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1. INTRODUCTION
Generally speaking the trend of e-commerce has been increased rapidly in the
recent years with the development of internet and due to the easy accessibility
of internet usage. Easy access to internet has driven consumers to shop online.
In fact, according to the University of California, Los Angeles communication
policy (2001), online shopping is third most popular activity on the internet
after email using and web browsing. Globally more than 627 million people
have done online shopping so far. World’s biggest online shoppers include
Germans and British. Books, airline tickets/reservations, clothing/shoes
videos/games and other electronic products are the most popular items
purchased on the internet. (ACNielsen Report on Global Consumer Attitudes
towards Online Shopping, 2007).
Not only benefits but also risk is associated with online shopping.
Generally speaking internet users avert online shopping because of credit-card
fraud, lack of privacy, non-delivery risk, lack of guarantee of quality of goods
and services. Concerned authorities are devising policies to minimize the risk
involved in e-business.
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Marketers have carefully analyzed the consumers’ attitude and behaviour
towards the online shopping and spend billions of dollars to facilitate all the
demographics of online shoppers.
The main theme of the study is to know the factors that influence the
consumers’ attitudes and behaviours towards online shopping. Researchers will
also focus on how consumers form such attitudes with the help of models and
who are truly the online shoppers. According to the online survey within few
American students, Case, Burns, and Dick, (2001, p.873) concluded that
“Internet knowledge, income, and education level are especially powerful
predictors of Internet purchases among university Students”.
“An increasing number and variety of firms and organizations are exploiting
and creating.
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Business opportunities on the Internet”, Liao and Cheung
(2000:299).
Above mention statistics indicate the rapid growth in the field of virtual
shopping. With this emerging field of shopping the interest of marketers is also
increasing in studying what actually motivates consumers to shop online. Fierce
competitions among online sellers have forced them to gain the competitive
edge in the field of virtual shopping.
In addition to the
tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to more efficiently reach existing and potential
customers. Although most of the revenue of online transactions comes from
business-to-business commerce, the practitioners of business-to-consumer
commerce should not lose confidence.
The need of this research is to identify and get insight into what main factors
the online consumer takes into consideration when most he buy products on
internet what affects their shopping behaviour, basic need of this research is to
find out what are the main factors affect the online consumer when considering
and making a purchase over Internet
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1.5 METHODOLOGY OF THE STUDY
Tool : Questionnaire
Sample size : 50
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CHAPTER -2
Industry and Company
profile
Industry
FLIPKART
India has a web client’s base of around 450 million starting at July 2017, 40% of the populace.
Notwithstanding being the second-biggest user base in world, just behind China (650 million, 48%
of populace), the infiltration of web based business is low contrasted with business sectors like the
United States (266 million, 84%), or France (54 M, 81%), yet is developing at an exceptional rate,
including around 6 million new contestants consistently. The business accord is that development
is at an affectation point.
In India, money down is the most favoured instalment strategy, collecting 75% of the e-retail
exercises. Interest for worldwide purchaser items (counting long-tail things) is developing
substantially quicker than in-nation supply from approved merchants and online business
offerings.
In 2015, the biggest web based business organizations in India were Flipkart, Snap deal, Amazon
In the course of the most recent two decades, rising web furthermore, cell phone infiltration has
changed the way we impart and do business. Web based business is moderately a novel idea. It
is, at exhibit, intensely inclining on the web and cell phone insurgency to on a very basic level
While in nations, for example, the US and China, web based business has taken critical steps to
accomplish offers of more than 150 billion USD in income, the industry in India is, still at its
earliest stages. However finished the previous couple of years, the segment have developed by
very nearly 35% CAGR from 3.8 billion USD in 2009 to an expected 12.6 billion USD in 2013.
Industry thinks about by IAMA I demonstrate that online travel overwhelms the internet business
industry with an expected 70% of the piece of the overall industry. In any case, e-retail in both its
structures; online retail and commercial centre, has turned into the quickest developing fragment,
expanding its offer from 10% of every 2009 to an expected 18% out of 2013 . Figuring’s in light
of industry benchmarks appraise that the quantity of package registration in online business entries
surpassed 100 million out of 2013. Be that as it may, this offer speaks to a miniscule extent (less
than 1%) of India's aggregate retail advertise, in any case, is balanced for proceeded with
development in the coming years. On the off chance that this hearty development proceeds
throughout the following couple of years, the size of the e-retail industry is ready to be 10 to 20
billion USD by 2017-2020. This development is required to be driven by expanded shopper drove
buys in durables and gadgets, clothes and frill, other than customary items, for example, books and
sound visuals.
