Consumer confidence Secure payment systems Peer endorsements Reliable logistics systems Known retailers are online Flexible purchasing options Customers from Tier-2 and Tier-3 cities are also shopping Consumer Value Consumers finding known local brands Local offers & promotions available Flexibility in shopping, payments – EMI, COD, Credit cards etc. Broad selection of merchandize Ease of moving across channels – online, social, mobile and offline Capabilities Easy to use technology platforms Affordable and simple payment systems Flexible & affordable logistics systems Integrated solutions Quick turnaround time Cohesive cross-channel experience
1. E-commerce for retailers - Why it makes sense? Digital media is influencing consumers & businesses everywhere
2. A little bit of background <ul><li>A decade of e-commerce </li></ul><ul><li>1000 retailers </li></ul><ul><li>Platform & solutions </li></ul>Should I do e-commerce? Why? How costly is it? Can I do it? Is this the right time? Can you explain how? A typical letter from a retailer
3. E-commerce in India – A quick overview 2007 Rs.7,800Cr 2011 Rs.47,000Cr 4 years 6x growth E-tailing or retailing e-commerce Electronics Jewellery Shoes Fashion Books Home Appliances Flowers Mobiles Computers Toys Gifts 2011 Rs.4,000Cr Up 6x in 4 years 2005 USD 2 bn 2010 USD 33 bn 5 years 17x growth China India 2015 ???
4. What is driving e-tailing ? Consumer confidence Consumer sees value Capabilities of retailers BRAND Technology In a box
5. Indian consumer behaviour overview Trigger Research & suggestions Purchase Post purchase sharing Web Mobile Social In-store Example consumer flow Omni-channel commerce
6. Why does it make sense for Indian retailers today? Opportunity Partners offer capabilities Consumers look for you It’s not difficult! Over 10Cr Internet users and 2Cr social networking users in India – a real base! Mid-sized as well as large retailers are seeing success in India Retailers and consumers all across India are participating in digital commerce Existing offline customers are your starting point – you already start with customers! Consumers extensively search for retail names (offline retailers) when shopping online 3 out of 5 organized retailers that we talk to are considering digital as serious channels 90+ out of top 100 online stores belong to offline retailers
7. Case study – A mid-sized fashion retailer <ul><li>A mid-sized fashion retailer with 7 stores in Hyderabad </li></ul><ul><li>Strong in ethnic fashion and good local brand presence </li></ul><ul><li>In-house operations team </li></ul><ul><li>Should we start e-commerce and if yes then how? </li></ul>My online store should be like the Samsung website I want to get 1000 orders within 1 month Expectations on Day 1 Build an online store that will appeal to my target audience Build a repeatable and scalable model to sell online Expectations on Day 5
8. What they did? Top selling products Merchandise assortment Promotions & offers Promote gifting Online store – reflect brand, focus on categories… Flexible payment options Credit/debit cards, Net-banking, COD etc. Good delivery experience Started with 10 cities Link online & offline Online leads for offline sales, offline promotion of online Observe, plan, scale, repeat Scale up to 20 cities and then a store for US customers… Budget for 1 year - Rs. 400,000 + Rs. 40 for shipping each package + 2.5% payment processing charges + 3% affiliate commissions – All inclusive!
9. A look at the whole setup Online store Technology platform from MartJack 1 retail store acting as fulfillment center 7 retail stores Payment processing from HDFC Bank Logistics support by Bluedart Offline promotions are now online promotions too! Web Facebook Walk-ins In-house operations team Partner support for design & related activities Phone
10. Avoiding pitfalls & increasing the chances of success Effectively acquire new customers Provide flexibility to consumers Provide a rich experience Focus on customer service Cost of Technology Cost of Operations Cost of Advertising Cost of Support Know your target audience Promotions & customer engagement Focus on your assortment strengths Be where the consumer is! Plan, focus on customers & Scale Manage your costs efficiently Remember – etailing is retailing
11. Some specific aspects of e-commerce for brands “ 58% of the consumers ranked manufacturers ’ website as the most preferred destination for product and purchase information” <ul><li>Rich product experience across own, dealers’ & retailers’ online stores </li></ul><ul><ul><li>Complete product details </li></ul></ul><ul><ul><li>Rich experience with videos, brochures, images etc. </li></ul></ul><ul><ul><li>Syndicate content to retailers’ as well </li></ul></ul><ul><li>Consumers often search for brands – direct to consumer online stores make sense </li></ul><ul><li>Allow your dealers & retailers to participate in e-commerce – connected experience for your consumers </li></ul><ul><ul><li>Dealer locator is now “Shop now from your nearby dealer” </li></ul></ul><ul><li>Connect to consumers across channels – offline, mobile, social, web </li></ul>
12. Partnerships – Reaching a larger consumer base XYZ Media XYZ News XYZ Services XYZ.com Consumers Deals from Your online store Affiliate channels Reach consumers where they already are!
13. E-commerce in India - Some anecdotes <ul><li>A camera merchant sold 200 cameras/day with promotions – That’s equal to his one month sale </li></ul><ul><li>An apparel merchant got 70,000 fans on Facebook in 4 months </li></ul><ul><li>Shoes website sends 2 pair of shoes to consumer for him to decide his correct size </li></ul><ul><li>Products worth over Rs. 50,000 being sold with EMI option </li></ul><ul><li>Even mangoes are being sold online </li></ul>
14. Thank you Villagers in Qingyan Liu Village were once all farmers In 2009, Qingyanliu villagers earned 121 million U.S. dollars from their online sales! You too can be successful at e-commerce provided you Are present across channels Play to your strengths Leverage ready to use solutions Plan, sell, scale, repeat…