CONSULTING PROPOSAL

On

ONLINE SHOPPING TRENDS IN INDIA FOR AMAZON.COM

By

DEBASIS MOHAPATRA A01022100112 MBA M&S Class of 2012

Under the Supervision of Mr. Ashok Sharma

At

AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2012

Amazon India has gone live with the launch of portal, Junglee.com, which Amazon acquired in early 2000 from Indian entrepreneurs Rakesh Mathur and AshishGupta. Junglee is an online shopping service by Amazon which enables customers to find and discover products from online and offline retailers in India and from Amazon.com. Junglee organizes massive selection and multiple buying options from hundreds of sellers, and leverages Amazons proven technologies and millions of customer reviews to help customers make smart purchase decisions. The Nielsen Company recently announced the findings of its Global Online Shopping Report conducted among Internet users in 55 markets launched in September 2010. IndiaSocial reached out to Nielsen India for some deeper insights about the key findings for the Indian market. Alongside some key findings shared in their company release, we have captured some of these EXCLUSIVE data about the Indian market in this post. Scope of the Report The Global Online Shopping Report looks at how consumers shop online: What they intend to buy ? How they use various sites? The impact of social media and other factors that come into play when they are trying to decide how to spend their money.

CoGlobal provides an in-depth understanding of the shopper experience, giving you insights that
set the perfect mix of pricing, packaging and presentation to drive growth. Our comprehensive insights into the shopper experience - including influences such as in-store placement and retail channels - delivers retailers and manufacturers a clear view of the market through the consumers eyes.

How We Do It Our comprehensive solutions include: Analyzing shopper mix to identify your most valuable shoppers and their key shopping objectives Understanding shopper loyalty and retention. We deconstruct the elements that keep customers coming back Organizing overall category management, price, assortment, in-store placement and promotion to increase share of shopper basket Learning what works and what doesnt through shopper marketing ROI, we evaluate each tactical element to determine the most effective retail strategy Why CoGlobal? Our industry-leading analytics offer robust insights about the shopper and retail landscape. No company knows more about the psychology of the shopper and the logistics of retail. From soft factors such as brand preference to the physical realities of shelf presence and merchandising display, we can give you a full picture of your brands standing in the marketplace and how to improve it.

Summary of the Key Findings

More than eight out of ten Indian online consumers plan to shop online in the next twelve months

More than a quarter indicate they spend upwards of 11 percent of their monthly shopping expenditure on online purchases

71 percent Indians trust recommendations from family when making an online purchase decision, followed by recommendations from friends at 64 percent and online product reviews at 29 percent

Half the Indian consumers (50%) use social media sites to help them make online purchase decisions.

Online reviews and opinions are most important for Indians when buying Consumer Electronics (57%), Software (50%), and a Car (47%).

More than four in ten Indians are more likely to share (post a review/ Tweet/ review) a negative product or service experience online than they were to share a positive experience

In the next six months Indians are most likely to buy Books (41%), Airline ticket/reservations (40%), and Electronic equipment like TV, Camera, etc. (36%) online

When shopping online, one third of Indians (33%) purchase most frequently from websites which allow them to select products from many different stores.

Consulting Fees Structure : Billable Days Number of Weekdays in a year Number of holiday days you want each year How many sick days do you take each year Marketing , admin , billing (non client work ) days each year ? 261 21 4 96

Total non-working days Billable Days in a year

Annual operating costs Advertising and marketing Equipment hardware and software Training and Education Membership and Association Insurance (office , car etc) Health and dental Office Expenses (telephone , internal , electricity ) Rent (office or percentage of home /office Supplies(postage , stationery etc) Professional fees (accountant, lawyer etc)

121 140
$6000 $3000 $5000 $500 $3000 $2000 $2500 $9000 $750 $3000

Annual operating costs Daily overhead

$34750.00 $248.21

Target Income How much do we want to earn before taxes - $10000

Daily billable rate Daily hourly rate

$ 962.50 $ 120.31

Online Shopping in India The Internet has transformed many aspects of life, but perhaps none more so than how we shop for goods and services. While its still nice to stop by a store to touch and see products, the convenience of online shopping cant be beat. And for some services, such as booking travel or buying concert tickets, the ability to do so online has made the process much easier and more efficient. The Co Global Company conducted a survey in March 2010 and polled over 27,000 Internet* users in 55 markets from Asia Pacific, Europe, Middle East, North America and South America to look at how consumers shop online: what they intend to buy, how they use various sites, the impact of social media And other factors that come into play when they are trying to decide how to spend their money. What we found was that there are some products bought online that are universal, and others that still have yet to build a significant share of trade. Further, while checking online reviews are popular for some productsparticularly consumer electronics and carsshoppers still trust the recommendations of friends and family most.