• Evolution of logistics scene in the nation will be a critical factor in deciding the course for the e-
retailing industry. Logistics development will be important to figure it out the potential vigorous
development.
• Despite an immense potential, long-term gainfulness of the e-retailing industry in the nation is
still under question. After such a significant number of years of operations, all the real e-retailers
are yet to begin making benefits. In the wake of skinny edges and problematic framework
coming about in higher conveyance cost, the long haul productivity still appears an inaccessible
probability.
• FDI in the stock drove retail will likewise be a vital factor in molding up the eventual fate of the
business. In the current situation, worldwide e-retailing goliaths like Rakuten and Alibaba are
looking at a section into Indian e-retail advertise. Amazon has as of late reported a 2 billion USD
venture working on commercial centre model. FDI remittance could be an essential factor in
pulling in noteworthy speculations bringing about better framework and vigorous supply chains.
• Evolution of tax collection approaches in the nation will large impact the way enterprises work
on warehousing. With consistency in tax collection laws the nation over, e-retailers are relied upon
to draw nearer to utilization focuses with a mean to address the deceptions in the logistics
chain by evacuating the covers in type of conveyance and sortation focuses which are generally
nearer to the utilization focuses. It will likewise result in continuous access to the e-retailing market.
In a current case, a south Indian state had sent an assessment notice to e-retailers bringing about all
e-retailers pulling back administrations in the specific state on account of varying assess
arrangements.
• The advancement of the current logistics suppliers and more players entering the 3PL space
will bring about acknowledgment of the gigantic capability of the e-retailing industry. Major 3PL
players (for example, FedEx, DHL, UPS, Gati, and so on) should outfit to the expanding requests
of the e-retailing industry in this way helping in justification of conveyance costs and give much
required harmony between utilizing hostage logistics organize and 3PLs. To take the opportunity
and help the e-retailing industry to overcome infrastructural bottlenecks, restoration of the Indian
Postal Service can be an amusement changer. Teaming up the solid last-mile capacity with
is balanced for an energizing time of detonating development in a time of three to five years. This
is relied upon to prompt generous interests in supporting foundation what's more, imaginative and
Established in October 2007, Flipkart is one of India's driving internet business commercial
centres, with home office in Bengaluru. Flipkart was established by Sachin Bansal and Binny
Bansal and the organization at first began as an online book shop. Afterward, as the organization's
notoriety developed, it additionally began offering different things, for example, music, movies
and mobile phones. As the internet business upset picked up energy in India, Flipkart developed
at a quickened pace and included a few new item runs in its portfolio. Starting at now, the
classifications, for example, mobile phones & accessories, computers and accessories, laptops,
books and e-books, home appliances, electronic goods, clothes and accessories, sports and fitness,
Flipkart has 100 million registered users and more than 100 thousand sellers on its e-commerce
platform. The company has invested in 21 state-of-the-art warehouses to ensure prompt delivery
to its customers. The Flipkart website attracts 10 million page hits every day and around 8 million
shipments are processed every month. Flipkart has also introduced its mobile app, which has
become quite popular, with more than 50 million app users. Flipkart is a billion dollar
company and its valuation in 2016 was Rs 15,129 crore (US$2.3 billion). It employs more than
33,000 people.
Core values – Customer First, Audacity, Ownership, Bias for Action and Respect.
Competition
With Snapdeal in its kitty, Flipkart now has only one major competitor Amazon India. However,
having only one is enough since Amazon is betting big on India’s e-commerce revolution and has
committed $5 billion investments in Amazon India. The company has already received $2 billion
in funding and $3 billion more are planned. Amazon India has been consistently expanding its
SWOT Analysis
Strengths: Weaknesses:
Independent board
Own Logistics Arm e kart
Secretive and Political Culture.
