hi friends this is the document and assignment on flipkart.com use this as a seminar projectFull description
Dissertation Report on marketing strategies used by flipkart
Im Marketing Strategies of FlipkartFull description
Descripción: If the consumer economy had a sex, it would be female. If the business world had a sex, it would be male. And therein lies the pickle. Women are the engine of the global economy, driving 80 ...
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Flipkart Buys Myntra Dominating E-Commerce in India
Facts Indian E-Commerce
Flipkart h c n u a L
1s t
2012-13 2007-08 -
2007
56% CAGR
In India
3rd
In Asia (Post Myntra Acquisition)
E-Commerce Deals in 2014-15
243 Mn
19 Deals $500 Mn
Projected Indian internet users in June 2014
Statistics E-commerce market in India is valued at $3 billion
Flipkart had a 4.9% share of the $2.9-billion worth of internet retailing transactions in 2013
Since March 2013, Flipkart’s revenues jumped fivefold to Rs. 1,180 crore, but its loss widened to Rs. 281.7 crore
Flipkart acquired a majority stake in Myntra for $300 million
Alibaba’s, China’s largest e-commerce company platforms was $248 billion in 2013
Issues Consolidation of apparel e-commerce is likely to create a monopoly situation in the market leading to price rise Tendency to acquire and shut down firms inspite of repeated assurances to the contrary (Letsbuy, Shersingh) •Flipkart founders are taking in salaries of over $ 2 mn despite it being a consistently loss making firm •They’ve raised a lot of money from venture capitalist funds and have been expanding their sales volumes, yet it is a loss making business and might continue to be so for a long time. The founders might be hoping to sell it in a few years when it has gained a considerable value.
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Also these Foreign companies circumvent existing FDI norms by having “front companies” who execute B 2 C flash sales therefore breaching FEMA rules
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Since most of these companies are being funded by same VC’s and PE’s, thus they may collude backdoor to the loss of customer interests
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A merger is likely to protect smaller Indian players from being acquired by global giants
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Different cultures in India have evolved through mutual dependance/sharing. Thus the Chinese model of Alibaba will impact this mutual dependence, leading to inter cultural conflicts
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Unemployment in unorganized sector would increase due to changes in consumer buying behavior
Information
Flipkart acquires Myntra.com
E-commerce market to be $22b by 2018
To grow at 50-55% annually
Flipkart and Myntra will operate independently after merger to avoid losing individual value
Myntra is focused on fashion wear which fetches high margin
Largest chunk of Flipkart’s revenues comes from e-selling electronic products
Private equity players Tiger Global management and Accel Partners involved in the merger
Indian government policy does not allow FDI in B2C e-commerce, while it allows 100% FDI in B2B e-commerce.
Flipkart has not yet used the $360 million it raised in 2013
Key Properties Key Events Share of $2.9-billion worth of internet retailing transactions in 2013 Flipkart 4.9% Amazon 1.6%
Myntra 4.1% e-Bay 1.2%
Amazon.com and E-bay are beefing up their presence in the over $3-billion Indian market
Problem Identification : The angel investors had stake in both Flipkart and Myntra and just for their personal gains, they are going on with the deal without giving a proper unjust view of the merger.
Uncontrollable variables (Y)– Industry and economic scenario, Amazon, e-bay expansion
Problem Specification
Flipkart is dependent upon the money from angel invertors to expand in the ever growing ecommerce market. However, the economic scenario, competition from Amazon, e-bay etc. are a challenge along with the probability of an ethical dilemma of merging.
Problem Formulation Identification Controllable
Angel investors had stake in both Flipkart and Myntra and just for their personal gains, they are going on with the deal without giving a proper unjust view of the merger
Controllable
Problem Properties Competitors expanding in Indian Markets Antecedants Inspiration from Alibaba’s business model
Revenue not translating to appropriate profit margins in Flipkart Determinants
Investment giants having dual stake in Flipkart and Myntra
Shrinking market share of electronic segments Concomitants Targeted Strategy of Flipkart to increase the customer base in other domains