walmart flipkart case study solution

Case Analysis of Walmart and Flipkart M&A

Posted: 16 Nov 2020

Shashi Pingolia

Delhi School of Economics; Purdue University

Date Written: September 28, 2020

The main objective of this case analysis is to provide a systematic overview of mergers and acquisition process in the context of Walmart -Flipkart deal in which the retail giant, Walmart acquired 77% stake for $ 16 billion in Flipkart, an e-commerce company in India. The deal is considered the biggest acquisition of an e-commerce company. For the ease of explanation, the entire case analysis is arranged into five major sections beginning with a brief overview of general objectives of M&A and its relevance in the context of Walmart-Flipkart M&A deal. The main purpose of the acquisition is to gain from the synergies of two retail giants with different competitive advantages in different countries. Flipkart has its innovative and agile business approach, entrepreneurial spirit, extensive supply chain network in India and Walmart has the experience, stability and a reason to tap early the booming e-commerce market in India. Lack of ‘soft’ due diligence, retaining of key talent, Creation of comprehensive compensation strategy and employee benefits program, Integration of different work culture, and communication of change processes etc are identified as critical HR issues that might impede the success of Walmart-Flipkart deal, and are discussed in detail in the second section of the analysis. For simplification, the key roles expected by HR of Walmart are enlisted on the basis to 3 main stages of M&A. i.e. Pre-combination, combination planning & signing of agreement, and post combination and implementation of the deal. In the fourth section, an action plan is recommended for resolving the HR issues identified at the beginning of the analysis. In the last section, a one-year action plan including 5 key HR strategies, is prepared for facilitating the end goals of M&A between Walmart & Flipkart.

Keywords: Walmart, Flipkart, HR, Merger and Acquisition

Suggested Citation: Suggested Citation

Shashi Pingolia (Contact Author)

Delhi school of economics ( email ).

University Road Kirti Nagar Delhi, DE New Delhi 110 007 India

Purdue University ( email )

1310 Krannert Building West Lafayette, IN 47907-1310 United States

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17 The ‘Walkart’ of India: A Case Study on Walmart-Flipkart Merger

• Published: June 2022
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US retail giant Walmart has signed a definitive agreement to acquire a 77% stake in India’s largest e-commerce marketplace Flipkart with an investment of around $16 billion, making it the largest transaction in the history of the online retail space globally. The deal, which wiped away $10 billion of Walmart’s market capitalization as investors reacted negatively in early morning trade on the New York Stock Exchange, stands out for several exits. The biggest was Sachin Bansal selling his entire 5.96% stake for $1.23 billion and parting ways with Flipkart that he had founded in 2007 along with a friend from IIT, Binny Bansal (not related). Sachin was nowhere around at the Flipkart campus when the Walmart top team led by CEO Doug McMillon addressed employees in a town hall meeting. Another significant exit is that of Soft Bank, the largest investor in Flipkart. In a strange coincidence, the deal, valuing Flipkart at $20.8 billion, was announced to the world by Soft Bank Chief Executive Masayoshi Son in a webinar with investors hours before Walmart did so. He also confirmed that Soft Bank would get about $4 billion from its $2.5-billion investment in Flipkart last August. Flipkart’s valuation at $20.8 billion is a 75% increase over its previous valuation in the range of $11–12 billion last August. Out of the $16-billion investment, Walmart will put in $2 billion in new equity funding, while the rest will be utilized to acquire stakes of existing investors in the Bengaluru-based company. The case study focuses on Effect of regulatory restrictions in Indian Ecommerce Markets for Global MNCs.

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A business journal from the Wharton School of the University of Pennsylvania

Where’s the Value? An Inside Look at Walmart’s Flipkart Deal

May 14, 2018 • 18 min read.

The $16 billion transaction says a lot about India’s e-commerce ecosystem, writes former Snapdeal exec Rajat Kumar in this opinion piece.

• Finance & Accounting

Rajat Kumar, COO of ABP Digital, who previously had a leadership role at the Indian e-commerce company Snapdeal and was a consultant at McKinsey, writes in this opinion piece that Walmart’s $16 billion deal to buy online retailer Flipkart says a lot about India’s e-commerce ecosystem.

Walmart’s much-anticipated $16 billion acquisition of Flipkart, India’s top e-commerce retailer , which was announced last week, brings to mind the opening lines from Charles Dickens’ A Tale of Two Cities : “It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of light, it was the season of darkness; it was the spring of hope, it was the winter of despair.” The deal is all those things — and more.

Hardly two years ago, Flipkart was being written off in VC circles. Back then growth was slowing, unit economics and profitability remained dreams, the Amazon juggernaut was gaining market share, and markdowns by current investors signalled to the rest of the investing community that the company was overvalued. At the center of it all was Tiger Global, a New York City-based hedge fund that had bet big on Flipkart and was worried about its Indian investments. In 2017 Kalyan Krishnamurthy, who had previously worked as a director at Tiger Global, became Flipkart’s CEO, replacing the founders, Sachin and Binny Bansal. The taps on discounts were opened; the focus on mobile phone sales was sharpened; and that was enough to woo SoftBank Vision Fund, the biggest of the big fish, which invested $2.5 billion.

Now, two blockbuster deals later — first with SoftBank , which provided some relief to Tiger, and the second with Walmart, which provides a profitable exit to SoftBank — things have changed, and how. But apart from ESOPs being liquidated and many millionaires being created, let us remember that little of the valuation will find its way to India. Most of the money will move from Walmart to Tiger Global, SoftBank Vision Fund and Accel, which have invested heavily in Flipkart during the past two years. According to media reports , while Tiger Global will make $3 billion on this deal, both SoftBank Vision Fund and Accel will reap substantial windfalls. Flipkart’s Indian founders and employees will end up with a small slice — perhaps around 10%. How I wish there were a bigger India wealth role in this story, but I guess something is better than nothing. Even 10% of $16 billion is not exactly chump change.

More importantly, let us assess what this transaction could mean for Walmart, for Amazon, for the e-commerce ecosystem, for Indian traders and manufacturers and for consumers.

“Walmart’s sourcing might, combined with Flipkart’s e-commerce prowess, can and should be a global play, not just an India play.”

E-Commerce 101

Before we begin, consider some basic facts about e-commerce in India:

• E-commerce operates in four broad verticals — electronics (including mobile phones); fashion; household stuff (ranging from furniture to bedsheets to brooms); and fast-moving consumer goods (FMCG). Of these, the most sales value comes from electronics, including mobiles, and the most transactions come from fashion.
• Despite regulations that specify that retail with overseas funding has to be a marketplace (i.e., it cannot sell its own inventory but should only be a platform for other merchants), no barriers prohibit some suppliers (less than 25% of total business on the platform) from being affiliated with the retailer. WS Retail (for Flipkart) and Cloudtail (for Amazon) are examples. This also helps from a customer perspective since the perception of quality is stronger with such branded suppliers.
• In a typical retail business, the cost of customer acquisition is measured against the long-term value of a customer (driven by his value per order, number of orders, profit per order, typical number of years before churn). I have never heard any e-commerce discussion in India even mention these metrics. The metric I have heard used most often is gross sales value (GSV) perhaps in the absence of another simple metric in a growth business fueled by discounting and loss leadership. By the way, the way GSV is measured changes from company to company. Firms either use maximum retail price or MRP to measure GSV, or the retailer listing price, but I do not know of any company that uses the actual price charged to a consumer for calculating GSV.
• Since market leadership is measured in terms of GSV, and funding is dependent on it, it is pertinent to note why GSV is important. GSV stems from a classic marketing and finance model, with the assumption that higher sales automatically mean a larger number of consumers. This, in turn, means a higher mind share as well as a stronger bottom line (with the assumption that products should not be sold at a loss).
• In a typical VC-led high growth industry, this usually does not hold true, and hence in e-commerce, GSV levers and profitability levers are separate from each other. For example, reducing prices by 10% on a mobile phone can usually ensure that GSV for that phone triples, but clearly, it may make a significant dent in the bottom line with no significant long term gain in consumer mind share. (Also, especially for mobile phones, discounts can lead to trade buys kicking in, where offline retailers pick up discounted stock for later reselling at full rates.) Moreover, GSV does not account for the number of returns, which should not only not be counted in sales done on the platform but can also contribute to significant losses because of free returns, damages and frauds.
• E-commerce has not yet fully captured the imagination of Indian consumers other than those living in metros and big cities. While orders are shipped to smaller cities, the numbers are not commensurate with the share of population living in these parts of the country.
• E-commerce prices are much lower than those one would get in, say, a mall. However, barring mobile phones, branded products and FMCG, the prices may still not be able to beat prices of shops in local markets. These shops do not pay rent, do not need high profits for owner sustenance, deal in unbranded goods, and may have innovative ways of avoiding taxes such as GST that ordinary mortals may not be able to imagine. In other words, the second rung of e-commerce penetration in India will be a long-drawn affair, unlike the current phase, and will likely take an omni-channel route.

