Upload
ravi-sankar
View
216
Download
0
Embed Size (px)
Citation preview
8/2/2019 E Retailing 2
1/30
ELECTRONIC RETAILING
Group Members:Lija
Manzoorul
Nishad
RavishankarRinil
8/2/2019 E Retailing 2
2/30
INTRODUCTION
The e-retailing is the concept of selling retail goods using
electronic media, in particular, the internet.
The term coined in early 1995 seems an almost in evitableaddition to e-mail, e-business and e-commerce.
E-Retailing stores sell online promotion only for goods that
can be sold easily online, e.g., Amazon did for Books & CDs,etc.
8/2/2019 E Retailing 2
3/30
The online retailing require lots of displays and specification
of products to make the viewers have a personal feel of the
product and its quality as he gets while physically present in ashop.
e-Retailing is synonymous to B2C business model that
executes a transaction between businessman and the finalconsumer.
Electronic retailing or e-tailing, as it is generally being called
now, is the direct sale of products, information and servicethrough virtual stores on the web, usually designed around an
electronic catalogue format and auction sites.
8/2/2019 E Retailing 2
4/30
Essentials of E-Retailing
Attractive business-to-consumer (B2C) e-commerce portal
Right revenue model
Penetration of the Internet
8/2/2019 E Retailing 2
5/30
Advantages of E-Retailing
The electronic channel gives the existing brick-store retailers
an opportunity to reach new markets.
For the existing retailers, it is an extension to leverage theirskills and grow revenues and profits without creating an
altogether new business.
E-Retailing overcomes some limitations of the traditionalformats, for instance the customers can shop from the comfort
of their homes.
8/2/2019 E Retailing 2
6/30
The e-commerce software that also traces the customers
activities on the Net enables e-retailers to gain valuable
insights into their customers shopping behavior
The e-retail channels transcend all barriers of time and
space. The retailers server must be on 24*7. An order can
come from any customer living any place at any time of theday.
8/2/2019 E Retailing 2
7/30
Shortcomings of e-retailing
It lacks an emotional shopping experience that the customercan get in a personal shopping store.
It being container of intangible merchandise (i.e., virtualdisplay of merchandise) does not provide sensory support tothe customer, these the customer cannot hold, small, feel, ortry the product.
On line customers are reluctant to part with their credit carddetails on net, fearing they may be misused. It arises securityissues. The customers are not yet convinced about thefoolproof status of this method, especially in Indianenvironment.
It is lacking in family shopping experience which the Indiancustomers enjoy at the weekends, and particularly duringfestive seasons and marriage marketing.
8/2/2019 E Retailing 2
8/30
Success factors for e-retailing
The important factors are:
Strong Branding
Unique Merchandising Competitive Pricing
Better CRM
Better Distribution Efficiency
Soothing Website Design Transparency in Services.
8/2/2019 E Retailing 2
9/30
Challenges of E-Retailing
Unproven Business Models
Requirement to Change Business Process
Channel Conflicts
Legal Issues
Security and Privacy
8/2/2019 E Retailing 2
10/30
8/2/2019 E Retailing 2
11/30
E-catalogue
E-Catalogue is a database of products with prices and
available stock
It is a form of non-store retailing in which retail units inform
prospective clients about their merchandise or service through
mails.
Catalogue retailing is of two types: general merchandise-
catalogue and specialty-catalogue retailing.
Catalogues are differentiated in to two based on their target
audience : consumer and business to business.
8/2/2019 E Retailing 2
12/30
Advantages of catalogue retailing
Customers can shop when it is convenient for him.
Saves resources on account of time and travelling cost.
Relevant product information is available in detail.
There is space for unlimited product display.
Catalogue hallows for low overheads and reduced cost of
sales.
The marketer has total control of the selling process.
Modern direct marketing techniques allow prospective clientsto be targeted based on their known interests.
