Online Retail in India

Introduction
Retailing in India is receiving global recognition and attention and this emerging market is witnessing a significant change in its growth and investment pattern.

It is not just the global players like Wal-Mart, Tesco and Metro group are eying to capture a pie of this market but also the domestic corporate behemoths like Reliance, KK Modi ,Aditya Birla, Bharti group too are at some stage of retail development.

 Retailing in India in 2005 estimated to be a USD 200 billion industry, of which organised retailing makes up 3 percent or USD 6.4 billion. The organized retail was projected to reach USD 23 billion1 and in terms of market share it is expected to rise by 20 to 25 percent by 2010. The report also predicts a stronger retailer growth than that of GDP in coming 5 years

Retail Industry - India

Retail Industry - $460 billions GDRI Rank 5th (2012) Online retail Share 0.81% of total retail Travel accounts for 72% of total online retail. Electronic retail stands for only 8%.

Internet Retailing
The importance of internet retailing is growing all over the world. Some internet retailers such as ebay and rediff.com are providing a platform to vendors to sell their products online and they do not take the responsibility of delivering the product to buyer. They provide virtual shopping space to the vendors. On the other hand online retailers like amazon.com and walmart.com have to maintain their warehouse to stock products and take the responsibility of delivering products to the buyer. So,

 In India internet retailing is growing by 29% CAGR and Euromonitor report estimates that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2015 from INR 4 in 2005.

EZONEONLINE.IN Indian online retailers

About it
Ezoneonline.in is India's favorite online electronics shopping destination and first exclusive electronic ecommerce portal from Future Group which helps consumers plan their digital lifestyle. It enables consumers to buy the latest & coolest electronics to live smarter.

 Future group operates around 16 million square feet of retail space in over 85 cities and towns and 60 rural locations across India. The group's retail formats connect over 220 million customers to over 30,000 small, medium and large enterprises that supply products and services to its retail chains. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group's core value of Indianness.

One can shop from a wide range of electronics across brands in categories like
Mobiles Digital cameras Laptops Computers Tablets LCDs Home entertainment Media players Accessories Memory Storage devices kitchen and home appliances And more.

Business philosophy (Ezone)

Ezone helps consumers to choose from the latest in technology, best suited to individual lifestyles. Offers the widest range of electronics across categories. Ezone is committed to enable smarter living for its consumers with the use of technology by bringing together the best in national and international consumer durable & electronic brands.

Ezone is present across India in Malls, High Streets and within other group format stores like Home Town, Central and Pantaloons.

Facilitated points
Consumers get added advantage of participating in the Ezone's on-ground yearly store sales properties/promotions such as 'BlindFold Sale' every January and August and 'Zero Margin Celebrations' on ezoneonline.in apart from best bargains here throughout the year.

Contd
Ezoneonline.in offers multiple convenient payment options and free product delivered at doorstep. Customers can also buy on phone by calling our Customer Care Toll Free number 18003000-3966 (9:00 am to 5:00 pm, MondaySaturday)

LOTUS ELECTRONICS

Lotus electronics
Lotus, holds the distinction of being the one-stopdestination for quality electronic products in Central India. It offers an array of world-renowned brands like Apple, Sony, Samsung, LG, Philips, Nokia, Dell, Lenovo, Blackberry, Compaq, Nikon, Canon, Whirlpool, Hitachi etc. all under one roof.

Online shopping - Great Brands, Great Value

Apart from 8 mega showrooms in MP & CG, Lotus now boasts of a strong presence in the virtual world too. Its website www.lotuselectronics.com facilitates safe & convenient online shopping for the customers. There are many wonderful things that you can do on this website - Get acquainted with the vast number of brands available for each product. You can also chat online with our advisors - clear queries & get expert guidance.

Rishta Behtar Zindagi se: A way of life

A bond with a better life, this is the philosophy that we live by and it is reflected in each and every endeavor of the company

products
Home entertainment Phones Computers Cameras Music systems Home appliances Gaming

Who visits the site

DIYers, hard-core gamers, IT professionals, and SMBs. Youth

What's geeky about it

Full of all the motherboards, RAM chips, and hard drives you'd need to build your own computer system.

Where to find deep discounts:

Besides offering daily deals, Lotus electronics is also running pre-Black Friday sales on HDTVs, digital cameras, GPS devices, and more.

Why it's so cool

Easy to find what you're looking for, a huge product catalog of brands, and customer reviews and ratings.

Global E-Retail A VIEW

Online retail sales still account for only 2.5 percent of total retail sales on a global basis. On an average, online sales account for 6.6 per cent of total sales for the top 100 retailers in the world10. Hence, most retailers have yet to make a strong online push through multichannel retailing.

