Differentiation : A Challenge Or An Opportunity for E-Retailers!!

Differentiation : A Challenge Or An Opportunity for E-Retailers!!

Excerpts from Indian Retail Congress: A special Thanks to Mr.Praveen Sinha - Co-Founder & Managing Director at Jabong, for his contribution...

E-Retail is in Early stage in India. It is moving ahead of the market here unlike in West. Indian market gives a huge opportunity but at the same time places lot many challenges for all E-Players. For `Brick n Mortar` Giant Walmart 17% Global business comes online, so future is surely `Click n Buy` but market like India is still raw. Companies have to invest a lot in creating market here, and in this process, there would be lot many new challenges and leanings for everyone.

Two challenges are prominent in this space:-
1- How to get traffic??
2-How to give scale & depth if at all you sustain??

So there are two strategies , an E-tailer can choose with:-
1. Collaborate with brands!!
2. Or Find your Niche!!

If you go for the 1st one, there can be several models (Inventory,Marketplace, Hybrid, etc). But whatever the model you choose, one thing should be your top priority and that is Customer Experience. That should be seamless in all the models and there should not be any dilution if you wish to make yourself a Brand.

The challenge with Collaboration, is that Every partner has its own processes , hence you have to reach a common platform to serve your customer.

Other challenge is that Online has once lost the Trust of customers so current companies are trying extra hard to win them back. Its surely a channel which gives a business idea the much required scalability. But with it also comes some worries, How many Options??, Assortment??, How to differentiate??

Multiple factors comes into play:-
1. The Model (The most important thing and the starting point for this business)
2. The Content (Explains the nuances of the products available)
3. The Product (Assortment levels: 1 L Products surely can differentiate as customer loves options..)
4. The Pricing (Its a strategy and decides your Positioning & TG)

But If you rate 3 most important Pillars Of Differentiation, they are:-
1. Assortment - 1K Or 1L
2. Customer Experience - How are you ensuring last mile fulfillment an Post Purchase behavior?? COD/Immediate Return/Exchange....Everything Matters!!
3. Positioning - Multiplay Or a Fashion Specialist!!