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TABLE OF CONTENT

S.NO CONTENTS PAGE NO.

01 INTRODUCTION 03

02 COMPANY PROFILE 08

03 REVIEW OF LITERATURE 13

04 RATIONALE OF THE STUDY 16

05 OBJECTIVE 18

06 METHODOLOGY 20

 RESEARCH DESIGN

 VARIABLE TO BE USED

 SAMPLE DESIGN

 DATA COLLECTION

07 DATA ANALYSIS 22

08 FINDINGS 33

09 SUGGESTIONS 36

10 CONCLUSION 38

11 BIBLIOGRAPHY 40

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INTRODUCTION

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INTRODUCTION

India had an internet user base of about 354 million as of June 2015 and is expected to cross 500
million in 2016. Despite being the second-largest user base in world, only behind China (650 million,
48% of population), the penetration of e-commerce is low compared to markets like the United States
(266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6
million new entrants every month. The industry consensus is that growth is at an inflection point.

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities.[5] Demand for international consumer products (including long-tail items) is growing much
faster than in-country supply from authorised distributors and e-commerce offerings.

In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal, Amazon India, and
Paytm.

MARKET SIZE AND GROWTH

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In
2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is
travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1
and is expected to cross 100 million mark by end of year 2016. CAGR vis-à-vis a global growth rate of
8–10%. Electronics and Apparel are the biggest categories in terms of sales.

According to a study conducted by the Internet and Mobile Association of India, the e-commerce
sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online
travel accounts for 61% of the e-commerce market. By 2020, India is expected to generate $100 billion
online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel
sales are set to grow four times in coming years.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016
and $850 billion by 2020, – estimated CAGR of 10%.

According to Forrester, 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. As per "India Goes Digital", a report by
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Avendus Capital, the Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the
year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market
in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 crore ($12.2
billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 million) in
2011 and estimated to grow to Rs 53,000 crore ($11.8 billion) in 2015.

Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year 2015
with both online travel and e-tailing contributing equally. Another big segment in e-commerce is
mobile/DTH recharge with nearly 1 million transactions daily by operator websites.

A new sector in e-commerce is online medicine, selling complementary and alternative medicine or
prescription medicine online. There are no dedicated online pharmacy laws in India and it is
permissible to sell prescription medicine online with a legitimate license.

Online sales of luxury products like jewellery also increased over the years. Most of the retail brands
have also started entering into the market and they expect at least 20% sales through online in next 2–3
years.

India might have only 300-odd million Internet users, out of its total population of 1.3 billion. But this
has not stopped online commerce from establishing itself in the country. For any other industry, it
takes decades of effort to have companies that are worth billion dollars. But in India, out of the nine
startup unicorns, four are horizontal online marketplaces. And despite the recent shutdowns and
funding crunch affecting the startup ecosystem, digital commerce has established itself.

The latest study by the Internet and Mobile Association of India (IAMAI) has, in fact, found that at a
CAGR growth rate of about 30 percent between December 2011 and December 2015, Indian digital

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commerce stands at Rs 1,25,732 crore. The report estimates that it will hit Rs 2,11,005 crore this year.
However, online shopping comes only after online travel, which is valued close to Rs 76,396 crore.

Online retail has grown by 57 percent since December 2014; electronics goods and fashion contribute
close to 49 percent of overall spend in e-tail. Horizontal marketplaces are the clear winner. In 2015, $9
billion flowed into Indian startups, with ShopClues, Flipkart, Snapdeal and Paytm bringing in a fourth
of the amount. In fact, Indian online commerce’s big daddy Flipkart gets highest sales from mobile
phones and electronic categories. Fashion, however, is where vertical players shine: Flipkart-owned
Myntra, Rocket Internet-backed Jabong, and well-funded players like Wooplr, Voonik, and Limeroad
are playing on a huge customer base.

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KEY DRIVERS IN INDIAN E-COMMERCE ARE

 Large percentage of population subscribed to broadband Internet, burgeoning 3G internet

users, and a recent introduction of 4G across the country.
 Explosive growth of Smartphone users, soon to be world's second largest Smartphone user
base.
 Rising standards of living as result of fast decline in poverty rate.
 Availability of much wider product range (including long tail and Direct Imports)
compared to what is available at brick and mortar retailers.
 Competitive prices compared to brick and mortar retail driven by disintermediation and
reduced inventory and real estate costs.
 Increased usage of online classified sites, with more consumer buying and selling second-
hand goods
 Evolution of Million-Dollar startup like Jabong.com, Saavn, Makemytrip, Bookmyshow,
Zomato Etc.

India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 billion by
2016 and $850 billion by 2020, – estimated CAGR of 10%. According to Forrester, 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 –2016. India has an internet user base of about 354 million as of June of 2015. Despite
being the second largest user base in world, only behind China (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the United States (266 M, 84%), or
France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new entrants
every month.

The industry consensus is that growth is at an inflection point. In India, cash on delivery is the most
preferred payment method, accumulating 75% of the e-retail activities. Demand for international
consumer products (including long-tail items) is growing much faster than in-country supply from
authorized distributors and e-commerce offerings. Largest e-commerce companies in India are
Flipkart, Snapdeal, Amazon India, and Paytm.

