RedSeer E-tailing Leadership Index - Q3 2016
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www.redseerconsulting.com [email protected] 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
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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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2RedSeer Consulting Confidential
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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3RedSeer Consulting Confidential
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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4RedSeer Consulting Confidential
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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5RedSeer Consulting Confidential
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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6RedSeer Consulting Confidential
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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7RedSeer Consulting Confidential
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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8RedSeer Consulting Confidential
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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9RedSeer Consulting Confidential
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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10RedSeer Consulting Confidential
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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11RedSeer Consulting Confidentialwww.redseerconsulting.com [email protected] RedSeer Consulting Confidential and Proprietary Information©
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