www.redseerconsulting.com Query@redseerconsulting.com2011 RedSeer Consulting Confidential `and Proprietary Information© |New Delhi I Bangalore I Mumbai I New-York I Dubai

The Indian E-tailing Leadership IndexVersion 3

Aug – October 2016

1RedSeer Consulting Confidential

What does the E-tailing Leadership Index (ELI) measure?

ELI is a comprehensive assessment of e-tailer’s overall performance in customer’s

mind. It is based on the three pillars, which are:

Indian e-tailing Leadership Index

Most Trusted Brand

Most preferred e-tailing brand

for the online customers

Best Value

Maximum value for money

and wider "meaningful

assortment”

Great buying Experience

Best buying experience from

product discovery to post

delivery experience

1 2 3

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How is it structured > Most Trusted Brand

E-tailer brand that is most trusted by online consumers

• Brand Recall

e-tailer which has the highest “top of the

mind” recall for most preferred online brand

• Unaided Recall

e-tailer which has the highest “unaided”

recall for the most preferred online brand

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How is it structured > Best Value

E-tailer that provides the best value for money along with meaningful assortment

• Price competitiveness

Where would you find the best prices and

discounts available among the e-tailers

• Product variety and availability

What are the chances of finding the product

you are looking at among the e-tailers

• Quality of products

What do you thing of the quality of product

available on each of the e-tailers

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How is it structured > Great Buying Experience

E-tailer that gives best end to end buying experience

• Exploring & ordering products (For web & app)

How easy and intuitive they find product

exploration on the app and websites of the e-

tailers

• Delivery predictability and experience

How quick and precise is the overall delivery

How quick is the reverse pick-up in case of

returns

• Consumer experience post delivery

How easy it is to return products

Speed and ease of refund

Quality of customer support

• Overall NPS

Overall satisfaction of customers with end to

end experience based on NPS methodology

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The results of the study is based on the following research themes:

Methodology Used:

6000 customer surveys across 30 cities (Metro Tier-I and Tier-II) in August to October period

All respondents have to be e-tailing customers, having bought something from the concerned websites in the last 3 months

The survey was split between the SEC A, B and C population, with equitable distribution of age group and gender

1 2 3

Statistical technique of TOPSIS has been used to arrive at the indexing from the responses and hard numbers

4 The study is entirely based on consumer perception and works on a proprietary RedSeer algorithm

5

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Evaluation Parameters and Weights

25 25

50

Most preferred Brand

to Shop From

• Top of the mind

• Unaided

Product Variety and

Availability

• Product Availability

• Product Variety

• Product Quality

Price Competitiveness

• Pricing and Discount

• App & Web– Design & Look

– Ease of Navigation

– Product Description

– Check Out Experience

– Payment Gateway Experience

Delivery/Cancellations/Returns

• Delivery Time

• Reverse Pick-up speed

Consumer Experience Post

Delivery

• Refund (Days)

• Customer Support1

• Ease of Return

Overall Consumer NPS

Web & App Experience

A. Most trusted brand: B. Best Value Proposition:

C: Great Buying Experience:

1 Customer Support parameters are measured as Average Wait Time (Secs), First Time Resolution & Escalation

The analysis is based on 30+ parameters analysed in the three pillars

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Player-wise Performance

97

95

75

74

58

56

23

21

7

10

4

2

25

25

24

24

22

24

49

49

44

40

32

30

Fli…

Ama…

Pay…

Sna…

Sho…

Eba…

Most Trusted Brand Best Value Great Experience

97

94

71

75

59

55

Q3 2016

October 2016

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Overall Industry Trends: Q2 to Q3

Rationale

• Gained from an already strong position to retain top spot; increase in Brand

Recall metric & a slight decline in Delivery Time, usually the case with GIFS

• Closed second with large gains in all parameters; high marketing spend

resulted in a upward tick with gains in Brand Recall & highest industry NPS

• Most improved e-tailer with significant gains in Overall Experience and a

marginal gain in NPS

• Rebranding & marketing spend had a positive impact on Brand Recall which

explains the higher October score, but unable to service demand effectively

• Maintained previous position; upward tick in Post Delivery Experience

cancelled out by downward movement of Brand Recall

• Maintained previous position with slight reduction in Experience and an

upward movement in NPS

• The industry has moved upward over the last two quarter, (reflected in the higher NPS score), but has suffered from

increased customer expectations

• Q3 NPS metrics were impacted in the short-term by the Great Indian Festive Sale (GIFS), held over a 5-day period in

October

17%

29%25%

ELI 1 ELI 2 ELI 3

Industry NPS

Same as Q2

Up from Q2

Down from Q2

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The Great Indian Festive Sale

0.10.7

1.10.9 1.0 1.3

0.02 0.10.8

Notes

1. The numbers compared are: Singles’ Day for China, Cyber Monday for USA and 5-day total of the Festive Days (typically October)

2.9

13.8

~5-6

• China registered a 50+% y-o-y growth in 2016, the 7th year since the first Singles Day in 2009, despite a base >60x that

of India, whereas USA is clocking a steady 20+% y-o-y growth

• India is expected to grow at a slower rate than China at ~45% CAGR to reach US$ 4.9 billion by 2020, 7 years from the

first edition of the Great Indian Shopping Festival in 2014

Year 1 Year 2 Year 3 Year 7

Great Festive Sales (GFS) – E-tailing GMV1

(USD Billions)

6.6% 0.7% 0.7%

~6% 0.8% 2.4%

2014 2009 2009 2015 2010 2010 2016 2011 2011 2020 2015 2015

GFS GMV as

% Annual GMV

Year 1

China First year of Singles’ Day (2009)

India First year of that GISF (2014)

USA 2009 to maintain comparability

2.9% 0.4% 0.0% 5.5% 0.6% 0.2%

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Notes

Notes:

1. Only the horizontal e-tailers have been considered for this study

2. For Pillar A – Higher weightage has been given to "Top of the Mind Recall" over the

“Unaided Recall"

3. For Pillar B – Price Competitiveness has higher weightage than Product Variety and

Availability

4. For Pillar C – App has been given higher weightage when compared to App given that a

larger customer base buys using the App

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