CupoNation consumer survey, 2013 1

TALKING POINTS

Why are we talking about online shopping?

Growth & Drivers

What are the current issues still to be solved?

Inhibitors

Introducing CupoNation

CupoNation survey, 2013

Overall results

Segmental results: women

How is CupoNation addressing the segment needs?

2

WHAT IS DRIVING ONLINE SHOPPING IN INDIA?

High Internet growth

• Highest internet traffic growth globally to reach 348 million by 2017

• 138 million in 2012

• 3G penetration growing at a CAGR of 60% (2013-2015)

• Fastest growing segment 25-35 years

Consumer behaviour

• Gen Y Device ownership: 79% students owned a mobile phone, 75% a PC

• 40% spent over an hour on Internet daily

• 50% use reviews from SNS

• 76% do product research online

• 80% want to buy online in future

Industry push

• Low real estate required to set up online operations

• Online seen as the “ next mall” and presence considered necessary

• E-tailing industry received a over USD 300 million total funding in 2011

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Source: Cisco, 2013; Economic Times, 2013; TCS consumer survey 2012; Nielsen,; Juxt consult; Techgig

WHAT KIND OF GROWTH ARE WE TALKING

ABOUT?

108 302

543

930

1355

2054

0

500

1000

1500

2000

2500

2005 2007 2009 2011 2013 2015

E-commerce sales, USD mn

4

Source: Euromonitor, McKinsey, 2012;

Indian online retail industry will

grow from Rs 32 billion in 2012 to a

projected revenue of Rs 100 billion

in 2015, a CAGR of 45%-48%

Source: CRISIL, Economic Times, 2013; Press

Companies have either launched e-

stores or are mulling over that

option. It's become top priority,

more important than perhaps

opening a store in the new mall-

Bata India, VP

WHY ARE CONSUMERS SHOPPING ONLINE?

Convenience & choice

“My son told me about this website, I get them delivered at a reasonable price. Many of my kids’ books are available only in Delhi. So, rather than travelling, we order them online”

Discounts

“Plus, it's often cheaper to buy online. I'm definitely going to be a regular on their site”

Private space & lack of intimidation

“Even in a multi-brand departmental store, I find buying lingerie uncomfortable and asking for different types of products is not easy” 5

Source: Web search

WHO IS SHOPPING ONLINE?

6

Deal seekers

Now I save at least

30% every weekend

due to deals!

Luxury buyers

The desire for luxury

brands is fast

spreading outside of

Bombay and Delhi

Convenience seekers

I can even specify what

time I want the goods to

be delivered home

Experience seekers

It’s the simplest way to

excite your visuals and

make sure you indulge.

Loved how they

packaged the dress and

sent it

It offers the best of Indian

natural hand crafted

products while

simultaneously providing

livelihoods to rural

artisans

Ethically conscious

Niche groups

Only Flipkart has

managed to supply me

with Manga, Japanese

literature, that's

otherwise difficult to

find

Source: Web search; Interviews; Blogs

WHAT ISSUES DO THEY FACE WHILE

SHOPPING ONLINE?

Trust

Lack of a touch experience

Noise: Choice dilemma

Disaggregated information and offers

One size fits all

Hidden costs

Inability to bargain

…

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INTRODUCING CUPONATION: HOW IT HELPS?

Direct and faster free

access to codes for multiple

stores from the homepage

itself

Studies reveal: 33% Indians

purchase most frequently

from websites which allow

them to select products from

many different stores

(Websearch)

Top 20 deals of the week

with ‘deal guru’

recommendations for easy

choices

Retailer ratings

associated with products

Newsletter and social

media (Google+/

Facebook) updates with

must-have offers

Information, codes available

across various categories

of products (e.g. travel,

lifestyle, food etc.)

Special events/ bargain

offers and codes for

different segments (e.g.

Father’s day)

Not adhering to one-size fits

all philosophy

Clutter free design with

direct access to codes

Direct information for

various segments

Simplified choices with

expert recommendations

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Sources: Nielsen, 2011; Team analysis

WHAT HAS CUPONATION DISCOVERED?

0% 50% 100%

India

Brazil

Italy

France

70%

73%

87%

89%

9

Shopping online 1-5 times a month

Base: India (600); Brazil (930); Italy (390); France (190)

Question: How many times in a month do you shop online?

