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NOTICE:	
  Proprietary	
  and	
  Confiden5al	
  
This	
  material	
  is	
  proprietary	
  to	
  Shopsense.	
  It	
  contains	
  trade	
  secrets	
  and	
  confiden5al	
  informa5on	
  which	
  is	
  sole	
  property	
  of	
  addSale.	
  This	
  material	
  is	
  solely	
  for	
  the	
  Client’s	
  internal	
  use.	
  This	
  
material	
  shall	
  not	
  be	
  used,	
  reproduced,	
  copied,	
  disclosed,	
  transmiBed,	
  in	
  whole	
  or	
  in	
  part,	
  without	
  the	
  express	
  wriBen	
  consent	
  of	
  addSale.	
  
©	
  2014	
  Shopsense	
  Retail	
  Technologies,	
  All	
  rights	
  reserved.	
  
www.shopsense.co	
  
talk@shopsense.co	
  
@shopsenseco	
  
Indian	
  Retail	
  Scenario	
  
Understanding	
  the	
  Shopper	
  
2	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Overview	
  
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
3	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Overview	
  
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
4	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Growth	
  of	
  Organized	
  Retail	
  
With	
  consolida5on	
  of	
  produc5on	
  and	
  democra5za5on	
  of	
  consump5on,	
  organized	
  retail	
  is	
  growing	
  
8%
45%
11%
80%
75%
32%
36%
37%
33%
1%
While frontier markets are right-sizing themselves, organized retail in emerging
markets are growing at an average of 25% y-o-y
PwC	
  Global	
  Retail	
  Trends	
  2012	
  Report	
  
5	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
India’s	
  Organized	
  Retail	
  Market	
  
Growing	
  at	
  27%	
  y-­‐o-­‐y,	
  India’s	
  organized	
  retail	
  market	
  currently	
  stands	
  at	
  8%,	
  with	
  apparel	
  the	
  largest	
  category	
  
$518 BN 7%
Indian Retail
Food & Grocery
11%
Apparel
33%
Mobile & Telecom
11%
Food Service
7%
Jewellery
6%
Consumer Electronics
8%
Footwear
4%
Others
20%
Organized Indian Retail
Urbanization of Villages & Towns Rising Incomes Exposure through Technology
Availability of Choices Younger Population
IBEF	
  -­‐	
  India	
  Retail	
  2013	
  Report	
  
6	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
India’s	
  E-­‐Commerce	
  Market	
  
Online	
  retail	
  is	
  s5ll	
  a	
  very	
  small	
  por5on	
  of	
  retail	
  in	
  India	
  
Offline, 98%
Online, 2%
# Mobile Phones Purchased (2013)
Offline,
99.8%
Online,
0.2%
Jewelry Sales $ (2013)
Offline, 93%
Online, 7%
# Books Sold (2013)
Offline, 99%
Online, 1%
Fashion + Footwear Sales $ (2013)
Accel	
  Partners	
  -­‐	
  India	
  Ecommerce	
  2014	
  Report	
  
7	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Overview	
  
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
8	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
A	
  Typical	
  Shopping	
  Journey	
  
1. CREATING THE NEED
2. SELECTING THE CHANNEL / BRAND
3. PRODUCT DISCOVERY
4. DECISION MAKING
5. TRANSACTION
6. AFTER-TASTE
9	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
A	
  Typical	
  Shopping	
  Journey	
  
1. CREATING THE NEED
2. SELECTING THE CHANNEL / BRAND
3. PRODUCT DISCOVERY
4. DECISION MAKING
5. TRANSACTION
6. AFTER-TASTE
Marketing
Sales / Store-
Operations
10	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Overview	
  
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
11	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Bargain	
  Hunter	
  
Most Time Spent During:
Product Discovery
Interaction With Sales Associate:
Negligible
Purchase Decision Influencer:
Price - Promotion
Frequency of Purchase:
Regular
Brand Loyalty:
Low
How to Reel ‘em In:
Something on discount always
12	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Man	
  on	
  a	
  Mission	
  
