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Building The Bricks Of Your
Digital Strategy
Akshay Chaturvedi
Housefull
Digital – WTF, What the fuss…..
In last 1 year internet user
base has grown by 100
million, clearly Internet is
mainstream in India today
The growth is fuelled by
mobile internet users
especially from Tier 2 – 3
cities.
Source: Internet and mobile association of India (IAMAI)
Simply put ….
India is adding 3 internet users every second
It already is the second largest market ranked by user
numbers!
Internet Penetration in India 59% by 2020
Growth in Ecommerce
Ecommerce - 35% CAGR
Online shoppers - 26%
Orders/shopper/year – 20%
AOV - 32% (last two years)
Furniture & Furnishing category is
growing by CAGR of 75%
$ 38 Bn-2016
(P)
$23 Bn -
2015
$17 Bn-
2014
Source: Associated chambers of commerce and Industry (ASSOCHAM)
Crystal Gazing ….
No. of online shoppers in India
2015 – 50 Million
2020 – 320 Millon
Indian Internet Market Size by 2020
$159 Billion
Source: Morgan Stanley Research
Key Growth Drivers
Mobile generated 78% of shopping query in
2015 predominantly in fashion category.
Men account for 71 per cent of Internet
users, while women just 29 per cent,
however women influenced sales has
grown above 4X in last two years and
expected to grow 2x in next 2 years.
30% of online GMV in 2015 was influenced
by women.
8X
21 X
1X
201
2
201
3
201
5
1X
201
2
201
3
201
5
4X
17X
Key Payment Trends
With the increasing Digital
Payments penetration, share of
COD shipment is reducing. It has
come down to 45% in 2015 from
60% in 2013
With Increasing order values, there
is uptick of EMI payments. It has
gone to 5% in 2015 from 1% in
2013
60%
45%
COD
2013 2015
1%
5%
2013 2015
EMI
Got the fuss …. Now Remember
Strength Meets Opportunity
Building Block 1:
Focusing on the basics, Getting Strategy in place
Digital strategy is intrinsic to business strategy today. In fact, 90 percent
of digital leaders (versus 60 percent of all leaders) have fully integrated
digital into their strategic-planning process – McKinsey
Setting Organizational Goal, understanding Customers’ goals
Setting Marketing KPIs directly related to organizational objectives
Tapping the demand of new growing middle and upper middle class in
terms of product quality, uses and design
Improve warehouse infrastructure to minimise turn-around-time and
logistic infrastructure to increase geography reach
Stores and Website is not One Vs Other
Building Block 1 – Getting Strategy in Place
Best digital strategies don’t rely on past analyses, but start fresh and
carve out a vision based on where value is likely to shift over next 3 to 5
years
ASSESS :-
where value is likely to be disrupted within own business
or prioritize a handful of interventions where the business can exploit
significant opportunities (and divest or reduce exposure in markets where
value is declining)
then craft a digitally enabled business model around them.
LEADING TO : - new way for customers to purchase a product, moving
into new businesses or exploiting competitive advantages
Building Block 2:
Audiences, Customer Journeys & Segments
Understanding consumer decision journeys would be the cornerstone of
success – whether its evaluation of products or engaging with brands
Similarly analysing data & outreach based on them would be the key
Segmentation in our case
◦Primary Audiences – Age group 25 – 45 years
◦Secondary Audiences – Females/Newly wed (Shop the look)
◦Segmentation based on Products and room types
◦New home buyers, old furniture sellers
Building Block 3:
Digital Landscape & Tech Infrastructure
Digital
Strategy
SEO
Email
MarketingSocial Media
Search Engine
Marketing
Display
Advertising
Content
Marketing
Website eCRM Cloud ERP
Omni Channel Retail
Building Block 4:
Content Strategy
Content marketing is the biggest opportunity as well as biggest challenge
for most ecommerce companies
Social media is important, content is important, conversion is important,
but making the link between the three is equally important.
Storytelling – Opportunity lies in storytelling not by brand but by its
community. If the messaging is right, the customer will instantly become
brand ambassador.
Its all about the 3 C’s – How are you placed ?
Building Block 5:
Defining Success
Data Driven Decisions (Data Capture -> Report -> Analysis)
◦Measuring Success against benchmarks
◦Specialized web analytics tools – actionable insights for business decisions
◦Consumer Analytics – Focus on customer centric outcomes
◦To build effective Recomendation engine
Multi Channel Attribution
◦Across multiple screens
◦Across Digital Channels
◦Online to Store
Companies that make extensive use of customer analytics see a 126 %
profit improvement over competitors - McKinsey
Building Block 6:
Plan, Analyze & Adjust
It’s a continuous improvement plan
◦Formulate smart hypothesis
◦Do lots of A/B, Multivariate tests
◦Analyze Goal/Conversion Funnels
◦Repeat
Thank You & All the Best!

