This document discusses opportunities and challenges in digital retail in India. It notes that India has over 500-700 million mobile users, with internet penetration over 10% in some states. While e-commerce revenues are still small, the number of online shoppers and eyeballs on websites is significant. Travel and group buying sites are seeing thousands of daily transactions online. As online connectivity and time spent online increases, especially among younger generations, more people are doing pre-shopping research and purchases online. However, an analysis found that over half of major brands in India did not even have their own e-commerce enabled websites. While retailers in other countries are among the most visited sites, Indian retailers lag far behind in online visibility and sales.

1. Digital RetailKey opportunities & challenges

3. Internet Size in India500-700 Mn Mobile usersIndia 4th largest Internet users Broadband : Annual growth rate > 60%50 to 80 mn Internet usersMobile internet on the rise

4. Internet Size in IndiaInternet penetration > 10% in some statesSmall revenues significant eyeballsTotal English print media readership 50 mn3G etc > A leap sooner than we expect

5. eCommerce:: some facts

6. TravelMore than 50,000 people flying daily using tickets bought through the InternetClose to 3 lac tickets sold by IRCTC online every day

7. Group buying / Coupon/ Deal sitesSnapDeal: $ 12 Mn fundingLetsbuy - $6 MnSoSasta: Acquired by GrouponFashionandyou - $ 8 mnAlmost 5k transactionsdaily amongst 15+ playersTaggle - $8.75 MnBuzzinTown expands into deal a day

8. Why is the space becoming exciting

9. Are we on an inflection point in eCommerce?Online connectivity increasing, > more people spending increasing time onlineGen next growing with all round presence of Internet > homes + schools. Nuclear Urban families. Huge paucity of time > pre shopping research onlineSocial media > paving way for social commerceMore propositions, deals, convenience spurring people to buy online

10. Are we on an inflectionpoint in eCommerce?Consumer’s habits are changing rapidlyimperative to be present where the consumers want to look for them and in the manner in which the consumers want to engage with themThere cannot be any debate on the importance for Brands to be available online

11. The question is Will the brands be available when they are ready to buy online?

12. An analysis of 14 Brands / Retailers 6 out of 8 Brands that did not have their own ecommerce enabled site were selling their products on some other shopping portal.More than half of them did not even have their own ecommerce enabled website!

13. Where are the retailers?USA: eBay: 8th Amazon: 9th Wal-Mart: 45thBestBuy: 52ndTarget: 63rdGroupon: 94thIndian retailers:Snapdeal:35eBay: 53BigBazaar: 40,695ShoppersStop: 1,534

14. So what is holding back the retailers foraying into e-commerce?MINDSET

16. Promotion – Traffic/ customeracquisition

17. Online Advertising Gateways available

18. And we can measure... at each STEP!Evaluate based on life time value of user/customer

19. Online Advertising Gateways: SEARCH

20. Search – Big..Bigger....BiggestPPCPPCNatural/ SEO

21. SEOPPCNatural/ SEOSource: Yahoo! Research report on Characterization of Online Search Behaviour

22. Online Advertising Gateway: Affiliate

23. Online Advertising Gateway: Display

24. Online Advertising Gateway: Social Media

25. Use online as a customer acquisition medium for offline stores / business

26. let us talk!vikram@eqnova.net