Most Time Spent During:
Decision Making
Interaction With Sales Associate:
Pointed Pertinent Questions
Purchase Decision Influencer:
Personalization
Frequency of Purchase:
Only need based
Brand Loyalty:
Medium
How to Reel ‘em In:
Cater well to the Target Customer
13	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Impulse	
  Buyer	
  
Most Time Spent During:
Product Discovery
Interaction With Sales Associate:
Sometimes need a small nudge
Purchase Decision Influencer:
Societal Acceptance of Purchase
Frequency of Purchase:
Low
Brand Loyalty:
Low
How to Reel ‘em In:
Emotional Appeal
14	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Researcher	
  
Most Time Spent During:
Decision Making
Interaction With Sales Associate:
A LOT! They better be well-informed
Purchase Decision Influencer:
Complete Comfort with Purchase
Frequency of Purchase:
Low
Brand Loyalty:
High
How to Reel ‘em In:
Help them with product information
15	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Fashionista	
  
Most Time Spent During:
Product Discovery
Interaction With Sales Associate:
Mainly for product discovery
Purchase Decision Influencer:
Trendiness
Frequency of Purchase:
High
Brand Loyalty:
High
How to Reel ‘em In:
Be Trendy Frequently
16	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Loyalist	
  
Most Time Spent During:
Decision Making
Interaction With Sales Associate:
Personalization Queries
Purchase Decision Influencer:
Personalization
Frequency of Purchase:
Regular
Brand Loyalty:
Very High
How to Reel ‘em In:
Always have something for them
17	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
Overview	
  
A Typical Shopping Journey
Retail Scenario - World & India
Types of Shoppers - Purchase Decision Influencers
Two Interesting Categories
18	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Working	
  Woman	
  
111%
Rise in urban women
income 2001 - 2010
20%
Rise in women
employment 2010 - 2012
30%
Growth of Women’s
Western Apparel Market
Rs. 78,500 Cr
Women’s Western
Wear Market
19	
  ©	
  2014	
  Shopsense	
  Retail	
  Technologies.	
  Confiden5al	
  document,	
  not	
  for	
  circula5on.	
  All	
  rights	
  reserved.	
  
The	
  Male	
  Fashionista	
  
Brand Awareness is the
main driver
Men are more Brand
Loyal than Women
In-store Experience not
Avoided Anymore
Mumbai	
  
www.shopsense.co	
  

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Indian Retail & Buying Behavior

