INFIBEAM.COM: Where customers could browsethrough products and have the same delivered withinIndia within a few days. 1.5 % Market Share in 3 Years Successful Partnerships with many retail Giants Do-it-Yourself E-Commerce platform for OtherRetailers
Expansion to Newer formats: Photo PrintingWebsite and Remote Cataloguing Company Vishwagram Bazaar in collaboration withGovernment of Gujrat to expand and tap into theupcoming rural market
People not comfortable in transacting online. Still inadaptation process Low internet penetration (only 42 mill users with3.7% penetration Payment and Physical infrastructure not muchdeveloped Main Offering: Pricing, Selection and Convenience. Wide Selection (Virtualization of Inventory) Low penetration of Credit and Debit Cards.
Growing Internet Subscription Rate Lacklustre execution and poor customer serviceprimary cause of closure of players. Few Sites could build trust and loyalty Challanges: Supply Chain Accurate and Timely Delivery of products Complex system of Taxation
Company Started Merchandise Promotio Sales Users Misc in nFlipKart Octobe Books, CDs, SNS and 250 Mill in 50000 Books r 2007 DVDs, WOM, TV 2007 0 are top Mobiles, Ads 75 Cr in 2010-11 selling Computers, categor Music, y, Movies projecte Games, d Gadgets revenue of 1 Bill in 2014- 15Ebay 2004 Practically Social and ----- 2.5(C2C) Anything Viral Million between Marketin users (50000) g, Print and TV
Company Started in Merchandi Promotion Sales Users Misc seIndia Plaza 1999 Books, Rewards 20 Cr in --- Low Prices(NRI Pop) music, and loyalty 2007 Reliable camers, programs operations mobile, for Banks, appliances Airlines etc , flowers, cakes, toysRediff 1996 Books, car ‘DEAL HO 14.6 Mill in 15 Million -- accessorie JAYE’, 2009-10 every s, h/w, 17.94 mill month health and in 2010-11 beauty, jewellery, kitchenwa re, apparel, electronics and toys
Company Started in Merchandi Promotion Sales Users Misc seIndiatimes Elecronics, Brand 312 mill in 47 mill in Good apparels, Image of 2009-10 2010 distributio watches, Parent n network bags, Company and jewellery, different gifts payment options, Encrytion tech and privacy rules
Wide Variety/Depth of Products (using virtualizationof inventory). Consistent addition to product portfolios. Ability to search for products on various parameters(individually or in combinations) Additional Features: What your Friends Viewed, Youmay Also Like, Products similar/Related to this. Referral Programs. Social Media interaction Improving the online experience with navigation,search, online help and porting over shopping lists
Online Coupons Loyalty Programs Discounts Seasonal or Festival Sales Promotion Codes
Magic Box – One product everyday at a heavilydiscounted price Maintain low prices across categories Lowest possible price throughout year Regular monitoring of competition’s prices to settarget purchase prices Robust supply chain of tail products helping inincreasing sales
Also keep track of prices in modern retailers to beatthem More discounts, offers during weekends to increasetraffic Use of automated pricing technology - whichautomatically adjusts prices within specified businessrules when a competitor changes their prices onproducts Increase margins on tail products Price discrimination - Identify the sources throughwhich customers come to the website -- and priceaccordingly
Product Categories 5 Share of OrdersBooks and Magazines 50Electronics 25-Home Entertainment and appliances 38- Computers, cameras and peripherals 34- Mobiles and peripherals 28Lifestyle 25- Apparel and accessories 49- Home Lifestyle 32-Gifts 12-Others 7
Product bundling and cross selling for relatedproducts Increase seasonal merchandising (if not being donecurrently) Increase homepage coverage for Apparels whichcould have more margins (currently not shown onhomepage) Increase membership by Loyalty programs toincrease customization according to buying pattern,sex, affluence, age, etc.
