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Amazon India - what should be their next step. E-commerce is picking up . Supply Chain Management is smoothning up .. But local players like Flipkart , SnapDeal which have advantage of being the first player , are making a kill.
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Amazon India road ahead…..
(pssst…letting the story out .. ) and why it will be through mobile..
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The value that is Amazon India
Online Market place Easiness and Convenience to
buy Variety of Options At best price International/exclusive
products
Platform/ Billboard Footprints (Reach to
customer) Low OPEX & CAPEX Easy Entry / Exit Barrier Customer Feedback Payment Terms
CustomersRetailers/Vendors
Challenges
• Regulations – Cant Stock and Sell own products..
Just be platform as of now ..to bring retailers/sellers and buyers together
• Discovery – Internet penetration is just 8%– Brand Confusion
Start from scratch with Junglee
• Established Competitor– Expectations set on Reliable and Fast Delivery – Cash on Delivery – Try and Buy (Reverse logistics + long window )– Issue of no commitment to buy
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India Story – the other side ..2 interesting events
200%
3% 75%
1999 2012
Active mobile phone connections
Mobile internet usage has outstripped Desktop internet “Data Tariff war” by Telecom operators - trend Tablet sales boom – people using internet from
tablet/mobile than from PC/Desktop/Notebook
Growth of monthly active Facebook users in India compared to last year
50% growth in Facebook registrations compared to last year Twitter, Bubbly and now WeChat each getting phenomenal
results
And the magic wand is …………MOBILE
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Mobile best discoverable medium Commitment to pay challenge
answered using telecom billing channel, also mobile payment solutions
Mobile and call records are most effective to make it viral and introduce gamification
Mobile solutions to establish relationship with retailers, logistics and other partners
Customer view – mobile strategy
MOBILE
VIRAL
Winning the Customer
Inform: Tell her about
new products,
relevant deals, local
context
Excite: Tell her what her friends just bought
Commitment to
buy OR Buy :
Telecom Billing
Bring friends
Check Products/delivery status
System view- mobile strategy
Smart Phone
Feature Phone
Non – Data
Data Customers
Create Apps Make it discoverable Integrate with Phonebook,
SIM tool kit Enable Payment
Off-deck, On –deck with Telcos – discovery
Handset relationship Subscrptn based service
USSD mode Short code across
operators Browser version Triggers for pull Circle based promotions Discovery hooks Evnt & Subscrptn service
10%
90%Make it Viral
Gamification
What value could we bring
Sales
Product Mgmt
Strategy
• Excellent Relationship with Buyers at Telco's /Handset Players (10 yrs. in this space, experience across the value chain)• Understand how “it” has to be pitched from contacts to contracts • What should be the “hooks” to be acquired – so that discovery,
acquisition, referral and revenue is easy
• Make the product “viral” – piggyback on social media • Introduce gamification • Location Based features • Auto Suggestion • Smartphone , Feature Phone and mobile –non Data product strategy
• Understand the market- scan for possible acquisition for strengthening position in value chain
• Create local support• Open up channels for metros, Tier 2,3 and Rural areas too • Bring out the next avtaar - Venture into space of “deals” , “offers” ex:
movie tickets
PC’s : 16 % Growth Notebook: 26 % Growth Desktop: 11% Growth
Tablet:40% Growth
India : From 2011 and 2012
