option' including
#oD& credit and debit card& internet ban7ing& among other'. 6(C of the payment' are made u'ing the #oD option in India a' cu'tomer' fear to 'hare information online and do not tru't the web'ite for 'ecure payment'. "oreo4er& the return percentage of order' in #oD i' much higher compared to online payment'. 0o counter the'e fear'& e(tailer' ha4e 'tarted to pro4ide facility of paying with #ard on Deli4ery. ;or e9ample& Ama?on' deli4ery per'on bring' point(of('ale de4ice to accept payment at cu'tomer premi'e.
C*'ER SEC(RIT* C%ALLENGES
0he rapid e4olution of online and mobile channel' ha' car4ed out new mar7et' and brought huge opportunitie' for emergent and e'tabli'hed organi'ation' ali7e. ,owe4er& unfortunately the pa't decade ha' al'o witne''ed 'ignificant di'ruption to ecommerce payment proce''e' and 'y'tem'. 0he interconnected& anonymou' and in'tantaneou' nature of the'e channel' ha' ine4itably led to the de4elopment of maliciou' threat' targeting ecommerce and retail 'er4ice' firm'& their people and their cu'tomer'. 0he'e e(crime and digital fraud threat' continue to e4ol4e rapidly& with attac7er' utili?ing increa'ingly 'ophi'ticated technique' to target 4ulnerabilitie' in people& proce''e' and technologie'. 0he e(crime threat'& if 'ucce''fully reali'ed& can undermine e''ential digital 'er4ice'& cau'e 'ignificant damage to brand reputation'& and re'ult in con'iderable financial and operational pain for organi'ation' and their cu'tomer'.
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8orldwide& regulator' are al'o turning their attention to the'e threat'& with enhanced 'crutiny of organi'ational re'ilience and the introduction of 'tringent compliance requirement'. 0he challenge that ecommerce 'er4ice' firm' are facing i' to deli4er richer& integrated 'er4ice'& through multiple remote and digital channel'& under 'ignificant co't re'traint& and in the face of 'ophi'ticated e(crime threat'. Recent cyber(attac7' highlight the urgency for retail organi?ation' to contend with e4er increa'ing ri'7' to cu'tomer protection& continuity& fiduciary re'pon'ibility& and operation'. In order to achie4e the 'ecurity objecti4e'& it i' nece''ary to recogni'e that the 'ecurity of the 'er4ice' and the protection of the cu'tomer' data are e''ential. 0o thi' end& and 'pecifically to 'upport the current 'ecurity equation& it i' nece''ary to ha4e an enterpri'e wide target cu'tomer 'ecurity model. 0hi' 'hould be de'igned to deli4er enhancement' to both cu'tomer(facing and bac7 office 'ecurity capabilitie'& and in particular to impro4e e9i'ting 'ecurity defence' for remote online& telephone and mobile ban7ing channel'.
E)OL)ING &EGREE OF T%REATS
0he threat land'cape i' e4er e4ol4ing and increa'ingly challenging. #u'tomer data with retailer' and e(commerce firm' ha' been increa'ing at a rapid pace. A' per the incremental 'er4ice pro4i'ioning in e(commerce& more data will be generated in the ne9t two year' than wa' generated e4er before. Acce'' to all thi' data ha' made the retail indu'try one of the primary target' for cyber(attac7'. Some of the 7ey threat' today' organi?ation' are 4ulnerable to include: •
)'er account ta7eo4er 4ia robotic attac7'& pa''word gue''ing& ,0"+ injection and "an( in the("iddle or "an(in(the(Brow'er. Account pee7ing i' a 4ery common beha4ior by fraud'ter' a' it allow' them to 4alidate the login credential'& identify higher 4alue account' and under'tand the control' which mu't be defeated to complete future unauthori?ed tran'action'.
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•
Bu'ine'' +ogic Abu'e or the u'e of portal' functionality for maliciou' or e9ploitati4e purpo'e'
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attac7' and 'ite 'craping by re'eller' or coupon aggregator 'ite'. Di'tributed(Denial(of(Ser4ice or DD2S attac7 on the application layer where a deluge of page reque't' coordinated by a bad actor o4erwhelm' the 'er4er and bring' the 'ite down.
•
Site or Architecture $robing to gather a' much information about 'ite 'tructure and
•
'ecurity 4ulnerabilitie' a' po''ible to prepare for an attac7 on tha t 'ite. Site In4entory Scraping or data theft perpetrated by copying large amount' of data from a web'ite& typically 4ia automated 'cript'.
