The Flipkart story

Source: The Hindu

Introduction about Flipcart :

Indian e-commerce company headquartered in Bangalore.
Founded by Sachin Bansal and Binny Bansal in 2007. Initially focused on online sales of books, later expanded into electronic goods and variety of other products. Offers multiple payment methods like credit card, debit card, net banking, e-gift voucher and cash on delivery. .

Initially funded by Bansals Rs 4,00,000. Raised funding from Accel and Tiger Global. Reported sales were 40 million in FY 2005-2009,200 million for FY 2009-2010, 750 million for FY 2010-2011 and in FY 2011- 2012, it is set to cross 5 billion.
On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of 50 billion by 2014. In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com.

Later, in February 2012, the company revealed its new Flyte Digital Music Store. Flyte, a legal music download service in the vein of iTunes and Amazon.com, will offer DRM-free MP3 downloads.

The Flipcart Story:

From a start-up with an investment of just 4 lakhs rupees, Flipkart has grown into a $100 million-revenue online retail giant in just five years. Adds Naveed, as an afterthought, I felt Flipkart was the best option as the transaction was easy, and the variety of products was a bonus. For Flipkart, this means the unlocking of a vast audience waiting to experience the joys and comfort of shopping online.

E-commerce is good to go?

In the metros, shortage of time is a big driver for online shopping.
On the other hand, accessibility to a variety of products makes audiences from smaller towns and cities opt for the online route.

For books, I usually prefer shopping from physical stores, but so far, only Flipkart has managed to supply me with Manga, Japanese literature, that's otherwise difficult to find. Plus, it's often cheaper to buy online. I'm definitely going to be a regular on their site, enthuses Riddhima Toshniwal, a content writer from Raipur.

The Devil lies in the detail

Flipkart began operations on the consignment model goods were procured from suppliers on demand, based on the orders received through the website. However, eventually, the books-to-electronics e-shop adopted the warehouse model. Nearly 60 to 70 per cent of deliveries take place through our own network, states Sachin, who thinks such a model provides for better control over the entire logistics management piece.

On the operational front, issues faced by the company pertain to delay in deliveries, or faulty products. As a customer-centric organization, none of these issues can remain unresolved for long.
Hence, Flipkart stresses on customer service it aligns with the firm's philosophy of making better our service promise'. Binny pitches in saying, Bigger investments in our supply chain and technology will enable larger warehouses and increased process automation. Our bigger objective is to redefine the way India shops.

Consistent customer service is the hallmark of Flipkart. Similarly, the trust-building exercise is accorded a lot of importance. Flipkart connects with customers in real-time, through Face book and Twitter.

We've trained our customer service executives to take spot decisions. Addressing customer concerns and owning up to our mistakes reassure customers we have their best interests at heart. In our business, delivery drives delight, Sachin articulates.

Kart apulting into the future :

Positive word-of-mouth gives Flipkart an edge on the customer side of the business.
Their recent acquisition of Letsbuy.com will result in a faster expansion rate. Extending services like cash-on-delivery and credit card payment at doorstep were introduced to provide ample choice and comfort to customers.

Now, the attempt is to widen Flipkart's reach in the digital domain through Flyte, the portal's recently launched paid music download service.

Uncovering India's online avatar is a fascinating process. Innovation is the only key to success.
Companies that can successfully engage customers through novel ideas, quality products and seamless services will flourish.

Summing up the Flipkart experience, Abhishek Asthana, a marketing student from Pune, has dedicated an ode to the portal. He tweaks the famous MasterCard campaign to sound something like There are some things you can't buy online For everything else, there's Flipkart!