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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