ELECTRONIC RETAILING

Submitted To: Dr. Alka Sharma

Submitted By: Ankush Kohli (08-MBA-10) Ankit Mahajan (09-MBA-10)

ELECTRONIC RETAILING
Electronic Retailing (e-tailing)
Retailing conducted online, over the Internet

e-tailers
Retailers who sell over the Internet

CONTD
What Sells Well on the Internet?

Computer hardware and software Consumer electronics Office supplies Sporting goods Books and music

Toys Health and beauty

Apparel and clothing

Jewelry Cars

Services
Others

CONTD

Characteristics of Successful E-Tailing

High brand recognition A guarantee provided by highly reliable or well-known vendors Digitized format Relatively inexpensive items Frequently purchased items Commodities with standard specifications Well-known packaged items that cannot be opened even in a traditional store

E-RETAILING PROCESS

RETAILING VS E-TAILING

E-RETAILING BUSINESS MODELS

CONTD
Classification by Distribution Channel
1. Mail-order retailers that go online 2. Direct marketing from manufacturers

3. Pure-play e-tailers
4. Click-and-mortar retailers 5. Internet (online) malls

CONTD
Direct Marketing
Broadly, marketing that takes place without

intermediaries between manufacturers and buyers; in other words, marketing done online between any seller and buyer.

Sellers can understand their markets better because of the direct connection to consumers Consumers gain greater information about the products through their direct connection to the manufacturers

Direct Marketing

CONTD
Virtual (Pure-Play) E-Tailers
Firms that sell directly to consumers over the

Internet without maintaining a physical sales channel

Low overhead costs General purpose or specialized

Virtual (Pure-Play) E-Tailers

CONTD
Click-and-Mortar Retailers
Brick-and-mortar retailers that offer a transactional

Web site from which to conduct business

Sells in stores, via phones, over the Internet, via mobile devices

Click-and-Mortar Retailers

CONTD
Retailing in Online Malls
Referring Directories Malls with Shared Services

ONLINE MALLS

EMPLOYMENT PLACEMENT AND THE JOB MARKET ONLINE

The Internet Job Market
Job seekers Employers seeking employees Job agencies Government agencies and institutions

The Internet is a global online portal for job seekers

CONTD

CONTD

Intelligent Agents Match Resumes with Available Jobs

CONTD

CONTD
Limitations of the Electronic Job Market
Many people do not use the Internet. This

limitation is even more serious with nontechnology oriented jobs. Security and privacy: resumes and other online communications are usually not encrypted, so ones job-seeking activities may not be secure.

ONLINE PURCHASE-DECISION AIDS

Shopping Portals
Gateways to e-storefronts and e-malls; may be

comprehensive or niche oriented

Shopping Robots
Tools that scout the Web on behalf of consumers

who specify search criteria

CONTD
Business Ratings Sites
Bizrate.com, gomez.com

Trust Verification Sites

TRUSTe (truste.org), Verisign.com

Other Shopper Tools

Communities of consumers who offer advice and

opinions E-wallet (or e-purse)

CONTD
Other Shopper Tools
Amazon.coms A9 Search Engine

Remembers information A user can make notes about any Web page and search them Offers a new way to store and organize bookmarks Recommends new sites and favourite old sites specifically for the user to visit

PROBLEMS WITH E-TAILING AND LESSONS LEARNED

Dont ignore profitability
If it doesnt make cents, it doesnt make sense

Manage new risk exposure

Concern about scope of target customers

Watch the cost of branding Do not start with insufficient funds The Web site must be effective Keep it interesting: dynamic content

ISSUES IN E-TAILING
Disintermediation
The removal of organizations or business process

layers responsible for certain intermediary steps in a given supply chain

Reintermediation
The process whereby intermediaries (either new

ones or those that had been disintermediated) take on new intermediary roles.

CONTD

Disintermediation and Reintermediation in the B2C Supply Chain

CONTD
Channel Conflict
Situation in which an online marketing channel

upsets the traditional channels due to real or perceived damage from competition

Determining the right price Personalization

Mass customization

Fraud and illegal activities How to make customers happy

Need market research

ONLINE RETAIL IN INDIA

SO FAR AND BEYOND

2016 Market expected to grow 20x to $12 billion on the back of growing organized retail, rising incomes and consumer demand 2011 The market doubles in just 3 years to $0.6 Billion with a slew of investments driving growth 2008 Online retail a very niche market with revenues of only $0.3 Billion and few players

GROWTH CYCLE
Consumer Demand Aggregators

Online Retail

KEY DRIVERS
Consumer Demand
Deals, Discounts & Couponing

Availability & Convenience

Print & TV Media Trust & Reliability Product Options and Variety Heavy adoption of basic online services like ticketing, jobs,

etc.

Supply
Entrepreneurs / Aggregators
Investment Multi Channel Retailers

KEY TRENDS
Surprise Growth
Unanticipated increase in consumer demand

Over achieving targets

Retail Shift in some categories

More than 10% of Mobiles, Camera purchase, books purchase

shift online Growth of Specialty stores like Baby products, footwear, etc.

Breaking touch and feel barriers

Apparel / Footwear growth splurged online

Heavy Investments and Valuations

More than $ 400 Million invested in 2011 alone Valuations as high as $ 850 Million for pure play online retailers

Recent Trends
Flipkart.com recently raised $20 million in its third round of

funding from a venture capital (VC), valuing it in excess of Rs.1,000 crore. Though the company has already raised $31 million, there are rumours that a very large VC fund is planning to invest another $150 million in the company raising its valuations to $1 billion or Rs 5,000 crore. Then there are others like Myntra.com which raised $40 million, Indiaplaza that raised $8 million so far, and daily deals site Snapdeal.coms parent Jasper Infotech that recently raised $40 million from VCs.

Recent Trends
Large Indian off-line groups like Future and Times of India

are also in the competition. It is estimated that even after investing $300 million in the Indian retail e-com space, VCs are looking out for more exciting ideas with a bagful of money. It is estimated that around 20,000 deal transactions and 50,000 product transactions happen every day from the top 10 retail e-com sites.

THANK YOU