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COMPANY PROFILE

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COMPANY PROFILE

Flipkart is an e-commerce marketplace company founded in 2007 by Sachin Bansal and Binny
Bansal. The company is registered in Singapore, but has its headquarters in Bangalore, Karnataka,
India. Flipkart has launched its own product range under the name "DigiFlip" with products including
tablets, USBs, and laptop bags.

Flipkart's last fundraising round in May 2015 had pegged its valuation at $15 billion. In May 2016,
Morgan Stanley lowered Flipkart's valuation to $9.39 billion. In November 2016, Morgan Stanley
lowered Flipkart's valuation again, to $5.54 billion.

HISTORY

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute
of Technology Delhi. They are not related to each other. They worked for Amazon.com, and left to
create their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd. The first
product they sold was the book Leaving Microsoft to change the world to a customer from Hyderabad.
Flipkart now employs more than 33,000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on delivery.

After failure of its 2014 Big Billion Sale, Flipkart recently completed the second edition of Big Billion
Sale held between 13 and 17 October. where it is reported that they saw a business turnover of $300
million in gross merchandise volume.

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BUSINESS STRUCTURE

operating through a complex business structure which included nine firms, some registered in
Singapore and some in India. In 2012 Flipkart co-founders sold WS Retail to a consortium of investors
led by Rajeev Kuchhal.[20]

ACQUISITIONS

 2010: WeRead In a report dated 25 November 2014, a leading media outlet reported that
Flipkart were, a social book discovery tool.
 2011: Mime360, a digital content platform company.
 2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos.
Flipkart acquired the rights to Chakpak's digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it
will not be involved with the original site and will not use the brand name.
 2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an
estimated US$25 million. Letsbuy.com was closed down and all traffic to Letsbuy has been
diverted to Flipkart.
 2014: Acquired Myntra.com in an estimated ₹20 billion (US$300 million) deal.
 2015: Flipkart acquired a mobile marketing start-up Appiterate as to strengthen its mobile
platform.
 2016: Flipkart’s Myntra acquires rival fashion shopping site Jabong for $70 million.
 2016: In April, Flipkart acquired payment start-up PhonePe.

INVESTMENTS

 In 2015, Flipkart bought a minority stake in a Navigation and route optimization startup
MapmyIndia to help improve its delivery using MapmyIndia assets.

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FLIPKART IN INDIA

In the last few years, if there is one industry that has taken centre stage in India, it is e-commerce.
Online marketplaces are changing the way India shops. While the e-commerce in our country is a
multibillion-dollar industry, it is not just the big guns that have profited from it. There are
lakhs of small and medium entrepreneurs who joined the e-commerce bandwagon as sellers
and are witnessing significant growth in their business. So, whether Customer are a large-scale
business, small entrepreneur or plan to start Customers own business, e-commerce is
Customers biggest business opportunity. Here’s why:

LOW INVESTMENT — HIGH RETURNS

The first challenge any aspiring businessman faces is having the capital required to start a business. To
start Customerr business as an online seller, Customer need minimal investment to build an inventory
and start selling. Apart from Customerr inventory, the only resource Customer will need to get started
is a computer and a reliable Internet connection.

Most businesses require Customer to rent or buy a space to set up a business, but e-commerce does
not. No shop or warehouses are required to get started. In fact, Customer don’t even need extra
manpower if Customer are partnering with an e-commerce company that has a strong and efficient
logistics network.

BENEFITS APLENTY

As the proverb goes: “Opening a shop is easy, to keep it open is an art”. Managing a business is indeed
a task tougher than setting it up. But managing a business on an e-commerce platform is easy with the
help and support an online marketplace provides Customer. Any business related issues at Customers
end are taken care of by the e-commerce company you are associated with. All Customer need to focus
on is Customers business expansion and upholding the quality of Customers products.

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NO SPECIAL TECHNICAL SKILLS REQUIRED

One of the biggest myths that still prevail is that one needs to have some technical skills to operate in
an online marketplace. But the reality is that if Customer can browse the Internet, surf through
websites and can check emails, Customers are technically skilled enough to become an online seller.

ADVERTISING MADE EASY

Advertising is the best way to reach out to maximum number of customers and boost Customers sales.
But it requires a fat investment and doesn’t guarantee return on investment. This means that even after
advertising, Customer may not see a spike in Customers numbers. E-commerce helps solve this
problem. India’s leading e-commerce companies like Flipkart provide Customer with the opportunity
to promote Customers products with a small budget. Customers are charged as per the number of
clicks Customers products get. More clicks, more sales. No clicks, no charges. Can advertising get any
better?

The benefits of setting up Customers business in an online marketplace do not end here. Customers
also get the opportunity to establish Customers own brand and become a household name. It is an
industry that can give Customer high returns with low investment. Undoubtedly, the e-commerce
industry in India is the biggest business opportunity for Customer.

