- Hiteshwar Marhariya- Jiviteshpreet Singh- Varun Yadav- Nikhil Dhamija
Market Analysis : Niche Fashion E-Commerce
Department of Management Studies , IIT ROORKEE
Contents :
Market PotentialKey Market TrendsOverall environment including Economic/Legal
Analysis Consumer Segment analysisCompetitive Landscape AnalysisValue Chain Analysis
Market Potential And Key Drivers:
Source : ASSOCHAM
Revenue Forecast : E-commerce Industry
2014 20180
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Revenue in bn $
Revenue
Image Consulting :
Can employ fashion designers for providing consultations to customers.
Can open customer care centres for providing fashion advice via chat or video calls
Customers can upload their pictures and professionals can provide advice keeping in view the products range available.
Employing certified professionals for consultation or motivating existing employees for getting certified and turn into experts in Image consulting
Can provide catalogue to the customers according to their dressing as per roles and goals to create an appropriate personality fit.
Key market trends :
Projected Indian E-commerce MarketPercentage share of Apparel in e-commerce
Percentage of clothes in apparelsFrequency of online purchase of clothes
* Source : Baggout.com
* Source : Baggout.com
Macro Environment : Social
Demand Analysis of Indian apparel industry Valued at around 200,000 crore, in 2011 Estimated to increase to over 400,000 crore by 2016 Projected to grow at a CAGR of 15%
•Projected to grow at a CAGR of 15%
As is evident, in India, apparel is still lagging behind in terms of growth rates, especially relative to global averages. Thus there is apparent potential for growth in online apparel retail, in the near future.
Women's Wear is expected to be the largest sector in the Indian apparel industry by 2016
Macro Environment (Cont)
Country Internet User 1 year growth % Penentraition China 641,601,070 4% 46.03% United States 279,834,232 7% 86.75% India 243,198,922 14% 19.19% Japan 109,252,912 8% 86.03% Brazil 107,822,831 7% 53.37% Russia 84,437,793 10% 59.27% Germany 71,727,551 2% 86.78% Nigeria 67,101,452 16% 37.59% United Kingdom 57,075,826 3% 89.90% France 55,429,382 3% 85.75%
Internet Access Following table shows top 10 countries by internet accessibility in the country in 2014.
*Source : Internet Live Stats (www.internetLiveStats.com)
India is on third position with highest percentage growth in internet user. which clearly reflects opportunity available for E-Commerce in India.
Macro Environment (Cont)
Demography of India
Share of Men and women among all internet users
More women are now going online than men and their user-base has grown about 30 per cent this year across metros and tier I cities, an IAMAI-IMRB report said today. According to the report, 'Internet in India', female Internet users have grown at about 30 per cent to an estimated 20.77 million this year from 16 million in 2013.
61%
39%
Internet User By Gender( INDIA)
Male Internet User
Female Internet User
Macro Environment (Cont)
College going girls Non Working Women Working Women0
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Macro Environment (Cont)
Internet Usage among female
Source : IAMAI
The information Technology Act 2000 (IT Act 2000) governs the online issues commerce in India.
IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that the e-commerce entrepreneurs and owners must ensure cyber law due diligence in India.
The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code etc.
Further, online shopping in India also involves compliance with the banking and financial norms applicable in India.
Perry4law and Perry4Law Techno Legal Base (PTLB) recommend that all e-commerce entrepreneurs and owners must do a proper techno legal due diligence before opening an e-commerce website.
Further, e-commerce websites in India must ensure privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc as well.
Macro Environment : Legal
E-commerce is presently an essential ingredient of India's trade facilitation policy.
Indian e-business has grown at a compounded annual growth rate of 30% since FY09 and is expected to be $18 billion by FY15
Foreign Direct Investment(FDI) is limited to traditional brick-and-mortar stores. The entry of foreign-owned virtual stores online and e commerce platforms continues to be restricted.
E-commerce companies, which have FDI infusion, have created corporate structures which technically enable them to receive FDI infusion even while sticking to the regulatory guidelines.
Macro Environment : Economic
Macro Environment : Technological
Consumer Segment Analysis
1) By type of City Tier 1 cities : Chesterfield type coats, blazers & Duffle coats Tier 2 cities : Casual & semi fashionable Coats Metro cities : Fashionable Coats
2) By Age groups Under 6 Years : Baby type Coats 6-19 years : Sleeveless Coats and Fashionable Coats 20-34 years : Fashionable Coats 35 years & above : Full length Coats
Consumer Segment Analysis (Cont)
3) By profession Business Class : Formal Coats Service Class : Semiformal Coats Home-makers : Casual Coats
4) By Income groups Less than 40k per month : Coats with price range upto Rs 1000 Inbetween 40,000 to 80,000 p.m : Coats with price range between Rs1000
to Rs3000 Above 80,000 per month : Coats with price range above 3,000
Competitive Landscape Analysis
Companies Brands avl Products Prize Range
ebay.com 5000-6000 1850000 $0.06- $10000
yebhi.com 100 6000 600-6000
myntra.com 141 3000 350-21500
snapdeal.com 120 2700 350-9700
flipkart.com 80 2200 600-6000
fashionara.com 35 1200 500-20000
fashionandyoou.com 75 1200 300-6000
shopclues.com 25 1100 200-22000
jabong.com 70 600 500-8000
amazon.com 120 478 600-10000
homeshop18.com 12 410 600-3400
naaptol.com 15 311 400-7000
indiatimes shopping 18 274 500-10000
infibeam.com 8 250 350-6000
shoppersstop.com 25 158 500-5000
koovs.com 18 120 800-8000
yepme.com 1 61 400-1100
inkfruit.com Not mentioned 30 300-1200
* All prices in INR except ebay.com
Source : Data collected from respective e-commerce sites
Value Chain Analysis
Inbound Logistics:3 cases to be considered : Which all products should company store in their own Warehouse? Which all products can be directly picked from supplier, packed at a packing
center and couriered to customer? Which all products can be packed at supplier end and supplier has the
responsibility to courier?
Operations: Following things needs to be taken care : How will the products be displayed on their website? How can customer choose from various options and comparison between
options? How the stock data base is maintained? How the stock can be replenished of faster selling product?
Value Chain Analysis: Primary Activities
Outbound Logistics: What all processes will be involved in delivering the products to customers? What will be the mode of delivery and the mode of payment?
Marketing & Sales: Which all social media platforms to be chosen for promotions? How to give an excellent service to regular customers to get word of mouth
promotions ? What all are the payment options available for the customer to get an easy
access of the product ?
Services: How many customer care executives needs to be deployed and what will be
the working hours? How much time will the company take to resolve customer issues? Does the company also provide size check options to the customers?
Value Chain Analysis: Primary Activities
Firm Infrastructure: How many warehouses are needed and at what locations to cover all potential
markets? How the packaging will happen if the parts are to be delivered directly from
supplier?
Human Resource: How the employees of the organization are involved in its functioning and how they
behave as a brand carrier of the organization ?
Technology: How will the User Interface look like ? How the company provides Real time tracking system for the customers? How can the Real time information stock availability be carried to suppliers as well
as the customers How will the automatic orders be generated for stock replenishment? Procurement : Brand association, Win Win Situation, Just in time order availability
Value Chain Analysis : Secondary Activities
Procurement: How are the suppliers contracted and with a win-win situation both for
supplier as well as organization? How can a supplier feels the sense of involvement in the activities of the
organization? How can the Just in Time orders can be placed to supplier after getting an
order from the customer?
Value Chain Analysis : Secondary Activities