Below, I will discuss the bottom-line impact of the deal on Walmart, which, if one were to go by regulations, should never be a concern since a pure marketplace model as is mandated by regulations is nothing but a technology platform. But by that logic, e-commerce should never have been a loss-making industry in India to begin with, so I would rather base my thoughts on reality rather than on theory.

“How I wish there were a bigger India wealth role in this story, but I guess something is better than nothing.”

Flipkart vs Amazon — and the Value to Walmart

How does Flipkart compare to Amazon in India? Since both companies hold information close to the chest, a broad statement will be inaccurate and inappropriate. Reports suggest that Flipkart leads in GSV over Amazon, while Amazon leads in units sold. Amazon is also believed to have overtaken Flipkart in metros (where the most purchasing power lies).

Flipkart leads in the fashion vertical. Its subsidiaries Myntra and Jabong are completely focused on that industry. Flipkart also leads in mobile phones, which accounts for a significant portion of its total GSV. Moreover, Flipkart has PhonePe, its payments solution, just like Amazon and PayTm have their own solutions. However, Amazon also seems to lead from a consumer share perspective. Reports suggest that Amazon was ahead of Flipkart on browser visits, app downloads and average daily active app users.

So what does Flipkart bring to the table for Walmart (apart from tailwinds about India’s macro story and retail potential, which has been beaten to death)? The implications of gaining leadership in the fashion vertical are that Flipkart has higher bargaining power with suppliers, especially fashion brands. Myntra and Jabong (both owned by Flipkart) are positioned as fashion destinations and not commodity retail destinations. Just this difference in perception automatically means a difference in pricing power.

Fashion prices are not easy to compare across websites, and therefore a price premium can be charged once a consumer starts browsing. For example, what is easier to compare — the price of a Sony Bravia 42-inch television or a sky-blue Arrow full sleeve shirt, size 42 with a specific stripes pattern? Moreover, given the price points, a consumer’s incentive to compare is also lower than in the electronics segment. Hence, fashion is a goldmine from a P&L perspective, if it is done right. If not done right, though, the following costs kick in: Fashion items usually have an unfavorable value-to-shipping cost ratio and also have a higher propensity for return (mismatch in size, color expectations, material expectations, etc). Such return costs are a drag for both the retailer and suppliers.

Moreover, the retailer is stuck with unsold inventory. (Branded fashion deals are usually not done on a marketplace model and there is some level of retailer risk involved.) This imposes a spoilage risk as well as the possibility that unsold inventory may have to be liquidated at a loss. Overall, the Flipkart fashion vertical seems to be doing well, with reports of Myntra looking to break even this year, while maintaining a healthy growth trajectory.

Flipkart’s lead in the mobile market also has significant implications. For one thing, mobile phones are highly amenable to online purchase through e-commerce platforms. They are high value, have high demand, are not bulky and perhaps cost Rs 40 (or $0.75) to ship. Moreover, a consumer who wants to compare multiple models side by side in peace may take two or three visits before making up his mind (and hence would hate pushy salespeople in a physical store). For these reasons, mobile phones were one of the first few items to show significant traction on e-commerce and take significant share from offline retail. Even today, most searches in e-commerce are about mobile phones, which are a significant symbol of identity, especially for Indian youth.

Flipkart is a leading destination for phones in India — be it the deals it has with Motorola or Xiaomi (which Amazon has slowly tried to wrestle into), or just the sheer number of exclusive launches it does in a year. It is now an indispensable site for manufacturers to list their phones. And with the high volume comes high bargaining power on margins. In addition, a lead in mobile phones market share automatically means an entry into a high-turnover segment with further scope to gain share versus offline retail.

“E-commerce has not yet fully captured the imagination of Indian consumers other than those living in metros and big cities.”

The downside, however, is that mobile phones are a double-edged sword; they usually do not make money. In fact, they are loss leaders for e-commerce. Prices are easy to compare and hence there is a simple downward spiral to woo the consumers, even at a loss. The margins are way lower than in fashion, and usually hover around 7% to 10%. While shipping costs are low, losses on account of fraud or returns can be gigantic. And if platforms want exclusive deals with manufacturers, they have to provide sell out targets (usually guaranteed) to gain that exclusivity. This means that the loss on account of unsold inventory may potentially hit the retailer rather than the manufacturer.

In summary, once the Flipkart deal goes through, Walmart will inherit a business that is a leader in both high-margin business (fashion) and high-GSV business (phones). Still, the latter may continue to remain a bigger drain on the bottom line than the former, despite providing a cushion in the vanity metric of GSV.

Did Walmart Overpay?

Much ink has been spilled discussing the $16 billion acquisition price, so it is worth discussing if the valuation was correct. In my view, beauty lies in the eyes of the beholder. From a pure RoI perspective, the valuation may not appear to be justified. However, one must note that most technology businesses have much of their value embedded in terminal value, or in cash flows that appear after a 15-year to 20-year horizon. The exponential growth curve in a growing market makes it very tough to accurately model the right value in such cases. As a result, most venture capitalists speak in terms of revenue multiples rather than EBITDA multiples. The only concern that Walmart may have is how improving unit economics (especially on the electronics side) will impact growth and consequently the value embedded in terminal value.

The bigger question is whether Walmart had a choice: Could it have invested its war chest in India and hoped to reach Flipkart levels organically, choosing the path that Amazon chose earlier? Perhaps it could have, provided it had technology and e-commerce expertise, but the company has not been able to convincingly demonstrate this elsewhere. (For example, Walmart’s plan to collaborate with Bharti to build its retail presence in India did not take off as planned, so perhaps it remains wary of organic plays in India, especially with regulation stacked against it.) Moreover, in such a scenario, it would have to be wary of SoftBank pumping in more money into Flipkart to counter Walmart, or prepping it for listing and using the funds to crush Walmart India before it could gain a proper toehold.

In the medium term, Walmart may be able to do some smart moves with Flipkart. I am sure it has built these factors into its valuation — and if it has not, it should have. Walmart and Flipkart will have better bargaining power with suppliers (imagine the global might of both U.S. and India volumes while negotiating rates with Chinese suppliers). Walmart could also apply its e-commerce lessons from Flipkart and implement them in the U.S and other global plays (Jet.com, etc). I imagine this would have a much greater bearing on Walmart’s thinking than a pure India play. After all, few companies globally have been able to withstand Amazon’s onslaught, as Walmart knows from previous experience. Walmart’s sourcing might, combined with Flipkart’s e-commerce prowess, can and should be a global play, not just an India play.

“Even today, most searches in e-commerce are about mobile phones, which are a significant symbol of identity, especially for Indian youth.”

Implications for Indian Retail

Let’s face it — Indian manufacturing and retail are inefficient. The warped ratio of real estate rents to product value, inefficient transportation and infrastructure, or the sheer number of intermediaries, make the final consumer price way higher than it should ideally be, considering the purchasing power of average Indians. Of course, high tax rates on sales worsen the situation, offset by rampant tax evasion. Having said that, I do not see any immediate implications for the retail sector, except for a tailwind-driven, slow erosion of sales towards e-commerce.

