E-Shopping Insights at Flipkart
E-Shopping Insights at Flipkart
CHAPTER-1
INTRODUCTION
INTRODUCTION
Generally Speaking the trend of e-commerce has been increased rapidly in the recent years
with the development of internet and due to the easy accessibility of internet usage. Easy
access to internet has driven consumers to shop online. In fact, according to the University of
California, Los Angeles communication policy (2001), online shopping is third most popular
activity on the internet after email using and web browsing. Globally more than 627 million
people have done online shopping so far. World’s biggest online shoppers include Germans
and British. Books, airline tickets/reservations, clothing/shoes videos/games and other
electronic products are the most popular items purchased on the internet. (ACNielsen Report
on Global Consumer Attitudes towards Online Shopping, 2007).
Through electronic marketing and internet communication, business firms are coordinating
different marketing activities such as market research, product development, inform
customers about product features, promotion, customer services, customer feedback and so
on. Online shopping is used as a medium for communication and electronic commerce, it is
to increase or improve in value,quality and attractiveness of delivering customer benefits and
better satisfaction. that is why online shopping is more convent and day by day increasing its
popularity.
Not only benefits but also risk is associated with online shopping. Generally speaking internet
users avert online shopping because of credit-card fraud, lack of privacy, non-delivery risk,
lack of guarantee of quality of goods and services. Concerned authorities are devising
policies to minimize the risk involved in e-business.
In Liao and Cheung (2000) words:Fraud- free electronic shopping” was introduced by UK in
the early 1995 and after two years Europe and Singapore introduced secured electronic
transaction (SET).
On the other hand E- commerce has grown very fast because of many advantages associated
with buying on internet because of lower transaction and search cost as compared to other
types of shopping. Through online shopping consumers can buy faster, more alternatives and
can order product and services with comparative lowest price. (Cuneyt and Gautam 2004).
Therefore Marketers have carefully analyzed the consumers’ attitude and behaviour towards
the online shopping and spend billions of dollars to facilitate all the demographics of online
shoppers.
Consumers attitude towards online shopping refers to their psychological state in terms of
making purchases over the Internet. Online buying behaviour process refers to the products
purchased online. The process of online buying behaviour consists of five steps and it is
similar to traditional shopping behaviour (Liang and Lai 2000). For instance, consumer
recognize the need for buying some product (book), they refers to the internet to buy online
and start to search for the information and look for all the alternatives and finally make a
purchase which best fits to their needs. Before making final purchase consumers are
bombarded by several factors which limits or influence consumers for the final decision.
The main theme of the study is to know the factors that influence the consumers’ attitudes
and behaviours towards online shopping. Researchers will also focus on how consumers form
such attitudes with the help of models and who are truly the online shoppers. According to
the online survey within few American students, Case, Burns, and Dick, (2001, p.873)
concluded that “Internet knowledge, income, and education level are especially powerful
predictors of Internet purchases among university Students”.
Our problem area that is Consumers attitude towards online shopping will determine the
attractive factors that influence consumers to shop online and those factors will help
marketers to formulate their strategies towards online marketing respectively. As our area of
research will be on Sweden and specifically on Gotland so our research thesis will not only
be helpful for the marketers in general but specifically will be helpful for the marketers in
Sweden. Researchers will precede this work with primary data which will help them in
covering the subject area in more diversified way.
“An increasing number and variety of firms and organizations are exploiting and creating.
Business opportunities on the Internet”, Liao and Cheung (2000:299). Above mention
statistics indicate the rapid growth in the field of virtual shopping. With this emerging field of
shopping the interest of marketers is also increasing in studying what actually motivates
consumers to shop online. Fierce competitions among online sellers have forced them to gain
the competitive edge in the field of virtual shopping.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from business-to-business
commerce, the practitioners of business-to-consumer commerce should not lose confidence.
It has been more than a decade since business-to-consumer E-commerce first evolved.
Scholars and practitioners of electronic commerce constantly strive to gain an improved
insight into consumer behaviour in cyberspace. Along with the development of E-retailing,
researchers continue to explain E-consumers’ behaviour from different perspectives. Many of
their studies have posited new emergent factors or assumptions that are based on the
traditional models of consumer behaviour, and then examine their validity in the Internet
context.
