E-retailing in India - identification of value parameters, need gaps, diversification, insights

1. E-Retailing
Akshat Jain
Pratik Changede

2. E-Retailing Findings
• Research Results
• E-Retailing Insights & Trends
• Diversification Trends
• Segmentation Matrix
• Value Parameter Need Gap
• Advertising - Need Gap
• Need Gap
• Innovative Concepts - Need Gap

3. E-Commerce India – Projection & Overview

4. E-Commerce India – Projection & Overview

5. E-Commerce India – Projection & Overview

6. E-Commerce India – Projection & Overview

7. E-Commerce India – Projection & Overview

8. E-Commerce India – Projection & Overview

9. E-Commerce India – Projection & Overview

10. E-Commerce India – Projection & Overview

11. E-Commerce India – Projection & Overview

12. E-Commerce India – Projection & Overview

13. Primary User Survey
• 15 value parameters
• 78 questions in total to obtain a good cronbach alpha
Source: Primary User Surveys

14. Survey Value Parameters & Cronbach Alpha
Cronbach Alpha for
S.No. Value Parameters each Value Parameter
1 Security of Transactions 0.8068
2 User Interface Design of Website 0.8097
3 Flexible payment options 0.7971
4 Full cost disclosure (transparency) 0.7952
5 Quality of products delivered 0.8608
6 Return policy of products 0.8228
7 Response time of website 0.8471
8 Product Tracking and Delivery Time 0.6649
9 Discounts & Daily Deals 0.7798
10 Customer support 0.7411
11 Efficient Payment & Check out
process 0.6541
12 Packaging
0.8730
13 Multiplatform accessibility 0.7652
14 Rating and Reviews 0.7046

15. Sample Anova [Flexible Payment Options | Students & Working Group]
Source: Primary User Surveys

16. S.no. Value Parameters Students (18-24years) Working People (25-30 P-value
years) (level of
Research significanc
e of
Students/Working People ANOVA)
Mean Standard Mean Standard
deviation deviation
1 Security of 4.7000 0.3679 4.4588 0.5602 0.059
Transactions
2 User Interface Design 4.3143 0.5268 4.0924 0.6408 0.179
3 Flexible payment 4.3964 0.5389 3.8403 0.5974 0.001
options
4 Full cost disclosure 4.6563 0.3827 4.1618 0.6246 0.100
5 Quality of products 4.7950 0.3522 4.6706 0.5654 0.317
6 Return policy of 4.7250 0.4499 4.6000 0.6000 0.390
INSIGHTS?? 7
products
Response time of 4.3125 0.5904 3.7941 0.9153 0.013
website
8 Product Tracking and 4.4500 0.4641 4.2794 0.6243 0.258
Delivery Time
9 Discounts & Daily 4.0667 0.6513 3.6667 0.4410 0.025
Deals
10 Customer support 4.4350 0.4812 4.1412 0.6032 0.056
11 Efficient Payment & 4.3917 0.5842 4.2549 0.5955 0.425
Check out process
12 Packaging and 4.6813 0.5280 4.3382 0.7123 0.049
delivery
13 Multiplatform 3.8429 0.5893 3.2521 0.7311 0.002
accessibility
14 Rating and Reviews 3.9375 0.6349 3.8382 0.7803 0.616
Source: Primary User Surveys

17. S.no. Value parameters Male Respondents Female Respondents P-value (level
of
Research significance
of ANOVA)
Men/Women
Mean Standard Mean Standard
deviation deviation
1 4.6634 0.4414 4.4211 0.8509 0.150
Security of transactions
2 4.2578 0.5451 4.1504 0.7071 0.521
User Interface Design
3 4.1812 0.6365 4.1429 0.7331 0.837
Flexible payment options
4 4.5183 0.5712 4.3553 0.8871 0.395
Full Cost Disclosure
5 4.7950 0.3522 4.6706 0.5654 0.317
Quality of products
INSIGHTS?? 6
Return policy of products
4.7000 0.4664 4.5474 0.9216 0.396
7 4.1280 0.7809 4.1316 0.7282 0.987
Response time of website
8 4.4268 0.4751 4.2237 0.8854 0.251
Delivery time and
Tracking
9 3.8537 0.7343 3.8772 0.6451 0.905
Discounts and Daily
Deals
10 4.3659 0.5566 4.1474 0.8611 0.242
Customer Support
11 4.3984 0.5687 4.1404 0.9116 0.185
Payment and Check out
process
12 4.3073 0.5798 4.1895 0.7731 0.514
Packaging and Delivery
13 3.6433 0.6426 3.4737 0.6790 0.354
Multiplatform Accessibility
14 3.9268 0.6988 3.6842 0.7446 0.225
Source: Primary User Surveys

18. Primary Survey Insights
• Lazy people prefer this. Due to climatic conditions people prefer
• They want to avoid long queues in festive times
• People want mobile apps, they want to access through mobiles in locals
• Tablet owners are using and enjoying e-retailing through tabs
• Most people prefer COD. They want to touch and feel the product first
• People want methods which can reduce the gap between virtual and real shopping
• Retired people spend a lot of time on the online shopping websites.
• Buyback schemes
• Order backup by call, SMS (users preference)
• Generally people avoid making online payments in cyber cafe
• Conditions apply*****
• People are buying what is being liked by their friends
• They want the product delivery within a day
• Lack of trust
• Want simple looking well arranged website design
Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research

19. E-Retailing Insights
• E-Retailing will grow w.r.t bad climate
• E-Retailing will grow w.r.t Festivals (also Black Friday, Cyber Monday etc.)
• Need of Mobile applications, Mobile websites (lite versions)
• With Amazons Kindle, tablets, multiplatform accessibility rising
• Need of Cash on Delivery, Free Shipping and Teleshopping
• Integrated channels growth : Click & Collect, Internet-Transaction enabled TV
• Cross border E-Retailing will develop more rapidly
• Virtual shopping  Real shopping experience (Location based deals, price
comparison, reviews, recommendations, social media role) provide fans with
a positive experience, keeping the social aspect in focus, evolving from just
liking and commenting on products. Magazine Voce
• For the youth concept  For everyone
• Touch n Feel  Enhanced Experience [via videos (ASOS website, Australian)]
Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research

20. E-Retailing Insights
• Art of Advertising – mainly via social media/sponsorships
• Analytics/location based personalized marketing
• Earn Points on purchase/mint cards
• Hundreds of online retail websites coming in to picture.
• Direct Marketing/Affiliate Marketing
• Implementation of Advanced Payment Methods – NFC, eWallet, Google
Wallet, Mobile wallet, Wire Transfer, Part payments, payment via machines
on COD, EMI, credit card capture
• Not just small things but expensive things like cars, jewelry etc. will also start
selling online on a large scale.
• Reducing the lead time. Opening of new warehouses and building
logistics/analytics
• Websites will focus on User Interface Designing
• BestBuy eWaste. Such schemes will come up.
• Rising Investors (Bollywood)
Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource/comScore/e-dialog/Monetate/cyber media research

21. Need Gap
• E-Retailing Kiosks machines like ATMs
• Pre-installed e-retail applications with new mobile phones
purchased
• QR Code integration – Spontaneous shopper (Tesco)
Print ads, posters with QR codes and promotional codes. Scan it
to purchase. Also pay the bills.
• Payment via Mobile phone balance
• Payment via finger prints/Facecash
• Cash Before Delivery
• Payment on Website = Payment on Delivery
• Myntra, Inkfruit: dynamic T-Shirt advertising
• Sharing the liked product link or image with friend or relatives
Source: Primary User Surveys

22. Kiosks
Source: Primary User Surveys

23. Diversification Insights
• Players to have their own physical stores and logistics. Ex Flipkart
• Courier services
• Payment Gateway Business:
90% of people visiting a site walk away without transacting, and
another 5% are unable to transact because of payment gateway issues.
Snap Deal , Mr Tony Navin, Vice-President
• Dedicated TV shopping channel
• eBook Reader | Amazon – Kindle Fire
• NDTVShopping.com (its powered by Infibeam) and with other big retailers like
HiDesign. Thus company provides e-commerce platform, supply chain and
associated infrastructure as a service to large retailers and brands in India:
Mr Vishal Mehta (CEO, Infibeam)
• Setting online business for other retail shops. Ex. Infibeam’s buildabazaar
Source: Primary User Surveys/Fact Finder/Forrester/ fourthsource

24. Innovative E-Concepts Need Gap
Existing but can multiply
• Freshsubzi.com: vegetables, south delhi (1 lakhs)
• Carwashwale.com : car washing, NCR (3 lakhs)
• EasyFix.in: carpenter, plumber, electrician, delhi (2 lakhs)
• Theshoespa.in: Shoe repair and coloring (1 lakh)
• BelitaIndia.com: door to door beautician services, mumbai nagpur (6 lakhs)
• Kabbs.in: pets spa, chennai (3 lakhs)
• Storemore.in: stores goods @ 1 per day, NCR region
• Yummytiffins.com: serving dabbas, mumbai (4 lakhs)
• Rental websites-books (librarywala.com, 10 lakhs), bags, Jewellery, accessories, bridal
wear others
• Food at night
• Evolvex
May Come
• DailyDairy
• Online pharmacy
• Buyback based websites, rental based (Toys)
• Raddiwala
• Cloths on rent (santa, krishna)
• School material, uniforms online
Source: Primary User Surveys

25. Advertising Need Gap
• Simplicity
• Security
• Discounts
• Comparison Shopping
Ex: Original Products Original Warranty/No Kidding No Worries/We work with a
simple belief/Earn by delivering/hot deals/discounts/better prices
• Climate factor: Bad weather’ boosts ecommerce activities. Insights were gathered
by combining web analytics and weather data. Data from web analytics has been
correlated with temperature and cloud cover. Have mobile apps for other seasons.
• High fuel prices (cost saving): Leads to an increase in ecommerce sales as people
look to save a by shopping online. Carnegie Mellon's Green Design Institute
estimate fuel costs can be reduced by as much as 35% through the use of e-
commerce.
• Best for the old age people
• Purchase products on pajamas laying lazily on bed
• Green Issues
• Time Saving
• Real Shopping Experience
Source: e-dialog/http://darksinistar.hubpages.com/hub/25-Tips-for-Saving-Fuel-Saving-Gas-Means-Saving-Money

26. Front End – Connecting Users

27. Television advertisement
Flipkart.com Flipkart.com

28. Delivery boys bag
T-shirts & other merchandise

29. Carry bags
Packaging

30. Sponsorship

31. Mobile applications
Promotion SMS’s

32. Wallpapers and Screensavers

33. Social works

34. Via TV Channels
Via ads in Movies

35. Segmentation Matrix
School Children 5 4 4 4 3 4 3 4 4 5 3 3 3 5 3
College Students 5 5 5 4 4 5 5 5 5 5 5 4 5 5 5
Working Men 5 3 4 5 5 5 5 4 5 5 5 5 3 5 4
Working Women 5 4 4 5 4 5 5 4 4 4 4 3 5 4 4
Non Working Women 5 4 4 4 5 5 5 3 3 5 4 3 5 4 3
Non Working Men 5 3 3 5 4 5 4 4 3 5 5 4 3 4 4
Old people 5 4 4 5 3 5 5 4 4 5 5 4 5 4 2
Source: Primary User Surveys

36. Segmentation Matrix
School Children
College Students
Working Men
Working Women
Non Working Women
Non Working Men
Old people
Source: Primary User Surveys

37. Value Parameters Need Gap
• Security of Transactions • Packaging
• User Interface Design • Multiplatform accessibility
• Flexible payment options • Product Delivery Lead time
• Full cost disclosure
• Privacy of personal information
• Quality of products
• Return policy of products
• Response time of website
• Delivery Time & Tracking
• Discounts & Daily Deals
• Customer support
• Efficient Payment & Check out
process
• Rating and Reviews
Source: Primary User Surveys

38. Strategy Canvas – New
10
9
8
7
6
5
4
3
2 Inkfruit
1 Homeshop 18
0 Amazon
Ebay
Flipkart
Source: Primary User Surveys

39. E-Retailing Findings
• Naaptol Sales : Contains 45% of refurbished goods
• Retail : Smell Advertising
• For gifting : Billing and Shipping Address
• Shopping Cart Abandonment
• Flipkart : 3 step payment process
• PC-broadband is an important factor for driving growth in e-commerce
• Increase in online businesses, so automatically increase in number of
entrepreneurs
Source: Shashank Singh (AM Infinity Retail, CROMA), DMAGICS, Avendus Analysis – India Goes digital

40. ThankYou

41. Strategy Canvas – Old
10
9
8
7
6
5
4
3
2 Inkfruit
1 HomeShop18
0 Amazon
Ebay
Flipkart
Source: Secondary Surveys

42. Online Shop - setup charges
Rs.
E-Retailing establishment costs
Web development 10,000
Preliminary research
Staff training
Database Integration
Advertising
Domain name registration
Hardware - Computer
Total establishment costs
Source: Primary User Surveys

43. Online Shop - setup charges
Rs.
E-Retailing establishment costs
Web development 10,000
Preliminary research
Staff training
Database Integration
Advertising
Domain name registration
Hardware - Computer
Total establishment costs
Source: Primary User Surveys