E-COMMERCE STRATEGY CHALLENGER 2012

PRASAD KUMAR NAYAK.VISHWA VISHWANI SCHOOL OF

BUSINESSHYDERABAD

Indian online retail market• Indian internet market is growing at a rapid

pace and it is considered to be one of the worlds most potential internet market today.

• 140 million Indians now have net access .India is now ranked 3rd after China and US in internet users.

• India is adding internet users at the rate of almost 5-7 million a month .At this current pace India is going to beat US within 2 years.

• India now contributing 6% of the world’s internet population.

• The Indian retail market is of $720 billion , with the organized segment touching $90 billion .

• It is expected that Indian e-commerce would be contributing 4.5% of the total retail sector by 2016.

• Some of the major e-commerce players are flipkart.com,ebay.com,junglee.com,homeshop18.com,yebhi.com,snapdeal.com etc.

Business models and segments in online retail

• Ensuring that the basic requisites are in place.• Integrating back end with online front end.• More product more web site trafficking and more chance of

business.• Distribution,warehouse,logistic and product delivery system

should be more effective.• Targeting customer and serve them accordingly is most

important.• Pulling the customer by giving them value what they need.• There should be transparency in your service.

Legal Implications for India market

• To represent your company in various matters in India e.g., acting as buying/selling agents in India, etc.

• To conduct research work in which the parent company is engaged provided the results of the research work are made available to the Indian companies

• To undertake export and import trading activities• To promote the possible technical and financial

collaborations between the Indian companies and overseas companies

• For intermittent jobs, it may make better sense to pay only when you have work

• Also if the volume of work were small, it would always be difficult to achieve economy of scale

• Outsourcing ensures that while you may not be the best in a certain area, you are giving the work to someone who's really good at it. That leaves you to focus on what you do best

• Many Indian companies do a lot of business with International customers, so they would often be able to bring in expertise and advice from their earlier work

• Lastly but definitely not least, you have no legal hurdles to overcome when you outsource

Delivery network

• Acquire a local player to make the distribution system easy.

• Establish a warehouse in every major city in India like Mumbai,Delhi,Chennai,Kolkata,Hyderabad etc.

• Agent system can play a vital role to deliver your product quickly .

• Efficient inventory system.• India is a geographically complicated country

and languages varies from state to state so you need to employ local people for the product delivery system.

• Use effective communication device to locate your product at a particular instances.

• The packaging system should be so strong that it could protect the product.

Marketing budget

• High trafficking is most important so you need to pull the customer by giving advertising in different medium.

• In India people spends 30% of their internet time in google ,so google is agood medium to give ad.

• 95% of internet population in India are using social networking sites so it will be wise decision to give ads in facebook,orkut etc.

• Spending of 30% of budget on ads in India will be wise decision.

• Spending another 30% on distribution system.• Giving more discount to the customer and free

product on each product to retain the customer like giving a pen every time a customer buys a book but it should not be mentioned in the web site.

• Comparing your product pricing and visibility with your nearest competitors.

• Frequent change in the design of your web site so that the customer would not get bore after 4-5 visits to your web site.

• Targeting mainly to the youth of India because in India 65% of population are under the age of 35 and they contribute more to the internet.

• Include a wide varieties of product to attract more customer.

Marketing strategy

• Indian customers are mainly price and offers driven so try to give maximum possibility of discount to the customer.

• When a customer buys any product online he generally compare the price and offers of the same product in different e-commerce website and which ever is economical he buys that only .So you need to show case yourself better than your nearest competitors.

• Indians generally buys more during the festival season so buyglobal.com can utilize this opportunity and attract more customer.

• The web site which is more attractive will attract more customer.

• The MIS system should be more powerful for the future reference.

• You should be stick to your words means what you says you should keep your promises.

Buyglobal.com to enter Indian market or not

• According to me Buyglobal.com should enter Indian market because it is a very potential market.Before entering to Indian market it should merge with a Indian company to have a delivery network in India that can afford its pricing strategy.one more thing it should do that is change the name because Indians are very patriotic in nature they don’t like a foreign tag.The company should give a Indian name that can attract the buyers.

REFERENCE

• The Times Of India• Business World magazine• Prlog.org• Marketing Whitebook