Retail Dude

Social media tools like Orkut, Facebook, Twitter, Buzz etc. introduced a fun element in teaching. Don’t be surprised I am not going to talk about education in India. Actually these tools helped India to raise its computer literacy rate from single digit to double digit, which is one of the important factor to promote etailing in India. I will give credit to IRCTC & Makemytrip for making Indian consumer more comfortable in doing online transactions, but will appreciate social media tools how they boosted “e” presence in India.

The volume of online sale is still less but this mode of shopping is catching popularity through word of mouth, and retailers are bidding on ecommerce growth. Thus we can see “Future group” online shopping destination as www.futurebazaar.com, “Shoppers stop” virtual shop as www.Shopperstop.com and www.themobilestore.in of “The mobile store”.

By the way India has its virtual stores since mid 90’s, and the players like “IndiaMart” and “Fabmall” now known as “Indiaplaza” are among those who established a stepping stone for ecommerce in India. Now we have many such online shops where you can find anything ranging from furniture to T-Shirts and books to gadgets such as www.homeshop18.com, www.shopmania.in, shopping @ sify, rediff and indiatimes, www.retailsdirect.com, www.indiavarta.com, eshop.webindia123.com etc but they lack leading brands. They have “Your brand dual sim phone” but not a “Philip DVD player”, but with retailers opening their online store things are changing but they still have very limited merchandise on their online shop. I hope soon we can see range of branded merchandise from Levis Jeanswear to Titan watch.

After doing some research I was able to draw a profile of Indian shopper - An Indian Online shopper is a “male” of age between “18- 35”, is a graduated doing job and prefer to shop from its work location. Women still prefer brick and mortar store and don’t want to miss trails and store ambience.

Recently Google also launched their shopping tool for google.co.in domain where you can search your product and can see results from all this online shops. All these things indicating a detour for shopping – an online store – new shopping avenue for Indian Shoppers.

- Prateek Katiyar

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So everyone is in recovery mode now after such a long and dark tunnel of recession we are able to see the rays of light coming toward us from the end of it. We are in a transition, and retailers are looking for a platform to jump quickly on the other side. While US retailers are waiting for fall festive season, in India its already festival’s aroma in the air and Indian retailers are leveraging it to it’s extend.  

Indian retail market which is US$ 511 bn. in size and is the fifth largest retail destination globally is becoming lucrative market for international retailers. But due to regulations on FDI in retail, they are still standing on the edge to enter India, and trying different back doors to get them involved in emerging economy which has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney’s eighth annual Global Retail Development Index (GRDI), in 2009. Ecommerce is definitely the one channel that provides retailers a global presence, but because of physical distances between countries, custom duty and merchandise shipping laws these etailing website ultimately divided into local domains and just serve local countries.

Indian ecommerce market worth approx. US$ 2 bn. and predicted to grow to around $6 billion by 2011. Currently out of which the major chunk comes from travel industry. Etailing only accounts 12% of total ecomm market of India. India’s etailing also divided into two categories –

1.       Online retailing like futurebazaar.com

2.       Online auction/marketplace like ebay.com

While online retailing websites are still struggling for their space, online auction/market place sites rules the virtual market and Ebay is the king of online space of India with about 1.5 mn. unique users per month but still its lame as compared to US ebusiness. Ebay still need to reach the critical masses and this only happen when Indian ecomm business is actually accepted my more people. There are many factors which restricted Indian population to use online channel for shopping but people are overcoming this and are willing to try this channel.

Ebusiness is supposed to be a global visa for retailers and utilizing the same ebay initiated “global easy buy” platform just in the mid of festival season which allows Indian shoppers to buy from international Ebay merchants directly (currently Ebay US) with international shipping and handling facility for all products. But for the international product you have to customs duties and international shipping charges which definitely make that international product little expensive but still u can enjoy global deals while sitting in your home, and even get Harley Davidson jacket delivered just before you going to blow a cracker on diwali. This is not it, ebay is also providing free gifts with your purchases and a mega gift in a lucky draw. Now these freebies can change your perception on international product’s prices.

Ebay again with its innovation trying to dig deeper into virtual market of India to reach the gold mine hidden below it. And I hope as a leader it will soon be able to see the tipping point of it.

Readers give ebay global easy buy a try and happy diwali to you all.

- Prateek

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It is considered as a part of CRM but actually it will empower retailers to uplift their bottom lines. The new trend is here and it’s known as Social Commerce. It’s not long back when we heard about e-commerce and m-commerce, many retailers are still experimenting and evaluating these concept. And this Social commerce is an add-on to these previous concepts. In the market there is lot of buzz and talk about social commerce but some analysts are predicting that the concept will take over market by early 2011. But you can visualize some minor elements of social commerce even now like rating system on most shopping websites, customer’s testimonials and their blog hosted on retailer’s website etc.