A' the'e threat' e4ol4e& it i' clear that traditional technique' wont be able to pre4ent all threat'. Additional layered 'ecurity and 'peciali?ed 4i'ibility into the'e attac7' i' needed.
ISS(ES #yber Security i''ue' lead to brand degradation and change in con'umer beha4ior. Attac7' are e9ploiting wea7ne''e' in traditional control'& 'ome 4ery de'tructi4e. 0raditional control' around $oint of Sale and other I0 'y'tem' are nece''ary but not adequate % greater empha'i' mu't be placed on pre4entati4e control'& rapid detection& and rapid re'pon'e. Retail inno4ation' that dri4e growth
lac7 of tran'parency& the majority of cu'tomer' i' not aware of any cyber 'ecurity breache' and remain' 4ulnerable to cyber attac7er'. !. 3(commerce firm' and retailer' face heat to increa'e effort' to en'ure greater cyber 'ecurity. In the wa7e of recent data('ecurity breache' at large retail corporation'& retailer' ha4e been pu'hed to 'pend more to en'ure tighter cu'tomer data 'ecurity. 8hile the traditional retailer' ha4e been in4e'ting million' of dollar' to compete with online retailer' the cyber('ecurity threat' ha4e multiplied their operational e9penditure'. /. 0hird(party cyber ri'7 A' firm' loo7 to e9ploit the competiti4e edge they gain from the data they capture about their cu'tomer'& they are increa'ingly le4eraging the e9perti'e of third partie' 'uch a' analytic' 'peciali't' and 'ocial mar7eter'. #ouple thi' with increa'ingly lengthy and comple9 'upply chain'& retail organi?ation' are increa'ingly becoming enme'hed in 4ery comple9& interconnected 4alue chain' where 'en'iti4e data i' 'hared and dependencie' are introduced between bu'ine'' critical 'y'tem'. ;irm' are rapidly wa7ing up to the reali?ation that they often ha4e 4ery little 4i'ibility in the'e area'& and that they do not ha4e a good under'tanding of where their cu'tomer' data i' tra4elling& and what their ri'7' are. 8e 'hould focu' on to map the'e interconnection'& de4elop robu't ri'7 management framewor7'& and pro4ide firm' with a''urance that they ha4e under'tood and acti4ely managed the ri'7 of each partner relation'hip. -. Inadequate joint effort' by ban7' and retailer' to counter cyber 'ecurity threat' 8hile collaborated effort' are e9pected to en'ure tighter cyber('ecurity& ban7' and retailer' differ in term' of re'pon'ibility 'haring. Ban7' want retailer' to bear more of the co't' of replacing card' after breache' occur wherea' retailer' 'ay ban7' ha4e been 'low to adopt new& more 'ecure debit card technology.
R3#2""3NDA0I2NS 0he rapid pace at which technology i' changing ha' pro4ided large opportunitie' for organi?ation' to de4elop new bu'ine'' model'& 'er4ice'& and product'. 8hile the digital re4olution ha' tran'formed the way we do bu'ine''& it ha' al'o created comple9 and 'ophi'ticated 33
'ecurity i''ue'. A''et' and Information that were once protected within the organi?ation are now acce''ible onlineF cu'tomer channel' are 4ulnerable to di'ruptionF criminal' ha4e new opportunitie' for theft and fraud. 8ith organi?ation' growing organically and inorganically& comple9ity of managing bu'ine''e' 'ecurity operation' are al'o becoming comple9. So what i' needed to addre'' the'e targeted attac7' ,ow can you gain 4i'ibility into the'e attac7' and how can you 'top them from cau'ing further damage 2rgani?ation' today thu' face a continuou'ly e4ol4ing threat land'cape where the 'peed and inten'ity of attac7 i' incrementing and re'pon'e time i' 'ub'iding. A' a re'ult& organi?ation' need to ha4e rapid detection and re'pon'e capabilitie' that allow for the 'ynthe'i' of e9ternal and internal threat intelligence in a timely manner. 0hi' G'ituational awarene''H i' a required component of an organi?ation' o4erall 'ecurity po'ture and critical to maintaining the confidentiality& integrity& and a4ailability of it' information a''et'. Some of the 7ey recommendation' for an organi?ation to 'tep toward' an effecti4e 'ecurity equation include: •
Set ri'7 appetite and dri4e focu' on what matter'. 3'tabli'h purpo'e and direction. #learly articulate your cyber ri'7 appetite and 'trategy. Support it by requi'ite action
