Big Billion Day- Winning or losing
2Dr. Roopam Kothari
which started flourishing in India nearly ten years back has come a long way in
a very short span of time in India. It is today one of the fastest growing
sector of the Indian digital economy. Online shopping or online retailing – an
application of e commerce, has become a popular trend in India from last few
years. Due to mordernization, digitialisation and globalization Indian population
have started enjoying the benefits of online shopping like convenience in
shopping, 24 hrs shopping, free delivery, huge discounts, etc, at their
doorstep. Some of
popular online shopping websites in India – Amazon.com, Flipkart.com, Snapdeal.com, Paytm.com, Ebay.in, Jabong.com, Myntra.com, Shopclues.com, Pepperfry, Homeshop18.com, yebhi.com.
Flipkart, one among the top leader in e-commerce business in India started its
operation in 2007 with selling online books and presently Flipkart
is offering product categories like clothing, accessories, footwear,
electronics, home decor and much more. On 6 Oct 2014 Flipkart
introduced a new strategy of its own – “the big billion day sale”. It was a one
day sale which is considered to be the biggest sale among all the sale offered
till now by e-tailors. Many companies and brands are offering sales and
discount for their customers in Indian online and offline market. Promoting
sales by providing innovative offers to customers is good but at the same time
a million dollar question also arises that “What are the boundaries or how big
should be the innovation?”.
Keywords :ordernization, Digitialisation, Globalization.
Scholar, Department of Management Studies,The IIS University,Jaipur
Professor, Department of Management Studies,
Billion Day- Winning or losing strategy ?
, 2Dr. Roopam Kothari
Industry : E-commerce / online retail industry
understand the scenario of Indian e-commerce industry.
analyze the online shopping trends in India.
discuss the Flipkart’s inception, growth and present scenario.
understand the sales promotion strategy used by online vendors with special
reference to Flipkart,s strategy.
critically evaluate the challenges posed by BBD strategy.
Over the last two decades, rising
internet and mobile phone penetration has changed the way people communicate
and do business. industry,
which started flourishing in India nearly ten years has come a long way undoubtedly.
Presently e commerce industry is, one of the fastest growing sector of the
Indian digital economy. The E-Commerce industry in the India which grew by 33% last year (2013) and
saw goods and services worth $3.5 billion exchanging hands is poised for bigger
growth and touch new highs. Research firm Gartner has predicted a 70% growth
rate for this sector and
expects $6 billion worth of business in 2015.
According to report generated by Technopak,
e-tailing has the potential to grow more than hundred-fold in the next 9 years,
to reach $76 billion by 2021. This growth will be driven by the country's
growing Internet-habituated consumer base, which will consist of 180 million
broadband consumers by 2020, and a rising class of Internet users through
mobiles. As per world internetlivestats report India
presently is considered as 3rd largest nation of internet users in
As is depicted from
above E –Commerce has become a buzz word in today’s time. 'Electronic
commerce, commonly known as E-commerce or eCommerce, is the
process of exchanging products or services with customers using Internet. According
to Wikipedia E-Commerce businesses usually deploy some or all of the following
Etail or virtual storefront on
websites with online catalogs, sometimes gathered into a "virtual
shopping of products & services.
of demographic data through social media or social networking sites.
electronic data interchange, the business-to-business model of e-commerce.
prospective and established customers by e-mail or fax .
buying and selling.
secure business transactions
According to Praveen
India is one of the fastest-growing e-Commerce markets in Asia/Pacific. “India
represents a $3.5 billion market, growing at approximately 60-70 percent every
year. It represents less than 4 percent of the total retail market. B2C E-Commerce
leads the e commerce market in India”. The value of Indian
e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6
billion in 2013. According to Forrester
(2012), the e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 2012–16.
In 2013, the e-retail
market was worth US$ 2.3 billion. About 70% of India's e-commerce market is
India has close to 10 million online shoppers and is growing at an estimated
30%CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are
the biggest categories in terms of sales. Industry studies by
IAMA also indicate that online travel dominates the e-commerce industry with
an estimated 70% of the market share. However, e-retail in both its forms;
online retail and market place, has become a rapidly growing sector,
increasing its share from 10% in 2009 to an estimated 18% in 2013. India's
retail market is estimated at $470 billion in 2011 and is expected to
grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. As per
"India Goes Digital",
a report by Avendus Capital, Indian e-tailing industry is estimated at Rs 3,600
crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8
billion) in 2015.
