E-Tailing Scenario

E-Tailing Scenario

 

 

E – Tailing to become $56 billion market in India by 2023

Any small independent retailer who plans to go online would be limited by logistics and hence would be able to cater to nearby areas only. Retailer has to provide buyers with heavy discounts and this is only possible if they could reduce their logistics costs...hence focus on nearby geographic area is needed.

 

Content management in an e – retailing site

There are four folds:

Frame 1 – on the top (center alligned) of the web page – announces bouncer offer with maximum discounts; a very low margin deal; huge mass selling is needed here.

Frame 2 – this section shows most-selling products

Frame 3 – focus here is to earn profit margins; products which are related to aspirations/passion – watches, glasses etc.

Frame 4 - this is something the e-retailing site is known for and would anyways sell, eg flipkart for books, tradus.in for computers and IT

 

Key to funding

Investors are looking for Top-line only; Bottom-line is not the aim…It's a gamble, a run to outlast other.

 

Concept of show-rooming

A prospective buyer tests the product on a mom-n-pop store and then buys it online from an e-retailer who offers maximum discount.

 

How mom-n-pop are talking show-rooming

Three approaches:

1.       Product exclusivity approach – showroom sells exclusive products that are not sold online.

2.       Changing bar-codes on the product – this is an expensive job to do but there is no other option for the showrooms if they are experiencing show-rooming. In this case they need to weigh the costs of changing bar-codes v/s the additional sales they make, again a number which is difficult to estimate.

3.       Fee for window shopping – some malls have resorted to charging if a customer comes for a product trial.

 

Four models

1.       Standard Model – Everything under one roof

2.       Deal based Model – Snapdeal kind of model

3.       Club based Model – The customer pays for being a part of a shopping club

4.       Marketplace Model – a platform for buyers and seller to come and perform transactions

Regards,

Aman Sukhija

12FN-011