2. INFIBEAM.COM: Where customers could browse
through products and have the same delivered within
India within a few days.
1.5 % Market Share in 3 Years
Successful Partnerships with many retail Giants
Do-it-Yourself E-Commerce platform for Other
Retailers
3. Expansion to Newer formats: Photo Printing
Website and Remote Cataloguing Company
Vishwagram Bazaar in collaboration with
Government of Gujrat to expand and tap into the
upcoming rural market
4. People not comfortable in transacting online. Still in
adaptation process
Low internet penetration (only 42 mill users with
3.7% penetration
Payment and Physical infrastructure not much
developed
Main Offering: Pricing, Selection and Convenience.
Wide Selection (Virtualization of Inventory)
Low penetration of Credit and Debit Cards.
5. Growing Internet Subscription Rate
Lacklustre execution and poor customer service
primary cause of closure of players.
Few Sites could build trust and loyalty
Challanges:
Supply Chain
Accurate and Timely Delivery of products
Complex system of Taxation
6. Company Started Merchandise Promotio Sales Users Misc
in n
FlipKart Octobe Books, CDs, SNS and 250 Mill in 50000 Books
r 2007 DVDs, WOM, TV 2007 0 are top
Mobiles, Ads 75 Cr in 2010-11 selling
Computers, categor
Music, y,
Movies projecte
Games, d
Gadgets revenue
of 1 Bill
in 2014-
15
Ebay 2004 Practically Social and ----- 2.5
(C2C) Anything Viral Million
between Marketin
users (50000) g, Print
and TV
7. Company Started in Merchandi Promotion Sales Users Misc
se
India Plaza 1999 Books, Rewards 20 Cr in --- Low Prices
(NRI Pop) music, and loyalty 2007 Reliable
camers, programs operations
mobile, for Banks,
appliances Airlines etc
, flowers,
cakes, toys
Rediff 1996 Books, car ‘DEAL HO 14.6 Mill in 15 Million --
accessorie JAYE’, 2009-10 every
s, h/w, 17.94 mill month
health and in 2010-11
beauty,
jewellery,
kitchenwa
re,
apparel,
electronics
and toys
8. Company Started in Merchandi Promotion Sales Users Misc
se
Indiatimes Elecronics, Brand 312 mill in 47 mill in Good
apparels, Image of 2009-10 2010 distributio
watches, Parent n network
bags, Company and
jewellery, different
gifts payment
options,
Encrytion
tech and
privacy
rules
9. Wide Variety/Depth of Products (using virtualization
of inventory).
Consistent addition to product portfolios.
Ability to search for products on various parameters
(individually or in combinations)
Additional Features: What your Friends Viewed, You
may Also Like, Products similar/Related to this.
Referral Programs.
Social Media interaction
Improving the online experience with navigation,
search, online help and porting over shopping lists
10. Online Coupons
Loyalty Programs
Discounts
Seasonal or Festival Sales
Promotion Codes
11. Magic Box – One product everyday at a heavily
discounted price
Maintain low prices across categories
Lowest possible price throughout year
Regular monitoring of competition’s prices to set
target purchase prices
Robust supply chain of tail products helping in
increasing sales
12. Also keep track of prices in modern retailers to beat
them
More discounts, offers during weekends to increase
traffic
Use of automated pricing technology - which
automatically adjusts prices within specified business
rules when a competitor changes their prices on
products
Increase margins on tail products
Price discrimination - Identify the sources through
which customers come to the website -- and price
accordingly
13. Product Categories 5 Share of Orders
Books and Magazines 50
Electronics 25
-Home Entertainment and appliances 38
- Computers, cameras and peripherals 34
- Mobiles and peripherals 28
Lifestyle 25
- Apparel and accessories 49
- Home Lifestyle 32
-Gifts 12
-Others 7
14. Product bundling and cross selling for related
products
Increase seasonal merchandising (if not being done
currently)
Increase homepage coverage for Apparels which
could have more margins (currently not shown on
homepage)
Increase membership by Loyalty programs to
increase customization according to buying pattern,
sex, affluence, age, etc.
15. WEB DESIGN CONSIDERATIONS FOR E-RETAIL STORE
The Simpler the Better
Customers don’t expect to be confused by a super innovative and inconvenient
navigation or non-readable text. Store’s home page should not be overloaded with a
complex navigation structure
New Products/ Most favored product Display
These should be given discount so as to increase traffic, and should be on the very
first page. One slider banner with several rotating images (with vivid titles,
discounted prices and special buying conditions) will be enough to grab visitors’
attention and to make them follow the link to take a closer look at the featured
products. It will work for both first-time and returning visitors.