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Myntra

Myntra is an Indian fashion e-commerce marketplace company headquartered in Bengaluru,

Karnataka, India. The company was founded in 2007 by Indian Institute of Technology graduates with
a focus on personalisation of gift items. By 2010, Myntra shifted its focus to the online retailing of
branded apparel.

In May 2014, Myntra.com merged with Flipkart to compete against Amazon which entered the Indian
market in June 2013 and other established offline retailers like Future Group, Aditya Birla Group and
Reliance Retail.

HISTORY

Established by Mukesh Bansal along with Ashutosh Lawania and Vineet Saxena, Myntra was in the
business of on-demand personalisation of gift items. It mainly operated on the B2B (business-to-
business) model during its initial years. Between 2007 and 2010, the online portal allowed customers
to personalize products such as T-shirts, mugs, mouse pads, calendars, watches, teddy bears, pendants,
wine glasses and jigsaw puzzles.

In 2011, Myntra expanded its catalogue to include fashion and lifestyle products and moved away
from personalisation. Myntra tied up with various popular brands to retail a wide range of latest
merchandise from these brands. Myntra offered products from 350 Indian and International brands by
2012. Myntra also had casual wear for men and women from brands. The website saw the launch of
Fastrack watches and of Being Human, the brand.

2014 saw the merging of Myntra with another Indian e-commerce giant Flipkart.com in an estimated
deal of ₹2,000 crore (US$300 million), though nothing in terms of value was officially disclosed by
any of the company. Merger was majorly influenced by two large common shareholders, Tiger Global
and Accel Partners.[9] Myntra still continues to function and operate independently to increase its
market share from 50 to 70 per cent of the market share. In 2014, Myntra's portfolio included about
1,50,000 products of over 1000 brands ranging from international brands to designer brands and
distribution area of around 9000 pincodes in India.

In May 2015, Myntra moved on to app-only business model wherein customers can only buy and
transact in their site through smartphones. The move came after the site claimed that 95 percent of

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Internet traffic on their site came mobile and 70 percent sales were generated through smartphones.
The move to app-only generated mixed reviews and saw 10% dip in sales initially.

However, in February 2016, the company retracted its app-only model in an attempt to win back lost
customers. The company cited that the app-only strategy had backfired and Myntra would relaunch its
website.

Myntra was voted as the "India’s Most Admired & Valuable Power Brand Award 2016" at 7th Annual
India Leadership Conclave & Indian Affairs Business Leadership Awards 2016 under the
chairmanship of the founder Satya Brahma on Friday 1 July 2016 in Mumbai.

Business Structure

Myntra operate through a complex business model wherein Myntra Designs Pvt. Ltd, a wholly owned
subsidiary of Flipkart owns the fashion brands, DressBerry, Yellow Kite Baby, ETC, WROGN, Kook
N Keech, Candies, Myntra, Kook N Keech Archie, Roadster, Kook N Keech Star Wars, Sher Singh,
Yellow Kite Disney, Anouk, Yellow Kite, Marvel, Mirage (Subbrand of Anouk), All About You,
Anouk Rustic, Masaba for Anouk, Mast & Harbour, HRX by Hrithik Roshan, D Muse (Subbrand of
Dressberry), IMARA, HRX, Ether, Kook N Keech Disney, YK, Kook N Keech Marvel, Kook N
Keech Garfield, Gossip by Dressberry, YK Baby, Curvy, YK Disney, RDSTR, YK Marvel, Harvard,
SCHARF, YK, Yellow Kite, Kook N Keech Garfield, INVICTUS, YK Baby, MARD, YK Disney and
YK Marvel in India.

Vector E-Commerce Pvt. Ltd. is the company behind Myntra.com and the Myntra app. [19] Bishnu
Hazari and Raghunath Lakshmanan replaced Ashutosh Lawania and Prabhakar Sunder as Directors of
Vector E-Commerce Pvt. Ltd. in FY 13.

Products sold through the Myntra app can be classified in four divisions - Myntra brands sold and
fulfilled by Vector E-Commerce Pvt. Ltd., non-Myntra brands sold and fulfilled by Vector E-
Commerce Pvt. Ltd., non-Myntra brands sold by Vector E-Commerce but fulfilled by the seller and
non-Myntra brands sold and fulfilled by the seller.

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PRODUCT

Myntra has tied up with top fashion and lifestyle brands in India, such as Nike, Reebok, Puma, Adidas,
Lee, Converse, Lotto, FIFA, John Miller, Indigo Nation etc.

• To offer a wide range of current season merchandise from these brands Myntra currently offers
products from more than 200 Indian and international brands. These include shoes for running, tennis,
football, basketball and fitness, along with casual footwear from world-renowned industry leaders.

• There are also casual and dressy footwear for women from Catwalk, Carlton London and Red Tape
to name a few. E-retailing strategies of myntra

E-retailing strategies of myntra

E commerce considered the following attributes:-

• Direct electronic interaction between two computer applications (application to application) or

between a person using a computer .