Over time, though, I see this situation as one of which both small retailers and big players like Future Retail (Big Bazaar) should be wary. Apart from both Amazon and Flipkart developing the significant (and automated) warehousing infrastructure that has worked so well in the U.S., and which has a role to play in the Indian context, I imagine that Flipkart under Walmart may test some omni-channel possibilities as well (despite regulatory hurdles), especially seeing the success of DMart and the reach of Big Bazaar. It would also be much better positioned than Future Retail and DMart to open physical stores in smaller towns — purely as a window to e-commerce as well as a means to ease the returns process.

A point that is often missed is that for the first time, all the leading players in Indian retail are strategic players and not VC driven start-ups. This means that the VC pressure that often accompanies a funded start-up to show growth will be replaced by logical, long-term horizon decisions. Be it Flipkart, Amazon, Big Bazaar or DMart, I now foresee a lot more real value creation for consumers, rather than a primarily discount-led play that is nothing but a transfer of value from one player to another. To that extent, I foresee that losses will stabilize, suppliers will be squeezed (beware small manufacturers), and loyalty programs and customer data will play a key role in market share battles. I personally look forward to enjoying the replicas of Cola wars all over again.

I have mixed feelings about what Walmart’s Flipkart deal shows about India’s regulatory direction. Despite clear mandates about not allowing foreign capital in retail unless it is a pure platform play, we now have a situation where Indian e-commerce is pretty much being run on foreign strategic capital. Both Walmart and Amazon have their own store brands as well, and at least in spirit, cannot be called pure platform plays. I would have loved to see an Alibaba being created and sustained in India. It seems, though, that Indian regulations are not geared towards creating homegrown behemoths in the internet age.

China has done a great job in this regard, by not allowing foreign players in internet-driven sectors, thus ensuring the rise of Chinese internet giants such as Alibaba, Baidu and Tencent. Without similar protection, basic economics dictate that established overseas players with deeper pockets will always win an internet platform battle, since by its very nature, the internet is geared towards promoting global monopolies or duopolies. Cases in point: Google, Uber, Amazon, Facebook, AirBnB, etc.

“In summary, once the Flipkart deal goes through, Walmart will inherit a business that is a leader in both high-margin business (fashion) and high-GSV business (phones).”

I have two final comments about the role of capital. No player (even a Big Bazaar) was able to create this kind of scale with Indian capital, so is Indian capital slow to react? Why would a Flipkart even get a chance to rise with both Reliance and Future Retail already present in the market?

My view is that, in general, the Indian mind is not focused on innovation. The education system based on a “repeat after me” style of teaching; the societal mindset which looks down upon a young person doing a summer job in a TGIF or McDonalds; the parental pressure to do a “job” rather than experiment with passion — all these ways of thinking carry forward in a typical Indian work environment. The result is that innovation has limited (or no) budgets allocated; the boss is always right; and no middle manager would want to be in a situation where, despite a grand vision and a potential payoff of billions, the risk of failure can be attributed to him. So, unfortunately, I do not believe that traditional Indian capital is geared towards a 20-year horizon. (I mark Reliance Jio as an exception — but that is a story for another day.)

The big takeaway from the present deal is that deep pockets win. This is a maxim that has been demonstrated over and over again, especially in B2C technology plays. A certain disdain for capital efficiency, a focus on gaining share and a relentless focus on killing competition define today’s leading companies. Flipkart would have been in the news for very different reasons had it not been for the timely fund infusion by SoftBank in 2017. Growth had stalled, the annual burn was high and unit economics were unsustainable. And yet, as part of the strategy of Lee Fixel of Tiger Global and Kalyan Krishnamurthy, Flipkart doubled down on not ceding market share to Amazon, whatever the capital burn. This in turn caught Softbank’s eye (whose earlier investment in Snapdeal was not working to its expectations).

As a result, Flipkart is now touted as a poster child of Indian start-ups. The critical question in today’s age, which may require some rewriting of textbooks, is: What comes first, the business plan or the capital? Walmart’s Flipkart deal suggests it is the latter.

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Walmart’s Acquisition of Flipkart: A Paradigm Shift in Retail Management Strategy—Current and Future Implications for Various Stakeholders

• First Online: 01 January 2020

Cite this chapter

• Deepal Joshi 2  

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In May 2018, Walmart—a brick-and-mortar retail giant from the United States—announced buying a 77% stake in Flipkart—India’s largest e-commerce platform—for US$16 billion. As one of the largest acquisition deals in the online space in the world starts to take shape, this study is an attempt to analyze its short-term and long-term implications for the various stakeholders. The focus of this study is on the managerial implications of this acquisition, which includes Walmart’s India strategy, effects of the deal on Flipkart—its founders, top management team and financiers—and implications for Amazon. The study also delves on the macro implications of this acquisition which include effects of this deal on online and offline retail sector in India, take-aways for the Indian entrepreneurial ecosystem, lessons for e-commerce governance in India and the online picture beyond e-commerce.

In the years to come, the Indian e-commerce sector would witness more competition from foreign players either directly or indirectly and hence, it makes sense for them to strategize accordingly. What happens in the online retail market in India in the long run is a maze with many twists and turns. However, the consumer will have the last laugh in the short run. It is not Indians v/s aliens in the Indian e-commerce. As the bulk would be owned by foreigners, India will be the stadium where the grand game will be played out … with the Indian consumers cheering from the stands.

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Joshi, D. (2020). Walmart’s Acquisition of Flipkart: A Paradigm Shift in Retail Management Strategy—Current and Future Implications for Various Stakeholders. In: Thakkar, B. (eds) Paradigm Shift in Management Philosophy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-29710-7_4

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Walmart is following the digital transformation trend with acquisitions all around the globe. Before the Flipkart deal, the company owned seven e-commerce sites along with its vast physical retail network. Flipkart, on the other hand, was an India-based start-up, which had been able to grow its marketplace operations into a multi-billion-dollar business in less than a decade. Flipkart’s penetration into the Indian market, which offered huge potential to Walmart with its 1.3 billion population and constantly growing economy, served as one of the main reasons for the deal. The deal was completed in May 2019, in which Walmart acquired 77% of Flipkart’s shares for 16 billion USD, along with a promise to inject 2 billion USD to further promote the growth of the business.

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Flipkart Case Study: The Rise Of Indian E-commerce Giant

Supti Nandi

Updated on: April 8, 2024

When it comes to success stories, the Flipkart Case Study has been the most anticipated one! Reason? A company from its humble beginnings rose to fame so immensely that now it has become synonymous with online shopping. Just like Google is synonymous with search engines and Paytm is synonymous with online payment in India!

Let me tell you that when a brand becomes synonymous with a process, then that’s solid evidence of success. 

Coming back to the point, Flipkart, the Indian e-commerce giant changed how you shop online. From its start, facing challenges, to becoming a big player in online retail, Flipkart’s journey is fascinating.

In this Flipkart Case Study, we will look at its early days, growth strategies, and the impact it had on how Indians shop. Also, its key moments include its joining forces with Walmart and still, it continues to evolve.

So, without any delay, let’s go through the Flipkart Case Study to understand  Flipkart’s rise and how it shaped the e-commerce landscape in India.

(A) What is Flipkart? A Brief Overview

Flipkart Private Limited, an Indian multinational e-commerce giant, has its headquarters in Bangalore and is incorporated as a private limited company in Singapore. The company’s journey began with a primary focus on online book sales. However, as it evolved, Flipkart expanded its product range to include diverse categories such as consumer electronics, fashion, home essentials, groceries, and lifestyle products.

In the competitive landscape of the Indian e-commerce industry, Flipkart is a key player, directly competing with major entities like Amazon India and local rival Snapdeal. 

Note: We have already explained “ Why did Snapdeal fail? Complete Snapdeal Case Study ” in detail. Check out the article for depth information. 

As of March 2023, Flipkart held a significant market share, boasting 51% dominance in the country’s e-commerce sector.

One notable aspect contributing to Flipkart’s success is its strategic acquisition of Myntra, which has solidified its position in the apparel segment. This move has been pivotal in establishing Flipkart as a dominant force in the online fashion market.