•
through funding and re'ourcing. Define the right balance between threat(centric 4'. compliance(centric program'. ;ully
•
integrate cyber ri'7 management into I0 di'cipline'. Brea7 down 'ilo'. #yber ri'7 i' an enterpri'e(le4el i''ue. +ac7 of information('haring i' a
•
top inhibitor for effecti4e ri'7 management. Be creati4e about cyber ri'7 awarene''. Lour wea7e't lin7 i' the human factor. 0here i' not enough talent to do e4erything in(hou'e& 'o ta7e a 'trategic approach to 'ourcing
•
deci'ion'. Incenti4i?e openne'' and collaboration. Build 'trong relation'hip' with partner'& law
•
enforcement& regulator'& and 4endor'. $repare for cyber(attac7' by conducting war game'& penetration te't'& and e9erci'ing the
•
cyber incident re'pon'e plan'. ,a4e a threat intelligence mechani'm in place % ;ocu' on re'tructuring the di4er'e un'tructured 'ecurity data and information gathered from all the 'ecurity entitie' and de4ice'
34
which could be u'ed to ma7e informed deci'ion' in order to mitigate dynamic threat' a' pet the en4ironment.
TA3ATION C%ALLENGES
3(commerce i' the Tnew normal with good' and 'er4ice' ha4ing mo4ed from a phy'ical platform to a digital one i.e. good' and 'er4ice' being tran'acted online or being them'el4e' digital. 0he current ta9 law' could po'e 'ignificant challenge' in e(commerce& e'pecially international tran'action'& and thi' call' for a new ta9 'y'tem which 'pecifically recogni?e' and deal' with e(commerce. 0he Indian Re4enue& ha4ing been aware of the unique challenge' po'ed by e(commerce& con'tituted a ,igh $owered #ommittee
*enerally& income of a company i' ta9ed in the country of incorporation. ,owe4er& a company with global operation' i' al'o ta9ed in countrie' in which it carrie' on bu'ine''
0hi' challenge ha' al'o been recogni?ed by the ,$# in it' report. 2ne of the mo't challenging 'upply type' identified by 23#D i' growth of cro''(border digital 'upplie' to end cu'tomer'& where it i' difficult for countrie' to ta9 'upplie' made by non( re'ident'. 0he option for addre''ing the challenge include' requiring 4endor' to regi'ter and account for ta9e' in the country of importation. 0he non(re'ident 'upplier' of B!# 'upplie' can regi'ter and account for ta9e' in the cu'tomer juri'diction a' implemented by the 3uropean )nion in !5. Another unique challenge ari'e' in ca'e of e(tailer'. 8hile maintaining facilitie' in a 'ource country and ma7ing deli4erie' therefrom may not create a $3 under the e9i'ting 23#D model ta9 treaty& the 'ame may lead to non(ta9ation in an e(commerce 'cenario& where maintaining a warehou'e in the mar7et country i' a critical acti4ity for an e(tailer which conduct' all other acti4itie' through automated proce''e'. Al'o& the e(commerce 'cenario ma7e' it ea'ier to fragment critical function' of a bu'ine'' and locate the 'ame in different countrie' owing to increa'ed communication. ;or e9ample& the intellectual property right' may be 'ituated in a low( 36
ta9 country and profit' in 'ource countrie' could be reduced due to royalty payment' for 'uch right'. Such practice' may re'ult in a4oidance of $3 or low attribution of profit' to the $3 from a tran'fer pricing per'pecti4e. 0he retailer' would pay appropriate ta9e' in B!B or B!# online 'ale tran'action'. 8here the online portal pro4ide' platform for #!# tran'action& who ha' the onu' to di'charge ta9 Already& 'ome State' are treating e(tailer' a' Tagent' of the 'eller' and therefore directing them to obtain A0 regi'tration and di'charge ta9e' on behalf of the 'eller'. 8hen the good' are 'hipped by the retailer and deli4ered by the e(tailer'& there ari'e' a challenge when the de'tination State demand' A0 treating 'uch 'ale a' a local 'ale in their State. Aggregator' were under the 'canner of 'er4ice ta9 authoritie' for rendering cab hiring 'er4ice' to cu'tomer'. 0he )nion budget !5(6 ha' brought in clarity on thi' a'pect. Aggregator or any of hi' repre'entati4e office located in India i' being made liable to Ser4ice 0a9 if the 'er4ice i' pro4ided u'ing the brand name of the aggregator in any manner.