• Interaction involves the completion of a specific transaction or part of a transaction

MARKETING STRATEGIES OF MYNTRA

Consumer-to-Consumer (C2C) Model The C2C model involves transaction between consumers. Here,
a consumer sells directly to another consumer However, it is essential that both the seller and the buyer
must register with the auction site. While the seller needs to pay a fixed fee to the online auction house
to sell their products, the buyer can bid without paying any fee. The site brings the buyer and seller
together to conduct deals. E-retailing strategies of myntra

Consumer-to-Business (C2B) Model The C2B model involves a transaction that is conducted between
a consumer and a business organization. It is similar to the B2C model, however, the difference is that
in this case the consumer is the seller and the business organization is the buyer. In this kind of a
transaction, the consumers decide the price of a particular product rather than the supplier. This
category includes individuals who sell products and services to organizations. E-retailing strategies of
myntra

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WEB ENABLED SUPPLY CHAIN

• Infrastructure - Shared , global networks • Information - World Wide access to whoever is authorized
• Members - Members join and leave quickly, securely and with consistent, easy to use administration.
• Control - Permission controlled, where data is accessible from anywhere in the world with
sophisticated security for authentication and authorization. • Process - Virtual product modeling and
world wide simultaneous engineering with integrated video conferencing and Internet telephone links
E-retailing strategies of myntra

SUPPLY CHAIN

Myntra.com is an aggregator of many brands. Its business model is based on procuring current season
merchandise from various brands and making them available on the portal at the same time as in
respective retail brand outlets. All these products are offered to customers on MRP. It is a Business to
Customer (B to C) revenue model.

Procurement is important for Myntra as they deal in merchandising; they receive the finished goods
from various brands, store them at their various warehouses and then ship them to the customer when
ordered. Outbound logistics is one of the critical activities for Myntra. They use a third party courier
for their outbound logistics. It is their responsibility to give the demanded product to the third party
courier as soon as possible. They then keep track of the lead time and try to reduce it with
collaboration from the courier company.

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Amazon.com

Amazon.com, online retailer, manufacturer of electronic book readers, and Web services provider that
became the iconic example of electronic commerce. Its headquarters are in Seattle, Washington.

Amazon.com is a vast Internet-based enterprise that sells books, music, movies, housewares,
electronics, toys, and many other goods, either directly or as the middleman between other retailers
and Amazon.com’s millions of customers. Its Web services business includes renting data storage and
computing resources, so-called “cloud computing,” over the Internet. Its considerable online presence
is such that, in 2012, 1 percent of all Internet traffic in North America traveled in and out of
Amazon.com data centres.

The company also makes the market-leading Kindle e-book readers. Its promotion of these devices has
led to dramatic growth in e-book publishing and turned Amazon.com into a major disruptive force in
the book-publishing market.

A Kindle DX e-book reader, 2009.

Amazon.com, Inc.

“Get Big Fast”

In 1994 Jeff Bezos, a former Wall Street hedge fund executive, incorporated Amazon.com, choosing
the name primarily because it began with the first letter of the alphabet and because of its association
with the vast South American river. On the basis of research he had conducted, Bezos concluded that
books would be the most logical product initially to sell online. Amazon.com was not the first
company to do so; Computer Literacy, a Silicon Valley bookstore, began selling books from its
inventory to its technically astute customers in 1991. However, the promise of Amazon.com was to
deliver any book to any reader anywhere.

Amazon.com's home page as it appeared in 1995.

Amazon.com, Inc.

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While Amazon.com famously started as a bookseller, Bezos contended from its start that the site was
not merely a retailer of consumer products. He argued that Amazon.com was a technology company
whose business was simplifying online transactions for consumers.

The Amazon.com business strategy was often met with skepticism. Financial journalists and analysts
disparaged the company by referring to it as Amazon.bomb. Doubters claimed Amazon.com ultimately
would lose in the marketplace to established bookselling chains, such as Borders and Barnes & Noble,
once they had launched competing e-commerce sites. The lack of company profits until the final
quarter of 2001 seemed to justify its critics.

However, Bezos dismissed naysayers as not understanding the massive growth potential of the
Internet. He argued that to succeed as an online retailer, a company needed to “Get Big Fast,” a slogan
he had printed on employee T-shirts. In fact, Amazon.com did grow fast, reaching 180,000 customer
accounts by December 1996, after its first full year in operation, and less than a year later, in October
1997, it had 1,000,000 customer accounts. Its revenues jumped from $15.7 million in 1996 to $148
million in 1997, followed by $610 million in 1998. Amazon.com’s success propelled its founder to
become Time magazine’s 1999 Person of the Year.

The company expanded rapidly in other areas. Its Associates program, where other Web sites could
offer merchandise for sale and Amazon.com would fill the order and pay a commission, grew from one
such site in 1996 to more than 350,000 by 1999. Following Bezos’s initial strategy, the company
quickly began selling more than books. Music and video sales started in 1998. That same year it began
international operations with the acquisition of online booksellers in the United Kingdom and
Germany. By 1999 the company was also selling consumer electronics, video games, software, home-
improvement items, toys and games, and much more.

To sustain that growth, Amazon.com needed more than private investors to underwrite the expansion.
As a result, in May 1997, less than two years after opening its virtual doors to consumers and without
ever having made a profit, Amazon.com became a public company, raising $54 million on the
NASDAQ market. In addition to the cash, the company was able to use its high-flying stock to fund its
aggressive growth and acquisition strategy.

