Saharsh Rastogi (IIM Trichy)

Hitesh Kumar (IIM Trichy)

Shivam Dubey (IIM Trichy)
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies
E-Commerce and Fashion Industry
Indian Ecommerce industry is growing approx. 12%

Smartphones
Others

Electronics
Fashion 24%

As per research source it is predicted "Fashion will also replace

India ~ 25 billion smartphones as the category with the most buyers and orders.”

Online Offline Overall

fashion fashion fashion Flipkart ~ 64% Online Retail Stores
retail retail industry Amazon ~ 32% Local Market
$6Bn $100Bn Others ~ 4% billion Unorganized Sector
$94Bn
2
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Behavior Financial Analysis
Strategies Strategies

AMAZON CURRENT STRATEGY TO CAPTURE MARKET SHARE IN ONLINE FASHION RETAIL

➢ With over 15,000 brands available on its platform, Amazon says its stellar growth was possible because of a 50 per cent increase in selection of products.
➢ Amazon using their prime subscriber in such a way that every 3 orders being made through Prime being a fashion item.
➢ Amazon is entering offline retailing in India to create an integrated shopping experience for consumers across e-commerce and brick and-mortar stores as
part of a strategy to take on Reliance and Walmart owned Flipkart, which are planning a similar push in the country.
➢ Amazon has been selling two apparel private brands — Prowl and Just F — through some Shoppers Stop outlets and this will be scaled up.
➢ Amazon’s payment service, Amazon Pay, has been launched at More and Shoppers Stop and will be rolled out in Big Bazaar and EasyDay, too.
 Introduction
Comparison Market Analysis
Ethnic and wedding wear are one of the most
unorganized sector which is growing at faster rate. 65% of
apparel fashion industry constitutes traditional wear.
Consumer Improvement Marketing
Financial Analysis
Behavior Strategies Strategies
Drill Down in Fashion Industry
o During the five-day festive season sale in 2018, Flipkart’s market
share was 51% (driven by sales in mobile phones and fashion
categories) while Amazon’s market share stood at 32%, with the rest
of the E-commerce industry accounting for 17%.
o “Online retailers in India are expected to generate about $4.8 billion
in sales during this year’s festive month (September 25 to October
29), mitigating the impact of the general economic slowdown.
Growing attraction of luxury lifestyle, high purchasing
power, and the influence of celebrity endorsement are
driving the market growth of fashion accessories.
The footwear market in the country was valued
Along with this, millennials consider fashion as one of
at nearly 17 billion U.S. dollars in 2018, fourth
the way to show their status in society which is also
worldwide. one of the key driver of growth.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies

NUMBER OF ONLINE SHOPPERS Market share of Amazon and Flipkart in different

income groups
Year-on-year Trends Year-on-year growth 120
(In millions)
38% 17% 45% Market share
Flipkart
Total yearly shoppers 100
dominates in
75 90 120 lower income
80
group in
140
smaller cities.
120 60
100 50

80 40
60
30
40 20
20
20
0 0
2016 2017 2018 Metro Tier-1 Tier-2+
Metro Tier1 Tier2+ <2.5lacs 2.5-5lacs 5-10lacs Series 4

KEY TAKEWAYS
• METRO TIER-1 Tier-2+
➢ Slower growth as compared to Tier1 and Tier2+ cities. Second fastest growing market Fastest growing market
➢ Added 3Mn shoppers in 2017, expected to add 5Mn more in 2018 Expected to add 6Mn more in 2018 10 Mn added in 2017, expected to add 19Mn
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies
PESTEL ANALYSIS

o 40-45% of consumers who shop online reside • Half the shoppers in Tier-III cities are already on
at 10 metro cities, rest of them hail from mobile, as compared to the one third from Tier-I
3,133 tier II & III cities, and 1,233 rural hubs. cities, according to a Forrester’s report.

o The e-commerce giant also said that nearly 91 per cent o Amazon also said that it witnessed a 100 per cent increase
of new customers hailed from Tier-II and Tier-III towns in in people opting for EMIs with over 75 per cent coming
2019. from Tier-II and Tier-III cities.

