WHAT IS THE YOUTH (WOMEN) BUYING

ONLINE?

Presented by: Group 2

Srishti KuldeepAakarsh KhemkaSakshi JainPreethei VIshani RoychowdhuryPavan Kumar AlladaAnubhav Singh

Objectives and Introduction• To analyse the online shopping preferences of young women based on what

they buy

• To share key findings and make recommendations thereof

• To analyse the online shopping preferences of young women based on what they buy

• To share key findings and make recommendations thereof • E-commerce is an ever growing segment of retail

• E-commerce retailer can attract more customers through diversity of products and services, clarity in the information provided, good feedbacks and trustworthiness in filling financial information online

• Finding potentially cheaper prices is a major driver of shopping online

• Trends of e-shopping are changing day to day, in which things ranging from brand new products to second hand ones are sold or purchased online

• Mobile and tablet e-commerce has also boomed in the past few years

• Ease of delivery and return policy are also expected to drive their choice in selecting a specific product or service

• Customer reviews and previous experiences have been considered to be major motivating factors

• The categories of products which women buy from e-retailers includes clothing, footwear, bags, beauty & personal care, books, home appliances, baby care, and electronic gadgets

• Also avail services like travel, movie ticketing, and food delivery online

To format

Literature ReviewAakarsh

Research methodologyAakarsh

AnalysisIshani

DiscussionIshani

Srishti’s slides

INTRODUCTION• E-commerce is an ever growing segment of retail

• E-commerce retailer can attract more customers through diversity of products and services, clarity in the information provided, good feedbacks and trustworthiness in filling financial information online

• Finding potentially cheaper prices is a major driver of shopping online

• Trends of e-shopping are changing day to day, in which things ranging from brand new products to second hand ones are sold or purchased online

• Mobile and tablet e-commerce has also boomed in the past few years

• Ease of delivery and return policy are also expected to drive their choice in selecting a specific product or service

• Customer reviews and previous experiences have been considered to be major motivating factors

• The categories of products which women buy from e-retailers includes clothing, footwear, bags, beauty & personal care, books, home appliances, baby care, and electronic gadgets

• Also avail services like travel, movie ticketing, and food delivery online

OBJECTIVES OF THE PROJECT

• To analyze the online shopping preferences of young women based on what they buy

• To share key findings and make recommendations thereof

E-commerce industry in India Total internet user base in India

was at 124 million users in the month of July 2012.

1 out of every 10 Indian is online.

Overall e-commerce market in India has recorded CAGR of 54.6 per cent and crossed USD 10.0 billion during 2007–11.

Factors that

influence the

growth

Increased

broadband

internetRising

standards of living

Availability of much

wider product range

Lower prices

Lack of time for offline

shopping

Urban traffic

congestion

Busy lifestyl

es

Online Users: Demographic Study

• According to a June 2010 Comscore Report, women rule the sale of apparel and accessories online, 71% of the total sales made.

Demographic Profile of Online users (July 12)

EVOLUTION OF E-COMMERCE IN INDIA

Classification of E-commerce sector

Based on the parties involved in the transactions:

1. B2B (small contributor,

US$50.37 million in 2011 )

2. B2C (dominated, 56.0 per cent

share in 2010–11 )

3. C2B

4. C2C

DIFFERENT MODES OF E-COMMERCE TRANSACTIONS• Online travel: accounts for majority of the sales of the

largest segment, B2C

• Captured the biggest pie, accounted for 81.4 per cent of the entire market

• Indian Railway Catering and Tourism Corporation (IRCTC: 40 % bookings done online) and makemytrip.com

• Online retail: largest category of products selling online in India, with a market share of 61%.

• Apparel has been the fastest growing subcategory in retail and reaches 13.4% online users in India.

• Flipkart leads the way among the online retailers in India with 7.4 million unique visitors a month, growing at 431% annually.

• Snapdeal has been close second with 6.9 million unique visitors.