Number of times Indians shop

70%

22%

5% 3%

1-5

6-10

10-15

Over 15

HOW MANY WOMEN ARE SHOPPING ONLINE;

HOW FREQUENTLY?

10 10

# of times shopping in a month

73%

19%

3% 5%

1-5

6-10

10-15

Over 15

Demographics: Age groups

43%

46%

11%

Upto 25

25-35

Over 36

62% 85% 81% Women

shoppers

Total Base of women: India (370); Brazil (750); Italy (330)

WHAT ARE INDIAN WOMEN SHOPPING FOR?

11

Online shopping product categories

76%

16%

8% Fashion

Electronics

Entertainment

Top 5: Favourite online destinations?

Total Base of women: India (370); Multiple answers allowed

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OTHER ONLINE STUDIES CONCUR

12

From Google’s women on web study

• Out of 150 million Internet users in

India: 60 million are women

• 75% of the women under 35 years

• Fashion biggest category (Skin care

72%)

• 80% recommend purchases to others

Sources: Websearch for Google’s women on web study, 2013; The Economic times, 2013

it is heartening to see that the

women user base is also

increasing rapidly…it is clear that

Internet is empowering Indian

women with easy access to

information and helping them to

make more informed decisions in

their day-to-day life- Google India

In India, e-commerce has

primarily focused on men on the

assumption that women don't buy

independently. These sites (online

lingerie prove that women buy for

themselves and take decisions

when products and experiences

are tailored for them- Kalaari

Capital

WOMEN AND COUPONS?

13

81% 83% 83% Women

& coupons

Total Base of women: India (370); Brazil (750); Italy (330)

0 10 20 30 40 50 60 70

Search Engines

Newsletters

Blogs & SNS

None

How do you search for coupons or discounts online? (% of total)

HOW IS CUPONATION WORKING FOR INDIAN

WOMEN?

Sept, 2012

• CupoNation starts PAN

India operations from

Gurgaon

• CupoNation establishes a

strong retail network (e.g.

popular fashion retailers like

Jabong, Myntra, Zovi etc.)

• Strong online presence built

for easy discoverability

Jan, 2013 Feb, 2013

• Special event

offers launched

• Multiple retailers

involved in discount

options for

occasions

• International

Women's Day,

celebrated with

"Celebrate

womanhood

by taking care

of yourself"

• Deals for

feminine

products

• Family focus:

Father’s day

event celebrated

by supporting

children from

SOS

• Consumer survey

for building

‘understanding’

of needs

June, 2013 Mar, 2013

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CUPONATION’S WOMEN’S DAY CAMPAIGN

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Key success factors

Celebrated International

Women’s day on March 8, 2013

Offered special discounts and

deals on feminine products

Launched ‘Celebrate

womanhood’ and ‘keep yourself

safe’ by promoting condoms for

women

Focus on a social promotion:

Promoted proactive measures

for Indian women through

promotion highlighting values like

safety & liberation

Easy access to product codes:

High discoverability and

awareness building for feminine

products directly on homepage

Impact

2nd best media campaign

results for CupoNation

Strong media coverage and

awareness building

Blogger coverage highlighting

innovativeness of campaign

Launch and growth

ARE YOUR EXPERIENCES DIFFERENT?

Let’s discuss!

Find CupoNation India on Facebook, Google+, Twitter

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APPENDIX

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STUDY METHODOLOGY & LIMITATIONS

Methodology:

Internet based survey conducted in 4 countries globally

Sample size total: 600 (India)

Bloggers contacted proactively for survey

Time period of survey: June 2013

Limitations of the study:

The sample size was collected via non-random

convenience sampling and thus may have a slight bias

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INTRODUCING CUPONATION: HOW DO WE

HELP?

19

33% Indians purchase

most frequently from

websites which allow

them to select products

from many different

stores - Websearch

I can easily find my

favourite store coupons

at Cuponation. Their

exclusive coupons add a

lot of value- Blogger

Multiple

stores, easy

interface

Easy

accessibility Direct access to

dealer codes for

free!

INTRODUCING CUPONATION: HOW DO WE

HELP?

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Easy choices;

Expert

recommendations

•Multiple segments

•Varied options

•Simple selection interface