India will increase the number of

28% 42% internet users by about 40 per cent 24% 6%
18-25yr 26-35Yr to between 750 million and 800 36-45yr 45-60yr
million and double the number of
smartphones to between 650
million and 700 million by 2023.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies

Consumer Expectations
Pricing and Discount
Pricing becomes an important factor when it comes to e-commerce
and it holds a much more importance in Tier 2 and 3 cities
New Trends and original Products
Millennials always crave for latest trend as fashion reflects their
Trendiness,
personality. In addition to this, customer wants original products as
Affordability cases of fake products keep on rising daily.
Fast Delivery and Return policy
Shopping is not pre-decided thing so when the customer order a
Variety Shipment product, he wants it to get delivered asap.
Sizing Issue
Large number of product has been returned due to sizing issue. It not
only cost company but also give a bad experience to customer.
Better UI features
For single product, there are thousand of choices which make customer
confuse and lead them to switch to offline stores. Customer needs more filters
and segmentation of products.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies

Ansoff Matrix
Existing New

MARKET PRODUCT

Existing
PENETRATION DEVELOPMENT
STRATEGY STRATEGY

MARKETS
MARKET
DIVERSIFICATION
New
DEVELOPMENT
STRATEGY
STRATEGY

PRODUCTS
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies
Improvement Strategy

Payment Sizing UI Features

CURRENT PAYMENT METHOD Online Sizing

➢ COD Onsite Search
➢ DEBIT CARD/CREDIT CARD Virtual fitting room apps go beyond smart
➢ EMI (AMAZON PAY EMI) fitting and let customers use their
smartphones or virtual reality glasses to
Amazon statement conduct 3D body or face scan — ensuring
Amazon also said that it witnessed a 100 per accuracy when customers try on fashions
cent increase in people opting for EMIs with over online before making a purchase.
75 per cent coming from Tier-II and Tier-III cities. The use of machine learning adds a second We will add new filters so it will make easier for
layer of accuracy, prioritizing products based customer to get things of their choice quickly. As
New strategy on their performance and also ensuring that consumer always face problem of getting so
results are improved over time, based on the many choices for single product which leads to
• EMI on COD ‘learning’ from user behaviour confusion and changing decision of customers.
• We can also use local amazon store to manage ✓Season
paying EMI. ✓Age
• It helps in building trust. ✓Price range should be more precise
✓Size( Additional informational will be given to
give more idea to customer to decide their size).
•We can promote private labels by putting our
designs/style on social media such as Instagram,
Facebook, Tik-tok etc. Recently, we can see youth
try to emulate these tik-tok stars.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies
FASHION CAMPAIGN

Target Geography

Tier 2 and Tier 3 Cities

Age Group (14-35)
01 06

Content
02 05 • Traditional Wear
• Shoes

03 04
Promotional Strategies
• Regional Shows
• YouTube
• Print Media

Current Ad: https://www.youtube.com/watch?v=OYhntaPPF54

 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies

FASHION CAMPAIGN

FASHION BLOGS
➢ We can create a campaign
where customer can post
their photo or videos
showing their fashion sense
and communicating with
other people which can
build a fashion community
for amazon.
➢ We will collaborate with
fashion icon, Model,
designer which has large
number of followers. They
can share their insights on
latest trends. They can use
social media like Instagram,
Facebook etc.
AD CAMPAIGN
FAST DELIVERY
➢ We will develop different
Advertisement campaign
for different festival.
Example: TRENDINESS AFFORDABILITY
Diwali, Holi, Eid etc.
➢ We will develop one
advertisement focusing
ethnic wear along with
wedding wear. “Affordable Trending Fashion ka wait ab ant,
Amazon pe ab Turant”
➢ We can take use of #SabseTezAmazon
different culture of #AmazonPeIndiakaTrendingFashion
different state to form
a fashion campaign of
India.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Behavior Financial Analysis
Strategies Strategies

Amazon Stores

REDESIGNING

➢ LED screen which shows amazon product

➢ Glasses to conduct 3D body or face scan —
ensuring accuracy when customers try on
fashions online before making a purchase..
➢ Smaller version of store that amazon planning
to establish in malls.

❑ It will increase trust of customer in rural and Tier2+ cities by seeing Amazon store in Trust
their areas.
❑ Use of AR/VR to increase customer engagement and experience. Assista
Support
❑ It can also be used to store products which can not able to get delivered. nce
❑ It can also be used to assist customer in purchasing online.
Service
❑ Sizing issue can be solved using 3D glass or physical measurement in these stores.
❑ Support/advice to customer on products. Commu
Trust
❑ Post purchase services can also be provided which leads to long term engagement. nication
❑ Presence of store, indirectly increases word of mouth publicity. Satisfacti
on
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies

Collaboration with Other Vendors

Collaborating with retail giants like V2Private
Limited, localized vendors, freelance designers
. to increase the customer base.

