Flipkart Online Retailing surveyA Dissertation Submitted in partial fulfillment of the Requirements for the award of the degree Of Bachelors of Business Administration Submitted By : Rajat Sharma (120901009) Under the guidance of: Dr. Saurabh Sharma (Associate Professor, MUJ) School of Business & Commerce [1] April, 2015 Candidate’s Declaration I hereby declare that work presented in Dissertation entitled “ Flipkart Online Retailing Survey” in partial fulfilment of the requirements for the award of the Degree of Bachelor of Business Administration submitted to School of Business & Commerce, Manipal University Jaipur is authentic record of my own work carried out during the period from January 2015 to April 2015 under the supervision of Dr. Saurabh Sharma, Assistant Professor Department of Business and commerce, Manipal University Jaipur The matter presented in dissertation has not been submitted by me for the award of any other degree of this or any other Institute. Date: 15 April 2015 Place: Jaipur Rajat Kumar Sharma 120901009 [2] Certificate from Faculty guide This is to certify that the project work entitled “Flipkart Online Retailing Survey’ is a bonafide work carried out by Rajat Sharma, a candidate of the BBA (120901009) Manipal University Jaipur under my guidance and direction. Date: 15 April 2015 Dr. Saurabh Sharma [3] is rapidly embracing online shopping. Doing this Report helped me to enhance our knowledge regarding the work in to the attitude of consumer towards celebrity advertisement Vs non-celebrity we doing undergo many experiences related with our topic concepts. [4] . Through this report we come to know about importance of team work and role of devotion towards the work. E-commerce in recent times has been growing rapidly over India and across the world.Preface As a part of the BBA Curriculum and in order to gain practical Knowledge in the field of management. including India. but also countries like Sri Lanka and Pakistan. we are required to make a report on Flipkart Online retailing survey. Middle class in many of the developing countries. China and Australia in terms of Internet density. However. India falls behind not only US. Department of Management for his kind cooperation and guidance which enabled me to complete this project. School of Management.Acknowledgement I would like to express my special thanks of gratitude to everyone who gave me the golden opportunity to do this wonderful report on the topic of Flipkart Online retailing survey which also helped me in doing a lot of research and I came to know about so many new things. Saurabh Sharma. At last again i would like to thanks my College Staff and everyone who helped me directly or indirectly to successfully completion of my training and this report. who provided me an opportunity to do this project. Manipal University. I place on record my sincere gratitude and appreciation to my project guide Dr. Head of the Department. Teena Shivnani. I take this opportunity to dedicate this project to my parents who were a constant source of motivation and I express my deep gratitude for their never ending support and encouragement during this project. Associate Professor. [5] . I express my sincere thanks to Dr. InMobi.2 million as of January 2014. Snapdeal. However. cash on delivery is the most preferred payment method. and Paytm (One97). accumulating 75% of the e-retail activities. Despite being third largest user base in world. the penetration of Internet is low compared to markets like the United States. Quicker. COD may harm e-commerce business in India in the long run and there is a need to make a shift towards online payment mechanisms. Executive Summary India has an internet user base of about 243. In India. Unite Kingdom or France but is growing at a much faster rate. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and ecommerce offerings. have managed to enter the Billion-Dollar club [6] .I will get lot practical knowledge from this report which will help me in my future growth and potential. Ola Cabs . adding around 6 million new entrants every month. As of 2015 Six Indian Start up companies Flipkart. The industry consensus is that growth is at an inflection point. the e-retail segment was worth US$2. Legal framework for E-commerce in India Legal issues of e-commerce in India are generally ignored by e-commerce websites. CAGR vis-à-vis a global growth rate of 8–10%. According to Google India. Key drivers in Indian e-commerce are: Burgeoning broadband Internet subscribers. Explosive growth of Smartphone users. This may change in the near future as foreign companies and e-commerce portals would be required to register in India and comply with Indian laws E-Commerce [7] . soon to be world's second largest smart phone user base. Rising standards of living as result of fast decline in poverty rate. and recent introduction of 4G in few cities. it went up to $12.3 billion.8 billion in 2009. Electronics and Apparel are the biggest categories in terms of sales. Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers. In 2013. About 70% of India's e-commerce market is travel related. there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016.6 billion in 2013.India's e-commerce market was worth about $3. 3G genetration. Vector e-commerce. Title Page ………………………….………….… ......9-10 10.. Jabong.. Acquisitions…. 1 2. Flipkart and many more e-commerce websites are under regulatory scanner of ED of India for violating Indian laws and policies......…. Preface………………..10 [8] ..…………………8 9. Table of Contents 1. US-based transport application provider Uber Inc has also been questioned by the service tax department of India....….. online payment.. Declaration Certificate………………………………………. online pharmacies..2 4. online poker etc....… 3 5.... Acknowledgement………………………………. Introduction…………………………………..…………………. are violating laws of India.. 2015. Executive Summary……………………………………….………………4 6.…….. Table of Contents…………………………. the Kerala Commercial Taxes Department imposed a fine of INR 54 crore on Flipkart.…………………………………………….……….…. Myntra. [44] In January.websites dealing with nutraceuticals Bitcoin.….6-7 8.. Certificate…………………………………………………..……………..… . for doing illegal business in the state... Ayurvedic products. and Robemall Apparels....5 7.……. Tie-ups & launches……………. [9] ..…........ Conclusion……………………………………. Recommendations……………………………...13-14 12.……..23-30 17........…..….….……...…………….…….31 18.33 Introduction Flipkart.18 15...……...…...11.. with headquarters at Bangalore.…..……………..........….32 19.. and laptop bags..…….………….....………………....…....15 13. Future Perspective…………………………. Karnataka.….…. Flipkart received $210 million from DST Global and in July it raised $1 billion led by existing investors Tiger Global and South Africa's media group Naspers.. In May 2014. Flipkart has launched its own product range under the name "DigiFlip" with products including tablets...…….………19-22 16..……………. Questionnaire……………………. Flipkart's last fundraising round in December had pegged its valuation at $12 billion. It is registered in Singapore.. Awards & Recognition…………………………. is an E-Commerce company established in 2007 by Sachin Bansal and Binny Bansal.…...……....16-17 14. Survey Response…………. References………………………………………. USBs... Finance…………………………………...………... [10] . They had been working for Amazon. it's about redefining customer experience and breaking online shopping inertia. "I've never understood how to pay by card online." says Sneha Anand.The first product sold by them was the book Leaving Microsoft To Change The World.500-member company. "Indian consumers are much more cautious about shopping online as compared to the West. The business was formally incorporated as a company in October 2007 as Flipkart Online Services Pvt. The best I can do is use an ATM. a school teacher. bought by VVK Chandra from Andhra Pradesh.Flipkart allows payment methods such as cash on delivery. From a two-member embryonic idea to a 4. e-gift voucher and card swipe on delivery.Sachin Bansal and Binny Bansal. Also. both alumni of the Indian Institute of Technology Delhi." he adds. Much more than that. They are reluctant to divulge credit card details. the model has unbolted the lock to a whole new customer base which hasn't been exposed to the benefits of plastic money as yet or those with a default technological handicap. Flipkart now employs more than 16000 people.com previously. credit or debit card transactions. the Flipkart story is not just about stupendous success and mind-numbing numbers. net banking. I wish more websites had the cash on delivery option. The cash on delivery service has helped a lot of traditional consumers turn to online shopping. Ltd. get good prices. "Right from browsing to delivery. Though all bookstores get up to 50-60 per cent discounts from publishers. "I was