zovi.com
DESCRIPTION
Zovi.com and its payment SystemTRANSCRIPT
ZOVI.COM
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Content
1. Introduction
i. E-commerce
ii. E-Commerce in India
iii. Challenges of E-Commerce in India
2. Objective of Study
3. Research Methodology
4. Introduction of ZOVI.COM
i. Story behind ZOVI.COM
ii. Journey of Organization
5. Business Model
6. Strategies which helped them
7. What makes Zovi different from others?
8. Payment System
9. Security
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10.Recommendations
11.Bibliography
Introduction of E-Commerce
E-commerce (electronic commerce or EC) is the buying and selling of
goods and services on the Internet, especially the World Wide Web. In
practice, this term and a newer term, e-business, are often used
interchangeably. For online retail selling, the term e-tailing is sometimes
used.
E-Commerce in India
India has an internet user base of over 100 million users. The penetration
of e-commerce is low compared to markets like the United States and the
United Kingdom but is growing at a much faster rate with a large number
of new entrants.
By the end of 2011, the net commerce market size was grown by 47 per
cent and touch Rs 46,520 crore.
Comprising about 81 per cent of the total e-commerce in the country, the
online travel market, which includes booking rail and air tickets, hotel
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accommodations and tour packages, was grown by 50 per cent and touch
Rs 37,890 crore by December, 2011.
In the travel portfolio, which was worth Rs 14,953 crore in 2009,
domestic air travel contributed 63 per cent, followed by railway tickets
(28 per cent).
Others, such as international air travel (Rs 548 crore), hotel bookings (Rs
308 crore), bus tickets (Rs 294 crore), tour packages (Rs 86 crore) and
travel insurance (Rs 52 crore), contributed the balance 9 per cent of the
total online travel market.
Another area that has shown significant growth is the financial services
market, such as online insurance payments and transactions through
trading accounts, which grew from Rs 1540 crore to an estimated Rs
2,000 crore during the one-year period ending December, 2010.
Challenges of E-Commerce in India
Way too many players
In India whenever a trend starts several people jump in and soon supply
starts to exceed demand and that causes all kinds of issues in the market.
Logistics & Supply chain
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India's logistics sucks. We still have 3rd world logistics. A large part of
the ecommerce success in the developed nations was because they
already had rock-solid logistics in place. In India trying to find an address
or a location is a nightmare.
Payments
This is a major challenge and results in poor customer experience. The
payment gateway vendors and banks suck at technology.
Large volumes of transactions in India are cash based
transactions
A small fraction of Indians have virtual payment instruments like credit
cards or bank accounts. Largely we are cash driven economy.
Objectives of Study
To understand the e-business of ZOVI.com
To examine payment system of ZOVI.com
To understand business model and security system of ZOVI.com
Research Methodology
My research methodology requires gathering relevant data from the
specified documents and compiling databases in order to analyze the
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material. We collect secondary source of data from various websites
and primary source of data from direct contact through email and
phone.
ZOVI.COM
Introduction
ZOVI.COM is India’s first exclusively online apparel brand for men.
Zovi.com has been launched by SAIF Partners, a leading private equity
firm that provides growth capital to companies in Asia in July 2011. By
year-end of 2011 Zovi.com also added women’s range as well. Zovi has
raised $5.5 million from SAIF Partners and angel investors like
MakeMyTrip founder Deep Kalra. Set up as an entrepreneur-in-residence
project, where the venture fund picks an entrepreneur to execute a pre-
conceived idea, Zovi.com will now offer a range of men’s apparel
designed by Sartaj Mehta, former design head of Benetton India.
From last 6-month ZOVI sold more than 1 lakhs products.
Story behind ZOVI.COM
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Zovi.com is highly inspired from China based apparel website
Vancl.com. The Idea behind Zovi.com was to create a website that would
make it possible to sell online apparel Brand for men. It was the first
website for Men apparel. Its main focus was to remove the inefficiencies
that exist in an offline distribution system and to satisfy their customers
with high quality apparel at very reasonable prices.