Own Online payment gateway solution
Excessive focus on expanding customer
Payzippy
✓ Own Marketplace model base rather than pulling profits
Opportunities: Threats:
Snapdeal, Infibeam,Indiaplaza,
✓ Providing logistics services to its
Homeshop18 etc.
competitors.
✓ Flipkart is a company which has entered into online E-Commerce industry very early. It has
strong brand value in India.
✓ Flipkart has developed its own logistics arm E-Kart, which has been initially used for in- house
deliveries.
✓ Recently, it has developed its own payment gateway solution provider, where customers can
save their credit card details, Payzippy.
✓ Flipkart has its own marketplace model where sellers need to register in this platform and
buyers can negotiate with the sellers on varied service levels and it also helps company to
reduce its own inventory. Flipkart will just deliver those products.
Most of the money has been invested by Venture firms like Tiger global and Accel Partners.
SO, most of the decisions that are taken by founders of firm have to been approved by Investors.
Secretive and political culture is followed in this company while they are recruiting hires which
Flipkart is excessively focusing on expanding customer base rather than pulling profits in the
Flipkart can venture into online apparel and fashion business, where the gross margins are
higher.
Flipkart can offer its logistics services to its competitors in online retail sector with its
logistics arm E-kart. With online commerce sector going to boom in the coming years,
online transactions are going to increase. So, if Flipkart offers its logistics services to its competitors,
Threats
Flipkart is facing a lot of competition from some of the online retailers like Amazon,Snapdeal,
Indiaplaza, Homeshop1
1. Strategy
Behavioral & Psychographic are the segmentation strategies used by Flipkart to segment the
Flipkart uses undifferentiated targeting strategy, since people of all demography purchase
They have acquired companies like Myntra, Jabong, Appiterate, Letsbuy, Mine360,
Flipkart had received $700M of funding last year after which its valuation gone to $15
billion.
In India most of the companies are facing issue of government regulations where only 26%
FDI was allowed earlier which is now increased to 100% in recent budget of FY16- 17.
Externally, the competition is dynamic as Amazon, Flipkart and Snapdeal are always at
loggerheads.
2. Structure
There are top five shareholders of the Flipkart, the list is as follows:
Its called "superordinate goals" when the model was first developed, these are the core values of
the company that are evidenced in the corporate culture and the general work ethics– Customer
The mission and values of the organization, we can infer that they are in sync with each other. For
example, its mission statement reads out that “Providing delightful and memorable customer
experience.” So, until and unless you are concerned about your customers or obsessed with your
Flipkart is in a very strong leadership position with over 60% market share of the m-
commerce market, 50 million customers and clear leadership in smartphones and fashion.
To build world-class customer experience, expand our supply chain infrastructure to reach all
parts of India, drive innovations in mobile commerce and bring in disruptive technologies.
To spread the benefits of e-commerce across the length and breadth of India.
To build world-class customer experience, expand our supply chain infrastructure to reach all
parts of India, drive innovations in mobile commerce and bring in disruptive technologies.
To spread the benefits of e-commerce across the length and breadth of India.
6. Staff
Staffs are very much oriented towards the company Vision and Mission.
Staffs are very much capable to build the system for handling the large scale of products and
customers.
7. Skills
The actual skills and competencies of the employees working for the company.
employees may need to take time off work or go on light duty restrictions as they recover, which
• Rejected loads: When a retailer or distributor rejects a load of product, employees must return
the truck to the warehouse, repack it and send it out again, resulting in damaged inventory, higher
transportation costs, and wasted working hours. When rejected goods have short shelf lives, as in
• Conveyance: The more frequently inventory is handled, the higher the risk of product damage.
Moving inventory around the warehouse due to space issues or poor planning also wastes working
Kaizen methods examine these problems, starting by scrutinizing the process that caused the
issue. In many cases, it’s possible that a single step in the process is contributing to multiple
problems. By changing that one factor, many inefficiencies can be reduced or eliminated.
