E tailing

A CASE STUDY APPROACH

ONLINE RETAILING

Online retailing is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser.

Retailing is the most ground breaking and challenging innovation for the retail industry since the last two decades.

Online is for discount is for discount mongers- cheap cheap cheap!

Online has excessive returns- loss making proposition.

INTRODUCTION

PARAMETERS 2007 2010 2013

IN TOP 5 IN TOP 5 # 1 FACTOR

Price 87% 96% 64%

Selection 74% 86% 14%

Promotions/Advertisements 48% 50% 3%

Customer Service 43% 46% 2%

Familiarity/ Experience with store

42% 44% 6%

Payment options 41% 43% 2%

Access to customer reviews, product information

40% 38% 3%

Name Recognition 38% 37% 4%

Ability to purchase multiple items

34% 36% 2%

Recommendations from friends/ relatives

23% 18% 1%

CONSUMER BUYING BEHAVIOUR

GROWTH DRIVERSIncreasing urbanization. Burgeoning middle class with relatively high disposable

incomes. In-adequacy of time of consumers. High need for saving labor. Convenience (open 24X7). Quick deals search and choice of best available in the

market.Increasing internet penetration.Young and educated population.

E-TAILING A BIRD EYE VIEWMobile internet traffic has made the surfers buy house and car online.

Great Online Shopping Festival (GOSF) was conducted in India on DEC 11, 2013.

Participation by over 200 e-commerce portals, running for 72 hours.

50% of people who shopped during the GOSF were the first time online shoppers.

The Indian e-commerce market grew at a CAGR of about 35% between 2009 and 2012 to $9.5 billion. The market reached $12.6 billion in 2013 which led to entry of FDI in this sector.

E-tailers click in Tier 2/3 towns and cities.

30%

15%10%6%

3%2%

34%

Top Categories in India

Apparels and accessoriesBooksBeauty & Personal careHome and FurnishingHealthcare

36%

17%15%

10%

7%

6%4%4%

OTA'S SHARE ON ONLINE PLATFORM

Indian RailwaysMakeMyTripYatra OnlineClear TripExpediaTraveladnetworkMustseeIndia.comIndianrailinfo.com

LEADING INDUSTRY’S IN INDIA1. Travel and Tourism

2.GROCERY MARKET

3.STOCK TRADING

Yebhi.com was known as Bigshoebazaar.com earlier and was started in September 2009.

It transformed into www.Yebhi.com in 2010.

Enormous success in footwear category inspired them to expand in other categories also like Apparels, Accessories, Bags, Jewellery and Mobiles.

B2C ENTITY-Shop Online Trading

•27/07/2007

B2B ENTITY

-Big Shoe Bazaar

•07/09/2009

WORKING MODEL: Yebhi.com is working on Inventory model. They have 2 big distribution centers of 125000 sq. feet with more than 14 delivery hubs in India. They deliver to about 11,000 pin codes in India, including tire one and tire two cities.

BUY FIRST SELL LATER•Purchases from suppliers

In bulk

•Storage in warehouses

1.25 lk sq/ft

•Sale to the end user

Perfect fulfilment

RECENT IDEAS

Yebhi.com Launched a new model “Try and Buy” in which customer can order a product and at the time of delivery if not satisfied can return it back without any cash charges.

CLICK TO THE SHIP A streamlined workforce In place, which

ensures that time between a customer placing order and the product being shipped from there end is not more than 1-2 hours YEBHI CHAMPS

Hiring MBA professionals to carry on the delivery process.

YEBHI WALLET

The funds from Yebhi Wallet can be used to shop for products, recharge mobiles or DTH and transfer funds back to user's bank accounts through NEFT (National Electronic Funds Transfer) free of charge.

•INVESTMENT:

GROWTH

2011 2012 20130

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5060

Series A Series B Series C

•Supply chain management:

Previously yebhi used Aramex courier and now yebhi launched their own courier services which is called “YEBHI EXPRESS”.

•Publicity:

Won the ‘CUSTOMER LOYALTY AWARD’ in 2010.

Presently 1,562,869 likes in Facebook.

With all its credibility Yebhi has managed a 5X growth in 2013 with USD 127 million (INR 627 Crore).

The Indian Railway’s subsidiary which recently launched its SMS based ticketing service, was looking for a white label solution partner to manage its back-end operations.

IRCTC gets close to 1.2 million daily visits generating 180 million transactions every year thus making it the largest Ecommerce site in the country. Yebhi.com receives close to 2 Lakh visitors per day.

Almost 25% of the IRCTC traffic is coming to the IRCTC’s shopping website.

TIE UP WITH IRCTC

CUSTOMER:PROMISES (95%) REALITY (5%)

CLICK TO SHIP Delay in delivery(10-12 days).

Refund done immediately after customer grievance.

Yebhi wallet ineffective.

BUY FIRST AND SELL LATER. Order cancellation stating “out of stock as a reason”.

24X7 Customer Service Poor customer response.

GAP ANALYSIS

BUSINESS: Logistics issues.

Problem with the Payment system.

New Business models for Retailers.

Back-End systems.

Seasonality

Consumer Bias

THANK YOU

CONCLUSIONE-tailing in India will positively have impact

on its 1. Employment status 2. Entrepreneurship Development which is imperative for India to get into

that ladder of becoming a “SUPER POWER NATION”

2006 2011 2016E 2020E0

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India Retail Market Forecasts

E-tailingOrganized Re-tailTotal Indian Retail

$ b

illion

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