Promotional spends are typically high in an online start up as we need to spend considerably building a brand. We however need to understand its viability matrix. Currently, we track various promotional spends and their impact for future spends. There is no clear trend emerging with ideal benchmarks.
What is the industry benchmark? What should be the revenue generated for every rupee spent towards marketing? In case of online store, the benefits of marketing are accrued over a period as you get access to the customer details once he is registered and therefore making your future spends lower to access him. Mapping this benefit to a specific number is quite complex. Typical start ups have misjudged the benefits and have gone burst spending too much in acquiring their customer base.
I come across various stores that have spend considerable building their brand and customer base. But we need to understand the ROI made by these stores. Is it justified? They can sustain in a boom scenario where an investor risk appetite is higher. In the long-run, will it survive?
Few years ago, an online store from the group of a large indian retailer spent considerably building a brand. Easy access to PE funds made it possible for them to spend a bomb on technology and marketing. I always believed their business plan and was of the opinion that they would make the difference to the ecommerce market similar to the one made by Reliance in the business of telecom. Their ROI would have definitely been lower because their spend would considerable higher changing the dynamics of the industry and driving new customers online. As we stand today, things have not changed dramatically in the industry. A bust period inbetween made them go slow and they had to indulge in reducing cost considerably. The focus shifted from generating revenue to reducing cost. The money spent towards building the brand did not yield much results and sales have fallen by 80%. This brings us back to the basics. Wht should be the ideal expectation from your marketing budger and how this should be benchmarked.
Thursday, July 15, 2010
Sunday, April 13, 2008
The Arrival of Hindglobal
Friends
Its few months that we have been discussing abount hindglobal. We have finally arrived in the market.
We could not accept credit card payments yet as the integration is in progress. However a week more and you can now go ahead and place your order with us. This is just a beginning. The next one year will see flood of activities with few more website launches for international markets.
There might be nitty gritty issues on site. We may not be best today. We will definitely be best shopping site in India over the next 3 years with respect to customer experience and convenience. Any issues or suggestions, Pls write to us on customercare@hindglobal.in. You can also address it directly to me at vivekjain1907@rediffmail.com
As our principle, we believe in building something thats truly ours. I want you all to be a part of it and stay together like a single family.
- Vivek Jain
Its few months that we have been discussing abount hindglobal. We have finally arrived in the market.
We could not accept credit card payments yet as the integration is in progress. However a week more and you can now go ahead and place your order with us. This is just a beginning. The next one year will see flood of activities with few more website launches for international markets.
There might be nitty gritty issues on site. We may not be best today. We will definitely be best shopping site in India over the next 3 years with respect to customer experience and convenience. Any issues or suggestions, Pls write to us on customercare@hindglobal.in. You can also address it directly to me at vivekjain1907@rediffmail.com
As our principle, we believe in building something thats truly ours. I want you all to be a part of it and stay together like a single family.
- Vivek Jain
Monday, January 7, 2008
Creation of Something thats truly ours - hindglobal
By now, I guess you still would not have been familiar with hindglobal. That’s because we have not yet launched.
I would like to share my experience on the making of hindglobal. Let me begin on a chronological order.
1. Idea creep up
Thanks to indiaplaza and their free gift vouchers that compelled me to shop online. Their prices were seriously high but these vouchers tempted me to buy bringing me into this online shopping world. I then experimented with futurebazaar whose prices looked competitive. However my experience was a bit bad as their service quality is very laggard. I had to follow up to get the product delivered. I pity customers who have no such attitude. They would have definitely lost shopping here. That provoked me to have the best of both. If there is none, let’s create one.
2. Website URL
I am surely late in the online world. Just look for any name that comes in your mind at first glance and I am sure you won’t find it. Searching hard and trying all kinds of combinations, I finally settled for hindglobal. To pacify myself, I shall say that a brand is built and not bought.
3. Company Formation
I made a big blunder here and that delayed the whole project by few months. People initiate the legal requirements at the initialization but I started at the end. I know I would make mistakes, I would fall, but that’s not that important. Something that’s important is how soon can I cope up and how fast can I rise after the fall and learn not to fall atleast by the same mistake.
4. Technical Requirements
You can call me a person with negligible technical knowledge. Many would have turned back due to their no technical background. I know I could go wrong in technology, back end server support, customer navigation experience but that’s learning. We shall learn over time but quick. Pls Pls support me and request you all not to turn your back at your very first bad experience. Bring it to my notice and I assure you that a customer won’t lose. I commit myself to build a better future. Something that’s truly ours.
I need your support and blessings. We may not be cent percent perfect initially but help us be one. Help us build something that’s truly ours. Shop, invest and earn right here at hindglobal.in
I would like to share my experience on the making of hindglobal. Let me begin on a chronological order.
