Maruc Evans E Comm Jan 2008 Capturing Consumption Rewriting Rules

Capturing Consumption

Rewriting Rules

FutureBazaar

FutureBazaar

Launched 26th January, 2007 Winner – Best Shopping Site in India 2007 from PC

World On track to becoming India’s largest e-commerce

player in the first full year of operations

Success Mantra

Capture

Rewrite RulesConsumption

..let us rewrite the first rule….

boring oldrule number one

… that internet retailing

is focused on

‘internet’….

The Old Rule

buying stuff is one of the things that people who are

going online can be persuaded to do

The New Rule

going online is one of the things that people who are

buying stuff can be persuaded to do

Corollary to the New Rule

If people find stuff worth buying,

the means will follow

India is different

Worldwide Social need drives Internet adoption and usage

MySpace, Chat, Blogging, Meetups, Dating

Plays a role similar to a food court or a theatre in a mall - attracts traffic and footfalls that retail benefits from

Internet Retail there is a way to convert traffic to consumption demand

In India Social use of the Internet is very small - the drivers

that cause this kind of usage in American societies are not present here

On the other hand, there’s huge untapped demand for consumption

Internet retail in India needs to convert consumption demand into traffic

Large-format Retail Limitations

Catchment areas large enough to support a large-format store

Large single piece of real estate required in a suitable location

High marginal costs to starting an outlet

Large format retail will leave large gaps in capturing consumption for

years to come

The Essence of Internet Commerce “Virtual” Commerce deals with product information

supply People make purchasing decisions based on product

information Product is delivered after purchase

This holds for many business models that don’t involve the

Internet

Succeeding in E-Commerce in India

Understand the customer base Understand the drivers Understand the barriers Build a relationship with your customers Keep a simple, clear experience Leverage technology smartly

Capture

Rewrite RulesConsumption