• Save
Ecommerce Master Class Course
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Ecommerce Master Class Course

on

  • 7,807 views

Understand the nuances of starting an Online Retail Business

Understand the nuances of starting an Online Retail Business

Statistics

Views

Total Views
7,807
Views on SlideShare
7,801
Embed Views
6

Actions

Likes
75
Downloads
1
Comments
10

4 Embeds 6

https://si0.twimg.com 2
http://www.iksula.com 2
http://www.docshut.com 1
http://iksula.iksulabeta.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

15 of 10 Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • undee
  • undee

Ecommerce Master Class Course Presentation Transcript

  • 1. Ecommerce Master Class.
  • 2. Ecommerce Master Class ::Main Index.1.Ecommerce---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------31.a. Introduction to Ecommerce------------------------------------------------------------------------------------------------------------------------------------------------------------------------41.b. Ecommerce Business Models ------------------------------------------------------------------------------------------------------------------------------------------------------------------131.c. Ecommerce in India -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------231.d. Ecosystem -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------28 DAY 12.Online Retail -----------------------------------------------------------------------------------------------------------------------------------------------------------542.a. Introduction to Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------------552.b. Online Retail in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------602.c. Current Retail Industry in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------802.d. Online Retail in India ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------852.e. Online Retail Market Size ------------------------------------------------------------------------------------------------------------------------------------------------------------------------902.f. Challenges in Pure-Play Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------973.Online Retail Operations -------------------------------------------------------------------------------------------------------------------------------------------1033.a. Building blocks of Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------1043.b. Technology ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1053.c. Content & Imaging -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1283.d. Online Marketing ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------146 DAY 23.e. Fulfillment ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1713.f. Customer Support --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1874. Key Lessons ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2195. Looking Ahead -----------------------------------------------------------------------------------------------------------------------------------------------------1945.a. M Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1955.b. T-Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2085.c. Social Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2155.d. Innovations----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------216
  • 3. Ecommerce.
  • 4. Ecommerce Master Class :: Ecommerce ::Index.1.a. Introduction to Ecommerce.a. Ecommerce Definition.b. Defining years of Ecommerce.c. Parts of Ecommerce.d. Advantages & Challenges of Ecommerce.e. Effect on purchasing decision.f. Successful Ecommerce Companies.g. Successful Ecommerce People..
  • 5. Ecommerce :: Introduction to Ecommerce ::Ecommerce Definition. “Ecommerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks” Source : Wikipedia Electronic commerce is commonly referred to as Online commerce, Web commerce, eBusiness, eRetail, eTailing, Ecommerce, ecom or EC
  • 6. Ecommerce :: Introduction to Ecommerce ::Defining years of Ecommerce. Source : Wikipedia 1979 1981 1984 1990 1994 1998 1999 • Online • UK’s First B2B • First B2C online • World Wide • Netscape Alibaba Group • Business.com online shopping shopping Web releases the is established Shopping Tim Berners-Lee Mozilla browser. in China. And sold for US $7.5 Michael Aldrich Thomson Holidays Gateshead SIS/Tesco • Bezos launches it leverage million . Amazon.com. Chinas B2B and C2C, • Napster launches. • eBay is founded B2C(Taobao) market. It was originallyIn 1979 he The first business- 10 Jan 1984 He implemented Jerry Yang and The company, is founded as ainvented online to-business (B2B) Gateshead the first David Filo engaged in the pioneering peer-to-shopping to enable computer network SIS/Tesco is first successful publish "Jerrys provision of peer fileonline transaction was created by B2C online communication Guide to the software, sharing Internetprocessing Thomson Holidays shopping. between World Wide technology and service thatbetween in 1981 a Hypertext Web" online, other services on emphasized sharingconsumers and Transfer which will evolve the online Mrs Snowball, 72, audio files, typicallybusinesses, or Protocol (HTTP) into Yahoo. The business-to- is the first online music, encodedbetween one client first version of business (B2B) home shopper. in MP3 format. Thebusiness & and server via the Netscape marketplaces. original company rananother, a Internet Navigator is also into legal difficultiestechnique known released. over copyright issueslater as e-commerce. Chronology of US Ecommerce.
