DIGITAL TRANSFORMATION

1. www.Peshwaacharya.com
thePeshwa@gmail,ckm
• Chief Marketing Officer - Sterling Holidays ( Thomas Cook & Fairfax Company )
• Founded : Thinkasconsumer.com, EazyFriday.com, Rocketperks.com , Leven.co.in .
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Peshwa Acharya

2. A
COMPANY

3. 3
Brands Built

4. The Digital
Transformation of
Business
The concept of Uberization
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5. Content is King
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6. e-Commerce
Inflexion Points
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7. e-Commerce is still Commerce
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8. Platform Creation
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9. Omni Channel
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10. App v/s Web
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11. Social Stores
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12. Future is AR/VR
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13. Chat Bots
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14. Appropriate Technology
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15. Offline v/s Online
Promo v/s Persuasion
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16. Digital Native Generation
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17. Digital Transformation in
Travel Industry
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18. Digital Transformation in
Logistics
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19. Value Creation
• Taxi business is extremely disorganised
• Ola, Uber, TFS and other competitors aim to organise this sector
Disorganised Value Creation Organised

20. Bridge the Gap
Demand Supply
Technology
App
Website
Call centre

21. Uberization
• Ola doesn’t own any of their taxis
• Prevents unionization, insurance and maintenance and asset
depreciation
• Very ‘asset-light’
Utilising Uber’s
business model

22. Uberization
Benefits:
• Prevents depreciation
• Reduces maintenance and running costs
• Prevents unionization
• Incites an entrepreneurial spirit

23. Housing
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24. $180 billion (INR 1.12 Lac Cr) Industry : CAGR 19%
Market Size of Real Estate in India ( $billion)
Real Estate Industry Size In India
As Per Google Study
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25. Role Of Internet In Buying Decisions
ZMOT is now a reality in online Real Estate buying 25
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26. Emerging Trends in Indian Real Estate
 Internet influence on real estate transaction value amounts $43bn
i.e. approx 40% of market
 The expected internet influence CAGR in 2014 is 25%
 Listings in top 50 cities were 2 lakhs (’12), 5 lakhs (’13) and 14 lakhs
('14)* growth of 250%
Influence of internet is rapidly increasing in Real Estate because of
convenience & greater options
As Per Google Study
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27. Role of Internet in Real Estate
Internet is a key influencer in Real Estate Research As Per Google Study
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28. Offline to Online Value Migration in Real Estate Business
SOUFUN (CHN)
Revenue : $638 mn
CAGR : 50%
Valuation : $4.2 bn
Online Real Estate Revenue Market Size:
US : $1.5 bn
UK : $ 750 mn
China : $850 mn
Australia : $500 mn
India Online Real Estate Revenue market size : $80 mn …. On The
Cusp Of Explosion
RIGHTMOVE (UK)
Revenue : $210 mn
CAGR : 20%
Valuation : $4 bn
REA (AUS)
Revenue : $300 mn
CAGR : 20%
Valuation : $5.9 bn
ZILLOW (US)
Revenue : $350 mn
CAGR: 69 %
Valuation : $6 bn
As Per Google Study
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29. Who
-Website Tour
How we do it:
-https://www.youtube.com/watch?v=_gVDIYxzVp4
Platform which connects Buyers
and Sellers for their
Real Estate/Property Needs
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30. All India Figures
Housing - 2X better in each parameter that matters
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31. E-COMMERCE IN INDIA Growth drivers for ecommerce —growing internet users
Source: KPMG
he words ‘retail therapy’ or ‘going
shopping’ were long associated with
physical, brick-and-mortar retail. But
Twith stores and brands going clicky
(websites) and appy (mobile apps) these terms
have already widened to accommodate online
shopping. Over the last couple of years, the
Indian ecommerce space has filled up with home-
grown players such as Flipkart, Snapdeal, and the
big daddy of ecommerce, Amazon. Online shop-
ping has captured the imagination and attention
of consumers, media, brick-and-mortar players,
brands, and of late, even the tax authorities and
the government.
Various studies estimate Indian ecommerce to
be about US$ 3bn as of now, which is just 0.8%
of the Indian retail market. However, this share is
expected to increase rapidly as more people shop
online. Of the 200mn people in India who access the
internet, 28-30mn (less than 3% of India’s population)
shop online. However, this number can move up to
touch 100mn by 2015 and a whopping 200mn by 2017,
which is the same as the number of Indian internet
users in India today. Nitin Bawankule, Director, Google
India Ecommerce, says that, “Even now, there at least
200mn people who can purchase online in India”. The
market is redefining itself rapidly as etailers advertise,
reach out, and offer deals and discounts to consumers.
So how big is the
Indian Retail market?
During GOSF 2013 (held overthree days in December
2013), over 60mn people visited online shopping sites
and 16mn unique customers shopped at the event.
Myntra.com claimed that it made over100,000
shipments for orders placed in those three days.
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Drivers of e-biz models: opportunities and discounts galore
Current online spending

