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ABSTRACT
There has been a rapid expansion of E-commerce since 1998 due to the growth in
availability and falling costs of technology. E tailing is a concept which rising in market
but there is a new market segment have been raised which deal in second hand product
selling. OLX is a website which start its operation in India. It operate as a medium for the
buyers and seller of the second hand products. Study reveals that most of the products
have disposed or given away after they become old. But after the implementation of OLX
in market it allow the users of old product to find a suitable person for that product at a
good price. OLX have find a successful Market in India for the last six years. TV
advertisement campaign have helped in maintaining a brand positioning to OLX. Most of
their add was humor and culture based, which totally understand the mentality of Indian
consumers. OLX have maintained effective strategies in implementing the market
position and other alliances have been made with other organization for survival. Alliance
with flipkart is one of the most significant one. OLX also face competition in market
from Quikr .
INTRODUCTION
The trade begins from when human being started producing more than what he
need. At first all the trade were on exchange basis. Commodities were exchanged for one
another. Commodities or services exchanged for other commodities or services, it was
known as the barter system. The common rate of exchange was not available on that time.
The common way of exchange was invented as currency, then the trade started on a kick
start. The trade have seen a vast years of development. Internet invention change the face
of trade. Consumer can book a service or purchase almost anything through internet in
the modern world. E retailing is the new face of trade where all the items are available
just in our finger tips.
E-tailing began to work for some major corporations and smaller entrepreneurs as
early as 1997 when Dell Computer reported multimillion dollar orders taken at its Web
site. The success of Amazon.com hastened the arrival of Barnes and Noble's e-tail site.
Concerns about secure order-taking receded. 1997 was also the year in which Auto-byTel reported that they had sold their millionth car over the Web, and Commerce
Net/Nielsen Media reported that 10 million people had made purchases on the Web. Eretailing uses internet as a medium for customers to shop for the goods or services. It can
be either pure-plays or bricks-and-clicks. Pure-play uses internet as primary means of
retailing while bricks-and-clicks uses the internet as an addition to the physical store.
Now a day retailers have started offering almost everything under the sun on internet.
From products like groceries to services like online gaming and jobs, e-retailing covers
all frontiers.
The worlds second largest country by population isnt really known for its
internet penetration. That number stands at a lowly 12.6 percent where people who surf
the internet only once a month are also counted.
OLX.IN
Co-founded in 2006 by Fabrice Grinda and Alec Oxenford, OLX titles itself as
the next generation of free online classifieds, a tagline that forms the basis of the reason
behind its inception. Grinda and Oxenford founded OLX Inc since they wanted to create
a secure, user-friendly, communal trading environment, with rich features at no cost to
the end consumer. Their platform which is used in 105 countries and 40 languages has
been doing exceptionally well over the last few years. In developing markets such as
India, Nigeria, Kenya and South Africa it even runs television advertisements that have
become very popular with the masses.
The growth story of OLX in India over the past two years has been absolutely
phenomenal. The site which was only known to those familiar with the online classifieds
industry in 2010 has now become a verb. Its easy to use interface, General Local strategy,
focus on mobile and effective advertising across television and digital has lead to a
CAGR of 653% since they established a presence in India. Their television ads in India
are unique since they are shown in the local language of Hindi even though the site
operates in English. This communication strategy has created brand appeal among the
masses stretching across all stratas of society. Infact one of the reasons the television
ads are so popular is because the site can actually work in the same manner as shown in
the ad at times. Their are several stories of items getting sold within a few hours of them
being posted on OLX.in.
The internet landscape in India in 2013 is still very much in its infancy with huge
waves of growth predicted in the coming years. McKinseys report on The Internets
Impact on India predicts that the online audience in India will treble to around 400
million by 2016 leading to a 100% increase in economic contribution to the GDP from
the internet.
Mckinseys prophecy coming true would make OLX India even stronger if it
continues to command the same market share that it does today. 60% of the market share
by 2016 would give the site a user base of almost 250 million users making it almost as
big as LinkedIn or Twitter.
Apart from India, OLX has also done well in other countries such as Kenya,
Nigeria and South Africa. A key reason behind its success is the way the organization has
been shaped by its founders Fabrice and Alec, who brought in their tremendous
experience in Internet entrepreneurship when they started the company in 2006. One on
of the hallmarks of the organization is its super-lean operational structure where
resources are committed only where there is tremendous growth. Its hard to imagine that
a company with the scale of OLX has less than 500 full time employees and yet it is
known for its excellent customer service.
Today, more and more internet enterprises are going public which highlights the
fact that the digital economy is working itself towards maturity. As the evolution
continues at a brisk pace it remains to be seen what will become of legacy marketplaces
such as the online classifieds industry. Many outcomes are possible, they can be usurped
by bigger players or search engines, they can go public or even morph into more social
platforms such as Airbnb.
OLX (Online - Marketing) operates as a national online classifieds marketplace
for used goods such as furniture, musical instruments, sporting goods, cars, youngster and
baby items, motorcycles, cameras, mobile phones, property and much more. It is
accessible through the internet and through native apps on smartphone originally founded
in March 2006 by Internet entrepreneurs Fabrice Grinda and A.C.F. Oxenford. OLX is
now owned by global media and digital company Naspers.
