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    Flipkart-Myntra Acquisition

    Uploaded by

    Amit Singh
    Details pertaining to the acquisition of myntra by flipkart & their future prospects in the indian e-commerce.

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    © All Rights Reserved
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    Flipkart-Myntra Acquisition

    Uploaded by

    Amit Singh
    743 views53 pages
    Details pertaining to the acquisition of myntra by flipkart & their future prospects in the indian e-commerce.

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    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    Details pertaining to the acquisition of myntra by flipkart & their future prospects in the indian e-commerce.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    743 views53 pages

    Flipkart-Myntra Acquisition

    Uploaded by

    Amit Singh
    Details pertaining to the acquisition of myntra by flipkart & their future prospects in the indian e-commerce.

    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 53

    Group Members

    JITIN AMARMANI
    JYOTSNA CHATURVEDI
    KRITIKA GUPTA
    MOHIT JAIN

    NIHARIKA BISHT
    NIKITA SINGH
    PIYUSH PARASHAR
    PIYUSH PRAKASH

    SHASHANK VERMA

    E-Commerce

    What is E-Commerce?

    Internet Use in India- 137 million


    Preferred payment mode- COD
    Market Size and growth
    $2.5 to 1$4 billion in 3 years
    10 million online shoppers

    Started

    2007

    Expanded - 2010
    Payment methods
    Revenue $11.8 billion

    Established

    -2007

    Headquarters
    Turn Over 800 Crore

    Operations

    How does Myntra or Flipkart works

    Shopping Screen

    Shopping Kart

    Payment options

    Receipt Generation
    Order No : OD126547826
    This contains all the information i.e. product code,
    date of purchase , reference no, delivery area code

    Helpful in easy tracking of orders.

    Delivery and Logistics

    No of order served daily > 30,000


    Own delivery channel for metro cities. i.e. EKART.
    Partner delivery agencies for rest of target area.
    Blue Dart & DHL are the major delivery partners of
    flipkart.

    Return Policy
    30 days money back guarantee : Unsatisfied customer
    calls flipkart customer service product is returned by
    logistics partner and replacement or money is
    returned in the account.

    E-Wallet Feature: Loyal customer deposit more


    money and can be used for further purchases

    Customer Support
    New Sale, Customer grievances, Other info
    24 * 7 Customer Support.

    Internal process in Myntra & Flipkart

    How can these site offer discount every weekend


    unlike other stores ?

    Total number of staff working in this


    organization

    WHY???
    BIG DEAL.

    BIGGER REASONS.

    BUSINESS MINDS!!!!!!!!!!

    COMPETITION COMES
    CALLING

    COST OF ACQUISITION

    PROFITABILITY TARGETS
    ENTER INTO NEW
    BUSINESS

    Cost Of Acquisition And Economies Of Scale -

    By joining forces, Flipkart and Myntra would


    realize huge cost savings on customer
    acquisition as they basically target the same
    customer and demographic base. Combined
    company would control the major ECommerce of India resulting in signifcant
    economies of scales.

    GAME
    OVER
    EFFECT

    Competition Amazon, with its well oiled

    machinery, is ready to fight against all


    players of E-Commerce in India which
    both Flipkart and Myntra would better be
    able to face as a combined entity.

    Profitability targets Accel Partners and

    Tiger Global are investors to both Flipkart


    and Myntra. Their merger would concentrate
    the investments from both the companies,
    helping them to reach revenue and profitability
    targets much quicker.

    Pants into new business Apparel segment

    is one of the most profitable segments in ecommerce industry with profit margin varying
    from 20-50%. Flipkart would take advantage
    of Myntra being the strongest player in this
    industry, for its own growth and profits.

    Awards by Flipkart
    Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award
    2012-2013 from Economic Times, leading Indian Economic Daily
    Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India
    Business Leader Awards 2012' (IBLA).
    Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards
    2011.
    Flipkart.com, secured second position in the List of Cheapest Mobile Store
    2013, compiled by Indian e-commerce observer Zoutons.com.

    Awards by Myntra
    Awarded 'Fashion E-Retailer of the Year 2013' by
    Franchise India Indian E-Retail Awards

    Awarded 'Best E-commerce Website for 2012' by


    IAMAI India Digital Awards

    Awarded 'Images Most Admired Retailer of the

    Year: NonStore Retail' for 2012 by Images Group

    Awarded 'Best E-commerce Partner of the year


    2011-12' by Puma India

    Competitors
    Competition seeks business.

    International E-Retailing Store

    Amazon
    Worlds Largest Online
    Shopping site founded in
    1994.

    In India launched in June,


    2013.

    Has one of the best


    delivery networks in India.

    Site Rank: 10.

    Ebay
    American E-commerce

    company founded in 1995


    Better known for its
    Trading facilities(Buy &
    Sell).
    Provides some of the
    amazing deals which you
    cant find on any other
    sites.
    Site Rank: 26.