WEB DESIGN CONSIDERATIONS FOR E-RETAIL STOREThe Simpler the BetterCustomers don’t expect to be confused by a super innovative and inconvenientnavigation or non-readable text. Store’s home page should not be overloaded with acomplex navigation structureNew Products/ Most favored product DisplayThese should be given discount so as to increase traffic, and should be on the veryfirst page. One slider banner with several rotating images (with vivid titles,discounted prices and special buying conditions) will be enough to grab visitors’attention and to make them follow the link to take a closer look at the featuredproducts. It will work for both first-time and returning visitors.Shopping by CategorySince products have a number of categories, hence the search or browsing should becategory wise or else the customers might get too confused
Creating Search Boxes A few seconds after entering the site, if a potential customer can’t find a thing he/sheneeds, more likely he/she will go away and find another store. Hence it is necessaryto have search boxesCreating a Product list with ImagesThoughtful products categorization will bring better results and help to arrange theweb space better. It is extremely important to have availability of images sincepeople shop visually. Home pages can’t include numerous pictures of all products,but they can be illustrated with the most eye-catching ones or the most favoredproducts.Contact InfoA good customer care from the website’s end assures the physical presence of theonline media, hence this is of prime importance.Payment SystemPayment system icons are usually located at the bottom of the home page or eventhrough the entire website. They are not clickable and just let us know how we canpay on this store. The payment should be accepted from a number of resources suchas credit card, debit card, online banking or even “cash on delivery” should be anoption.
Shopping Cart/ Checkout Link/ Account CreationPeople should create an account (but it’s not an obligation). It will not take muchtime but customers will be able to check their previous orders. Store should tracktheir customers account activity and present them with some discounts or specialbuying conditions. It’s considered that the upper left part of web pages is the most viewable becausevisitors start looking through a website’s content from there. Hence a shoppingcart icon as well as login should be present there to let the customers know theirpurchases.Name/ Website logoThe home page is not a place for self-promotion. Clear logo, store name and shortdescriptive sentences about what the company is be more than enough. This isbecause majority of customers are interested in the goods/ services being offeredrather than the company offering them.
SUPPLY CHAIN MANAGEMENT FOR E-RETAILING• Get in a contract with the suppliers within 20 kms of every e-gram that has to beestablished. For different areas there should be different suppliers.• Getting IT implementation on suppliers side to keep a check on inventory.• Implement better warehouse management, including tailored pick orders andstock replenishment by pre-set thresholds.• Implementing reverse logistics, incase the consumers want to sell their products• Track and manage inventory, including in multiple locations by getting up-to-dateinformation about in-stock quantities.• Real time access to customer records, sales histories and customer activity, foroffering better services, discounts and service recovery.• Implementing the information recovery of getting real time data of delivery ontime to the customers through 3rd party logistics.
SUPPLY CHAIN MODEL FOR E-RETAILING India PostWarehouse Customers infibeam.com World WideSuppliers Web
For Offline UsersTarget Consumers For online users Fund Raising Awareness• College going & • At least making • SEO -- The • PR – Since one of Young Men people aware of majority of their main• To tap them it as one of the shoppers choose objective is fund tools such as options in the e to click on a raising therefore Social commerce result from the space. first-page of this is one tool Networking sites results which they have are most • TV is most important. important tool • Affiliate to use more• Fan pages, for this purpose. Programs – Use discussion well known forums etc highly visited often. sites especially their Buildabazaar partners for exchange in ad space.
Customer Lifetime value is important but since themajor value proposition in this space is low cost so wethink its more about being in the consideration set ,providing best deals & hassle free experience. Although additional Customer acquisition cost dueto promotion & for awareness is calculated below:
Because of both low effectiveness & regulatory cap on SMS’s we suggest zerospend on the space, also one of the components could be PR but since we aretalking about direct additional customer acquisition cost due to promotion wehave not taken PR into account.
Amazon.com offered convenience of browsing millionbooks in a single sitting Used technical innovation to offer more productcategory Amazon operated retail website and allowed thirdparties to sell product on its site Operated several websites for search and navigation Offered e commerce platform to other retailers andindividual sellers to enhance revenue.
Launched in native language for online auction andshopping in year 2003 Offering for business retailer and individualentrepreneur to open their online retail stores Unlike eBay which charged listing fees it was free touse Local name drew the local crowd attention andpoached customer from rival eBay.
Understood its customer well and thus providedhigher satisfaction Unlike eBay’s listing which were more productcentric Taobao chose a customer centric listing Taobao targeted cell phone savvy Chinese customerover far less number of internet user( 5.3%penetration level in 2003) through instant messagingand voice mails.
Failed to recognize that Chinese market andbusiness environment very different than the west.Failed to understand the local market and usedwrong medium to reach to its target segment Didn’t customized its product according to localtaste and preferences instead stuck to its “ globalplatform” agenda.