Moreover, Flipkart has successfully positioned itself as a strong contender against Amazon in the sale of electronics and mobile phones, showcasing its versatility and adaptability in catering to diverse consumer needs.

We will explain it in more detail in the upcoming sections.

For now, let’s have a look at Flipkart’s profile-

In essence, Flipkart’s trajectory from an online book retailer to a multifaceted e-commerce giant is marked by strategic expansions, key acquisitions, and robust competition in the dynamic Indian market.

(B) History of Flipkart

Flipkart’s foundation in India was laid in October 2007 by Sachin Bansal and Binny Bansal, both alumni of IIT Delhi and former employees of Amazon. The duo initiated their venture from a modest two-bedroom apartment in Koramangala, Bangalore. 

Fueled by their vision to revolutionize online retail, the initial investment of INR 2 lakh from each founder’s family set the stage for what would become a transformative journey.

Starting as an online bookstore with a nationwide shipping approach, Flipkart strategically focused on the sale of books. The company gradually gained prominence, processing 100 orders per day by 2008. This early success laid the groundwork for Flipkart’s expansion beyond books into diverse product categories.

Now, let’s briefly look at the history of Flipkart-

The journey from a small startup to an e-commerce giant included significant milestones such as the acquisition of We Read in 2010, further diversifying Flipkart’s offerings. This period marked the foundation of Flipkart’s presence in the Indian market, and its commitment to customer satisfaction and innovation paved the way for its subsequent growth, mergers, and acquisitions in the years to come.

(C) Growth Strategies: How did Flipkart rise in the Indian e-commerce market?

Flipkart rose in the Indian market by opting for numerous effective strategies. Go through the following table and you will get to know it-

Imagine a journey that begins with a small team, determined to redefine how people shop online. That’s the story of Flipkart, and it’s a tale filled with strategic moves and innovative thinking.

From the outset, customer satisfaction was at the forefront of Flipkart’s strategy. They understood the importance of competitive pricing, a user-friendly interface, and reliable delivery to win over the hearts of Indian shoppers. Introducing the “Cash on Delivery” option addressed trust concerns in a market where online payments were met with skepticism.

But Flipkart didn’t stop there. 

They introduced groundbreaking events like “Big Billion Days,” turning ordinary shopping into a festival of massive discounts. Recognizing the shift towards mobile internet usage, they optimized their platform for mobile devices, making shopping accessible to millions on the go.

Building a robust logistics network became a cornerstone for Flipkart. Timely delivery, coupled with innovative programs like “Flipkart Assured,” ensured quality products reached customers swiftly. The transition from an inventory-based model to a marketplace allowed third-party sellers to join in, expanding Flipkart’s product catalog without huge inventory investments.

Strategic acquisitions, including Myntra, Jabong, and PhonePe, strengthened their position in fashion and digital payments. Partnerships for exclusive smartphone launches boosted their visibility while securing funding from investors like Tiger Global and SoftBank fueled their growth, enabling them to compete globally.

However, every story has its challenges. Flipkart faced setbacks from competition, changing regulations, and allegations of unfair practices. Regulatory scrutiny became a part of their narrative as the government examined their business model.

In a pivotal moment, Walmart stepped into the story, acquiring a majority stake in Flipkart for $16 billion in 2018. This move not only injected additional resources but also brought global expertise to Flipkart’s journey.

From adapting to changing trends, embracing new technologies, and facing challenges head-on, to the transformative Walmart acquisition – Flipkart’s story is a testament to resilience, innovation, and the pursuit of customer satisfaction in the ever-evolving landscape of e-commerce.

(D) Impact of Flipkart on Indian Retail: How has it disrupted the traditional retail models?

Flipkart has significantly disrupted traditional retail models in India, reshaping the landscape and transforming how consumers shop. You have witnessed it too! Let’s look at the impact of Flipkart on the retail landscape of India-

The Confederation of All India Traders (CAIT) contends that Flipkart’s practices have adversely affected small retailers. Many traditional retail businesses have struggled to compete, resulting in job losses and a decline in the sector.

The Competition Commission of India (CCI) is currently investigating the allegations against Flipkart. If found guilty, fines or changes in business practices may be imposed. The government is also considering new regulations to promote fair competition in the e-commerce sector.

(E) Business Review: How Flipkart is Performing Businesswise?

Why do we always analyze the companies from a business perspective? You may wonder! Well, this is a crucial aspect of the case studies. It immensely helps investors, stakeholders, and decision-makers.

Looking at Flipkart’s conditions from a business perspective offers insights into its strategies, financial stability, market presence, and customer service approaches.

So, let’s look at the business aspects of Flipkart-

From the table, it’s evident that Flipkart holds a substantial market valuation of $37.6 billion, boasting a dominant 51% market share in India. The major shareholder is Walmart, holding an 80.5% stake. 

Despite a significant revenue increase from Rs.51,176 crore (FY22) to Rs.56,013 crore (FY23), expenses also escalated from Rs.54,580 crore to Rs.60,858.5 crore.

The company reported losses of Rs.3,371.2 crore (FY22) and Rs.4,890.6 crore (FY23). This data provides a snapshot of Flipkart’s financial landscape, showcasing its valuation, market share, shareholder structure, revenue, expenses, and losses in the specified fiscal years.

(F) Competitive Landscape of Flipkart

Flipkart operates in a highly competitive e-commerce landscape in India facing fierce competition from various players. The key rivals include-

• Amazon India: One of the major competitors, Amazon has a substantial presence in India, offering a diverse range of products and services. The battle for market share between Flipkart and Amazon is a defining aspect of the e-commerce landscape. We have thoroughly explained Amazon vs Flipkart . You can check that article for detailed information.
• Snapdeal: Though not as dominant as Flipkart and Amazon, Snapdeal remains a significant player, especially in certain product categories. The competition with Snapdeal adds to the dynamic nature of the market.
• New Entrants: The e-commerce sector in India has witnessed the entry of new players, both domestic and international, intensifying the rivalry and driving innovation in the industry.

Every year, Flipkart hosts a huge event called the “Big Billion Days” where they offer big discounts and special deals to attract lots of shoppers.

Flipkart’s focus is on making customers happy. They keep prices low, make the website easy to use, and deliver orders reliably. 

One smart move they made was changing how they sell things – instead of owning all the products, they let other sellers join their platform, giving customers more choices without needing a huge warehouse.

Along the way, Flipkart made important friends by acquiring companies like Myntra, Jabong, and PhonePe. These additions helped Flipkart become better in fashion and digital payments.

To keep up in this fast-changing world, Flipkart also uses technology well, especially on mobile phones. They invest a lot in making sure orders reach customers on time. Despite facing challenges, 

Flipkart’s story shows how they adapt and compete, making them a big player in India’s online shopping tale!

(G) Challenges Faced by Flipkart

Here are some of the tough challenges that Flipkart faced while commencing its operations in India-

These challenges reflect the dynamic nature of the e-commerce industry and the need for strategic agility by Flipkart.

(H) Post-Acquisition Developments of Flipkart

Let’s go through the post-acquisition developments of Flipkart following Walmart’s acquisition-

Thus, Walmart’s acquisition of Flipkart brought both opportunities and challenges. Simultaneously, it immensely helped in shaping the e-commerce ecosystem in India and impacted millions of consumers.

(I) Wrapping Up the Flipkart Case Study

In a nutshell, Flipkart’s journey from a small startup in 2007 to an Indian e-commerce giant is marked by strategic innovation, customer-centricity, and adaptability. Pioneering events like “Big Billion Days,” embracing a marketplace model, and strategic acquisitions have been pivotal. 

The company’s commitment to customer satisfaction, technological integration, and expansion into diverse segments showcase its resilience . The acquisition by Walmart in 2018 added global expertise, propelling Flipkart to a $37.6 billion valuation. 

As it ventures into new territories, Flipkart’s story remains a testament to its impact on India’s retail landscape and its ability to evolve with changing times!

