Day by day people are innovating ideas and services to make human life easier and more comfortable to live. E-commerce businesses like online shopping stores have made a great impact in the market. The concept of online shopping and business has already developed into a much greater arena of knowledge and skill. There are hundreds and thousands of fake online services on the internet which showcase cheap prices and offers, people tend to get into this trap and often fell for scams. But there are also genuine online shopping platforms like Flipkart and Amazon which cater quality service and assistance.
Introduction
- The world of E-commerce has developed into a massive network of producer-consumer-based products.
- People can now shop whenever they want from their homes. Doorstep services have created a great impact on people and their habits of shopping, making their shopping easier and more comfortable.
- There are thousands of online shopping websites on the internet which has enabled the buyer to purchase any product across the globe.
- One of the most popular e-commerce websites is Flipkart shopping, a franchise owned by Walmart.
Flipkart Shopping
- The Indian e-commerce company was founded in 2007, by Sachin Bansal and Binny Bansal.
- Headquartered in Bangalore.
- Flipkart is owned by Walmart, a US-based retail chain that acquired its 77% of stake in 2018.
- Flipkart on the other hand operates both domestic and international markets via the website and mobile app.
- The Indian e-commerce company has made a huge impact on the global markets of online shopping, also competing for head-on with Amazon.
- Flipkart has gained a massive customer base in the Indian subcontinent with its services like delivery and customer care assistance.
- The company has hundreds of small-scale to large-scale brands and their products.
- The company has also acquired another e-commerce company for its apparel segment, Myntra.
- Myntra is Flipkart’s subsidiary that offers genuine clothing brands and footwear.
- Competing with Amazon’s subsidiary in India, Snapdeal.
How it all started?
- The company was founded in 2007 by Sachin and Binny Bansal, two former Amazon employees who quit their jobs to start a business.
- They followed a model that was kind of similar to Amazon, at first they started selling online books with country-wide shipping.
- Slowly and gradually they were receiving more than 100 orders a day.
- Flipkart with its newly established reign was now stretching its arms to the global market.
- They acquired many small startups and companies to form a bigger group.
- They started collaborating with celebrities and brands to increase their trust and influence.
- In 2014 Flipkart acquired myntra which now serves separately under Flipkart.
- The fashion online store is all about brands of clothing, footwear, accessories, etc.
- Flipkart also partnered with some of the popular mobile phone companies like Motorola and Xiaomi.
Flipkart and the big billion day sale
- Flipkart made its move by introducing the “big billion-day” sale, the online sale made a huge impact on both online and offline businesses.
- The sale presented branded products with discounts worth more than 50%.
- The sale starts during the Diwali season when people can buy any product with great discounts.
- The sale generated $100 million worth of revenue in 10 hours where mobile phones were largely bought.
- Flipkart had a 50% of share in all India mobile shipments, surpassing its rival Amazon.
- A big billion-day sale is currently advertised by one of the biggest celebrities in the nation, Amitabh Bachchan.
- The company has collaborated with many superstars and sports players.
Walmart acquire Flipkart
- The Indian online store’s future took a drastic turn when an American retail chain decided to purchase 77% of the shareholding.
- Walmart bought 77%ofFlipkart’ss shares, becoming the owner of it.
- As a result,t Sachin Bansal quit the job.
- The company was worth $20 billion.
- The company flourished under the leadership of Walmart and acquired many more contracts and brands.
- In 2021, they announced the acquisition of cleartrip, a travel and tour booking website.
- Making its business to every sector and field, the company has separate services for different demands.
- Whether it’s fashion, grocery, tours, and travel, medicine, mobile banking, online banking, etc. Flipkart has it all.
- Making its worth and value a whopping $37 billion.
Customer Base
- Flipkart in India is considered one of the best shopping sites with an easy interface and a variety of products.
- The company has products in the lowest to highest range.
- People all over the nation purchase products from Flipkart because of its delivery and customer service.
- Genuinely is the key to success and Flipkart knows it very well. The company offers the best quality products at affordable prices.
- Brands like Adidas, Puma, Nike, etc are all available with a variety of products for both men and women.
- Flipkart has its delivery services in every corner of the country, whether it’s a small village or even tribal farms.
- The company has return/refund policies which are far better than its competitors.
- Flipkart on the other hand looks after its customers by regularly circulating offers and midnight deals.
- In India, the company has overtaken the big billionaire’s e-commerce company Amazon.
Business Structure
- The company’s business structure is well laid in every field of work.
- The company has about 9 registered firms under it.
- Stretching its arms to transportation, medical products and medicines, financial services, b2b sales, daily groceries, tours, and travel, etc.
- Flipkart has
- Myntra, as its fashion segment
- Ekart, as its transportation and delivery agent
- Phone pe, as its online banking partner
- Cleartrip, as its travel booking firm
- Flipkart Pvt. Ltd is registered in Singapore, where its Indian entities are owned by it.
- Its logistics firm, Ekart does business with other players including some of its competitors.
- The company has majorly benefited from its fashion segment app “Myntra” which is listed among the top genuine clothing apps.
- Flipkart Grocery also made a huge move in the consumer sector, where it provides quality edible products at less prices in comparison to others.
- If you’re doing online transactions, you would’ve surely heard of an app called phone pe. The app is India’s most popular and trusted money transfer application that provides immediate transactions between users.
- Another one is cleartrip, an app designed to cater services related to tours and travels.
- The app is a well-trusted and optimized portal for making travel bookings like flight tickets, railway reservations, and other travel bookings.
- Overall the company is working in every sector of work and has successfully designed a business structure to make profits.
Funding Capital
- The company was founded with an initial investment of 4 Lakhs.
- In 2008 the company reported sales reaching $40 million, which gained the trust of investors and private firms.
- Flipkart received funding from several firms like Accel India and Iconiq capital which made their way to the upper playground of e-commerce.
- Flipkart’s sales grew year by year, from $40 million to $200 million and it went on.
- Not only rapid growth but the company faced a massive loss of $35 million in 2013.
- To get over the loss, Flipkart received funding from private equity investors and businessmen.
- Flipkart in 2022 is one of the most valuable companies that has cemented its reign in the online shopping industry.
Flipkart after Walmart
- The Indian e-commerce giant took a drastic lead after its acquisition from Walmart.
- The company currently values at $37 billion.
- Flipkart India is currently under the supervision of Kalyan Krishnamurthy as its CEO.
- Founding the company in 2007, the founders have already left the company.
- Revenue: $5.7 billion
- Worth: $37 billion
- Parent organization: Walmart USA
- CEO: Kalyan Krishnamurthy
Company’s Aim and Goal
- The brand looks for providing better customer service and transparency to its customers.
- They look forward to introducing various options for buying and selling products.
- They soon will be introducing business-oriented services to local and domestic vendors.
- They thrive to establish trust in the market with their products and services.
Conclusion
The Indian e-commerce company has successfully overtaken its competitors and rivals. They’ve established trust and dominance in the market, making their way to every household. The company has many subsidiaries that play a crucial role in the brand structure. Flipkart was founded by 2 Indian IIT students, who previously worked at Jeff Bezos’s Amazon. Quitting their jobs they founded the company with funding of 4 lakhs, which has now turned Into a value of $37 billion. Though the company has been acquired by a US-based retailer, the founders will not be forgotten.
