(Interactive Voice Response) An automated telephone information system that speaks to the caller with a combination of fixed voice menus and data extracted from databases in real time. The caller responds by pressing digits on the telephone or speaking words or short phrases. Applications include bank-by-phone, flight-scheduling information and automated order entry and tracking.
evolution of e-commerce in the past decade and styletag as a trendsetter
EVOLUTION OF E-COMMERCE IN INDIAIN THE PAST DECADE AND STYLETAG ASAN EMERGING TRENDSETTERBY:RANU CHATTERJEE
EVOLUTION OF E-COMMERCE Screen culture QR code virtual shops (M)etail Cash on Curation Perfect payment facebook credits
APPREHENSIONS ABOUT ONLINE PURCHASE Anxiety over online identity theft & money blockage. Not being able to see the product before purchase. The hassle of returning unwanted goods. High costs of shipping associated with online purchases.
SWOT ANALYSISStrength• 24x7 business• no location contraint• product reach to theconsumer directly fromproducer• mostly lower than marketvalue• fast and agile• cost effective advertising• low staff cost• fast financial transaction• low initial investmentWeakness• no direct interactionbetween seller andbuyer• transportation cost• Large no. of potentialcustomer who cant buyonline due to lack ofinternet connectionOpportunities• No. of internet user isincreasing• big companies arealready entering in thisfieldThreats• payment failures• hackers• confendentialinformation leak
KEY DRIVERS FOR E-TAILING Increasing penetration of technologyenablers like internet, broadband, 3G,PCs, laptops, smart-phones, tablets,dongles etc.Young demographics and changing consumer lifestylesseeking the convenience in e-tailing offers - in terms ofaccess decision making transaction and timing.
Increased use of credit/debit cards An improved supply side - better customer interfaces execution and marketingKEY DRIVERS FOR E-TAILING (cont…)
GROWTH OF E-COMMERCE IN INDIA BY 2020166.6784207.9149257.8231318.5701392.746483.4861594.6091730.7817897.71671102.4141353.4531661.357y = 0.838x3 - 5052.x2 + 1E+07x - 7E+09R² = 0.9990200400600800100012001400160018002008 2010 2012 2014 2016 2018 2020 2022forecasted retail (e-commerce sales)forecasted growth rate (% of retail sales)
COMPANY PROFILE ffolio, founded in 1991, by Yashodhara and Sanjay Shroff ‘ffolio’ was the first evermulti designer luxury store in southern India. Founded in the year 2009, IORPL brought into existence styletag.com on Sep27th, 2010 Styletag.com was launched with a mission to capture a niche segment with thedesigner wear from the house of ffolio. Dealing with suppliers from all across the world with a curated merchandise to servethe customers.
COMMERCIALS1. Current season merchandise:• Discounted from 5-10% of the MRP.• In this case styletag aims for 30- 40% margins on customer selling price.2. Past season Merchandise:• Such collections are sold at attractive discounts to the end consumer ranging fromabout 20% 80% off.• In this case styletag aims for 30-35% margins on discounted MRPs.3. Flat Mark-down system:• Stock can be discounted flatly from 50-80%, wherein styletag has its own discretionsto fix the selling prices on the website.4. CST/Taxes/VAT are borne by the brand/vendors.