Forrester analyst Jeremiah Owyang told CRM magazine about the past, present, and future state of the social Web, and he categorized it into five overlapping eras –

1. The era of social relationships: Beginning in the mid-1990s, people signed up for online profiles and connected with their friends to share information.

2. The era of social functionality:As it exists today, social networking is more than just a platform for “friending,” but one that can support a broader array of what Owyang calls “social interactive applications.” However, identities are essentially disconnected silos within individual sites.

3. The era of social colonization:By late 2009, technologies such as OpenID and Facebook Connect will begin to break down the barriers of social networks and allow individuals to integrate their social connections as part of their online experience, blurring the lines between networks and traditional sites.

4. The era of social context:In 2010, sites will begin to recognize personal identities and social relationships to deliver customized online experiences. Social networks will become the “base of operation for everyone’s online experiences.”

5. The era of social commerce: In approximately two years, social networks will be more powerful than corporate Web sites and CRM systems, as individual identities and relationships are built on this platform. Brands will serve community interests and grow based on community advocacy as users continue to drive innovation in this direction.

Click on Image to enlarge it

-Prateek Katiyar

Source: CRM magazine & Forrester Research

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As Sudip very well quoted some examples that retailers are using to cope with the situation as well as to show sustainability. Reducing size of format or closing the stores can be the solution but it’s not what business permits. Business is all about profits and these measure mentioned can take care of your top line but what about bottom line what about the driving force for which you are in retailing. For the sake of business instead of closing I would like to suggest opening or I should articulate it and should say “Use different channel”, use the internet. Because of this crisis many shoppers are turning towards online shopping and this is not only coz u can get the item cheaper online but because of this economic condition, daily you will see promotions and price cuts on products and internet is the fast and easy way to get this information.

Internet analyst James Wallace, co-founder of free price information website PriceProtectr.com, says “The Internet is more optimized for information than commerce,” But ultimately this information drives the customer to the shop to buy. Online shopping last year raked in $25 billion, and online shopping growth should exceed 10% as compared to single digits for overall consumer spending. But, online transactions still account for less than 5% of total consumer spending. But anyways it’s a sale whether it’s online or through brick and mortar model. By providing the information on internet helps customer in their buying decision and every sale which have any kind of prior online enquiry, should be credited in internet shopping.

And because of this economic crisis many promotional offers and discounts are floating in the air of internet. “We’ve seen price drops as much at 95%,” said Wallace. “A $1,800 set of leather-bound books went on clearance for under $20. It sold out in minutes. In the Indian context I would like to quote my own example: I prefer to buy gadgets and electronic stuff from ebay rather than going to Electronic market (S.P. Road, Blr). I get almost a discount of 500-2000 INR depending on the amount of purchase. My apple iPod classic which was for MRP 12500 INR, I got it from ebay for just 10999 INR and that too in 6 month EMI, five months back, who won’t prefer the easy installment method or a discount of 1500 INR and guess what I got a portable vacuum clearer free with the order as the order exceed 10000 INR mark. What else would you wish?

Again as Ebay.in turned 4 they are giving gift and I just bought an external hard disk which was for 5800 INR in electronic market and I get it for 5500 INR and 3 month EMI and a gift: Nokia Bluetooth may be it worth around 1000 INR. So I believe this to be a steal deal.

The prices can vary depending on locations, as previously my favorite place for gadgets buying was Nehru Place, Delhi and I still believe items are cheaper there any ways. So whenever I plan to buy some electronics item I check Nehru place’s official site for price quotes I check with the local electronic market and then I check it on ebay and with all these offers and promotions I just can’t resist buying it from ebay. It’s convenient, easy, 24×7 access and cheap (think abt EMIs).

Riding on the online shopping wagon, many sites  evolved recently, but each one with different business model, like ratetag.com, naaptol.com, bechna.com and the ultop.com etc, which just provide the comparison for the already existing online shops like indiatimes shopping rediff and yahoo shopping portals (But I must say these shopping portals miss something) And secondly there are online counter parts of retailers like futurebazaar.com. and just to try their online service I searched  for external hard disk 1 TB which I bought from ebay for 5500 INR and future bazaar was selling that for 9999 INR, are you kidding me, this is even dearer then my local electronic shops. ”Garv se kaho hum kanjoos hain” won’t fit here. Why they are not creating something like ebay. I know Ebay is a marketplace but when someone is selling a product so cheap why don’t a biggest retailer of India source the same product for the same rate. I have no doubt on the vendor network of future group; it might be the biggest one I guess. I believe they can do this.

For big ticket item every consumer look for information and more details. So the online counterpart of a retailer will definitely help a consumer in their decision and can also lure the customer to their brick and mortar model. Thus I think online thing is a powerful weapon in the hands on retailers to shoot this crisis, but not in a way future bazaar is doing. Not in a “Oops! page not found” way.

