digital retail

Digital RetailKey opportunities & challenges

500-700 Mn Mobile users

50 to 80 mn Internet users

India 4th largest Internet users

Mobile internet on

the rise

Broadband : Annual

growth rate > 60%

Internet Size in India

Small revenues

significant eyeballs

Total English

print media readership

50 mn

Internet penetration

> 10% in some states

3G etc > A leap sooner

than we expect

Internet Size in India

eCommerce:: some facts

Travel

More than 50,000 people

flying daily using tickets bought

through the Internet

Close to 3 lac tickets sold by IRCTC online

every day

SnapDeal: $ 12 Mn funding

SoSasta: Acquired by

Groupon

Letsbuy - $6 Mn

Taggle - $8.75 Mn

Fashionandyou - $ 8 mn

Group buying / Coupon/ Deal sites

BuzzinTown expands into deal a day

Almost 5k transactionsdaily amongst 15+ players

Why is the space becoming exciting

Gen next growing with all round presence of

Internet > homes + schools.

Nuclear Urban families. Huge

paucity of time > pre shopping

research online

Online connectivity increasing, > more people spending increasing time

online

Social media > paving way for

social commerce

Are we on an inflection point in eCommerce?

More propositions,

deals, convenience

spurring people to buy online

Consumer’s habits are changing

rapidly

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

Are we on an inflection point in eCommerce?

There cannot be any debate on the

importance for Brands to be available online

The question is Will the brands be available when they are

ready to buy online?

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!

Where are the retailers?

Indian retailers:Snapdeal:35

eBay: 53BigBazaar:

40,695ShoppersStop:

1,534

USA: eBay: 8th

Amazon: 9th Wal-Mart: 45th

BestBuy: 52nd Target: 63rd

Groupon: 94th

So what is holding back the retailers foraying into e-

commerce?

MINDSET

Promotion – Traffic/ customer acquisition

Online Advertising Gateways available

And we can measure... at each STEP!

Evaluate based on life time value of user/customer

Online Advertising Gateways: SEARCH

Search – Big..Bigger....Biggest

Natural/ SEO PPC

PPC

SEO

Natural/ SEO

PPC

Source: Yahoo! Research report on Characterization of Online Search Behaviour

Online Advertising Gateway: Affiliate

Online Advertising Gateway: Display

Online Advertising Gateway: Social Media

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

let us talk!vikram@eqnova.net