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCHTOTAL IMAGE SHOOT 100 412 496 274 286 886 581 1541020040060080010001200140016001800TOTAL IMAGE SHOOT
Modes of BusinessOutright(liability of the inventory isborne by the buyer)Advantages1. stock correction (0-20%)2. payment on the basis ofcash discountDisadvantageshigh liabilityhigh investmentType: PO basisConsignment(SOR:sell or return,liablity is of the vendor)Advantagespayment in 30-45 daysNo liabilitylow investmentDisadvantagesphysically stuck with theinventory
Multi category Focused/niche categoryConsignmentleadInventorylead
VARIOUS BUSINESS MODELS IN THEE-COMMERCE FASHION SPACE Standard - e.g. www.flipkart.com and www.myntra.com Deal based - e.g. www.snapdeal.com and www.groupon.com Club based –Eg. www.fashionandyou.com , www.tjori.com and www.styletag.com Marketplaces - e.g. www.ebay.in, www.tradus.in and www.junglee.com
CUSTOMER SERVICE PROCESS Customer Service SLA –adhered at 24 hours for Resolution Smart IVR based system for seamless Customer Delight Pro-active feedback collection from customers To add Online Reputation Management Process
Styletag.com: approaching customers in aninnovative way Styletag serves its customers a curated set of merchandise which is lucrative and worth giving a shot Also toadd on, the marketing strategies that are adopted add value to it. The marketing strategies used are:a. Lookbooksb. Newsletters on personalised e-mailsc. Facebook.comd. Gift vouchers/cross promotional strategiese. Special discounts and offers
INTRODUCTION TO THE PROJECTObjectives: To determine the penetration of online retailing of lifestyle products among the Indian customers. To ascertain the average monthly expenditure on lifestyle products and frequency of purchase at whichproducts are bought online. To determine which category of products is more likely to be bought online by Indian customers. To assess the preferences of customers in terms of buying lifestyle products from brands, private labels ordesigners. To find out whether certain product attributes influence customers’ buying decision. Growth in the usage of technology thus contributing in the evolution of e-commerce. To discern areas where online lifestyle product market is lacking in customer satisfaction and how thataffects purchase behaviour. To locate the need gap and major thrust areas in the current online designer wear market and thus to suggestpossible measures to tap those areas. To determine which age group and profession is perceived to be the target customers of styletag.com.
RESEARCH METHODOLOGY Exploratory research has been carried out to identify the preferences and requirements ofcustomers towards purchase of designer lifestyle products online. Also a few journals and magazines have been consulted in the process. Technopak reports werehighly helpful while doing the research work. The data is primary and has been collected from respondents of different age group andprofession through questionnaire made available online on docsgoogle.com. Data collected forthis project is primarily quantitative.
1. Sample size : 125 respondents is not statistically representative of the entire target market population.2. Time constraint: The study also had a time constraint and thus the sample size could not be increased.Allowing more time to survey a larger and more diverse group of respondents would have given betterresults3. Non response error: Non response error was also a problem when interpreting the results. Somerespondents chose not to answer some of the survey questions. The information obtained from all 200respondents could not be used for analysis as 75 respondents didn’t provide with the complete information.4. Social desirability bias: Social desirability bias is another factor influencing response error. A fewrespondents seek to gain desire or prestige by falsely answering questions pertaining to figures like averagemonthly expenditure on lifestyle goods, etc.LIMITATIONS
1. DEMOGRAPHICSa) age groupfrequencybelow 18 19-30 31-50 above 50Analysis:Out of the 125 respondents, 3% fall underthe age group below 18, 89% falls under theage group of 19-30, 7% is coming under theumbrella of 31-50 years of age, and 2% fallsunder the bracket of above 50 years of age.Inference:The major chunk of population, 89% is fromthe age bracket of 19-30.(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
b) GenderAnalysis:The survey was undertaken equally byboth the genders, with 52% (59) maleand 48% (54) female respondents.Inference:Both men and women are equally aware ofthe usage of internet and are capable ofaccessing net for various purposes.5954frequencymale female(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
c) Annual disposable incomeAnalysis:The above pie-chart indicates the percentage ofrespondents who are inclined towards purchasinggreat lifestyle products. It shows that 44%respondents belong to the less than 2.5 lakhgroup, 34% fall under the income group of 2.5-5lakh, 18% fall under the income category of 5-10lakh, whereas only 7% from the income group ofmore than 10 lakh.Inference:The major chunk of the respondents fall underthe umbrella of less than 2.5 lakh and 2.5-5 lakh ofincome group. This can be called the middleincome group. So the target group can be easilydefined as the middle income group who hasmoney to spend but actually no time to visit thebrick and mortar store to make the actualpurchase.less than 2.5 lakh 2.5-5 lakh 5-10 lakh more than 10 lakhfrequency 47 34 18 7percentage 44 34 18 705101520253035404550AxisTitle(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
d) Marital statusfrequencymarried single seperated(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)Analysis:77% of the married, 21% single and2% separated respondents took thesurvey.
