E-tailing in India

SECONDARY
RESEARCH BY
V.D.KRIBANIDHI
&
ANANDVEL.S

MBA,PGP-II (2012-14)
BIM, TRICHY

2012 to 2021
2012
E-tail 8% of E-commerce industry.
E-tailing yields USD 0.6 billion
380 million mobile phone users &
140 million internet users in India
2021
USD 76 billion
180 million broadband users by 2020
Employment to 1.45 million people
600 million mobile phone users
- Technopak Study

Sectors using E-tailing

Electronics
Computers and Peripherals
Toys & Games
Travel & Tourism
Real Estate
Employment
Apparels & Footwear

% of Revenue in 2012

21.9

33

24.5

20.6

Laptops/Netbooks/Tab
lets
Apparels & Footwears
Mobile
Phones,Cameras,acce
ssories
Others

Major E tailers in India

Formats adopted by E-Tailers in

India

Generic E-Tailers : like Flipkart, India plaza,

Infibeam, etc, who deal in all products.
Deal Aggregators : They do not stock any
items but work as intermediaries between
suppliers and customers. Eg snapdeal,
naptol, dealsandyou etc.
Niche players (Specialized Retailers) : who
deal in specialized area only like caratlane,
perfume2order, fashion&you, mithai etc.
Physical retailers turned E-Tailers : future
group, shoppers stop, globus, landmark etc.

Growth Drivers

Increasing urbanization
Burgeoning middle class with relatively high
disposable incomes
In-adequacy of time of consumers
High need for saving labour
Convenience (open 24X7). Accessibility (can
purchase from anywhere through internet)
Quick deals search and choice of best available in
the market.
Increasing internet penetration.
Young and educated population.
Bargaining Obviated

E-tailing Key merits

Cater to consumers across geographies

No operational timings
Unlimited shelf space

Online Retail Aesthetics

Web site design

Design of product
Service comparison and information,
Time to complete online order form,
Ease of searching product and service,
Screen layout, complexity & page
composition,
Information display & retrieval methods
information,.

Challenges faced

High cost of acquiring customer

High inventory cost
Cash on delivery
Logistics
Problem of Returns
Payment Gateway Crashes

Trends

Marketing tool (Valuable customer

information)
Recommended products
People also bought
Customization of cart items display
online coupons, gift certificates,
promotional codes
customer reviews and ratings
Referral and reward programs
Social media events

Strategies Ahead

Set up infrastructure and procedures for

reverse logistics
Internet access infrastructure
Flawless payment infrastructure
Compensatory Real-time Shopping
Experience

Social Shopping Group

shopping, Tagged shopping,

3-D Shopping

Customized mannequin trial experience

Community Building