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A Detailed Case Study on Largest Retail Giant Walmart

Avinash kumar mahato

Walmart is one of the largest retail companies in the world. It was founded in 1962 by Sam Walton. The headquarter of this company is situated in the United States. The main aim of the company is to provide consistent discounts, loyal customer service, and fast friendly service.

Walmart’s targets to expand its business in large cities as well as spread retail stores throughout the world. The retail stores of Walmart are divided into four divisions Walmart Supercenters , Discount Stores, Neighborhood Markets, and Sam’s Clubs warehouses. More than 100 million customers are visiting these Walmart Stores.

It is very uncomfortable for small merchants and communities in America. Walmart reaches their town and provides low-cost offers and the best customer service. It is a very bad condition for small merchants and businessmen in America. To downtown merchants, Walmart just comes and takes over all the small stores.

The purchasing power, aggressive marketing and provide low prices to the customer by Walmart, tend to pull out the business by the small merchants. Gradually the dream of Walmart company to become the largest retailer in the world is full filing day-by-day. But, they increase their business by the wrong actions and do not respect the culture or language of the communities.

Timeline Events Of Walmart company Business Model Of Walmart How Walmart Generates Revenue? Walmart’s Marketing Strategy Walmart’s - Flipkart Acquisition

Timeline Events Of Walmart company

The Timeline of events for Walmart company since its inception.

• 1960: Sam Walton opened his first discount store in Rogers, Arkansas.
• 1981: Walmart become the largest company in America .
• 1981: After becoming the largest company in America, they opened their stores in a small Louisiana town.
• 1983: Walmart opened its stores in Pawhuska and Oklahoma.
• 1986: Walmart claims that it can restore more than 4000 jobs to American Communities.
• 1989: They drive a campaign about Environmental awareness that Walmart is aware of land, water, and air.
• 1990: There are some activist groups against the expansion of Walmart’s store.
• 31st December 1990: Walmart’s closed its stores in  Louisiana.
• 5th November 1991: Walmart opened up its store in Lowa City.
• 6th October 1998: Walmart’s founder Sam Walton created a family charity named Walton Family Charitable Support Foundation.
• June 1999: Walmart takes over the ASDA Chain (a British supermarket chain), now they have stores and depots across the United States.
• 2001: Walmart becomes the world’s largest retailer, got huge sales of $191 billion.
• July 2003: Walmart opened its stores in Beijing and till now they have 22 stores in China and counting.
• 2006: Walmart closed its stores in Germany.
• July 2007: Walmart is operating more than 2500 retail units in Walmart International and more than 500,000 employers in some countries.
• 2007: By the ending of this year, they got a net $45 billion sales.
• 2008: Walmart’s opened its wholesale facility in India. This is the first step of Walmart's to sell products through its retail outlets in India.
• 2018: Walmart acquired Flipkart for $16 billion and owned 77% stake in India’s largest online retailer brand.

Business Model Of Walmart

There are different business models that are followed by successful companies which vary from time to time. The business model of Walmart is based to eliminate the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs. The main motive of Walmart's business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

The main marketing strategy of the company is based on leading on price, be competitive, and deliver a great experience by the motto of Everyday Lower price.

Walmart has three important segments.

Walmart U.S

Walmart U.S is operated in the U.S. They provide customers with products and services that are not present physically in stores. They provide their services via the website and mobile application . The website of Walmart company has a special feature that provides a third party to sell products. The company operates its business on various platforms like supermarkets, discount stores, neighborhood markets, and e-commerce websites .

Walmart International

Walmart International is also divided into three sections which are retailers, wholesalers, and other small projects. These sections are also divided into various sections such as supermarkets, warehouses, electronics, apparel stores , drug stores, digital retailers, and many more.

It is the online platform of Walmart’s company i.e., “ samsclub.com ”. This club is consists of memberships of the only warehouse retailer operations. This section includes warehouse clubs in the U.S, as well as samsclub.com.

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How Walmart Generates Revenue?

The Revenue Model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.

Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business. The two main sources of revenue are Product revenue and Service revenue .

Walmart's revenue in the fiscal year ending January, 2020 was $524 Billion.

Product Revenue

Walmart has a wide range of products in various categories:-

• In the grocery category, they have products like Daily needs products, dairy products, frozen foods, bakery, baby products, beauty aids, and many more.
• Health and wellness category have products like Pharmacy products and clinical services .
• The entertainment category has products like electronics products, toys, cameras, movies, music, videos, and books.
• Stationary, paints, and hardware, Automotive, sporting goods, crafts, and seasonal merchandise.
• Apparel categories include apparel for men, women, boys, girls, shoes, jewelry, and accessories.
• Home appliances include home furnishing services, home decor, livings, and horticulture.

Service Revenue

Walmart also provide services to generate revenue in various fields:-

• They provide financial services like prepaid cards , money orders, wire transfer, money transfers, bill payments, and so on.
• VUDU movie streaming services: This is a subscription-based OTT platform for buying and renting movies, watching TV shows on demand.
• Clinical Services include primary health care, Physical and Wellness checks, Clinical lab tests.
• Health Insurance services

Walmart’s Marketing Strategy

Walmart's Business Strategy Analysis is one of the most important parts of any business whether it is small or large. It is very important to make an effective marketing plan to survive in the market . Walmart uses the principle of business marketing penetration method which is used to capture the market by offering lower prices and competitive prices to the consumers.

The company follows cost leadership which makes a huge profit for the company. The company provide low prices to the consumer and treated all the customers as king of the market to maintain the relationship between Walmart and the customer.

According to Walmart, there are four factors that drive the customer’s choice of retailer:

• Assortment.

One more reason for the success of Walmart is purchasing products from local manufacturers in a bulk in one go and selling in small quantities. Buying from local manufacturers is the benefit for both. Buying more products from local manufacturers means they are creating more jobs and they reduce the unemployment rate. They should provide good quality products at a lower price to maintain a good relationship with customers and continue to get profits in business.

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Walmart’s - Flipkart Acquisition

Flipkart is one of the leading Indian e-commerce brands. In 2018, Walmart takes 77% stakes in India’s largest e-commerce company Flipkart and makes the world’s biggest purchase of an e-commerce company.

After this acquisition the future of eCommerce industry in India has become more competitive than ever.

The three main reasons for the acquisition of Flipkart are Flipkart’s leadership in some lucrative sections, its payment platform and the company’s talent pool.

Walmart’s world’s largest company is to continue to expand its business by improving its strategies day-by-day. The main reason for the success of Walmart is the EDLP system i.e., Everyday Low Price. They are working aggressively to maintain profits, market shares, and provide low prices to consumers. There are many business ideas to gain profit from a market. All depends on how you play the cards for a profitable business.

Walmart has made acquisitions of 28 organizations and has 16 sub-organization.

Feel free to reach us and share your understanding and views on the case study of Walmart. We would love to hear from you.

What is the business model of Walmart?

The business model of Walmart is based on eliminating the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs.

What is the motive behind Walmart's Business Strategy?

The main motive of the Walmart business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

What is Walmart's Market Strategy?

How does walmart generate revenue.

The earning model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business.

What are the main sources of revenue for Walmart?

The two main sources of revenue are:

• Product revenue
• Service revenue

Is Walmart owned by China?

The Walmart branch in China is majority Chinese-owned. But predominantly it is owned by Sam Walton's many children.

Why is Walmart so cheap?

They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.  Hence, by selling in high volume they can sell it at a cheap price and still gain profit.

What are the sub-organisations under Walmart?

There are 16 sub-organisations of Walmart. Some of them are:

• Walmart Labs
• Seiyu Group
• Walmart Canada

What are the top acquisitions of Walmart?

Walmart has acquired 28 companies. Some top acquisitions are:

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Walmart completes acquisition of India’s Flipkart Walmart completes acquisition of India’s Flipkart

$16 billion deal gives Walmart huge online opportunity in burgeoning economy

August 20, 2018

Walmart Inc. and Flipkart Group this weekend announced the closing of the $16 billion deal that makes Walmart the largest shareholder in Flipkart, with 77% of shares in the India-based e-commerce company.

