Digital retail

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Digital Retail Market scenario in India

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Digital retail

  1. 1. Digital Retail<br />Key opportunities & challenges<br />
  2. 2.
  3. 3. Internet Size in India<br />500-700 Mn Mobile users<br />India 4th largest Internet users <br />Broadband : Annual growth rate > 60%<br />50 to 80 mn Internet users<br />Mobile internet on the rise<br />
  4. 4. Internet Size in India<br />Internet penetration > 10% in some states<br />Small revenues significant eyeballs<br />Total English print media readership 50 mn<br />3G etc > A leap sooner than we expect<br />
  5. 5. eCommerce:: some facts<br />
  6. 6. Travel<br />More than 50,000 people flying daily using tickets bought through the Internet<br />Close to 3 lac tickets sold by IRCTC online every day<br />
  7. 7. Group buying / Coupon/ Deal sites<br />SnapDeal: $ 12 Mn funding<br />Letsbuy - $6 Mn<br />SoSasta: Acquired by Groupon<br />Fashionandyou - $ 8 mn<br />Almost 5k transactionsdaily amongst 15+ players<br />Taggle - $8.75 Mn<br />BuzzinTown expands into deal a day<br />
  8. 8. Why is the space becoming exciting<br />
  9. 9. Are we on an inflection point in eCommerce?<br />Online connectivity increasing, > more people spending increasing time online<br />Gen next growing with all round presence of Internet > homes + schools. <br />Nuclear Urban families. Huge paucity of time > pre shopping research online<br />Social media > paving way for social commerce<br />More propositions, deals, convenience spurring people to buy online<br />
  10. 10. Are we on an inflectionpoint in eCommerce?<br />Consumer’s habits are changing rapidly<br />imperative to be present where the consumers want to look for them and in the manner in which the consumers want to engage with them<br />There cannot be any debate on the importance for Brands to be available online<br />
  11. 11. The question is Will the brands be available when they are ready to buy online?<br />
  12. 12. An analysis of 14 Brands / Retailers <br />6 out of 8 Brands that did not have their own ecommerce enabled site were selling their products on some other shopping portal.<br />More than half of them did not even have their own ecommerce enabled website!<br />
  13. 13. Where are the retailers?<br />USA: <br />eBay: 8th <br />Amazon: 9th <br />Wal-Mart: 45th<br />BestBuy: 52nd<br />Target: 63rd<br />Groupon: 94th<br />Indian retailers:<br />Snapdeal:35<br />eBay: 53<br />BigBazaar: 40,695<br />ShoppersStop: 1,534<br />
  14. 14. So what is holding back the retailers foraying into e-commerce?<br />MINDSET<br />
  15. 15.
  16. 16. Promotion – Traffic/ customeracquisition<br />
  17. 17. Online Advertising Gateways available<br />
  18. 18. And we can measure... at each STEP!<br />Evaluate based on life time value of user/customer<br />
  19. 19. Online Advertising Gateways: SEARCH<br />
  20. 20. Search – Big..Bigger....Biggest<br />PPC<br />PPC<br />Natural/ SEO<br />
  21. 21. SEO<br />PPC<br />Natural/ SEO<br />Source: Yahoo! Research report on Characterization of Online Search Behaviour<br />
  22. 22. Online Advertising Gateway: Affiliate<br />
  23. 23. Online Advertising Gateway: Display<br />
  24. 24. Online Advertising Gateway: Social Media<br />
  25. 25. Use online as a customer acquisition medium for offline stores / business<br />
  26. 26. let us talk!<br />vikram@eqnova.net<br />

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