2) PENETRATION OF ONLINE RETAILING AMONGINDIAN CUSTOMERSa) Any online purchase yetAnalysis:To ascertain the penetration of E-tailing among the Indiancustomers, the respondents wereasked if they made any purchase yet onany of the e-commerce websites. It wasfound that 84% of the samplepopulation do make online purchase.any online purchase yet?yes no(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
b) Website preferenceAnalysis:Out of 125 respondents 62%respondents prefer the websitewith company domain namewhereas only 38% prefer topurchase from the mediators orbrokerage based e-commerceportals.010203040506070with domain name mediator between the supplier and consumerfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
c) Preferred payment modesAnalysis:Out of 125 respondents64% people prefer CODpurchase, 23% prefer cardpayment and only 12%prefer internet banking as amode of payment.01020304050607080cash on delivery card payment internet bankingfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
d) You consider e-commerce website as:Analysis:Out of 125 respondents 41%respondents see e-commercewebsites as a platform for availingdiscounts, 33% consider it as asource of information about theproduct before actual purchase fromthe store, where they can actually seeand make the purchase decision. Alsoonly 26% see it as a platform tosupport their actual purchaseintentions.010203040506070a source of information a platform for availing discount platform to support your actualpurchase intentionfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:Out of 125 respondents 31% said thatthey prefer online shopping as it savestime, 28% said that they prefer becauseit is convenient, 25% respondents saidthat they look up to the websitesbecause of the discounted pricewhereas only 16% said that they lookup for the offers served.e) Why do you prefer e-commerce for shopping01020304050607080save time convenient discount price offers servedfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:Out of 125 respondents 22%preferred Myntra.com, 21% saidflipkart, 16% voted for jabong 11% forfashionandyou.com 9% for yebhi.com7% for zovi.com 6% for styletag.com4% 99 labels, and only 3% forzimave.comf) Website look-up0102030405060708090frequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Objective 1:To determine the penetration of online retailing of products among the IndiancustomersCONCLUSION AND RECOMMENDATIONS1. As 84% respondents confirmed having made an online purchase, clearly indicates that online retailing ofproducts has paced up in the Indian market and has a good penetration.2. Majority of the sample population preferred the websites with the company domains eg.http://www.bombayhighfashions.com. This indicates that although people are moving towards trusting a websiteand making purchase from it they still tend to buy from well known and established players of this industry dueto the lack of trust and transparency.3. Respondents were asked about the preferred mode of payment whilst purchase, to which 64% people preferredCOD payments. Whereas 23% prefer card payment, and only 12% prefer net banking as a mode of payment. Thisagain depicts the lack of trust.4. 41% respondents see e-commerce websites as a platform for availing deals and discounts, which depicts thatmost of the respondents see the e-commerce websites as a platform where they can get products on a cheaperrates than from the actual stores. The exciting deals offered by some websites also create craze eg.http://www.snapdeal.com/
5. The next question was to find out the reason to prefer e-commerce websites for shopping, towhich out of 125 respondents 31% said that they prefer online shopping as it saves time, 28%said that they prefer because it is convenient, 25% respondents said that they look up to thewebsites of the discounted price whereas only 16% said that they look up for the offers served.6. The respondents were also asked as to which websites do they prefer whilst shopping online. Towhich the answers were majorly in favour of myntra, flipkart, fashionandyou and jabong.
3) EFFECT OF CERTAIN DEMOGRAPHICS ON CUSTOMERBUYING BEHAVIOURa) Any online purchase yet V/s Annual Income Analysis:The above graph indicatesthat out of 125 respondents36% people who haveactually made an onlinepurchase come under theincome group of less than2.5 lakh and 27% comeunder the income category2.5-5 lakh. 17% come in thecategory of 5-10 lakh andonly 8% come under morethan lakh category.4271271736805101520253035402.5-5 lakh 5-10 Lakh Less than2.5 LakhMore than102.5-5 lakh 5-10 Lakh Less than2.5 LakhMore than10No YesAnyonlinepurchaseyetTotal(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:Among the 78% (99) femalerespondent, majority (56%) saythat they make online purchase oflifestyle merchandise once inevery 1-2 months. 15% buy morethan once in a month. 11% arenot very frequent but stillpurchase at an interval of 3months, while another 11% claimto buy only once in 4-5 monthtime frame. 7% of them are veryrare online buyers.In the case of malepopulation, 50% make onlinepurchase of lifestyle merchandiseonce in every 1-2 months. 