Journey of Organization
In 2010
Company Name Robe mall Apparels Private Limited Was
Established with 100 Employees in Bangalore.
Company is the Manufacturer and Retailer of Shirt, Belts, Woolen
Garments, Ladies Shoes, and Gents Shoes. The company was
funded by Soft Bank Asia Investment Fund.
In Feb. 2011
Rob mall Apparels Private Limited went online and creates an e-
commerce website.
In July, 2011
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Website was officially launched by Company and company gave a
catchy name of their website (i.e. ZOVI.COM).
Company was only introducing Men apparel.
The first product Zovi sold was a men’s belt.
In Nov-Dec, 2011
Robe mall Apparels Private Limited established manufacturing
and distribution unit in Gurgaon.
Zovi added women range and winter wear.
Business Model
Zovi.com follows Virtual Merchant variations of Portal business
model of Business-to-consumer (B2C) E-commerce.
Zovi.com generates revenue from sales of goods.
Zovi is selling their products with own brand name (ZOVI) which is
manufacturing and distributing by Zovi its self.
Strategies which helped them
Company target basically youth and college students.
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Prices range starts from Rs. 249 for T-shirts to Rs. 1699 for Jackets
which, can come under budget of every youth.
Every month ZOVI is introducing new product range and added
new item every day.
On purchase of Rs.1000 and above Zovi is offering Gift voucher of
Rs.250
Company is using social networking sites (facebook, orkut, hi5
etc.), email provider sites (mail.com, yahoo.com) and discussion
board webpage for advertising their products.
Zovi Offer super Sunday, in every Sunday you can win a zovi bag
every hour.
Zovi regularly changes their product range according to market
demand.
What makes Zovi different from others?
Like all other online shopping websites, Zovi also offer -
Free Shipping anywhere in India.
30 Day Exchange/Return.
Pay Cash on delivery.
But, which differentiate zovi from others are-
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Z-QUOTIENT- z-quotient is a tab in zovi website where you will
find why any product is different from others and for which
purpose.
This tab will also offer discussion board/ news feed.
Zovi has their own manufacturing and distributing channel so,
delivery system of zovi is very fast.
Payment System
Zovi offers payment through
Credit Card (Visa/Master)
Debit Card (Visa/Master)
Cash on Delivery (Rs. 50 charge in case of order amount is less
than 350)
Pay pal (International card) and
Zovi Gift Card
Security
Zovi does not share personal information of buyers to others
website. Zovi use contact information for only send offers based on
previous order and interest.
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A "cookie" is a small piece of information stored by a Web server
on a Web browser so it can be later read back from that browser.
Cookies are sometimes leak all the information. ZOVI.com's
cookies do not contain any of your personally identifiable
information.
ZOVI does not store any billing information. Zovi simply pass on
the information provide by customer on site to the payment
gateways at the bank, that charges credit card. This information is
provided to them over a secure channel (We can see a green lock in
browser bar during the payment process which indicates that
customer interaction with Zovi, at that point is safe from
interception).
Zovi provide 128 bit encryption SSL protocol while transaction
through debit and credit card payment.
Recommendations
There is nothing for 35+ age group and kids. So, Zovi should
introduce range for 35+ age group and kinds.
Zovi doesn’t offer advertisement in their website (Zovi.com). So,
Zovi can’t generate revenue from advertisement of others website.
zovi should offer advertisement then, it will help them to generate
revenue.
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Zovi should also advertisement through TVC and newspapers. It
will help them to reach large audience.
Zovi is not selling Branded product range. So, sometime trust
factor is missing. Zovi should bring Branded product range also.
Bibliography
http://zovi.com/
http://www.quora.com/What-are-the-biggest-challenges-facing-
eCommerce-sites-in-India
http://www.fashionunited.in/news/apparel/a-virtual-bonanza-for-men-
150720112258
http://articles.economictimes.indiatimes.com/2011-03-21/news/
29171192_1_online-travel-market-e-commerce-travel-insurance
http://searchcio.techtarget.com/definition/e-commerce
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