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Although offering more types of goods broadened its appeal, it was Amazon.com’s service that gained
it customer loyalty and ultimate profitability. Its personalization tools recommended other products to
buy on the basis of both a customer’s purchasing history and data from buyers of the same items. Its
publishing of customer reviews of products fostered a “community of consumers” who helped each
other find everything from the right book to the best blender.

Beyond retailing

As noted above, Bezos claimed that Amazon.com was not a retailer but a technology company. To
underscore the point, in 2002 the company launched Amazon Web Services (AWS), which initially
offered data on Internet traffic patterns, Web site popularity, and other statistics for developers and
marketers. In 2006 the company expanded its AWS portfolio with its Elastic Compute Cloud (EC2),
which rents out computer processing power in small or large increments. That same year, the Simple
Storage Service (S3), which rents data storage over the Internet, became available.

S3 and EC2 quickly succeeded and helped popularize the idea that companies and individuals do not
need to own computing resources; they can rent them as needed over the Internet, or “in the cloud.”
For example, in 2007, soon after launch, the S3 service contained more than 10 billion objects, or files;
five years later, it held more than 905 billion. AWS is even used by Amazon.com’s rivals, such as
Netflix, which uses both S3 and EC2 for its competing video streaming service.

When Bezos founded Amazon.com, the strategy was to not carry any inventory. However, in order to
achieve more control over deliveries, in 1997 the company began holding inventory in its warehouses.
In 2000 the company started a service that lets small companies and individuals sell their products
through Amazon.com, and by 2006 it had started its Fulfillment by Amazon service that managed the
inventory of such business. Its growing inventory-management business spurred its $775 million
purchase in 2012 of Kiva Systems, a robotics company whose devices automate inventory-fulfillment
duties.

Nevertheless, despite having branched out well beyond online retailing, the bulk of the company’s
revenues continues to come through selling products online (though its most profitable division
remains AWS), and that is where much of its investment has been targeted. Over the years it has
acquired or invested in many online retailers, such as the shoe seller Zappos, which it purchased for
$847 million in 2009.

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The Kindle shakes up publishing

In 2007 Amazon.com began to sell its own Kindle e-readers, which helped energize the e-book market.
In 2011 the company introduced a related low-cost tablet computer, the Kindle Fire, and by 2012, the
Kindle Fire was estimated to constitute 50 percent of the tablets sold that used Google’s Android
mobile operating system.

A Kindle 2 electronic reading device, 2009.

Amazon.com, Inc.

After its first full year of selling books in 1996, book publishers praised the new service as a great way
to help them clear their backlists of slow-selling books. However, with the introduction of the Kindle,
tensions began to build between publishers and Amazon.com. The company wanted to sell new e-
books for a fixed price, well below what new printed books sold for, prompting many complaints from
the publishing industry.

By 2010 the rift between book publishers and Amazon.com over the price of e-books had grown. The
publishing company Macmillan Books threatened to pull its e-books from Amazon.com, which
retaliated by removing all Macmillan books, both printed and electronic, from the site. However,
within weeks, Amazon.com capitulated and allowed Macmillan and other publishers to set prices of e-
books.

In 2009 the company introduced its first publishing line, AmazonEncore, dedicated to popular self-
published and out-of-print books. It also let individuals publish their own e-books. In 2011 its e-book
ambitions led to the launch of Amazon Publishing with the intent to develop and publish its own titles.
That year Amazon.com announced that Kindle e-books were outselling all printed books. While many
book publishers continue to derive significant revenue through sales at Amazon.com, the company is
no longer considered by publishers merely as another bookseller. It is now also a major competitor in
their industry.

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REVIEW OF LITERATURE

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REVIEW OF LITERATURE

Abhijit Mitra (2013) concluded in his research that several important phenomena are associated
with e-commerce. E-Commerce has unleashed yet another revolution, which is changing the way
businesses buy and sell products and services. New methodologies have evolved. The role of
geographic distances in forming business relationships is reduced. E-Commerce is the future of
shopping. With the deployment of 3G and 4G wireless communication technologies, the internet
economy will continue to grow robustly. In the next 3 to 5 years, India will have 30 to 70 million
internet users which will equal, if not surpass, many of the developed countries. Internet economy will
then become more meaningful in India.

Alka Raghunath & Murli Dhar Panga (2013) concluded that with the development of
computer technology, the World Wide Web has become the connection medium for the networked
world. Computers from locations that are geographically dispersed can talk with each other through
the Internet. As with any new technology, there are positives and negatives associated with its use and
Adoption. Finally, an e-marketplace can serve as an information agent that provides buyers and sellers
with information on products and other participants in the market. E-commerce creates new
opportunities for business; it also creates new opportunities for education and academics. It appears
that there is tremendous potential for providing e-business education.

M.Farhana Fathima (2016) .As more people are getting linked with E-commerce, the demand
for centre providing internet facility or cyber cafe is also increasing. Hence, the people who wish
International Journal of Computing & Business Research. People could found various opportunities of
employment. On the behalf of above said reports and experts view showed that the future of e-
commerce in India would be bright in the upcoming years if all essential factors would be
implemented.