Shopping by Category
Since products have a number of categories, hence the search or browsing should be
category wise or else the customers might get too confused
16. Creating Search Boxes
A few seconds after entering the site, if a potential customer can’t find a thing he/she
needs, more likely he/she will go away and find another store. Hence it is necessary
to have search boxes
Creating a Product list with Images
Thoughtful products categorization will bring better results and help to arrange the
web space better. It is extremely important to have availability of images since
people shop visually. Home pages can’t include numerous pictures of all products,
but they can be illustrated with the most eye-catching ones or the most favored
products.
Contact Info
A good customer care from the website’s end assures the physical presence of the
online media, hence this is of prime importance.
Payment System
Payment system icons are usually located at the bottom of the home page or even
through the entire website. They are not clickable and just let us know how we can
pay on this store. The payment should be accepted from a number of resources such
as credit card, debit card, online banking or even “cash on delivery” should be an
option.
17. Shopping Cart/ Checkout Link/ Account Creation
People should create an account (but it’s not an obligation). It will not take much
time but customers will be able to check their previous orders. Store should track
their customers account activity and present them with some discounts or special
buying conditions.
It’s considered that the upper left part of web pages is the most viewable because
visitors start looking through a website’s content from there. Hence a shopping
cart icon as well as login should be present there to let the customers know their
purchases.
Name/ Website logo
The home page is not a place for self-promotion. Clear logo, store name and short
descriptive sentences about what the company is be more than enough. This is
because majority of customers are interested in the goods/ services being offered
rather than the company offering them.
18. SUPPLY CHAIN MANAGEMENT FOR E-RETAILING
• Get in a contract with the suppliers within 20 kms of every e-gram that has to be
established. For different areas there should be different suppliers.
• Getting IT implementation on suppliers side to keep a check on inventory.
• Implement better warehouse management, including tailored pick orders and
stock replenishment by pre-set thresholds.
• Implementing reverse logistics, incase the consumers want to sell their products
• Track and manage inventory, including in multiple locations by getting up-to-date
information about in-stock quantities.
• Real time access to customer records, sales histories and customer activity, for
offering better services, discounts and service recovery.
• Implementing the information recovery of getting real time data of delivery on
time to the customers through 3rd party logistics.
19. SUPPLY CHAIN MODEL FOR E-RETAILING
India Post
Warehouse Customers
infibeam.com
World
Wide
Suppliers Web
20. For Offline Users
Target Consumers For online users Fund Raising
Awareness
• College going & • At least making • SEO -- The • PR – Since one of
Young Men people aware of majority of their main
• To tap them it as one of the shoppers choose objective is fund
tools such as options in the e to click on a raising therefore
Social commerce result from the
space. first-page of this is one tool
Networking sites
results which they have
are most • TV is most
important. important tool • Affiliate to use more
• Fan pages, for this purpose. Programs – Use
discussion well known
forums etc highly visited often.
sites especially
their
Buildabazaar
partners for
exchange in ad
space.
21. Customer Lifetime value is important but since the
major value proposition in this space is low cost so we
think its more about being in the consideration set ,
providing best deals & hassle free experience.
Although additional Customer acquisition cost due
to promotion & for awareness is calculated below:
22. Because of both low effectiveness & regulatory cap on SMS’s we suggest zero
spend on the space, also one of the components could be PR but since we are
talking about direct additional customer acquisition cost due to promotion we
have not taken PR into account.
23. Amazon.com offered convenience of browsing million
books in a single sitting
Used technical innovation to offer more product
category
Amazon operated retail website and allowed third
parties to sell product on its site
Operated several websites for search and navigation
Offered e commerce platform to other retailers and
individual sellers to enhance revenue.
24. Launched in native language for online auction and
shopping in year 2003
Offering for business retailer and individual
entrepreneur to open their online retail stores
Unlike eBay which charged listing fees it was free to
use
Local name drew the local crowd attention and
poached customer from rival eBay.
25. Understood its customer well and thus provided
higher satisfaction
Unlike eBay’s listing which were more product
centric Taobao chose a customer centric listing
Taobao targeted cell phone savvy Chinese customer
over far less number of internet user( 5.3%
penetration level in 2003) through instant messaging
and voice mails.
26. Failed to recognize that Chinese market and
business environment very different than the west.
Failed to understand the local market and used
wrong medium to reach to its target segment
Didn’t customized its product according to local
taste and preferences instead stuck to its “ global
platform” agenda.