THE ONLINE SHOPPING Todays consumers lead busy lives and shopping takes time. Often it is a task. Consumers find researching and shopping on the Web far more convenient than brick-and-mortar visits. Although in-store excursions can still be fun, in many ways shopping online or via a mobile device offers a better overall experience, whether from the couch after the kids are in bed, on a mobile phone during a quiet moment at lunch, or on the go. In many instances, customers have access to more information online than when talking to an in-store sales associate. Online reviews and price comparisons enable them to feel more confident in their buying decisions and free shipping offers are a fixture of the online marketplace, especially during festive season. Google India Study reports Electronics the Top Search but Apparels the most bought Flipkart As per the research, 90% of online shoppers are planning to buy more products online which reflects on the positive experience of the users. In terms of top product categories ever purchased online: Apparels & Accessories was among the top category (84%) Electronics (71%) Beauty & personal care (64%) Books (62%) Household products (61%) The frequency of purchase was also higher for categories like apparels & accessories (34%), beauty & personal care (33%) products in comparison to electronics (28%). Top Retail Subcategories by Total Unique Visitors November 2011 vs. November 2010 Total India Visitors Age 15+ Home/Work Locations
Source: comScore Media Metrix
Total Unique Visitors (000) Nov-2010 Nov-2011 % Change Total Internet : Total Audience 41,169 46,390 13 Retail 23,021 27,171 18 Coupons 1,048 7,647 629 Consumer Electronics 6,334 7,122 12 Comparison Shopping 4,611 5,775 25 Computer Hardware 5,079 5,708 12 Apparel 1,735 4,609 166 Movies 2,587 3,076 19 Books 2,559 2,494 -3 Flowers/Gifts/Greetings 2,132 2,323 9 Jewelry/Luxury Goods/Accessories 1,575 2,134 36 Home 1,605 1,966 22 Top 10 Retail Sites by Unique Visitors November 2011 Total India Visitors Age 15+ Home/Work Locations
Source: comScore Media Metrix
Total Unique Visitors % Reach Total Internet : Total Audience 46,390 100.0% Retail 27,171 58.6% Amazon Sites 6,805 14.7% Apple.com Worldwide Sites 3,426 7.4% Samsung Group 2,759 5.9% Flipkart.com 2,675 5.8% Homeshop18.com 2,286 4.9% Naaptol.com 2,145 4.6% Bookmyshow.com 2,125 4.6% Myntra.com 2,110 4.5% Priceindia.in 2,047 4.4% Alibaba.com Corporation 1,973 4.3% What Happened to the Retail Stores? The world of retail is facing an existential crisis as more consumers abandon shopping in physical stores for the ease of buying online, especially with their mobile devices.
The rapid advances of e commerce have drastically altered the landscape for traditional retailing giants. Theyre being challenged by the mobile revolution because theyre saddled with the high costs of leasing and maintaining so many store properties. Old-school retailers that dont adjust quickly to the rise of mobile and social commerce will have a hard time surviving the current disruption What can They Do? Retailers that will survive in this new environment need to pursue effective marketing programs for social media and mobile devices, and keep their business models ultra-lean.
As part of this effort, online retailers need to continue to reach many new customers by combining traditional TV commercials with online display advertising in major Internet companies including Google, Facebook, AOL, Yahoo and Microsoft.
Take the in-store experience to a different level Retail is in crisis. But its a crisis that can stimulate transformational change. Retailers who understand their customers, leverage technology to evolve the customer experience, and focus on their differentiators and assets have the opportunity to thrive. However, for retailers that ignore opportunities for transformation, the writing is on the wall. THANK YOU