waiting to lay my hands on Haruki Murakami's new book '1Q84'. Raise any issue. But Flipkart had a flat 30 per cent discount." says Madhura Vishvakarma.Saloni Nangia. even the customer service is very strong. Adds Sachin Bansal: "When we started. We feel that it's this focus on customer satisfaction and ownership of the customer experience that has worked in our favour. senior vice president (retail) at Technopak. it's efficiently resolved. attributes Flipkart's success to the "superior customer experience it offers". a Delhi University student.one of the numerous virtues of online stores enables Flipkart to pass on the savings in the form of discounts. you can track your order. You can pre-order an unreleased book. the customer experience offered by ecommerce sites was below average.much to the envy of offline stores." The superior customer service notwithstanding. Our aim was to address this. Flipkart started with books.000. and I got it in Rs 700. but now deals in 12 product categories [11] . the low overheads . Flipkart's biggest draw has probably been the huge discount it offers . But it was way too expensive at Rs 1." Nangia told IANS. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. [12] . news.000 ratings. 10.Acquisitions 2010: We-Read. a Bollywood news site that offers updates.000 filmographies.000 movies and close to 50. 2011: Chakpak. a digital content platform company.com. photos and videos. Flipkart acquired the rights to Chakpak's digital catalogue which includes 40. a social book discovery tool 2011: Mime360. that it has raised an additional $200 million from existing investors including Tiger Global.000 crore.81 . 2015: Flipkart acquires a Bangalore-based global mobile network Adi-Quity for an undisclosed amount. On 24 August 2012.com. Flipkart has later raised funding from venture capital funds Accel India (US$1 million in 2009) and Tiger Global (US$10 million in 2010 and US$20 million in June 2011). Flipkart has bought the company for an estimated US$25 million.com in an estimated 20 billion (2.000 only for making website to set up the business. Finance Initially. Naspers. about US$319 million) deal. an Indian e-retailer in electronics. Accel Partners and Iconiq Capital. Flipkart's reported sales in FY 2009–2010 and set to cross the were 40 million in FY 2008–2009. [13] 50 billion (US$0. Flipkart sells nearly 10 products per minute and is aiming at generating a revenue of billion) by 2015. Flipkart projects its sales to reach 10 billion by year 2014. Flipkart is 5 billion (US$100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online.com was closed down and all traffic to Lets-buy has been diverted to Flipkart. on 10 July 2013.2012: Letsbuy. Flipkart announced the completion of its 4th round of $150 million funding from MIH (part of Naspers Group and ICONIQ Capital. 200 million 750 million for FY 2010–2011. they had spent 400. 2014: Acquired Myntra.Letsbuy. On average. In FY 2011–2012.The company announced. On 26 May 2014. On 6 October 2014. Flipkart sold products worth INR 650Crore in 10 hours in a special one-day event . Accel Partners. It claimed to sell a whopping 5 lakh mobile handsets. 1999 Flipkart reported a loss of 281 crore for the FY 2012-13.Sofina SA and Vulcan Inc. five-lakh clothes and shoes and 25. In July 2013. but their hard-won reputation for good customer service suffered because of technical problems."The Big Billion Day". with participation from existing investor Tiger Global. Flipkart raised USD 160 million from private equity investors. and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC.000 television sets within hours of opening its discounted sale at 8 AM. Naspers and Iconiq Capital. After it received $700 million from another funding. Flipkart had a market cap of $11 billion or Rs. Flipkart became one of the companies being probed for alleged violations of FDI regulations of the Foreign Exchange Management Act. In October 2013. In early July 2014. it was reported that Flipkart had raised an additional $160 million from new investors Dragoneer Investment Group. for a likely listing in the US for 2016 On 29 July 2014. Flipkart announced that it raised $1 billion from Tiger Global Management LLC.66000 crore [14] . and angry reactions on social media from buyers disappointed with the pricing and availability of products. claiming they had created ecommerce history. it was also highly speculated that