Flipkart Case Study- Business Model and Marketing Strategy                                          

Welcome to our yet another blog, today we bring you yet another success story of a startup.

When it comes to online shopping or e-commerce businesses, in recent years various platforms have evolved. Some of the most widely used sites for online shopping are Amazon, Flipkart, Myntra etc.

One of the primary reasons for the popularity of online shopping is convenience. Shoppers can browse and make purchases from the comfort of their homes using computers, smartphones, or tablets. There is no need to visit physical store hours to consider, making it accessible 24/7.

In today’s blog, we shall be focusing on one of the above-mentioned online shopping apps, how it evolved, the people behind its success, what is the business model and the efforts that the app makes to keep its position intact in the market.

So, let us talk about FLIPKART.

How Flipkart Originated

Flipkart, an e-commerce company was founded in the year 2007, by Mr Sachin Bansal and Binny Bansal. Both were alumni of the Indian Institute of Technology, Delhi. They had been working for Amazon earlier. With a desire to start something new and of their own, they launched Flipkart with a capital of Rs. 4 lakhs. The plan was simple – customers would place an order for books online through Flipkart and would receive them at their doorstep

Now, Flipkart functions entirely in India, with headquarters in Bangalore, Karnataka and earning 4500 crores annually. In no time, Flipkart also started offering other products like electronic goods, stationery supplies, fashion, home essentials and groceries.

The company now gives employment to around 22,000 people. It has a registered consumer base of more than 400 million and the company claims to deliver more than thirty thousand parcels per day.

Currently, Flipkart stores its products in its warehouses across the country. They have a delivery network across 27 cities. It helps the company to deliver orders to their customer within an appropriate time.

With passing time, internet penetration has grown across the world, hence it also acts as a booster for e-commerce platforms as it provides a secure payment option to customers.

What led to the growth of Flipkart was increasing internet connectivity in rural and urban areas.

Availability of a wide range of products from anywhere and that too at the customer’s doorstep with feasible and affordable prices.

Equipped work schedules of the young population led to more online and indoor shopping which eventually helped Flipkart grow at a faster pace.

Though, Flipkart currently faces tough competition from Amazon, what remains is the main objective is to create a unique image in the consumer’s mind.

After having an idea about the company’s evolution and how it created its own space in the Indian e-commerce markets, let’s dive deep into what are the marketing strategies that Flipkart adopted.

Business Model of Flipkart

The Flipkart business model is a comprehensive framework that leverages diverse revenue streams and strategic innovations, making it a leader in India’s e-commerce industry.

• Marketplace Operations: Flipkart connects millions of sellers and buyers, earning commissions on each sale. Sellers list products on the platform, while Flipkart facilitates transactions.
• Logistics Services: Flipkart’s subsidiary, Ekart, ensures efficient deliveries and returns. Sellers can use these services for packaging, storage, and shipping, contributing to Flipkart’s revenue.
• Advertising Solutions: Flipkart provides sellers with advertising options like sponsored product listings and banner ads. These services boost visibility and drive sales.
• Subscription Model: Flipkart Plus offers benefits like free delivery and early sale access, fostering customer loyalty and generating subscription revenue.
• Financial Services: In 2024, Flipkart introduced UPI services in partnership with Axis Bank, streamlining transactions and expanding financial offerings.
• Technological Innovations: AI-powered tools like Flippi enhance customer engagement, while Flipkart Green promotes sustainable shopping.

Despite challenges, including regulatory scrutiny and competitive pressures, Flipkart maintains a 48% market share. Its blend of marketplace efficiency, logistics, and innovation continues to define the Flipkart business model, solidifying its leadership in the Indian e-commerce landscape.

Read Also: Nykaa Case Study: SWOT Analysis, Business Model and Marketing Strategy

Subsidiary Companies of Flipkart

Flipkart has acquired controlling stakes in numerous companies over the years, turning it into an e-commerce giant. Some of the prominent companies are:

Name	Stake	Industry	Acquisition year
Myntra	100%	Fashion	2014
Ekart	100%	Logistics	2015
Flipkart Wholesale	100%	B2B Cash & Carry	2020
Cleartrip	80%	Travel	2021
Shopsy	100%	B2C E-Commerce	2021
Flipkart Health+	75.1%	Healthcare	2021

Most of the companies have been acquired after Walmart took a controlling stake in Flipkart in 2018. Over the years, Flipkart has made 22 acquisitions and 27 investments in businesses operating in different industries.

