e-commerce for retailers
TRANSCRIPT
E-commerce for retailers - Why it makes sense?
Digital media is influencing consumers & businesses everywhere
A little bit of background
• A decade of e-commerce• 1000 retailers• Platform & solutions
Should I do e-commerce? Why? How costly is it? Can I do it?Is this the right time?Can you explain how?
A typical letter from a retailer
E-commerce in India – A quick overview
2007
Rs.7,800Cr
2007
Rs.7,800Cr
2011
Rs.47,000Cr
2011
Rs.47,000Cr
4 years
6x growth
4 years
6x growth
E-tailing or retailing e-commerceElectronics Jewellery Shoes Fashion Books Home Appliances
Flowers Mobiles Computers Toys Gifts
2011
Rs.4,000CrUp 6x in 4 years
2011
Rs.4,000CrUp 6x in 4 years
2005
USD 2 bn
2005
USD 2 bn
2010
USD 33 bn
2010
USD 33 bn
5 years
17x growth
5 years
17x growth
Chin
aIn
dia 2015
???
2015
???
What is driving e-tailing ?
Consumer confidence Consumer sees value Capabilities of retailers
BRANDBRAND
Technology In a box
Technology In a box
Indian consumer behaviour overview
TriggerTrigger Research & suggestionsResearch & suggestions PurchasePurchase Post purchase
sharingPost purchase
sharing
WebWeb
MobileMobile
SocialSocial
In-storeIn-store
Example consumer flow
Omni-channel commerce
Why does it make sense for Indian retailers today?
OpportunityOpportunity
Partners offer capabilities
Partners offer capabilities
Consumers look for you
Consumers look for you
It’s not difficult!It’s not difficult!
Over 10Cr Internet users and 2Cr social networking users in India – a real base!
Mid-sized as well as large retailers are seeing success in India
Retailers and consumers all across India are participating in digital commerce
Existing offline customers are your starting point – you already start with customers!
Consumers extensively search for retail names (offline retailers) when shopping online
3 out of 5 organized retailers that we talk to are considering digital as serious channels
90+ out of top 100 online stores belong to offline retailers
Case study – A mid-sized fashion retailer
• A mid-sized fashion retailer with 7 stores in Hyderabad• Strong in ethnic fashion and good local brand presence• In-house operations team• Should we start e-commerce and if yes then how?
My online store should be like the Samsung websiteI want to get 1000 orders within 1 month
Expectations on Day 1
Build an online store that will appeal to my target audienceBuild a repeatable and scalable model to sell online
Expectations on Day 5
What they did?
Top selling products
Merchandise assortment
Promotions & offers
Promote gifting
Online store – reflect brand, focus on categories…
Flexible payment options
Credit/debit cards, Net-banking, COD
etc.
Flexible payment options
Credit/debit cards, Net-banking, COD
etc.
Good delivery experience
Started with 10 cities
Good delivery experience
Started with 10 cities
Link online & offline
Online leads for offline sales, offline promotion of online
Link online & offline
Online leads for offline sales, offline promotion of online
Observe, plan, scale, repeat
Scale up to 20 cities and then a store for
US customers…
Observe, plan, scale, repeat
Scale up to 20 cities and then a store for
US customers…
Budget for 1 year - Rs. 400,000 + Rs. 40 for shipping each package + 2.5% payment processing charges + 3% affiliate commissions – All inclusive!
A look at the whole setup
Online store
Technology platform from MartJack
1 retail store acting as fulfillment center
7 retail stores
Payment processing from HDFC Bank
Logistics support by Bluedart
Offline promotions are now online promotions too!
Web Facebook Walk-ins
In-house operations team
Partner support for design & related
activities
Phone
Avoiding pitfalls & increasing the chances of success
Effectively acquire new customers
Effectively acquire new customers
Provide flexibility to consumers
Provide flexibility to consumers
Provide a rich experience
Provide a rich experience
Focus on customer service
Focus on customer service
Cost of Technology
Cost of Technology
Cost of Operations
Cost of Operations
Cost of Advertising
Cost of Advertising Cost of SupportCost of Support
Know your target audience
Know your target audience
Promotions & customer
engagement
Promotions & customer
engagement
Focus on your assortment strengths
Focus on your assortment strengths
Be where the consumer is!Be where the consumer is!
Plan, focus on customers & Scale
Manage your costs efficiently
Remember – etailing is retailing
Some specific aspects of e-commerce for brands
“58% of the consumers ranked manufacturers’ website as the most preferred destination for product and purchase information”
• Rich product experience across own, dealers’ & retailers’ online stores• Complete product details • Rich experience with videos, brochures, images etc.• Syndicate content to retailers’ as well
• Consumers often search for brands – direct to consumer online stores make sense
• Allow your dealers & retailers to participate in e-commerce – connected experience for your consumers
• Dealer locator is now “Shop now from your nearby dealer”
• Connect to consumers across channels – offline, mobile, social, web
Partnerships – Reaching a larger consumer base
XYZ MediaXYZ News
XYZ Services XYZ.com
ConsumersDeals from Your online
store
Deals from Your online
store
Affiliate channels
Reach consumers where they already
are!
E-commerce in India - Some anecdotes
• A camera merchant sold 200 cameras/day with promotions – That’s equal to his one month sale
• An apparel merchant got 70,000 fans on Facebook in 4 months
• Shoes website sends 2 pair of shoes to consumer for him to decide his correct size
• Products worth over Rs. 50,000 being sold with EMI option
• Even mangoes are being sold online
Thank you
Villagers in Qingyan Liu Village were once all farmers
In 2009, Qingyanliu villagers earned 121 million U.S. dollars from their online sales!
You too can be successful at e-commerce provided you
Are present across
channels
Play to your
strengths
Leverage ready to
use solutions
Plan, sell, scale,
repeat…