The Omnichannel Weekly – Edition 5

The Omnichannel Weekly – Edition 5

The Omnichannel Weekly – Edition 5

omni-channel

Welcome to the fifth edition of the Omnichannel Weekly.

Clicks to bricks: Flipping the script

  • According to a study by retail management firm iQmetrix,  60% of customers would shop in-store if online services are provided there.
  • Research firm IDC says that omnichannel customers i.e. those who buy both online and offline have a 30% higher lifetime value than those who shop using one channel.
  • Amazon opened its first bookstore in Seattle in 2015 which was followed by more than 30 popup stores across the USA. They also plan to open permanent stores in Boston, San Diego, Chicago and Portland.
  • Google just launched its “Made by Google” store in New York. The likes of Warby Parker, Bonobos, Ministry of Supply, Birchbox and Rent the Runway have also opened stores and showrooms throughout the country.
  • In March 2017, Myntra launched its first retail store for its online brand Roadster. The store’s features include a video wall which can be controlled by shoppers using a multi-tactile touch interface to showcase Roadster products, communicate brand stories and also provide updates on international trends. There are multiple touch screen displays and a “Scan & Go” purchase mechanism which allows shoppers to add products which they want to buy on their Myntra shopping carts thus doing away with shopping bags, checkout counters and queues at the till.
  • Propelled by the success of the online brand Babyoye, Mahindra Retail launched its physical stores by rebranding their existing “Mom and Me” stores. After Firstcry acquired BabyOye in 2016, the merger called FirstCry.com-A FirstCry Mahindra Venture had around 300 physical stores in 125 cities.
  • The online furniture retailer Pepperfry had opened its first store in 2014 and plans to double its store count with 10 new stores in India. Pepperfry opens stores in pincodes with high online customer density in the past 24 months across Tier-I and Tier-2 cities.
  • India Circus, a brand of home accessories and fashion products, was launched online in 2012 and started offline stores at airports in the early part of 2017. Supported by the Godrej Group, they plan to open nine more offline stores to expand their reach.
  • Lenskart was one of the most visited websites for eyewear on search engines but online sales were low as customers wanted to touch, try and buy the product. This led them to launch their physical stores.
  • Yepme.com launched its first physical store in the NCR in early 2016 after realizing  that physical stores are a better medium when it comes to customer interaction and getting a customer closer to a brand. The physical store offers an omnichannel experience where the prices are same as that of the online store and customers can choose to buy the products from the store or get it delivered to their homes.
  • Aurelia set up a franchise business model to expand their physical stores. They now have a physical presence in 42 cities across India.
  • Even though e-commerce was a boon for the lingerie industry, Zivame chose to expand via the offline route and has 9 stores in the country now. The Zivame stores offer a personalized shopping experience with Zivame Advisors and comfortable changing rooms.
  • The online jewellery store Caratlane recently opened its 30th store in India. Their signature stores have a Solitaire lounge to assist with all solitaire queries, a customization desk for custom requirements and a magic mirror for virtual try-ons. On the other end of the spectrum, Voylla has around 240 stores across India after opening their first store in December 2015.
  • Consumers expect personalization – 79% of customers say that highly personalised loyalty programs make them feel very satisfied. Loyalty programs which recognize their customers and make them feel special have 2.7 times more satisfied members.
  • Members of the DSW rewards program were sent a mail which contained how many points they needed to earn a $10 certificate, other deals they were eligible for and a detailed snapshot of their customers’ interactions  with the brand over the last two years, how much they have said, how many points they have earned and how long they have been a loyalty member. The campaign saw a 64% lift in mail opens, a 13% lift in click through rates and 58.82% of the customers who opened the mail read it for 15+ seconds.
  • Brand partnerships have increases as this extends the reach for both brands and helps them to reach out to potential customers.
  • Consumers expect brands to be socially responsible. 81% of millenials expect companies to go beyond becoming drivers of profit and serve as agents of change in their communities. 66% of consumers are willing to pay extra for products from brands committed to delivering positive social and environmental impacts.
  • Premium royalty programs are becoming more appealing. 62% of respondents of a customer study would consider joining a fee-based rewards program offered by their favourite retailers. This number goes to 75% for 18-24-year-olds and 77% for 25-34-year-olds. 47%  said that rewards in fee based programs are better than rewards in free programs.
  • Emotional loyalty is key. A research by Gallup  shows that customers with a strong personal connect to a brand will visit their stores  32% more often and spend 46% more money than those without emotional bonds. A Forrester survey showed that emotion is one of the strongest unique drivers of loyalty and most loyalty marketers are still fine-tuning their programs to establish and solidify relationships with customers as well as to build up a strong emotional connection with their most frequent shoppers.
  • AI and chatbots are improving customer engagement. By 2020, 85% of customers will manage their relationships with enterprises without interacting with a human.

Read the entire article here.

Love, Bonito aims for omni-channel, further regional expansion with latest $13 million funding

  • Singapore based fashion label and one of the first successful blogshops Love, Bonito has raised $13 million in Series B funding from Japanese based internet services Kakaku.com with existing investor NSI ventures.
  • The brand will use the funding  to build community based retail experiences which integrate online retail strategies with meaningful offline, in-store experiences. The brand’s three month old flagship store has had a very promising initial performance.

Read the entire article here.

Indian Ecommerce Will Become $33 Bn Market; EShoppers Grow At 33% Per Month!