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Kotler and Armstrong (2001), Consumer buying behaviour refers to the buying behaviour of
the individuals and households who buy goods and services for personal consumption. Consumers
around the world are different in various factors such as age, income, education level and preferences
which may affect the way they avail of goods and services. This behaviour then impacts how products
and services are presented to the different consumer markets. There are many components which
influence consumer behaviour namely; cultural, social, personal, and psychological.

Consumer behaviour is the study of when, why, how and where people do or do not buy products
(Sandhusen, Richard L; 2000).

Kundi J. et al (2008) Stated that consumer behaviour refers to the mental and emotional process
and the observable behaviour of consumers during searching, purchasing and post consumption of a
product or services. Consumer behaviour blends the elements from psychology, sociology,
sociopsychology, anthropology and economics.

Kotler and Keller, (2012).It is worth noting that consumer buying behavior is studied as a part of
the marketing and its main objective it to learn the way how the individuals, groups or organizations
choose, buy use and dispose the goods and the factors such as their previous experience, taste, price
and branding on which the consumers base their purchasing decisions.

According to Zia Ul Haq Consumers are playing an important role in online shopping. The
increasing use of Internet by the younger generation in India provides an emerging prospect for online
retailers. If online retailers know the factors affecting Indian consumers’ buying behaviour, and the
associations between these factors and type of online buyers, then they can further develop their
marketing strategies to convert potential customers into active ones. In this study four key dimensions
of online shopping as perceived by consumers in India are identified and the different demographic
factors are also studied which are the primary basis of market segmentation for retailers. It was
discovered that overall website quality, commitment factor, customer service and security are the four
key factors which influence consumers’ perceptions of online shopping. the study revealed that the
perception of online shoppers is independent of their age and gender but not independent of their
education & gender and income & gender Finally, the recommendations presented in this research may
help foster growth of Indian online retailing in future.

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25

According to Dr. Prerna Kumar, Assistant Professor and Mahendra S.Rawat, Alumnus,
International Institute of Professional Studies, Devi Ahilya Vishwavidyalaya, and Indore, The purpose
of this study is to determine the various perceptions of customers towards Online Promotions. The
study gives insights into their perceptions, feelings and attitude towards online promotions. Based on
data collected from 300 internet users, the different perceptions are identified. Exploratory Factor
Analysis was used to identify the various perceptions. The findings serve as a criterion for designing
strategies to improve the effectiveness of online promotions.

According to Mohanapriya.s “Online shopping has grown in popularity over the years mainly
because people find it convenient from the comfort of their home or office. One of the most enticing
factor about online shopping is popularity during a holiday season, it alleviates the need to wait in long
lines or search from store to store for a particular item.The main scope of the study is to know about
customer satisfaction towards online shopping. The present study reveals about reasons for preferring
an online website and satisfaction towards online websites”.

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RATIONALE OF THE STUDY

Electronic commerce or business is more than just another way to sustain or enhance existing business
practices. Rather, e-commerce is a paradigm shift. It is a disruptive innovation that is radically
changing the traditional way of doing business. Ecommerce is showing tremendous business growth in
our country. Increasing internet users have added to its growth. Ecommerce has helped online travel
industry in many ways and added a new sales avenue through online retail industry in our country. The
present study is undertaken to describe the present status and facilitators of E Commerce in India,
analyze the present trends of E-Commerce in India and examine the barriers of E-Commerce in India.

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OBJECTIVES

The objectives of present study are:

 To describe the present status and facilitators of E-Commerce in India;

 To analyze the present trends of E-Commerce in India;

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research design:

This is an empirical and analytical study. Survey method through structured questionnaire will be
adopted for the study, as it attempts to evaluate the E commerce in India

Sampling method:

Convenience sampling method will be adopted taking into account availability and approachability of
the consumers for the purpose of data collection. Since the concept of online buying is new to India,
there are no readymade lists of online buyers. Hence, non-random sampling method has been used to
collect data.

Research instrument:

The research instrument used for this study is a structured questionnaire. It will be designed to study
the factors that affect the Ecommerce in India, based on review of literature and practical observations.

Data analysis:
Pie Chart, Bar Graph, will be used to analyse and interpret the data.

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30

DATA ANALYSIS
&
INTERPRETATION

30
31

DATA ANALYSIS

1. Distribution of Respondents by Gender

Gender No. of respondent

Male 82
Female 18
Total 100

Gender

18%

Male
Female

82%

INTERPRETAION

Out of 100 respondent 82% were male while 18% were female.

31
32

2. Distribution of Respondents by Age

Age (year ) No. of respondent

Below 20 10
20-30 42
30-40 32
40-50 11
Above 50 05

Respondents

5% 10%
11%
Below 20
20-30
30-40
40-50
32% 42%
above 50

INTERPRETAION

Out of 100 respondent 10% were below 20 year, 42% were between 20 & 30 year, 32% were between
30-40 year and 11% were between 40-50 and rest of the respondent were above 50 year age.