The  deal was first revealed back in May and closed after receiving the necessary approvals.

“Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart,” said Judith McKenna, president and CEO of Walmart International. “Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world.”

Flipkart is India’s top e-commerce player, ahead of No. 2 Amazon. Founded in 2007, Flipkart brings to the table a powerful technology foundation, including artificial intelligence, and leadership in such market segments as electronics, large appliances, mobile, and fashion and apparel. The company’s supply chain arm, eKart, serves more than 800 cities and makes 500,000 deliveries daily.

Related: Walmart seizes on Flipkart’s e-commerce potential

According to the company, the Flipkart investment transforms Walmart’s position in a country with more than 1.3 billion people, strong GDP growth, a growing middle class and significant runway for smartphone, internet and e-commerce penetration. As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments by Walmart will support national initiatives and will bring sustainable benefits in jobs creation, supporting small businesses, supporting farmers and supply chain development and reducing food waste.

Flipkart’s existing management team will continue to lead the business. Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. The board will work to maintain Flipkart’s core values and entrepreneurial spirit, while ensuring it has strategic and competitive advantages, according to the two companies.

Outside of Walmart’s shares, the remainder of the business is held by Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp. Moving forward, Flipkart’s financials will be reported as part of Walmart’s International business segment.

Related: Kroger partners with China e-commerce giant Alibaba

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined  Supermarket News  in 2018 after serving in managing and executive editor capacities at leading B2B media brands including  Convenience Store News ,  License Global  and  Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of  Supermarket News  and  Nation’s Restaurant News .

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter  and LinkedIn .

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End-to-end Case Study on Marketing Strategy of Flipkart and Advertising Campaigns

By Aditya Shastri

About flipkart.

Flipkart is an E-commerce website, founded by Sachin Bansal and Binny Bansal in 2007. When Flipkart was launched, initially the aim was to sell books before expanding into other product categories such as consumer electronics, fashion, home essentials & groceries, and lifestyle products. In March 2017, Flipkart held a 39.5% market share of India’s e-commerce industry. In August 2018, U.S.-based retail chain Walmart acquired an 81% controlling stake in Flipkart for US $ 16 billion, valuing it at $20 billion.

Flipkart is India’s answer to Amazon. Flipkart is one of the most visited E-Commerce Websites and just like Amazon, the company has rapidly become one of India’s original unicorns. The company is now owned by Walmart and is one of India’s huge success stories.

Let’s look at the marketing strategy of Flipkart.

Marketing Strategy of Flipkart

The marketing strategy of Flipkart focuses on every single touchpoint their customers are present. It uses the majority of its budget on various digital channels involving both paid and organic marketing. Moreover, since India has recently experienced digital transformation, the efforts of Flipkart are paying off.

Flipkart also invests intensely in celebrity endorsement and influencer marketing . India is crazy over Bollywood and Flipkart uses this to raise awareness about their brand and to market their services. Ranbir Kapoor, Alia Bhatt, Varun Dhawan, and Shraddha Kapoor have all been brand ambassadors who were predominantly featured in Flipkart’s commercials and digital marketing campaigns.

Let’s unveil the digital marketing strategy of Flipkart.

Flipkart is considered to be one of the best platforms for online shopping. Whether we talk about gadgets or apparel, Flipkart has always shown up their best quality service. Flipkart has mainly grown its business through a digital marketing strategy . Let’s discuss, What strategy do they follow? How do they convert their one-time customers to loyal customers? How does Flipkart manage to increase the number of its customers? This article will help in the analysis of the tools used by Flipkart in their Digital Marketing Strategy. IIDE , Google, & Coursera are a few digital marketing institutes among the top institutions to learn digital marketing .

Target audience

Flipkart targets anybody who surfs the internet and who does not have time for shopping. Though its target audience is scattered over various market segments as consumers from all demographic backgrounds can find products that appeal to their interests, 75% of its audience is between the age group of 16 – 55.

It lays focus on people seeking variety and who prefer to experience a hassle-free shopping approach from home. It tries to expand its services to every location in the country where deliveries are possible. The smart marketing strategy of Flipkart seizes the attention of its audience who hold the purchasing power, to influence that online shopping is better than traditional shopping.

Search Engine Optimization

Flipkart being the largest online retailer in India has worked immensely on optimizing its platform to rank on the search engine. Every time someone searches for a product, Flipkart appears among the top 2 results, and it is all possible because Flipkart has put a lot of effort into SEO.

As per Ubersuggest, a keyword tool by Neil Patel, Flipkart has monthly organic traffic of 3,90,246,762 and a strong domain authority of 90.

The domain has a total of 66,547,531 backlinks, These stats are really amazing.

The graph below shows the monthly search volume of Flipkart. As per the latest results, Flipkart had a total of 55.6 million searches, out of which 11.3 million were mobile searches and 44.3 million were desktop searches.

Ubersuggest gives an idea of keywords for which Flipkart is being searched over the internet. The graph below shows different keywords and their search volume.

As you can see, smartwatches have a search volume of 1.8m which is followed by the Flipkart sale which has a volume of 1.5m. These are the top keywords that people search on the internet.

Keywords in URL

Flipkart checks the top searches of people, it then takes the top keywords and creates web page URLs for them. This is a very good marketing strategy for Flipkart to make sure its website ranks .

Below is the list of keywords for which Flipkart.com ranks.

Backlinks of Flipkart

Flipkart gets backlinks from over 66 million unique domains, which is simply amazing. All these backlinks work as a backbone for Flipkart in ranking number 1 on the search engine. Ever wondered how backlinks help in search rankings? Read this blog on what are backlinks .

Backlinks for Flipkart have increased rapidly over time. The graph below shows how from December 2019 to August 2020, backlinks have grown from 73.3 million to 98.7 million.

Another important aspect of Search engine optimization is Site speed. Site speed is crucial to your SEO health. Every additional 0.5s it takes to load your site drastically increases the % of visitors that will leave your site.

Below you’ll see the time it took for Flipkart to load on desktop and mobile devices using a 4G connection speed.

Keywords on the web pages

Keywords that include products’ names and phrases like ‘Best price’ tell the search engines that these pages have content related to these search queries.

Collaborations & Celebrity Marketing

Flipkart is known for its collaborations. It also invests heavily in star power and celebrity marketing. Flipkart keeps collaborating with various famous figures from time to time. One of the notable and more recent collaborations is with Ranbir Kapoor & Alia Bhatt on “#IndiaKaFashionCapital.”

Under this campaign, the company invites fashion enthusiasts from all over the country to upgrade their style with the latest trends from Flipkart. Via a meaningful media mix, using styled fashion quotient and targeted communication towards their consumers, Flipkart Fashion’s brand ambassadors, Ranbir and Alia, educate consumers about always being ahead in their style game by ‘Wearing The Next.’ The pair were seen in a variety of engaging and interactive formats, ranging from short digital content to traditional TVCs discussing the benefits of shopping on Flipkart Fashion.

Social Media Marketing Strategy of Flipkart

Flipkart is very much active on all social media platforms. As of August 2020, Flipkart has –

-93,96,244 followers on Facebook,

-1.7 Million followers on Instagram,

-2.4 Million followers on Twitter.

When it comes to Instagram, Flipkart has several accounts for different things, like a proper account dedicated to Tech, Clothing, and others. When it comes to businesses, be it for a product or different services, the key highlight point for the customers is Feedback and Customer Reviews. Flipkart has given special attention to that by having a separate account that just focuses on Customer Stories named as FlipkartStories .

Twitter Strategy

You’ll be surprised to know that out of all the platforms Flipkart pays special attention to Twitter. Flipkart is known to follow a fixed pattern for communication for all the platforms but when it comes to Twitter, they keep running mini-campaigns from time to time like #SareeTwitter

Apart from fun campaigns, Flipkart has a 24*7 available Customer Support System on Twitter where they address complaints and queries of their customers. Next time you face a problem with Flipkart, you know what to do.