The strategy of mobile app only purchase would put new start – ups at great risks. So unless
and until a company is established and is sure that their customers would stay even they take
this move, should they do it. But it is always said that a company should have multiple ways
of marketing their products and this actually shows a major improvement and rise in their
sale. This approach works only for the bigger developers as this assumes that almost 80–90%
of users have your app installed on their Android phones at all times. India is primarily an
Android market and hence this may not seem like a bad bet, but I personally do not think
Flipkart or Myntra would have more than 25–30mn monthly active Android devices installed.
Out of a 80+mn Android users, this still leaves around 60% of users in market not being able
to find any results from Flipkart/Myntra when they do a Google search on their phones.
Social media integration helps in maintaining all your social media accounts like Facebook,
LinkedIn, Twitter, Instagram and many more under one platform. It allows you to share one
post on multiple platforms. It boosts the marketing strategies and saves cost. It’s considered
to be one of the most time-saving and cost-effective technology.
Travel aggregator Goibibo and e-commerce platform Snapdeal, among others, also have their
own web apps and all new features are launched almost in sync with the mobile app.
CHAPTER-2
RESEARCH DESIGN
The objective of this study is to synthesize the representative existing literature on consumer
online shopping attitudes and behaviour based on an analytical literature review. In doing so,
this study attempts to provide a comprehensive picture of the status of this subfield and point
out limitations and areas for future research.
The purpose of this research study is to investigate online consumer behaviour, which in turn
provides E-marketers with a constructional framework for fine-tuning their E-businesses’
strategies. The specific objectives of this research are:
DATA COLLECTION
Research Design
Sample Design
Duration: 3 weeks
Instrument: Questionnaire
Primary data collected with the help of survey conducted using a questionnaire.
Primary research consists of a collection of original primary data collected by the researcher.
It is often undertaken after the researcher has gained some insight into the issue by reviewing
secondary research or by analyzing previously collected primary data. It can be accomplished
through various methods, including questionnaires and telephone interviews in market
research, or experiments and direct observations in the physical sciences, amongst others.
Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organizational records and data collected
through qualitative methodologies or qualitative research. Primary data, by contrast, are
collected by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or develop.
SAMPLING
SAMPLE SIZE
For suing thisresearch we selected a total of 20 students and conducted survey over
them.
SAMPLING METHODS
Geographical Scope:This implies the area or region from where we are going to
draw our sample i.e. area where we going to conduct our research.
The study was constrained to the NCR region. This region was chosen because of the
convenience of location.
Time Scope: This implies the time we have at our disposal to conduct our
study. The time limit specified is approximately 5 months.
Secondary data time: Secondary data has been collected from various
sources. They are: -
Articles are collected from newspapers like Economics Times, Times of India.
The articles collected are latest so that they are relevant.
Relevant articles from Journals like Business Today, Business India, Business
World, and India Today. The articles collected are from journals published after
2000 because of paucity of resources. These articles were chosen as they were the
most relevant for the study being conducted.
The sample size selected might not depict a true picture of the population.
The extent of the project was restricted to NCR only, which might not represent a true
picture
customers may give biased answers which may lead to incorrect results
Survey was mostly based on human perceptions related to various factors, which may
lead to a subjective result.
CHAPTER SCHEME
Chaptrr-1
INTRODUCTION
This chapter will introduce the topic of the study and its importance. It gives a bird’s eye
view about theTopic of study, it also provides a background for the study.
Chapter-2
RESEARCH DESIGN
It is overall arrangement and collection of data.
Chapter-3
COMPANY PROFILE
This chapter will deal with the study of the history of the company, the detailed study of the
company overview of the company,etc.
Chapter-4
CHAPTER-3
COMPANY PROFILE
COMPANY PROFILE
History of Flipkart
It was founded in 2007 by sachin bansal and binny bansal. Both alumni of the Indian institute
of technology Delhi. They worked for [Link] and left to create their new company
incorporated in October 2007, as flipkart online service [Link]. The first product they sold
was the book “leaving Microsoft change the world to customer from Hyderabad”.
Flipkart now employees more than 33,000 people. Flipkart allows payment methods such as
cash on delivery, credit on debit card transaction, net banking, e-gift voucher and card swipe
on delivery. After failure of its 2014 big billion sale, it recently completed the second edition
of big billion sale hold between October 13 and 17 where it is reported that they saw a
business turnover of 300million in gross merchandise volume.
