the changing buying and selling trends
TRANSCRIPT
$450 billion retail market by 2015 ( = Italy)
300 million shoppers
Add $3-4 billions in GDP of five years
Lower consumer price 3-5%
Lower waste via more efficient supply chains
Larger tax base1.6 millions retail
jobs
CE – Huge Mkt
Online buyers of ‘non-travel’ products (13.5 million) outnumber ‘travel’ ones (8.6 million)
Most bought ‘non-travel’ products are mobile phones & accessories, computer hardware and consumer electronics
Most bought ‘travel’ products are train tickets and air tickets
Top Categories by Value JAS 2011 Average Selling Price (In USD)
Mobiles & Accessories 72
Computers & Peripherals 82
Consumer Electronics 47
Health & Beauty 32
Jewellery 76
Fitness & Sports 46
Cameras & Optics 89
Kitchen & Home Appliances 31
Apparel & Accessories 20
Memory Cards, Pen Drives & HDD 26
Home, Decor & Furnishings 26
Toys, Games & Baby 32
Watches 42
Books & Magazines 13
Coins & Notes 66
Cars, Bikes & CVs (Accessories) 16
Everything Else 13
Tools & Hardware 23
Musical Instruments 59
Movies & Music 5
Collectibles 19
Travel
3.87mn
22%
Non-Travel
4.7mn 8.76mn
27% 51%
Online Buyers 17.3millionTop 10
USD 81mn/
quarter
Source: Juxt India Online 2011 Study July 2011
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation
Study (4000+ sample of online non-travel buyers) – JAS 2011
Credit Card – Still Nascent
24% 25% 26% 25%
29% 31%38% 38%
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011
Credit Card Ownership
Net Banking Users
Unique Non-Travel Buyers per Quarter
0.410.62 0.64 0.68
1.07
2.00
1.27
0
1
2
3JF
M'1
0
AM
J'10
JAS
'10
ON
D'1
0
JFM
'11
AM
J'11
JAS
'11
58%
48%
42%
41%
10%
3%
1%
1%
0% 20% 40% 60% 80% 100%
Debit card
Credit card
Net Banking
Cash on Delivery
Cheque/DD on Delivery
e-currency
Cash Card
Others
• Of the 13million around 2million unique people transact in any given month
• Credit card penetration among Internet users is relatively low and remained stagnant
• Users use on an average 2 mode of payments, ‘Cash on Delivery’ is growing and throwing unique challenges
Rate of return
30 to 40%
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of
online non-travel buyers)
Factors affecting location
Intended target market
Type of products
Suitability of site for customer access
Characteristics of existing
retail operations
Three most important words in retailing:
Location … location … location!
Consumers want convenience, a subjective measurement
Convenience Measurements - Distance - Parking
- Time - Traffic congestion
= Convenience
Free standing structure
Central Business District (CBD)
Shopping Malls (avg. age 23 yrs 2012)
- Neighborhood shopping center
- Community shopping center
- Regional shopping center
Non Traditional Shopping Center
- Factory Outlets
- Mini warehouse mall
Retail buyers must match their product selection, quality, price with constantly changing consumer wants.
Scrambled merchandising- adding unrelated products to generate traffic & higher margins
- The retail store merchandise must change as consumer wants change
Product Selling Cycles
NB’s…..a relatively short term selling life cycle - (under 3 months)
DT’s….a relatively enduring selling lifecycle - (over 3- 6 Months)
StoreLocation
StorePromotions
StoreLayout/Image
StorePersonnel
StoreServices
StoreHours
The sum total of all store stimuli, interior & exterior physical characteristics that appeal to emotions (psychological field)
Components: Ambient factors, Design and Social Factors.
Ambient Factors (Perceptions)
- lighting
- sounds
- smell
Social factors: In store service (sales personnel social & emotional labor)
- Courteous Rude behavior
- Knowledgeable Low information
- Service Insincere
- Employee dress norms (casual ??)
Make it convenient & pleasurable for customers to shop and pay for merchandise
Personal Service Climate- Calls for a highly motivated,
experienced & well paid work force
- Retail jobs often pay poorly, are not challenging and produce high turnover
8%
30%
33%
29%
7 - 12 months
1 - 2 years
3 - 5 years
5 + years
Average length of employee tenure with retailers
Estimates: 2012
Location + Merchandise + Services + Atmospherics + ? Store Image
Advertising Medium(s)Newspapers - Television - Radio - Magazine - Direct Mail -
Videos-Web
Price and Value
Quality and Selection of Merchandise
Service
Shopping Environment
44%
34%
11%
11%
Retailers Resellers
Exclusive Distribution Intense Distribution
Store Loyalty Brand Loyalty
High Markup +Volume Low Markup/High Volume
Love - Hate Relationship
Perusa Yusii