E-commerce Buying Behavior and Online Merchandising for Camera category. #Ecommerce #Online #Merchandising

1. Merchandising
-Digital Camera
-DSLR
- Akash Singh Thakur
9871305556

2. Content
 Camera Category
 Market Overview
 Market Research – Camera Buying Behavior
 Pre Buying & Post Buying Behaviors
 Yebhi.com (July 2012 – July 2013)
 Analysis
 BrandWise Assortment Benchmarking (Snapdeal / Flipkart /
Amazon)
 Suggestions

3. CameraCategory
• The Camera Category is categorized majorly into following sub
categories:
• Digital Cameras/ Point & Shoot Cameras
• SLR/ DSLR cameras
• Semi SLR/ Mirrorless/ Compact System/ Interchangeable Lens
• Camcorders
• ProfessionalVideo Cameras
• CameraAccessories
• The compact point & shoot cameras hold the largest share in the
digital camera market and contribute 80.3% in the total unit sales of
the digital cameras

4. Industry Overview
• The global digital camera industry experienced moderate growth during 2006-2011 and is
expected to retain the same growth propulsion over 2012-2017.
• Asia Pacific emerged as the fastest growing region during 2006-2011 and dominated the industry
with the highest contribution in 2011.
• Mirrorless hybrid cameras, DSLRs, and compact interchangeable-lens cameras drive the market.
• Newly introduced mirrorless interchangeable lens cameras have taken the place of the compact
point and shoot cameras to a sizeable extent in recent years.
• The combination of the traits of these cameras such as compact size, use of interchangeable
lenses and relatively affordable pricing has the key factors responsible for the growth in the sales
of these cameras.
• The digital camera market has also seen the emergence of products with attractive features such
as swivel LCD screens, direct image sharing over the internet, HD video recording and 3D
imaging amongst other.
Source: reserchandmarkets.com

5. Industry Overview
• Asian countries have a large population size but the ownership level of the digital cameras among the
consumers is relatively very low as compared to the other developed markets. As a result the demand
from the first time buyers has increased significantly in recent years in these countries.
• The market in the Asian countries is driven by the price sensitive middle income group consumers.
These consumers prefer buying an affordable compact camera instead of high end DSLRs.
• However, the rising consumer interest for interchangeable lens cameras is the latest trend in the
region.Within the interchangeable lens camera category, the mirrorless cameras are rapidly gaining
consumer attention and sales growth in countries like China and Japan.
• The interchangeable lens market inAsia has also grown significantly in recent years owing to the
growing consumer demand for the interchangeable lens cameras.The shipments of the
interchangeable lenses to the region have grown at a CAGR of 31.8% during 2006-2012.
• China is the largest contributor in terms of shipments in 2012.This followed by Japan which accounted
for 27.8% of the shipments made to the region in the same year. India is the third largest contributor.
• The interchangeable lens market of Asia is projected to grow strongly at a CAGR of 37.9% during
2012-2017.
Source: reserchandmarkets.com

6. Indian Camera Market
• The Indian digital camera market has experienced a strong growth over the last six years.
• Some of the drivers for growing camera market in India are low penetration, increasing disposable income,
increasing social media, increasing tourism, and increasing advertising.
• On the other side, grey market & substitute products like mobile cameras are acting as restraint to growth of
the camera market in India.
• Technological advancements like mirror-less camera, 3D camera and increased functionality like GPS,
Bluetooth,Wi-Fi etc. in the camera is expected to reduce the substitution effect in the coming times
• High inflation,World economic crisis leads to increased prices and a steep depreciation of the rupee against the
US dollar has made consumer more price sensitive.
• Increase in DSLR segment of cameras and consequent decrease in the shipments of Compact Digital Cameras
can be well explained by the increased usage of cameras in smart phones.
• Out of total Digital Cameras shipped 88% are Compact Digital Camera whereas 12% belong to the DSLR
segment.
• Indian camera market will witness phenomenal compounded annual growth rate (CAGR) of 27% for next five
years.
Source: reserchandmarkets.com

7. MarketAnalysis
• The Category is expected to see a volume CAGR of minimum 19%.
• DSLR cameras are expected to completely take over, thereby making
Digital cameras a very small category catering to demand in tier-1
and tier-2 cities with lower disposable incomes.
• The Camcorders category is expected to grow, with HD units driving
sales, along with launches of new models with higher storage
capacity.
• Indian consumers are increasingly driven towards higher quality
imaging devices.

