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Raman Mangalorkar

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India Case Study:
Changing the face of grocery shopping –
picked not shipped
April 8th, 2015
Indian retail – significant growth
Organized
Trade
Unorganized
Trade
2
Characteristics of retail in India
 Fragmented – only 8 to 10% is organized modern retail
 Subscale and inefficient
 Low margins and high capital costs
 Exploring different business models
 Ecommerce gaining traction
Era of ‘Blind Bullishness’ is past us – we are now
driving towards building profitable business models
3
Ecommerce is gaining traction
Product
Based
Service
Based
4
The ecommerce craze is on; with all its froth!
5
Omni channel is the future in India
 Significant traction by online players with superior funding
 Increasing penetration of internet and mobile
 The concept of CoD (Cash on Delivery) as an enabling phenomenon
 Lack of options in tier 2 and tier 3 cities
6
Click and Collect will be an important proposition
Demand for Click & Collect
Challenges with
implementing Click & Collect
 Launching the business case
 Customers are demanding more
options
 Click and collect can generate
incremental sales and improved
profitability
– address “cannibalization”
 Pricing
 Picking and packing
capabilities
 Marketing and branding – the
online experience
7
Roadmap for retailers to execute click & collect
 Gain organizational commitment about the opportunity
 Create a separate but aligned team to assess and pilot the program
 Obtain the capabilities – in-house vs outsourced
 Pilot the program and measure performance
 Invest in branding and market the concept
 Refine the model if required – one step in the Omni-channel play
 Stay committed and REAP THE REWARDS !!
8
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