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www.redseerconsulting.com [email protected] RedSeer Consulting Confidential `and Proprietary Information© |New Delhi I Bangalore I Mumbai I New-York I Dubai
The Indian E-tailing Leadership IndexVersion 3
Aug – October 2016
1RedSeer Consulting Confidential
What does the E-tailing Leadership Index (ELI) measure?
ELI is a comprehensive assessment of e-tailer’s overall performance in customer’s
mind. It is based on the three pillars, which are:
Indian e-tailing Leadership Index
Most Trusted Brand
Most preferred e-tailing brand
for the online customers
Best Value
Maximum value for money
and wider "meaningful
assortment”
Great buying Experience
Best buying experience from
product discovery to post
delivery experience
1 2 3
2RedSeer Consulting Confidential
How is it structured > Most Trusted Brand
E-tailer brand that is most trusted by online consumers
• Brand Recall
e-tailer which has the highest “top of the
mind” recall for most preferred online brand
• Unaided Recall
e-tailer which has the highest “unaided”
recall for the most preferred online brand
3RedSeer Consulting Confidential
How is it structured > Best Value
E-tailer that provides the best value for money along with meaningful assortment
• Price competitiveness
Where would you find the best prices and
discounts available among the e-tailers
• Product variety and availability
What are the chances of finding the product
you are looking at among the e-tailers
• Quality of products
What do you thing of the quality of product
available on each of the e-tailers
4RedSeer Consulting Confidential
How is it structured > Great Buying Experience
E-tailer that gives best end to end buying experience
• Exploring & ordering products (For web & app)
How easy and intuitive they find product
exploration on the app and websites of the e-
tailers
• Delivery predictability and experience
How quick and precise is the overall delivery
How quick is the reverse pick-up in case of
returns
• Consumer experience post delivery
How easy it is to return products
Speed and ease of refund
Quality of customer support
• Overall NPS
Overall satisfaction of customers with end to
end experience based on NPS methodology
5RedSeer Consulting Confidential
The results of the study is based on the following research themes:
Methodology Used:
6000 customer surveys across 30 cities (Metro Tier-I and Tier-II) in August to October period
All respondents have to be e-tailing customers, having bought something from the concerned websites in the last 3 months
The survey was split between the SEC A, B and C population, with equitable distribution of age group and gender
1 2 3
Statistical technique of TOPSIS has been used to arrive at the indexing from the responses and hard numbers
4 The study is entirely based on consumer perception and works on a proprietary RedSeer algorithm
5
6RedSeer Consulting Confidential
Evaluation Parameters and Weights
25 25
50
Most preferred Brand
to Shop From
• Top of the mind
• Unaided
Product Variety and
Availability
• Product Availability
• Product Variety
• Product Quality
Price Competitiveness
• Pricing and Discount
• App & Web– Design & Look
– Ease of Navigation
– Product Description
– Check Out Experience
– Payment Gateway Experience
Delivery/Cancellations/Returns
• Delivery Time
• Reverse Pick-up speed
Consumer Experience Post
Delivery
• Refund (Days)
• Customer Support1
• Ease of Return
Overall Consumer NPS
Web & App Experience
A. Most trusted brand: B. Best Value Proposition:
C: Great Buying Experience:
1 Customer Support parameters are measured as Average Wait Time (Secs), First Time Resolution & Escalation
The analysis is based on 30+ parameters analysed in the three pillars
7RedSeer Consulting Confidential
Player-wise Performance
97
95
75
74
58
56
23
21
7
10
4
2
25
25
24
24
22
24
49
49
44
40
32
30
Fli…
Ama…
Pay…
Sna…
Sho…
Eba…
Most Trusted Brand Best Value Great Experience
97
94
71
75
59
55
Q3 2016
October 2016
8RedSeer Consulting Confidential
Overall Industry Trends: Q2 to Q3
Rationale
• Gained from an already strong position to retain top spot; increase in Brand
Recall metric & a slight decline in Delivery Time, usually the case with GIFS
• Closed second with large gains in all parameters; high marketing spend
resulted in a upward tick with gains in Brand Recall & highest industry NPS
• Most improved e-tailer with significant gains in Overall Experience and a
marginal gain in NPS
• Rebranding & marketing spend had a positive impact on Brand Recall which
explains the higher October score, but unable to service demand effectively
• Maintained previous position; upward tick in Post Delivery Experience
cancelled out by downward movement of Brand Recall
• Maintained previous position with slight reduction in Experience and an
upward movement in NPS
• The industry has moved upward over the last two quarter, (reflected in the higher NPS score), but has suffered from
increased customer expectations
• Q3 NPS metrics were impacted in the short-term by the Great Indian Festive Sale (GIFS), held over a 5-day period in
October
17%
29%25%
ELI 1 ELI 2 ELI 3
Industry NPS
Same as Q2
Up from Q2
Down from Q2
9RedSeer Consulting Confidential
The Great Indian Festive Sale
0.10.7
1.10.9 1.0 1.3
0.02 0.10.8
Notes
1. The numbers compared are: Singles’ Day for China, Cyber Monday for USA and 5-day total of the Festive Days (typically October)
2.9
13.8
~5-6
• China registered a 50+% y-o-y growth in 2016, the 7th year since the first Singles Day in 2009, despite a base >60x that
of India, whereas USA is clocking a steady 20+% y-o-y growth
• India is expected to grow at a slower rate than China at ~45% CAGR to reach US$ 4.9 billion by 2020, 7 years from the
first edition of the Great Indian Shopping Festival in 2014
Year 1 Year 2 Year 3 Year 7
Great Festive Sales (GFS) – E-tailing GMV1
(USD Billions)
6.6% 0.7% 0.7%
~6% 0.8% 2.4%
2014 2009 2009 2015 2010 2010 2016 2011 2011 2020 2015 2015
GFS GMV as
% Annual GMV
Year 1
China First year of Singles’ Day (2009)
India First year of that GISF (2014)
USA 2009 to maintain comparability
2.9% 0.4% 0.0% 5.5% 0.6% 0.2%
10RedSeer Consulting Confidential
Notes
Notes:
1. Only the horizontal e-tailers have been considered for this study
2. For Pillar A – Higher weightage has been given to "Top of the Mind Recall" over the
“Unaided Recall"
3. For Pillar B – Price Competitiveness has higher weightage than Product Variety and
Availability
4. For Pillar C – App has been given higher weightage when compared to App given that a
larger customer base buys using the App
11RedSeer Consulting Confidentialwww.redseerconsulting.com [email protected] RedSeer Consulting Confidential and Proprietary Information©
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