Flipkart was in negotiations to raise at least $500 million. In December 2014.On November 2012. Morgan Stanley Wealth Management . Flipkart announced that it has raised $210 million from Yuri Milner’s DST Global and its existing investors Tiger Global. Flipkart acquired the websites Mime360.com offered DRM-free MP3 downloads. T. Greenoaks Capital. in an exclusive tie up with Flipkart launched its budget smartphone Moto G n India on 5 [15] . a legal music download service in the vein of iTunes and Amazon.On 20 December 2014. Flyte.com Later.on company's board. GIC. Flyte. previously owned by Google but then sold to Lenovo. in February 2012. ICONIQ Capital and Tiger Global also participated in this latest financing round.Digital Music Store In October and November 2011.Its existing investors DST Global. the company revealed its new Flyte Digital Music Store.Baillie Gifford. Steadview Capital. Flipkart announced filing application with Singapore based companies' regulator ACRA to become a public company after raising USD 700 million for long term strategic investments in India following which its number of investors exceeded 50. But it was shut down on 17 June 2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites. Rowe Price Associates and Qatar Investment Authority . Exclusive Product tie-ups & Launches Motorola Mobility.com and Chakpak. The USD 700 million fund raised by Flipkart added new investors . 000 Redmi Note devices held on 2 December 2014 and all the devices sold out in mere 6 seconds.000 units go out of stock in 5. led to another exclusive tie up between Flipkart & Motorola Mobility.February 2014.000 units were sold within hours of launch on Flipkart. Backstage. Future Perspective Positive word-of-mouth gives Flipkart an edge on the customer side of the business. The sale was proceeded on pre-registration mode where more than 150 000 buyers booked for the 5 August 2014 sale. After the Moto G successful debut launch. 2014. which lasted just 4. just like all the earlier flash sales of Xiaomi held at Flipkart. the newest member of Moto family which is even cheaper than Moto-G on 13 May 2014. 000 units priced at Rs 5999 each were sold within seconds. In the second round of Xiaomi Redmi 1S sale held on Sept 9.The sale of high-end smartphone Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an exclusive tie-up with Flipkart. who launched their flagship Android smartphone.000 units were sold within a span of 4. the second in 5 seconds on 29 July 2014.3 seconds.In the latest Flash sale held on Sept 30. slightly longer than the first sale. Third round of Redmi 1S sale held on Sept 16. Binny's long-term outlook includes scaling up the firm's [16] . the Moto-X on 19 March 2014 After Moto G and Moto X. Flipkart invited the Moto E. the story's no different. Flipkart put more units this time. This triggered an overwhelming response from online shoppers and more than 20. The Moto G success story. 2014. The first batch was sold out within 39 minutes on 22 July 2014. Flipkart was looking for a long term tie up with Motorola Mobility.5 seconds. Their recent acquisition of Letsbuy.2 seconds. In the 4th round of sale of Redmi 1S held on Sept 23. once again 60. 2014.000 units Go out of stock in 13. 60.000 pieces in the next sale scheduled for 12 August 2014 On 2 September 2014 Flipkart held a flash sale of the budget Android smartphone the Xiaomi Redmi 1S which was launched in India in July 2014. Redmi Note in India exclusively through Flipkart. 2014 with again 40. 40.com will result in a faster expansion rate.000 units sold in fastest of all 3.4 seconds. This got sold off in less than 2 seconds Following this Xiaomi Tech decided to sell 20. The first flash sale of 50. 40.9 seconds. with the potential to balloon to $70 billion by 2020. rests on its ability to harness data. according to Sachin. he opines innovation is the key to the company's success. the premise of any business. the portal's recently launched paid music download service. [17] . Extending services like cash-on-delivery and credit card payment at doorstep were introduced to provide ample choice and comfort to customers. adds to the ‘surprise and delight' factor for customers.” Like a typical entrepreneur. and alliancing with like-minded businesses. Customers can buy music in MP3 format from over 700 genres. Now. and 55 languages. the attempt is to widen Flipkart's reach in the digital domain