Using Amazon’s network to help

Promoting their flagship brands them expand in tier-2 & 3 cities
like Herrlich, Godspeed, besides tapping on their
Glamora , Honey Brats etc at a customers by attracting them to
national level. e-commerce.

Exploring “Joint Marketing” initiatives

where these vendors, retail megastores
can open Amazon experience centres,
kiosks etc to showcase their brands, and
increase literacy for online shopping.

Introduction Comparison Market Analysis
Objective: To increase the no of seller base and partners to enter into new spaces
Sellers Hub Reduce the commission
rates during the festival
seasons to get more sellers
on-board
Logistics 4PLs – Next Generation
Elite Supply chain
Partnering with logistics
provider for packaging,
labeling and delivery
Partner Partner with Redbus
(MMT) to give option to
book bus tickets online
Work with influencers and
brands to create content.
Consumer Improvement Marketing
Behavior Strategies Strategies
OTHER Strategies
A lighter version of the Online tutorials to the new
sellers hub application sellers educating them about
so as to run on 2G & 3G registering to selling to
networks which are returns and exchange to
prevalent in rural towns increase no of products
listings
Amazon store Tie up with AI & IOT based
Including amazon store startups to build IOT-
into distribution channel. equipped inventory systems,
smart packaging and tracking
solutions across supply
chain
LaunchAmzon “Laughter Tie up with IRCTC to give
Club” (#FLB) option to book Train tickets
Partner with standup on Amazon to tap Tier II and
comedian clubs like Canvas Tier III travelers
laugh club, Bingo Comedy
Adda etc.
Financial Analysis
A dedicated buddy for
group of regional seller to
maintain quality checks
and updates in tier II and III
cities
Increase the no of tie ups
with local city delivery
channels like dabbawallas,
kirana stores to reach last-
mile in tier II & III cities.
Put 10-15sec skippable ads
to promote sellers brand
available on Amazon with
a direct option to shop.
 Consumer Improvement Marketing
Introduction Comparison Market Analysis Financial Analysis
Behavior Strategies Strategies
Financial Model
Metrics Current Value
Expected Impact of strategy

No of customers 50 million users 1.6x- 1.8x growth

No of products 33.4 mn 25-35% increase

Impacted & No of hours of content 100+500 = 600 18-23% increase
Expected Return
(All percentage increase are assumptions made to the best of
our understanding as per similar measures taken by other
companies)
Particulars INR (Cr)
Collaboration with partners 80
Warehousing Integration with technology 23
Total
Traning & development to Delivery partners 4
Investment Logistics partnership 27
Marketing & Advertising costs 48
Total Investment 178

(All percentage increase are assumptions as per news reports

and projections estimated by the management and
revaluating numbers with the impact of our strategy )
 References

https://www.livemint.com/industry/retail/amazon-flipkart-sale-the-fight-for-4-8-billion-festive-business-in-india-1569511793617.html

https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-flipkart-sales-generate-rs-19000-crore-in-6-days/articleshow/71491146.cms

https://www.business-standard.com/article/companies/flipkart-eyes-100-bn-indian-fashion-market-ties-up-with-lifestyle-119080801237_1.html

https://stories.flipkart.com/flipkarts-fashion-capital/

https://coresight.com/research/amazon-apparel-updatean-analysis-of-more-than-1-million-clothing-listings-on-amazon-fashion/

https://www.shopify.com/enterprise/global-ecommerce-marketplace

https://www.indiaretailing.com/2019/04/15/fashion/whats-in-store-for-the-indian-fashion-industry-in-2019/

https://unicommerce.com/indian-online-fashion-e-commerce/

https://inc42.com/buzz/flipkart-localises-further-with-expansion-to-800-new-cities/

https://ebusinessgroup.in/2018/02/14/e-commerce-potential-in-indian-tier-ii-and-tier-iii-cities/

https://blog.aboutamazon.in/india-innovations/taking-ecommerce-to-indias-heartland-with-project-udaan

https://inc42.com/features/indias-tier-2-3-shoppers-help-amazon-flipkart-beat-slowdown-blues-as-festive-sales-open/

https://www.businessoffashion.com/articles/news-analysis/amazon-tests-top-brand-label-for-some-big-name-fashion-sellers

https://coresight.com/research/amazon-apparel-updatean-analysis-of-more-than-1-million-clothing-listings-on-amazon-fashion/

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