E Commerce In India

Submitted By:PULKIT GARG

E Commerce in India has skyrocketed in last 5 years.The market worth of about

$12 billion in 2012 and growing. With Retail Market of India expected to grow to $675 billion, E Commerce is

only going to increase massively with entry of…

LOCAL PLAYERS LIKE

AND GLOBAL PLAYERS LIKE

In this section, we will consider the Large Home Appliances Category, i.e., 1. Refrigerator

2. Air Conditioner3. Washing Machine

Refrigerator:Currently Available

AcrossSnapdeal.com, Infibeam.com,

ShopClues.com, Tradus.com

Estimated Market (2014-15)

Rs 169 Billion ( $3 billion)

Sales Volume: 4 million units

Growth Rate : 45%

Air Conditioner:Currently Available

AcrossSnapdeal.com, Infibeam.com,

ShopClues.com, Tradus.com

Estimated market (2014) :

Rs 1 Trillion ( $20 billion )

Sales Volume: 30 million units

Growth Rate : 20%

Washing Machine : Currently Available

Across Snapdeal.com, Infibeam.com,

ShopClues.com, Tradus.com

Estimated Market : Rs 4900 Crore ( $1

billion) (2012)Sales Volume: 3.05

million unitsGrowth Rate : 24%

So, With Such a Huge Retail Market, E

Commerce Is Bound To Grow

?

The sales depends on Conversion RateLets discuss factors affecting Conversion Rate

HIT OR

NOT?

MAINLY4 REASONS

CAN BEACCREDITED TO FOR THIS

1.

HOW MANY

POTENTIAL

CUSTOMERS

FIT THE GIVEN

DEFINITION?

2.

AVERAGE INCOME OF THE GIVEN

CUSTOMERS

3.

GEOGRAPHIC LOCATION OF GIVEN

CUSTOMERS

4.

QUALITY OR

QUANTITY!!

IF CUSTOMERS FIND PRICE

MORE IMPORTANT

THAN QUALITY

THESE ALSO AFFECT CONVERSION RATES

The time of delivery stated is unclear.

People in India have habit of buying goods only after feeling the goods.

The behaviour of the Indian customer is very need driven as compared with the US customers who are impulsive buyers.

SO, HOW CAN SALES AND CONVERSION RATES BE

INCREASED?

BELOW ARE FEW SOLUTIONS TO INCREASE SALES AND CONVERSION RATES

1.

Ecommerce Marketing Checklist (courtesy : Forbes)

Click Through Rate

Responsive Design

Content Marketing

Site Performance

Lets go in a bit detail

CLICK THROUGH RATE

RESPONSIVE DESIGNEvery year more and more queries are being searched on mobile devices and according to Google Analytics over 57% of the visitors are using a mobile device. Responsive design is a fancy way of saying that the website can adapt to various screen sizes. Responsive design is a highly effective way to take advantage of your mobile traffic and increase conversions.

CONTENT MARKETING

• Involves the creation and sharing of media and publishing content in order to acquire customers.• Not on selling, but on simply communicating with customers and prospects.• To succeed, Every blog post needs to be interesting, entertaining, unique, and engaging.• thumb is that if your content isn’t worth sharing, it’s not worth publishing.

Contd..

Power of Content Marketing can be gauged from the rise of Samsung in the smartphone market.

It spent more fortune on marketing of its Galaxy series than the combined spending of all other major players, and combined with state of art Research and development, today its Galaxy Series holds 30.8%

share of smartphone market globally, up from 12% 3 years ago.

SITE PERFORMANCE

• The load time of site is important for 2 reasons: (1) fast websites convert better; and (2) slow websites don’t rank well in search engines. • In 2006, Amazon announced that for every 100ms in load time there was a 1% decrease in sales.• In regards to rankings, in 2010 Google began using site speed as a ranking factor in their search algorithm.

2.

E commerce is a constantly evolving industry. So, for a company to stand

out of crowd, innovation in its

business strategies is indispensable. Here are few innovative techniques, taking into account the currently used

methods and pains to users.

360o View Later Followed By 3D

As mentioned, Indian customers wants to feel the good before buying, 360o view and 3D techniques can make them feel closer to object.

Also, this will provide a better estimate of shape and size of object to customer.

Introduction of ‘Value For Money’ Category

• All E commerce sites assortment methods are currently based on ‘Best sellers’ or ‘Brand-wise’. • Value for Money category can provide the customers products good quality as well

as low price, based on the reviews of other users.• This is illustrated in following slides by the examples of MNC’s like Apple and

Google.Contd..

Google’s PageRank concept for ‘VFM’

What is Page Rank : It is patent of Stanford University. Whenever a page on internet accesses another page, it is considered as a vote to that page. While searching a piece of information, this vote is taken into consideration. This is a probability distribution algorithm. Contd..

PageRank and VFM

• Like pagerank, for VFM category, user’s ratings will be considered as a vote to the product.• Along with the Price of the given product, ratings by the users can be

combined through an algorithm to calculate the ranking of a product in VFM category.• Product with lower price and higher rating in same category get

higher ranking in VFM category.

But How Will I Get User’s Ratings??

Here Comes The Case of

Apple paid over $9 billion in royalities to app developers.

Today, Apple App store boasts 8,50,000 apps which have been

downloaded 45 billion times.

How To Use Concept Of App Store

Like Apple paid to developers, we will offer additional discount ( say 1%) on purchase of next products to customers to provide feedback for previous products.

This will lead to increase in number of ratings available for the stock.By this customer will also tend to buy another product to avail that discount.

It Can Publicize Through ‘Word Of Mouth’ In Long Run

By Making Consumer A Part Of Company, Emotional Bond Can Be Created Through

Brand Laddering

Emotional Benefits

Functional Benefits

Attributes

3.

CUSTOMER SATISFACTION

The Most Important

Thing For Any Business To

Flourish

Its Importance Can Be Gauged From Fact That

•A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer.

A totally satisfied customer contributes 17

times as much revenue as a somewhat dissatisfied

customer.

A totally dissatisfied customer decreases

revenue at a rate equal to

18 times what a totally satisfied customer

contributes to a company.

 In order to achieve long-term

sustainability company must seek to establish ties of

loyalty with consumers that are strong enough to

ward off the advances of

competitors. For Eg. Maruti Suzuki (Cars), Apple (Electronics)

etc.

CUSTOMER EXPERIENCE MANAGEMENT

Creation of CEM (Customer Experience Management) team/module which enhances the level of customer satisfaction by delivering on various modules of

customer service – from customer promises to grievance redressal.

CONCLUSION

MARKETING CUSTOMER EXPERIENCE

INNOVATION

=

REFERENCES

• http://www.growthink.com/businessplan/help-center/analyzing-customers-your-business-plan#• http://www.forbes.com/sites/brentgleeson/2013/03/14/ecommerce-

marketing-checklist-for-2013/• http://www.apple.com/about/job-creation/• http

://www.wparesearch.com/uncategorized/the-importance-of-customer-satisfaction/