Indian Internet Retail- The Internet Retail Vision 2010
The Indian Online Retail is a rich segment waiting to be exploited. Internet is a potent medium that can serve as a unique platform for the growth of retail brands in India. The medium holds many virtues favorable for the retail industry including a higher customer penetration, increased visibility, and convenient operations.
- Mail-order companies: 50+ years in remotely dealing with consumers
- Advantages due to existing client base and infrastructure (logistics, CRM, etc
- Pure players with only limited access to clients
- Online marketing (not performance marketing) helped players to keep brand awareness
- "Old" players: processes and IT are not matching "online" requirements
- Brands/manufacturers learning to keep direct contact to consumer (flag-ship store approach in internet)
- Leading to higher pressure on retail sector, as brand focus in moving from retail-brand to manufacturer-brand
- Key advantages for new players: speed, user-driven, IT-enabled, new shopping experience, outsourcing infrastructure, etc.
- Performance marketing as a driving factor for "new" players
- Tesco in UK (successful)
- Wehkamp in Netherlands (successful)
- Vente privee in france (successful)
- Quelle in Germany (failed)
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