Youtube Marketing

Covid Marketing Strategy of Flipkart

The COVID-19 crisis has put everyone in a fix. During this time the demand for online services was high due to obvious reasons, so Flipkart along with other e-commerce platforms had to deliver products keeping their safety as well as their customers’ safety in mind.

To ensure the safety of their customers Flipkart started a no Contact Delivery process #FlipkartForIndia , where products will get delivered after proper sanitization and health & hygiene checking.

To appreciate and support the frontline warriors, Flipkart in collaboration with its parent company Walmart, donated medical supplies worth Rs 46 Cr to fight the battle against CoronaVirus in India. That’s not all to get the essentials delivered to its customers safely and as soon as possible, Flipkart partnered with Uber and Meru Cabs in various cities across the country. Along with all this Flipkart #SmartBuy also launched hand sanitizers and surgical masks to ensure there’s no shortage in this battle.

Flipkart didn’t do all these just for their Brand Promotion and that’s clear by the way they have promoted common people who were out on the road as support for the needy and the warrior on their Social Media Platform and labeled it as #FlipkartBrightSide. Flipkart shared stories of common people doing their bit, for example :

1. To aid the strenuous efforts taken by policemen in Kerala to enforce the lockdown, Anand and Sivan Macro offered them a tea break! The father-son duo set up a makeshift tea kiosk in their car, distributing nearly 200 cups of tea every day.

2. Renowned ophthalmologist Shibal Bhartiya in Delhi assembled a team of volunteers and has distributed over 2,000 packets of biscuits, 4,600kg of dal-chawal (uncooked), 2,000 soap cakes, and 500kg detergent to the needy.

Marketing Campaigns of Flipkart

Frequently bought together.

Flipkart loves to understand and study customer behaviour and keeping that in mind they have started a series of ‘Frequently Bought Together’. In this, Flipkart, based on customer behaviour and purchase pattern, shares the items which are frequently bought by the audience from the app. Check out the image below

Don’t you think it’s a great marketing strategy of Flipkart to market products by having a psychological effect, where they tell you to opt for other products?

Flipkart Kidults

A discussion on the marketing strategy of Flipkart is incomplete without the mention of their campaign Kidults. It was launched way back in 2014 and it’s yet to end. Well, that itself speaks about the success of this campaign. Right? The reason behind such an impressive track record is the refreshing concept where Kids act like adults.

Flipkart launched a new campaign featuring actor Alia in the role of a ‘FlipGirl’ superhero to convey the ease of shopping and trust for customers. The campaign aimed to highlight the brand’s commitment to making premium brands accessible through faster delivery and establishing itself as the go-to destination for online shopping.

#MultiPurposePurchase

When it comes to merging two products or telling how to fully utilise a product, Flipkart is a master at it. Check this out

This is how you can fully utilize a slipper brought from Flipkart. Isn’t it an appealing and catchy way to market products?

All Cookie lovers here would totally relate to this. We Indians have a thing for boxes especially the food boxes, we tend to keep them once empty and utilise it for different purposes. This is how simply Flipkart is connecting with the masses.

Special Occasions

The brand follows a Social Media Calendar and makes the most of the Special Days, right from universally celebrated occasions like Father’s Day, and Sleep Day to days of national importance like Gandhi Jayanti and Independence Day. Usually, e-commerce platforms like Flipkart and Amazon have special discounts and offers on such occasions, so these posts are not there to drive traffic but to maintain a social media presence and act as a reminder to shop.

Flipkart’s VR Campaign

We all are stepping into the world of artificial reality and virtual reality slowly and we have already seen the impact and use of filters by brands for Instagram Stories. Flipkart is always up and ready when it comes to adapting to new technologies. Flipkart discovered the right opportunity to make the most of VR technology by adding it to the Big Billion Sale Campaign. No doubt that the Big Billion Day campaign has massively contributed to Flipkart’s marketing success and they were able to attain the goal much more effectively with the advanced VR technology.

The campaign was launched when Full Moon Day was nearing as it is viewed auspiciously and closely associated with the festive calendar in India. Their ad campaign ran on days when there was no full moon, but Flipkart privileged its users to see a full moon shaded by clouds. Gamification prompted the users to blow into the microphone to move the clouds away revealing both the full moon and an exciting new offer. This campaign was like something never experienced before and it left the audience thrilled and excited, earning Flipkart 5 million views and a CTR of 2 %

Fun Engagement Activities

Flipkart keeps their audience engaged with different types of fun activities and with that being said they don’t forget to mix it up with something which is trending. For example, during this lockdown many things have gone viral and trended, one such thing was Dalgona Coffee, remember? This is what Flipkart did

Apart from these, Flipkart is not behind when it comes to Current Affairs. Flipkart released this logo during the Pride Month

With months of lockdown and everyone in their house, there was a desperate need for some products, see what Flipkart had to say about it

During the lockdown, the online delivery rate was on the rise, but at the same time safety was a concern, considering that the brand delivered a perfect message for No-Contact Delivery.

Paid Advertising by Flipkart

The marketing strategy of Flipkart also includes another important component which is paid advertising:

Google Adwords

When it comes to Search Ads, Google Adwords is the go-to option. Being an e-commerce platform, Search Ads on Google play a key role in both sales and bringing in traffic to the site. Today users just go on Google and search for the product and if you’re not in the top results, you’re missing out. Thus, Google Ads are a must. Flipkart runs display, search, and shop ads the most, by carefully studying and targeting the right set of keywords. Here’s an example of how Flipkart is running ads on Google for random searches and driving traffic and a potential customer.

For E-Commerce platforms, Google Ads is a medium to drive attention toward their platform by appearing on the search results of other platforms. With Amazon giving neck-to-neck competition, getting your Google ad copy is crucial. Flipkart uses 3rd party platforms to run ads and advertise on different websites, majorly to remarket to those customers who add products to their carts or just wishlists. Once a user clicks on any of their Google ads, Flipkart re-targets them across social media platforms using the Facebook Pixel via ads.

Flipkart’s Affiliate Program

Affiliate marketing is performance-based marketing by which a person can earn rewards in the form of a commission for marketing another person’s or company’s products. Flipkart delegates the responsibility of marketing its products to third parties known as affiliates and shares a part of the profit on the sale of the products. Affiliate programs of e-commerce portals like Flipkart and Amazon are some of the legit ways to earn money online during this lockdown.

Flipkart portal offers almost everything needed by a commoner. From beauty to baby care products to fashion to electronics and beauty to baby care products, everything can be found on this online portal. All you need is decent traffic on your website or blog. You can then join Flipkart’s affiliate program and market a range of products in your niche. Flipkart offers one of the best affiliate marketing programs through which people are earning around Rs.25,000 to Rs. 80,000 per month. -15% of the product’s price. To know more about the commission percentage for each product category, you can go here .

Flipkart Affiliate Marketing Commission

Below we are mentioning a few product categories and their commission percentages:

• Books and e-learning (10%)
• Gold and silver coins (0.1%)
• School supplies and toys (10%)
• Baby care products (10%)
• Fragrances and Beauty products (10%)
• Household supplies (10%)

To know more about the commission percentage for each product category click here Affiliate programs are perfect for larger stores and eCommerce sites, and this is one of the highly successful marketing strategies of Flipkart.

Remarketing

Remarketing is any marketing and advertising strategy that re-establishes a connection with potential buyers after they visit the store’s website. Remarketing existed before the arrival of the Internet, however, its usage has shifted from offline to online and it is highly beneficial and inbound. Usually, visitors visit the online portals and leave the site without completing the purchase. Remarketing is done by displaying ads to such potential customers across the digital platforms urging them to convert.

Flipkart has a huge customer base that does window shopping and checkout for specifications for the products. Yet, not all products viewed are bought by the customers. certain products are even revisited by the customers several times after hours of viewing them. It indicates a strong intent to buy when customers leave products in the cart.

The survey says, out of 100 customers who shop online, 30 of the customers add products to the cart.

That’s 30% of customers who are interested in buying some product! That’s a huge number. However, only 3% of such customers buy the product at a later stage. Around 27% of such users leave those products just like that. Remarketing is employed for targeting such an audience via ads.