32. What are Indians buying online?
Share of overall retail market, 2013
Online retail market-Category break-up (by value), 2014
Jabong has had the number of its unique visitors
double in the last 2 years
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Jabong’s category wise revenue-mix

33. Reports said that Flipkart sold over half
a million mobiles in just one day on its
Big Billion Day sale on 6th October.
Number of SKUs on offer by Flipkart
Large number of SKUs
on offer
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34. India’s online market comprises of various players
with different models. Players that retail pretty much
everything from electronics to FMCG products
follow a version of the ‘marketplace’ model. Amazon
and Snapdeal operate on this kind of a model where
their role is to facilitate the sale and fulfil it — that is
handle logistics, deliveries, and returns. In this mod-
el, the portals do not hold any inventory on their
books. Flipkart used to operate on a hybrid model,
where it held its own inventory and also acted as a
The categories, the
major players, and
business models
marketplace. However, it has now moved to a mar-
ketplace model, albeit with far lower sellers/vendors
than Amazon or Snapdeal, since WSRetail (erstwhile
Flipkart group company) still contributes a significant
portion of its sales. Vendors and sellers usually sign
up with these marketplace online retailers for a fee,
depending on the category.
Players such as Myntra and Jabong, which are
primarily apparel portals, have an inventory model.
They have moved to a hybrid market place, but it is
still skewed towards the inventory-led model.
Number of SKUs on offer by Snapdeal
Mobiles is a major
category here as well
Vendorsandsellersusually sign up withthesemarketplace
online retailers forafee,depending onthecategory.
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35. Online retailers: Different operating models
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36. Asone of India’s largest retailers puts it, “If it were net
of any of thesediscounts thenit should be callednet
merchandising value not GMV.”“If you don’t wantagood price,
wewill still offer you acoupon.”
Website traffic for Indian e-commerce websites and product offering
Portal Alexa
Rankings
for India
Categories Model No of Registered
users (mn)
No of
products on
offer (mn)
GMV
Rs mn)
Flipkart.com 5 Electonics,Apparel, Accessories,
Footwear, General Merchandise,
FMCG
Marketplace 22 15 15,000
Amazon.in 7 Electonics,Apparel, Accessories,
Footwear, General Merchandise,
FMCG
Marketplace 15 17 na
Snapdeal.co
m
10 Electonics,Apparel, Accessories,
Footwear, General Merchandise,
FMCG
Marketplace 20 5 30,000
Jabong.com 14 Apparel, Footwear and Accessories Hybrid 2.9 0.139 5,114
ebay.in 16 Electonics,Apparel, Accessories,
Footwear, General Merchandise,
FMCG
Marketplace 2.1 NA na
Myntra.com 30 Apparel, Footwear and Accessories Hybrid 1mn 0.05 4,000
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37. Key developments in 2014
The last year has seen several developments that have given a fillip to the eCommerce industry.
Mobile to be the most influential
aspect of eCommerce
With mobile apps being developedby most
eCommerce websites, smartphones are
increasinglyreplacing PCs for online shopping.
In 2013, only 10% of the mobile users used
smartphones, and only 5% of the eCommerce
transactions were made through a mobile
device. This figure has more than doubled, and
more than 13%of all eCommerce transactions
today happen via mobile3. According to some
industryplayers, over 50% of the orders are
being placed through mobile apps, which
is not only leading to substantial customer
acquisition but also building customer loyalty
for various brands. However, most mobile
transactions so far are for entertainment, such