S2OT ANAL*SIS OF FLIPKART
Strengt"8
0op Indian ecommerce portal Di4er'ified into electronic good' 0wo # in4e'tment to build it' own deli4ery 'y'tem thereby reduce deli4ery time #a'h on deli4ery which i' ma7ing 6C of it' income 2eakne!!8
#oordination with 'upplier' and courier wa' tough
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$rice bia'ing to maintain the margin' < e.g. +ow price for the be't 'eller boo7 and more
price for the lea't wanted= !-M cu'tomer care& thu' e4en mid night i' to deli4ered within !- hour' Opport#nitie!8
Already wor7ing toward' cu'tomer delight will obtain cu'tomer loyalty gradually Supplier databa'e interface with flip7art web'ite for EI0 procurement "obile internet u'age i' increa'ing there by chance' of increa'e in 'ale' through mobile 'hopping. T"reat!8
Small player' and emerging competitor "ajor player' li7e Ama?on In capabilitie' to manage certain co't' li7e deli4ery co't& ban7 charge'
CONCL(SION
A credible ri4al can do wonder' to an enterpri'e and ;lip7art i' no different. 0he entry of Ama?on in India ha' enabled ;lip7art de4elop a lot of in(hou'e inno4ation and organically de4eloped be't(practice' ( that ha4e now become the indu'try 'tandard. ;lip7art began operation' on the con'ignment modelF good' were procured from 'upplier' on demand& ba'ed on the order' recei4ed through the web'ite. +ater& the boo7'(to(electronic' e('hop adopted the warehou'e model. 0he company had it' own warehou'e'& and maintained it' own in4entory. ,owe4er in Euly !/& ;lip7art launched it' model of mar7etplace ju't one month after Ama?on launched it' mar7etplace in India. It introduced payment' brand $ayUippy for online merchant' and cu'tomer' 'ee7ing fa't& ha''le( free and 'afe payment option'. Some per cent of it' 'hipment' are done by it' own logi'tic' company and about half of deli4erie' are on a ca'h(on(deli4ery ba'i'. ;lip7art ha' recently introduced the ne9t day guarantee deli4ery 'er4ice and 'hopping from it' own mobile application. *i4en the critical ma'' of tran'action' ;lip7art control' ( about & 38
a day ( the company i' betting that it ha' the 4olume' to lay the foundation of what will be a profitable bu'ine''. +a't but not the lea'tF ;lip7art ha' 4ery clearly prioriti?ed cu'tomer delight a' it' chief a4enue for cu'tomer acqui'ition and retention. 0hi' cau'e' them to build a lot of 'lac7 into their e9i'ting 'y'tem' cau'ing higher co't' at 'e4eral point' in the 'upply chain. ,ow they addre'' thi' challenge i' what will determine their future 'ucce''.
T%E 2A* A%EA&
0he digital di'ruption' are 4ery much 4i'ible in the retail indu'try where online bu'ine''e' are embracing technology and inno4ating at a pace not 'een in the pa't and the offline retailer' are finding it difficult to compete with thi' change. 8ith the increa'ing competition in the e( commerce mar7et& player' who are able to adapt and inno4ate in the face of the'e change' will be in better po'ition for 'ucce''. Although there are 'e4eral trend' that are 'haping the mar7et today& 'ome of the 7ey trend' that the companie' in digital commerce 'hould focu' on in the future are di'cu''ed below:
E3PERIENCE MATTERS
#u'tomer i' 7ing for the bric7(and(mortar 'tore' and the digital age e(retailer'. Shopping online i' getting ea'ier and the cu'tomer e9pectation' are changing quic7ly. 0he e(tailer' need to differentiate them'el4e' to not only attract cu'tomer' but al'o to build tru't and loyalty. 0he big
39
retailer' pro4ide product replacement warranty& after 'ale' 'er4ice& free deli4ery& etc.& which ha4e become norm' in an online bu'ine''. #u'tomer 'till want' con'i'tent and 'eamle'' e9perience acro'' all touch point': online& in('tore& web'ite& mobile app& 'ocial media& cu'tomer 'er4ice& or deli4ery man. 0hey e9pect to order& pic7 up& recei4e& 'hip& return from anywhere& anytime and from any de4ice. 0he e(tailer' need to analy?e the lifecycle of the cu'tomer relation'hip and enhance the offering' at each 'tage. ,ence& e(tailer' need to impro4e upon the cu'tomer e9perience metric' for attracting and retaining cu'tomer' to ma9imi?e their lifetime 4alue. 0he web'ite and mobile application of the e(tailer are the frontend for a cu'tomer where cu'tomer' can find product information and decide to ma7e purcha'e deci'ion. 0he metric' for analy'i' could be 'earch optimi?ation& per'onali?ation option'& u'er(friendline''& acce'' to information and content appeal. 0o cater to the'e e9pectation'& e(tailer' will need to modify their internal operation'& a''emble right tool' and infra'tructure& and collaborate with third(party 4endor' and all other player' in the e(commerce 4alue chain. +eading telecom operator' are wor7ing with mobile app 4endor' to impro4e the o4erall networ7 performance on 'martphone' which would help better cu'tomer e9perience in term' of networ7 'peed& performance of mobile app& battery life of 'martphone. - All the'e parameter'& although not fully in control of the e(tailer& influence the purcha'ing e9perience for cu'tomer.
