“Customers From India Want To Know The Cost Of The Order, But They Need To Provide Them A Discount”

E-Commerce continues to grow. Despite the shortage of infrastructure investment, mental and business features in different countries, industry adapts to new markets and tries himself in different conditions. Soon, purchases will become widespread. Everywhere, where you can offer a product, retailers will create an individual offer.

There are always new models that improve the process of shopping online — the system of personal assistants and predictive Analytics. Now, what is called, last call for all service companies that want to succeed in e-Commerce. Every year the release and capture of the market will be more difficult. The share of ecommerce in the global retail sector by 2020 will grow more slowly, but still have a place for a large number of new players.

The number of products sold online is growing and will grow. By that 2020, online spending will reach 38% of the total B2C-Commerce. The retail industry in the whole world will grow by 5-7% per year, slowing down in the growth rate by the year 2020, while the share of e-Commerce in the global retail sector will increase from 9% to 15%.

Especially fast-growing can be considered emerging markets, and India is the most promising of them. The huge number of Internet users in the country (462 million) in a few years will grow to 700 million people. If we compare the figures on Internet penetration in India, data on population and the current proportion of online sales in total retail (and less than 0.5% assessment PwC), it becomes clear that India will provide the lions share of growth in online sales. In China with its large population, the proportion of online sales are already over 10%.

There are major players already established, and India is waiting for its heroes. Rich of the population of India exceeds the entire population of Russia, and it is concentrated in 12 major cities. The Indian market is fundamentally different from the Russian mentality and approaches.

Indians are very enterprising and active, and to beat them in the domestic market is difficult — you need a real technological advantage. They have a lot of family business, small and low by our standards margin. So far the country has accumulated best practices, it is possible to form the rules of the market. For example, in the field of shopping from online stores there are no standards, we are engaged in “design” of this market and related, established rules that will allow you to develop e-Commerce and will be understandable to consumers.

The payment culture in the country is also a kind of. More than 80% of payments carried out in cash, people do not trust online payment tools. While rich Indians, on the contrary, prefer to pay with “plastic” or online wallets. There is a feeling that very soon the share of payments using cards or online wallets will increase many times over because such strong players like PayTM and PayUmoney, conduct an aggressive policy on the user behavior.

There are many FINTECH startups aiming at the integration of payment instruments. E-Commerce is important to have people who are willing and able to work in this field. India in this sense, the ideal. Socio-demographic distribution here is shifted towards young population.

Bloomberg reports that by 2025 India will be the world leader in the addition of able-bodied population. The cost of low-skilled labor will continue to decrease. In Indian cities, high population density. In Mumbai she and a half-two times above, than in Moscow, even if you count all the inhabitants and put them inside the ring road.

It imposes its own characteristics and electronic Commerce, and transport. We started with the most populous cities in India — Mumbai. The formal launch of the service took place in July 2016.

Now “Dostaviti” adjusted operating activities in the three cities. Mumbai, Delhi and Bangalore. Technical competence is wholly located in Russia, in India, work with client managers and contact center. While it is incorrect to talk about the expected income, since they are tied to period, but we will tell.

Now we can say about the speed of growth. For two or three years in India, we plan to grow several times faster than Russia over the same period. We are not talking about some kind of exceptionalism “Dostaviti” other Russian companies also will be able to achieve success in the development of the Indian Internet and services that are ordered through the network. The market is in the initial stage of growth, and most potentially monetize niches still relatively free.

However, it is better to consider that India is indeed a different civilization, and a model simply will not be needed. The usual methods of business development can also not work. This country is heavily regulated by law, foreign investment in key sectors is prohibited.

India is not the business of El Dorado, where to advance projects easily, and the money will fall into the hands of. This is a common developing country with typical problems and risks. But it has much more attractive prospects than other. Indian online market is about to become a battleground for global players of e-Commerce.

Now in the market there are Amazon, Naspers and to major Chinese Internet companies. Expansion began Chuxing Didi and Alibaba. Moreover, the Chinese companies are building from a holding company with vertical integration. The online platform, payment system and service — for example, taxi Ola.

The beginning of activity of “Dostaviti” in India was preceded by careful preparation. Market research, analysis contractors. We looked at the indicators in the macroeconomic data, studied the topology and demographics of cities, transportation system, expected costs and revenues of couriers and company, evaluated the attractiveness of the offer for couriers and shops. There were a few trips.

I have actively used LinkedIn to create a database of advisers, many of them then met in person. Companies with which we cooperate on accounting and legal services, were formed through personal contacts. At the opening of business in is not very familiar to the country are inevitable problems. They are connected first of all with the new legal pool, and other consumer behavior and culture in General.

For example, we found that contextual advertising with reference to the fixed cost works worse than without prices, which is contrary to European practices. We had to give customers a channel in which they can be traded. Now a large proportion of the orders executed through the operators — but in the online chat, not by phone, as it was in Russia.

New customers often ask about the discount. Please provide the best price on this particular order. It is as if in Russia the customers bargained with the driver, Uber. However, for them it is more of a symbolic act than a real economic problem.

Clients generally meet a 5% discount, and subsequently they are not asking about tariff reduction. India has two official languages. Hindi and English. The majority of the population speak some English, but not equally well.

Almost all Internet shops work in English, the largest in seven or eight languages, but online shopping is focused on buying audience. Our couriers does not relate to the target audience the Internet-shops. For them and for the company it is important to be able to solve the questions in their native language. Thats why our state of the call center two times more than could be.

In the future, its not a problem. The size of the operators staff is in direct proportion to the volume of orders. When entering new markets, with the growth of orders we will be able to attract professionals with the right skills in languages. Because we use distributed call center is integrated to our backend, very important for us IP telephony, and here in India there are difficulties.

Due to recent acts of regulation of the Indian government legislation has become much tougher. While we are looking for technical and organizational solutions how to make telephony available to a distributed team. Otherwise, things with the NAV. If in Russia it is enough to name the street and number, in India, a typical address looks like the name of the district, who may be the street and mention certain significant buildings or landmarks like the hotel, Church or hospital.

Address sounds, like so. “Mumbai Andheri-West, opposite high of the hotel, the third building at Kurla road”. Service delivery is a significant point, especially given the fact that we leave ourselves the ability to quickly scale.

The form to fill in we changed several times, changed the validation algorithm of the order — as a result of the conversion performed in the order doubled. Now the conversion of new customers — 2.5%. Due to optimization of work with the addresses we expect to increase conversion in half to two times.

Despite the difficulties, the project can be called successful. The main results is the opening of the business, team building, implementation of schemes of work. The system should work mostly automatically, requiring a lot of preliminary work. The current growth rate is the same as at the start of the project in Moscow.

Many areas for growth that we are getting ready to start working. Have an understanding of what you need to do for the next six months and next. Expect over the next three to six months to make the leap in attracting customers and to outpace the growth rate in Russia.

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