1. Idea creep up
Thanks to indiaplaza and their free gift vouchers that compelled me to shop online. Their prices were seriously high but these vouchers tempted me to buy bringing me into this online shopping world. I then experimented with futurebazaar whose prices looked competitive. However my experience was a bit bad as their service quality is very laggard. I had to follow up to get the product delivered. I pity customers who have no such attitude. They would have definitely lost shopping here. That provoked me to have the best of both. If there is none, let’s create one.
2. Website URL
I am surely late in the online world. Just look for any name that comes in your mind at first glance and I am sure you won’t find it. Searching hard and trying all kinds of combinations, I finally settled for hindglobal. To pacify myself, I shall say that a brand is built and not bought.
3. Company Formation
I made a big blunder here and that delayed the whole project by few months. People initiate the legal requirements at the initialization but I started at the end. I know I would make mistakes, I would fall, but that’s not that important. Something that’s important is how soon can I cope up and how fast can I rise after the fall and learn not to fall atleast by the same mistake.
4. Technical Requirements
You can call me a person with negligible technical knowledge. Many would have turned back due to their no technical background. I know I could go wrong in technology, back end server support, customer navigation experience but that’s learning. We shall learn over time but quick. Pls Pls support me and request you all not to turn your back at your very first bad experience. Bring it to my notice and I assure you that a customer won’t lose. I commit myself to build a better future. Something that’s truly ours.
I need your support and blessings. We may not be cent percent perfect initially but help us be one. Help us build something that’s truly ours. Shop, invest and earn right here at hindglobal.in
Monday, December 31, 2007
Online Shopping and Future Trends - India
Online Shopping Trends - India
Executive Summary
Online shopping refers to physical goods purchased online that are consumed offline. This is also termed as Etailing.
Etailing market size in India stands at Rs 850 cr in the year 2006-07 and is expected to grow by 30% for the next 5 years. Currently, Etailing in India is dominated by the concept of Marketplace.
To make it easy to understand, Marketplace is referred to as something where there are large number of buyers and sellers. The best example for this concept is ebay.
We are slowly moving into a pure online retailing concept (large no. of buyers and only one seller) with the advent of players like futurebazaar and hindglobal. Futurebazaar.com, with its deep pockets and infrastructure of its parent is definitely going to drive the market and expand its size. However, it would need to grow at a much faster rate to sustain due to its relatively higher overheads and sheer size of the organization which makes it less customer centric. Hindglobal.in, with far lower cash to burn needs to work pretty hard to gain in the confidence of the buyers.
Triggers
1. Low cost carriers
Thanks to Air Deccan and other LCC carriers in India, the concept of buying air tickets online spread not only to Metros but also to Tier II and III cities. I have come across many people wanting to avail of a credit card so that they don’t miss upon the free tickets offered by these carriers. Indian railways through its portal irctc.com had further added fuel to this fire. It’s only few more years where these people would move further up the ladder to purchase products online.
2. Credit Card User base
The credit card user base in India is exploding adding around 2 million cards every month. Further, with easy EMI options provided by banks and etailers who go to the extent of bearing the costs and providing EMIs at zero percent rate of interest to the customers are getting people to buy online rather than offline stores.
3. Broadband penetration
Unlike chat or emails, shopping online requires good internet connection. As per CII, broadband penetration has already crossed 3 million in 2006 and is expected to cross 10 million by 2010.
4. Indian Retail growth story
The hype around the retail growth in India has created a tremendous increase in commercial rents. These rents are passed on to the customer in the form of increase in product prices. This is where etailers have a cost advantage. They can provide a good bargain to their shoppers inducing them to buy products online.
5. Convenience
A trip to a mall especially on a Sunday can take few minutes to few hours depending upon the distance and traffic. The increase in vehicles with no simultaneous increase in infrastructure compels a customer to save time and efforts by shopping online.
These factors would slowly make the next Indian growth story in the form of e-retailers. As I repeatedly say that we have space to accommodate 3 Amazons in our country, it’s only few more years when this comes true.
- Vivek Jain
Director – Rinks Retail Pvt. Ltd
www.hindglobal.in
Note: www.hindglobal.in is currently under development and is expected to go live in the next two months.
Executive Summary
Online shopping refers to physical goods purchased online that are consumed offline. This is also termed as Etailing.
Etailing market size in India stands at Rs 850 cr in the year 2006-07 and is expected to grow by 30% for the next 5 years. Currently, Etailing in India is dominated by the concept of Marketplace.
To make it easy to understand, Marketplace is referred to as something where there are large number of buyers and sellers. The best example for this concept is ebay.
We are slowly moving into a pure online retailing concept (large no. of buyers and only one seller) with the advent of players like futurebazaar and hindglobal. Futurebazaar.com, with its deep pockets and infrastructure of its parent is definitely going to drive the market and expand its size. However, it would need to grow at a much faster rate to sustain due to its relatively higher overheads and sheer size of the organization which makes it less customer centric. Hindglobal.in, with far lower cash to burn needs to work pretty hard to gain in the confidence of the buyers.
