Business, Marketing, Strategy

Four reasons why Diwali Shopping is different in 2014

Diwali Shopping Phenomenon

Nationwide, its been widely acknowledged that Diwali is the biggest festival in India. And, what does a festival mean? Festival means meeting family, friends, lots of sweets and of course shopping! This has been the norm for decades! But then, 2014 was different for India, so much so, that Minister for Commerce & Industry – Nirmala Seetharaman had to say this about complaints on Flipkart Sale Day

flipkart big billion day

Flipkart’s ‘Big Billion Day’ sale on Monday, that offered steep discounts on various products, has raised concerns among small and big traders that such campaigns would badly affect players in the traditional retail market.
 
“We have received many inputs. Lot of concerns have been expressed. We will look into it,” Commerce and Industry Minister Nirmala Sitharaman told reporters here.

So, what has changed? Here are the four things that have changed in the aftermath of the Big Billion Day on Flipkart, and similar discounts on all other players!


Smartphones have gone truly mainstream

Diwali Dhamaka week Amazon

While mobile was there in the pockets of Indians for a long time now, what has happened is that Smartphones have truly gone mainstream. Look at the offers going out – there is a smartphone element to everything . There is such a race to push apps to consumers, that extra discounts are being offered to make the app more attractive. This phenomenon started with Whatsapp going mainstream, and more and more people taking up data connections. The other day, the driver who drove me to the airport in Ahmedabad asked me the following:

Kya iss Samsung pe Whatsapp aata hai? (Does whatsapp work on this Samsung phone?)

This is truly the first MOBILE FIRST Diwali in the country, and the offline retailers just weren’t ready for it!

Online retailers and their funding warchest

Online retail makes anything available everywhere, that too at a great price. Checking top comparison engines tells you the story – flipkart, amazon, snapdeal, myntra are all in a league of their own when it comes to prices. Offline retailers will have to come up with something innovative as well, since Online retailers are entering the market with huge funding – Flipkart recently raised one billion dollars, amazon 2 billion, and Snapdeal too raised undisclosed funding with Ratan Tata himself participating.

Inhibitions to buy online reducing

Even now, roughly 10-15% business has gone online, and not more. Yet, why the offline retailers are feeling the pinch is that these 10-15% consumers were the top buyers. They were the ones who brought ‘Diwali’ to their shops in previous years. Now, with Mobile apps etc, people can shop on the go, and the products get reliably delivered to their offices/homes within 2-3 days. They have seen this with friends, and this has reduced inhibitions to buy online.

Unconventional tactics – Customer focus and unlimited choice

Check Snapdeal today on SnapdealOne big change that online players have brought to the table is customer focus. In order to attract customers, Online Players are taking customer service and customer focus to another level. Product bunding, discounts when shopping above a certain amount, same day delivery etc are taking customer focus to another level. Such level of customer focus isn’t found in the offline world. Just creating a huge offline store for customers to come and shop isn’t going to be enough from now on. True problem solving for customers is something that will win customers from now on. This has stumped the offline retailers in some way.


The future – will it be Online all the way?

So are winds blowing the online way only? I wouldn’t say that just yet! I would still back offline giants to come strongly back into the ring, with innovative solutions to overcome these challenges. They surely can, and thats when it would be interesting!

But this Diwali, the true winner in this hullabaloo has been the consumer! ‘Grahak Shakti’ has truly been on view in Diwali 2014, and that is the prime reason why 2014 Diwali has been different!

Like what you read? Share in your network!
Standard
Business, Technology

Flipkart and its BigBillionDay!

Yesterday, Oct 6, 2014 was a huge day in Indian Ecommerce. It all started with this ad by Flipkart, and Snapdeal tried to ambush it right on TOI front page itself! (Surprise, surprise!) .

