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CONSULTING PROPOSAL

On

ONLINE SHOPPING TRENDS IN INDIA FORAMAZON.COM

By

DEBASIS MOHAPATRAA01022100112

MBA M&S Class of 2012

Under the Supervision ofMr. Ashok Sharma

At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

2012


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Amazon India has gone live with the launch of portal,Junglee.com, which Amazon acquired in

early 2000 from Indian entrepreneurs Rakesh Mathur and AshishGupta.

Junglee is an online shopping service by Amazon which enables customers to find and discover

products from online and offline retailers in India and from Amazon.com. Junglee organizes

massive selection and multiple buying options from hundreds of sellers, and leverages Amazons

proven technologies and millions of customer reviews to help customers make smart purchase

decisions.

The Nielsen Company recently announced the findings of its Global Online Shopping Report

conducted among Internet users in 55 markets launched in September 2010.

IndiaSocial reached out to Nielsen India for some deeper insights about the key findings for the

Indian market. Alongside some key findings shared in their company release, we have captured

some of these EXCLUSIVE data about the Indian market in this post.

Scope of the Report

The Global Online Shopping Report looks at how consumers shop online:

What they intend to buy ? How they use various sites? The impact of social media and other factors that come into play when they are trying to

decide how to spend their money.
http://junglee.com/http://junglee.com/http://junglee.com/http://junglee.com/


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CoGlobalprovides an in-depth understanding of the shopper experience, giving you insights that

set the perfect mix of pricing, packaging and presentation to drive growth. Our comprehensive

insights into the shopper experience - including influences such as in-store placement and retail

channels - delivers retailers and manufacturers a clear view of the market through the consumerseyes.

How We Do It

Our comprehensive solutions include:

Analyzing shopper mix to identify your most valuable shoppers and their key shoppingobjectives

Understanding shopper loyalty and retention. We deconstruct the elements that keepcustomers coming back

Organizing overall category management, price, assortment, in-store placement andpromotion to increase share of shopper basket

Learning what works and what doesnt through shopper marketing ROI, we evaluateeach tactical element to determine the most effective retail strategy

Why CoGlobal?

Our industry-leading analytics offer robust insights about the shopper and retail landscape. No

company knows more about the psychology of the shopper and the logistics of retail. From

soft factors such as brand preference to the physical realities of shelf presence and

merchandising display, we can give you a full picture of your brands standing in the

marketplaceand how to improve it.
http://www.nielsen.com/us/en/practices/growth-demand-strategy.htmlhttp://www.nielsen.com/us/en/practices/pricing-promotion-strategies.htmlhttp://www.nielsen.com/us/en/practices/pricing-promotion-strategies.htmlhttp://www.nielsen.com/us/en/practices/growth-demand-strategy.html


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Summary of the Key Findings

More than eight out of ten Indian online consumers plan to shop online in the next twelvemonths

More than a quarter indicate they spend upwards of 11 percent of their monthly shoppingexpenditure on online purchases

71 percent Indians trust recommendations from family when making an online purchasedecision, followed by recommendations from friends at 64 percent and online product

reviews at 29 percent

Half the Indian consumers (50%) use social media sites to help them make onlinepurchase decisions.

Online reviews and opinions are most important for Indians when buying ConsumerElectronics (57%), Software (50%), and a Car (47%).

More than four in ten Indians are more likely to share (post a review/ Tweet/ review) anegative product or service experience online than they were to share a positive

experience

In the next six months Indians are most likely to buy Books (41%), Airlineticket/reservations (40%), and Electronic equipment like TV, Camera, etc. (36%) online

When shopping online, one third of Indians (33%) purchase most frequently fromwebsites which allow them to select products from many different stores.


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Consulting Fees Structure :

Billable Days

Number of Weekdays in a year 261

Number of holiday days you wanteach year

21

How many sick days do you takeeach year

4

Marketing , admin , billing (nonclient work ) days each year ?

96

Total non-working days 121

Billable Days in a year 140

Annual operating costs

Advertising and marketing $6000Equipment hardware and software $3000

Training and Education $5000

Membership and Association $500

Insurance (office , car etc) $3000

Health and dental $2000

Office Expenses (telephone ,internal , electricity )

$2500

Rent (office or percentage of home/office

$9000

Supplies(postage , stationery etc) $750

Professional fees (accountant,lawyer etc)

$3000

Annual operating costs $34750.00

Daily overhead $248.21

Target Income

How much do we want to earn before taxes - $10000

Daily billable rate $ 962.50

Daily hourly rate $ 120.31


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Online Shopping in India

The Internet has transformed many aspects of life, but perhaps none more so than how we shop

for goods and services. While its still nice to stop by a store to touch and see products, theconvenience of online shopping cant be beat. And for some services, such as booking travel or

buying concert tickets, the ability to do so online has made the process much easier and more

efficient.

The Co Global Company conducted a survey in March 2010 and polled over 27,000 Internet*

users in 55 markets from Asia Pacific, Europe, Middle East, North America and South America

to look at how consumers shop online: what they intend to buy, how they use various sites, the

impact of social media

And other factors that come into play when they are trying to decide how to spend their money.

What we found was that there are some products bought online that are universal, and others that

still have yet to build a significant share of trade.

Further, while checking online reviews are popular for some productsparticularly consumer

electronics and carsshoppers still trust the recommendations of friends and family most.