through Flyte. compares the vertical to a hard-fought marathon. traditional or modern. which are digital rights management (DRM) free. Innovation is just one aspect of the business universe. Sachin reiterates. “still needs lots of investment to bolster its back-end.” he signs off. and we'll do our best to bring e-commerce into the forefront. K. the scope for growth is immense. The files.com.” In this industry. in a way. there is no history one can to refer to.self-delivery network. becomes crucial for planning the business's future course of action. how does Flipkart utilise its data to generate consumer insights? Since the industry is still in infancy. Consulting firm Technopak Advisors estimates India's digital economy at $600 million currently. Both the founders are happy to see increased venture capital participation in the e-commerce space. and Founder and CEO. can be played without any restrictions on any type of device and for an unlimited number of times. because they're then treated to offers that are most suited and relevant to their preferences. one of India's earliest. “All our efforts are invested in matching customers' expectations. which. Indiaplaza. Gathering and analysing data. Today. which prompts the question. e-commerce veteran. This practice. “We are open to partnerships that'll help us attain our goals. Vaitheeswaran. as is the risk of failure. hence. “It's not like a 100-metre dash. Only those companies that can successfully engage customers through novel ideas. Although profits after tax remain negative.com! Uncovering India's online avatar is a fascinating process.” There's still no formula for 100 per cent success. Globally. Flipkart is running the marathon with ample support from private equity players such as Accel Partners and Tiger Global. quality products and seamless services will flourish. Awards and Recognition [18] . or simple common sense the e-retail hero has been able to accomplish all this during its formative years. we operate on the lowest margins. which have collectively invested $150 million in the entity so far. coupled with a rising web-literate population and zealous venture capital funding may just propel Flipkart to become India's answer to Amazon. the company's valuation is soaring thanks to eager participation of these private equity players. but we're still seeing real growth. May be it is sheer genius. The acquisition of Letsbuy. A burgeoning consumer class.com signals FlipKart's ambitions to capture the domestic online market. leading Indian Economic Daily Flipkart.com. Flipkart. Co-Founder of Flipkart Sachin Bansal. got Entrepreneur of the Year Award 2012-2013 from Economic Times.got Nominated for India MART Leaders of Tomorrow Awards 2011 Financial Express Top 10 Marketers of the Year CNBC TV18 Storyboard Top 3 Campaigns of the Year (2014) Star News Brand Excellence Award in & #39 in New Brand category Questionnaire: (Demographic Questions) [19] .com was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012' (IBLA). What is Your Age ? □ 15-20 □ 20-30 □ 30-40 □ 40< Q2. You are. Job □ Business □ Retired Q4. Your annual income is ? [20] . What describes your employment ? □ Student □ Govt.. □ Male □ Female Q3. Job □ Pvt.Q1. Are you comfortable with online shopping ? □ Yes □ No □ Sometimes (Service Quality Questions) Strongly Disagree Disagree [21] Neither Agree nor Agree Strongly Agree .000-25.000 (General lifestyle Questions) Q5.000 □ > 60.000-45.000 □ 45.□ < 10.000 □ 25. How often do you go for shopping ? □ □ □ □ Once a week Once a month Every three month Occasionally Q6.000-60.000 □ 10. What are Pros of Online shopping ? □ Wide range of Varieties □ Discount and Rebate Options □ Shopping without Efforts □ 1 month Replacement/Exchange of product Q11. Service Served Q10.Disagree Q7. Order Condition Q8. Delivery time Q9. Payment mode you Choose ? □ Online banking □ Credit/Debit Cards [22] . What according to you are Cons of online shopping ? □ Physical observation of Product □ Not Immediate Consignment of Goods □ Authenticity of Products □ Delivery Charges Q14.