  • 7. Ecommerce :: Introduction to Ecommerce ::Defining years of Ecommerce. Source : Wikipedia 2000 2002 2009 2010 2011 • The dot-com • eBay • Zappos.com • Groupon • US eCommerce and Online Retail sales bust. acquires acquired by PayPal for Amazon.com for reportedly projected to reach $197 billion. . $1.5 billion. $928 million. rejects a $6 • Diapers.com acquired by Amazon.com • Niche retail billion offer companies • RueLaLa.com, • GSI Commerce, acquired by eBay for Wayfair and acquired by GSI from Google. $2.4 billion. Netshops are Commerce for founded. $180 million. PayPal is an In July 2009, the Groupon is a deal-of- In late 2008, Today, Diapers.com is the largestBy 2001 the bubble was American-based company announced it the-day website that pure play retailer online for everything baby.deflating at full speed. A global e- would be acquired features discountedmajority of the dot-coms Diapers.com expanded its selection into far- commerce business by Amazon.com in an gift certificates usableceased trading after reaching baby categories, including allowing payments all-stock deal worth at local or nationalburning through clothes, car seats, strollers, and toys. and money transfers about $1.2 billion. companies.their venture capital, many to be made through As of October 2010,having never made a the Internet. Online Groupon serves more″net″ profit. Investors often Since its founding in money transfers than 150 markets in GSI Commerce is an eBay company specializingreferred to these failed 1999, Zappos has grown serve as electronic North America and in creating, developing and running onlinedot-coms as "dot-bombs to be the largest online alternatives to 100 markets in shopping sites for brick and mortar brands and paying with shoe store Europe, Asia and retailers. traditional paper South America and methods, such as has amassed 35 checks and money million registered orders. users Chronology of US Ecommerce.
  • 8. Ecommerce :: Introduction to Ecommerce ::The parts of E-Commerce. Online Travel Financial Online Services Retail Other Digital Online Downloads Services
  • 9. Ecommerce :: Introduction to Ecommerce ::Advantages & Challenges of Ecommerce. Advantages • Being able to conduct business 24 x 7 x 365 • Access the global marketplace • Opportunity to reduce costs by cutting intermediaries. • Very easy access to information • Speed of Doing Business • Challenges • System And Data Integrity Issues • Physical product, supplier & delivery uncertainty • Limited and selected sensory information ( Touch and Feel ) • Online Frauds.
  • 10. Ecommerce :: Introduction to Ecommerce ::Effects on Purchase Decision. Store 1 Store 2 Store 1 Store 1 Search Engines Store 2 Targeted Ads Store 1 Online Store 1 Online Website Website Purchase Decisions have got very informative but very complicated for retailers.
  • 11. Ecommerce :: Introduction to Ecommerce ::Successful Ecommerce Companies. YOU COULD BE ONE !!! and many more….
  • 12. Ecommerce :: Introduction to Ecommerce ::Successful Ecommerce People.Larry Page Sergey Brin Jeff Bezos Pierre Omidyar Eric Schmidt Ronald Burkle Mark Cuban Jerry Yang Omid KordestaniGoogle Google Amazon Ebay Google Yahoo Broadcast.com Yahoo GoogleDavid Filo Ram Shriram Todd Wagner Peter Thiel Niklas Zennstrom Janus Friis Jack Ma Mark Zuckerberg Simon NixonYahoo Google Broadcast.com Paypal Skype Skype Alibaba.com Facebook MoneySupermarketAndrew Gower Reid Hoffman Zhang Chaoyang Steve Chen Elon Musk Chad Hurley Duncan Cameron Marc Andreesen YOU COULDRunescape LinkedIn Sohu Youtube Paypal Youtube MoneySupermarket Netscape BE ONE !!!! You can be one of them.
  • 13. Ecommerce :: Ecommerce Business models
  • 14. Ecommerce Master Class :: Ecommerce ::Index.1.b. Ecommerce Business Modelsa. Internet Business Models.b. Business Models in Ecommercec. Business Models Explained - B2B, B2C, C2C, C2B, G2Cd. Case Study : Industry Structure.
  • 15. Ecommerce :: Ecommerce Business models ::Internet Business Models. Brokerage Model Advertising Utility Model Model Subscription Infomediary Model Model Community Merchant Model Model Affiliate Manufacturer Model Model
  • 16. Ecommerce :: Ecommerce Business models ::Business models in ecommerce. Business-to-consumer (B2C) Here, businesses selling to the general public typically through catalogs utilizing shopping cart Business-to-business (B2B) software. In this segment, companies conduct business with each other Consumer-to-consumer (C2C) such as manufacturers selling to Here, websites offer free distributors and wholesalers classifieds, auctions, and forums selling to retailers. where individuals can buy and sell thanks to online payment systems. Government to Citizen This comprises G2G (Government-to- Consumer to Business (C2B ) Government), G2E (Government-to-Employee), In this case, a consumer posts his project G2B (Government-to-Business), B2G (Business- with a set budget online and within hours to-Government),G2C (Government-to-Citizen), companies review the consumers C2G (Citizen-to-Government) are other forms of requirements and bid on the project. ecommerce that involve transactions with the The consumer reviews the bids and selects government from procurement to filing taxes to the company that will complete the project. business registrations to renewing licenses.
