Arora Moda“Jewelry of the Gods”

Christopher BrownResearch & Strategy Proposal10/17/2011

Background

Arora Moda is a small Internet retailer that sells both fine and costume jewelry, including necklaces, bracelets, earrings, and rings. Founded Fort Lauderdale, FL by Christopher Brown, Arora Moda has been in business since 2002.

Primary Customers • Men shopping for their

wives/girlfriends

• Women shopping for themselves

• Men and women shopping for their mothers.

Competitive Advantage

• Aurora Moda’s competitive advantage is its excellent customer support and its “personal shopper” service.

• The personal shopper service is a live chat with a company representative that helps the customer select the best piece of jewelry for their budget and desires

• The company sees spikes in site traffic and sales during the holidays (Christmas, Valentine’s, and Mother’s Day)

Virtual Goods

• The virtual goods industry is booming!

• Analysts estimate that virtual goods could bring in a billion dollars in the United States and around $5 billion worldwide this year

• Arora Moda could use virtual good as an incentive to customers to make a purchase with us.

“It’s not about the goods itself, it’s about the underlying human emotion or desire.”

“The recipient knows the person took time, picked something meaningful and spent money on it.”

Social Commerce• Social commerce is a

subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services.

Integration of Social Commerce

Arora Moda will be able to provide an extensive list services and benefits to our online

customers:

• Receive online group-buy deals.• Flash sales targeted to specific demographic• Sharing of in-store experience online• Receive benefits from customer loyalty online• Reward Facebook credits with purchases.

Success StoriesP&G experimented with a storefront for Pantene, where consumers could purchase products before they were introduced in stores. Not only did this approach integrate F-commerce into the social equation, it satisfied two of the top reasons consumers consistently report why they “follow” and “like” brands in social media: access to exclusive products and rewards or discounts as a benefit of the connection.

References• http://virtualgoodsinsider.com/2009/06/23/five-reason-why-people-send-virtual-gifts/• "The Goods May Be Virtual, But The Profit Is Real" (Miller and Stone, 2009) at

http://www.nytimes.com/2009/11/07/technology/internet/07virtual.html?_r=1• http://socialdegree.com/2009/08/05/4-advantages-of-a-virtual-goods-business-model/ • “Facebook Hopes Credits Make Dollars” (2010) at

http://www.nytimes.com/2010/09/23/technology/23facebook.html?_r=1• “Online Retailers to Offer Facebook Credits as Shopping Incentives” (Van Grove,

2010) at http://mashable.com/2010/09/27/facebook-credits-for-online-shopping/• “The Business Guide to Facebook Part 2: From E-Commerce to F-Commerce” (2010)

at http://www.briansolis.com/2010/10/the-business-guide-to-facebook-part-2-from-e-commerce-to-f-commerce/

• “How Big Retail is Deploying Social Commerce” (2010) at http://socialcommercetoday.com/how-big-retail-is-deploying-social-commerce-presentation-download/