Online shopping or e-shopping is
a form of electronic commerce which allows consumers to
directly buy goods or services from a seller over the Internet using
browser. It is also referred to as :, e-shop, e-store, e-web-store , web-shop,
web-store, online store, Internet shop, online storefront and virtual store.
shopping has become a popular trend in India. Due to modernization,
digitalization and globalization Indian customers have started enjoying the
benefits of online shopping like convenience in shopping, 24 hrs shopping, free
delivery, huge discounts, etc, at their doorstep. E-Commerce in India started
in 2004 with the starting of eBay’s operations by acquiring Baazee.com, which
was India’s largest online auction portal. This was followed by starting of
Flipkart in 2007 as an online book retailer. This is followed by starting of
Myntra.com an online portal to customize goodies . With time these e-commerce
portals started winning the trust and confidence of Indian population and
people gradually started shopping online. In 2010, Snapdeal an online platform
started providing daily deals. Snapdeal is one of the first online marketplaces
in India. In a very short span of time the concept of
e-commerce become a very familiar concept among Indian population.
major drivers of Indian e commerce growth are-:
standards of living
and a increasing mobile middle class with high disposable incomes
of much wider product range (including long
tail and Direct
Imports) compared to what is available at
brick and mortar retailers
lifestyles, urban traffic congestion and lack of time for offline shopping
Lower prices of products than offline retail driven by disintermediation
and reduced inventory and real estate costs
usage of online classified sites like OLX.com , Quikr.com for buying and
selling second-hand goods.
of the online marketplace model with sites like amazon.com,Jabong.com,
yebhi.com,Snapdeal, and Infibeam.
usage of plastic money in form of credit and debit cards .
young population who spend significant time on the internet , Social networking
sites likes Facebook, twitter.
in traditional means of shopping
pillars for rapid growth of online shopping are faster delivery, Cash on
Delivery facility, discounted rates, access to branded products and cash-back
guarantee on faulty goods .
Online shopping can be considered as a
sub-category of e-commerce. In the year 2012 the online shopping revenue of
India was $14 billion with 19.2 million online shopping users. The online
shopping revenue figure of 2012 is just double of the year 2011($6.3 billion).
This figure is likely to reach $38 million by 2015, at CAGR of 39.5 percent.
The expected growth rate of online shopping is 39.5 percent from 2012 to 2015
in India. Online shopping revenue in India is estimated to touch $38 million by
estimate 2014, top 3 E-Commerce friendly states in India are Delhi, Karnataka, Maharashtra
and top 10 cities are Delhi ,Banglore, Mumbai, Pune, Hyderabad, Chennai, Kolkata,
Ahmadabad, Jaipur and Panaji. Some of popular
online shopping websites in India are Amazon.com,
Flipkart.com, Snapdeal.com, Paytm.com, Ebay.in,Jabong.com, Myntra.com,Shopclues.com, Pepperfry, Homeshop18.com,yebhi,com. Amazon
is a global e commerce company and is one among the largest online retailers in
India. They offers items ranging from mobile, electronics, appliances, home
entertainment, home décor, consumer durables and cameras. Flipkat is an Indian
e-commerce company which was started with online sales of books in 2007 and
later it entered to consumer electronic goods and various other ranges of
products. Snapdeal is another Indian online company, started in 2010. This online
retailer offers best deals for almost all kinds of products ranging from appliances,
kitchen, cameras, mobiles, laptops, online, gifts and more. Yebhi.com is an
Indian Online shopping E-commerce portal started in 2009.Today most of the e
commerce company whether global or Indian offers almost all type of products
ranging from electronic goods to kids toys. Online shopping in
India is growing at a very fast clip. There is an intense competition in
ecommerce space among various players but among all these players the top three
players are - Snapdeal ,Flipkart and Amazon .
Flipkart, one among the top leader in
e-commerce business started its operation in 2007 with selling online books and
presently Flipkart is offering sales categories for various
different stuffs like clothing, accessories, footwear, electronics, home decor
and much more. Flipkart is one such India’s leading e-tailor,
which provides services for people of all age groups.