  • 17. Ecommerce :: Ecommerce Business models ::Business models explained. B2B. •Alibaba.com is the worlds largest online business-to-business trading platform for small businesses. •The company was founded by Jack Ma and 18 people in 1999. • It claims it had more than 65 million registered users in more than 240 countries and regions as of March 31, 2011. •The company‟s serves to bring together importers and exporters from more than 240 Business-to-business (B2B) countries and regions. In this segment, companies conduct business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. •IndiaMART.com is Indias largest online B2B marketplace for Small & Medium Size Businesses, connecting global buyers with suppliers. •The company offers a platform & tools to over 1 million suppliers to generate business leads from over 5 million buyers, who use the platform to find reliable & competitive suppliers. •The company has over 4500 employees located across 90 offices in the country.
  • 18. Ecommerce :: Ecommerce Business models ::Business models explained . B2C. • Diapers.com, founded in 2005 by Marc Lore and Vinit Bharara. • It is the largest online specialty retailer for baby products. • Delivers consumables, such as diapers, wipes, and formula, to parents with free 1-2 day shipping and a focus on customer service. • In late 2008, Diapers.com expanded its selection into baby clothes, car seats, strollers, and toys. Business-to-consumer (B2C) •Today, Diapers.com is the largest pure play retailer online for everything baby. Here, businesses selling to the general public typically through Catalogs utilizing shopping cart software. • Flipkart.com is among India‟s largest online retailers. • Established in 2007 by Sachin and Binny Bansal, it is among India‟s largest eRetailers. • Started as an online bookstore, but has since diversified into media, consumer electronics, computers, healthcare and home appliances.
  • 19. Ecommerce :: Ecommerce Business models ::Business models explained . C2C. Consumer-to-consumer (C2C) •eBay.com is an American internet consumer-to-consumer corporation . Here, websites offer free classifieds, • It manages an online auction and shopping website in which people and auctions, and forums where individuals businesses buy and sell a broad variety of goods and services worldwide. can buy and sell thanks to online payment systems. •Founded in 1995, eBay is now a multi-billion dollar business with operations localized in over thirty countries.
  • 20. Ecommerce :: Ecommerce Business models ::Business models explained . G2C. •Whatever you want or need from the U.S. government, its available Government to Citizen on USA.gov. This comprises G2G (Government-to- Government), G2E (Government-to- Employee), G2B (Government-to- Business), B2G (Business-to- Government),G2C (Government-to- Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government from procurement to filing taxes to business registrations to renewing licenses. •Electronic filing of Income tax return and Fringe Benefit tax Return •Know your PAN-Enables a tax payer to ascertain his PAN •Bulk PAN Query-Enables registered institutions to query PAN in batch mode •Registration of e-Return Intermediaries •Refund status query
  • 21. Ecommerce :: Ecommerce Business models ::Business models explained . C2B. •Elance is a global Internet platform where businesses hire independent freelance professionals. •Freelance professionals create online profiles and portfolios, submit proposals for jobs Consumer to Business (C2B ) that interest them, and manage both work and receive payment through the site. In this case, a consumer posts his project with a set budget online and within hours companies review the consumers requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. •ApnaPaisa value proposition for consumers is their comprehensive customized comparison quotes, which are rendered in simple, user-friendly and appealing manner. •Consumers save time as they get a one-stop shop for researching, comparing and buying online from or contacting the service providers for virtually all the products in the market.
  • 22. Ecommerce :: Ecommerce Business models ::Case Study. Industry Structure in Online Retail Michael Porter
  • 23. Ecommerce :: Ecommerce Business models :: Case Study ::Porter analysis on Internet Industries. + - +/- - + - - - - - - - - -The game lies in understanding the threats of –- & leveraging the ++„.
  • 24. Ecommerce :: Ecommerce Business models :: Case Study ::Case Study: Indian Market Travel is a Classical Case in Indian MarketWeb Only Brands have +been born in India as itseasier to reach out to Market Leadership hascustomers - been changing with newSmaller Brands would formats and playersfind it lucrative Indian Internet +/- - + - Consumers shifted the online proposition to - Price. LTV management - - has been a Serious Challenge - - - IndiatimesShopping to - Fabmall to Flipkart to ???? -The game lies in understanding the threats of –- & leveraging the ++„.