32%buy once in 3 months and 18%rarely buy online.b) Male-Female Demographics v/s Frequency of Online Purchase:More thanonce amonthOnce amonthOnce in 2monthsOnce in 3monthsOnce in 4-5 monthsOnce in 6monthsOnce ayearOnly OnceMale 7 7 9 3 2Female 15 29 26 11 11 6 105101520253035CountMale-Female Demographics v/s frequency of online purchase(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis: The above bar chart indicates thatthere is a steady online purchase ofproducts within the price bracketof Rs. 1000 – 2499 among thepopulation falling under the agegroup of 20 to 35 years. The chart also indicates that theintensity of making a purchasewithin Rs. 2500 – 4999 increasesexponentially from the age group of20-25 years to 31-35 years. The agegroup of 20-25 mostly purchaseswithin Rs. 2499 price limit.Whereas, the average monthlyexpenditure of age group 26 – 35 isbetween Rs. 2500 – 4999. Respondents from the age group of36 and above have a monthlyexpenditure of Rs. 5000 – 9999, onlifestyle products.c) Age group v/s monthly expenditure0246810121416182020 - 25 26 - 30 31 - 35 36 - 45 46 - 60Age Group Vs Monthly Expenditure0 - 999 1000 - 2499 2500 - 4999 5000 - 9999 10000 - 19999 20000 - 49999(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
20 - 25 26 - 30 31 - 35 36 - 45 46 - 60More than once a month 4 6 3 2Once a month 6 9 12 5 4Once in 2 months 5 11 11 5 1Once in 3 months 6 5 6 3Once in 4-5 months 7 4Once in 6 months 2 4 2 1Once a year 1Only Once 1 102468101214CountAge Group V/S Frequency of Purchased) Age group v/s frequency of purchase(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Objective 2:To ascertain the average monthly expenditure on lifestyle products and frequency of purchaseat which products are bought onlineCONCLUSION AND RECOMMENDATIONS1. A clustered chart for any online purchase yet v/s annual income chart depicts that most of the people whoprefer to make online purchase fall under the middle income group and the upper middle income group.Therefore the e-commerce portals should come up with a product mix which can cater to the above incomegroup.2. A clustered chart of average monthly expenditure and age group demographics of the respondents depictsthat the age group 26-35 comes under the average monthly expenditure bracket of 2500-4999. This indicatesthat Indian customers are willing to place a bet of the above amount online. A new online portal shouldprovide product mix relevant to the above findings. Therefore, this information obtained from group v/saverage monthly expenditure chart can be used extensively for personalized marketing of a new e-commerceportal. Also online marketing enables the marketing efforts to be enough to capture the right target market.
3. A clustered chart of male-female demographics and frequency of online purchase reveals thatmajority (56%) of the female population makes online purchase in 1 to 2 months time frame.Results also show that 50% of the male population also shops online once in 1 to 2 months for theirlifestyle needs.4. Another clustered chart of age group and frequency of online purchase shows that population fromthe age of 26 to 35 years old tend to purchase once in a time frame of 1 to 2 months.*It is important to obtain the frequency of online purchase, in order to keep churning the inventory in thattime interval. This indicates that an online platform for lifestyle products should turn the inventory once inevery 2 months, in order to keep providing their customers with more variety and new products.
Inference:The above graph shows that theinclination of people for onlinepurchase is more towardsapparel and accessories and to acertain extent IT Gadgets arepreferred.4) MOST PREFERRED CATEGORY TO BUY ONLINEa) Categories preferred for online purchase010203040506070Apparel Accessories Home and décor FMCG IT gadgets Pharmacyfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:Out of 125 respondents 72%people prefer brandedproducts, 12% prefer privatelabels, where 6% people prefercustomized products, 7% preferdesigner wear and only 3% preferboutique brands.b) What do you prefer the most01020304050607080private labels branded products boutique brands designer wear customizedfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Objective 3:To determine which category of lifestyle products is more likely to be bought online byIndian customersCONCLUSION AND RECOMMENDATIONS1. Respondents were asked about the product categories which they would be comfortable buying online. Theresults indicated that out of 125 respondents, 30% were willing to buy apparel from online portals.Whereas 27% out of the total respondents would like to buy accessories such asbags, belts, wallets, sunglasses etc. from websites. 23% respondents prefer to purchase IT Gadgets, 9%prefer home décor and FMCG products, and only 3% respondents purchase pharmaceuticals. Therefore the e-commerce portals should concentrate on home décor and the FMCG sector to capture andtap the market towards online portals for the products range in the above categories.