In April 2017, eBay announced that it would sell its Indian subsidiary [Link] to Flipkart and
make a US$500 million cash investment in the company. eBay promoted that the partnership
would eventually allow Flipkart to access eBay's network of international vendors, and vice
versa, but these plans never actually came to fruition. In July 2017, Flipkart made an offer to
acquire its main domestic competitor, Snapdeal, for around US$700–800 million. It was
rejected by the company, which was seeking at least US$1 billion.
Flipkart held a 51% share of all Indian smartphone shipments in 2017, overtaking Amazon
India (33%). Flipkart sold 1.3 million phones in 20 hours on 21 September alone for its Big
Billion Days promotion, doubling the number sold on the first day of the event in 2016
(where it sold a total of 2.5 million phones in five days).
In August 2019, Flipkart entered into a partnership with Authentic Brands to license and
distribute Nautica in India.
Flipkart has invested $4 million (about Rs 29 crore) in customer engagement and rewards
platform Easy Reward on Tuesday Nov 19 2019.
Acquisition by Walmart
On 4 May 2018, it was reported that the US retail chain Walmart had won a bidding war with
Amazon to acquire a majority stake in Flipkart for US$15 billion. On 9 May 2018, Walmart
officially announced its intent to acquire a 77% controlling stake in Flipkart for
US$16 billion, subject to regulatory [Link] the proposed purchase, Flipkart co-
founder Sachin Bansal left the company, while the remaining management now report
to Marc Lore, CEO of Walmart eCommerce US. Walmart president Doug McMillon cited the
"attractiveness" of the market, explaining that their purchase "is an opportunity to partner
with the company that is leading transformation of eCommerce in the market".Indian traders
protested against the deal, considering the deal a threat to domestic business.
In September 2015, sachin bansal and binny bansal entered forbs India rich list
debuting at the 86th position with a net worth of $1.3 billion each.
Co-founder of flipkart, sachin bansal got entrepreneur of the year award 2012-2013
from economic times, leading Indian economic daily.
[Link] was awarded Young Turk of the year at CNBC TV 18th Indian business
leader awards 2012(IBLA).
[Link] got nominated for India mart leaders of tomorrow awards 2011.
Flipkart
Description
Owner: Walmart (82%)
Headquarters: Bengaluru
Employees: 30,000 (2016)
Clothing
Footwear
Mobile and accessories
Computers
Watches, bags and wallets
Camera
Books
Home and kitchen appliances
Beauty and health care
Pens and Stationary
Games
TV, videos and audios
Toys
Music, movies and posters
Baby care
Sports and fitness, etc
INDUSTRIAL PROFILE
It is a fact that a great online shopping revolution is expected in India in the coming years.
There is a huge purchasing power of a youth population aged 18-40 in the urban area.
If we observe the growth of Indian online transactions (Info by: IAMAI), it is getting
doubled year by year. The usage of internet in India is only 4% of the total population. This is
also getting increased day by day as the costs of computers are decreasing and net penetration
is increasing. The cost of internet usage is also getting lower, with good competition among
the providers. Wi-Fi & Wilma is also getting tested in Bangalore and other cities in India.
This will increase the usage as it goes more on wireless internet.
Indians are proving every time that they can beat the world when it comes to figures of online
shopping. More and more Indians are going to online shopping and the frequency of India’s
online buying is crossing the overall global averages.
Access to Information
Middle-class population with spending power is growing. There are about 200
million of middle-class population good spending powers. These people have very
little time to spend for shopping. Many of them have started to depend on internet
The figures from IAMAI show that the internet users in India will grow to 200 million by
2010. Around 25% of regular shoppers in India are in the 18-25 age groups, and 46% are in
Worldwide e-commerce is only growing at the rate of 28%, since India being a
younger market, the growth of e-commerce is expected at 51% in the coming years.
In line with global trends finally India has also started shopping online these days. As
per the study by IAMAI online shopping in India has rose from $11million in 1999-
2000 to $522 million in 2008 and it is expected to rise above $700 million by end
March 2010.
Indians are also Shopaholics like other Asians. There is a strong booming young adult
SOWT ANALYSIS
S.W.O.T ANALYSIS OF THE ORGANISATION
Strengths: Weaknesses:
Strong Brand value Investor driven organization Or lack of
Own Logistics Arm e kart Independent board
Own Online payment gateway solution Secretive and Political Culture.
Pay zippy Excessive focus on expanding customer
Own Marketplace model base rather than pulling profits
Opportunities: Threats:
Online fashion and apparel business From competitors like Amazon, Snap
Providing logistics services to its deal, Infibeam, India plaza,
competitors. Homeshop18 etc.