 Global online retail sales grew by 14.5 percent in 2009 to reach 348.6 billion USD8. Electronics is the largest segment in global online retail sales, contributing around 22.6 percent

The US is the biggest market for online retail sales with 37.2 percent market share, whose total retail e-commerce spending reached 129.8 billion USD in 20099, marginally lower than the 2008 level of 130.1 billion USD.

By 2014, global online retail sales are expected to be 778.6 billion USD11, increasing at a CAGR of 22.2 percent. To sustain this level of sales, internet penetration in North America, Europe and Asia- Pacific is expected to increase by 10.6 percent, 7.6 percent and 12.7 percent12 on a yo-y basis respectively .

Type Industry

Private Computers Computer hardware Computer software Consumer electronics Consumer (final) goods 2001 City of Industry, California,U.S Fred Chang (global CEO) Robert Bellack (CEO) Computer hardware, software, peripherals, gaming, electronics, accessories, DVDs, housewares, appliances, tools, furniture, office products and more

Founded Headquarters Key people Products

Revenue Net income Employees Website

US$2.5 billion (2010)

[2]

[1][2] [3]

US$24.9 million (2009) 2,400 (2010)

www.newegg.com

Key Success Factors

Site (and company) built with needs of core user in mind Created sense of community amongst customers Narrow initial product selection Managements industry relationships

Launch Strategy
Customer experience Words of mouth Spend 2% of total revenue on marketing Search engine optimization

Customers
Tech savvy Young age 18- 30 Business Who visits the site: DIYers, hard-core gamers, IT professionals, and SMBs. What's geeky about it: Full of all the motherboards, RAM chips, and hard drives you'd need to build your own computer system. Where to find deep discounts: Besides offering daily deals, NewEgg is also running pre-Black Friday sales on HDTVs, digital cameras, GPS devices, and more. Why it's so cool: Easy to find what you're looking for, a huge product catalog of brands, and customer reviews and ratings. When to order by: December 18 for ground shipping (3-day guarantee); December 22 for second-day shipping; December 23 for next-day shipping.

Type
Industry Fate Founded

Subsidiary company
Retail bought by Andover.net August 13, 1999

Headquarters
Parent Website Founder

Fairfax, Virginia, USA

Geeknet www.thinkgeek.com Jen Frezier

Who visits the site: General computer users, sci-fi fans, students, and pranksters.
What's geeky about it: Besides the typical computer accessories, you'll also find loads of wacky gadgets and gear, like LED T-shirts, a USB Plasma Ball, and a Bluetooth Retro Headset. And for every online purchase, you're awarded Geek Points, which you can cash in for free gifts and other special promotions and discounts. Where to find deep discounts: The Clearance section, full of overstocked and discontinued products, like the Marshmallow Assault Rifle and the Mvix Wireless HD Media Center. Why it's so cool: Attention-grabbing product descriptions, video demos, and a new Geek Kids category. (Hey, you have to start them at an early age!) When to order by: December 15 for ground and international holiday shipping.

Comparative analysis

On-line portals are not up to the mark:

There have been few lacunas in the exiting online websites like poor front ends, website search options are not good, lack of sufficient information about products and terms and conditions, slow websites etc

Inability of on-line retail players to sway customers from offline mode to on-line retail channel:

Lack of proper marketing and advertisement, inability to create a brand image, lack of proper usage of all possible on-line means like search engines, paid marketing, on-line ads, social networking, blogs etc to reach the customers. Inability of on- line retailers to drive the values a customer can derive by shopping on on-line channels.

Issues concerning security and transaction frauds.

In addition many of the web portals dont support all on-line modes of payments. There are high occurrence of failed payments and this if often a deterrent for clients to revisit the portal.

Shopping is a multistep process.

Online consumers love to browse. Many spend a fair bit of time visiting several sites just to gather information. They may also compare the offerings of several competitors before hitting the "buy now" button.

Time between initial visit and purchase has increased.

Increasingly financially challenged consumers may wait longer before buying.

Parameter Product range

Indian

Foreign

Comparative analysis 20-25 th 1 lakh

Low- high
Young , working professional , student

Price
Customer

Mostly high
Student, youth , technology savvy

Promotional activities expenses

average

Very low

Delivery SCM Warehouse

1-3 days Dependent Mostly Dependent

Within 24 hours Independent Independent

Warehouse location

Key rival

RD, Timtara , Next , Croma,

Country reach

Within the country

USA , Canada, Europe

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