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Few Media Houses talking of this problem
E-commerce boom hurts brick-and-mortar retailers.
Brick And Mortar Stores Matter More Than Ever
Retailing:Â Confronting the Challenges That Face Bricks-and-Mortar Stores
Click-and-mortar: Traditional retailers try to warm up to digital to stay ahead
Indian Retail Market size
92%
2%6%
Indian Retail market Size in 2015
UnorganizedEcommerceBrick & Mortar
75%
16%
9%
Indian Retail Market size 2020
UnorganizedE-commerceBrick & Mortar Model
Source : http://indianonlineseller.com/2014/12/indian-e-commerce-in-a-nutshell-important-trends-in-the-industry/
Major Problems being faced by Major Brands
• Discount war has moved customers from offline to online shopping.• Availability of customer information helps online retailers understand
customer needs and this gives them edge over offline retailers who just have a customer’s purchase history.• Unlimited stock, ease of use etc makes customer buying experience
better.
Existing Problem is being solved by the below ways • SMS is send to all registered customers about Sale/offer & New
arrivals.• Masses are also reached via Social media channels like Facebook,
twitter, Instagram etc.• Creating a more robust loyalty program.• Cloning E-commerce model.• Using omni channel ( Both Brick & Mortar and Online to drive sales)
Not Really !• SMS blast just updates registered users. What about others?• Social Media is too crowded.• If loyalty program was an answer, then it would already would have
been a hit.• Cloning the E-commerce model still isn’t a answer. Companies like
Flipkart, Snapdeal, Amazon combined have a market share of 94% approx. in the E-tailing business.• Moving Online doesn’t meant, they wont want revenue’s from Offline
retailers. They have already invested a lot of money in building the infrastructure.
Our Mobile Platform enables users find information like :
Store Inventory
Based on Brand Preference
Store Surprise
information
In house sale
Based on User’s Location
New Arrival
ReviewsGet push notification on new things happening in the store
Store location
Source : https://think.storage.googleapis.com/docs/how-advertisers-can-extend-their-relevance-with-search_research-studies.pdf
Source : https://www.thinkwithgoogle.com/articles/how-digital-connects-shoppers-to-local-stores.html
What does some Industry experts Says?
Is cloning the only option for offline retail to take Unicorns of e-retail by the horn?• Offline retailers should bring their inventory feed online via mobile to
be discovered by people who stays in proximity of their stores.• http://yourstory.com/2015/05/offline-retail-future/
How can offline retail deal with ‘content to commerce’ problem?• It is the search & discovery where offline retailers are losing consumers, and this
exodus can be reversed to some extent by bringing back local inventory data on our mobile.
• http://yourstory.com/2015/05/offline-retail-content-commerce/
By – Mr.Nihar Ranjan : http://yourstory.com/author/nihar-ranjan/
Market SizeTotal Retail Market Size of India in 2015 $ 600 Billion
Total Brick & Mortar Model Market size $ 32.4 Billion
Marketing Spending by Brands $ 800 Million
Total Target Budget(Social media + Mobile marketing+ search marketing)
`$ 288.8 Million
Our Market Size ( 8% of the Total Target Budget)
$23.104 Million
Business Model
We will work on Cost per Acquisition model
Total no of target users in top 7 cities• Age Group – 18-34 years of age• Population Type – Urban• Smartphone Users – Yes• Tax Payers - Yes
2.73 MillionConversion Percentage 15%-20% 0.41-0.55 Million
Commission Charge per Purchase Rs. 100-200
Total Revenue per Year
Assumptions:1) A customer buys only product using
our app.2) Average Purchase size is Rs 2000/-
Rs.4-10 Crore
CompetitorsCompeti
torsCatering to Organized
market
Catering to unorganized market
Social fashion
discovery
Inventory discovery Trans
action
DeliveryStore
location & Review
OnlySale/Offer
New Arrival
Increase Store
footfall
Also caters to other domains
like food,spa
etc
SaleFee Y N N Y N N Y N Y Y N
Shopsity N N N Y Y N Y N Y N N
Findable Y N N Y Y Y Y N Y N N
Roposo Y Y Y N N N N N N N N
Zakoopi N Y Y N N N Y N N Y N
Wooplr Y N Y Y Y N N N Y N N
First Handle
N Y N N N N Y Y N Y Y
Fashalot Y Y N N N N Y Y N Y N