million products across 2,000 categories available online.Supply Chain complexity – includes parameters like ease of procurement, storage, handling, transportation, packaging, delivery and installation/demos .n Indian e-tailers are currently operating in quadrants 1 and 4 mainly. Challenge going forwards is to add more and more product categories in these quadrantsn Quadrant 3 is the category most difficult to sell online but is profitablen Quadrant 2 also contains product categories which require robust infrastructure to sell online and some of the categories like grocery, vegetables etc. are also not very profitable
India is the 5th largest destination retail destination in retail globally ( AT Kearney GRDI report 2008)India retailing industry is at 390 bn and growing at 7%Heavy growth is expected post GFC, with single brand retail stores, increased number of malls, growth in Tier 2 and Tier 3 citiesMany of the big retailers have forayed into the on-line mode without much success.On-line retail forms a meager 0.47% of the total retail market. Gift Items, Books, mobile phone accessories, small eletronic goods form the bulk of sales
3,296 cities in India have access to eRetail portals and deliverables.
growth of indian e-retail industry
School Of Future Studies & Planning DAVV, Indore Presentation on“A Model For Growth of E-retailers in India” (Research Papers Review) Submitted to: Submitted By: Mr. Vandit Hedau Jayant NannoreFaculty SFSP, DAVV MBA(BF)
Introduction• What is E-Commerce?In a layman’s language; purchasing products on the Internet is called ecommerce.It is an act of having a commercial activity over an electronic medium.In simple words, Electronic commerce involves buying and selling of goods and services over the World Wide Web. Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to someone sitting miles apart just by click of a mouse.• What is E-retailing? E-retailing is B2c(business to customers)business model that executes a transaction between businessman and final customer Subset of e-commerce – e-tailers Retailers who sell over the Internet
The e-commerce matrix Business Consumer Government Business B2B B2G Supply B2C Contract bidding, Cain, Wholesalers Retailers (Goods Privatization or Services)Consumer C2B C2C C2G Public Bidding Public flea markets Public Government marketplaces, auctions AuctioneersGovernment G2B G2C G2G Tax and fee Tax and fees Budget allocation collection collection
Business-To-Consumer Business Model In this form business must develop attractive electronic marketplaces to entice and sell product and services to consumer Portal E-Tailers Content provider Transaction broker Market creator Service provider Community provider
Distribution Channel (Conventional v/s online)
Traditional Retailing network (Physical Retail store)
How the business model of online retailers add value compared to physical retailers?Physical Retailers Online Retailer or E-tailer Advantages Advantages• Provides face to face • Cost Effective: does not have to invest in physical selling, making shopping an infrastructure (store, real experience. state, sales force) except• Customers get access to warehouse better Product information • Provides ease and Convenience of shopping at through in-store sales anytime and from any location representatives. Disadvantages Disadvantages • Have to invest in Logistics• Higher Cost of Operation operations • Highly competitive • Little customer interaction
Delivery network• Acquire a local player to make the distribution system easy.• Establish a warehouse in every major city in India like Mumbai,Delhi,Chennai,Kolk ata,Hyderabad etc.• Agent system can play a vital role to deliver your product quickly .
• Efficient inventory system.• India is a geographically complicated country and languages varies from state to state so you need to employ local people for the product delivery system.• Use effective communication device to locate your product at a particular instances.• The packaging system should be so strong that it could protect the product.
Challenges with order fulfillments: Logistics Problem area: Order Fulfillment is an important part of ecommerce Value chain. Most ecommerce providers use a combination of their own logistics teams and also tie- ups with leading local logistics. Based on research, the following leading names in logistics names were revealed: 1. DTDC logistics (part of DHL ,all India presence) 2. Gati (Maharashtra, Karnataka) 3. BlueDart (part of DHL ,all India presence) 4. VRL Logistics (Karnataka) 5. Aramex logistics (Maharashtra, Karnataka) 6. Vichare courier( Maharashtra) Most of these provide tracking services for customers and people are willing to pay a premium for proper delivery.
Characteristics of Successful E-Tailing– High brand recognition– A guarantee provided by highly reliable or well-known vendors– Digitized format– Relatively inexpensive items– Frequently purchased items– Commodities with standard specifications– Well-known packaged items that cannot be opened even in a traditional store
Online shopping behavior among Indians (based upon survey in 4 metro cities) • 60% online users in India visited a retail site in November 2011. • The number of active online shoppers is projected to reach 38 million by 2015 • 49% online consumer is young male population ranging between 21 and 29 years. • Tier-II & Tier-III online consumers are aspiration driven.