MAM

Going from clicks to bricks

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2018/01/02/E-commerce.jpg?itok=bKM1giQB

MUMBAI: Nothing beats the feeling of being served at your doorstep and this convenience is what has thrust e-commerce to pole position among shoppers worldwide. Add to it the ease of picking, cross-checking prices across sites and the frequent discounts are the cherries on the cake.

The growth of e-commerce became evident since 1994, with the first sales of Sting album in the United States. Soon, products like wine, chocolates and flowers became the pioneering retail categories which further fuelled the growth of online shopping. Before long, researchers dug out that some products are more appropriate for e-commerce buying than others – most of them turned out to be generic items which didn’t need physical touch validity. Nothing isn’t online today, you name a product and it’s up for purchase.

India officially went online publicly in 1995; before that, it was only for research and educational institutes. It was in the early 2000s when India was introduced to a novel way of purchasing – teleshopping. With the advent of the internet age here, this hopped onto the web with Flipkart being one of the earliest entrants. Starting with books, the Softbank-backed company is now giving a tough fight to America’s Amazon.

Old teleshopping TVC:

Today, India has an internet user base of over 450 million, which accounts for 40 per cent of the country’s population. NASSCOM has projected the country’s e-commerce market to be worth Rs 2 lakh crore this year. As per Google, there were 100 million online shoppers in India in 2016. Online apparel is one of the most popular verticals, which along with computers and consumer electronics, makes up 42 per cent of the total retail e-commerce sales. According to various media reports, India’s online retail market grew at about 25 per cent in 2017 and is projected to touch $20 billion by the year 2020. It won’t be incorrect to say that it has been a joyride for online websites and e-commerce platforms in India.

But things seem to be changing now. Following a successful run in the online world, e-commerce companies are now venturing into a space they once thought would soon see the same fate as dinosaurs— brick and mortar stores.

Globally, this phenomenon has taken the industry by a storm. Large organisations that were leaders in online have taken the route of opening physical stores or pop up shops. E-commerce marketplace Amazon is one such example. The global giant has teamed up with Calvin Klein to open holiday-themed pop-up stores in New York City and Los Angeles. Chinese e-commerce titan Alibaba is all set to steal a page from Amazon’s playbook by opening its first store in Shanghai.

In India, lifestyle and fashion company Myntra, beauty and cosmetics website Nykaa, eyewear company Lenskart, housing and furniture websites Pepperfry and Urban Ladder and lingerie website Zivame are a few of those who have taken the online-to-offline route.

Lenskart has established its strong presence in the offline space and is targeting to take its total brick and mortar count to over 900 in the next two years. Its current 400 offline stores contribute 50-60 per cent of its business. Online furniture website Pepperfry currently has over 23 physical stores which contribute 20 per cent to its overall sales.

Flipkart owned online fashion marketplace, Myntra is considering launching its own multi-brand offline stores where customers can walk in and shop for all the collection that is also available on its online platform. Earlier in March 2017, Myntra launched its first offline store in Bengaluru for its homegrown brand - Roadster. The decision is in line with the company’s effort to aid profitability.

Pepperfry, Lenskart and Urban Ladder are aiming to come up with their Initial Public Offering (IPO) in the next two to three years.

Chinese mobile handset manufacturer Xiaomi, which was only available in India via Flipkart and Amazon in 2016, decided to open up stores here to boost sales and boy, did that work for the company!

Xiaomi, which currently has 13 Mi Homes in top six metro cities, plans to increase the count to 100 by the end of next year. The Chinese manufacturer clocked revenue of about Rs 7000 crore in 2016 but doubled it in 2017 posting Rs 14,000 crore.

Online leaders are investing heavily in setting up physical stores to fuel their next phase of growth. The move aids them in getting more customers and the hybrid strategy helps in gaining double-digit growth figure while expanding the business.

Setting up offline stores also helps brands in balancing the high cost of acquisition that the online store demands. Although this is an emerging trend which will play an important role for online retailers in the days to come, brands have begun to embrace this omnichannel approach.

Having said that, it is also a gamble that not every brand might have an appetite for. Setting up physical stores means investing heavy money into infrastructure and land acquisition while also running the risk of the store being an utter dud! It is a win-win situation for brands that are willing to embrace the step back.

Also read:

A year after demonetisation: E-payment services emerged winners

BFSI's changing communication in the digital era   

E-commerce ad wars are the result of marketing myopia: experts

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/KKR.jpg?itok=VGh5T3w-
DDB Mudra Group creates a new rally cry for team KKR

MUMBAI: The Kolkata Knight Riders (KKR) is a franchise cricket team representing the city of Kolkata (West Bengal) in the Indian Premier League (IPL). The team, defined by its ‘Korbo, lorbo, jeetbo’ (Play, Fight, Win) spirit has won the championship trophy twice. At the IPL 2018, the team has...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/TVC.jpg?itok=ZAoero-6
Black & White launches first India TVC

MUMBAI: Black & White Gettogethers from Diageo India has launched its first-ever India-specific TVC conceptualised by J Walter Thompson Bangalore and inspired by the brand message, “Made of Sharing”. It is a commercial that exhorts us to go out there and share moments and experiences with...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/swiggy.jpg?itok=8uUGzjSI
Swiggy smashes creative sixer this IPL season

MUMBAI: Food ordering and delivery platform Swiggy has launched six relatable and witty television commercials this IPL season to celebrate two of India’s biggest passions — cricket and food. The multi-lingual campaign is conceptualised by Lowe Lintas, Bengaluru. Swiggy roped in seasoned cricket...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Activa_5G.jpg?itok=AVFD1XCm
Honda launches new campaign for Activa 5G

MUMBAI: Honda Motorcycle and Scooter has introduced a 360 degree ad campaign for the iconic Activa 5G. Developed by Dentsu One, a Dentsu Aegis Network Company, the TVC is now on air across all popular channels.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Bisleri-Fonzo.jpg?itok=UUzSs6YS
Bisleri launches new ad for Bisleri Fonzo

MUMBAI: Bisleri International recently announced the launch of its new brand Bisleri Fonzo, a mango aerated drink. The launch is supported by an integrated marketing campaign #MMMbhiAAHbhi which conveys the sensorial experience of the product – the delectable taste of the juice and the refreshment...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Sania_Mirza-800_0.jpg?itok=clgZmkgG
Centuary Mattresses gets Sania Mirza as brand ambassador

MUMBAI: Centuary Mattresses has appointed Indian tennis player Sania Mirza as its brand ambassador. This move also makes the company an early mover amongst the Indian mattress companies to have an association with a celebrity brand ambassador.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/IAA_1.jpg?itok=QnNuHZt7
IAA unveils new identity on 80th anniversary

MUMBAI: The International Advertising Association (IAA) has unveiled its new identity and mission, symbolised by the introduction of a new logo that signifies its transformation and culture of thought leadership built over the association’s 80-year history.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/Windus-air-cooler.jpg?itok=CTFS2AdS
BlueStar promotes new cooler range

Air conditioner manufacturer, Blue Star, recently entered the air cooler market with its own brand: Windus.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/tiger.jpg?itok=Z_UnZnPC
Forca launches new campaign with Tiger Shroff

MUMBAI: Lifestyle has launched a powerful digital first campaign for its denim-wear brand Forca starring Tiger Shroff. Capturing Shroff in action, performing stellar stunts, the film dramatically frames his high-action acrobatic jumps, backflips, kicks and many such moves that highlight the...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories