E tailing in Retail management

1. Etailing

2. E-tailing
Transactions that are conducted over an electronic network,
where the buyer and merchant are not physically present.
sale of goods and services through the Internet. Electronic
retailing, or e-tailing, can include business-to-business and
business-to-consumer sales.
Distinguished from content or service advertising revenue model

3. Types of E-tailers
Pure play e-tailers: It uses internet as its primary means of
retailing. Ex:www.fashion&you.com,
www.myntra.com,www.flipkart.com
Brick & mortar etailers: Stores which have physical presence
and uses internet to sell its goods & services.
Ex: www.futurebazar.com,

4. Models of etailing
Deal based etailers:These sites focus on providing lucrative
deals across product and service categories. e.g.
www.snapdeal.com
Club based –These sites position themselves as private
shopping clubs and are open to members only. Eg.
www.fashionandyou.com
‘Standard’ - This is the basic model wherein products are
listed on the web portal, and customers browse and buy the
products. e.g. www.flipkart.com
Marketplaces - These sites essentially bring together buyers
and sellers and serve as a platform for their interaction. e.g.
www.ebay.in

5. Drivers of etailing
Changing demographics
High real estate cost
Increasing penetration of technology
Increase in social media
Increasing disposable income
Multiple payment options
Availability of brands & private labels

6. Challenges of etailing
Higher cost of customer acquisition
Threat of cyber crime
Lack of touch and feel element
Reverse logistics
No bargaining/negotiation

7. Benefits of etailing
Highly discounted pricing
Better interfaces and delivery
High decibel media campaigns
Saves time and efforts
Convenience of shopping
Ability to compare prices and product

8. E- Tailing in India
India e-tailing market in 2011 was about $600 Mn and
expected to touch $9 Bn by 2016 and $70 Bn by 2020 –
estimated CAGR of 61%.
The organized retail market is estimated at $26 Bn and is
projected to grow to $84 Bn by 2016 and $200 Bn by 2020 –
estimated CAGR of 26%.
In 2011, total VC investments in e-tailing space in India stood
at $650 Mn.
China e-tailing market has grown from $20 Bn in 2008 to $120
Bn in 2011, and it is expected to reach $200 Bn by 2013. It
will be bigger than US e-tailing market ($188 Bn in 2008) in
next few years.

10. Players in Indian e-tailing
Indian e-tailing market leader is flipkart.com whose valuation
is $1 Bn.
Flipkart’s revenues were $10 Mn in 2010-11 and $150 Mn in
2011-2012. It’s >20% of Indian online retail market.
Flipkart is aiming to achieve $1 Bn in next 2-3 years.
Indian e-tailing is dominated by pure play internet companies
with no serious play by any existing retailers. Futurebazaar is
$35 Mn revenue today and Croma has recently entered e-
commerce