E-COMMERCE IN INDIA
The e-commerce has changed the companies worn out India. The Indian e-commerce
market is predicted to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of
2017. The expansion of e-commerce industry has been activated by increasing internet
and Smartphone usage. the continued digital transformation within the country is
predicted to extend India’s total internet user base to 829 million by 2021 from 636.73
million in 2019. India’s E-commerce revenue is predicted to leap from US$ 39 billion
in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 per cent, the
best within the world. The e-commerce industry been directly impacting the micro,
small & medium enterprises (MSME) in India by providing financing, technology and
training and incorporates a favourable cascading effect on other industries. The Indian
e-commerce industry has been on an upward growth trajectory and is predicted to
surpass the US to become the second largest e-commerce market within the world by
2034.
Some of the key developments within the Indian e-commerce sector are as follows:
Reliance to take a position Rs 20, 0000 crore (US$ 2.86 billion) in its telecom
business to expand its broadband and E-commerce presence and to supply 5G
services.
In September 2019, PhonePe launched super-app platform 'Switch’ to produce a
1 stop solution for purchasers integrating several other merchants’ apps.
Flipkart, after getting acquired by Walmart for US$ 16 billion, is predicted to
launch more offline retail stores in India to market private labels in
segments like fashion and electronics. In September 2018, Flipkart acquired
Israel based analytics start-up Upstream Commerce that may help the firm to
cost and position its products in an efficient way.
Paytm has launched its bank - Paytm Payment Bank. Paytm bank is India's first
bank with zero charges on online transactions, no minimum balance requirement
and free virtual positive identification.
Google and Tata Trust have collaborated for the project ‘Internet Saathi’ to
enhance internet penetration among rural women in India.
FLIPKART
Flipkart is an Indian e-commerce company supported Bangalore founded by two
IITians sachin bansal and binny bansal in 2007. The Bansals spent ₹400,000 on
developing the positioning. Flipkart later raised funding from working
capital funds Accel India. At its drawing board, Flipkart basically focused on
book sales but afterward they expanded their business and included consumer
electronics, fashion, home essentials, groceries and lifestyle products. Flipkart
held a 39.5% market share of India's e-commerce industry. Flipkart also
owns PhonePe, a mobile payments service supported the Unified Payments
Interface (UPI).
Unique pricing strategies of Flipkart:
Flipkart pricing strategy is to become leader in e commerce and wish to penetrate
maximum no across India. they're offering maximum discount to all or
any customers.
Flipkart has unique pricing strategies for growing their sales.
“TIE UP” Flipkart works on Tie up and Exclusive Brand’s launch with well
established brands and also the new ones. These ends up in a good strategy for
both (Flipkart and Sellers). Exclusive Brand launch has worked okay for Flipkart
and Sellers/Brand Owners within the past.
Discount Section, Flipkart directly cannot give discounts on products in order
that they determine with the big sellers to offer a limited but variable discount
percentage on the products. As percentage of discount increases, the sales
percentage also does get up for the marketplace, under some cases Flipkart also
provides discounts in their commission to assist sellers.
Eventually it’s the “Sellers” who sell on Flipkart marketplace. Sellers do have
their own strategy for the marketplace. They continue changing it time to
time supported competitive environment. A right strategy can help sellers
increase their Sales further as Margins.
The pricing strategies are done to retain the purchasers and to grab more and
more customers towards our product and services as being a web firm. the
key common role utilized by Flipkart is
Membership cards and premium facilities.
Providing sponsorship.
Discount and offers to draw in customers.
Penetration - the method of accelerating the market share of an existing
product or promoting a replacement product through
strategies like bundling, advertising, lower prices, or discounts.
As of March 2019, Flipkart launched its internal fund of about US$ 60-100
million to take a position from early stage to seed innovations associated with e-
commerce industry.
Done by
Lakshmi shukla. S
I MBA
