1. Online Retailing
-trendsinIndiaandInternational

2. Introduction
 The digital revolution has
transformed industries like
music, books and travel
almost entirely because e-
commerce solutions
delivered shopper needs
in ways that traditional
channels couldn’t match.
2
The digital shopper
connected, savvy and actively seeking choice, convenience
and value for their money.
Are clicks,
destined to
replace
bricks?

3. Introduction
 Online retailing is catching up really fast
with Indians— says the Census Guide 2011
by eBay.
 Consumers are buying not only low-
involvement products but also:
 cosmetics,
 jewellery,
 watches,
 fashion clothing,
 electronic gadgets and
 fitness equipment online. 3
With growing
broadband
internet access,
this industry may
see an explosive
growth.

4. Retail: The future is ONLINE
Scalabi
lity
Growing at 30-40
per cent year-on-
year
Always available–
anywhere, anytime
Online store acts as the retailer’s face in front
of millions of people all across the globe.
Physical to online store is
inevitable.
Global
outreach
Easy to
manage
Fastest growing
medium
The online retail
industry in India is likely
to be worth Rs 70 billion
by 2015..
Seamless interaction with
consumers
Drive footfalls to your
traditional store

5. Online Retail: The Vision
 Reduced search and transaction costs,
 Customers able to find lowest prices,
 Lowered market entry costs,
 Lower operating costs,
 Higher efficiency
 Traditional physical store merchants
forced out of business,
 Some industries would be
disintermediated. 5

6. Shopper Needs and Retail
Advantages

7. 7

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12. An examination of the path to purchase for diapers versus
baby food provides an interesting perspective into the
different role of digital technology for two seemingly related
categories. At first glance, more shoppers use digital media
when shopping for diapers (62%) compared to baby food
DIAPERS V/S BABY FOOD

13.  The fundamentals of running an online or
offline retail business are the same, but
the mechanics are different:
1. Products
2. Presentation
3. Technology
4. Efficiency
5. Pricing
6. Delivery mechanism
7. Promotion
13
Investing in technology,
back-end logistics,
infrastructure scale
and customer
experience systems is
a continuous process
in Online business.

14.  Products: It is important to be
positioned as a store selling a range or a
product category. This avoids the
customers confusion where to go for
what.
 Presentation: The content and
presentations are critical, let the
customer get a good idea about the
quality and feel of the product simply by
photography and descriptions. In an
online store, the website talks to 14

15.  Technology: Spend more time to understand
the complex technology, its constraints, also the
pros and cons better. Also, security is one of the
major concerns for a customer when he is
shopping online.
 For example, recently Microsoft India’s e-commerce store
was hacked.
 Efficiency: An online store runs 24x7, so need
to round the clock service. Given a customer has
access to multiple stores, an e-commerce
business needs to operate super efficiently to be
able to survive and grow. 15

16.  Pricing: Online shopping clearly hinges on
price. The shopper makes a purchase
commitment only if he perceives the product
to be well priced.
 Delivery Mechanism: Customers equate the
delivery in online shopping almost as
instantaneously as they would in a brick-and-
mortar store. Therefore, deliver more
efficiently than the customer’s expectation for
a better customer experience and the
chances of repeat purchase. 16

17.  Promotion: Unlike offline retailers, Online retailers
should focus more, at least initially, on:
 Website layout,
 Visually appealing, user friendly and
secured website
 Product display, content and clarity
 Online marketing
 Customer acquisition activities and
 Customer experience, etc,
 In the long run, this will become the
critical success factor for online stores.
17
If 60 per cent of
the business
after a year of
existence is not
repeat, one is in
deep trouble,”
adds
Triedev Kapoor,
CEO,
ezeegift.com.

18. Online Target Shopper
18

19. How They Want
19

20. Value Proposition
20

21. 21
The Top 6 reasons why shopper buying
through on online
Rank
1
Saves time and efforts
2 Convenience of shopping at home
3 Wide variety / range of products are available
4 Good discounts / lower prices
5 Get detailed information of the product
6 You can compare across various brands /
models IMRB Survey

22. 22
6 Concerns while buying online
Rank
1
Not sure of product quality
2 Cannot bargain/Negotiate
3 Not sure of security of transactions /
Credit card misuse
4 Need to touch and feel the product
5 Significant discounts are not there
6 Have to wait for delivery
IMRB Survey

23. The Next Wave
 World's largest online retailer,
Amazon.com is set to enter India, as they
are in discussions with leading Indian
ecommerce players like Flipkart.com,
LetsBuy.com and Exclusively.in, among
others.
 Acquiring Indian players has been the
dominant theme for foreign majors
looking to enter Indian market with eBay
acquiring Baazee.com and Groupon
picking up SoSasta.com to enter the 23

24. Online Trend
 Flipkart, which started out as an online retailer of
books in 2007, has slowly diversified into
mobiles, cameras and movies and music.
 Bata, being a traditional brick-and-mortar retailer
decided to develop a new ecommerce platform
for the Indian market as they were confident of
the online model clicking with the consumers.
 There are more bigwigs like Reliance Retail,
Aditya Birla Retail and Tata’s Croma are looking
at entering the Rs.2,050 crore e-retailing market,
growing at over 30% annually.
24

25. Contd. ...
 FutureBazaar.com, the e-commerce arm
of the Future Group, that links to its stores
including eZone, Pantaloons and Big
Bazaar online delivers across 1,500 cities
and towns in India covering 16,000 PIN
codes.
 Experts say as the retail market evolves in
India, more e-commerce sites will be
launched by pure-play retailers and e-
tailers, not just the metros but in Tier II & 25

26.  Online retailing portals such as eBay.in ,
Snapdeal.com, and Naaptol.com are
registering anywhere between 40 and 60%
of their sales from rural areas apart from
the tier II and III cities like Vadodara,
Faridabad, Jaipur, Visakhapatnam,
Kanpur and Lucknow.
 According to eBay India Census 2010,
about 3,296 Indian cities shopped on eBay
last year, of which 2,234 were tier II and 26
Contd. ...

27. Popular Indian Online Retailers
 E Bay, Amazon-india, Wal-mart,
Wirefoot, fabindia, indiaplaza, flipcart,
snapdeal, myntra, futurebazaar,
Giftcardsindia.in, naaptol, homeshop18,
bechna.com, ultop.com,
Rediffproductsearch, CompareIndia.com,
wize.com, PriceGrabber.com,
yahooShopping, DealTime.com,
StreetPrices.com, Google Products.
27

28. Online Retailing International
 Gone are the days where we had to buy an entire album because of
a particular track. With iTunes, it is so much easier and economical
to customize a personal music library and deliver it digitally.
 It is much more convenient to visit travel sites like Expedia or
Travelocity to research, compare and make purchases, rather than
visiting a travel agency.
 In publishing, Amazon’s endless book selections, authentic reader
reviews, personalized book recommendations and e-book options
are hard for brick-and-mortar bookstores to match.
 Amazon’s edge in giving shoppers tailored and relevant choices as
well as highly competitive prices has forced traditional booksellers
like Borders to close, and has set Amazon on pace to own more
than half of the books business in the United States across all
formats by the end of 2012.
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29. Contd. ...
 Digital technology is widely pervasive today and
will only continue to grow at a rapid pace into the
future.
 Over 274 million Americans have access to the
Internet.
 As of March 2012, 117 million people had
smartphones, and approximately 80 percent of
them were using smartphones for shopping
activities like finding stores, making lists,
checking prices, researching products, sharing
content and purchasing
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30. Thank you