Flipkart has been the torch bearer in e-commerce supply chain in India. With its own Supply Chain
design and operation division, Flipkart’s agenda is to establish the standards in e- commerce supply
chain which would go on to become proven best practices for others in the industry to follow. The
warehouse which is better known as a Fulfilment Centre in ecommerce parlance stands at the heart
of its supply chain as this is a B2C industry while warehouses typically connect a B2B type of
customer pool. The responsiveness, robustness, efficiency and thus the customer experience
Flipkart’s supply chain & logistics entity Ekart has grown multi fold over the past 10 years to
become India’s largest logistics & supply chain company delivering ~10mn shipments monthly
across a reach of 6950+ Pin Codes guaranteeing same day delivery in ~320 pin code and next
day delivery in ~1325 pin code. Currently we have 1 Million Products registered in our platform
Design and deployment of a warehousing done in the form of a 2-tier system where the Deep
Reserve systematically feeds the Forward Reserve which helps ensure a highly responsive and
reflexive supply chain while simultaneously staying lean on inventory and thus working capital.
State of the art automation such as cross-belt sorters and profilers shows the future readiness of
Flipkart’s warehousing system. Over the years Flipkart Warehouse operation has evolved to
achieve efficiency & control and mastered in handling complex environment at a very high scale.
Currently we have total 12 Non-Large FC, PAN India in which 6 are managed by 3pl partner and
Our Vision: - "To be customer centric, technology driven, best-in-class Fulfillment Centre
MSMEs. The consumer response has demonstrated the growing adoption of e-commerce, driven by
purchases of a wide range of products, increased convenience and user-friendly technology, and financial
constructs. The 2021 editon of The Big Billion Days drove robust growth opportunities for sellers and
MSMEs, and enabled better income and livelihoods for Flipkart’s Wishmasters and supply chain partners,
including Kiranas.
With 1.3 times the number of transacting sellers this year, consisting of MSMEs, artisans, weavers, and
craftsmen, more than 10% of them witnessed a 3X growth in sales this year. There were more than 55%
new sellers this TBBD, with 57% hailing from Tier-2, Tier-3, and smaller cities and towns such as Jaipur,
There was a significant increase in customer satisfaction with same day deliveries across thousands of
pincodes. In a significant effort to augment their income, Flipkart aims to make over 30 million deliveries
During the Big Billion Days 2020, from Flipkart Samarth witnessed a growth of 6X compared to TBBD
2020. The Samarth initiative, initiated in 2019, aims to uplift and embrace India’s artisans, weavers and
micro-enterprises into the e-commerce fold. The most popular Samarath products were from categories
like Home Decor (showpieces), Natural Beauty products (shampoos, moisturisers), and Women
Ethnicwear (sarees).
Key takeaways
• The most popular purchases over the course of the Big Billion Days so far, are across lifestyle,
• The number of premium smartphones sold during the Big Billion Days has doubled from TBBD
2020. From this, 41.78% of premium smartphones were purchased by customers in Tier 3 cities.
• Customers purchased lifestyle products from over 44,000 unique brands this TBBD, reflecting a
• While buying large appliances, about a fifth of all customers opted for an affordability payment
construct
• In the consumer electronics segment, smart watches and Fitness bands saw a 100% jump from
• The grocery and hyperlocal segments continued to address growing needs, as consumers from
• With gardening becoming one of the most-pursued hobbies, Home Improvement Tools, especially
Gardening tools, have seen a sharp rise in interest. The Home Improvement category grew by
about 80% year on year. Work from home also continues to boost demand for furnitureand
Innovative and bespoke financial constructs such as Flipkart Pay Later, No cost EMI, the credit card and
others enabled consumers in buying their products of choice. Accessibility was also a key catalyst, with
the entire product range available across all pin codes. The anticipation for TBBD was evident as millions
of customers pre-booked products just prior to Early Access by paying just Re.1.
Flipkart Wholesale brings festive cheers to kiranas and retailers as it hosts The Big Billion
Days-
● Retailers in over 10,000 plus PIN codes across 24 states and union territories to enjoy upto 85%
increased profit margins on over 5 lakh listings across Fashion, Grocery and General Merchandise
● Flipkart Wholesale members to benefit from up to 14 days of interest-free credit with line limits
ranging from ₹10k to ₹25 lacs in partnership with Banks and Fintech lenders
Millions of retailers, kiranas and small businesses in the country are excited at the onset of the Flipkart
Group’s The Big Billion Days sale. At Best Price cash-and-carry stores and on Flipkart Wholesale across
24 states and Union Territories in the country, the sale features attractive offers to more than 1.5 million
kiranas, who can choose from a wide selection of products ranging from over 4 lakh listings in Fashion,
13,500 in Grocery, and 25,000 products in General Merchandise. This Big Billion Days, kiranas and
retailers can avail higher margin gains, in return passing on benefits to end consumers.
