Baby Care Business in Indian Ecommerce Space
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- W i n t e r P r o j e c t 2014 1 | P a g e N e j o S a m u e l V a r g h e s e Project Report On Baby Care Business in Indian Ecommerce Space Area of Project Research- (Retail E-commerce) Faculty Guide: Prof. Murali Mohan By Nejo Samuel Varghese Post Graduation Diploma in Management PGDM EBusiness (2012-2014) Specialization: Operations Welingkar Institute of Management Development & Research, Bangalore
- W i n t e r P r o j e c t 2014 2 | P a g e N e j o S a m u e l V a r g h e s e ACKNOWLEDGEMENT It gives me immense pleasure on presenting my project report entitled, Baby Care Business in Indian Ecommerce Space I express my deep sense of gratitude to Prof. Murali Mohan, Welingkar Institute of Management, Bangalore my project mentor. During the course of this study, many useful suggestions and constructive criticism came across which really helped me a lot in giving this project a professional look. I am indeed very thankful to him for giving me an opportunity to work on this project. I am sure the immense learning that I have had from this project would help me stand in good stead in the future. I extend my heartiest thanks to all those persons whose willing cooperation led to the timely completion of the project. Also I would like to thank all those who have helped me directly or indirectly in completing the project. In completing this study, I did my level best correcting my shortcomings to possible extent and I sincerely hope that this report will serve its purpose.
- W i n t e r P r o j e c t 2014 3 | P a g e N e j o S a m u e l V a r g h e s e CONTENTS 1. Indian Ecommerce 1.1 Introduction 1.2 Factors that drive e-commerce ventures towards success 1.3 Technology related challenges faced by e-tailers and ways to overcome these 1.4 Essential technologies that is important for an online player to succeed & scale-up 1.5 Technology Trends in Ecommerce Industry 1.5.1 Electronic Fund Transfers 1.5.2 Internet Marketing 1.5.3 Cloud Based Model 1.5.4 Mobile Application 1.5.5 Reverse Logistics Management 1.5.6 Payment Process 1.6 Key factors impacting Ecommerce industry 2. Indian Baby Industry Ecommerce 2.1 Overview 2.2 Why the baby industry in India a buzz? 2.3 PE/VC Funding 2.4 Opportunities and Growth 2.5 Potential of the Baby Industry and identifying the potential customers to target 2.6 Challenges for Baby segment in Indian Ecommerce and ways to overcome 2.7 Differentiating factors of HushBabies Ecommerce website 2.8 Benefits for customers from Baby product e-tailers 2.9 Customer Perspective while buying a stroller online. Survey 2.10 Study of Online BabyShop Website (BabyOye.com) 2.10.1 Overview 2.10.2 Objective of Babyeoye.com 2.10.3 Tools and Techniques adopted by BabyeOye site 2.10.4 Benefits seen by BabyOye 2.11 Competitor Analysis (FirstCry vs BabyOye) 2.11.1 Search 2.11.2 Filtering and Product Selection 2.11.3 Buy Options 2.12 Success factors of an Online Baby Product selling website 2.13 Product categories of FirstCry Online store 2.14 SWOT Analysis of Baby store E-tailers 2.15 Strategies to be incorporated in brick-and-mortar stores to increase customer . satisfaction
- W i n t e r P r o j e c t 2014 4 | P a g e N e j o S a m u e l V a r g h e s e Indian Ecommerce Introduction The outlook for Indias economy may be gloomy for now, but the sector looks set to boom is Online Retail. As more and more Indians use the internet, revenues of e-commerce companies could triple over the next three years to 504 billion rupees ($8.13 billion), according to Crisil Research. There are around 200 million internet users in India currently and the number could grow to 500 million by 2015, according to consulting firm McKinsey & Co. Over the last few years, dozens of websites have been launched in India to sell everything from books and appliances, to baby care products and flight tickets. Online retail companies earned revenues of around 139 billion rupees ($2.24 billion) in the financial year that ended on March 31, 2013, according to the Crisil report. Though this is just 0.5% of the total revenues of brick-and-mortar retail companies, online retail sales have been growing much faster. Revenue of e-commerce firms grew by 56% annually between the financial year that ended March 31, 2008, and the year ended March 31, 2013. The scope for growth in this sector has already attracted a lot of interest from venture capital investors. As seen in the figure, a lot of private equity and venture capitalist investors are investing in major e-taling industries of the country as they see a huge potential in the growth of these online industries. The total investments by PE/VC investors nearly doubled in 2013 compared to 2012.
