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    Flipkart

    Uploaded by

    MOHD Salman

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    © All Rights Reserved
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    Flipkart

    Uploaded by

    MOHD Salman
    14 views10 pages

    Original Title

    4. Flipkart

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    Copyright:

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    Download as pptx, pdf, or txt
    14 views10 pages

    Flipkart

    Uploaded by

    MOHD Salman

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 10

    Flipkart (A):

    Transitioing to
    marketplace model
    By
    Dr. Ayan Paul
    Visiting Faculty, IIM Jammu
    Decision of Flipkart

     Platform of few sellers to market place


    for many sellers
     Moving from Inventory model
     Amazon
     Challenge with market place
     Balancing market growth and service
    experience
    Flipkart in India
     Started as book-seller in 2007
     Introduced COD
     Diversified to music, games and movies in 2010
     Own logistics distribution network
     Hub-and-spoke model built around fulfillment
    centre
     Offered warranties
     30-day replacement
     Brand building
     Sponsoring IPL
     Acquired fashion site Myntra
     Leading e-commerce with 43% market share
     20 million product in 70 categories
    Effect of competition

    Challenge Response
     Free shipping  Increase seller base from
    30,000 to 1,00,000
     Reduced price  Transition to pure paltform
    company like Airbnb
     In marketplace, sellers would
    be responsible for inventory
     Competition between sellers
    to make the price down
     Logistics business eKart as
    separate division
    Marketplace Model
     Product strategy
     Goal is to provide infinite product selection
     Regular discount on fast moving categories (50%-
    70%)
     Launching new brand
     Xiaomi
     Heavy discount and free shipping led to negative
    margin
     Pure market place for niche categories (15%-25%)
     Seller paid Flipkart to advertise
     High margin
     Unbranded product (15%-25%)
     Flipkart Advantage: Kept inventory and transport for
    a fee
     Medium margin
    Marketplace Model

     Attracting Sellers
     Registered sellers having capability are
    allowed in the platform
     Sellers are assisted with data analytics
     Building customer base
     45 million customer in 100 cities in 2015
    Organization structure

     Commerce platform
     Transaction, offline order fulfillment
     Supply chain
     eKart
     New initiative
     Advertisement (search ads & display ads)
     Digital Marketing and branding consultancy to
    the sellers
     Investment in sellers
     Fashion
     Myntra & In-house fashion
    Flipkart: Key Differentiator

     Convenience of customers
     Access to niche products
     High Market share
     Focus on Business growth
     Challenge
     Maintain service quality
    Analysis

     SWOT
     Porter’s five forces
    Recommendations

     Way to profitability
     Maintaining service quality
     Managing sellers

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