2. $450 billion retail
market by 2015
( = Italy)
300 million
shoppers
Larger tax
1.6 millions retail base
jobs
Lower waste via Lower consumer
Add $3-4 billions price 3-5%
more efficient
in GDP of five
supply chains
years

5. CE – Huge
Mkt

7. Top Categories by Value JAS 2011 Average Selling Price (In USD)
Online Buyers 17.3million Mobiles & Accessories 72
Top 10
Computers & Peripherals 82
USD 81mn/
Travel Non-Travel quarter Consumer Electronics 47
Health & Beauty 32
3.87mn 4.7mn 8.76mn Jewellery 76
22% 27% 51% Fitness & Sports 46
Cameras & Optics 89
Source: Juxt India Online 2011 Study July 2011
Kitchen & Home Appliances 31
 Online buyers of ‘non-travel’ products (13.5 Apparel & Accessories 20
million) outnumber ‘travel’ ones (8.6 million) Memory Cards, Pen Drives & HDD 26
Home, Decor & Furnishings 26
 Most bought ‘non-travel’ products are mobile Toys, Games & Baby 32
phones & accessories, computer hardware and Watches 42
consumer electronics Books & Magazines 13
Coins & Notes 66
Most bought ‘travel’ products are
Cars, Bikes & CVs (Accessories) 16
 Everything Else 13
train tickets and air tickets Tools & Hardware 23
Musical Instruments 59
Movies & Music 5
Collectibles 19
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation
Study (4000+ sample of online non-travel buyers) – JAS 2011

8. Credit Card – Still Nascent

9. 3 Others 1%
Unique Non-Travel Buyers per Quarter
Cash Card 1%
2.00
2
e-currency 3%
Rate of return
1.27
1.07 Cheque/DD on Delivery 10%
30 to 40%
1 0.62 0.64 0.68
0.41 Cash on Delivery 41%
Net Banking 42%
0
JFM'10
AMJ'10
JAS'10
JFM'11
AMJ'11
JAS'11
OND'10
Credit card 48%
Debit card 58%
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of
online non-travel buyers) 0% 20% 40% 60% 80% 100%
100%
Credit Card Ownership • Of the 13million around 2million unique people transact in any given month
80% Net Banking Users
• Credit card penetration among Internet users is relatively low and
60% remained stagnant
38% 38%
40% 29% 31%
• Users use on an average 2 mode of payments, ‘Cash on Delivery’ is growing
20% and throwing unique challenges
24% 25% 26% 25%
0%
2008 2009 2010 2011

15.  Factors affecting location
 Intended target market
 Type of products
 Suitability of site for customer access
 Characteristics of existing
retail operations
Three most important words in retailing:
Location … location … location!

16.  Consumers want convenience, a subjective measurement
 Convenience Measurements
- Distance - Parking
- Time - Traffic congestion
  = Convenience

17.  Free standing structure
 Central Business District (CBD)
 Shopping Malls (avg. age 23 yrs 2012)
- Neighborhood shopping center
- Community shopping center
- Regional shopping center
 Non Traditional Shopping Center
- Factory Outlets
- Mini warehouse mall

18.  Retail buyers must match their product selection, quality, price with
constantly changing consumer wants.
 Scrambled merchandising- adding unrelated products to generate traffic
& higher margins

19. - The retail store merchandise must change as consumer wants change
Product Selling Cycles
NB’s…..a relatively short term selling life cycle - (under 3 months)
DT’s….a relatively enduring selling lifecycle - (over 3- 6 Months)

20. Store
Location
Store
Store
Promotions
Hours
Store Store
Services Layout/Image
Store
Personnel

21.  The sum total of all store stimuli, interior & exterior
physical characteristics that appeal to emotions
(psychological field)
 Components: Ambient factors, Design and Social
Factors.
 Ambient Factors (Perceptions)
- lighting
- sounds
- smell

22.  Social factors: In store service (sales personnel social & emotional labor)
- Courteous  Rude behavior
- Knowledgeable  Low information
- Service  Insincere
- Employee dress norms (casual ??)
 Make it convenient & pleasurable for customers to shop and pay for
merchandise

23.  Personal Service Climate- Calls for a highly motivated,
experienced & well paid work force
- Retail jobs often pay poorly, are not challenging and produce high
turnover
Average length of employee tenure with retailers
7 - 12 months
8% 1 - 2 years
29%
30% 3 - 5 years
5 + years
33%
Estimates: 2012

24. Location + Merchandise + Services + Atmospherics + ?  Store Image
Advertising Medium(s)
Newspapers - Television - Radio - Magazine - Direct Mail -
Videos-Web

25. Price and Value
Quality and Selection of Merchandise
44%
Service 34%
Shopping Environment
11%
11%

26. Retailers Resellers
Exclusive Distribution Intense Distribution
Store Loyalty Brand Loyalty
High Markup +Volume Low Markup/High Volume
Love - Hate Relationship

29. Perusa Yusii