The History and Flipkart’s Winning Marketing Strategies : Largest eCommarce Company in India
Earlier History of Flipkart
Flipkart’s Journey – How Sachin and Binny Made It Big
Flipkart is a popular online shopping website in India, but did you know it was started by two friends, Sachin Bansal and Binny Bansal, who are not related despite having the same last name?
Meet Sachin and Binny:
- Sachin was born in 1981 in Chandigarh, India. He graduated from the Indian Institute of Technology (IIT), Delhi, in 2005 with a degree in Computer Engineering.
- Binny, on the other hand, was born in 1982, also in Chandigarh, and graduated from the same IIT in 2005 with a degree in Computer Engineering. That’s where their friendship began.
Their Early Careers:
- After graduating, Sachin worked at Techspan and later joined Amazon Web Services in 2006 as a Senior Software Engineer.
- Binny started his career at Sarnoff Corporation but, in 2007, he also joined Amazon Web Services.
The Birth of Flipkart:
- In 2007, Sachin and Binny had an idea to create a comparison search engine. They saw a big gap in online shopping in India and decided to leave their jobs at Amazon Web Services to start their own e-commerce website, Flipkart.
- They began with a small investment of Rs 400,000 and initially sold books because it was hard to find other products online in India back then.
- People were skeptical about buying from an online store, but Sachin became the CEO, and they persevered.
The Early Days:
- In 2008, Flipkart operated from a tiny two-room apartment in Bangalore, but it became popular among book lovers.
- Investors noticed their potential, and in 2009, Flipkart secured a $1 million investment from Accel Partners.
- By the end of that year, they had over 150 employees and three offices across India. They had also sold books worth Rs 40 million.
So, Sachin and Binny’s determination and vision turned Flipkart from a small online book store into one of India’s biggest e-commerce giants.
It all began with a simple idea and a lot of hard work!
How Flipkart Gained Trust and Made Big Moves
Back when online shopping wasn’t very popular in India, Flipkart managed to win people’s trust by offering round-the-clock customer support.
Trust-Building Steps:
- In 2010, an investment of $10 million from Tiger Global boosted Flipkart’s growth.
- They also acquired “WeRead,” a social book discovery service based in Bangalore.
- After gaining popularity in book sales, Flipkart expanded into selling mobile phones in the electronics category.
- However, their mobile phone venture didn’t go as planned, so they introduced India’s first-ever cash-on-delivery system.
- This made customers feel more comfortable, and trust in Flipkart grew.
More Milestones:
- By the beginning of the 2011 fiscal year, Flipkart’s revenue had reached Rs 750 million.
- During the same year, they acquired “Mime360,” a digital content platform.
- To follow the rules at the time, Flipkart officially registered its company because regulations didn’t allow 100% Foreign Direct Investment (FDI) for online retail companies offering multi-brand goods and services.
So, Flipkart’s commitment to customer support and innovative solutions like cash on delivery helped them gain the trust of Indian shoppers, leading to significant growth and milestone achievements.
Ownership:
- The current owners of Flipkart are Management. Walmart owns a majority stake in the company, while Tiger Global Management is a minority shareholder.
Walmart Inc. paid $1.4 billion to buy Tiger Global Management’s remaining stake in Flipkart, boosting its bet on the Indian retailer and helping the money manager
provide distributions to investors at a time when accessing liquidity is tough.
The transaction, which took place in recent days, valued the Indian e-commerce giant at $35 billion, according to a letter sent by Tiger Global to
investors that was obtained by Bloomberg News.That’s down from the nearly $38 billion valuation Flipkart commanded in its 2021 funding round.
A spokeswoman for the investment firm declined to comment on the deal,
which the Wall Street Journal reported earlier on Sunday.
Flipkart’s Winning Marketing Strategies
Flipkart, an Indian e-commerce giant founded in 2007, has become the biggest player in the country’s online shopping scene. They achieved this by employing a range of smart marketing tactics:
1. Mass Advertising:
- Flipkart invested heavily in ads that you’ve seen on TV, in newspapers, and online. These ads helped more people know about Flipkart and what it offers.
2. Celebrity Endorsements:
- Flipkart teamed up with famous people like Amitabh Bachchan, Virat Kohli, and Deepika Padukone to promote their brand. These celebs helped introduce Flipkart to their fans, bringing in new shoppers.
3. Discounts and Deals:
- Flipkart loves giving discounts and deals. It’s like a big sale party! For instance, their “Big Billion Days” sale offers massive discounts, sometimes up to 90%, on a wide range of products.
4. Influencer Power:
- Flipkart also joined forces with social media influencers who have tons of followers. These influencers spread the word about Flipkart to a much bigger audience.
5. Informative Content:
- Flipkart doesn’t just sell stuff; it also shares useful information. They create blogs, videos, and infographics that help customers learn more and trust the brand.
For example:
- They have a “Flipkart blog” that covers all sorts of topics, from product reviews to shopping tips.
- In 2021, they worked with a fashion influencer, Masoom Minawala, to promote fashion shopping on Flipkart.
In a nutshell, Flipkart used these clever strategies to become India’s top online shopping destination. They’ve made shopping fun, affordable, and trustworthy for millions of people. That’s how they became the e-commerce champ of India!
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