2. Respondents were then asked about the preferred product type they would like to buy online towhich 72% people preferred branded products whereas 12% preferred private labels. And thedesigner wear could just get a 7% response. Therefore the e-commerce companies should more concentrate on the marketing of the designerwear products to which the customers are quite apprehensive of purchasing them online due to thehigh price ranges of the products.
Analysis:From the feedback obtained, it canbe assessed that 46% of the samplepopulation buys the productswhich provide value for theirmoney. 27% of the same populationvalues style more than any otherattribute in the product. And 26%of them would prefer to buy brandagainst style or value for money.5) PRODUCT ATTRIBUTES INFLUENCING BUYING DECISIONSa) Most valued product attribute0102030405060brand style value for moneyChart Titlefrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
b) How will you rate your online purchase experience for the products with respect toproduct display, zoom options etc?010203040506070Exceptional Great Good Poor Very Poorfrequency percentagePREFERENCES FREQUENCY PERCENTAGEExceptional 11 10Great 26 25Good 59 56Poor 5 5Very Poor 4 4(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Objective 4:To assess the preferences of customers in terms of buying lifestyle products frombrands, private labels and designers.CONCLUSION AND RECOMMENDATIONS1. The respondents were asked about the most valued product attributes to which 46% of thesample population said that they buy the products which provide value for their money. 27% ofthe same population values style more than any other attribute in the product. And 26% ofthem would prefer to buy brand against style or value for money. A new e-commerce portal which is trying to consolidate designer label lifestyle products canassess the potential of this category by the feedback obtained from the sample population. It isevident that customers are willing to purchase branded designer label products only if it givesvalue for their money. Thus, the new online portal will have a vast target market to cater to.
2. The customers were asked to rate their online purchase experience on the parametersexceptional, great, good, poor, and very poor. To which 56% said that they had a good experienceshopping online whereas 25% experienced it as great. And only 10% could contribute theirexceptional experience of online purchase. Therefore an e-commerce portal should concentrate on the customer interface which is the mostimportant to attract a customer towards the website. Also the payment options should becomfortable enough to support the online purchase.
Objective 5:To find out whether certain product attributes influence customers buying decisionCONCLUSION AND RECOMMENDATIONS1. Feedback of the sample population was taken on certain product attributes in order to assessthe influence of these attributes on their buying decision. Respondent’s feedback taken on themost valued attribute in lifestyle product indicates that for 50% of the sample population theproduct should have value for money. For another 38% of the sample population, style mattersmore than anything else while buying a product online. Thus, it is indicated that the customers wants value for money and style over brand. A newonline portal should focus on having a product-mix which offers style and value for money to thecustomers.
2. The customers were asked to rate their online purchase experience on the parametersexceptional, great, good, poor, and very poor. To which 56% said that they had a good experienceshopping online whereas 25% experienced it as great. And only 10% could contribute theirexceptional experience of online purchase. Therefore an e-commerce portal should concentrate on the customer interface which is the mostimportant to attract a customer towards the website. Also the payment options should becomfortable enough to support the online purchase.3. Data analysis on the feedback of respondents gathered on the percentage of discount that willencourage them to buy designer products online rather than going for the branded ones indicatesthat a discount of 40% to 60% may be offered on the non-branded designer products in order totrigger the customers to buy designer products over branded products. It is possible to offer such discounts either on previous season’s inventory which can be bought atheavy discount from the designers or by inflating the MRP or by selling the products at a very lessmarkup.
6) GROWTH IN THE USAGE OF TECHNOLOGY THUSCONTRIBUTING IN THE EVOLUTION OF E-COMMERCEa) Access to Inernet020406080100120yes nofrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:47% of the total respondentssaid that they use theirpersonal computers to accessinternet, 29% said that theyuse mobile, 23% said that theyuse computers at workwhereas only 1% respondentsuse internet café as a mode toaccess internet.b) Devices used to access internet0102030405060708090100personal computer Mobile Internet Café Computer at workfrequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Analysis:17% use it for e-mail, 12%use it for Research/generalinformation, 12% internetbanking, 14% onlineshopping,16% entertainment, 18%social networking, 11%office related work.c) Reasons to use internet0102030405060708090frequency percentage(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)
Objective 6:To assess the growth in the usage of technology, thus contributing in the evolution of e-commerceCONCLUSION AND RECOMMENDATIONS1. To assess the technological knowledge among the respondents they were asked about theiraccess to internet to which 99% people confirmed of accessing internet for various reasons with17% for e-mail, 12% for Research/general information, 12% for internet banking, 14% foronline shopping, 16% for entertainment, 18% for social networking, 11% for office relatedwork. Thus we can see that now that the people are using more and more of internet and are quiteaware of the technological aspects of the websites, e-commerce websites can obviously be a bigtime option for the people and also we can notice that the maximum percentage of people areusing internet for accessing the social networking websites, hence they can be a strong platformfor the marketing of the products.
