is ecommerce a threat to brick & mortar retailers?
TRANSCRIPT
www.ecomnation.in
Is Ecommerce a Threat to Brick & Mortar Retailers?
By Chirag Jobanputra
?
www.ecomnation.in
30 Times GrowthOnline Retail Growing 50-55% Annually
2009
2016
www.ecomnation.in
2016: The Biggest Year Ever in Online Retailing
50,000 Crores
www.ecomnation.in
Increasing Marketing Share of Online Retail
8%
92%
Organized RetailOnline Retail
18%
82%
Organized RetailOnline Retail
2012 2016
www.ecomnation.in
Online Retailing Still in an Early Stage in India
Valu
e Ax
is
0
2.5
5
7.5
10
USA/UK China India
1%
5%
10%
www.ecomnation.in
Mobile Internet Penetration
Source:TelecomRegulatoryAuthorityofIndia2014
Mobile users
Internet users
Mobile internet users
1 Billion
462 Million
371 Million
www.ecomnation.in
30 to 50% Rise in Ecommerce Transactions From Tier II & III Cities
High Aspirations
Limited Access
www.ecomnation.in
A Remarkable Shift Smaller, Niche ecommerce players gained 8%
market share in 2015
Is it Ecommerce Store Vs.
Brick & Mortar Store
Hrishikesh Jobanputra <[email protected]>
TEST: Batman Vs. Superman Or Retail vs. Etail?
Hrishi @ eComNation <[email protected]> Sat, Apr 16, 2016 at 2:53 PMTo: [email protected], [email protected]
March 25, 2016
With summer vacations getting started, the movie theaters are ready with new dose ofentertainment. While skimming through the latest releases, the one that quickly caught myattention was Batman vs. Superman. And it reminded me of the ongoing tug of war between
ecommerce and traditional retail. A large number of customers are being snatched away byonline retailers and on surface, it seems that traditional retailers are losing the ground.
And that brings up a few questions. Is traditional retailing going to die a slow death? Or the
ecommerce boom is merely a hype? If you are expecting one or two line answers, there aren'tany.
However, if you are serious about knowing how changing face of retail is going to impact yourbusiness, the upcoming ecommerce workshop has the answers.
Announcing: Ecommerce Workshop in Surat on
www.ecomnation.in
Your customers think differently
“Where should I shop today?”
orBrick & Mortar Ecommerce Store
www.ecomnation.in
Which Channel Solves My Problem
…..Quickly, Easily, Conveniently, Efficiently
I want to go for party today, need a jacket to complete my looks urgently
www.ecomnation.in
Which Channel Solves My Problem
…..Quickly, Easily, Conveniently, Efficiently
I want to go for party today, need a jacket to complete my looks urgently
Brick & Mortar
www.ecomnation.in
Which Channel Solves My Problem
…..Quickly, Easily, Conveniently, Efficiently
I am looking for my favorite Allen Solly shirt, but I don’t have time.
www.ecomnation.in
Which Channel Solves My Problem
…..Quickly, Easily, Conveniently, Efficiently
I am looking for my favorite Allen Solly shirt, but I don’t have time.
Ecommerce Store
www.ecomnation.in
Which Channel Solves My Problem
…..Quickly, Easily, Conveniently, Efficiently
I want to go for party today, need a jacket to complete my looks urgently
I am looking for my favorite Allen Solly shirt, but I don’t have time.
Brick & Mortar Ecommerce Store
Bingo
Customer Wins!
www.ecomnation.in
Ecommerce is a channel to solve customer problemIt is your opportunity to capture your market
www.ecomnation.in
Problem + Solution + USP=Success
Difficult to find book, international best seller
Largest collection of books in India
Find books quickly, read reviews, and get it delivered next day
Problem Solution USP
Flipkart
www.ecomnation.in
Problem + Solution + USP=Success
I want to get best deals for lifestyle services
Amazing deals on lifestyle services
Heavy discounts
Problem Solution USP
Snapdeal
www.ecomnation.in
Quiz
I don’t want to stand in a queue for purchasing movie ticket
Problem
www.ecomnation.in
Quiz
I don’t want to stand in a queue for purchasing movie ticket
Discover movies, read reviews, and book tickets online, pay
online
Solution
Problem
www.ecomnation.in
Problem Solved by Each Channel is Different
Brick & Mortar
• Get products immediately, no waiting time.
• Easy returns and refunds • Try, taste, smell, touch,
feel the product before making purchase
Online Store• Shop 24/7 online • No need to travel to a
physical store* • Locating my desired
product is super easy and quick
• Get social proof that my choice of product is correct
• Lot of choice • Better Product informationBased on a research by PWC
www.ecomnation.in
The Market is Fluid, in a Constant Evolution Mode
“What Problem can I solve for my customers/chosen target audience?”
www.ecomnation.in
Problem Examples• I have 15 minutes with me today and I want to
choose from 1000 different products and then make the purchase
• Can you deliver products to my friend in Chandigarh
• Do you accept payment through Paytm or any similar online wallet
• I want gift my friend Gift voucher, can he purchase from your company, he is based in ramgarh kent Hazaribaug, Jarkhand
• Can you tell me who else has purchased the same product and what do they think about them…
www.ecomnation.in
If you say “No”It is mostly likely that customer will go somewhere else
www.ecomnation.in
Dollar Shave Club
ProblemFrustrated with costly razors and cannot find the time for the new razor
SolutionMonthly supply of razor at doorstep
Unique Selling PropositionA great shave for few bucks a month
www.ecomnation.in
Businesses that solve real customer problems will thrive & win
"For the physical store to maintain a competitive advantage, it will have to continue to reinvent itself in keeping with the changing times. With increased competition even in the offline space, retailers have to move beyond the "simply transacting" business model. It is imperative that they provide customers with an experience that would convince them that the new product would change their life. The trend of online retailers entering the physical space by opening offline stores only emphasizes how multisensory customer experiences contribute immensely in building lasting.
www.ecomnation.in
Brought to you by eComNation
To grow your business with ecommerce, visit: www.ecomnation.in
or Call 079 3044 7088