• Jabong and Myntra have been competing closely in the lifestyle category with over 5.3 million unique visitors each.

• HomeShop18 has over 4 million unique visitors a month.

CHALLENGES IN THE INDIAN E-COMMERCE MARKET

• Increased competition with the entry of global players

• Low margins prompting e-Commerce players to look at new business models

• Cloud surrounding e-Commerce laws in India

• Urban phenomenon

• Shortage of manpower

• Lack of customer loyalty

FUTURE OF E-COMMERCE IN INDIA• E-commerce in India has grown rapidly across both travel and retail in the last 12

months

• Travel e-commerce has been above global averages and continues to soar in terms of visitation and transactions.

• IRCTC has led the category with the largest transaction share and dollar share contribution

• Retail category has seen peculiar growth with a lot of retailers pushing for trials among consumers through discounts and freebies

• Among all retail sites apparel and lifestyle goods have seen an early adoption among consumers

• Models like Cash on Delivery and other consumer centric payment options and improved service quality will boost overall sales

• Learning curve among online retailers and consumers will put India on the global map as one of the largest e commerce markets in the coming months

STRUCTURE OF LITERATURE REVIEW

Research Trends in Online shopping

behavior

Emerging role of youth in propelling

online shopping

Role of gender in identifying online purchase pattern

Inferences from the literature

Transaction or Cost

Incentive Programs

Website design

Interactivity or engagement

screen multiple products

Men are more pragmatic

Women face greater anxiety

Women are more strongly

influenced

FRAMEWORK DERIVED FROM LITERATURE REVIEW

STATISTICS & ANALYSIS• SAMPLE: Surveyed a total of 229 young women in the age group of 18-35, across

professions and income levels.

• REMOVING OUTLIERS: No. of outliers found= 4

No. of respondents taken into consideration= 229-4= 225

• DEMOGRAPHICS OF THE RESPONDENTS:

1. Age

2. Income bracket of parents

3. Profession of parents:

Parents’ profession varied from:

Business (10%)

Service (8%)

Medicine (5%).

Modes of

access

Time spent

Time spent online

per week

Frequency

SHOPPING BEHAVIOUR

AGE CLUSTER BASED ANALYSIS

• Created from the data on Age into 4 groups: <18, 18-21, 22-27 and 28-35

• Based on high number of responses, we selected age groups 22 to 27 and 18 to 21

• The following parameters were analyzed:

a)Products & Services being bought

b) Drivers of shopping online

c)Preferences towards branded products

d)Loyalty towards certain shopping websites

Interpretation:

Young women of the age 22 to 23 are the most enthusiastic about shopping online

With age, the tendency to shop online might decline as retail stores become more accessibleBrand consciousness with more purchasing power also drives their behaviors away from online shopping

FRAMEWORK BASED ON SURVEY ANALYSIS

CONCLUSION• Access to on-line shopping has truly revolutionized the way women shop

• Opened the path for a more convenient lifestyle

• More than 50% of the respondents spend over 15 hours a week on the internet and this shows the potential for growth in this sector for e-retailers

• The most popular buy on the internet for women was found to be books, 65% of the respondents, closely followed by clothing and travel services

• Other major products/services women bought on-line were bags, food delivery, mobiles, and beauty and personal care products

• Age doesn't seem to have a major impact on the kind of products bought, except for a slight variation in the amount of time they spend on-line

• Preference towards branded products was higher in the case of women in lower age group

• Once the unethical possibility of fraud and privacy conflict is eliminated, this technology will lead the door to many more opportunities

SCOPE:

1) Expanding gender study2) Expanding age study3) Qualitative analysis4) Ethnographic study

LIMITATIONS:

1) Demographics: limited sample space2) Respondents are not obliged to provide accurate answers3) Different answers due to different interpretation of question4) Respondents may answer superficially (in case of a long survey)5) Biased responses6) Questionnaires do not provide an opportunity for the surveyor to clarify questions