Did you know?

Flipkart Health+ was formerly known as SastaSundar Healthbuddy Limited before being rebranded after its acquisition by Flipkart in 2021. It is also one of the only companies under the Flipkart group that has been listed on the Indian stock exchanges. It trades under the name “Sastasundar Ventures Limited” and has a market price of ₹241 and a market capitalization of 768 crores as of 19 March 2025.

Marketing strategies of Flipkart

The “Flipkart Marketing Strategy” focuses on diverse product offerings.

1. Product:

The company generally offers its customers with wide range of products. It deals in almost all segments except for automobiles. Flipkart has recently started a grocery store to increase its market share.

The major reason Flipkart for being the most used app for online shopping is that the app is user-friendly which gives the user a phenomenal experience while browsing.

2. Pricing:

The company provides several filters for the products as per the price range selected by the customer, and easy payment options. Flipkart was the first company to provide. cash on delivery option to its users in the year 2010. The products are delivered on time and are of good quality since they are packed with utmost care to avoid any sort of damage.

The 15-day exchange policy of the company gains consumers’ confidence in buying products. Recently launched pay later option with a minor convenience fee, helps the customer to easily convert their buying into EMIs. The company also offers exclusive discounts and price drops on the occasion of Indian festivals and sales.

3. Promotion:

Flipkart can target every age group of audience irrespective of what product they are looking for online. The smart marketing strategy of Flipkart grabs the attention of its viewers who hold the power to buy and are aware that online shopping is better than offline shopping since it provides them with much better options to explore than any retailer would ever give them.

You must have heard about the term SEO; it stands for search engine optimisation.

Now what exactly is SEO It is a set of strategies and practices used to improve a website’s visibility in search engine results pages like Google, Bing, and Yahoo. The primary goal of SEO is to increase non-paid traffic to a website and boost its overall online presence.

As per the latest findings, Flipkart tops the online search results with a total of 55.6 million searches, out of which 11.3 million were mobile searches and 44.3 million were desktop searches. Also, when it comes to SEO, the loading speed of the site plays an important part since it will decide if the users will visit your site or not. Flipkart does this job great. It just takes 2 seconds for the site to load the content for its consumers.

To promote the app Flipkart has also collaborated with various Indian celebs who act as influencers for people who search for online products.

4. Advertising campaigns launched by Flipkart

One of Flipkart’s most significant annual sales events is the “Big Billion Days.” Flipkart runs wide-ranging marketing campaigns, offering discounts and deals across various product categories. These campaigns feature engaging advertisements to build eagerness and attract customers.

Flipkart ran an advertising campaign centred around our toddlers and teenagers —a voice search for kids. The campaign showcased how kids could use their voices to search for toys and other products on the app, making it easier for parents to shop for their children.

Flipkart often runs campaigns emphasizing mobile phone exchange offers, encouraging customers to upgrade their phones by exchanging their old ones. These campaigns ensure that consumers should get cost-efficient and best deals.

Flipkart introduced “Flipkart Plus,” a loyalty program offering benefits such as free and faster delivery, early access to sales, and reward points for regular customers.

Flipkart’s marketing team has a great quality of analysing consumer behaviour and based on this, they started a sort of advertising campaign which you guys must have seen while scrolling through the app, “Frequently Bought Together”. In this Flipkart suggests the buyer the product which is frequently bought by the audience.

There are various other marketing strategies that Flipkar̥t tries to implement to promote the app globally.

By now our readers must have got an idea why Flipkart holds an essential place in the market and gives tough competition to Amazon.

Read Also: Amazon Case Study: Marketing Strategy, Product Portfolio and Pricing Strategy

Conclusion

Flipkart’s business model depends on simplifying transactions between buyers and sellers, charging fees for various services, and constantly inventing to improve the customer experience and seller support.  

Flipkart operates as a recognized e-commerce platform in India with a business model that revolves around being an online marketplace. It connects a wide range of sellers with consumers, offering diverse products and services. Flipkart’s marketing strategy is essential in establishing its brand, attracting customers, and maintaining a competitive edge in the e-commerce industry. 

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