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ELECTRONIC RETAILING

Group Members:Lija

Manzoorul

Nishad

RavishankarRinil


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INTRODUCTION

The e-retailing is the concept of selling retail goods using

electronic media, in particular, the internet.

The term coined in early 1995 seems an almost in evitableaddition to e-mail, e-business and e-commerce.

E-Retailing stores sell online promotion only for goods that

can be sold easily online, e.g., Amazon did for Books & CDs,etc.


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The online retailing require lots of displays and specification

of products to make the viewers have a personal feel of the

product and its quality as he gets while physically present in ashop.

e-Retailing is synonymous to B2C business model that

executes a transaction between businessman and the finalconsumer.

Electronic retailing or e-tailing, as it is generally being called

now, is the direct sale of products, information and servicethrough virtual stores on the web, usually designed around an

electronic catalogue format and auction sites.


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Essentials of E-Retailing

Attractive business-to-consumer (B2C) e-commerce portal

Right revenue model

Penetration of the Internet


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Advantages of E-Retailing

The electronic channel gives the existing brick-store retailers

an opportunity to reach new markets.

For the existing retailers, it is an extension to leverage theirskills and grow revenues and profits without creating an

altogether new business.

E-Retailing overcomes some limitations of the traditionalformats, for instance the customers can shop from the comfort

of their homes.


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The e-commerce software that also traces the customers

activities on the Net enables e-retailers to gain valuable

insights into their customers shopping behavior

The e-retail channels transcend all barriers of time and

space. The retailers server must be on 24*7. An order can

come from any customer living any place at any time of theday.


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Shortcomings of e-retailing

It lacks an emotional shopping experience that the customercan get in a personal shopping store.

It being container of intangible merchandise (i.e., virtualdisplay of merchandise) does not provide sensory support tothe customer, these the customer cannot hold, small, feel, ortry the product.

On line customers are reluctant to part with their credit carddetails on net, fearing they may be misused. It arises securityissues. The customers are not yet convinced about thefoolproof status of this method, especially in Indianenvironment.

It is lacking in family shopping experience which the Indiancustomers enjoy at the weekends, and particularly duringfestive seasons and marriage marketing.


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Success factors for e-retailing

The important factors are:

Strong Branding

Unique Merchandising Competitive Pricing

Better CRM

Better Distribution Efficiency

Soothing Website Design Transparency in Services.


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Challenges of E-Retailing

Unproven Business Models

Requirement to Change Business Process

Channel Conflicts

Legal Issues

Security and Privacy


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E-catalogue

E-Catalogue is a database of products with prices and

available stock

It is a form of non-store retailing in which retail units inform

prospective clients about their merchandise or service through

mails.

Catalogue retailing is of two types: general merchandise-

catalogue and specialty-catalogue retailing.

Catalogues are differentiated in to two based on their target

audience : consumer and business to business.


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Advantages of catalogue retailing

Customers can shop when it is convenient for him.

Saves resources on account of time and travelling cost.

Relevant product information is available in detail.

There is space for unlimited product display.

Catalogue hallows for low overheads and reduced cost of

sales.

The marketer has total control of the selling process.

Modern direct marketing techniques allow prospective clientsto be targeted based on their known interests.


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Web Market Characteristics

Technology Infrastructure

Channel Integration

Information Intensity


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Technology Infrastructure

Web Opens a new space for retailing

Customers can visit virtual stores, browse through product

offerings, and place orders as they do in traditional stores

Web technology supports market features inexpensively, such

as 24x7 availability, fewer/no geographic boundaries,

interactive two-way communication, search facilitation andinformation/knowledge sharing


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The availability of information gathered through customer

interaction allows marketers to produce business intelligence

to better support their customers

Developing and employing new technologies and applications

may provide marketers with new business opportunities and

advantage


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Channel Integration

The powerful integrated environment of the Web can affect the

marketplace in many ways

Consumer orders can be automatically processed and routed tosuppliers

Information channels are integrated, with information flowing

both ways between vendors and customers


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Compared to information push from marketers to customers

through traditional media such as television, the Web is a

"pull" medium where customers purposely search for desired

information.

The integrated Web channel also facilitates consumer

interaction and favors interaction marketing


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Information Intensity

The Web is a truly information-intensive environment

Vast amounts of information can be collected, integrated,

processed, presented, and accessed through the Web by bothmarketers and consumers

Marketers now can track detailed information for all e-tailing

consumer interactions, not just select samples


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Comparison of web and traditional

retail marketsWeb Market Traditional Market

Technology is a determinant for

market development

and business strategies

Serves as a supportive

tool

Channels Integrated Separate

Market Information Intensive Limited


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Practices in Online retailing

1) Go to the buyers

Quickly and cost effectively gain access to and capture

qualified customers

2) Optimize Home page DesignYour home page allow visitors quick access to purchase

options

3) Content Partnerships

4) Excellent Store Locator

5) Good Customer support options


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Consumerism

Activities of consumers and other consumerorganizations aimed at protecting rights of theconsumers.

Countervailing activities against maxim of caveatemptor.


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Ethical and green consumers

Consumer whose purchase is influenced by ethical believes

such as animal welfare, etc

Eg. Body soap

Green consumers are in line with environmental movements


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Environmentalism

Protection of the environment resulting from:

-Production

-Distribution

-Marketing activities

Retailers responses to environmental concern:

1. Related to product: eg. Safeway

2. Related to retail operations


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Cont.

Retailers environmental initiatives:

3 R s

Reusing

Recycling

Reducing


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Ways:

Recycle paper, plastic, aluminum, ink cartridges.

Reuse packing materials and cardboard boxes.

Use double-sided printing when possible.

Reduce paper transactions by going digital for bill

payment, vendor ordering, invoices, online banking, e-

mail and faxing directly from your computer.

Keep up with regular maintenance of all mechanical

equipment.


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Cont.

Eliminate disposable cups, plates and utensils in the breakroom. Replace with permanent dishware.

Switch to rechargeable batteries. Large office supply storeseven have collection centers for recycling dead rechargeable

batteries. Use eco-friendly cleaning products that are biodegradable and

non-toxic.

Purchase energy-efficient PCs, printers, and other equipmentwith the Energy Star label.

Donate or recycle old computers and equipment.


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Ethical sourcing

Ensuring that products sold by retailers do not exploit workers

in other countries.

Two strands:

1.ETI

2.fair trade


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Cont

ETI

Tripartite alliance

Main provisions are:

-Employment is freely chosen-Safe working conditions

-No child labor

-No discrimination

-No extra working hours


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Cont

Fair trade

Paying producers fair price to cover their basic needs and

provide margin for investment.

Also paid with advance payment when requested.

In return producers need to ensure that there activities are

sustainable

Many organizations carry fair trademark- coffee, tea, honey,

mango, sugar


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THANK YOU

e retailing 2

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