8. Pre Buying Behavior
• Pre Buying Behavior also referred to as Pre-Commerce takes a good look at
consumer behavior
• Information Seeking Stage- Involves Browsing or Directed Search
1. Goal Directed Behavior: Knows there product or need
2. Experiential Behavior: Building knowledge or Recreational Purpose
• Action
• Recognizing the Need & Exploring consumer preferences.
• Improving Side Navigation and Filters
(Brand/Budget/Features/Color/Availability etc.)

9. Breakdown of Information
Goal Directed Behavior
Experiential BehaviorSource: Journal of Electronic Commerce Research, 2010

10. Buying Behavior
• Customers probably follow their own unique path to purchase.
• A path that looks something like this:
Browse – Abandon – Consider – Research – Consult Friends – Browse – Purchase
• Analyzing it using software's like Google Analytics , Clicktale or
Payment Gateway reports.
• Calculate: the time from first visit to first purchase, the average
number of visits, and cart abandons per purchase.
• This data helps to consider what changes need to be made on your
site to accommodate the unique buying patterns of your
customers.

11. Buying Behavior
• Average repeat purchase for ecommerce
is 7%
• TheTop Sale converting factors
• Business model
• Loyalty of Customers, and
• Focus on driving repeat purchases.
*Amazon.com has revealed that 66 percent of its
sales are repeat purchases and Amazon does
not optimize for the first-time visitor, but rather
for the returning customer.

12. Post Buying Behavior
• Utilizing Related Products for Post-Purchase Recommendation
• Customers usually come back for repeat purchase of Accessories
• Reason:
a) Most Cameras include basic Accessories as Freebie
b) Low Budget Cameras are usually purchased for Gifting purpose
c) 70% DSLR buyers are amateur level users, 5% Professional Buyers
and about 25% are intermediate level users
• Lenses are top-most purchased Accessories with Attach-Ratio of 2:1
in Ecommerce

13. Why Customers Don’t Buy
Source: Forrester Research, May 2010; "Understanding Shopping Cart Abandonment"
Note: Respondents were able to give multiple answers
1. Price
2. Not Ready to Buy

14. Camera (ByType) Accessories (By Category)
Yebhi.com (July 2012- July 2013)

15. Yebhi.com (July 2012- July 2013)

16. CIPA (Camera & Imaging Products Association)
CAMERA & ACCESSORIES Comparison over the same
period a year ago
DIGITAL STILL CAMERAS Point & Shoot Cameras 55.1%
DSLRCameras 74.0%
MirrorlessCameras 101.9%
INTERCHANGEABLE LENSES Lenses for 35mm format Cameras 123.7%
Lenses for smaller than 35mm
format Cameras
86.5%
Shipment of Digital Cameras and Interchangeable Lens for January-September in 2013 (ASIA)

17. Brand-wiseAssortment
• Total 664 Brands in Camera categories/sub-categories in
Flipkart, Snapdeal and Flipkart
• Digital Camera
• DSLR’s
• Camera Lens
• Tripods and Monopods
• Camcorder
• Accessories
• Binoculars &Telescope
• MemoryCards
• Digital Photo Frames

18. Suggestions
 Increasing catalogue and marketing efforts forCategories:
 DSLR’s and
 Camcorders
 New Category – Mirrorless Cameras or Compact System Cameras (CSC) to
increase visibility.
 Interchangeable lens category to be promoted through Bundling and Cross-
Selling
 Rs. 9000- Rs. 10000 range Point and shoot cameras to be promoted through
freebies and bundling.
 Under Rs.5000 range cameras to be sold in special bundle of 2-3 cameras for
couples and families specially targeting festive occasions, kids and couples.
 Freebies can include 4-8 Gb Memory Cards, Camera Pouches, Screen
Protectors, Lens Cleaners and AV Cables.

19. Suggestions
 SEO Optimization of Category Products to improve SERP (Search Engine
Result Page) ranking
 Improving Product Names
 Meta-Description
 Content/Specs
 TitleTags
 Using Keywords AnalysisTools (Like GoogleAnalytics/Adwords/Trends) and Competitor
Study
 Brand Support for providing free demo to customers buying DSLR’s
on weekends
 To Improve customer loyalty
 To improve attach ratio of Camera Lens Category

20. ThankYou
- Akash Singh Thakur
9871305556