Triggers
1. Low cost carriers
Thanks to Air Deccan and other LCC carriers in India, the concept of buying air tickets online spread not only to Metros but also to Tier II and III cities. I have come across many people wanting to avail of a credit card so that they don’t miss upon the free tickets offered by these carriers. Indian railways through its portal irctc.com had further added fuel to this fire. It’s only few more years where these people would move further up the ladder to purchase products online.
2. Credit Card User base
The credit card user base in India is exploding adding around 2 million cards every month. Further, with easy EMI options provided by banks and etailers who go to the extent of bearing the costs and providing EMIs at zero percent rate of interest to the customers are getting people to buy online rather than offline stores.
3. Broadband penetration
Unlike chat or emails, shopping online requires good internet connection. As per CII, broadband penetration has already crossed 3 million in 2006 and is expected to cross 10 million by 2010.
4. Indian Retail growth story
The hype around the retail growth in India has created a tremendous increase in commercial rents. These rents are passed on to the customer in the form of increase in product prices. This is where etailers have a cost advantage. They can provide a good bargain to their shoppers inducing them to buy products online.
5. Convenience
A trip to a mall especially on a Sunday can take few minutes to few hours depending upon the distance and traffic. The increase in vehicles with no simultaneous increase in infrastructure compels a customer to save time and efforts by shopping online.
These factors would slowly make the next Indian growth story in the form of e-retailers. As I repeatedly say that we have space to accommodate 3 Amazons in our country, it’s only few more years when this comes true.
- Vivek Jain
Director – Rinks Retail Pvt. Ltd
www.hindglobal.in
Note: www.hindglobal.in is currently under development and is expected to go live in the next two months.
Saturday, December 15, 2007
Online Shopping - India
Hi Friends
As earlier said, Lets build something that belongs to you and me. I invite suggestions for a better shopping portal. Atleast unlike others where atleast you are heard and taken care of.
To disclose the name, its http://www.hindglobal.in/ . the name has been selected keeping the mind that we are going global but are still Indian. Achieving global heights but not at the cost of our traditions and cultures.
Also, I am looking customers cum investors for the company. I mean both the words - customer and investor in combination. I want my customers to be the investors of the company. You need to shop, invest and earn right here. Your shopping expenses should be recovered through increase in your investment in the company. No profit is a profit unless shared with the society.
Friends - I repeat 'Lets join hands to build something thats truly ours"
My first blog dated 18th Nov 2007 on http://www.mouthshut.com/ (overwritten currently) stated below
Going through all the complaints, since last few days and researching on this subject, I find that there is something definitely wrong with online retail in India. We need to thrive towards seting a benchmark on this.
We have a potential to accomodate three amazons in our country. Its just that etailers need to understand the customer requirements and bring in more transparency to the customer with reference to their order. Etailers today expect customers to buy what they sell and also compel customer to rigourously followup with them to get their order delivered to him in time.
Your blogs inspires me to look at this untapped potential which is a huge market.. Pls put down your expectations from a shopping portal and I promise to fulfill your expectations and come up with a ecommerce portal thats definitely built by you.
You can alternatively mail me at vivekjain1907@rediffmail.com with your suggestions.
Lets work towards building a great future, something that belongs to you and me.
- Vivek
As earlier said, Lets build something that belongs to you and me. I invite suggestions for a better shopping portal. Atleast unlike others where atleast you are heard and taken care of.
To disclose the name, its http://www.hindglobal.in/ . the name has been selected keeping the mind that we are going global but are still Indian. Achieving global heights but not at the cost of our traditions and cultures.
Also, I am looking customers cum investors for the company. I mean both the words - customer and investor in combination. I want my customers to be the investors of the company. You need to shop, invest and earn right here. Your shopping expenses should be recovered through increase in your investment in the company. No profit is a profit unless shared with the society.
Friends - I repeat 'Lets join hands to build something thats truly ours"
My first blog dated 18th Nov 2007 on http://www.mouthshut.com/ (overwritten currently) stated below
Going through all the complaints, since last few days and researching on this subject, I find that there is something definitely wrong with online retail in India. We need to thrive towards seting a benchmark on this.
We have a potential to accomodate three amazons in our country. Its just that etailers need to understand the customer requirements and bring in more transparency to the customer with reference to their order. Etailers today expect customers to buy what they sell and also compel customer to rigourously followup with them to get their order delivered to him in time.
Your blogs inspires me to look at this untapped potential which is a huge market.. Pls put down your expectations from a shopping portal and I promise to fulfill your expectations and come up with a ecommerce portal thats definitely built by you.
You can alternatively mail me at vivekjain1907@rediffmail.com with your suggestions.
Lets work towards building a great future, something that belongs to you and me.
- Vivek
Subscribe to:
Posts (Atom)