  • 1. NOTICE:  Proprietary  and  Confiden5al   This  material  is  proprietary  to  Shopsense.  It  contains  trade  secrets  and  confiden5al  informa5on  which  is  sole  property  of  addSale.  This  material  is  solely  for  the  Client’s  internal  use.  This   material  shall  not  be  used,  reproduced,  copied,  disclosed,  transmiBed,  in  whole  or  in  part,  without  the  express  wriBen  consent  of  addSale.   ©  2014  Shopsense  Retail  Technologies,  All  rights  reserved.   www.shopsense.co   talk@shopsense.co   @shopsenseco   Indian  Retail  Scenario   Understanding  the  Shopper  
  • 2. 2  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Overview   A Typical Shopping Journey Retail Scenario - World & India Types of Shoppers - Purchase Decision Influencers Two Interesting Categories
  • 3. 3  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Overview   A Typical Shopping Journey Retail Scenario - World & India Types of Shoppers - Purchase Decision Influencers Two Interesting Categories
  • 4. 4  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Growth  of  Organized  Retail   With  consolida5on  of  produc5on  and  democra5za5on  of  consump5on,  organized  retail  is  growing   8% 45% 11% 80% 75% 32% 36% 37% 33% 1% While frontier markets are right-sizing themselves, organized retail in emerging markets are growing at an average of 25% y-o-y PwC  Global  Retail  Trends  2012  Report  
  • 5. 5  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   India’s  Organized  Retail  Market   Growing  at  27%  y-­‐o-­‐y,  India’s  organized  retail  market  currently  stands  at  8%,  with  apparel  the  largest  category   $518 BN 7% Indian Retail Food & Grocery 11% Apparel 33% Mobile & Telecom 11% Food Service 7% Jewellery 6% Consumer Electronics 8% Footwear 4% Others 20% Organized Indian Retail Urbanization of Villages & Towns Rising Incomes Exposure through Technology Availability of Choices Younger Population IBEF  -­‐  India  Retail  2013  Report  
  • 6. 6  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   India’s  E-­‐Commerce  Market   Online  retail  is  s5ll  a  very  small  por5on  of  retail  in  India   Offline, 98% Online, 2% # Mobile Phones Purchased (2013) Offline, 99.8% Online, 0.2% Jewelry Sales $ (2013) Offline, 93% Online, 7% # Books Sold (2013) Offline, 99% Online, 1% Fashion + Footwear Sales $ (2013) Accel  Partners  -­‐  India  Ecommerce  2014  Report  
  • 7. 7  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Overview   A Typical Shopping Journey Retail Scenario - World & India Types of Shoppers - Purchase Decision Influencers Two Interesting Categories
  • 8. 8  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   A  Typical  Shopping  Journey   1. CREATING THE NEED 2. SELECTING THE CHANNEL / BRAND 3. PRODUCT DISCOVERY 4. DECISION MAKING 5. TRANSACTION 6. AFTER-TASTE
  • 9. 9  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   A  Typical  Shopping  Journey   1. CREATING THE NEED 2. SELECTING THE CHANNEL / BRAND 3. PRODUCT DISCOVERY 4. DECISION MAKING 5. TRANSACTION 6. AFTER-TASTE Marketing Sales / Store- Operations
  • 10. 10  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Overview   A Typical Shopping Journey Retail Scenario - World & India Types of Shoppers - Purchase Decision Influencers Two Interesting Categories
  • 11. 11  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Bargain  Hunter   Most Time Spent During: Product Discovery Interaction With Sales Associate: Negligible Purchase Decision Influencer: Price - Promotion Frequency of Purchase: Regular Brand Loyalty: Low How to Reel ‘em In: Something on discount always
  • 12. 12  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Man  on  a  Mission   Most Time Spent During: Decision Making Interaction With Sales Associate: Pointed Pertinent Questions Purchase Decision Influencer: Personalization Frequency of Purchase: Only need based Brand Loyalty: Medium How to Reel ‘em In: Cater well to the Target Customer
  • 13. 13  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Impulse  Buyer   Most Time Spent During: Product Discovery Interaction With Sales Associate: Sometimes need a small nudge Purchase Decision Influencer: Societal Acceptance of Purchase Frequency of Purchase: Low Brand Loyalty: Low How to Reel ‘em In: Emotional Appeal
  • 14. 14  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Researcher   Most Time Spent During: Decision Making Interaction With Sales Associate: A LOT! They better be well-informed Purchase Decision Influencer: Complete Comfort with Purchase Frequency of Purchase: Low Brand Loyalty: High How to Reel ‘em In: Help them with product information
  • 15. 15  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Fashionista   Most Time Spent During: Product Discovery Interaction With Sales Associate: Mainly for product discovery Purchase Decision Influencer: Trendiness Frequency of Purchase: High Brand Loyalty: High How to Reel ‘em In: Be Trendy Frequently
  • 16. 16  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Loyalist   Most Time Spent During: Decision Making Interaction With Sales Associate: Personalization Queries Purchase Decision Influencer: Personalization Frequency of Purchase: Regular Brand Loyalty: Very High How to Reel ‘em In: Always have something for them
  • 17. 17  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   Overview   A Typical Shopping Journey Retail Scenario - World & India Types of Shoppers - Purchase Decision Influencers Two Interesting Categories
  • 18. 18  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Working  Woman   111% Rise in urban women income 2001 - 2010 20% Rise in women employment 2010 - 2012 30% Growth of Women’s Western Apparel Market Rs. 78,500 Cr Women’s Western Wear Market
  • 19. 19  ©  2014  Shopsense  Retail  Technologies.  Confiden5al  document,  not  for  circula5on.  All  rights  reserved.   The  Male  Fashionista   Brand Awareness is the main driver Men are more Brand Loyal than Women In-store Experience not Avoided Anymore