online retail(1) (2)

7/26/2019 Online Retail(1) (2)

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Online Reta

Grou


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Industry OverviewWhat is E-Retail ?Pertains to trading in goods and services through the

medium.

The e-commerce retailmarket is among Indiasastest-gro!ing markets andis e"pected to gro! at a

#$GR o 52 per cent totouch %&'().* +illion +, rom %&'( +illion in/0according to 1P2Greport.


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&hare o E-retailing as compared to totindustr,


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This industr, is !itnessing appro"imatel, / to /. miltransactions per da,.

The ma3or categorieso goods thatdominate this industr,.


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The gro!th o E-Retail 4 actors

#onvenient rom home an,time6 an,!here6 !ith 0"* eas, onlintrust!orthiness o ecommerce sites and availa+ilit, o +rands.

The increasing penetration o internet and smartphones user in #oncepts such as 7online and application 8app9 onl, sales6 7+, in

discounts6 special discount coupons6 cash-+ack policies and specestivals continue to drive customers to shop online.

So

Why peoplebuy online ?


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Key Portals in the industry

lipkart.com $ma:on.come;a,. in &napdeal.com&hopclues.com.com


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The dominant pla,er in India FlipKar800 @ market share9


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IntroductionFlip!art ounded +, &achin ;ansal and ;inn, ;ansal in ;angalore

* It operates e"clusivel, in India6 !here it is headAuartered

1arnataka. It is registered in &ingapore6 and o!ned +, a &ingapore +a

compan,. Ranked amongst the top 5We+sites in India. ;egan !ith selling +ooks6 as the, are eas, to procure6 pro

margin6 are eas, to pack and deliver6 do not get damaged

&ales revenue o Rs./6(B crore 8/0-/596 !ith a loss ocrore.

"ision 2#2# 4 ;e a C +illion compan, +, the ,ear $ore purpose 4 To make shopping delightul or ever,one


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Flip!art % &rie' (ourney


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Flip!art )c*uisitions

l)

[2011]

Mime360 (diital content plat!or"

co"pany)

[2011]

Chapak.com (#ollywood news

site)

[2012]

Letsbuy.com ($ndian e%retailer

in electronics)

[201&]

Myntra.com ('nline !asion

retail)

[201]

Adiquity

(*obileadvertise"ent c

o"pany)

[201

Appiterate (*obile

"arketinstartup)


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+,"IRO,-+,)/),)/01I1PDFITI#$F

Dperating cost are likel, to increase +, /-/5@ aterimplementation o the G&T ;illlipkart dismissed the purchase o $irtel :ero Governplans to take e commerce +usinesses like lipkart to

$s per 'IPP6 lipkarts +usiness model is not recogniIndian 'I polic,

E#DHD2I#lipkart ran into diculties !hen the, oJered +ig disthe +ig +illion da, sales

The Krm has oJered loans to its sellerslipkart aims to +ecome a licensing platorm or inte+rand entering India


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&D#I$F+ $+out *@ o the internet users in India are in the age g

0 are more suscepti+le or moving to!ards online shop+ lipkart targeting ne! customers in Tier II and Tier III cit

TE#=HDFDGI#$F+ India has an internet user +ase o a+out (50 million as o

/5 lipkart gathers the data to personali:e the service

predictive anal,tics+ &ocial media advertising+ Pa,Lipp, is an online pa,ment solution launched +, lip


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POR+R1 FI"+ FOR$+1


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1R+,341+ &trong ;rand value

+ D!n Fogistics E-1art+ 'iversiKed strategic acAuisitions+ E"clusive M +road range o products

W+)K,+11+1+ Fimited 'istri+ution channel reach

+ 'ue to stiJ competition in the market M lo! customer rthe cost o acAuisition is high

+ E"cessive ocus on e"panding customer +ase rather thaproKts - Hot proKta+le operationall,

1WO ),)/01I1


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OPPOR6,II+1 =igh interest is sho!n +, the Oenture capitalistprivate eAuit, K

investments ;u,ing +ehaviour o the present generation is avoura+le

Increasing internet penetration opens up opportunities or e"pa %niAue product categor, +ased on demographic regions can +e International e"pansion o ipkart lipkart can oJer its logistics services to its competitors in onlin

!ith its logistics arm E-kart

4R+)1 #ompetitors capturing alternative market through innovative st &ince lipkart has the standard product categories6 there is too

competition +, diJerent set o pla,ers Entr, o Google in online e-+ooks Dur customers are still not ull, comorta+le !ith online transac


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$ore competencies Farge num+er o sel o!ned channels E"cellent customer services Farge +ase o lo,al customers Innovation in services and technolog,


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$ompetitive advanta7e logistics and operations inrastructure - a ver, high

entr, o!ing to its e"tensive capital investment and

to replicate strateg,-structure-culture mi".

Rationali:ed suppl, chain - In+ound logistics

&trategic !arehousing and distri+ution capa+ilit, -

Dperations

Well aligned ulKlment process - Dut+ound logistics


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"alue chain )nalysis"a#ued customer

,aret custo"ers -rice sensitive rban population $nternet users

/alue -roposition

Completely hassle free shopping experience with best services to everyone, everywher

in India.