Growth in online retail sector in India
CHAPTER-4
100
90
80
70
60
50
40
30 no of respondents
20 percentage
10
0
percentage
18 ar
s s no of respondents
lo
w ye ar ar
s l
be ye e ta
30 49
y to
1 8- 0- 50
3 e
ov
ab
Inference: From the above graph it is shown those 30% respondents are below 18, 26% are
18 and 30, 24% are 30-49, 20% above 50 years. It means the majority of people is below 18
years.
Educational no of
background respondent percentage
non-matriculate 4 8
Matriculate 11 22
Graduation 24 48
post graduated 11 22
Total 50 100
100
90
80
70
60
50
40
30 no of respondent
20 percentage
10
0
percentage
e
at e no of respondent
cul lat n
rt i cu tio te
d l
a rt i u a a ta
m a ad u to
n- m gr ad
no t gr
s
po
Inference:
From the above graph it is clear that 8% respondents are non-matriculate, 22% are
matriculate, 48% are graduation, and 22% are post graduated. It means the majority of people
are the people who are graduated i.e. 48%
Student 23 46
Others 7 14
Total 50 100
100
90
80
70
60
50
no of respondents
40 percentage
30
20
10
0
percentage
business
service no of respondents
student
others
total
Inference:
From the above graph it is clear that 18% respondents are businessman, 22% are service,
46% are student, and 14% are others than them. It means majority of respondents are
students.
no of
Gender respondents percentage
Male 14 28
Female 36 72
Total 50 100
100
90
80
70
60
no of respondents
50 percentage
40
30
20
10 percentage
0 no of respondents
male female total
Inference:
From the above graph it is clear that, 28% of the respondents are male and 72% people are
female. It means the majority goes to the female.
100
90
80
70
60
50
40 no of respondents
ts percentage
30
den
20 on
esp
10 r
of
0 no
l
oo 00 00 oo
o ta
5o 10
0
25
0
2 5 To
lo
w 0- 0- e
be
0 0 0 ov
50 10 ab
Inference:
From the above graph it is clear that, 18% of respondents are having income below 5000,
16% are having between 5000 to 10000, 34% are having between 10000 to 25000 and 32%
are having above 25000.
no of
Internet user respondents percentage
Yes 40 80
No 10 20
Total 50 100
100
90
80
70
60
no of respondents
50 percentage
40
30
20
10 percentage
0 no of respondents
yes no total
Inference:
From the above graph it is clear that, most of the people are using internet as 80% are user of
internet and rest 20% people are non user.
100
90
80
70
60
50
40 s
30 ent no of respondents
nd percentage
20 spo
r e
10 of
0 no
ar s s s l
ar ar ar ta
ye ye ye ye to
1 3 5 5
ha
n 1- 3- n
t ha
les
s et
or
m
Inference:
From the above graph 28% respondent are users who use internet for less than 1 year, 18%
are between 1-3 years, 34% are between 3-5 years and 20% are more than 5 years.
100%
90%
80%
70%
60%
percentage
50%
no of respondent
40%
30%
20%
10%
0%
yes no total
Inference:
From the above graph it is clear that 72% of the respondents are user of flipkart and 28% of
respondent aren’t user of flipkart.
interested on online
shopping no of respondent Percentage
yes 37 74
no 13 26
total 50 100
100
90
80
70
60
50 no of respondent
40 percentage
30
20
10
0 percentage
yes no of respondent
no
total
Inference:
From the above graph it is clear that 74% are interested on online shopping and rest 26%
people are not interested.
Products no of
bought respondents percentage
stationeries 6 12
cosmetics 17 34
Cloths 18 36
electronics 5 10
Others 4 8
Total 50 100
100
90
80
70
60
50
40 no of respondents
ts percentage
30
den
20 n
spo
10 re
of
0 no
s s s cs s l
rie tic th ni er ta
na e lc o o th to
tio co
sm ctr o
ts a ele
Inference:
From the above graph it is clear that 12% of respondent are interested to buy stationeries,
34% are using cosmetics, 36% are using for cloths, 10% are interested in electronics, and rest
8% are interested for specific things. It seems people are interested for cloths buying from
flipkart.
