Archive for December 7th, 2006

Retail E-Commerce India. They need Competition!!!

Since early e-commerce days of 2000 in india. We have seen very few successful Retail ventures come into market and survive for a change. The couple of successful Retail ventures we have seen survive in market are : India’s first real e-commerce story surviving dot com bubble burst and growing. Havent lately seen much of them in media. Though the sector of selling books online has evolved further. With entering of organized retail chains in market and horizontal E-commerce portals people like fabmall and landmark are competing. Though this sector is suppose to biggest e-commerce growth area by 2010. Small retail book stores like Delhi Book Store etc have been populating the web without a specific strategy to reach masses. Most of them banking on power of web for people to discover them and trying to levarge advantage from their offline brand names.

Marketing strategies : Brick Mortar way of expanding into retail failed. Restructuring in organization unoffical estimates of 500 sales every day with ticket price ranging around 500-750 INR. using the first mover advantage to remain on top in search engines and brand recall capacity as the sole player in the field. : India’s Largest online shopping network. The model they following is similar to what shopper stop or walmart wishes to follow in india. Rather than they hold on inventory they lend out shelf space on the portal. This way they make retailer part of the value chain while being responsible for payment collection and logistics. The Model is working great as it let organization maitain minimum operating cost and let them focus on important thing “Improving Customer Experience ” . They have a large catalogue of items. According to media sources organization is doing great in Tier-II cities which are still lagging behind in retail boom. Rest are mainly NRI’s shopping for family back in india.Locally in Bangalore they also work on Cash on Delivery model experimenting from groceries to school books. But the model hasnt taken ground seriously like travel is emerging. For their model to evolve they need small or large retail chains to take the medium seriously and promote it as an alternative for shopping. In process they will be creating a market which fabmall would easily be able to service keeping with first mover advantage and experience with Indian Online Customers. They could be interesting acquisation target for amazon if it wishes to come to india.

Marketing Strategies : Following tieup with Local Content Publishers for pushing sales. Co-branding shopping verticals with Business Standard, Anand Patrika etc. Rather than opening up system technology wise working on revenue sharing basis to help publications compete with likes of timesofindia.  Helping them out with increasing sales revenue every year. : Ebay in india has totally different model to what it behaves around the world. People here are not working on bidding model but wholesellers retailing products online directly to small city customers without intervention of multiple distributor layers. Reducing costs to customers and selling more volumes. If we talk about small shop keepers comming online, ebay has really changed the way e-commerce works.

Marketing Strategies : Heavy advertising, large brand recall. earning per transaction.

Will analyze each business model on new post for discussion with readers as these businesses need competition fast!!! Hope there are startups working to give them tough competition in their markets of operations. Havent heard of any VC deal recently promoting B2C shopping sites in india.

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December 2006