ecommerce & snapdeal
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ecommerceTRANSCRIPT
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eCommerce & evolution of Snapdeal.com
Gaurav Singh
Project Manager – Snapdeal.com
9958006771
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eCommerce
e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks.
Amazon:– Started with books mainly– Started marketplace model. More than 40% revenue from this– Powerful search & reviews and ratings
Dell:– Sold assembled computers online– More than 50% revenue comes from website
eBay:– Online auction site– Seller ratings
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eCommerce Power of eCommerce:
– Unlimited assortment– Search– Reviews and ratings– Convenience of ordering from home / office– Usually, cheaper prices– Extremely easy to compare prices online
Challenges with eCommerce:
– Concerns related to transacting online– Building entire supply chain– Monitoring quality– Compete with several players at once– Buying a product without physically touching it
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eCommerce in INDIA Key factors influencing eCommerce growth in India:
– Extremely low cost of PCs– Ever growing use of internet– Rising middle class with high disposable income– Limited reach of certain brands to people in tier 2 cities
– Cash on Delivery
– Change in mindset: Irctc.co.in Matrimony sites Job sites Online travel agents (makemytrip.com)
– .
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Evolution of snapdeal : Plan A MoneySaver: A printed booklet
– In US, 400 billion coupons were sold in 2007, in India this was 0.
– In few months, coupons expired leading to useless inventory
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Evolution of snapdeal : Plan B Coupon on mobile.
– Buy a scratch card worth 99 & get coupons on mobile.– Internet penetration was quite low compared to mobile (2008)
– In free trial, 1 lac customers signed up, but barely a few paid.
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Evolution of snapdeal : Plan C Money Saver prime card was launched.
– Distributed through CCD Limited customer touch points
– Also offered to corporates, to pass on to employees (B2B2C) Corporate & Snapdeal co-branding
– A good relationship with merchants was built
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Evolution of snapdeal : Plan D Snapdeal.com was launched (Feb, 2010)
– A merchant partner suggested this to CEO– Goal was to achieve 100 transactions / day after 3 months. It happened in 3 weeks– Acquired grabbon in June 2010
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Evolution of snapdeal : Plan E And we decided to be even closer to customers !!!
– By offering them products across 17 categories– Products sold across 12,000 pincodes in India
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Evolution of snapdeal : Plan F The grandest of them all … MARKETPLACE model !!!
– Brand stores Many brands do not have ecommerce site Or, don’t have the expertise to handle backend 3000 brand stores already in, expected to reach 10,000
– Allowing vendors to upload and manage products
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Evolution of snapdeal : Plan F And off course a revamped mobile site !!!
– Doubled the revenues within one week– Still it seems there is a lot of untapped potential
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Making complex decisions
- You are leading the engineering team
- It’s Christmas time and marketing head approached you to put Christmas theme on website
- Director of production systems is skeptical to do any changes on the website considering huge traffic
- Product Head wants to get this done asap as this will directly increase conversion ratio and traffic on site
- YOU … have to decide on what to do !
Culture at Snapdeal.com
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Managing stress and being solution oriented
- You are Release manager
- You are managing a big feature release which is expected to boost revenue by 20 lacs per day
- Feature releases will usually happen after 00:00 hrs since traffic is lesser then
- At 5:00 AM, test manager has discovered some issue
What do YOU do now ?
Culture at Snapdeal.com
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Be flexible and agile
- You are in the middle of a feature release
- Suddenly iPhone 5 is launched and your Business Development team has tied up with a telco for exclusive launch on your site
- If you launch iPhone 5, you are jeopardizing other features
- If you do not launch iPhone 5, you are giving up a good chunk of revenue
What do YOU do?
Culture at Snapdeal.com
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Dealing with Trouble
- You are Project Manager responsible for all engineering deliverables
- Product head and sales teams say that targets can not be met because of engineering team
- You know that is not true and you are being urged to stop supporting other departments. Give it back to them.
What do YOU do?
Culture at Snapdeal.com
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Future of eCommerce & Snapdeal.com
• 900 million mobile users• Mobile users expected to touch 1200 million by 2015• 27 million active internet users• Currently, only 3-4% are buying on mobile. Expected to be 20%
Mobile
• 124 million internet users (all devices)• 10% penetration• 75% of online audience is between 15-34 years of age• Retail has grown by 43% online and reaches 60% penetration
among online users
Internet
• eCommerce revenues expected to increase from USD 1.6 billion in 2012 to USD 8.8 billion in 2016
• 52 eCommerce companies raised USD 700 million from VCs in last 3 years
• Currently more than 80% revenue is from travel, but abroad this is around 35%. Online retail is expected to grow
Others
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Future of eCommerce & Snapdeal.com
Factors influencing growth
– VCs are bullish on eCommerce growth: Invested US$ 177 million in 2011
– Online grocery shopping is starting to appeal to upper and middle class consumer
– eCommerce is expanding into non metropolitan India More than 50% of sales of Myntra.com are from outside top 10 cities in
India
– Social media and mobile are helping accelerate eCommerce adoption India is Facebook’s third largest audience in the world
– Large retailers are looking to build online presence Chroma
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Future of eCommerce & Snapdeal.com Challenges
– Payment gateways are terribly inconsistent (35% failures)
– Upto 70% transactions of some eCommerce companies are through COD
23% online shoppers prefer COD. Mainly first time shoppers In Myntra, 60% transactions are through COD Return rate for COD is upto 25% in some categories
– “Card on Delivery” in also provided by several players
– Logistics remain an issue Flipkart chose “in house” delivery solution. A model used in China and Russia as
well.
– Several payment methods are a must to keep your business going, Credit Card, Debit Card, Net Banking, Pay Pal, COD
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Future of eCommerce & Snapdeal.com
Expectations of customers in India
– Consumers are already trained to expect low prices online
– Free shipping and quick delivery
Homeshop18 offers free shipping
– Return process to be seamless and convenient
At home pick up for returns
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Future of eCommerce & Snapdeal.com
Look forward to following in future:
– Increase in online shopping, since credibility is built now
– Comparison of features and prices online will grow tremendously
– Users will go online for reviews and ratings
– Social networking and search will contribute significantly in eCommerce growth in India
References:State of Ecommerce in India - Sept 2012 (A research report by comScore for ASSOCHAM INDIA).
Trends in India’s eCommerce Market – By Forrestor research for ASSOCHAM INDIA.
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Future of eCommerce & Snapdeal.com
Mobile will play a crucial part as it will grow significantly
References:Mobile internet in India - IMRB
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Future of eCommerce & Snapdeal.com
Number of mobile internet users is now more than desktop internet users (June 2012 onwards)