The website, which has now become one of the best places for selling and buying
things online, is quite useful for every customer, who would like to avoid the problems of
brokerage charges and related stuff in-between their deals, especially deals for selling and
buying used products. OLX.in is one of the best website, where we can post our free
classified advertisement in order to buy or sell desired products in no time. A huge
number of Indians, who also want to simplify the process, by means of using web-based
technologies, will explore all our advertisements.
Indian transactions. Olx.in is in clear violations with various Indian laws including cyber
law and Indian criminal laws.
The TOI has reported that OLX has been under police scanner as some accused
have used the platform for selling stolen properties and goods. The report has even
suggested that this must have made some gullible buyers using OLX vulnerable to being
a part of the trade in stolen goods.
According to HT, the accused would upload pictures of the stolen things on OLX
and sell them at throwaway prices. The investigating officers are preparing a list of
gadgets sold on OLX.com for further investigation. The Police believe that there are no
security barriers and there should be some mechanism to screen users of the portal. The
police urged caution while purchasing durables and gadgets online. A buyer of stolen
items is equally liable to be booked for robbery.
A brief look at the terms and conditions of OLX reveals that it is using almost
same terms and conditions for both US and Indian versions of the websites. Further,
olx.com is redirected to olx.in for users of India automatically with the same terms and
conditions as are applicable to its US counterpart.
However, this has raised a serious question about the role of Indian government in
regulating the e-commerce websites in India. The e-commerce websites must be
regulated in India as they are operating with great disregard to Indian laws. Although
Indian government has assured that e-commerce in India would be regulated by
comprehensive guidelines yet till date no such sign has been shown by the government.
Another problem that Indian government is not willing to resolve pertains to
conflict of laws in Indian cyberspace. For long companies like Google, Facebook, etc are
violating laws of India. Indian government has not taken a tough stand against such
foreign companies that although operating in India for profit yet are not complying with
Indian laws.
OLX has followed the footsteps of Google, Microsoft, Facebook, Yahoo have
been flouting laws of India with no fear of legal actions. It is high time for Indian
government to resolve these techno legal issues for the larger benefit of India.
OLX on the other hand has monotonous content but is getting some really good traction
This alliance between Indias number one marketplace for used goods, and countrys top
destination for online shopping, can be considered a stepping stone towards consolidation
of Indian ecommerce space. Both the companies have Naspers as their common
investor. The first phase of the tie-up will be kicked off with a joint marketing campaign
urging consumers to upgrade by selling their used products on OLX.in before buying the
new products on Flipkart.
OLX India TV Ad Campaign has received much appreciation from the Indian
viewers and has helped OLX India to widen its base among Indian online buyers and
sellers. OLX India TV Ad Campaign is being aired since 2011 and has recently been
extended on the Radio network too.
The institutional TV ad campaign of OLX India focuses on the concept of Where
Buyers Meet Sellers and presents various ads which showcase funny and humorous TV
ads to highlight the advantage of advertising online with the free classified ad website.
With the tagline as Sab Kutch Bitka Hai or Everything Sells, the TV ads by OLX have
been successful in communicating the idea what the website helps them to accomplish so
much so that almost every person watching TV is well aware about OLX India.
OLX India TV Ad Campaign has drawn much attention of people from every
walk of life and has realized the importance of classified ads website. The OLX TV ads
show real life situation which the people can easily identify with. The OLX TV ads depict
common problems faced by people in selling olds goods, articles or unused products and
also present them with an effective solution in the form of using online classified ads with
OLX India.
Another advantage of using OLX India is the fact that its user interface is
extremely easy to use and navigation through the various categories and subcategories is
easy too. OLX India also provides other useful options to the online users too. It lets you
design rich and colorful ads with pictures and you can use videos in it too. It gives you
the facility to have a control on various activities like selling, buying and community
activity as well.
And this is not the end to what OLX India lets you do. You can even display the
ads on social networking sites such as Facebook, Twitter, etc. OLX India can also be
surfed through other mobile digital devices like mobiles, smartphones, tablets and can
even view the site in your own local language as it supports 40 different languages
worldwide.
On the whole, OLX India website is one of the best online places to host free
classified ads which have become much popular with the Indian masses thanks to the
successful OLX India TV Ad Campaign.
REFERENCE
Source: Bajaj, K.K., Country Report on E-Commerce(2006) (India, Ministry of
Communications and Information Technology, Department of Information Technology,
Office of the Controller of Certifying Authorities)
Source: Farooq Ahmed (2001); Electronic Commerce: An Indian perspective;
International Journal of Law and Information Technology
Source: http://creativeoverflow.net/olx-india-makes-waves-with-tv-ad-campaigns/
Source: https://en.wikipedia.org/wiki/OLX
Source:
http://www.bestindiansites.com/top-companies/e-commerce/
QUESTIONS TO BE DISCUSSED