So be it billboards, tv commercials, or digital ads, Flipkart has always been on the front seat in developing marketing strategies around existing trends. Its smart yet emotionally woven ad campaigns leave a strong impression in the hearts of Indian audiences. Equally giant competitors might threaten Flipkart’s business but it will definitely continue to rule the E-commerce industry for decades to come. All this is because of the brilliant marketing strategy of Flipkart.

If you liked this case study, on the marketing strategy of Flipkart then do share it with your friends. Also, If you are interested in digital marketing or a student with an understanding of the digital world, you should check out Free Digital Marketing MasterClass by IIDE.

What are your thoughts on the marketing strategy of Flipkart? Please feel free to share in the comment section below. Thanks for reading!

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

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Aditya Shastri

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

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Flipkart Case Study: Marketing and Advertising Campaigns

Flipkart is an e-commerce Indian-based online marketplace, founded in 2007 by two friends Sachin Bansal and Binny Bansal . The fact is that Binny Bansal is a former employee of Amazon. Sachin had referred Binny to Amazon, which till then had been working in the company for more than a year.

When Flipkart was launched, it was initially aimed at selling books before expanding into other product categories such as consumer electronics, fashion, home essentials and groceries, and lifestyle products.

According to Redseer, in October 2023, Flipkart had a 64% market share of India’s e-commerce industry.

Flipkart, currently with a strength of 33,000 employees, has 295 million registered users and over 12 million daily visits. Flipkart’s technology has enabled it to deliver 8.5 million shipments per month – and that number is increasing year on year.

According to Crunchbase, The total funding amount to be received by Flipkart by 2023 is US$ 12.9 billion.

On This Page:

Flipkart: Warehousing & Shipments

Logistics is one of the most important aspects of any successful e-commerce platform. Flipkart ships more than 100000 items in a day which makes managing the logistics an overwhelming task for the company.

Also, the cost of delivery is paid by the company itself, making logistics a financially complicated issue. Hence in order to successfully manage the logistics. Flipkart uses its in-house logistics known as eKart‟ (EKL).

The e-commerce company created E-Cart as a personal brand in April 2009 to serve the B2C side of WS-Retail, Flipkart and currently reaches consumers in around 150 cities.

eKart currently provides services like Delivery Logistics, Reverse Logistics and cash on Delivery. It also provides customer support and technology integration for order tracking, customer notifications, and reporting.

Digital Marketing Strategies

Let’s look at how Flipkart used digital marketing to promote its products and services.

Flipkart mostly targets Indians who use the internet and don’t have time to visit offline shopping stores. Although its target audience is scattered across different market segments as consumers of all demographic backgrounds can find products of interest to them, 85% of its audience is between the age group of 16 to 55 years.

Search Engine Optimization 

If we talk about organic traffic, Flipkart has achieved tremendous results through search engine optimization. 

Flipkart is India’s largest online retailer and has worked hard to optimise its website for search engines. Flipkart appears in the top 5 results for every product search, and this is possible because Flipkart has invested heavily in SEO.

Social Media Marketing

Flipkart continues to win over the audience on social media, duly manned by celebrity influencers apart from its roster of brand ambassadors from time to time. They often run campaigns for specific sales, opportunities, and brands.

• Flipkart gets 79.08% of website visits from Youtube.
• From Facebook 7.71%.
• 3.99% of People prefer to share Flipkart products on WhatsApp with friends and relatives. which is a sign of brand management and trust in Flipkart.

Video Advertisement on YouTube

As the data mentioned above shows that Flipkart gets the most traffic from YouTube. So now have to look at and understand the Flipkart video advertising strategy.

Celebrities Marketing Campaign

Flipkart is known for its collaborations. It also makes particular investments in star power and celebrity marketing. Flipkart keeps on collaborating with various famous personalities year after year.

One of the memorable and recent collaborations was with Ranbir Kapoor and Alia Bhatt on “#IndiaKaFashionCapital”.

Television Ads

Flipkart and its subsidiaries – Myntra and PhonePe – have seen a significant increase in their television commercials since August, when they were acquired by US retail giant Walmart. The last time Flipkart launched a branding campaign with the tagline ‘Ab Har Vish Hogi Puri’ was when it spent massive marketing dollars to create brand awareness.

Affiliate Marketing

Affiliate marketing is commission-based marketing by which a person can earn rewards in the form of commission for marketing the products of another person or company.

Flipkart undertakes the responsibility of marketing its products to third parties known as affiliates and shares a portion of the profit on the sale of the products.

Affiliate programs of e-commerce portals like Flipkart and Amazon are some of the legitimate ways to earn money online in 2022. The Flipkart portal provides almost everything needed for a common man.

From beauty to baby care products to fashion to electronics and from beauty to baby care products, everything can be found on this online portal. All you need is good traffic to your website or blog.

Flipkart vs Amazon

The presence of two of the biggest brands in the Indian market has made the industry highly competitive. Since both have entered the private-label business to increase sales. Both introduced unique features and value-added services and expanded into specific areas to compete with their businesses.

Although Amazon is a world-recognized brand but in India, Flipkart is always 1 step ahead of Amazon.

SWOT Analysis: Flipkart

• The supply chain
• Strong brand value and brand awareness
• Advertising and promotion
• Strategy acquisition
• late delivery
• IT Infrastructure

Business Model of Flipkart

Flipkart, which has redefined shopping in India, operates on a B2C (business-to-consumer model). Flipkart started with a direct-to-consumer model selling books and some other products, before turning to a marketplace model that connects sellers and buyers and expands its catalogue.

Today, it sells everything from smartphones to clothes to furniture to refrigerators to FMCG accessories – and yes, books too.

Flipkart claims to have millions of sellers from across India who list their products in over 80 categories. The average consumer may not care about who the seller is and the relationship he has with Flipkart. Whereas the seller who hasn’t exactly reached out to the customer can now do so thanks to Flipkart’s platform. To facilitate this transaction and fulfil the order, Flipkart charges different percentages as the commission fees from the seller.

List of Flipkart Subsidiaries

Here is the list of 10 Flipkart subsidiaries with a short description and the date of acquiring these companies.  

• Myntra – It’s another ecommerce online store acquired by Flipkart in May 2014. 
• PhonePe – is an Indian digital payment and financial technology company that Flipkart acquired in April 2016.
• Cleartrip – This is a travel booking search engine globally famous for its incredible service. Flipkart acquired 100 per cent of Cleartrip’s shareholding in April 2021.
• Flipkart Health – This is an online pharmacy, also known as SastaSundar. Flipkart acquired SastaSundar in December 2021.
• Ekart – is a logistics company that delivers 10 million orders per month. Flipkart acquired eKart in 2015.
• Shopsy – Like Flipkart, shopsy is another ecommerce platform that Flipkart acquired in July 2021. 
• Flipkart Wholesale – This platform mainly focuses on B2B, in other words, WS retail. We have yet to learn the old name of this company, but Flipkart acquired it in 2012. 
• Jeeves-F1 – Jeeves & F1, both part of the Flipkart Group of companies, are among India’s most prominent third-party neutral service providers offering comprehensive lifecycle management for various categories, including Mobility Consumer Electronics, Home Appliances, Furniture, IT & IT Peripherals, AV & Enterprise Solutions. 
• Yaantra – is a single window stopover that caters to all smartphone queries, such as broken glass, water damage, software problem, power issue etc. with the best in the industry services. Flipkart Group acquired electronics ecommerce firm Yaantra in January 2022. 
• ANS Commerce – is India’s #1 full-stack e-commerce enabler helping brands sell online. Flipkart acquired ANS Commerce in June 2022 to strengthen its e-commerce system via technological innovation. 

In Conclusion

However, the situation is not as dire as it may seem. Flipkart’s magical Bansal touch may have disappeared, but its collective expertise and experience to deal with the Indian audience live on. The quick solution to tackle COVID-19 and offering essential items to the cities by Flipkart is commendable. However, e-retailers should seek to gain their market share by winning the trust of their customers rather than money.

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