as booking movie ticketsand music downloads.
This trend will change soon with more and
more merchandisebeing ordered online.
More business coming from smaller towns
eCommerce is increasinglyattracting customersfrom Tier 2 and 3 cities,
where people have limited access to brandsbut have high aspirations.
According to eCommerce companies, these cities have seen a 30% to
50% rise in transactions.
Enhanced shopping experience
Besidesgeneral online shopping, customers
are also shopping online for weddings and
festivals, thanks to wider range of products
being offered and aggressive advertisements.
The free and quick shipment and widerchoice
of products, along with the ease of shopping
online as compared to in-store shopping, is
also helping eCommerce gather momentum.4
Further, eCommerce companies are doing
rapid business due to sales.
New conceptssuch sales on weekends, holidays and festivalsare attracting a
3
IAMAI-IMRB
lot of new customersand building customer loyalty among existing customers.
Televisionand social media, particularlyFacebook, are playing a proactive role
in promoting eTailing through aggressive advertisements. This has helped
several eCommerce companies build substantial brand image.
4
Outlook 15: What Indian niche e-commerce companies plan to do in 2015, Medianama
http://www.medianama.com/2015/01/223-outlook15-niche-e-commerce/
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38. Exclusive partnerships with
leading brands
Over the year or so, there has been
a trend of exclusive tie-ups between
eTailers and established boutiques,
designers, and high-end lifestyleand
fashion brands. For instance, in 2014,
Jabong added international fashion
brandssuch as Dorothy Perkins, River
Island, Blue saint and Miss Selfridge,
along with local fashion brandsthrough
Jabong Boutiques. Similarly, Myntra
benefited from exclusive tie-ups with
brandssuch as Harvard Lifestyle,
Desigual and WROGN from Virat Kohli.
Expanding the product
basket
There is a recent trend of relatively
newer productssuch as grocery,
hygiene, and healthcare products
being purchased online. Similarly,
lingerie and Indian jewelleryhas
also been in great demand among
customersoutside India. Export
comprises 95% of cross-border
eCommerce, with the US, UK,
Australia, Canada and Germany
being the major markets.5
Key market factors to be evaluated before
entering a new eCommerce business
To achieve their vision, eCommerce companies will need to
understand the intricate landscapeof new marketsin
addition to their own internal capabilities and limitations.
The following factors must be considered:
• Market size: Before moving too aggressively into a new
market, it is important to consider how sizable the overall
opportunity is.
• eCommerce readiness: It is essential to fully
understanding the payment and logistical infrastructure,
consumer behaviour, retail opportunity and technological
developments.
• Scope of growth: It is also important to look at the
internet penetration, demographics of the online buying
population and understand which phaseof development
each market is in.
• Barriers to entry: Playersshould understand the
regulatory environment and connect with solution
providers, content distribution networks, and digital
agencies.
• Competition: There is also a need to do an in-depth
assessment of what competitorsare doing, their online
strategy and the nature of each offering.
4
The Paypers, Netherlands-based leading independent source of news and
intelligence for professionals in the global payment community
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39. BUILDING NEW BRANDS
PESHWA ACHARYA

40. PESHWA ACHARYA | Brand journey
• CMO – Sterling Holidays (a ‘Thomas Cook’ company )
• Former CMO – Reliance Retail, Housing, Reliance Mobile , Vodafone
• Founded : Leven , Rocketperks, EazyFriday , Think As consumer .