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What product / services do you intend to purchase online in the next 6 months?

product/services No ofrespondent

Books 44

clothing/ accessories /shoes

36

airline ticket /reservations

32

Electronic equipment 27

Tours / hotel reservation 26

cosmetics / nutritionsupplies

22

event tickets 20

computer hard ware 19

videos / DVDs/ Games 18

Groceries 18

Music 16

Sporting goods 13

Toys 11

Computer Software 11Flowers 8

Automobiles and parts 7

Baby supplies 7

Alcoholic drinks 6

Sports memorabilia 5

Car hire 4

Other 7


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Vacations are High Priority for Planned Online Purchases Global online consumers say that

books and clothing will continue to top the list for planned online purchases in the next six

months, which follows the trend reported in a 2012 Coglobal survey where 46 percent of global

consumers said they purchased books in the past three months and 41 percent bought clothing

online.

However, intent to purchase airline tickets and to book tours and hotel reservations show signs

the economy is improving. In fact, compared to 2009 where 24 percent of connected consumers

said they purchased airline tickets online and 17 percent made hotel/tour reservations via the

Internet, intent to make travel arrangements online in 2010 has increased seven percentage

points and nine percentage points respectively.

Other engaging products and services tagged for future online purchases include electronic

equipment, cosmetics/nutrition supplies, event tickets, computer hardware, videos/DVDs/

games and groceries.

Top 5 products / services Global Consumers Expect to purchase Online in the Next 6

Months


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Rank Product

1 Books

2 Clothing / Accessories / Shoes

3 Airline Tickets

4 Electronic Equipment

5 Tours / Hotel Reservations

Online-Only Shops Have Greatest Global Site Appeal

Globally, one-third of online consumers say they primarily do their Internet shopping at retailers

that have only an online presence (such as Amazon.com), followed by an equal 20 percent of

respondents who prefer sites that also have traditional brick and mortar stores and those that

allow you to select products from many different online stores. Only 16 percent of respondents

globally indicate they have never shopped online.

What Kind Of websites do you purchase from most frequently when shopping online ?


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Site preferences varies across the world. Almost half (47%) of online consumers in the India say

they

have never shopped online.

What is your online shopping spending percentage of total monthly spending ?

In a sign that there remains tremendous room for growth, 35 percent of online consumers say

they spend less than 5 percent of their monthly spending online and 31percent say they spend

between 6 percent and 10 percent.

Opinions Count

One of the great benefits of online shopping is the ability read others reviews of a product, be

they experts or simply fellow shoppers.

I am more likely to share ( write about / Tweet review etc) a negative than a positive

product experience online


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I would not buy the following products without consulting reviews


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Top 10 Global sites by % Active Reach

1 Google 81.78%

2 MSN /WINDOWS LIVE/BING 61.82%

3 FACEBOOK 54.48%

4 YAHOO! 52.91%

5 MICROSOFT 48.42%

6 YOU TUBE 46.58%

7 WIKIPEDIA 34.93%

8 AOL MEDIA NETWORK 27.16%

9 eBAY 26.47%

10 apple 26.11%

These opinions are most important when it comes to purchasing consumer electronics: 57

percent of

online respondents consider reviews prior to buying. Reviews on cars (45%) and software (37%)

rounded out the top three most important online influences when making a purchase.

Online reviews and peer recommendations also played a key role for shoppers researching

future purchases of consumer electronics, cars and travel, and 40 percent of online shoppers

indicate they would not even buy electronics without consulting online reviews first. Pity the

product or retailer that consumers dont like: while most online consumers (59%) said that they

are not more likely to share a negative product experience online via Twitter or writing a review,

41 percent would. Online Shopping.

Around the WorldRegional round-up

Consumers all around the world shop online, but what theyre buying and how they use

product reviews and social media to influence their decisions vary widely.

Indian online consumers are the most prolific online shoppers in the Asia Pacific region with 95

percent of Internet users intending to make a web purchase in the next six months. conversely ,

over one fourth of online consumer in Hong Kong (27%) and Thailand (26%) and one-fifth of


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residents in Japan, New Zealand, Indonesia and Australia do not plan an online purchase in the

upcoming months.

What is your online shopping spending percentage of total monthly spending?

Conversely, over one-fourth of online consumers in Hong Kong Koreans who shop online are

most likely to buy books, cosmetics, clothing/accessories/shoes and groceries via the Internet in

the next six months. While connected Chinese also favor books and clothes, 40 percent plan to

make an electronic purchase online.

Web-savvy Malaysians like online shopping for booking travel, with airline tickets and

hotel/tour reservations the top picks. More online Australians intend to purchase event tickets

and non-downloadable videos/DVDs/games than any other in the region. And one-fifth of

online Indian shoppers plan to buy non-downloadable music.

Total online spending as a percentage of total monthly spending varies by country with Chinese

and Korean online consumers allocating the most via the web than any other in the region.

Online consumers in New Zealand, Australia, Malaysia and Hong Kong allocate the least.


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Almost half (47%) of online consumers

indicate they have never made an online purchase.

About The CoGlobal Company

The coGlobal Company is a global information and

measurement company with leading market positions

in marketing and consumer information, television and

other media measurement, online intelligence, mobilemeasurement, trade shows and related assets. The

privately held company is active in approximately

100 countries, with headquarters in New York, USA.

For more information, please visit, www.coGlobal.com

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