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Digital-Strategy-Retail

  • 1. Building The Bricks Of Your Digital Strategy Akshay Chaturvedi Housefull
  • 2. Digital – WTF, What the fuss….. In last 1 year internet user base has grown by 100 million, clearly Internet is mainstream in India today The growth is fuelled by mobile internet users especially from Tier 2 – 3 cities. Source: Internet and mobile association of India (IAMAI)
  • 3. Simply put …. India is adding 3 internet users every second It already is the second largest market ranked by user numbers! Internet Penetration in India 59% by 2020
  • 4. Growth in Ecommerce Ecommerce - 35% CAGR Online shoppers - 26% Orders/shopper/year – 20% AOV - 32% (last two years) Furniture & Furnishing category is growing by CAGR of 75% $ 38 Bn-2016 (P) $23 Bn - 2015 $17 Bn- 2014 Source: Associated chambers of commerce and Industry (ASSOCHAM)
  • 5. Crystal Gazing …. No. of online shoppers in India 2015 – 50 Million 2020 – 320 Millon Indian Internet Market Size by 2020 $159 Billion Source: Morgan Stanley Research
  • 6. Key Growth Drivers Mobile generated 78% of shopping query in 2015 predominantly in fashion category. Men account for 71 per cent of Internet users, while women just 29 per cent, however women influenced sales has grown above 4X in last two years and expected to grow 2x in next 2 years. 30% of online GMV in 2015 was influenced by women. 8X 21 X 1X 201 2 201 3 201 5 1X 201 2 201 3 201 5 4X 17X
  • 7. Key Payment Trends With the increasing Digital Payments penetration, share of COD shipment is reducing. It has come down to 45% in 2015 from 60% in 2013 With Increasing order values, there is uptick of EMI payments. It has gone to 5% in 2015 from 1% in 2013 60% 45% COD 2013 2015 1% 5% 2013 2015 EMI
  • 8. Got the fuss …. Now Remember
  • 10. Building Block 1: Focusing on the basics, Getting Strategy in place Digital strategy is intrinsic to business strategy today. In fact, 90 percent of digital leaders (versus 60 percent of all leaders) have fully integrated digital into their strategic-planning process – McKinsey Setting Organizational Goal, understanding Customers’ goals Setting Marketing KPIs directly related to organizational objectives Tapping the demand of new growing middle and upper middle class in terms of product quality, uses and design Improve warehouse infrastructure to minimise turn-around-time and logistic infrastructure to increase geography reach Stores and Website is not One Vs Other
  • 11. Building Block 1 – Getting Strategy in Place Best digital strategies don’t rely on past analyses, but start fresh and carve out a vision based on where value is likely to shift over next 3 to 5 years ASSESS :- where value is likely to be disrupted within own business or prioritize a handful of interventions where the business can exploit significant opportunities (and divest or reduce exposure in markets where value is declining) then craft a digitally enabled business model around them. LEADING TO : - new way for customers to purchase a product, moving into new businesses or exploiting competitive advantages
  • 12. Building Block 2: Audiences, Customer Journeys & Segments Understanding consumer decision journeys would be the cornerstone of success – whether its evaluation of products or engaging with brands Similarly analysing data & outreach based on them would be the key Segmentation in our case ◦Primary Audiences – Age group 25 – 45 years ◦Secondary Audiences – Females/Newly wed (Shop the look) ◦Segmentation based on Products and room types ◦New home buyers, old furniture sellers
  • 13. Building Block 3: Digital Landscape & Tech Infrastructure Digital Strategy SEO Email MarketingSocial Media Search Engine Marketing Display Advertising Content Marketing Website eCRM Cloud ERP
  • 15. Building Block 4: Content Strategy Content marketing is the biggest opportunity as well as biggest challenge for most ecommerce companies Social media is important, content is important, conversion is important, but making the link between the three is equally important. Storytelling – Opportunity lies in storytelling not by brand but by its community. If the messaging is right, the customer will instantly become brand ambassador.
  • 16. Its all about the 3 C’s – How are you placed ?
  • 17. Building Block 5: Defining Success Data Driven Decisions (Data Capture -> Report -> Analysis) ◦Measuring Success against benchmarks ◦Specialized web analytics tools – actionable insights for business decisions ◦Consumer Analytics – Focus on customer centric outcomes ◦To build effective Recomendation engine Multi Channel Attribution ◦Across multiple screens ◦Across Digital Channels ◦Online to Store Companies that make extensive use of customer analytics see a 126 % profit improvement over competitors - McKinsey
  • 18. Building Block 6: Plan, Analyze & Adjust It’s a continuous improvement plan ◦Formulate smart hypothesis ◦Do lots of A/B, Multivariate tests ◦Analyze Goal/Conversion Funnels ◦Repeat
  • 19. Thank You & All the Best!