What if you make an online purchase but pay for it later (once you receive it), and that too in cash? Think—no credit card risk, no risk of a wrong or damaged product, and guess what, you still save time by ordering online! This is the key to the e-tail revolution in India—Cash-on-Delivery (COD).

Although India has an internet base of over 100 million users (and still growing), slow and skeptical adoption of electronic modes of payment by consumers creates a unique challenge for e-commerce companies. To tap into this market, Indian e-commerce sites have combined the traditional mode of payment—cash, with changing consumer behavior—internet usage.

While the COD model has encouraged online shopping in e-commerce sites (estimated to be 40-50% of online transactions), it still sees high product returns—an average of 30% to 40%? Then, why do online companies (local and global) still opt for such a method of payment in India?

For e-commerce sites in India, COD contributes significantly to market penetration and revenue growth by: Read More »

The Indian Retail market—ranked the fourth most attractive amongst 30 emerging markets—has caught the global market attention by storm in the last few years. Still heavily tilted towards traditional retail, times seem to be changing with the introduction of 100% FDI for single-brand retail and 51% (currently under debate) FDI in multi-brand retail. In fact, the organized retail market in India is expected to grow at 25% and reach a size of US$200 billion by 2020.

India’s retail boom is driven by a plethora of reasons–from increasing disposable incomes and changing lifestyles, to growing demand in rural areas and smaller towns, and the rise of the global consumer. Indeed, global retail giants are trying to tap into this vibrant market but their core business model seems to be failing their aspirations.

The reason behind this change—the unique purchase drivers of the Indian consumer. Think–Value for money (through deals and bargain-hunting), convenience (e.g., deep rooted system of home delivery of purchases) and relationship based customer service (legacy of “kirana” or corner stores).

So, to survive and grow in such a consumer market what are retailers doing? Tweaking their business models and making their stores locally relevant. Take a look at how global and local companies are adapting and innovating their consumer marketing strategy for the Indian consumer in the organized market. Read More »