8/2/2019 E Retailing 2
13/30
Web Market Characteristics
Technology Infrastructure
Channel Integration
Information Intensity
8/2/2019 E Retailing 2
14/30
Technology Infrastructure
Web Opens a new space for retailing
Customers can visit virtual stores, browse through product
offerings, and place orders as they do in traditional stores
Web technology supports market features inexpensively, such
as 24x7 availability, fewer/no geographic boundaries,
interactive two-way communication, search facilitation andinformation/knowledge sharing
8/2/2019 E Retailing 2
15/30
The availability of information gathered through customer
interaction allows marketers to produce business intelligence
to better support their customers
Developing and employing new technologies and applications
may provide marketers with new business opportunities and
advantage
8/2/2019 E Retailing 2
16/30
Channel Integration
The powerful integrated environment of the Web can affect the
marketplace in many ways
Consumer orders can be automatically processed and routed tosuppliers
Information channels are integrated, with information flowing
both ways between vendors and customers
8/2/2019 E Retailing 2
17/30
Compared to information push from marketers to customers
through traditional media such as television, the Web is a
"pull" medium where customers purposely search for desired
information.
The integrated Web channel also facilitates consumer
interaction and favors interaction marketing
8/2/2019 E Retailing 2
18/30
Information Intensity
The Web is a truly information-intensive environment
Vast amounts of information can be collected, integrated,
processed, presented, and accessed through the Web by bothmarketers and consumers
Marketers now can track detailed information for all e-tailing
consumer interactions, not just select samples
8/2/2019 E Retailing 2
19/30
Comparison of web and traditional
retail marketsWeb Market Traditional Market
Technology is a determinant for
market development
and business strategies
Serves as a supportive
tool
Channels Integrated Separate
Market Information Intensive Limited
8/2/2019 E Retailing 2
20/30
Practices in Online retailing
1) Go to the buyers
Quickly and cost effectively gain access to and capture
qualified customers
2) Optimize Home page DesignYour home page allow visitors quick access to purchase
options
3) Content Partnerships
4) Excellent Store Locator
5) Good Customer support options
8/2/2019 E Retailing 2
21/30
Consumerism
Activities of consumers and other consumerorganizations aimed at protecting rights of theconsumers.
Countervailing activities against maxim of caveatemptor.
8/2/2019 E Retailing 2
22/30
Ethical and green consumers
Consumer whose purchase is influenced by ethical believes
such as animal welfare, etc
Eg. Body soap
Green consumers are in line with environmental movements
8/2/2019 E Retailing 2
23/30
Environmentalism
Protection of the environment resulting from:
-Production
-Distribution
-Marketing activities
Retailers responses to environmental concern:
1. Related to product: eg. Safeway
2. Related to retail operations
8/2/2019 E Retailing 2
24/30
Cont.
Retailers environmental initiatives:
3 R s
Reusing
Recycling
Reducing
8/2/2019 E Retailing 2
25/30
Ways:
Recycle paper, plastic, aluminum, ink cartridges.
Reuse packing materials and cardboard boxes.
Use double-sided printing when possible.
Reduce paper transactions by going digital for bill
payment, vendor ordering, invoices, online banking, e-
mail and faxing directly from your computer.
Keep up with regular maintenance of all mechanical
equipment.
8/2/2019 E Retailing 2
26/30
Cont.
Eliminate disposable cups, plates and utensils in the breakroom. Replace with permanent dishware.
Switch to rechargeable batteries. Large office supply storeseven have collection centers for recycling dead rechargeable
batteries. Use eco-friendly cleaning products that are biodegradable and
non-toxic.
Purchase energy-efficient PCs, printers, and other equipmentwith the Energy Star label.
Donate or recycle old computers and equipment.
8/2/2019 E Retailing 2
27/30
Ethical sourcing
Ensuring that products sold by retailers do not exploit workers
in other countries.
Two strands:
1.ETI
2.fair trade
8/2/2019 E Retailing 2
28/30
Cont
ETI
Tripartite alliance
Main provisions are:
-Employment is freely chosen-Safe working conditions
-No child labor
-No discrimination
-No extra working hours
8/2/2019 E Retailing 2
29/30
Cont
Fair trade
Paying producers fair price to cover their basic needs and
provide margin for investment.
Also paid with advance payment when requested.
In return producers need to ensure that there activities are
sustainable
Many organizations carry fair trademark- coffee, tea, honey,
mango, sugar
8/2/2019 E Retailing 2
30/30
THANK YOU