  • 25. Ecommerce :: Ecommerce in India
  • 26. Ecommerce Master Class :: Ecommerce ::Index.1.c. Ecommerce in India.a. Evolution of Indian Ecommerce Industry.b. A Typical Day in a Heavy Internet Users life in India.c. The Current Ecosystem.
  • 27. Ecommerce :: Ecommerce in India ::Evolution of Indian Internet & Ecommerce Industry. Source : Wikipedia 1995 1996 1997 1998 1999 2000 VSNL introduces • Rediff.com launched • First online banking • VSNL‟s monopoly on • Indiaworld sold • IT ACT 2000 passed internet in India by Ajit Balakrishnan. site launched by internet ends to SIFY for $115 by the Indian Govt. via dialup in 6 ICICI Bank. million • Sify becomes India‟s • Baazee.com cities on Aug • India‟s first cyber café • Naukri.com first ISP • Webdunia, launched based on 14,1995 called “Cybercafé” launched • Launch of Nasscom by India‟s first and the EBay model. launched in a • Sabeer Bhatia‟s Dewang Mehta, a most successful • Indya.com launched Mumbai hotel Hotmail sold to chartered accountant Hindi portal with Rs 4.5 crore Microsoft for $400 by profession to launched campaign blitz million in USA. promote IT industry • Yahoo & MSN launch • Cybercafés start Indian sites mushroomingTata Rediff.com Naukri.com is a job site Sify Technologies Webdunia.com is a Baazee.com was anCommunications India (NASDAQ: REDF) operating Limited (formerly Sify Hindi News Website online marketplaceLimited (formerly is a news, information, in India founded by Limited and Satyam which provides variety started by AvnishVSNL), is entertainment, and Infoway Limited) of news in hindi from bajaj on the lines on Sanjeev Bikhchandania telecommunicati shopping portal. It was (NASDAQ: SIFY) is an India and International ebay.com in the US. in March 1997ons founded in 1996 Indian broadband internet news, it has topcompany located Hotmail service was provider established in stories on business, Ebay eventuallyin Mumbai. Ajit Balakrishnan, founded by Sabeer 1998, based bollywood gossip, bought over the Chairman and CEO of Bhatia and Manojit Rout. in Chennai, India sports updates company in 2004. Rediff.com The name "Hotmail" was chosen out of many possibilities ending in "- mail" as it included the letters HTML ("HoTMaiL).
  • 28. Ecommerce :: Ecommerce in India ::Evolution of Indian Internet & Ecommerce Industry. Source : Wikipedia 2001 2002 2003 2004 2005 2006 • HomeTrade • AirDeccan • EBay buys out • CarWale.is • BookMyShow • Indian Railways fiasco– brokerage becomes first Baazee.com & founded by Mohit Launched in Aug launches online site launched with airlines to offer Monster.com buys Dubey and his 2006 ticketing site, Rs 65 crore blitz online ticketing in Jobsahead.com three friends in irctc.com goes bust India. October 2005 • First Indian Dotcoms • India‟s first cyber . IPOs are successful– crime police station indiabulls.com & opens in Bangalore indiainfoline.com Indian Railway Home trade modus Air Deccan, is a low- Indiabulls is an Indian CarWale.com services Bookmyshow.com Catering and operandi was really cost airline brand. It is company with its include new car provides cinemas, Tourism oversimplified. It headquartered presence in the Real research, on-road price event organizers and Corporation (IRCT claimed to be a in Mumbai, India Estate, Infrastructure, of new cars, used car consumers a complete C) is a subsidiary professed fresh dealing Financial Services, valuation guide and used range of solutions of the Indian in governing securities Securities, Retail, car classifieds. CarWale through call centers, It was started by Railways that (Gilts) and would Multiplex and Power also facilitates new car Internet ticketing, kiosk Captain G. R. handles the attractiveness the sectors. sale through tie- and a mobile ticketing Gopinath catering, tourism generalized ups with manufacturers, platform. and online unrestricted, brokers, dealers, financiers and in One of the major ticketing sub-brokers dealing in Air Deccan was the surance firms. movie & events ticket operations of the Gilts. first airline in India to seller in India. railways. But the polity securities fly to second tier cities never existed.
