E-Retailing

Traditional Retailing

Retailing is the process of selling products or services to consumers for

their non-business use.

Product satisfaction and value satisfaction is essential.

What is e-retailing

Shopping through the Internet and other media forms.

Anything anywhere at the click of a button.

Anything anywhere refers to products and services

Commonly known as e-tailing, electronic retailing.

E-retailing

E-retailing is B2c(business to customers)business model that executes a transaction between businessman and final customer

Subset of e-commerce

e-tailersRetailers who sell over the Internet

Electronic Retailing Size and Growth of the B2C Market

Reported amounts of online sales deviate substantially based on how the numbers are derived

Annual online 2004 sales were estimated to be over $70 billion

The average online shopper spent over $350 per quarter

Forrester Research estimates that e-tailing will reach $316 billion by 2010

E-Retailing Business Models

E-Retailing Business Models Classification by Distribution Channel

1. Mail-order retailers that go online2. Direct marketing from manufacturers3. Pure-play e-tailers4. Click-and-mortar retailers5. Internet (online) malls

E-Retailing Business Modelsdirect marketing

Broadly, marketing that takes place without intermediaries between manufacturers and buyers; in the context of this book, marketing done online between any seller and buyer

Direct Marketing: Land’s End Landsend.com Increase sales by going online Website contains product catalogs and features

My Virtual Model Wide range of fabric to choose from Affiliate program: pay 5% commission Real-time chat with customer service reps Less than 2 days delivery 16 distribution outlets and

the US and 3 in the UK 88% of their customers are college graduates

E-Retailing Business Models Direct Sales by Manufacturers

Sellers can understand their markets better because of the direct connection to consumers

Consumers gain greater information about the products through their direct connection to the manufacturers

E-Retailing Business Modelsvirtual (pure-play) e-tailers

Firms that sell directly to consumers over the Internet without maintaining a physical sales channel

Low overhead costs General purpose or specialized

click-and-mortar retailersBrick-and-mortar retailers that offer a transactional Web site from which to conduct business

Sells in stores, via phones, over the Internet, via mobile devices

E-Retailing Business Models Retailing in Online Malls

Referring Directories Malls with Shared Services

Representative B2C Services Postal Services Services and Products for Adults Wedding Channels Gift Registries

What to sell online

Products that are Unique and can sell cheaper

Products that require consumer research

Items that are hard to find (i.e., collectibles and specialty items)

Products that appeal to tech-savvy users

What to sell online Computer

hardware and software

Consumer electronics

Office supplies Sporting goods Books and music

Toys Health and beauty Apparel and

clothing Jewelry Cars Services Others

Characteristics of Successful E-Tailing

High brand recognition A guarantee provided by highly reliable or well-

known vendors Digitized format Relatively inexpensive items Frequently purchased items Commodities with standard specifications Well-known packaged items that cannot be opened

even in a traditional store

Elements of e-retailing

Combining new technologies with elements of traditional stores and direct mail models

Using new technologies to replace these elements

e-mail messages for communication

Transactions on on-line catalogues can replace printed catalogues

AIDA in e-retailing

AIDA is a direct mail marketing acronym

Attention - grab the visitor’s attention

Interest - pique their interest in your product or site

Desire - build desire for the product

Action - Get them to follow a call to action

Marketing Mix for e-retailing

The 4 C’s used in e-retailing are

Convenience to the customer (Place)

Customer value and Benefits (Products)

Cost to Consumer (Price)

Communication (Promotion)

Consumer Value Management

Consumer

Enthusiasm

Category Management

Supply Chain

Mgt.

Strategies in e-retail

Profitable Growth

Efficiency

Customer value management is essential in every retail operations.

Characteristics of an e-retailer

Hard work

Entrepreneurial spirit

Careful business planning and willing to take risks

Need for achievement

Self-confidence and passion for the business

A little luck

Successful e-retailers across the World

Amazon – www.amazon.com – Books

Dell – www.dell.com - Computer hardware

Marks and Spencer – www.marksandspencer.com – Clothing, gifts

Boots – www.wellbeing.com – High street Boots

Do’s in e-retailing

Make it easy to buy

Provide Good service and aftercare

Membership incentives

Human communication, chat rooms and bulletin boards

Make e-shopping an enjoyable experience

Don’ts in e-retailing

Providing your best page at the last

Usage of too many graphics

Leaving no white space in the page

Having too many sequential clicks

Usage of too much long winded wordings.

BooksBooksKindleTextbooksMagazines & Newspapers

Movies, Music & Games

Movies & TVBlu-rayVideo On DemandMusicMP3 DownloadsMusical InstrumentsVideo Games

Digital DownloadsKindleVideo On DemandMP3 DownloadsAmazon Shorts

Computers & OfficeComputers & AccessoriesSoftwarePC GamesComputer ComponentsOffice Products & Supplies

ElectronicsAudio, TV & Home TheaterCamera, Photo & VideoCell Phones & ServiceMP3 & Media PlayersCar Electronics & GPSVideo GamesHome AppliancesMusical InstrumentsKindleAll Electronics

Home & GardenKitchen & DiningFurniture & DécorBedding & BathHome AppliancesVacuums & StorageHome ImprovementPatio, Lawn & GardenPet SuppliesSewing, Craft & Hobby

Grocery, Health & Beauty

GroceryNatural & OrganicGourmet FoodHealth & Personal CareBeauty

Toys, Kids & BabyToys & GamesBabyApparel (Kids & Baby)BooksMoviesMusicVideo GamesSoftware

Apparel, Shoes & Jewelry

Apparel & AccessoriesShoesJewelryWatches

Sports & OutdoorsExercise & FitnessCamping & HikingAction SportsTeam SportsCyclingGolfFan GearAll Sports & Outdoors

Tools, Auto & Industrial

Power & Hand ToolsOutdoor Power EquipmentHome ImprovementLighting & ElectricalPlumbing FixturesAutomotiveMotorcycle & ATVIndustrial & Scientific

 

consumer trust in e-retailingPersonality-based factors

Perception-based factors

Experience-based factors

Knowledge-based factors

Attitude.

Benefits of e-retail to a sellerIncreased sales opportunities and decreased transaction costs

Ability to operate 24/7

Ability to reach narrow market segments

Increased speed and accuracy of information exchange

Ability to maintain strong customer relationships

Benefits of e-retail to a Buyer

Wider product availability

wider buying options

Ability to shop 24/7 and easy comparison shopping

Quick delivery of digital products

Ability to create a one-on-one relationship

Merits of e-retailing

1. convenience and Wider choice

2. Better value and a Unique gifting opportunity

3. Saves time and strain

4. Know customer preferences

Bottlenecks of e-retailing in general &in India

1. Problems maintaining security and reliability

2. Global market issues of language, currency etc.

3. Increased instances of failure to pay or fraud

4. Inability to touch and feel products before purchase

5. Complicated legal environment

Bottlenecks of e-retailing in India Problems with the Payment System Offline presence

Products offered at discounted ratesLanguage Problem

Reality of Success

First mover advantage

Competitive advantage- Price and Service features

Get fulfillment and customer service right

Explain the interactivity of the internet to your customers

Explore opportunities for new revenue streams

Conclusion Customers keep coming back only if earlier shopping

experiences have been pleasant and successful.

In this intricate business world, the e-retailing will become tremendous business strategic concept.

Most profitable method of business process in coming decade to the textile and garment industries.

THANK YOU

SAROJ BORANAROLLNO.4