- Prateek Katiyar

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It’s a long time we talk about green – a buzz word of the past as in the recent time it was busted by the more powerful words like RECISSION, ECONOMIC CRISIS etc. But what I think is this crisis gave more motivation to retailers to make their business model more sustainable and future proof, so that they can erase the word crisis from their business books. And this sustainability is tightly related with Green initiations. But this green thing is not only for sustainability, if you can be creative in sustaining you can also win awards and also free media coverage and in result good word of mouth and advertising for FREEE. So where are these goodies -?

I came across two such communities who organize the Green awards and I think there might be more. And there main reason behind this is to create awareness of Green issues and to promote companies to reduce their carbon footprint and to serve the society in a better and sustainable manner.

The first organization is GREEN (GREEN is a catalyst for social and environmental change), UK’s first truly green communication agencies who organized Green Awards. And according to them the Green Awards were set up to recognize and reward creative work that communicates the importance of Corporate Social Responsibility, sustainable development and ethical best practice in any sector and across any marketing discipline. The award was launched in 2006 and in the three years since its inception, the ceremony has become established as a major event on the eco-calendar, enjoying great prestige and substantial media coverage.

And the GREEN 2008 Goes to —-

1. Green Awards GRAND PRIX & Best Green Internal Communications)- Nokia: The Power of We

2. Best Green Outdoor- Coca-Cola GB: Talent From Trash

3. Best Green Packaging - Lush Ltd: Squeaky Green - There’s no greener packaging than no packaging & Cadbury: Cadbury Eco-Eggs

4. Best Green Website - Friends of the Earth: The Big Ask(www.thebigask.com) & largeblue: green.tv(www.green.tv)

The second organization is IMRG (Interactive Media in Retail Group) which is a membership community for the e-retail industry, whose vision is to maximize the commercial potential of online shopping. With more than 18 years experience in a rapidly-changing e-commerce market IMRG help members maximize the business opportunities, and stay up to date with developments in the e-retail marketplace.

The IMRG celebrates the green initiatives by organizing “The Online Green Awards” . More than 140 business leaders, academics and representatives of industry associations gathered together for the second annual On Line Green Awards – affectionately known as the OLGA’s – at the Kensington Roof Gardens in London.

And the OLGA 2008 winners are

1. Consumer Award Winners –

a. Small Retailer - Celtic Sheepskin

b. Large Retailer – Ocado

2. Panel Award Winners –

a. Small Retailer - Arena Flowers

b. Large Retailer - Dixons.co.uk

c. Large Supplier - Home Delivery Network

d. Green Thinker – Kelkoo

e. Grand Prix – eBay

You can surf through following links for more info and nominations –

GREEN - http://www.greenawards.co.uk/

IMRG - http://www.imrg.org/

One more interesting website to know your Own “Personal Carbon Footprint” –

http://mtc/InGreen/Pages/HouseholdEmissions.aspx

- Prateek Katiyar

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Ever thought about spending a penny to save a Rupee.  

Sounds a great proposition, especially when recession is on upward swing & markets are hitting rock bottom.  So as our oldies said, money saved is money earned holds particularly true in today’s scenario, when cost cutting is the new mantra. 

So, to untangle one from the clutches of recession, a new service is launched, moneysaver, brainchild of 2 young entrepreneurs, Kunal Bahl & Rohit Bansal, who aspired to make every brand affordable for everyone by offering hundreds of discount coupons & buy  one get one free coupons on branded apparels, fine dining, casual dining, movies, entertainment etc.  

Moneysaver is a service that comes in handy to consumers as its affordable (Just Rs 100 monthly), accessible (Just a sms away), Available (More than 200 outlets where one can buy moneysaver recharge card.) & every month, subscribers are kept abreast with the latest offers through monthly catalogue. 

The entire model is based on the simple fact that everyone loves to strike a deal, to make a bargain and avail a discount. The research which their focus group discussions revealed was that Indian customers are not price sensitive, they are value sensitive. The perceive value not on the basis of whether they are getting the product cheap but if they are getting it cheaper. Money Saver stretches the concept to make it a win-win for all by feeding on ’dependencies’. Aiming to reach a target group of 15 million potential booklet buyers comprising young professionals, college students and housewives they know that this is exactly the same group that the expanding pool of retailers is trying to reach across the country. There website called www.moneysaver.in is full of such great offers.

Not only Moneysaver, but other companies are also trying to utilize SMS, Bluetooth, mobile websites, to cost effectively reach customers.  Bluetooth companies such as Telebrahma and CellMagix have been promoting offers and content to consumers inside malls, by sending information directly to Bluetooth activated phones.

(Guest Post)

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