EXPANSION OF MARKETING FOR

PRODUCTS OF M/S BHARAT

LEATHERS THROUGH E-COMMERCE
PLATFORM
BY
DEBA PRATIM SINHA
IIM KASHIPUR

CONTENT
Topic

Slide NO.

Leather Industry In India

E-commerce in India

Important facts for M/s Bharat Leathers before taking decision

Selection of an e - Commerce platform to support its online sales Pan India.

Integration with a suitable the e-Commerce website to support 500 SKU catalogue.

Strategically manage the inventory as demand increases

Maintain control over products page to manage all details

Support brand extensions

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To achieve best user experience across all devices

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LEATHER INDUSTRY IN INDIA

Leather is most widely-traded commodity, so demand
rarely comes down
Demand is driven by fashion industry( especially footwear),
furniture and interior design, automotive industry
LEATHER INDUSTRY s 50% of the trade comes from
international market.
In 2013-14, India's leather exports reached US$ 5908.82
million
Finished leather registered export revenues of US$
77716.43 million in 2013-14
India is the second largest producer of footwear and
leather garments in the world

E-COMMERCE IN INDIA
India has 243million internet user as on June,2014 which is 16% penenetration
Indian e-commerce market worth $12.6 billion in 2013 where e-retail worth $2.3billion
Almost 70% of India's e-commerce market is travel related

Essential factors necessary for growth of E-Commerce in India

Key Drivers

Increase in mobile internet user

and increasing broadband Internet

Reach- Website should be platform independent which also supports M-Commerce services

Quality -The product quality should be same as shown on the portal.

Increase in standards of living with

high disposable incomes

T & C should be clear & realistic.

A dedicated 24/7 customer care Centre should be there.

Busy lifestyles and lack of time for

offline shopping
Availability of much wider product
range at comparatively lower
price

Shipment option

Price comparison

Multiple payment option which include COD

IMPORTANT FACTS FOR M/S BHARAT LEATHERS BEFORE

TAKING DECISION
In e-tailing 30% of purchased goods are Apparels and
accessories

In that 30% market, only 10-17% share is for leather

items

Only 16% penetration is for internet in India

For every Rs 100 spent on e-tailing, Rs 35 is spent on

supporting services like warehousing, payment
gateways, and logistics, among others.
Indian logistics and supply chain market is not yet well
organized

Still 4000-5000 small towns are not in reach

SELECTION OF AN E - COMMERCE PLATFORM TO SUPPORT

ITS ONLINE SALES PAN INDIA.

There two options

Deal with the best in the market like Myntra, flipkart or

Jabong
Create your own portal

Option 1

Option 2

Maximum customer base

Have to spend more money in digital marketing for

promoting product and creating brand name

Better reach

Better chances of promotion and sells of product

Initial payment with follow up of strategy

Have to build infrastructure of higher standard so

that orders can be delivered efficiently
Can go with its own strategy

Required to create minimum two warehouses

It is not possible to push 500 sku together here

Can push all its product together

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INTEGRATION WITH A SUITABLE THE E-COMMERCE WEBSITE

TO SUPPORT 500 SKU CATALOGUE.

Option 1

Option 2

It is not possible to push all 500 SKUs in

first go and also will not be supported
by them

Here it is possible to push all the 500

SKUs

Should categorize all the SKUs and in

push the best one
This will have better impact because
you are giving the best and eventually
will increase the brand value
Later according to customer need and
satisfaction, you can push the related
SKUs

Categorize and maintain the portal as

per customer prference

More costly affair

STRATEGICALLY MANAGE THE INVENTORY AS

DEMAND INCREASES
In option 1, as per customer requirement/ preference inventory
should be managed.
All the SKUs which are liked and chances are there of more
sales, they should be put more in warehouses
SKUs those are ignored or not bought by customer, should be
removed to decrease inventory cost
When company is in introductory stage, SKUs should not go out
of stock So, company should be ready for JIT inventory delivery
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In option 2, inventory should be kept as per the demand

MAINTAIN CONTROL OVER PRODUCTS PAGE TO

MANAGE ALL DETAILS.
GETTING THE RIGHT CONTENT AND TARGETING CUSTOMERS WITH CRISP AND RELEVANT
INFORMATION IS OF UTMOST IMPORTANCE TO USERS ON THE MOVE.
THE PRODUCT QUALITY SHOULD BE SAME AS SHOWN ON THE PORTAL.

UNSATISFIED FEEDBACK SHOULD BE HANDLED AS SOON AS POSSIBLE

CUSTOMER CAN BE RETAINED IF PAGE IS MANAGED PROPERLY
SHOULD BE ACTIVE IN SOCIAL MEDIA

SUPPORT BRAND EXTENSIONS

When brand is doing good, most of the time brand
extension helps in increasing brand value

When its option 1, and company did not put up all

its SKUs earlier, it should slowly push its other SKUs
This will help in growing brand image and also help
in converting potential customer

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TO ACHIEVE BEST USER EXPERIENCE ACROSS ALL

DEVICES
Deliver what you have shown/promised
Deliver it on time
Deliver them what they need.

Data mining on data that is collected on

consumer behaviour by survey while
customer is purchasing. Eventually
coming up with customised product line
which include combination of accessory
according to occasion or personality.
In short using big data to make
shopping online for leather goods
easier & better.

Example: True & co is this interesting company that combines data & design to create an
opportunity for consumers to share data with the company thereby improving the
appropriateness of the product to the customer. True & co claims to be the first company to
fit women into their favourite bra with a fit quiz no fitting rooms, no measuring tape, no
photos. The data they collect allows them to match the customer to over 6000 body types on
their database.
They collected over Half a million data points from users to help customise the experience.
Since the company launched in 2012, True & Co has collected some 7 million data points
They used this data to launch products designed using this data. Body type, implicit explicit
preferences etc all mashed together to create a personalised recommendation engine.
Source: http://blog.hansacequity.com/Customer-Management-blog/?Tag=lingerie

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