  • The economic survey results for 2017-18 , which was tabled yesterday at the Parliament, declared that Indian e-commerce will become a $33 billion market this fiscal year. This is a growth of 19% as compared to last year.
  • The market value still pales in comparison to China where $45 billion worth of shopping was done only on the Singles Day shopping festival.
  • As per a Red Seer research report, Indian e-shoppers grew by 33% to 20 million from 15 million last year. Deeper penetration into Tier-2 and Tier-3 markets is attributed as a reason for this.
  • Online cab booking experiences have improved by 400 base points. This is attributed to stabilization of supply leading to a slight improvement in cab availability and improvement in other operational metrics such as a fall in driver side cancellations.
  • 64% of parents said no to offline tuitions as compared to 41% a year ago. This is a significant for the edutech industry.
  • One of the major challenges faced by the e-commerce industry is the cancellation experience across ticketing sites which received the least points in the survey.

Read the entire article here.

Small-town wallets power growth of ecommerce in India

  • According to Harish HV, e-commerce expert and Partner – India Leadership team at Grant Thornton India, people are shopping online even though aggressive discounting has stopped which is a good sign for growth to be back this year.
  • Small town Indians account for 41% of all online shoppers. This is driven by Flipkart’s no-cost EMI which is available for shoppers who do not have credit cards and Amazon’s Project Udaan where small stores in rural India help customers buy on Amazon.
  • Shoppers in Tier 2 and smaller towns grew three fold compared to metro shoppers. According to Red Seer, residents from non-metro towns will account for 55% of all online shoppers by 2020.
  • The advisory firm also predicts that there will about 185 million online shoppers by 2020.
  • Almost 85% of all Amazon’s customers come from Tier-2 and smaller cities as disclosed  by Amazon India head Amit Agarwal in an interview with YourStory.
  • While modern trade is growing at 15%-20% per annum, it has a penetration rate of only 8% according to PwC. This is where e-commerce companies come in to offer shoppers a massive range of brands and products.
  • It is also a myth that non-metro cities are not cash rich as 45% of all ultra HNIs in India are based out of emerging cities and small towns according to a Kotak Wealth report.
  • High logistics penetration has been an important growth driver as well as the bigger players claim to reach 80% of India.
  • There are concerns about this growth tapering out though on the lines of what happened in the metro markets – after a 180% growth in unique shoppers in 2015, it slowed down to only 11% in 2017. Also most of the purchases in Tier-2 and Tier-3 markets are made by the “creamy layer” who have a higher disposable income and similar tastes and product and brand preferences as their metro counterparts. The likes of Flipkart are trying to address this problem through private label brands which offer greater affordability.
  • At $566 billion, grocery is the largest segment in Indian retail and hence expected to be another growth driver for the e-commerce industry. However, as of today, the online grocery market is only $1 billion as offline players offer immediate delivery, easy exchanges and availability of credit.
  • Offline organised retail is also expected to pick up to a 20% revenue growth over the next three fiscals after a revenue growth slowdown to 12% from 2015 to 2017. This will impact revenue growth for e-commerce businesses in metros.

Read the entire article here.

What Budget 2018 brings for Retail, FMCG & E-commerce sectors

  • Kishore Biyani, Group CEO, Future Group – Most of the players in textiles, footwear and leather industries are MSMEs and the linking of  Trade Discounting System (TReDS) with the GST network, the MUDRA scheme and increasing financing options for them will help them in conducting their business.
  • Kumar Rajagopalan, Retailers Association of India –  There will no immediate impact on consumption as there is no additional money in the hands of the middle class which can drive the same. The reduction in corporate tax to 25% will benefit a large number of MSME retailers.
  • Anil Talreja, Partner, Deloitte India on Consumer Business – The allowance of 100% FDI in single brand retail coupled with the condition of sourcing of 30% of value of goods purchased is a win-win for both foreign retailers, MSMEs,  village and cottage industries, artisans and craftsmen in all sectors.
  • Anupam Pahuja, Managing Director and Country Manager, PayPal India – Increased investments in Digital India, digitized toll payments, the development and adoption of technologies such as blockchain, artificial intelligence and machine learning, Aadhaar-like unique IDs for businesses will help fintech companies build a trusted ecosystem for digital payments.
  • Arvind Mediratta, MD & CEO, Metro Wholesale India – The budget is socially inclusive and the reduction of corporate tax will augment the ease of starting a new business as well as helping existing businesses as well.
  • Sanjay Sethi, CEO & co-founder, ShopClues – The government’s decision to create 500,000 hotspots in rural India will enable broadband access for the first time to a lot of Indians and will help grow the digital commerce industry  and encourage more people to adopt a cashless economy.
  • Aashish Kasad, Partner & Consumer Products and Retail Sector Tax Leader, EY India – The hike of customs duty on the import of several consumer products will further  the “Make in India” initiative. However the expectation of higher demand through more disposable income by altering the tax slabs remains unaddressed.
  • Ravi Saxena, Managing Director, Wonderchef Home Appliances – The reduction in corporate tax will boost compliance, investment and the ease of doing business.
  • Sunil Duggal, Dabur India, CEO – Higher MSPs for Kharif crops, upfront agricultural focus, institutional support for price discovery  and upgradation of rural haats, mega Health Insurance programme for the poor and massive spending on rural infrastructure will go a long way in strengthening the rural economy and boosting hinterland consumerism.

Read the entire article here.

Planning to set up your omni-channel business? We can help.

 

avishek bm
deleteuser@gmail.com
No Comments

Post A Comment