- W i n t e r P r o j e c t 2014 5 | P a g e N e j o S a m u e l V a r g h e s e Factors that drive e-commerce ventures towards success The look and feel of the ecommerce site should be apt according to the product offered, to attract and retain customers. Should have a Technology-driven business approach. Having a small & agile team with stress on automation to reduce costs. Having a low cost and highly scalable marketplace model. Doing constant review & improvement of the business processes. Having a variety of products and also having several products that are hard to find elsewhere. Giving users multiple payment options and also offering seasonal discounts on the products to regulate the traffic in the sites. Technology related challenges faced by e-tailers Lack of broadband infrastructure in the country, especially in rural areas results in low internet penetration, followed by low level of awareness about e-commerce. As there are a Growing number of social media platforms to connect with users (Facebook, Twitter, LinkedIn, Pinterest, Google+,etc). It is extremely important for the etailers to keep a track on these social platforms on a continuous basis and address their customers. Understanding the user across multiple screens. (mobile, PC, tablet, smart TV, etc. are simultaneously used by the same user) Very less growth of small-and-medium businesses (SMB) in adopting the internet/mobile medium to get customers. Etailers find it difficult to popularize the plastic cards usage on the ecommerce sites, as people are so sceptical when it comes to using the cards for payments. Offering Cash on Delivery (COD) results in operational issues such as returns management and complexity of payment handling. Cash-on-delivery makes it difficult for sellers to survive because there is no customer commitment for the ordered products. Ways to overcome these challenges Providing a consistent and uniform user interface across all platforms/channels. Deeper understanding of user needs across the multiple products and services offered by the e-tailer. Greater investment in acquiring and retaining SMB customers and simplifying the internet/mobile environment and reaching customers through calls/emails/social media and not through just clicks advertisements, as given by search engines.
- W i n t e r P r o j e c t 2014 6 | P a g e N e j o S a m u e l V a r g h e s e Boost internet infrastructure, particularly in tier II and tier III cities. This boost in the broadband infrastructure in the country will enable Indian SMEs from all corners of the country to be competitive in the international marketplace. Educating SMEs about e-commerce in India, by partnering with several prominent industry bodies like FICCI and FIEO, by conducting training workshops across India. Making the online payment experience as simple as possible by constantly innovating, slimming down the processes and thus reducing the level of complexity. Making the in-house systems of ecommerce website scalable to match up to the growing demand of the customers. Having a distributed database to deliver the web contents fast, irrespective of the number of products catered and the speed of the broadband connection. More focus on Mobile Applications. Use of SAP for integration of daily payment cycles. Essential technologies that is important for an online player to succeed & scale-up Effective usage of CRM, Big Data and Social media to understand consumers better There should be seamless user experience across multiple devices .Use of Technologies to deliver these. Enforcement of sales force automation and customer understanding modules. To get new consumers and to retain old customers, use of Search and social media mastery are helpful. Cloud-based technologies to provide significant savings on physical hardware/software investments. Internal employee networking to have a seamless flow of communication throughout the organization. Inter-office video calling to bring employees across diverse offices together. Having customized tools and also Google Analytics helps to serve the customers better. Having a strong database Usage of frameworks, such as Magento and web servers such as Apache for the website. Inventory management and Dispatch management integration using ERP systems. Payments, accounting and finance tools
- W i n t e r P r o j e c t 2014 7 | P a g e N e j o S a m u e l V a r g h e s e Technology Trends in Ecommerce Industry 1. Electronic Fund Transfers: The payment gateways are the backbone for transactions as there has always been a demand of more secure, less dependent systems that smoothens the process of paying for what the customers buy instantly. Electronic Funds Transfer (EFT) is changing the landscape of money transaction from the bank account to the business entity. Customers, who make p