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3. What is your monthly income?

Response No. of Respondents

10,000-11,999 25
12,000-19,999 25
20,000-24,999 20
25,000-29,999 15
30,000-34,999 10
35,000 and above 05

RESPONSE

5%
10%
25% 10,000-11,999
12,000-19,999
15% 20,000-24,999
25,000-29,999
30,000-34,999

25% 35,000 and above

20%

INTERPRETATION
Out of 100 respondent 25% respondents have income between 10,000 – 11,999, 25% have income
between 12,000 – 19,999 similarly 20% respondents have income between 20000 to 24999, 15 %
respondents have income between 25000 to 29999, 10% respondents have income between 30,000 to
34,999 and 5% respondents have income above 35000.

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34

4. What is your occupation?

Response No. of Respondents

Student 10
Private Job 35
Govt. Job 25
Business 20
Any other 10

RESPONSE

10% 10%

20% Student
Private Job
35% Govt. Job
Business
Any other
25%

INTERPRETATION
Out of 100 respondent 10% respondents are students 35% are private job employee, 25 % are govt. job
employee, and 20 % are businessmen while 10% have other occupation.

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35

5. Are you aware about different brands on Flipkart?

Response No. of Respondents

Fully aware 35
Aware 28
Neutral 25
Less aware 12
Not aware 05

RESPONSE

5%
11%
33% Fully aware
Aware
Neutral
24% Less aware
Not aware

27%

INTERPRETATION
Out of 100 respondent 55% respondent were fully aware, 33% were only aware, 11% were less aware
and 1% was not aware about the different brands on Filpkart

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36

6. How do you know about the different brands available on flipkart?

Response No. of Respondents

Friends 20
Television 30
Publicity 15
Newspaper 30
Any other 05

RESPONSE

5%
20%

Friends
30% Television
Publicity
Newspaper
Any other
30%

15%

INTERPRETATION
Out of 100 respondent 20% respondent said that they get the information from friends ,60% said that
they get the information from advertisement, 15% get form publicity and 5% get by other mean.

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7. Which factor influence you more while purchasing on Fipkart?

Response No. of Respondents

Brand image 20
Quality 10
Price 30
Comfort 20
Style 20

RESPONSE

20% 20%

Brand image
Fuel efficiency
10% Price

20% Comfort
Style

30%

INTERPRETATION
Out of 100 respondent 20% respondent said brand image, 10% said quality, 30% said price,20% said
comfort while 20% said style matters while purchasing products on Filpkart.

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8. Which products you usually order on Flipkart?

Response No. of Respondents

Mobile 25
Electronic gadgets 25
Personal care 15
Accessories 10
Clothings 10
Other 15

RESPONSE

15%
25% Mobile
Electronic gadgets
10%
Personal care
Accessories
10%
Clothings

25% Other

15%

INTERPRETATION
Out of 100 respondent 25 % respondent said Mobile, 25 % said Electronic gadgets, 15 % said Personal
care, 10 % said accessories while 10% said clothing and rest said other when they asked which
products you usually order on Flipkart.

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9. From which e commerce site you purchase more?

Response No. of Respondents

Flipkart 35
Amazone 30
E bay 05
Myntra 25
Other 05

RESPONSE

5%

Flipkart
25% 35% Amazone
E bay
Myntra
Other
5%

30%

INTERPRETATION
Out of 100 respondents 35% respondents said Flipkart, 30% said Amazone, 5% said E bay, while 25%
said Myntra and rest said other when they asked From which e commerce site you purchase more?

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10. Consumer prefers to purchase products on Flipkart than other e commerce site?

Response No. of Respondents

Strongly Agree 15
Agree 35
Neutral 30
Disagree 13
Strongly Disagree 07

RESPONSE

7%
15%
13%
Strongly Agree
Agree
Neutral
Disagree
35% Strongly Disagree
30%

INTERPRETATION
Out of 100 respondents 15% were strongly agree, 35% were agree, 30% were neutral and 13% were
disagree while 7% strongly disagree with 150 cc or more than that Consumer prefer to purchase
products on Flipkart than other e commerce site.

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11. E commerce has a great impact on international business

Response No. of Respondents

Strongly agree 20

Agree 50

Neutral 20

Disagree 10

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement E commerce has a great impact on international business

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42

12. E commerce has change the way of doing business in many country

Response No. of Respondents

Strongly agree 20

Agree 50

Neutral 20

Disagree 10

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement E commerce has change the way of doing business in many country

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13. Major e commerce player provide better services than local vendor

Response No. of Respondents

Strongly agree 10

Agree 60

Neutral 10

Disagree 20

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement Major e commerce player provide better services than local vendor

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44

14. Economy of the countries also affected because of ecommerce

Response No. of Respondents

Strongly agree 30

Agree 40

Neutral 10

Disagree 20

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement Economy of the countries also affected because of ecommerce

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15. Pricing strategy is the main function of ecommerce to impact on international marketing

Response No. of Respondents

Strongly agree 30

Agree 50

Neutral 20

Disagree 00

Strongly disagree 00

Response
0% 0%

20% 20%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

60%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 60% agree, 20% were neutral while none was
disagree with the statement Pricing strategy is the main function of ecommerce to impact on
international marketing