  • 29. Ecommerce :: Ecommerce in India ::Evolution of Indian Ecommerce Industry. Source : Wikipedia 2007 2008 2009 2010 2011 2012 • Flipkart went live • HomeShop 18 • Fashion and You is • Snapdeal • Zovi.com launches • PepperFry, the in 2007 with the launches on 9 a private invitation launches. eCommerce startup objective of April 2008 only shopping club, Company was from the ex-Ebay making books based in Gurgaon, founded by Kunal heads, Ambreesh easily available to India Bahl and Rohit Murty and Ashish anyone who had Bansal. Shah, has gone live internet access .Flipkart is among HomeShop18 is the Snapdeal is a daily ZOVI.com is an Pepperfry focuses on It was founded online & on-air deals website that Lifestyle segment thatIndia‟s largest online by Harish Bahl and apparel brand retail marketing and features discount do not have anretailers. It is Pearl Uppal in available exclusively organized marketan electronic distribution venture November, 2009 offers across online. Zovi sells or standardized producommerce company of Network 18 lifestyle segments premium apparel cts. Fashion and You is aheadquartered Group that was such as dining, designed with top- private invitation onlyin Bangalore, launched as India‟s health & beauty, notch components to The site currently shopping club featuring first 24 hour Home entertainment and our customers hosts products inEstablished in 2007 by collections by top Shopping TV travel. It also offers across mens and personal accessoriesSachin and Binny designers for men, channel on 9 April discounts on womens categories. andBansal, Flipkart started women and children clothing, jewellery 2008. It is part of products likeas an online bookstore, and furniture the Network 18 electronics,but has since categories. Group. perfumes, watches,diversified into media, bags, sunglassesconsumer electronics, and mobiles.computers, healthcareand home appliances.
  • 30. Ecommerce :: Ecommerce in India ::A Typical Day in a Heavy Internet Users life in India.Source : „India Goes Digital‟ - Avendus
  • 31. Ecommerce :: Ecommerce in India ::The Current Internet Ecosystem.Source : „India Goes Digital‟ - Avendus
  • 32. Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::Internet Penetration. Source : „India Goes Digital‟ - Avendus •80 million users, a long way to go •There are an estimated 80 million Internet users in India today • It represents only a penetration of 7% of the population (17% of urban population). •This is significantly lower than global benchmarks (average 31% of total population).Source : „India Goes Digital‟ - Avendus
  • 33. Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::Internet Users in India Source : „India Goes Digital‟ - Avendus •One report has suggested 70 million. •Google put out a number of a 100 million sometime back.
  • 34. Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::Sources of Growth. Source : „India Goes Digital‟ - Avendus •Number of PCs is not a constraint •Broadband availability and cost are the major constraints. •PC broadband penetration to reach 15.6% of households by 2015. •Mobile broadband to be the primary driver of overall Internet penetration - 3G to reach 22% of the population by 2015
  • 35. Ecommerce :: Ecommerce in India :: Ecosystem ::Demographics. Source : „India Goes Digital‟ - Avendus Tier I cities dominate, but penetration increasing fast across tier II/III cities and towns
  • 36. Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics ::User profile and how it has changed over time. Source : „India Goes Digital‟ - AvendusYounger consumers driving growth & the number of Internet savvy people inhigher age groups will continue to rise - improving the potential for commerce.
  • 37. Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics ::Customer Classification. Source : „India Goes Digital‟ - Avendus Source : IAMAI Significant growth of internet in the middle income class, thus making internet more broad based..
  • 38. Ecommerce :: Ecommerce in India :: Ecosystem ::Government Actions in ecommerce. Source : „India Goes Digital‟ - Avendus •25% of income tax filings are now online •UIDs and the impact on electronic payments Government Initiatives driving penetration as well as helping build trustworthy cyber environment . Cyber Crime, Online Payment Security and stronger consumer forums could help further
  • 39. Ecommerce :: Ecommerce in India :: Ecosystem ::Venture Capital Action in ecommerce. Source : „India Goes Digital‟ - Avendus •Growing entrepreneurship •Improved support systems •A whole lot of money There has been growth in entrepreneurship and investments have followed
  • 40. Ecommerce :: Ecommerce in India :: Ecosystem ::Online advertising market in India. Source : Pitch-Madison Media Outlook 2011 Online Advertising eco-system is developing but a long way to go
  • 41. Ecommerce :: Ecommerce in India :: Ecosystem ::Payment Credit and Debit Cards. Source : „India Goes Digital‟ - Avendus • Credit card penetration in India has actually seen a decline of late. •This is due to the tightening of norms by banks for the issue of credit cards, after delinquency rates shot up in 2009.