No of
shopping first time respondent percentage
6 month back 4 8
6 month-1 year 23 46
3-5 year 17 34
more than 5 years 6 12
Total 50 100
100
90
80
70
60
50
40
30 No of respondent
20 percentge
10
0
percentge
ck ar No of respondent
ba ye ar s
th -1 ye ar ta
l
on th 3-
5 ye To
m n 5
6 o an
m th
6 e
or
m
Inference:
From above graph it is clear that 8% people are using flipkart from 6 month, 46% people are
using it from 6months-1 year, 34% people 3-5 years, and 12% people are using it from more
than 5 years. It means people are using flipkart from 6 months to 1 year mostly.
100
90
80
70
60
50
40 ts
en No of respondents
30 d
20 on Percentage
esp
10 r
of
0 No
ce es es es l
ta
on tim tim tim to
4 5 6
2- n n
tha tha
e e
or or
m m
Inference:
From the above graph it is clear that 26% people used it for once, 28% used it for 2-4 times,
34% used it more than 5 times,12% people used for more than 6 times. it means most of the
people used it for more than 5 times.
dissatisfied 22 44
high dissatisfied 13 26
Total 50 100
100
90
80
70
60
50
40
30 No of respondents
20 Percentage
10
0
d No of respondents
sfie fie
d d
ti s fie fie
d
ta
l
sa sati
a tis s o
gh ss ati T
hi di ss
di
gh
hi
Inference:
From the above graph it is clear that 8% people are highly satisfied, 22% are satisfied, 44%
are dissatisfied, and 26% are highly dissatisfied. It means most of the people are dissatisfied
with the flipkart.
Others 23 46
Total 50 100
100
90
80
70
60
50 No of respondent
40 Percentage
30
20
10
0 Percentage
flipkart No of respondent
others
total
Inference:
From the above graph it is knowing that majority of the respondents are 52% that mean most
of the people are interested to do their shopping through flipkart rather 46% people are
interested to do it from other media.
worst 22 44
not that much 13 26
Total 50 100
100
90
80
70
60
50 No of respondents
Percentage
40
30
20
10
0
good very good worst not that much Total
Inference:
from above graph it clears that 8% people like flipkart,22% says it is very good, 44% people
says that it is worst, 26% says it is not that much good. The majority is 44% that mean people
are not happy with flipkart.
CHAPTER-6
FINDINGS:
The research reveals that most of the users of Flipkart are females in comparison to
males i.e. about 72% of females are interested in shopping through Flipkart.(table no
4)
From the study it is evident that 74% of the respondents are interested in shopping
through Flipkart .(table no 9)
It is found that 36% of people bought cloths item rather than other products from
flipkart.(table10)
From the study it is found that 34% of the respondents have Purchased more than 5
times from Flipkart.( table 12)
It explains that about 44% of the respondents are dissatisfied with the facilities of
Flipkart.( table 13)
From the study it is also found that majority of the respondents i.e. 54% like to buy
through Flipkart rather than others website.( table 14)
From the study it is known that about 44% of the respondents are agreeing that they
have worst experience while purchasing through Flipkart.( table15)
According to data analysed, 44% of the people prefer Flipkart for shopping cloths
rather than other items.(table 16)
SUGGESTIONS:
It would be better if Flipkart will improve the quality of other items so as to increase
costumer.
If Flipkart would provide different designs and variety of products, they can gain
more no of costumers and can easily satisfy them.
They should add some more design, it will be better for the company.
Company should look towards its quality product as it is more important to attract
customers.
They should add some offers with the products in every quarter so as to gain more and
more no. of costumers.
CONCLUSIONS:
The study conclude that majority of the customer prefer shopping through other shopping
websites rather than Flipkart because of lack in product variety, quality, which makes the
customers more comfortable with other shopping websites rather than Flipkart.
Consider the fact that there are many of middle class, less educated people
in india, Flipkart although has many of impact on middle class people but it should think
about less educated people as now only educated peoples are using the Flipkart.
So, Flipkart should increase the variety of products and they should go with
qualitative products so as to satisfy the people who are willing to purchase through Flipkart
despite of this Flipkart is providing less cost products which helps to serve middle as well as
other relevant people of the society.
QUESTIONARY
Name ………………………………………………..
Contact no…………………………………………
City……………………………………………………
Age :-
………. Below 18 years ………..18-30 years
Educational background
Occupation
Gender
……………Male ………….Female
Over all were you satisfied with your experience of shopping on flipkart?
……………….high satisfied …………………..satisfied
……………….dissatisfaction …………………..high dissatisfied
BIBLIOGRAPHY
[Link]
[Link]