MO'ILE FIRST
0here are about @/ million wirele'' 'ub'criber' in India. 0he wirele'' teleden'ity in urban area' i' in e9ce'' of - while there i' 'till huge potential in rural area' with teleden'ity of --. A 'ignificantly large percentage of thi' 'ub'criber ba'e in India will be u'ing mobile de4ice' to acce'' internet& e'timated at !/5 million u'er' a' of September !- and growing rapidly. 0hi' rapid 'pread of mobile internet& e'pecially of 'mart phone' could unloc7 a 'ignificant mar7et beyond the 0ier citie' for the online retail 'egment. )ndoubtedly& mobile retailing i' e9pected to continue to grow aggre''i4ely. In the ne9t three year'& global e(commerce 'ale' made 4ia mobile de4ice' are e9pected to top 6/> billion. -!
40
,owe4er& while 'hopper' want real(time& rele4ant& and per'onali?ed information and offer'& retailer' will need to 'urround thi' 'er4ice with 4ery 'trong pri4acy and 'ecurity. 0ru't& tran'parency& and protecting cu'tomer information will be critical in retaining loyalty a' mobile retailing become' the norm. 2nline commerce companie' 'hould enable all feature' from 'earch(to(purcha'e on mobile app'& 'uch a' facilitating product re'earch& price compari'on& 4iew rating' and re4iew'& and payment. 0he launch of wearable'& 'uch a' *oogle *la'' and Apple 8atch& open' new opportunitie' for reaching out to cu'tomer'. 3(tailer' would 7eep an eye on de4elopment' in thi' arena& although it might only be an urban phenomenon at the moment.
GRO2ING PO2ER OF E=MARKETPLACES
0he e("ar7etplace' are growing 'ignificantly with the increa'e in the Internet penetration and Smartphone u'age. Internet enabled mobile' are ma7ing 'hopping a unique e9perience for buyer'. e("ar7etplace' pro4ide a technology platform for 'eller' to participate and a tru'ted en4ironment to 'cale up rapidly& increa'e profit and i' highly 4alued by the cu'tomer'. 0he non( in4entory led B!# model al'o allow' the e(commerce player' to pro4ide attracti4e di'count' and offer' which are difficult for in4entory led bric7(and(mortar 'hop' a' well a' for pure e(0ailer'. According to Deloitte' 'tudy G*lobal $ower' of Retailing !5&H online mar7etplace' rather than pure in4entory(led companie' tend to 'er4e a' the primary e(commerce model in A'ia. 0he high co't' of holding in4entory& poor logi'tic' and 'upply chain challenge' in India are 'hifting the in4entory(led companie' and new entrant' to adopt mar7etplace model. Al'o& e("ar7etplace' wor7 well in India due to high fragmentation on 'upply 'ide. 0he ri'e of online 'ale' in the de4eloping mar7et' i' encouraging retailer' to go online for global e9pan'ion. 0he e(retailer' are becoming e9clu'i4e partner' for different brand'. e.g. 0he #hine'e 'martphone manufacturer& Qiaomi& entered Indian mar7et through ;lip7art e("ar7etplace that
41
helped to reach a large cu'tomer ba'e in a 'hort time. -/ Similarly& 2ne$lu' teamed up with Ama?on India for e9clu'i4e partner'hip.
'I'LIOGRAP%*
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