E retailing in india

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E-retailing in India - identification of value parameters, need gaps, diversification, insights

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E retailing in india

  1. 1. E-Retailing Akshat Jain Pratik Changede
  2. 2. E-Retailing Findings • Research Results • E-Retailing Insights & Trends • Diversification Trends • Segmentation Matrix • Value Parameter Need Gap • Advertising - Need Gap • Need Gap • Innovative Concepts - Need Gap
  3. 3. E-Commerce India – Projection & Overview
  4. 4. E-Commerce India – Projection & Overview
  5. 5. E-Commerce India – Projection & Overview
  6. 6. E-Commerce India – Projection & Overview
  7. 7. E-Commerce India – Projection & Overview
  8. 8. E-Commerce India – Projection & Overview
  9. 9. E-Commerce India – Projection & Overview
  10. 10. E-Commerce India – Projection & Overview
  11. 11. E-Commerce India – Projection & Overview
  12. 12. E-Commerce India – Projection & Overview
  13. 13. Primary User Survey• 15 value parameters• 78 questions in total to obtain a good cronbach alphaSource: Primary User Surveys
  14. 14. Survey Value Parameters & Cronbach Alpha Cronbach Alpha for S.No. Value Parameters each Value Parameter 1 Security of Transactions 0.8068 2 User Interface Design of Website 0.8097 3 Flexible payment options 0.7971 4 Full cost disclosure (transparency) 0.7952 5 Quality of products delivered 0.8608 6 Return policy of products 0.8228 7 Response time of website 0.8471 8 Product Tracking and Delivery Time 0.6649 9 Discounts & Daily Deals 0.7798 10 Customer support 0.7411 11 Efficient Payment & Check out process 0.6541 12 Packaging 0.8730 13 Multiplatform accessibility 0.7652 14 Rating and Reviews 0.7046
  15. 15. Sample Anova [Flexible Payment Options | Students & Working Group]Source: Primary User Surveys
  16. 16. S.no. Value Parameters Students (18-24years) Working People (25-30 P-value years) (level ofResearch significanc e ofStudents/Working People ANOVA) Mean Standard Mean Standard deviation deviation 1 Security of 4.7000 0.3679 4.4588 0.5602 0.059 Transactions 2 User Interface Design 4.3143 0.5268 4.0924 0.6408 0.179 3 Flexible payment 4.3964 0.5389 3.8403 0.5974 0.001 options 4 Full cost disclosure 4.6563 0.3827 4.1618 0.6246 0.100 5 Quality of products 4.7950 0.3522 4.6706 0.5654 0.317 6 Return policy of 4.7250 0.4499 4.6000 0.6000 0.390INSIGHTS?? 7 products Response time of 4.3125 0.5904 3.7941 0.9153 0.013 website 8 Product Tracking and 4.4500 0.4641 4.2794 0.6243 0.258 Delivery Time 9 Discounts & Daily 4.0667 0.6513 3.6667 0.4410 0.025 Deals 10 Customer support 4.4350 0.4812 4.1412 0.6032 0.056 11 Efficient Payment & 4.3917 0.5842 4.2549 0.5955 0.425 Check out process 12 Packaging and 4.6813 0.5280 4.3382 0.7123 0.049 delivery 13 Multiplatform 3.8429 0.5893 3.2521 0.7311 0.002 accessibility 14 Rating and Reviews 3.9375 0.6349 3.8382 0.7803 0.616Source: Primary User Surveys
  17. 17. S.no. Value parameters Male Respondents Female Respondents P-value (level ofResearch significance of ANOVA)Men/Women Mean Standard Mean Standard deviation deviation 1 4.6634 0.4414 4.4211 0.8509 0.150 Security of transactions 2 4.2578 0.5451 4.1504 0.7071 0.521 User Interface Design 3 4.1812 0.6365 4.1429 0.7331 0.837 Flexible payment options 4 4.5183 0.5712 4.3553 0.8871 0.395 Full Cost Disclosure 5 4.7950 0.3522 4.6706 0.5654 0.317 Quality of productsINSIGHTS?? 6 Return policy of products 4.7000 0.4664 4.5474 0.9216 0.396 7 4.1280 0.7809 4.1316 0.7282 0.987 Response time of website 8 4.4268 0.4751 4.2237 0.8854 0.251 Delivery time and Tracking 9 3.8537 0.7343 3.8772 0.6451 0.905 Discounts and Daily Deals 10 4.3659 0.5566 4.1474 0.8611 0.242 Customer Support 11 4.3984 0.5687 4.1404 0.9116 0.185 Payment and Check out process 12 4.3073 0.5798 4.1895 0.7731 0.514 Packaging and Delivery 13 3.6433 0.6426 3.4737 0.6790 0.354 Multiplatform Accessibility 14 3.9268 0.6988 3.6842 0.7446 0.225Source: Primary User Surveys