Best Price members can walk into Best Price stores or order conveniently from the Flipkart Wholesale
app, and avail best deals on a varied assortment of high-quality products across categories such as
packaged food, home care, personal care, fashion, grocery and general merchandise
In Conversation – Flipkart Sellers share why The Big Billion Days moves the needle on market
commerce, sellers pin optimism on #BigBillionDays. This festive season, they hope to flip over the
pandemic slump.
Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group, interacted with Flipkart sellers in
Bengaluru ahead of the launch of The Big Billion Days. Speaking with Bengaluru-based Flipkart sellers
StoneSoup, he inquired about their journey with Flipkart and their expectations of the festive season sale.
Raju, who inherited his traditional family business, realised the value of taking it online on Flipkart with
his father’s blessings more than five years ago. Today, his success makes him a poster-boy of e-commerce.
Smita’s company StoneSoup joined hands with Flipkart as a Flipkart Samarth partner, and lists products
like compost kits, and feminine hygiene products like menstrual cups and reusable cloth sanitary pads on
the platform.
While Raju counts on key market insights from his account manager to plan for volume-driven sales, the
success of Smita’s StoneSoup hinges on the right positioning to the right audience.
At Flipkart, we have strengthened our ‘Kirana Delivery Program’, which helps onboard local general trade
stores as delivery partners. This festive season, the Kirana delivery program has on-boarded morethan
100,000 Kirana partners from across the country that will deliver millions of shipments during the festive
country during the festive season. Flipkart started the program to help local stores and shops get on
board as delivery partners in 2019, and since then, has invested consistently to get these businesses ready
for making deliveries. Flipkart has a dedicated team as part of this ongoing partnership that helps the
Kiranas with knowledge, expertise, experience and technology to make millions of deliveries seamlessly.
With a 100,000 strong Kirana delivery network which doubled from last year, Flipkart is further
strengthening its last-mile network and reach, especially in PIN codes and towns that are difficult to reach
and creating opportunities for digital upskilling as well as additional income for kiranas.
This festive season sees participation of Kiranas from regions including Khammam (Telangana), Bareilly
(Uttar Pradesh) and Junagarh (Odisha), to name a few, as consumers seek safe and timely deliveries
through e-commerce
Building capacity – Flipkart’s festive season supply chain expansion across India
Further, Flipkart has strengthened its last-mile reach with the addition of more than 1,000 new delivery
hubs (DH) across the country. The complexity and scale of the Big Billion Days require investments for
capacity, storage, sorting, packaging, human resources, training, and delivery, which helps generate
Flipkart has also strengthened the partnership with Kiranas as part of its ‘last-mile delivery partnership’
program and enabled them to become part of the technology-enabled digital ecosystem. This year,
Flipkart is creating direct seasonal employment for more than 1,15,000 people of which 15% are women
• More than 100 facilities added from brand partners to help customers get faster deliveries
• The alternate delivery method of Kiranas as delivery partners strengthened with 1,00,000 Kirana
partners
• Working with many third-party logistics partners across the country to create faster deliveries
• Flipkart Pay Later will become a open-to-all construct, providing credit to over 100 million new
consumers
• Credit and Debit Card EMIs to be offered to all Flipkart customers through partnerships with over
Flipkart will also offer no-cost EMI offers across a wide range of products, as well as standard EMIs, in
partnership with 18 leading banks and financial companies including American Express, Axis Bank, Bajaj
Finserv, Bank of Baroda, Citibank, Federal Bank, HDFC Bank, Home Credit, HSBC, ICICI Bank, IDFC FIRST
Bank, IndusInd Bank, J&K Bank, Kotak Bank, RBL Bank, Standard Chartered, SBI, Zestmoney and others.
The tenures for no-cost EMIs and standard EMIs will be up to 12 months and 36 months respectively.
• Users need to enter their PAN and Aadhar details on the app
• On making their purchase, users can select ‘Flipkart Pay Later EMI’ as their payment option and
The application process is quick and frictionless, and customers can manage their account easily through