E-tailing in India

SECONDARY RESEARCH BY

V.D.KRIBANIDHI &

ANANDVEL.S

MBA,PGP-II (2012-14)BIM, TRICHY

2012 to 20212012E-tail – 8% of E-commerce industry.E-tailing yields USD 0.6 billion 380 million mobile phone users &140 million internet users in India

2021 USD 76 billion180 million broadband users by 2020Employment to 1.45 million people600 million mobile phone users

- Technopak Study

Sectors using E-tailing Electronics Computers and Peripherals Toys & Games Travel & Tourism Real Estate Employment Apparels & Footwear

24.5

20.6

33

21.9

% of Revenue in 2012

Laptops/Netbooks/TabletsApparels & FootwearsMobile Phones,Cameras,accessoriesOthers

Major E tailers in India

Formats adopted by E-Tailers in India

Generic E-Tailers : like Flipkart, India plaza, Infibeam, etc, who deal in all products.

Deal Aggregators : They do not stock any items but work as intermediaries between suppliers and customers. Eg snapdeal, naptol, dealsandyou etc.

Niche players (Specialized Retailers) : who deal in specialized area only like caratlane, perfume2order, fashion&you, mithai etc.

Physical retailers turned E-Tailers : future group, shoppers stop, globus, landmark etc.

Growth Drivers

Increasing urbanization Burgeoning middle class with relatively high

disposable incomes In-adequacy of time of consumers High need for saving labour Convenience (open 24X7). Accessibility (can

purchase from anywhere through internet) Quick deals search and choice of best available in

the market. Increasing internet penetration. Young and educated population. Bargaining Obviated

E-tailing Key merits

Cater to consumers across geographies No operational timings Unlimited shelf space

Online Retail Aesthetics

Web site design Design of product Service comparison and information, Time to complete online order form, Ease of searching product and service, Screen layout, complexity & page

composition, Information display & retrieval methods

information,.

Challenges faced

High cost of acquiring customer High inventory cost Cash on delivery Logistics Problem of Returns Payment Gateway Crashes

Trends

Marketing tool (Valuable customer information)

Recommended products People also bought Customization of cart items display online coupons, gift certificates,

promotional codes customer reviews and ratings Referral and reward programs Social media events

Strategies Ahead

Set up infrastructure and procedures for reverse logistics

Internet access infrastructure Flawless payment infrastructure Compensatory Real-time Shopping

Experience

Social Shopping – Group shopping, Tagged shopping,

3-D Shopping

Customized mannequin trial experience

Community Building