  18. 18. Primary Survey Insights • Lazy people prefer this. Due to climatic conditions people prefer • They want to avoid long queues in festive times • People want mobile apps, they want to access through mobiles in locals • Tablet owners are using and enjoying e-retailing through tabs • Most people prefer COD. They want to touch and feel the product first • People want methods which can reduce the gap between virtual and real shopping • Retired people spend a lot of time on the online shopping websites. • Buyback schemes • Order backup by call, SMS (users preference) • Generally people avoid making online payments in cyber cafe • Conditions apply***** • People are buying what is being liked by their friends • They want the product delivery within a day • Lack of trust • Want simple looking well arranged website designSource: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research
  19. 19. E-Retailing Insights • E-Retailing will grow w.r.t bad climate • E-Retailing will grow w.r.t Festivals (also Black Friday, Cyber Monday etc.) • Need of Mobile applications, Mobile websites (lite versions) • With Amazons Kindle, tablets, multiplatform accessibility rising • Need of Cash on Delivery, Free Shipping and Teleshopping • Integrated channels growth : Click & Collect, Internet-Transaction enabled TV • Cross border E-Retailing will develop more rapidly • Virtual shopping  Real shopping experience (Location based deals, price comparison, reviews, recommendations, social media role) provide fans with a positive experience, keeping the social aspect in focus, evolving from just liking and commenting on products. Magazine Voce • For the youth concept  For everyone • Touch n Feel  Enhanced Experience [via videos (ASOS website, Australian)]Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research
  20. 20. E-Retailing Insights • Art of Advertising – mainly via social media/sponsorships • Analytics/location based personalized marketing • Earn Points on purchase/mint cards • Hundreds of online retail websites coming in to picture. • Direct Marketing/Affiliate Marketing • Implementation of Advanced Payment Methods – NFC, eWallet, Google Wallet, Mobile wallet, Wire Transfer, Part payments, payment via machines on COD, EMI, credit card capture • Not just small things but expensive things like cars, jewelry etc. will also start selling online on a large scale. • Reducing the lead time. Opening of new warehouses and building logistics/analytics • Websites will focus on User Interface Designing • BestBuy eWaste. Such schemes will come up. • Rising Investors (Bollywood)Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research
  21. 21. Need Gap • E-Retailing Kiosks machines like ATMs • Pre-installed e-retail applications with new mobile phones purchased • QR Code integration – Spontaneous shopper (Tesco) Print ads, posters with QR codes and promotional codes. Scan it to purchase. Also pay the bills. • Payment via Mobile phone balance • Payment via finger prints/Facecash • Cash Before Delivery • Payment on Website = Payment on Delivery • Myntra, Inkfruit: dynamic T-Shirt advertising • Sharing the liked product link or image with friend or relativesSource: Primary User Surveys
  22. 22. KiosksSource: Primary User Surveys
  23. 23. Diversification Insights • Players to have their own physical stores and logistics. Ex Flipkart • Courier services • Payment Gateway Business: 90% of people visiting a site walk away without transacting, and another 5% are unable to transact because of payment gateway issues. Snap Deal , Mr Tony Navin, Vice-President • Dedicated TV shopping channel • eBook Reader | Amazon – Kindle Fire • NDTVShopping.com (its powered by Infibeam) and with other big retailers like HiDesign. Thus company provides e-commerce platform, supply chain and associated infrastructure as a service to large retailers and brands in India: Mr Vishal Mehta (CEO, Infibeam) • Setting online business for other retail shops. Ex. Infibeam’s buildabazaarSource: Primary User Surveys/Fact Finder/Forrester/ fourthsource
