Marketplaces
Online retail has sunk its hooks deep into the average Indian consumer. The variety, the prices, discounts, speedy delivery, trouble free returns and refunds have made consumers fall head over heels for online shopping. Retail brands have observed the ever increasing demand for ecommerce convenience and have decided to use it to their advantage.
An online presence in the form of online catalogues is no longer enough; they are looking at employing full-fledged working models. The intention is to manage the entire digital retail lifecycle right from anticipated customer intentions to shipping of orders. To make this a possibility retail brands need to build their very own online store and to do so they will use startup technology!
Isn’t this just another form of commerce?
The head of ecommerce at Tata Group’s Infinity Retail, Maneesh Mittal said,“Two-thirds of our customers are digitally influenced in some way or the other and, hence, it is imperative for us to ensure a strong digital footing.”
It is not about setting up another form of commerce. The big names in retail feel a palpable online presence is more than this. An online store gives them the ability to compete with other competitors and online marketplaces as well that happen to carry their products for sale.
The main intention and challenging aspect is driving consumer traffic to the new online store and keep them from switching to marketplaces and the direct competition.
Capillary Technologies’ chief executive Aneesh Reedy said, “The top questions brands want their ecommerce portals to answer are: Who is my customer, how to bring back the customer for repeat transactions, and what are the reasons for drop-offs.”
Capillary Technologies is a software and analytics provider for popular retail brands Pantaloons, Max, Fab India and Biba. The company answers these questions and provides solutions to that boost web traffic and encourage frictionless online purchases.
The key is in technical analytics that understand customer behaviour and intent!
Online stores use analytics to understand customer behaviour to modify product selection. It’s kind of the same as sales persons adjusting their sales pitch to suit customer preferences.
Chief executive of analytics firm Manthan System, Atul Jalan said consumers have a variety of options to choose from and it is vital to remember this. If you take the example of a Biba kurta, one that’s available on Myntra is also available onSnapdeal, Flipkart and even the Biba webpage. Analytic companies like Manthan enable retail brands to adjust their product offers quickly. This way a kurta looked up on the brand website is instantly converted into a purchase, Jalan explained.
Another analytics company, Decisive Analytics Systems, reads customer profiles through its analytical product Plumb5. The client profile is then categorized into 94 parameters for customized recommendations. Arun Krishnamoorthy, head partner at the Bangalore based firm said their system of analytics includes intuitive details. He mentioned a customer in Dubai may respond better to a percentage discount like 10% and one from Bangalore may be more responsive to a value discount expressed as Rs. 300.
Building an online retail empire
Apart from using the analytic aspect of technology companies, retail brands are also using them to increase their presence on offline and online sales channels.
In 2014, apparel brand Biba ventured into online retail. Now its web store generates 35-40% of its online sales. Its omni-channel initiative contributes to 3-4% of total sales.
Big Bazaar from Future Group initiated its omni-channel strategy this year with the launch of an online store and uses the technical assistance of Manthan System for the same.
“We think of online marketplaces as being similar to malls with our brand stores,” said Mittal of Croma. “Croma.com, on the other hand, serves as the equivalent of a flagship store, serving to provide a richer, more engaged experience for the electronics shopper.”
The way retail channels are presented depends on consumer response and the retailer’s ability to understand it. But will brand specific online stores produce desired results?
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