Objective 7:To discern areas where online lifestyle product market is lacking behind in customer satisfactionand how it affects the purchase behaviourCONCLUSION AND RECOMMENDATIONS1. Product displayImprovement can be made in terms of providing high resolution images, high zoom infeature, more view of the product instead of the stereotype 4-way (front, back, left side, rightside) view and also by displaying the close-up swatches of the product to accentuate someintrinsic patterns/embellishments/embroidery on the product.2. Product descriptionThe description and display of the product should fill in for the absence of touch and feelexperience and should encourage the customers to make a purchase. An excellent contentwriting is required to present the elaborate information about the products precisely in front ofthe customers.
3. Product mixData analysis indicates that most of the customers like the product-mix made available bycurrent online portals. Thus, it is crucial for a new entrant to have an excellent variety ofproducts to be offered to the customers. A new website should launch with atleast 100 differentstyles in each product segment and should keep appending to it in order to not only have newvisitors but also to grow the revisiting customer base.4. Product pricingPricing the products right can be a key element of success for a new e-commerce portal in theprice sensitive Indian market. The pricing should be justified according to the product materialand brand/designer name. Customers should feel that they are at a much more beneficialsituation by choosing to shop from a particular website over others.
5. Checkout processAn improved checkout process may include providing options to continue shopping after theaddition of each product to the cart, the customer can be provided with an option of beingredirected to the home page, or the specific page where he/she was shopping beforeproceeding to checkout, to add additional quantities of the products which are already in thecart, to drop an item from the cart, to proceed towards the payment etc.6. Shipping optionsImprovements can be made in terms of providing customers with the opportunity of storing adefault billing address and a default shipping address so they don’t have to enter thisinformation again while shopping from the same website. Some innovative shipment optionssuch as providing free gift wrapping and message card, separate shipment of billinginformation etc. can also add an element of excitement while purchasing online.
7. Payment optionsIt indicates that a new website should maintain this level of service and should have all themajor payment options available to the customers. It can also have EMI (Equated MonthlyInstalment) as a payment option on high value items. The payment process should bequick, hassle free and secure in order to deliver a good shopping experience to the customers.8. Overall experienceA new website should have a large bandwidth in order to handle customer traffic efficiently, thedomain should be hosted by fast responding servers provided by companies such as Amazon.The website should be compatible with multiple browsers such as chrome, Mozillafirefox, safari, opera, opera mini, etc, the page load time, redirection time, domain lookuptime, should be only a fraction of second in order to deliver a good overall online shoppingexperience to the customers.
Objective 8:To locate the need gap and major thrust areas in the current online market and thus to suggestpossible measures to tap those areasCONCLUSION AND RECOMMENDATIONS Thus, a new e-commerce portal should focus on consolidating the fragmented designer wear market andshould try getting as many designers and private labels on board in order to provide customers with ahuge variety of products to choose from. It is also suggested that the new online portal must stock the inventory in its own warehouse to be able toprovide prompt delivery of the products to the customers as well as to be able to quickly replace a faultyproduct. The pricing of the product should also be kept in mind
Objective 9:To determine which age group and income group is perceived to be the target customers ofstyletag.comCONCLUSION AND RECOMMENDATIONS The target market for styletag.com is the young, ambitious, fashion savvy and tech-aware population underthe age group of 20 to 35. The survey results also indicate that respondents under the age group of 20 to 35 shop once in 1-2month, which turns out to be the estimated average inventory turn period of styletag.com. The data analysis also indicates that majority of the respondents from the age group of 20 to 35 spendbetween Rs. 1000 to Rs. 4999 and an average of Rs. 4360 monthly online to shop lifestyle products, whichturns out to be the price bracket of styletag.com.