digital retail
DESCRIPTION
Digital Retail Market scenario in IndiaTRANSCRIPT
Digital RetailKey opportunities & challenges
500-700 Mn Mobile users
50 to 80 mn Internet users
India 4th largest Internet users
Mobile internet on
the rise
Broadband : Annual
growth rate > 60%
Internet Size in India
Small revenues
significant eyeballs
Total English
print media readership
50 mn
Internet penetration
> 10% in some states
3G etc > A leap sooner
than we expect
Internet Size in India
eCommerce:: some facts
Travel
More than 50,000 people
flying daily using tickets bought
through the Internet
Close to 3 lac tickets sold by IRCTC online
every day
SnapDeal: $ 12 Mn funding
SoSasta: Acquired by
Groupon
Letsbuy - $6 Mn
Taggle - $8.75 Mn
Fashionandyou - $ 8 mn
Group buying / Coupon/ Deal sites
BuzzinTown expands into deal a day
Almost 5k transactionsdaily amongst 15+ players
Why is the space becoming exciting
Gen next growing with all round presence of
Internet > homes + schools.
Nuclear Urban families. Huge
paucity of time > pre shopping
research online
Online connectivity increasing, > more people spending increasing time
online
Social media > paving way for
social commerce
Are we on an inflection point in eCommerce?
More propositions,
deals, convenience
spurring people to buy online
Consumer’s habits are changing
rapidly
imperative to be present where the consumers want to look for them and in the manner in which the consumers want to engage with them
Are we on an inflection point in eCommerce?
There cannot be any debate on the
importance for Brands to be available online
The question is Will the brands be available when they are
ready to buy online?
An analysis of 14 Brands / Retailers
6 out of 8 Brands that did not have
their own ecommerce enabled site
were selling their products on some other
shopping portal.
More than half of them did not
even have their own ecommerce enabled website!
Where are the retailers?
Indian retailers:Snapdeal:35
eBay: 53BigBazaar:
40,695ShoppersStop:
1,534
USA: eBay: 8th
Amazon: 9th Wal-Mart: 45th
BestBuy: 52nd Target: 63rd
Groupon: 94th
So what is holding back the retailers foraying into e-
commerce?
MINDSET
Promotion – Traffic/ customer acquisition
Online Advertising Gateways available
And we can measure... at each STEP!
Evaluate based on life time value of user/customer
Online Advertising Gateways: SEARCH
Search – Big..Bigger....Biggest
Natural/ SEO PPC
PPC
SEO
Natural/ SEO
PPC
Source: Yahoo! Research report on Characterization of Online Search Behaviour
Online Advertising Gateway: Affiliate
Online Advertising Gateway: Display
Online Advertising Gateway: Social Media
Use online as a customer acquisition medium for offline stores / business
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