MARKETING STRATEGY OF FLIPKART
Subject Area- flipkart.com success story- E commerce and beyond
Although India is second largest country in the world, it expected retail market is around US$ 450 billion which is way less than US$ 469.3 bn turnover clocked by largest retailer in world “Wal-Mart Inc.” If we take another comparison, for the calendar year 2012, Amazon.com, the largest retail online store in the world, posted a turnover of US$ 61.09 billion registering a growth of 27% over the previous year 2011. Now if compare this with the Indian E commerce market figure with US$ 14 billion in year 2012 of this US$ 14 billion, 75% of this was related to travel(Air ticket, railway tickets, hotel booking and online mobile recharges ) . E commerce, as defined by Oxford dictionary, is commercial transactions conducted through the internet. The concept of e-commerce is yet to attain a solid foothold in India, as compared to brick-and-mortar retailing as we can see through the data above that e commerce trade is a fraction of overall retail segment in India. This is largely due to a number of factors, including the country’s low level of Internet penetration, lack of computer education and the fact that Indians still remain sceptical about sharing their financial details online. This very fact of low level of e commerce trade is an opportunity in itself. Over the years many companies tried their hands in Indian e commerce industry but with little success.
But it is not like that there is any company which we can cite as an example, which has got success in the fiercely competitive retail segment in India. And the company that has successfully broken this barrier and achieved phenomenal success in recent years is Flipkart.
Study Level/ Applicability limits
Success story of flipkart.com will be studies in this management case study. Headquartered in the country’s IT capital Bengaluru, flipkart.com was established in 2007 by Mr. Sachin Bansal and Mr. Binny Bansal, both IIT-Delhi graduates and
Although India is second largest country in the world, it expected retail market is around US$ 450 billion which is way less than US$ 469.3 bn turnover clocked by largest retailer in world “Wal-Mart Inc.” If we take another comparison, for the calendar year 2012, Amazon.com, the largest retail online store in the world, posted a turnover of US$ 61.09 billion registering a growth of 27% over the previous year 2011. Now if compare this with the Indian E commerce market figure with US$ 14 billion in year 2012 of this US$ 14 billion, 75% of this was related to travel(Air ticket, railway tickets, hotel booking and online mobile recharges ) . E commerce, as defined by Oxford dictionary, is commercial transactions conducted through the internet. The concept of e-commerce is yet to attain a solid foothold in India, as compared to brick-and-mortar retailing as we can see through the data above that e commerce trade is a fraction of overall retail segment in India. This is largely due to a number of factors, including the country’s low level of Internet penetration, lack of computer education and the fact that Indians still remain sceptical about sharing their financial details online. This very fact of low level of e commerce trade is an opportunity in itself. Over the years many companies tried their hands in Indian e commerce industry but with little success.
But it is not like that there is any company which we can cite as an example, which has got success in the fiercely competitive retail segment in India. And the company that has successfully broken this barrier and achieved phenomenal success in recent years is Flipkart.
Study Level/ Applicability limits
Success story of flipkart.com will be studies in this management case study. Headquartered in the country’s IT capital Bengaluru, flipkart.com was established in 2007 by Mr. Sachin Bansal and Mr. Binny Bansal, both IIT-Delhi graduates and