41. Pointers
1. Tricks to Building young ‘Challenger brands’
2. Brand Communication is dead .It is all about Brand Experience .
3. Identify Offline online convergence

42. The Power of Platforms
Changed the way we socialize
Changed the way INDIA shops
Changed the way we search
Changed the way INDIA travels
Changing the way we do Real Estate
As Per Google Study
Valuation $341 bn
Valuation $212bn Valuation $19 bn
Valuation $2 bnValuation $11 bn
Valuation $ 150 mnValuation $ 1 bn
Valuation $250 mn
Platforms Command Valuation 42
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43. 4
3
MODULE 1
Challenger Brands

44. 4
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ARIEL Detergents
Challenging established players like RIN & SURF, the brand was able to quickly garner market share
with its innovative product launches and marketing campaigns
• Launched ‘Testimonial advertising’ with Regional Voices
• Launched a LPU Sachet SKU
• New Concept: Ariel microsystem= Detergent bar + Powder + Blue

45. 4
5
BABOOL Toothpaste
A relatively new player in a market dominated by Colgate, Cibaca etc, Babool launched a fighter SKU at
Rs 5 and was able to increase market share from around 4% to 7.8% in less than a year (1 percentage
point = 25r)
• A Rs 5/- LPU Tube pack: First time in the Oral Care market
• Innovative promos: 1+1 Offer, Toothbrush bundled offer
• Geographic focus in rural semi urban
https://www.youtube.com/watch?v=f-btqaJ40RI

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6
RELIANCE Mobile
Fighting in a cut throat competitive market, Reliance Mobile focused on DATA as a key
differentiator along with actress Anushka Sharma as a celebrity endorser to increase its market
share, also helping create a ‘Younger’ brand positioning .

47. 4
7
HOUSING.com
In a market dominated by Magicbricks, 99acres etc- campaigns focused on ‘House hunting’,
Housing launched a different campaign with ‘Optimism’ as the theme and was able to move the
goalposts.

48. 4
8
MODULE 2

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RELIANCE DIGITAL, from Reliance Retail became India’s biggest Electronics Retailer by focusing on 3
consumer experience segments:
1) Reliance Digital: Offering a large retail store experience
2) Digital Xpress: A personal experience with ‘Experience Zones’ inside
3) DX Mini: A small neighborhood Mobile & Accessories store
RELIANCE DIGITAL

50. 50
APPLE
APPLE, widely recognized as among the world’s best marketers, create a differentiated experience
inside the Apple brand stores where customers can experience the brand and its innovative
products themselves without any assistance

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INDIGO Airlines
INDIGO Airlines attacked a big impediment associated with Air travel- ‘Flight delays’ and focused
painstakingly at being punctual. They also coined a term ‘Indigo Standard Time’ to communicate
this claim effectively

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The Oberoi hotels, known for their ultra luxury hotels, offer a personalized experience to their
guests in the form of a personal guide to maintain a unique and luxury brand experience vis-à-vis
other luxury hotel brands
Oberoi Hotels

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MODULE 3
Omni Channel Integration

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HOUSING.com Centres
HOUSING.com a primarily digital real estate search portal, extended their services through an
Offline channel ‘Housing Centres’. At these retail outlets located mostly in Tier2 cities, customers
can visit and get an experience similar to the online portal as well as coordinate with Brokers,
Builders etc

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LENSKART
Lenskart, a successful e-commerce brand in eyewear, launched their own retail stores for
customers to try glasses and get their eyes checked. These stores also double up as delivery & pick-
up points for online orders if the customer so wishes

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APPS DAILY
Apps Daily, an App brand turned the practice of App downloads on its head by launching consumer
packs containing app links and selling them across the counter through Consumer Electronics retail
stores

57. www.Peshwaacharya.com
Peshwa@thinkasconsumer.com
peshwa.Acharya@sterlingholidays.com
thepeshwa@gmail.com
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