□ COD ( Cash on Delivery) Q12. Would you like to refer your friend/family for online shopping ? □ Yes □ No [23] . What do you feel about your privacy while making online transactions ? □ Secure /Safe □ Risky □ Not Sure Q13. Graphical representation of each question will make you understand easily about opinion of audience over e-shopping on flipkart ! Each Graph is Shown with caption and remarks related to question.Survey Response : Audience were suppose to choose only 1 desired option and Over all survey response was favouring the concept of e-retailing or online shopping of flipkart ! although there were lot of issues audience are facing over this but still the graph for online shopping goes high in many perspectives. Q1. Age Group who shop online most Age group 40 35 30 25 Age Group 20 15 10 5 0 15-20 20-30 30-40 [24] 40 & ABOVE . Employment wise shopping audience [25] . Which gender shops more online Gender Female .Q2. 64% Q3. 36% Male. Job Business Retired Q4. Monthly Income of online shoppers 24 6above 60.Employment Status 30 25 20 Employment Status 15 10 5 0 Student Govt. Job Pvt.000 0 5 10 15 20 Monthly Income(In thousands) [26] 25 30 .60k 21 25k -45k 18 10k .000 28 45k .25 k 9 Below 10. Shopping interval for audience Shopping Interval Weekly. 23% Monthly. 10% Occasionaly.Q5. Coziness with online shopping Are you Comfortable to shop Online 60 50 40 59 30 20 28 10 0 13 No Yes Sometimes [27] . 35% Every 3 Month. 32% Q6. Satisfaction level over Condition of good received Satisfaction level over Order Condition 48 50 45 40 35 30 25 20 15 10 5 0 26 12 12 2 Q8. Satisfaction level over delivery time taken [28] .Q7. Satisfactory level for Delivery time 44 32 45 40 35 30 25 20 15 10 5 0 4 11 9 Q9. Satisfaction level on Service served Satisfaction level on Service served 47 50 45 40 35 30 25 20 15 10 5 0 32 18 1 3 [29] . Q10. Best factor of online shopping Pro of online Shopping 40 35 30 25 20 15 10 5 0 31 35 24 10 Q11. Preferred Payment mode [30] . How Safe audience feel of making online Transactions How safe people feel for E-payment 23 Not Sure 44 Risky 33 Secure/Safe 0 5 10 15 20 [31] 25 30 35 40 45 50 .Payment mode 16 50 Online banking Debit/Credit Card COD 33 Q12. Q13. Most negative thing about online Shopping Cons of Online shopping 45 40 35 30 25 20 15 10 5 0 42 24 31 3 Q14. 23% Yes . 77% [32] . How many people will Refer others to shop Online How many will refer other to Shop Online No. People with Income level above 60 k lies for 24 % and with Income level of 40k to 60kStands highest with 28 %. People with Pvt. Job are one who shops online most and Student rely next on Online Shopping close to Business persons and retired ones stand for least relying on online shopping.Conclusion Survey shows that most online shopping age group is of 20 –30 Years and then 30 to 40 years and more than 50 % people are males and females stands for 30 % which shows most of the middle age males are shopping online. On Shopping Interval Survey says that majority of people do shopping every 3 month and then next comes Monthly shoppers [33] . wider varieties and then for no efforts involved. People prefer to shop online because of Discounts and rebates. while over delivery time people had avg.and then comes who do occasionally. Survey also shows that 60 % of people are quite comfortable with online shopping only 28 % says no. On Quality of Service served again majority of people were agree and then neither agree nor disagree and only 1 stands for disagree. People don’t shop online because of Physical observation of product that stand major factor here and then not immediate consignment and then authenticity of the product and 50 % of people choose COD as they find to pay only after they receive their order and 33% pay through debit & credit cards and very few people use online banking But majority of people find E-Payment Risky then comes who find it safe and 23 % people are not sure over it. Recommendation [34] . While figures on Order that was served comes out with positive response 48% of people were agree over order condition and 26% were neither agree nor disagree only 2 % people were showed dissatisfaction over this.At last 77% people will refer other t shop online which is quite favourable and positive response and only 23% will not prefer others to shop online. Response as 44% were neither agree nor disagree and 32% were agree over delivery time taken 4 % were disappointed. com http://en.wikipedia.flipkart.com/about-us http://blog.com [35] .flipkart.org/wiki/Flipkart http://www.flipkart.References http://qualtricks.com/?link=http%3A%2F%2Fblog. com/news-analysis/forget-the-big-billionfiasco-flipkarts-net-neutrality-stand-is-a-whole-new-level-of-socialmedia-fail-262987.html [36] .http://tech.firstpost.