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16. Transparency regarding a service provider’s identity

Response No. of Respondents

Strongly agree 20

Agree 60

Neutral 10

Disagree 10

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement Transparency regarding a service provider’s identity

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17. Transparency regarding price in ecommerce

Response No. of Respondents

Strongly agree 20

Agree 50

Neutral 10

Disagree 20

Strongly disagree 00

Response
0%

10%
20%

Strongly agree
20% Agree
Neutral
Disagree
Strongly disagree

50%

INTERPRETATION

Out of 100 respondents 20% were strongly agree, 50% agree, 20% were neutral while 10% disagree
with the statement Transparency regarding price in ecommerce

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18. Quality of product improved because of the ecommerce competition to physical outlets and
retails.

Response No. of Respondents

Strongly agree 20

Agree 40

Neutral 30

Disagree 10

Strongly disagree 00

Response
0% 0%

30% 30% Strongly agree

Agree
Neutral
Disagree
Strongly disagree

40%

INTERPRETATION

Out of 100 respondents 30% were strongly agree, 40% agree, 30% were neutral while none was
disagree with the statement Quality of product improved because of the ecommerce competition to
physical outlets and retails.

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FINDINGS

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50

FINDINGS
 On the basis of information collected from the users of flipkart.com in Indore city, some
important facts which come as a result of this research are as follows-
 The first and foremost finding of this study is that most No. of users are happy on online
shopping with flipkart.com because most of the users responces are in favour of flipkart.com
 Most respondents (users) are satisfied for online shopping with flipkart.com. So most
respondents want to continue online shopping with flikart.com, they believed in flipkart.com
reliability, its policies and they said that flipkart.com is reliable etailer in the field of online
shopping.
 On the basis of user responces we can easily analyze that users of flipkart.com (Indore city)
mainly interested in buy online apparel- Like mens, womens and kids clothes, watches, home
& kitchen appliances etc. and they dislike buy online perfumes & footwear etc. they bought
products online once in a week and like to do online shopping mostly on discounted time
period and festive seasons.
 Users of flipkart.com believes that flipkart.com products prices is lesser than the prices in the
market.
 Mostly youngsters and youth generation (18-25 Age group) are very much interested in online
shopping with flipkart.com because they know about technology, they know about e-shopping,
and they know about very well when and how purchase products from this e-tailer.
 In case of various parameters for loyalty, commitment, and reliability e-tailer most of the
respondents (User’s) give positive responces/view for this e-tailer (flipkart.com).

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CONCLUSIONS

51
52

CONCLUSION

By analyzing the data we can surely say that consumer perception towards online shopping is positive
and online shopping is becoming more popular day by day in younger generation. Most of the
respondents are using internet for the purpose of online shopping and communication. From the study
it also derived that the customer or people in Indore region are motivated to buying online for the
purpose of time saving and convenience along with lesser efforts is required in comparison to store
purchase. Most of the respondent is using internet at mobile & home.

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SUGGESTIONS

53
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SUGGESTIONS

Flipkart has successfully placed itself into the prospects mind making it the India’s largest online store
with huge range of products. But Flipkart still needs to work on their core competence that is books
and stationery items. With the entry of Amazon.com it will be a huge competitive market for Flipkart
and hence will have to position itself better, as we still see that huge percentage of females are still
unaware of Flipkart. Those female who purchase, has a very less frequency which has remained
unchanged. Therefore they need to get aggressive at providing better services which can be fulfilled by
reducing the delivery time, selling second hand products which will increase consumers’ affordability
much more and enhance penetration into the market. They can even have their retail stores which can
give an access to consumers to feel and analyze the products, which will help them win the consumers
faith. Price will still be a factor as amazon being a huge company will use its economies of scale to
remove their competitors from the market; therefore they need to be more competitive on that aspect.
Be very focused on consumers and build amazing experiences for the customers.

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REFERENCES

55
56

REFERENCES

Abhijit Mitra 2013. “E-commerce in India- a review”, International Journal of Marketing, Financial
Services and Management Research ISSN 2277- 3622 Vol.2, No. 2, February (2013)

Alka Raghunath, 2013. “Problem and Prospects of ECommerce “, International Journal of Research
and Development - A Management Review (IJRDMR) ISSN (Print): 2319–5479, Volume-2, Issue – 1,
2013 68 Dr.

Fathima M.Farhana 2016. “FUTURE OF E-COMMERCE IN INDIA”, International Journal of Novel

Research in Marketing Management and Economics Vol. 3, Issue 2, pp: (232-236), Month: May -
August 2016

Gangeshwer, D. K. 2013.” E-Commerce or Internet Marketing: A Business Review from Indian

Context”, International Journal of u- and e- Service, Science and Technology Vol.6, No.6.

Sarbapriya Ray 2011.” Emerging Trend of E-Commerce in India: Some Crucial Issues, Prospects and
Challenges”, Computer Engineering and Intelligent Systems ISSN 22221719 (Paper) ISSN 2222-2863
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