  • 42. Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues ::Cash On Delivery. COD.The Indian Innovation. Source : „India Goes Digital‟ - Avendus •Eliminates consumer drop-offs which occur due to “LACK of TRUST” •Mitigates the primary disadvantage of e-commerce - „lack of touch and feel‟. •Transfers the risk from the consumer to the supplier. I think Indian ecommerce needs this to develop confidence in ecommerce
  • 43. Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues ::Online Payment Facilitators in India. Source : „India Goes Digital‟ - Avendus Indian market has a strong appetite for new and innovative Payment Systems.
  • 44. Ecommerce :: Ecommerce in India :: Ecosystem ::Ecommerce Supply Chain & Delivery. Ecommerce Industry due to its need to keep large assortment and multipoint delivery makes supply chain and logistics very challenging and different for retail
  • 45. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::Comparison of different supply chain & Logistics options. Supply Chain & Logistics Source : „India Goes Digital‟ – Avendus
  • 46. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::Delivery Examples. Supply Chain & Logistics Source : „India Goes Digital‟ - Avendus Delivery is becoming a differentiator in Indian Market.
  • 47. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::Owned vs. Outsourced delivery. Supply Chain & Logistics Source : „India Goes Digital‟ - Avendus Source : „India Goes Digital‟ - AvendusIn the short to medium term, it seems increasingly likely that e-commerce companies willfollow a two-pronged strategy:A ) Developing their own delivery channel for the metros.B) Relying on outsourced parties for tier 2 and 3 cities where they are subscale.
  • 48. Online Retail
  • 49. Ecommerce Master Class :: Online Retail ::Index.2.a. Introduction to Online Retail.a. What is Online Retailb. Why Online Retail
  • 50. Online Retail :: Introduction ::What is Online Retail Online Retail is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. Source : Wikipedia An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is also called business-to-consumer (B2C) online shopping.
  • 51. Online Retail :: Introduction ::Why E-Retail: The Reasons remain the same over years E retail Consumer Value Proposition.
  • 52. Online Retail :: Online Retail in USA
  • 53. Ecommerce Master Class :: Online Retail ::Index.2.b. Online Retail in USAa. History of Online Retail USb. Proposition of Online Retail in US.c. Share of Revenues by Segments : USd. The Growth & Share story.e. Challenges faced initially by US. brick n mortar stores on Online medium.f. Top US. E-Retailers by revenuesg. Retailers entering online space.h. Managed Services Companies.i. Case Study : Walmart Vs Amazonj. Current Retail Industry in USA some trendsk. Top US Failures & Learning.
  • 54. INTERNET RETAILER TOP 500 RANKINGOnline Retail :: Online Retail in USA :: History of Online Retail US. ::Online Retail boom started in 1994 in US. WEB SALES AS A % OF TOTAL SALES 2 17 18 41.6 % 6.0 % 16.0 %Launched staples.com in 1998. Launched macys.com in 1997. Starts victoriassecret.com in 1995. 20 24 29 8.4 % 8.9 % 5.6 %Launched jcpenney.com in 1994. Launched gap.com in 1997. Launched toysRus.com in 1998. 53 57 118 7.8 % 11.6 % 4.9 %Launched staples.com in 1996. Launched ae.com in 1998. Launched staples.com in 1997. Source: Internet Retailer „10 Within 4 years all major stores went online.
  • 55. Online Retail :: Online Retail in USA ::Proposition of Online Retail in US. Convenience Hard To Find Price
  • 56. Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::Convenience : The Consumer Proposition Selection Convenience Sit @ Home and Get it Books, Music, Movies,…. Deep Research Value Proposition , Categories and Formats.
  • 57. Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::Hard to Find: The Consumer Proposition. Cannot get it Anywhere Get it here Hard to Find C2C Commerce Antiques, Coins, Radio Controlled Toys …. Local became National with second hand goods Value Proposition , Categories and Formats.
  • 58. Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::Price: The Consumer Proposition. Price Discovery Inventory Clearance Auction, Volume Discount Aggregation Price Electronics, Computers, Value Proposition , Categories and Formats.
  • 59. Online Retail :: Online Retail in USA ::Share of revenues by Segments. US Mass merchant does not include marketplaces like ebay.com
  • 60. Online Retail :: Online Retail in USA :: Share of revenues by Category. US ::Detailed Category Division. US. Source: Internet Retailer.US 2011
  • 61. Online Retail :: Online Retail in USA ::The Growth and Share Story….. “Lets hold the plans to open another two retail stores, lets invest the same capital to build a online web store for „GLOBAL‟ sales” …a top US offline store.
  • 62. Online Retail :: Online Retail in USA ::Challenges faced initially by US. brick n mortar stores on Online medium??? How will we What is reserve How will we Online Inventory ? Integrate with Marketing ? How do we ship our ERP ? Individual Orders? How do we plan We don‟t have a We have no idea Supply for our store Online Merchandising plus online ? about Online Plan ! Technologies ! How do we Manage Returns? Does it seem like a same story everywhere ?
