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Introduction• Retailing in India is receiving global recognition and attention and this emerging market is witnessing a significant change in its growth and investment pattern.• It is not just the global players like Wal-Mart, Tesco and Metro group are eying to capture a pie of this market but also the domestic corporate behemoths like Reliance, KK Modi ,Aditya Birla, Bharti group too are at some stage of retail development.
• Retailing in India in 2005 estimated to be a USD 200 billion industry, of which organised retailing makes up 3 percent or USD 6.4 billion.• The organized retail was projected to reach USD 23 billion1 and in terms of market share it is expected to rise by 20 to 25 percent by 2010. The report also predicts a stronger retailer growth than that of GDP in coming 5 years
Retail Industry - IndiaRetail Industry - $460 billionsGDRI Rank – 5th (2012)Online retail Share – 0.81% of total retailTravel accounts for 72% of total online retail.Electronic retail stands for only 8%.
Internet Retailing• The importance of internet retailing is growing all over the world.• Some internet retailers such as ebay and rediff.com are providing a platform to vendors to sell their products online and they do not take the responsibility of delivering the product to buyer.• They provide virtual shopping space to the vendors.• On the other hand online retailers like amazon.com and walmart.com have to maintain their warehouse to stock products and take the responsibility of delivering products to the buyer. So,
• In India internet retailing is growing by 29% CAGR and Euromonitor report estimates that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2015 from INR 4 in 2005.
About it• Ezoneonline.in is Indias favorite online electronics shopping destination and first exclusive electronic ecommerce portal from Future Group which helps consumers plan their digital lifestyle.• It enables consumers to buy the latest & coolest electronics to live smarter.
• Future group operates around 16 million square feet of retail space in over 85 cities and towns and 60 rural locations across India.• The groups retail formats connect over 220 million customers to over 30,000 small, medium and large enterprises that supply products and services to its retail chains.• Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the groups core value of Indianness.
One can shop from a wide range of electronics across brands in categories like• Mobiles • Media players• Digital cameras • Accessories• Laptops • Memory• Computers • Storage devices• Tablets • kitchen and home• LCDs appliances• Home entertainment • And more.
Business philosophy (Ezone)• Ezone helps consumers to choose from the latest in technology, best suited to individual lifestyles.• Offers the widest range of electronics across categories.• Ezone is committed to enable smarter living for its consumers with the use of technology by bringing together the best in national and international consumer durable & electronic brands.• Ezone is present across India in Malls, High Streets and within other group format stores like Home Town, Central and Pantaloons.
Facilitated points• Consumers get added advantage of participating in the Ezones on-ground yearly store sales properties/promotions such as BlindFold Sale every January and August and Zero Margin Celebrations on ezoneonline.in apart from best bargains here throughout the year.
Cont’d• Ezoneonline.in offers multiple convenient payment options and free product delivered at doorstep.• Customers can also buy on phone by calling our Customer Care Toll Free number 1800- 3000-3966 (9:00 am to 5:00 pm, Monday- Saturday)
Lotus electronicsLotus, holds the distinction of being the one-stop-destination for quality electronic products in CentralIndia. It offers an array of world-renowned brandslike Apple, Sony, Samsung, LG, Philips, Nokia, Dell,Lenovo, Blackberry, Compaq, Nikon, Canon,Whirlpool, Hitachi etc. all under one roof.
Online shopping - Great Brands, Great Value• Apart from 8 mega showrooms in MP & CG, Lotus now boasts of a strong presence in the virtual world too. Its website www.lotuselectronics.com facilitates safe & convenient online shopping for the customers.• There are many wonderful things that you can do on this website - Get acquainted with the vast number of brands available for each product.• You can also chat online with our advisors - clear queries & get expert guidance.
Rishta Behtar Zindagi se: A way of life• A bond with a better life, this is the philosophy that we live by and it is reflected in each and every endeavor of the company
products• Home entertainment• Phones• Computers• Cameras• Music systems• Home appliances• Gaming
Who visits the site• DIYers,• hard-core gamers,• IT professionals,• and SMBs.• Youth
Whats geeky about it• Full of all the motherboards, RAM chips, and hard drives youd need to build your own computer system.
Where to find deep discounts:• Besides offering daily deals, Lotus electronics is also running pre-Black Friday sales on HDTVs, digital cameras, GPS devices, and more.
Why its so cool• Easy to find what youre looking for, a huge product catalog of brands, and customer reviews and ratings.