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Primary activities

Operations

Customerp#aces an

order on#ine

$rder%o&n#oaded into

$rdermana'ement

system

A##ocate in!entorya'ainst the order

ick #ist(enerated)

ickin' is done

$rder ackin'*+n!oice and

,hippin' #abe#'enerated-

$rder ,hippedrom Warehouse

$rder /ando!er to Cour

,er!ice


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-ar!etin7 and sales+ 2ultiple domains4 &ED6 Google $ds6 &ocial 2edia6 Print 2edia6 TO #ommer

+ &ales Promotion4 DJers Lone - 'eals o the da,6 Top DJers6 &ave 2oreQ Pr&u+scription DJers

+ lipkart $liate Program

Taglines and promotions4

+ ;ookstore at ,our doorS6


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Outbound /o7istics1tora7e

+ 2a3or !arehouses in * cities 2um+ai6 1olkata6 'elhi6 Hoida6 Punand ;angalore

+ Regional distri+ution centres spread across Tier I and high volume

at over 5 locations

/ast mile delivery%

e1art 8lipkart Fogistics&hipping partner o W& Retail94 &pin oJ compan,6 more economical than other (rd part, logistics compa

Priorit, &eAuence4 e1art (PF 8;lue'art6 '=F6 etc.9 India Post


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$ustomer support#ot $nbound and outsourced call centre

$n%bound+ Sales ssistance

+ -roductSippin Related enuiry

'ut%bound

+ $n!or" custo"ers about delay in deliveries

+ 3eck status o! re!undsreturns

+ $nti"ation o! unsuccess!ul deliveries


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FlipKart strate7ies

Product 'evelopment 8Technolog,9 #ontinue to invest heavil, to create consumer riendl,

ocus on development o eatures using image6 speec

location o mo+ile devices.

Faunched a mo+ile +ro!ser e"perience through a !e+called lipkart Fite

Faunched a ne! universal Windo!s $ppS or all Wind

devices 8mo+ile6 desktops6 ta+lets9

2 k ti &t t i


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2arketing &trategies lipkart ver, !isel, used &ED 8&earch Engine Dptimi:ation9 a

$d-!ords as the marketing tools to have a ar reach in the on $dvertise in traditional media ne!spapers6 +anners6 +ill+oard

television media !ith prime time slot.

Dl".in and lipkart tie-up to leverage each others strength tocom+ined +eneKts o their platorms6 giving users a more holshopping e"perience in !hich the, can sell their used goods o+u,ing ne! products on lipkart.

#ustomer satisaction has +een their +est marketing medium lipkart launched a series o ( ads !ith the tag line - VHo 1idd

!orriesS

)wareness throu7h the advertisement

- Ho ear o getting !rong product- ( da,s guarantee

- Ho ear o giving credit card details- cash on deliver, eature

- Ho ear o getting duplicate product- original product !ith original gu


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&uppl, #hain strategies;ack!ard integration to o!n the logistics o deliver, Ek8lipkart save commissions !orth than @9Tied up !ith 2apm,India to license map data and locatio

technologies6 and deplo, location intelligence capa+ilitits logistics net!ork to strengthen its deliver, operatio

=as tied up !ith 2um+ais lunch+o" deliver, men6 as it trsmooth the oten dicult last stretch o its deliver, to c

2arket capture &trategies


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2arket capture &trategies #ash on 'eliver, 8increasing its user +ase +, 5@ !ithin B da,

on deliver,6 (- da, replacement polic,6 E2I options6 ree shippprice to gain customer conKdence

Faunched 7e8perience 9ones7 at locations across the countr

customers to pickup shipments at a convenient time and locatio Faunched lipkart irst6 a su+scription-+ased service that provida host o e"clusive +eneKts along !ith priorit, service eatures

Private Fa+els- 'igiip X consumer electronics Keld- lippid X liest,le apparels- #itron X cooking utilities and grooming products

For 1ellers 4Faunched a nation!ide campaign 7$pne &apne


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Ris!s : $hallen7es

6neven Orders 4 =ighest num+er o orders and sales get

during !eekendsestivals proves to +e tough or logistics aservice.

#hallenge lies to reduce operational e"penses and increase

2ultiple ta" rates across geographies - compliance o sale

ta" la!s2anage inconsistent +rand e"perience across platormsQ m

prolieration o technologies.

4i7h customer ac*uisition cost4 It has +een rising due t

competition +, the relativel, +etter oJ companies !ith mo


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Future prospects Investment in market development - Tier II 6 Tier III cities

Dn+oarding and training the suppliers suppliers ocus on improved customer service through technolog,

diJerentiate its +rand rom competitors Reduce operational costs and improve logistics Gain e"clusive selling rights o lu"ur, +randsitems. $ssociate !ith a larger num+er o suppliers and partners

nationall, and internationall, $+ilit, to scale to International markets &cale into untapped categories


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online retail(1) (2)

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