  • 63. Online Retail :: Online Retail in USA ::Top US. E-Retailers by revenues. Online Sales: $34,200,000,000 2010 Growth: 39.5% Online Sales: $4,095,000,000 2010 Growth: 17.0% Online Sales: $2,500,000,000 2010 Growth: 8.7%Source: Internet Retailer US
  • 64. Online Retail :: Online Retail in USA ::Retailers entering online space and dominating the online retail space. But Amazon still remains the market leader….Source: Internet Retailer US
  • 65. Online Retail :: Online Retail in USA :: Managed Ecommerce Solutions ::A Lot of Retailers opted with outsourcing it to Managed Service Companies GSI Commerce® is a leading provider of ecommerce and interactive marketing services for the world‟s premier brands and retailers. A lot of retailers opted to outsource the area of non competence and left it to specialist
  • 66. Online Retail :: Online Retail in USA ::Case Study. Retail versus Online Retail.
  • 67. Walmart. vs Amazon.Round 1. Market Performance.
  • 68. Walmart. vs Amazon.Round 2. Products & Prices. Food For thought If the cost of monthly shipment and cost of trips to retail shops equals Amazon would always be cheaper and occupy the pricing proposition completely
  • 69. Walmart. vs Amazon.Round 3. Brand Performance. Amazon by proving higher brand ranking and customer service has proven that this model can deliver to consumer expectations
  • 70. Walmart. vs Amazon.Round 4. Expansion & Innovation.
  • 71. Walmart. vs Amazon.Projected Revenue. Key Take Away •Amazon is projected to surpass Wal-Mart in sales revenues in the year 2024.
  • 72. Online Retail :: Online Retail in USA :: Trends to Watch for ::Research it Anywhere, Buy it Anywhere Get it Anywhere….. “Multichannel is the New Reality”
  • 73. Online Retail :: Online Retail in USA :: Trends to Watch for ::E Retailer have affected a few industry very hard…..A few category retailers in US. shut down stores asunable to compete with online retailers & competitors.
  • 74. Online Retail :: Online Retail in USA :: Top US eRetail Failures ::Top US. eRetail Failures and Learning Webvan.com : Online Grocery: To Fast To Soon. •In a mere 18 months, it raised $375 million in an IPO, •expanded from the San Francisco Bay Area to eight U.S. cities, •Building a $1 billion high-tech warehouses. Webvan touted a 26-city expansion plan. •But considering that the grocery business has razor-thin margins to begin with, it was never able to attract Webvan (1999-2001) enough customers to justify its spending spree. •The company closed in July 2001, putting 2,000 out of work. Pets.com : Online Pets Store •Pets.com was never able to give pet owners a compelling reason to buy supplies online. •When you need kitty litter, you need kitty litter.Pets.com (1998-2000) “TIMELY FULFILLMENT IS CRUCIAL in some Categories and is the Key Value”. Ideas that could not sustain the dot com burst.
  • 75. Online Retail :: Online Retail in USA :: Top US-UK eRetail Failures ::Top US. eRetail Failures and Learning Kozmo.com : Online Mass Merchant. •On Kozmo.com order a wide variety of products & get them delivered to your door for free within an hour. •Kozmo expanded to seven cities, delivery cost was too much to deliver a DVD and a pack of gum. •Kozmo eventually initiated a $10 minimum charge, but that didnt stop it from closing in March 2001 andKozmo.com (1998-2001) laying off 1,100 employees. “BEWARE OF Key COST Element before making it the key Value Proposition”. Boo.com : Online Fashion Retailer. •Founded in the United Kingdom as an online fashion store, Boo.com had a complicated Web site, relied heavily on JavaScript and Flash, was very slow to load at a time when dial-up Internet usage was the norm. • Boo spent wads of cash to market itself as a global company but then had to deal with different languages, pricing, and tax structures in all the countries it served.Boo.com (1998-2000) • Sales never reached expectations. Boo.com eventually burned through $160 million before liquidation in May 2000. “Too AHEAD AND Too BEHIND IN TECHNOLOGY ARE BOTH DANGEROUS” Ideas that could not sustain the dot com burst.
  • 76. Online Retail :: Online Retail in India
  • 77. Ecommerce Master Class :: Online Retail ::Index.2.c. Online Retail in India a. Traditional Retailing Scenario in India. b. Modern Retailing in India. c. Modern Retailer Issues. d. Indian Retailers Jumping to Internet E-Retail. e. Online Retail Market Size in India. f. Current Share of market size by segments. g. Products bought online within & across the world . h. Challenges in Pure-Play Online Retail. i. Indian Eretail Landscape.