  24. 24. Innovative E-Concepts Need Gap Existing but can multiply • Freshsubzi.com: vegetables, south delhi (1 lakhs) • Carwashwale.com : car washing, NCR (3 lakhs) • EasyFix.in: carpenter, plumber, electrician, delhi (2 lakhs) • Theshoespa.in: Shoe repair and coloring (1 lakh) • BelitaIndia.com: door to door beautician services, mumbai nagpur (6 lakhs) • Kabbs.in: pets spa, chennai (3 lakhs) • Storemore.in: stores goods @ 1 per day, NCR region • Yummytiffins.com: serving dabbas, mumbai (4 lakhs) • Rental websites-books (librarywala.com, 10 lakhs), bags, Jewellery, accessories, bridal wear others • Food at night • Evolvex May Come • DailyDairy • Online pharmacy • Buyback based websites, rental based (Toys) • Raddiwala • Cloths on rent (santa, krishna) • School material, uniforms onlineSource: Primary User Surveys
  25. 25. Advertising Need Gap • Simplicity • Security • Discounts • Comparison Shopping Ex: Original Products Original Warranty/No Kidding No Worries/We work with a simple belief/Earn by delivering/hot deals/discounts/better prices • Climate factor: Bad weather’ boosts ecommerce activities. Insights were gathered by combining web analytics and weather data. Data from web analytics has been correlated with temperature and cloud cover. Have mobile apps for other seasons. • High fuel prices (cost saving): Leads to an increase in ecommerce sales as people look to save a by shopping online. Carnegie Mellons Green Design Institute estimate fuel costs can be reduced by as much as 35% through the use of e- commerce. • Best for the old age people • Purchase products on pajamas laying lazily on bed • Green Issues • Time Saving • Real Shopping ExperienceSource: e-dialog/http://darksinistar.hubpages.com/hub/25-Tips-for-Saving-Fuel-Saving-Gas-Means-Saving-Money
  26. 26. Front End – Connecting Users
  27. 27. Television advertisementFlipkart.com Flipkart.com
  28. 28. Delivery boys bagT-shirts & other merchandise
  29. 29. Carry bagsPackaging
  30. 30. Sponsorship
  31. 31. Mobile applicationsPromotion SMS’s
  32. 32. Wallpapers and Screensavers
  33. 33. Social works
  34. 34. Via TV ChannelsVia ads in Movies
  35. 35. Segmentation Matrix School Children 5 4 4 4 3 4 3 4 4 5 3 3 3 5 3 College Students 5 5 5 4 4 5 5 5 5 5 5 4 5 5 5 Working Men 5 3 4 5 5 5 5 4 5 5 5 5 3 5 4 Working Women 5 4 4 5 4 5 5 4 4 4 4 3 5 4 4 Non Working Women 5 4 4 4 5 5 5 3 3 5 4 3 5 4 3 Non Working Men 5 3 3 5 4 5 4 4 3 5 5 4 3 4 4 Old people 5 4 4 5 3 5 5 4 4 5 5 4 5 4 2Source: Primary User Surveys
  36. 36. Segmentation Matrix School Children College Students Working Men Working Women Non Working Women Non Working Men Old peopleSource: Primary User Surveys
  37. 37. Value Parameters Need Gap • Security of Transactions • Packaging • User Interface Design • Multiplatform accessibility • Flexible payment options • Product Delivery Lead time • Full cost disclosure • Privacy of personal information • Quality of products • Return policy of products • Response time of website • Delivery Time & Tracking • Discounts & Daily Deals • Customer support • Efficient Payment & Check out process • Rating and ReviewsSource: Primary User Surveys
  38. 38. Strategy Canvas – New 10 9 8 7 6 5 4 3 2 Inkfruit 1 Homeshop 18 0 Amazon Ebay FlipkartSource: Primary User Surveys
  39. 39. E-Retailing Findings • Naaptol Sales : Contains 45% of refurbished goods • Retail : Smell Advertising • For gifting : Billing and Shipping Address • Shopping Cart Abandonment • Flipkart : 3 step payment process • PC-broadband is an important factor for driving growth in e-commerce • Increase in online businesses, so automatically increase in number of entrepreneursSource: Shashank Singh (AM Infinity Retail, CROMA), DMAGICS, Avendus Analysis – India Goes digital
  40. 40. ThankYou
  41. 41. Strategy Canvas – Old 10 9 8 7 6 5 4 3 2 Inkfruit 1 HomeShop18 0 Amazon Ebay FlipkartSource: Secondary Surveys
  42. 42. Online Shop - setup charges Rs. E-Retailing establishment costs Web development 10,000 Preliminary research Staff training Database Integration Advertising Domain name registration Hardware - Computer Total establishment costsSource: Primary User Surveys
  43. 43. Online Shop - setup charges Rs. E-Retailing establishment costs Web development 10,000 Preliminary research Staff training Database Integration Advertising Domain name registration Hardware - Computer Total establishment costsSource: Primary User Surveys

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