The rise of M-Commerce Klein Perkins (one of the world’s largest PVC firms) research Into mobile Internet sage this year uncovered some fascinating Insights for the Indian context. Globally, the share of mobile Internet traffic Is approximately 13%. However, In India, the % curves for desktop internet . V. Mobile internet countersignatures in May 2012 and have since diverged: mobile Internet traffic in India now outweighs desktop traffic.
Assuming this trend continues, and is perhaps accelerated by the emergence of increasingly affordable in mid-low end smartness (with even Apple rumored to be entering this market), India will be the flirts true-mobile-first market. Indian e- amerce firms prepared to Invest In creating world-class mobile platforms are best- positioned to capture more market share. Bridging Tachometer Product Experience Gap The essence of e-commerce still means that customers must feel a certain degree of comfort that what they are buying will fit them / look good on them / look right in their living room etc. And clearly many Indian shoppers still have major concern over this (despite generous returns policies). In 2013, we expect to see some Interesting initiatives In India to bridge the Information gap between what the consumer wants and what the product is. In fashion and lifestyle this may include innovations that leverage technology to help a consumer to find an item of clothing that is a perfect fit via a Virtual try-on’ experience, or perhaps how an item of furniture will look in your own living room.
Social becoming more about Online Reputation Management (OROMO) and less about catching attention E-commerce adopted the use of social media early on, but for a long time social media has been about eyeballs, offers and other ways of grabbing the attention of potential customers. The thinking was that wherever the customer is, your brand should also be. Simple. Well, not really. Your rand’s online reputation management must be characterized by the existence of one seamless Voice’ across all channels: Backbone, Twitter, Linked and so on.
Customers in 201 3 will more and more value brands that stand for something, or are differentiated In ways other than low prices and wide product ranges. We have seen lust how Important this mix Is with our recent focus on Apple products. Customers are buying Mossbacks, pads, and phones from us directly from social media engagement that is not limited to offers and features. Our OROMO across our social media platforms has been a focus of ours of late, and companies more and more will understand the value of this in 2013.
Product Videos: Engaging and Informative high quality product images on their product pages. Typically, products are photographed from several angles, with the photos touched up to give a glamorous look. Photos tell part of the story, but in 2013 we believe video will start to be a significant differentiator in e-commerce for a number of reasons. Firstly, you can create more impacting content via video. Sure, that laptop bag looks nice from several different photo angles, and I can read all I need to about the product in the product description section, but how does it look on someone’s arm?
Does it look sleek and professional or a little tacky? How many compartments does it have? How big are they? Could I comfortably fit a laptop in there along with a couple of books and a few snacks to keep me going throughout the working day? What are the best features of the bag? What would a young business professional think of it? These questions and more, could all be answered with a simple 60 second product video, with someone showcasing the product, putting it to use, and laying out its strong points in a way that appeals to the viewer.
Product videos are not easy to execute, but if done well hey can have a significant impact on product page conversion rates. We expect to see this as a major trend in Indian e-commerce for 2013. ‘Shippable’ Images ; Videos And even going one step further, interactive, or ‘shippable’ images and videos have recently been experimented with by several large players, including KEA and Gucci. Shippable images create a vision of how products will look in the place where they are meant to be placed.
So rather than browsing through an array of product pages to look at images of chairs, tables, sofas (all with plain white backgrounds) customers an browse through images of a fully-furnished home, tastefully designed with a selection of products available from that company – each product viewing in its natural setting, with of course a climbable link from the product image to the product page. Shippable videos can be used in a similar way.
With the typical high- production values of a fashion video, a company can display this season’s must have products – the difference being that the products in the video are climbable (even as the video plays) and when clicked, bring the viewer to the product pages of the selected product. Emergence of BIB The Indian e-commerce story so far has been dominated by BBC e-commerce companies. However, there is one trend that has yet to really hit the subcontinent, which we believe will begin to feature more and more in 2013.
This trend has revolutionized how business is conducted in the developed world and the numbers involved are incredible. The trend is BIB e-commerce. In the 2012 US Dept. Of Commerce report, BIB commerce in the US was measured at $3. 7 Tn. While this figure includes transactions carried out over EDDIES (egg. How Hallmark manages electronically its inventory requirements with 60,000+ suppliers) the figure is very such representative of businesses adopting e-commerce en mass. In the same report, BBC e-commerce is measured at $400 Ban. A huge figure on its own, but it is a mere 10th the size of BIB.
Indian BBC e-commerce is currently valued at $14 Ban, with many commentators predicting it to reach $60-80 Ban by 2025. But looking at the US, the giant opportunity of tomorrow in Indian e-commerce’s clearly BIB. Companies that can win the loyalty of businesses and leverage technology to assist the new of the BBC portals. Businesses buy larger basket sizes, and they buy more often in comparison to consumers. The question is not ‘if, but When’ this macro trend will really hit India. We believe that the BIB e-commerce wave could soon hit India because of the educational role that BBC has been playing for the past 5 years.
The advancement of BIB e-commerce is very much supported by the prior establishment of a strong BBC market. In a nascent market like India, potential business buyers may be resistant towards embracing e-commerce for reasons of trust, skepticism, or Just general inertia that sometimes hampers the adoption of would-be beneficial innovations within an organization. However, with the penetration levels of BBC e- commerce increasing month-on-month, and with 800% growth over a 5-year period, BBC e-commerce has reached a point of critical mass.
In 2012 e-commerce has very much been on the business agenda, and many business professionals have by now bought online – it’s much easier to hand over RSI. 200 for a book on your first online purchase than it is to spend several lacks on a bulk order consignment of laptops for your business. But those first few BBC purchases, if a satisfactory experience for the customer, are laying the foundation for adoption of e-commerce in Indian business y those same customers who have gained comfort with e-commerce via BBC.
It is certainly our experience with the majority of our customers. Almost all have prior experience as BBC customers with the established players. So not only are they well- educated about e-commerce, but they expect nothing but the highest standards of customer service. Companies of all sizes are adopting. While we serve smaller orders via our website very efficiently, we’ve gone an extra step further with our corporate Microsoft offering for large businesses: we offer tailor made e-procurement solutions for large businesses to streamline their operations in this area.
And if today’s business professionals are gradually adopting e-commerce, the business leaders of tomorrow are already full-blown experts. The age profile of Indian Internet users is overwhelmingly young: 75% of users are in the 15-34 age bracket. Today’s young Indian web-users are already booking cinema tickets, and buying shoes online and are extremely comfortable using e-commerce. The same individuals who are buying movie tickets and shoes for themselves today, will be the Meds and admit buyers of tomorrow – thus, even if the BIB e-commerce wave does not break fully in 2013, its arrival over the coming few years is very much certain