  • 78. Online Retail :: Online Retail in India ::Traditional Retailing Scenario in India. 1. The Location advantage 2. The Familiarity Advantage Grab it from the next door shop is always The traditional retailers are the familiar possible as the spread of traditional store is so one to generations. strong. Interestingly, this familiarity leads to building the This is one advantage which the modern strongest relationship as well as the trust retailers would be interested in adapting. mutually. Almost every street in the country has a retail identity. 3. The Product Advantage 4. The Credit Advantage Though the range of products sold by them is Another interesting area is that they offer only limited, they have the advantage of monthly credit to the customers. selling in small denominations which majority of the customers favor. “This not only helps the salaried class but also it relieves our worries for keeping the change ready every time we purchase”. This keeps them the most understanding retailer than the modern retail.
  • 79. Online Retail :: Online Retail in India ::Modern Retailing. Modern Retail Market Share: Indian retail business values at around US$ 550 billion as of now. 4 per cent accounts for the organized sector. Source :ibef.org 1. Greater product assortment across categories 2. Technological advantage with modernization at its best. 3. Nation-wide large retail chains offering similar assortment in most of the categories. India‟s Challenge is that we are handling two revolution i.e. Modern Retail and Online Retail together where as in US it happened one after another
  • 80. Online Retail :: Online Retail in India ::Modern Retailer Issues. 2009Currently retail stores are facing a lot of hurdles in running their businessesAnd they are not too mature in comparison to E-Retail. We are looking atboth Internet Retail and Modern Retail maturing together
  • 81. Online Retail :: Online Retail in India ::Indian Retailers getting into eRetail. tech content mkting cust care fulfillmnt Offline Retail Online Retail Store retailers are now getting into online retail as consumers are moving online.
  • 82. Online Retail :: Online Retail in India ::Online Retail Market Size in India. Online Retail is still very small percentage of the ecommerce pie and significantly under penetrated in comparison to US Market The market is growing significantly but early days.
  • 83. Online Retail :: Online Retail in India ::Current share of the online market by segments. Niche Retailers have garnered significant market share in last 3 years.
  • 84. Online Retail :: Online Retail in India ::Products Bought Online within and across the world. Source: Ebay Reports The Impact of E-retail is increasing across geographies and product lines
  • 85. Online Retail :: Online Retail in India :: Challenges in Online Retail ::Security & legal challenges: The Road is Usual i.e. with Hiccups The Road is Usual i.e. with Hiccups
  • 86. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Legal Issues ::Examples of Security & legal challenges..Avnish Bajaj Case : Bazee.com ET, Dec 21, 2004 CC Avenue : Hacking case May 05, 2011 Interpretation of marketplace is totally not known, and Security Challenges exists in all CYBER LAWS are not developed in India developing industry and E-retail is not away from it
  • 87. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Heavy Competition::429+ significant players now operating… Source : Iksula Consulting and many more….
  • 88. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Taggle.com story ::“It Also Happens in India” Seems like a last man standing game has started in pure play internet retailers.
  • 89. Online Retail :: Online Retail in India ::Indian E-Retail Landscape: A Summary. VerticalSource : „India Goes Digital‟ - Avendus
  • 90. Online Retail :: Online Retail in India ::Case Study. Online Apparel Industry in India: A peep Into the future.
  • 91. Online Retail :: Online Retail in India :: Online Retail Market Size in India :: Case Study ::Retail Category – ApparelsStep 1: Market size estimation•Apparel Market will be Rs 28,880 Crore in size by 2015•Rs 4,70,000 Crore ($104,450 million) by 2020 .Step 2: Estimation of online penetration in the sectorAssumption:•China‟s 2010 penetration level (3.6%) by 2015• US‟s penetration level (10%) by 2020.•20% by Market Share is also a fair EstimateStep 3: Share of the Market Leader If you are the market leader ( Rs Crore)Assumption:•Market leader commands 8-20% market share in west and in China, afew players have market shares in excess of 40%.We have assumed a Potential Revenues 1575conservative estimate of 15% market share for the market leader . Share of the market leader 15%•This translates into gross revenues (or GMV) of Rs 1600 Crore (~$350million) in the year 2015. "This could be larger then a LOT of Large Source : „India Goes Digital‟ - AvendusRetailers at that time also
  • 92. Thank YouFeel free to contact us for further queries samar@iksula.com +919867020005