    Domestic E-Retailing Store

    Snapdeal
    Founded in 2010.
    Since then it has been

    growing at very fast rate.


    You can find everything
    on this site from hat to
    shoe and from bags to
    watches.
    Site Rank: 291(Globally)
    15(India).

    Jabong
    Indian fashion and lifestyle ecommerce portal founded in
    2012.

    Ships 14,000 orders on a daily


    basis out of which 60% were
    from small towns.

    Has set a record for sale in the


    male fashion category in 2012.

    Site Rank: 301(Globally)


    14(India).

    Fun Facts:
    Which E-Retailer has its founders having same surname
    but not brothers?

    Which E-company got started by batch-mates at IIT


    Delhi?

    Which Company got started by ex-employees of


    Amazon?

    Which Company started off with an initial investment of

    less than $8000 leading to a staggering company worth of


    $1.6billion today?

    Myntra
    To be a fashion apparel online store only

    To build a strong consumer base

    Basic strategy Increase product range -> Enhance

    customer engagement -> maximize customer loyalty

    Flipkart
    Flipkart to focus on books, electronics and other wide range of
    products

    Flipkart Fashion Store TV campaign


    Flipkart First
    *Bonus Information* - This is very similar to Amazon's Prime
    program, which the company has not launched in India yet

    Flipkart
    Basic Strategy To Deliver fast, create and maintain
    a quality enhanced website, increase sales volume
    with reasonable product price.

    *Bonus Information* - To counter transportation


    cost -> Increase customer loyalty

    Try and Buy service

    Myntra + Flipkart
    Flipkarts Reason
    Wanted apparel products specialization, deeper understanding of
    fashion, aesthetic presentation and experience.

    Fashion products to become the most popular category in the near


    future.

    Myntras Reason
    To have a stronger distribution network with the present ratio being at
    70:250

    To foray into the mobile platform


    To increase warehouse capacity by 4 times

    Continued
    Myntra has started offering 30-40% discount after the infusion.
    Also, due to the fact of being funded 5 crores by Premji Invest

    Simple Strategy Combine to two entities -> get a market share


    a 50% -> keeping the functionality separate, take it to 60%

    CHALLENGES

    CHALLENGES
    1) Uncertainity of profits

    Flipkarts revenue soars fivefold to more than Rs.11K crore, but expenses jump more
    than five times to Rs 13.5K crore. (Mint).

    Layoffs and reduced discounts.

    Is Flipkart Going To Be Another Kingfisher (Forbes)

    Burn Rate brought down from $8 million to about $6 million with ($80-85 million
    still left in the bank.

    CHALLENGES

    DISADVANTAGES
    When company started-It was all about experience but today its just about products.
    1)Curbing negative reviewsOfficial policy of flipkart-

    a)

    If a review consists only of a product review (Positive or negative): Approve

    b)

    b) If a review consists only of a service feedback (Positive or negative): Reject.

    2) Over-dependence on amazon for new ideasOne might think the similarity between both is limited to the fact that Flipkart also started their business by
    selling books just like Amazon.
    But flipkarts Photocopiers run way deeper.

    Benefits

    FLIPKART MYNTRA
    THE GAME CHANGER
    -> Flipkart and Myntra together create the largest
    e-commerce stories and together will
    dominate the market.

    Market Share
    -> online fashion market share
    Myntra 30% & Flipkart 20% at present.

    Myntra
    30%
    Others
    50%

    Myntra
    Flipcart
    Others
    Flipcart
    20%

    Market Share
    35%
    65%

    Flipkart+Myntra
    Other's

    -> Become leaders in the category of Fashion.

    -> Flipkarts earned 4-5% by electronics & phones category,


    F&A will generate double digit margins.
    -> 65% market share - online fashion segment
    by December 2015.

    -> Myntra to adopt Flipkarts Operational model


    - Marketplace Model in order to overcome:

    No need for Warehousing


    No shipping Costs
    Increased Profit Margins
    Expand its reach to new customer.

    -> The biggest Competitor Snapdeal,


    which is backed by ebay.

    -> Discourages the growth pace of Jabong.


    -> Walmarts entry into the indian e -market is imminent.

    -> It squares off against Amazon


    for dominance of India's
    fast-growing online retail market.

    -> India's e-commerce market has seen huge growth in the past few years as
    more people log on to the Internet to shop. FlipMynt also needs to overcome
    the threat of small online retail markets.

    FUTURE AND SCOPE


    Indian Population is
    1.2 billion

    330 Million internet


    users

    Only 10 Million
    online Shoppers

    E-Commerce
    growing @ 30% in
    India vs 9% globally

    WHY WILL IT GROW?


    BUSY
    LIFESTYL
    ES

    RISE OF
    TIER II
    CITIES

    TIE-UPS
    WITH
    INTERNA
    TI-ONAL
    BRANDS

    INCREAS
    E IN
    DISPOSAB
    L-E
    INCOME

    CoD
    FACILITY

    CONCLUSION

    THANK YOU!

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