In any ways, here’s what I thought of the whole thing –

  • I thought largely the BigBillionDay was executed well
  • Of course there were aggrieved customers, and posts from an ‘esoteric’ blog about how prices went up and down, but still I thought, a lot of consumers actually did prepone their buying decisions and that was great for the ecomm players.
  • In fact, even other ecomm retailers benefited in this frenzy! Won’t be surprised if one found out that other players like Amazon, Infibeam, Snapdeal also benefited from the #bigbillionday
  • This was basically an attempt by Flipkart to emulate Alibaba’s strategy of achieving 5x sales, which Alibaba routinely executes, and with aplomb on Singles’ day – Nov 11 in China. -Check this BBG article to know more!

Alibaba Group Holding Ltd., China’s largest e-commerce company, broke its one-day sales record by more than 80 percent as it heads toward an initial public offering that may be valued higher than Facebook

Taobao and Tmall, Alibaba’s two main platforms, topped 35 billion yuan ($5.75 billion) in the 24-hour period, surpassing last year’s sales of 19.1 billion yuan, the company said on its official Twitter Inc. account. Yesterday was China’s Singles’ Day, a local twist on Valentine’s Day, and e-commerce firms marked the occasion by flooding the Internet with promotions and fueling demand on China’s biggest online shopping day

What’s more, Flipkart has got a lot of marketing eyeballs, for free as well! Flipkart, and Indian Ecommerce is slowly reaching heights that few have reached, and to me, this is just the beginning! Quite exciting times for Indian Internet space, I say!

Like what you read? Share in your network!
Standard
Entertainment, Entrepreneurship, Marketing, Web

Amazon Junglee!!

About 150 million people in India or around 75 million households are ready for ecommerce in India today. However, less than 10 million are engaged in active ecommerce today. The potential of consumer e-commerce in India by 2024-2025 is likely to touch around 594.8 million individuals or 297.4 million households. You can only guess the market size of the ecommerce industry in the coming decade!!

Amazon India has gone live with the launch of portal, Junglee.com, which Amazon acquired in early 1998 from Indian entrepreneurs Rakesh Mathur and Ashish Gupta. Junglee is an online product comparison and advertising site with several first-of-a-kind features such “real-time customer reviews” from Amazon.com, inline seller store locator for sellers in India and one-stop access to selection from Indian and international sellers. Junglee aggregates detailed product information including customer reviews, price, and shipping speed across multiple sources, including Amazon.com, so customers can research products and evaluate buying options to make an informed purchasing decision. Customers can also write their own reviews, read millions of real-time customer reviews from Amazon.com, “Like” products or sellers, and share products through Facebook, Twitter and email.

Junglee is positioned as a market place which makes buyers and sellers meet, instead of an ecommerce website. It could possibly become a means to drive people to Amazon India in future when they launch the full fledged service in India. The incentive scheme for sellers to post their products on Junglee is very interesting. They can:
1. Drive traffic to your store/website: By advertising products on Junglee.com, one can convert Junglee’s traffic into their own customers
2. List Product Ads for free: No listing fees, no cost per click or subscription fees. On the other side, Ebay.in charges sellers to post ads!
3. Reaching qualified shoppers: Junglee puts products in front of customers who have expressed intent to purchase those exact products
4. Highly targeted placements: Recommended buys when classified in categories means a highly focused sales channel for the sellers

Customers can discover over 1.2 crore products and 14,000 brands, and purchase items directly from hundreds of retailers. Customers can buy products online by following the link to the seller’s website or find a seller’s physical store if they would rather purchase the product in person or call the seller and place an order by phone.
Junglee has an ambitious vision of organizing selection and buying choices. They are relentlessly focused on adding selection and making it convenient for customers to find, discover, and shop anything using the service.

Given that Amazon is launching its ecommerce service in India soon, Flipkart and other ecommerece websites need to ramp up at the earliest and quickly build presence in Tier-II and Tier-III cities of India. Flipkart or Amazon? Do you have a brand loyalty or you will go after the one offering lowest price?

Like what you read? Share in your network!
Standard