The document discusses the growth of e-commerce in India and why it makes sense for retailers to establish an online presence. It outlines how e-commerce has grown significantly in India over the past decade. It then highlights the benefits of e-commerce for retailers, including access to over 100 million internet users, opportunities to engage existing offline customers online, and examples of mid-sized retailers finding success through e-commerce. The document also provides a case study of one retailer who launched an online store and fulfillment process that led to increased sales and brand reach.
1. E-commerce for retailers - Why it makes sense? Digital media is influencing consumers & businesses everywhere
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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
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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
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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!
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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…
Editor's Notes
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