Global E-Retail – A VIEWOnline retail sales still account for only 2.5percent of total retail sales on a global basis.On an average, online sales account for 6.6 percent of total sales for the top 100 retailers inthe world10. Hence, most retailers have yet tomake a strong online push through multi-channel retailing.
• Global online retail sales grew by 14.5 percent in 2009 to reach 348.6 billion USD8. Electronics is the largest segment in global online retail sales, contributing around 22.6 percent
The US is the biggest market for online retailsales with 37.2 percent market share, whosetotal retail e-commerce spending reached 129.8billion USD in 20099, marginally lower than the2008 level of 130.1 billion USD.
By 2014, global online retail sales are expectedto be 778.6 billion USD11, increasing at a CAGRof 22.2 percent. To sustain this level of sales,internet penetration in North America, Europeand Asia- Pacific is expected to increase by 10.6percent, 7.6 percent and 12.7 percent12 on a y-o-y basis respectively .
Type PrivateIndustry Computers Computer hardware Computer software Consumer electronics Consumer (final) goodsFounded 2001Headquarters City of Industry, California,U.SKey people Fred Chang (global CEO) Robert Bellack (CEO)Products Computer hardware, software, peripherals, gaming, electronics, accessories, DVDs, housewares, appliances, tools, furniture, office products and more Revenue US$2.5 billion (2010) Net income US$24.9 million (2009) Employees 2,400 (2010)Website www.newegg.com
Key Success FactorsSite (and company) built with needs of core userin mindCreated sense of community amongst customersNarrow initial product selectionManagement’s industry relationships
Launch StrategyCustomer experienceWords of mouthSpend 2% of total revenue on marketingSearch engine optimization
CustomersTech savvyYoung age 18- 30BusinessWho visits the site: DIYers, hard-core gamers, IT professionals, andSMBs.Whats geeky about it: Full of all the motherboards, RAM chips, andhard drives youd need to build your own computer system.Where to find deep discounts: Besides offering daily deals, NewEgg isalso running pre-Black Friday sales on HDTVs, digital cameras, GPSdevices, and more.Why its so cool: Easy to find what youre looking for, a huge productcatalog of brands, and customer reviews and ratings.When to order by: December 18 for ground shipping (3-dayguarantee); December 22 for second-day shipping; December 23 fornext-day shipping.
Type Subsidiary companyIndustry RetailFate bought by Andover.netFounded August 13, 1999Headquarters Fairfax, Virginia, USAParent GeeknetWebsite www.thinkgeek.comFounder Jen Frezier
Who visits the site: General computer users, sci-fi fans, students, andpranksters.Whats geeky about it: Besides the typical computer accessories, youllalso find loads of wacky gadgets and gear, like LED T-shirts, a USBPlasma Ball, and a Bluetooth Retro Headset. And for every onlinepurchase, youre awarded Geek Points, which you can cash in for freegifts and other special promotions and discounts.Where to find deep discounts: The Clearance section, full ofoverstocked and discontinued products, like the Marshmallow AssaultRifle and the Mvix Wireless HD Media Center.Why its so cool: Attention-grabbing product descriptions, videodemos, and a new Geek Kids category. (Hey, you have to start them atan early age!)When to order by: December 15 for ground and international holidayshipping.
On-line portals are not up to the mark: There have been few lacuna’s in the exiting on- line websites like poor front ends, website search options are not good, lack of sufficient information about products and terms and conditions, slow websites etc
Inability of on-line retail players to sway customers from offline mode to on-line retail channel:• Lack of proper marketing and advertisement, inability to create a brand image, lack of proper usage of all possible on-line means like search engines, paid marketing, on-line ads, social networking, blogs etc to reach the customers.• Inability of on- line retailers to drive the values a customer can derive by shopping on on-line channels.
Issues concerning security and transaction frauds.• In addition many of the web portals don’t support all on-line modes of payments. There are high occurrence of failed payments and this if often a deterrent for clients to revisit the portal.
Shopping is a multistep process.• Online consumers love to browse. Many spend a fair bit of time visiting several sites just to gather information. They may also compare the offerings of several competitors before hitting the "buy now" button.
Time between initial visit and purchase has increased.• Increasingly financially challenged consumers may wait longer before buying.
Parameter Indian ForeignProduct range Comparative analysis 20-25 th 1 lakhPrice Low- high Mostly highCustomer Young , working professional Student, youth , technology , student savvyPromotional activities average Very lowexpensesDelivery 1-3 days Within 24 hoursSCM Dependent IndependentWarehouse Mostly Dependent Independent
Warehouse locationKey rival RD, Timtara , Next , Croma,Country reach Within the country USA , Canada, Europe