Category Management and Channel Sales Network - Watches

Submitted by, |Vikas Upadhyay| MBA(IB)| Delhi School of Economics

Defining the Category

Category appraisal

Online watch market growing tremendouslyExpected to clock a CAGR of 54% between 2014-2019

92% through ecommerce websites

8% by makers personal websites

Online Market

Major ecommerce players

Growth factors• Changing consumer dynamics• Increase in disposable income• Growth of organized retail and ecommerce• Entry of international brands• Increasing online users.(from 200 mn at present to 0.5 bn by 2020)• 3/4th population below 35 years.• Tier II and III cities- increasing markets for ecommerce and organized retail.

Most wanted categoriesFormal watches, designer watches, sports watches and chronographs

Key Enabler• More number of working women• Changing spending pattern• Rising aspiration levels

Category Strategies

• Online and offline channel for Tier 1and tier 2 cities

• Offline channel for tier 3 cities. (lesser internet penetration+ available property at affordable prices)

• Negotiating and bidding processes with suppliers

• Robust supplier rating process

• Placing the price at par with the new price of lower segment

• Clear pricing details and heterogeneity of payment option

• Discount based on previous purchase of product .

• Credit payments and options in payment modes to suppliers

• Loyalty programs for buyers and sellers.

• Positioning against the new watches of lower segment.

• Providing extended company guarantee over maker’s guarantee

• Key category should be male sports, formals and chrono watches( major buyers are males and students)

• Aggregate listing on sites like OLX, quicker, ebay as well on sellers portal( both etailer and maker)

• Descriptive category, 360 view, comparison option

• Online advertising, via social media and search engine listing

• “Watch Guide” in catalogue - after purchase guidance, top picks, stories, USP of the watch

Place Price

PositioningPromotion

Category Strategies

• International tie-ups with companies like Overstock.com and watchuwant.com to order bulk of pre-owned guaranteed high end watch segments(Luxury)• getting listed as an agency on web portals of C2C recommerce websites and B2B and B2C ecommerce websites.

• Expanding to the pre-owned category for premium segment to compete with the buyers of mid and affordable luxury price segment.• lesser competition in a proven category with the ethoswatch.com being only big rival.

• Product/expert reviews and rating+user feedback( for both buyer

and supplier)

Online

•Holistic compariosion between product range available(for buyer)

• Financing option( buyers)

• Engaging in cross sells with major ecommerce players ( for buyers and sellers)

• Customer registration feature to make it easy creating loyalty programs ( for buyers)

Transaction inspection service for unsatisfied buyers

Dedicated brand page with product listing

First Notifications of Best Deals

Channel sales strategies

Offline

Having sales representatives in major cities( to tap B2B sales)

Tying up with wholesalers and local unorganized shops(65% of the

market)

Getting a unique identification id for offline sellers for authentication and quick liquidation of original products

Identifying major sellers of branded watches and on boarding them as

distributers

Robust inventory tracking system(bridging the inventories of the

company and offline distributors)

Performance Recognition & Benefits Program for Sellers

“The Re-day”

• A particular day of the month/quarter.

• Sales through offline channel partner

• Customers booking that day for purchase will be offered additional discounts

“e-auction”

• A single day event to roll out all the existing stock on first cart first take basis

• Additional discount on the day + redeem points

Method aimed at liquidating excess stock and unboxed watches

Method aimed at liquidating refurbished, excess and unboxed stock

Assisting sellers in demand estimation

Tying up with local shops involved in selling 1st and 2nd second copy of the original brand

Selling refurbished but original products at their rate

Leveraging upon the rising Aspiration Levels

Thank You