What product / services do you intend to purchase online in the next 6 months?

product/services Books clothing/ accessories / shoes airline ticket / reservations Electronic equipment Tours / hotel reservation cosmetics / nutrition supplies event tickets computer hard ware videos / DVDs/ Games Groceries Music Sporting goods Toys Computer Software Flowers Automobiles and parts Baby supplies Alcoholic drinks Sports memorabilia Car hire Other

No of respondent 44 36 32 27 26 22 20 19 18 18 16 13 11 11 8 7 7 6 5 4 7

Vacations are High Priority for Planned Online Purchases Global online consumers say that books and clothing will continue to top the list for planned online purchases in the next six months, which follows the trend reported in a 2012 Coglobal survey where 46 percent of global consumers said they purchased books in the past three months and 41 percent bought clothing online. However, intent to purchase airline tickets and to book tours and hotel reservations show signs the economy is improving. In fact, compared to 2009 where 24 percent of connected consumers said they purchased airline tickets online and 17 percent made hotel/tour reservations via the Internet, intent to make travel arrangements online in 2010 has increased seven percentage points and nine percentage points respectively. Other engaging products and services tagged for future online purchases include electronic equipment, cosmetics/nutrition supplies, event tickets, computer hardware, videos/DVDs/ games and groceries.

Top 5 products / services Global Consumers Expect to purchase Online in the Next 6 Months

Rank Product 1 2 3 4 5 Books Clothing / Accessories / Shoes Airline Tickets Electronic Equipment Tours / Hotel Reservations

Online-Only Shops Have Greatest Global Site Appeal Globally, one-third of online consumers say they primarily do their Internet shopping at retailers that have only an online presence (such as Amazon.com), followed by an equal 20 percent of respondents who prefer sites that also have traditional brick and mortar stores and those that allow you to select products from many different online stores. Only 16 percent of respondents globally indicate they have never shopped online.

What Kind Of websites do you purchase from most frequently when shopping online ?

Site preferences varies across the world. Almost half (47%) of online consumers in the India say they have never shopped online. What is your online shopping spending percentage of total monthly spending ?

In a sign that there remains tremendous room for growth, 35 percent of online consumers say they spend less than 5 percent of their monthly spending online and 31percent say they spend between 6 percent and 10 percent.

Opinions Count One of the great benefits of online shopping is the ability read others reviews of a product, be they experts or simply fellow shoppers. I am more likely to share ( write about / Tweet review etc) a negative than a positive product experience online

I would not buy the following products without consulting reviews

Top 10 Global sites by % Active Reach 1 2 3 4 5 6 7 8 9 10 Google MSN /WINDOWS LIVE/BING FACEBOOK YAHOO! MICROSOFT YOU TUBE WIKIPEDIA AOL MEDIA NETWORK eBAY apple 81.78% 61.82% 54.48% 52.91% 48.42% 46.58% 34.93% 27.16% 26.47% 26.11%

These opinions are most important when it comes to purchasing consumer electronics: 57 percent of online respondents consider reviews prior to buying. Reviews on cars (45%) and software (37%) rounded out the top three most important online influences when making a purchase. Online reviews and peer recommendations also played a key role for shoppers researching future purchases of consumer electronics, cars and travel, and 40 percent of online shoppers indicate they would not even buy electronics without consulting online reviews first. Pity the product or retailer that consumers dont like: while most online consumers (59%) said that they are not more likely to share a negative product experience online via Twitter or writing a review, 41 percent would. Online Shopping. Around the WorldRegional round-up Consumers all around the world shop online, but what theyre buying and how they use product reviews and social media to influence their decisions vary widely. Indian online consumers are the most prolific online shoppers in the Asia Pacific region with 95 percent of Internet users intending to make a web purchase in the next six months. conversely , over one fourth of online consumer in Hong Kong (27%) and Thailand (26%) and one-fifth of

residents in Japan, New Zealand, Indonesia and Australia do not plan an online purchase in the upcoming months.

What is your online shopping spending percentage of total monthly spending?

Conversely, over one-fourth of online consumers in Hong Kong Koreans who shop online are most likely to buy books, cosmetics, clothing/accessories/shoes and groceries via the Internet in the next six months. While connected Chinese also favor books and clothes, 40 percent plan to make an electronic purchase online. Web-savvy Malaysians like online shopping for booking travel, with airline tickets and

hotel/tour reservations the top picks. More online Australians intend to purchase event tickets and non-downloadable videos/DVDs/games than any other in the region. And one-fifth of online Indian shoppers plan to buy non-downloadable music. Total online spending as a percentage of total monthly spending varies by country with Chinese and Korean online consumers allocating the most via the web than any other in the region. Online consumers in New Zealand, Australia, Malaysia and Hong Kong allocate the least.

Almost half (47%) of online consumers indicate they have never made an online purchase.

About The CoGlobal Company The coGlobal Company is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related assets. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit, www.coGlobal.com