Presentation for leading retailers of India at Delhi Retail Summit 2012 to educate them on Ecommerce and Online Retail.

1. Opportunities & Challenges of
Online Retail.

2. Iksula Managed Ecommerce Services.
and many more..

3. Main Index.
1. Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------
1.a. Introduction to Online Retail ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.b. Online Retail in USA ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.c. Current Retail Industry in USA ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.d. Online Retail in India ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.e. Online Retail Market Size ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.f. Challenges in Pure-Play Online Retail ------------------------------------------------------------------------------------------------------------------------------------------------------------
2. Online Retail Operations -------------------------------------------------------------------------------------------------------------------------------------------------
2.a. Building blocks of Online Retail -------------------------------------------------------------------------------------------------------------------------------------------------------------------
3. Future Interesting Innovations -------------------------------------------------------------------------------------------------------------------------------------------
--

4. Effects on Retail Purchase Decisions with Ecommerce.
What's happening.
Store 1
Store 2 Store 1
Store 1
Store 2
Search
Engines
Targeted Ads
Store 1 Online
Website
Store 1 Online
Website
Purchase Decisions have got very informative but very
complicated for retailers.

5. Why are people choosing Online Retail ?
The Reasons remain the same over years.
E retail Consumer Value Proposition.

6. Online Retail :: Online Retail in USA ::
WHAT HAPPENED IN THE US ??

7. Online Retail :: Online Retail in USA :: History of Online Retail US. ::
Online Retail boom started in 1994 in US.
2
41.6 %
17
6.0 %
18
16.0 %
29
5.6 %
118
4.9 %
24
8.9 %
20
8.4 %
57
11.6 %
53
7.8 %
Source: Internet Retailer „10
Launched macys.com in 1997.
Launched jcpenney.com in 1994.
Launched gap.com in 1997. Launched toysRus.com in 1998.
Starts victoriassecret.com in 1995.
Launched staples.com in 1997.Launched ae.com in 1998.Launched staples.com in 1996.
Launched staples.com in 1998.
WEB SALES AS A % OF TOTAL SALES
INTERNET RETAILER TOP 500 RANKING
Within 4 years all major stores went online.

8. Online Retail :: Online Retail in USA ::
Retailers entering online space and dominating the online retail space.
But Amazon.com (a pureplay) still remains the market leader….
Source: Internet Retailer US

9. Convenience
Hard To Find
Price
Online Retail :: Online Retail in USA ::
Proposition of Online Retail in US.

10. Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Convenience : The Consumer Proposition.
Convenience
Books, Music,
Movies,….
Sit @ Home
and Get it
Selection
Deep
Research
Value Proposition , Categories and Formats.

11. Hard to Find
Antiques, Coins,
Radio Controlled
Toys ….
C2C Commerce
Cannot get it
Anywhere Get it
here
Local became
National with
second hand goods
Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Hard to Find: The Consumer Proposition.
Value Proposition , Categories and Formats.

12. Inventory Clearance
Discount
Price
Electronics,
Computers,
Price Discovery
Auction, Volume
Aggregation
Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Price: The Consumer Proposition.
Value Proposition , Categories and Formats.

13. Online Retail :: Online Retail in USA :: Share of revenues by Category. US ::
Detailed Category Division. US.
Source: Internet Retailer.US 2011

14. Online Retail :: Online Retail in USA ::
The Growth and Share Story…..
“Lets hold the plans to open another two retail stores, lets invest
the same capital to build a online web store for „GLOBAL‟ sales”
…a top US offline store.

15. Retail versus Online Retail.
Online Retail :: Online Retail in USA ::
Case Study.

16. Walmart. vs Amazon.
Round 1. Market Performance.

17. Walmart. vs Amazon.
Round 2. Products & Prices.
Food For thought
If the cost of monthly shipment and cost of trips to retail shops equals Amazon
would always be cheaper and occupy the pricing proposition completely

18. Walmart. vs Amazon.
Round 3. Brand Performance.
Amazon by proving higher brand ranking and customer service has proven that
this model can deliver to consumer expectations

19. Walmart. vs Amazon.
Round 4. Expansion & Innovation.

20. Walmart. vs Amazon.
Projected Revenue.
Key Take Away
•Amazon is projected to surpass
Wal-Mart in sales revenues in the
year 2024.

21. Online Retail :: Online Retail in USA :: Trends to Watch for ::
The “Store Killer” App.
Customers researching offline but buying online.

22. A few category retailers in US. shut down stores as
unable to compete with online retailers & competitors.
Online Retail :: Online Retail in USA :: Trends to Watch for ::
Online Retailers have affected a few industries very hard…..

23. Online Retail :: Online Retail in USA :: Managed Ecommerce Solutions ::
A Lot of Retailers opted with outsourcing it to Managed Services Companies.
A lot of retailers opted to outsource the area of non competence
and left it to a specialist.
GSI Commerce® is a leading
provider of ecommerce and
interactive marketing services
for the world’s premier brands
and retailers.

24. Online Retail :: Online Retail in India
WHAT’S HAPPENING IN INDIA ??

25. Online Retail :: Online Retail in India ::
Traditional Retailing Scenario in India.
3. The Product Advantage
Though the range of products sold by them is
only limited, they have the advantage of
selling in small denominations which majority
of the customers favor.
This keeps them the most understanding retailer
than the modern retail.
1. The Location advantage
Grab it from the next door shop is always
possible as the spread of traditional store is so
strong.
This is one advantage which the modern
retailers would be interested in adapting.
Almost every street in the country has a retail
identity.
2. The Familiarity Advantage
The traditional retailers are the familiar
one to generations.
Interestingly, this familiarity leads to building the
strongest relationship as well as the trust
mutually.
4. The Credit Advantage
Another interesting area is that they offer
monthly credit to the customers.
“This not only helps the salaried class but also it
relieves our worries for keeping the change
ready every time we purchase”.

26. Online Retail :: Online Retail in India ::
Indian Retailers getting into eRetail.
fulfillmntcust carecontenttech mkting
Offline Retail Online Retail
Store retailers are now getting into online retail as consumers are moving
online.

27. Online Retail :: Online Retail in India ::
Online Retail Market Size in India.
The market is growing significantly but early days.
Online Retail is still very small percentage of
the ecommerce pie and significantly under
penetrated in comparison to US Market

28. Online Retail :: Online Retail in India ::
Products Bought Online within and across the world.
Source: Ebay Reports
The Impact of E-retail is increasing across geographies
and product lines

29. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Heavy Competition::
429+ significant players now operating…
and many more….
Source : Iksula Consulting

30. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Taggle.com story ::
“It Also Happens in India”
Seems like a last man standing game has
started in pure play internet retailers.

31. Online Retail :: Online Retail in India ::
Indian E-Retail Landscape: A Summary.
Vertical
Source : „India Goes Digital‟ - Avendus

32. Online Retail :: Online Retail Operations.

33. Online Retailing.
technology content marketing
fulfillment cust care
But what you see is just the tip
of the iceberg.
Seems easy and quick to build.

34. Online Retail :: Online Retail Operations.
Building blocks of E-Retail.
tech
mkting
fulfillmnt
cust care
Front End Back End
Customer 4
content
2
3
1
5
Order Sent
Order Fulfilled
Key Components of Digital Retailing

35. Ecommerce in the Future.

36. Online Retail :: Future of Ecommerce :: M-Commerce ::
Mobile Commerce.
Mobile App
At present, there are over 500 million mobile subscribers in the country.
By 2015, $350 billion in payment and banking transactions could flow
through mobile phones.

37. Future of Ecommerce :: Innovations :: T-Commerce. ::
Commerce on Tablet PC’s.
Aakash tablet
Only Rs.2,500 – 2,999
•The Ubislate website accessed 2012-02-07 informs that a lakh Ubislate 7+ devices
are being pre-booked each day.
•There is an additional requirement of 22 crore units of tablets.
Aakash tablets will boost mobile commerce in India.
Ecommerce on
Tablet PC

38. Social Shopping

39. Future of Ecommerce :: Social Shopping ::
Buying with Approval, Kaisa Lag raha hain?
Instant show and Tell.

40. Future of Ecommerce :: Social Shopping ::
What do my friends like? Peer Acceptance is
Key in Shopping Process. Isn't it ….
Instant show and Tell.

41. Innovations

42. Future of Ecommerce :: Innovations :: Payments ::
Ease and Payments at a Click of a Button.
New innovative payment solutions.

43. Future of Ecommerce :: Innovations :: Extra Convenience ::
Using the digital platform to offer in-store experience.
Efficient Selling.

44. Future of Ecommerce :: Innovations :: Improving Suggestions ::
How Service Retailing can use Digital ……..
Efficient Selling.

45. Thank You
Feel free to contact us for further queries
samar@iksula.com