Flipkart has achieved a great success in
a very short span of time . If we look at statistical data of
flipkart’s success, it had a turnover of 11.6 crores in 2009-10, which raised
to 50 crores in 2010-11. A large increase occurred in 2011-12 and it earned revenue
of 500 crores in the year 2012-13, 10 times of previous year. Flipkart had 4800
employees in 2012 which used to serve 50,000 orders a day. Its daily sales were
about 2.5 crores. The reasons behind such success of Flipkart are strong
brand value, own logistics arm, own online payment gateway solution and own
marketplace model. In order to overcome the hurdle of
resistance for online transaction Flipkart for the first introduced the cash on
delivery system of payment for online shoppers. Flipkart has also introduced 30
days cash back guarantee for convience of its customers. Flipkart had leased
warehouses, so it could meet 80% of order directly from warehouse, which makes
deliveries faster. In order to compete others Flipkart like other online
shopping websites offer free home delivery. In one of the major strategic move
Flipkart acquired letsbuy.com. It is also a big reason for Flipkart’s success
as letsbuy.com firm was expertise in selling consumer electronics and
computers, and flipkart is known for superior technology and supply chain
On 6 Oct 2014 Flipkart introduced a new strategy
of its own – “ the big billion day sale”. It was a single day sale which is
considered to be the biggest sale among all the sale offered till now by
e-tailors. It was consist of deals of hour, flash sales, lucky draws each hours
along with huge discount offers and coupons. Big billion day’s exclusive offers
included –Multiple items at price of Re.1,Upto 30% off on
smartphones, Laptops starting from Rs.15,000,here were offers like - fashion
& perfumes at 50% off, toys at 50% off, discounts on mobile brands like
Xiaomi, Motorola, Asus , Huawei Honor 6, ALCATEL ONETOUCH Fire C and Lenovo
Vibe Z2.It also offered Xiaomi Mi 3 for one last time , 150000
sets of Redmi 1S and 1 lakh sets of Asus Zenphone,Flat Rs.1500 OFF on Moto E,
Exchange Offer on Moto G (2nd Gen ),Flat Rs.1000 OFF on HP 10 Tab,Upto Rs.2000
Discount on Digiflip Pro Tablets,Flat Rs.7000 discount on Nexus 7 tablet .
Business wise on big billion day
Flipkart claimed to have a business of 600 crore in only 10 hours. In order to
convert BBD into practicality, Flipkart had done extensive preparation which
are as follows-
and launched before BBD such online ads which connects directly to Indian
have redesigned the website and entire database.
have establish tie ups with various banks Axis, HDFC, ICICI, Citibank, etc to
offer additional cash back to their customers.
their ground staff to 10,000 from 5000 in july.
their delivery system to 40 more cities.
people to download Flipkart’s mobile application.
all preparations, results of BBD were just opposite the expectation .After the
completion of BBD sale many customers were disappointed for not getting benefit
of BBD sale and many criticized Flipkart and its entire system. Towards the
worst end even the CEO of the company have to apologized to the customers for
not meeting their expectation.
Feedback on BBD sale strategy
feedback are collected from Facebook,Twitter and various newspaper articles.
#BigBillionDay trending on
micro-blogging website Twitter, it is abuzz with several users sharing
grievances. meanwhile, flipkart seems to be running slower than snail. Giving
tough comp. to IRCTC.12:00
PM - 6 Oct 2014”.
the intelligence of the customers is perhaps the worst sin any company can
several attempts to make purchases on Flipkart threw up sold-out messages or
server errors , even though the website’s server has not crashed. Jokes about
Flipkart’s server error have also flooded social media.
to popular belief, #BigBillionDay sale by Flipkart is not to raise awareness
about http error codes”.
to offer 10% discount on 404 (error for ‘page not found’) page. They are now
calling it 363 page”..
sale iz liek mah circar. advertized so muhc fur nuthing lulz”.
“Sold out' is to
Flipkart what "Please try again later" is to IRCTC. #BigBillionDay”.
log Flipkart se bakra bangaya bahar sambhaalkrar chalna nehi toh Bakra Eid main
kat jaaoge #FlipkartFail”.
to Flipkart that Today I managed to save INR 45,000 and ended up buying it for
much cheaper price in a local store”.
most amazon thing about flipkart is that before you could, somebody else snaps the
the motive /rationale of company behind the launch of big billion day sale.
to you what good as well as bad big billion day sale has brought for company?
are the aspects that company was required to considered before the launch of
big billion day sale?
are the challenges that BBD sale has posed for the company and how it can be
coped up now?
Awards and Recognition of
won “Business to Consumer (B2C) Marketplace of the Year” award at first
eTailing India e-commerce industry awards held in march 2014 in Mumbai.
secured second position in the List of Cheapest Mobile Store 2013, compiled by
Indian e-commerce observer Zoutons.com.
of Flipkart Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from
Economic Times, leading Indian Economic Daily
was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards
got Nominated for IndiaMART Leaders of Tomorrow Awards 2011.
of global B2C E-Commerce sales in Asia Pacific from 2013 to 2018
Source : www.statista.com
Flipkart Vs Amazon Vs Snapdeal: Revenues & Losses
Scholar, Department of Management Studies , The IIS University,Jaipur
Professor, Department of Management Studies,