13FRN304 article 2

13FRN-304                                                                                                                                      

Lorène van Rijsewijk

 

This week, I would like to come back to the e-business models that work in India, and how they are applied.  It is very interesting as a French person, to see how and in which way some e-business models work whereas other does not. I can already say, at first sight, that in France working models these are the same models as in India. The thing is, France and India are two very different countries that face different type of customers. That is why this course makes me think of elaborate a kind of comparison between e-business models in France and in India.

 

First, on one hand, as you say, there are four main models that work in India :

                -standard : – This is the basic model wherein products are listed on the web portal and customers browse and buy the products e.g. www.flipkart.com

-deal based – These sites focus on providing lucrative deals across products and services categories e.g. www.snapdeal.com

                -club based – These sites position themselves as private shopping club that are open to members only e.g. www.fashionandyou.com

                -marketplaces – These sites essentially bring together buyers and sellers and serve as a plateform for their interaction e.g. www.ebay.in

All of them have some common characteristics that make them work. For example, easy returns, multiple payment options, integration with offline shops retain customers are some of them.

 

Second, on the other hand, in France, these elements are already included in most of the web sites. In a nutshell, that is not what makes the difference or the success of an e-business. As e-business is a well-developed business, we have high standards of quality and French consumers are more demanding. That is why marketers had to find something else to make the difference between the competitors and to retain consumers' attention.

But, in a word, I can say that these four models we talked about earlier are also the one that work in France. For instance :

-standard – www.fnac.com

-deal based – www.groupon.com

                -club based – www.ventes-privees.com

                -marketplaces – www.ebay.in

 

Whereas it seems to be the same as in India, it works actually differently on a few key points.

From my point of view, it seems that in India, what matters the most is the financial aspect. "Buy one, get one free" it is common to find this sentence on Indian web sites. Whereas in France, I would rather say that the choice in brands, articles and the quality of the products and the above services  (like extended guaranty, delivery at home etc.) are more important than the amount you are going to save by getting more and more products.

This kind of promotion has a significant impact in India, whereas in France it will not be decisive in the purchase process.

 

To conclude this article, I would say that e-business are part of the future all over the world, whichever the country, it is just a matter of time for countries to be part of this new kind of business.

It was very interesting to emphasize the differences in how it works in France and in India, all the more that sometimes we find the same brand (such as www.ebay.com) in both countries.

That is a proof that one business model can work in various countries, with a large and diversified population of customers.

 

Thank you for this lecture and for this reflection.

 

Lorène