I presented this at Christ University Bangalore (last month) to MBA 2nd year students.

1. Trends in E-business
Class of 2012 MBA @ Christ University
Raghavendra P Hunasgi © Raghav

2. Thanks for Viewing!
This presentation was originally designed in June 2012(for a lecture at
Christ University). As we all know , the internet moves at an alarming
pace. I hope to update this (regularly), but until then, please note that
this information may be a little dated (some of the facts and figures
used are from FY 2011-12). However, the heart of the story will
remain relevant for years to come.
You can find me on:
Facebook: https://www.facebook.com/pranesh.raghavendra
LinkedIn: http://in.linkedin.com/in/hraghavendra
Blog: http://nimeeihg.blogspot.com/
Twitter: raghav0711
Gtalk: pranesh.Raghvendra@gmail.com
© Raghavendra Hunasgi

3. Content
1 Introduction
E-tailing
• Overview
• Business models
2 • Advantages & disadvantages
• Operations excellence at Amazon
• Example (e-tailing giant Amazon.com)
3 Case studies
4 Q&A
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9. E-tailing

10. Types of business models
Bricks and Mortars business:
Pure play E-tailers: The
These are businesses with actual
businesses that sell pre-
business locations and store
dominantly online Eg: FlipKart
fronts.
Multi channel retailers:
Businesses that sell both
via traditional channels and
online Eg: Bigbazzar
(futurebazzar.com)

11. How does e-
tailing work?
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13. What is so unique
about e-tailing
(e-commerce)?
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15. How does e-tailing in India
look like?
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17. Advantages
of e-tailing
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19. Disadvantages of e-tailing
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21. An example of an Indian e-tailing giant:
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22. I am sure all of us have used or atleast heard about
“Flipkart.com”
Few facts about Flipkart.com
• Founded by Sachin Bansal and Binny Bansal(not related), went live in 2007
• Both graduates from IIT Delhi and formerly employed @ Amazon
• They broke even in March 2010 and claims to have 100% growth QoQ since
its incorporation
• Today they have close to 12 million book titles, 11 categories, 2.3 million
registered users and close to 35000 items shipped each day
• Mission: providing a delightful customer experince
• Vision: to become Amazon of India
• Objective: Making books accessible to anyone who has internet access in
India
• Tagline “We do not sell used books”
• Only Indian e-com company with pure word of mouth MKTG – MKTG team
started in 2011
• Team objective: Customer first motto
• Employees over 3200 people in India
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23. Operational excellence @ FlipKart.com
How do you handle the
operations of a company
that has experienced 2
million unit sales and 4
million unique visitors per
month with sales growing
at 25% per month, eyeing a
$50 million run rate?
How does Flipkart manage the inventory, Supply chain,
client fulfillment, payment options, employee engagement,
innovation……?????
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24. Inventory management..
Flipkart doesn’t believe in getting the product once the order is placed. The
products are all there in the inventory. When you place an order online the CRM
system sends the request to the inventory store and the team ships it within 2hrs
of receiving the request.
Strictly abide by “never promise something that u don't have” rule.
The ANS (Alerts and Notification) system of their inventory management software
keeps a close on fast moving, slow moving and dead (demand cycle) to notify
about the stock.
Unique strategy:
• Warehouses near airports.
• Local warehouses across 8 cities
• A part of customer support team based out of warehouse’s
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25. Payment options…
Best in class and very customer friendly
Tie-up with all the major banks and credit card providers in India
Pre-paid (wallet)
Cash-on-delivery
Net banking
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26. Delivery..
• Flipkart seen delivering through their own delivery boys in Bangalore and at
times within 12hrs from order.
• Unique packaging of the products
Order lifecycle
• Tamper proof, weather proof, breakage proof
• Tracking ID management
• Trace and track emails to the customers
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27. Order lifecycle management @
Flipkart.com
• Get the item
 Procure from Supplier (Just-in-time) (Supplier selection)
• Keep Inventory (Inventory Prediction, Planning)
• Clean & Check for sanity
 Pages missing, MRP printed lesser than told to you
• Pack the item
 Tamper proof, weather proof, breakage proof
• Select courier & hand-over
 Courier performances vary across regions a LOT
• Get tracking id & communicate to customer
 Follow-up for timely delivery
• Take care of returns (faulty product/user changes their
mind)
• Minimize returns
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28. Order lifecycle management @
Competition and challenges
Flipkart.com
• Attract users to the site
 Family, Friends, SEO, SEM,WoM, Brand Building
• Provide selection
• Make it easy to Find & Discover products
 Provide details to evaluate a product
 Description, Specifications, UGC
 Price well
 Have to be competitive to the most obvious options
 Provide convenient payment options
 Online, COD
 Confirm payment
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29. • No glamour – this is dhanda and very
traditional at that.
• Your competition is on SP road, avenue road
and Chandni Chowk.
Dealing with suppliers:
> Signing agreements with suppliers
> getting them to share data feeds
> getting them to fulfill your orders
• Dealing with Payment Gateways
• Setting up & operating large warehouses
• Dealing with Couriers
• People may not be as forthright & honest
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30. Flipkart.com what next???
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31. • Funding from VC’s - Accel India and Tiger Global Management (US$10 million)
• Acquisitions:
• 2010: “We Read”, a social book discovery tool. The stated goal was to give Flipkart a
social recommendation platform for buyers to make informed decisions based on
recommendations from people within their social network.
• 2011: Mime360, a digital content platform company.
• 2011: Acquired the rights to Chakpak’s digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a
Bollywood news site that offers updates, news, photos and videos.
• Prepaid Wallet feature to its e-commerce platform
• To be the first billion dollar Internet company from India(going by 2015 estimates )is by
far the leading online store in the nation.
• Now that Amazon is reportedly entering India in early 2012, this news becomes even more
significant, considering that Amazon has previously, and unsuccessfully, tried acquiring
the company, with Flipkart demanding a very high buyout price.
• Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150
million to $200 million in Flipkart, according to sources.
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32. An example of e-tailing giant:
Amazon.com
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46. Operations excellence at
Amazon.com
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47. End-to-end operations of Amazon
fulfillment center
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48. What is next at
Amazon.com?
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51. Case Study
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57. Search is FREE…
Blogger is FREE…
G+ is FREE..
Picasa is FREE…
How does Google
Survive or make Money?
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59. Painting the bright future.
Do you know what is Google Worth today?
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61. Questions?
Photo: http://www.flickr.com/photos/oberazzi/318947873/ © Raghav
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62. Thank You