INTRODUCTION TO AARAMSHOP

Contents covered
The Current Business Scenario being addressed by AaramShop. The Retail Eco-system addressed by AaramShop The process of engagement. The free services that the brands can leverage. The paid services offered to brands.

The business scenario

New media offers engagement opportunities like never before, however FMCG brands are yet to see serious & quantifiable returns coming out of their new media strategies (unlike other verticals like durables, services or technology). Most of the new media usage / initiatives by FMCG brands is confined to drive awareness of the brand, which while a step ahead of massmedia, still does not result in actual transactions. The presence of private labels in the LFRs is a potential long term problem for brands that work hard at creating consumer desire and category interest, only to loose out in the last mile. The brands are eager to engage with the traditional trade as the margins and reach is better, however, the new media related opportunities with the traditional trade have been not existent so far.

Is a hybrid retail platform for FMCG / CPG brands that engages with the busy urban consumer in a manner to induce purchase by leveraging on the strengths of traditional independent retailers.

The eco-system that AaramShop addresses:

The Brand Owner

The Traditional Retailer

The Busy Urban Family

The Busy Urban Family

The sub-forty families, well-qualified, working in jobs which require them to dedicate time and effort. The family sizes are small (nuclear) and is limited to couples and their kids. Focus is on achieving a better & higher quality of life style, both at and away from work. Economic needs and qualifications mean that both parents (and kids) lead a hectic & stressful lifestyle. Travel time to and from work is extensive and tiring yet unavoidable. They are extensively dependent on the domestic help to ensure household chorus are addressed. (DIFM mindset)

Their work environment, ensures that they have ample excess not only to computers but to high speed connectivity. They are excessive users of all things on the web and their acceptability to web is a nonissue. They have transacted on the web, but is still a significant area of concern and avoidable. Usage of web is extensive at work and at home. They are users of smart phones and their phones need to meet their lifestyle. They are starting to enjoy the power of mobile apps.

The lifestyle requirements mean that modern trade is where the indulgent shopping is done. The reason for modern trade preference is on account of a better shopping experience and a wider range of choice. However, the regular / daily top up purchases are still done at the neighborhood store. Significant part of the neighborhood purchase is done on the phone and is delivered or is picked up by the domestic help. Shopping of FMCG is looked at as an unavoidable must do (increasingly also at the modern trade)

The Traditional Retailer.

He is owner of one of the 12 million traditional retailers in India. (density of 11 per 1000
households)

He has been in this family business for a long time (in cases over generations). He owns the shop and caters to the immediate catchment area. The shop is the core business and takes up all his time. While he has assistants for various functions, his personal (or family member s) presence in the shop is mandatory to be successful in business.

He caters to the catchment area and competes with multiple shops in the area. Home delivery is a critical aspect of his business and can contribute to as much as 40 50% of the business. Almost all of the business is repeat and his one on one relationships with customers is key. Some years back, his relationship with the residents was very strong, however, the newer generation is not very responsive. The customers average spend is Rs 200/- per transaction, which has stayed the same over the last few years, rather than going up.

95% of the shop s revenue comes from packaged consumer goods (FMCG). The shop sells at MRP or lower, however, the average margin which is available to him is sub 7%. Revenue from other misc income like branded racks etc is about 3% at best. The biggest loss of business is on account of major purchases being done at the modern trade. 30% of the business is where he extends monthly credit.

Aaram Shop addresses the business & lifestyle challenges, concerns & opportunities of all the three target segments;  The busy urban consumer.  The traditional retailer.  The brand owner.

How does AaramShop work?

Fulfillment & POD Logs in, Shops & places order on preferred AS The order is forwarded to the AS

The consumer

Products are listed and displayed.

Consumer & Marketing Intelligence is shared.

The independent traditional retailers. The FMCG brand owner

Products are placed as per existing norms of the company.

AaramShop s engagement with the eco-system

The busy urban consumer

The Traditional Retailer

The FMCG brand owner

The registration, log-ins and usage of all services available on the site are 100% free and will stay free for ever.

Registration and listing of the shortlisted retailer is free of cost. All services are available to the retailer free.

Premium services, when introduced would come at a fee.

All listing of SKUs of the brand is free, however, all value added services ( preferred listing, marketing & intelligence) would be made available at a cost.

Free services on AaramShop for brands

Please refer to the comprehensive document on the free services offered to brands on AaramShop attached.

Some of the paid services for brands on AaramShop

(yet to be introduced except Value@Home Vouchers)

What is in it for the brands?

A transaction ready social shopping infrastructure which ensures a possible shift from I like to click to bag . Listing of all national & regional FMCG brands - absolutely free. Availability of brands online and hence can morph AaramShop platform with any existing marketing campaign. Option to influence customers path to purchase. the power of real-time market analytics and complete control on the strategy. Ability to customize marketing initiatives basis insights from various analytics

Key qualifiers for the brand to be listed in the platform? Brands with national presence Or a significant regional presence Should have requisite government approvals (Weights and Measures Specs) Brands that advertise It should have a MRP Should be present at the independent neighborhood retail outlets.
AaramShop will not be available for brands of the following nature:

It should not be a private label It shouldn't be an imported niche brand not qualifying the above parameters
AaramShop also does not list commodities.

How can a brand leverage AaramShop platform for itself?

1. By understanding reviews by customers and enabling the same by way of enhanced social media integration. 2. By reviewing data-points related to consumer preference and behavior online vis--vis the brand and its category. 3. By enabling its customers to make a more informed choice, and of sharing their views within their network. 4. By enabling prominence of the brand within the category to ensure a higher throughput. 5. By appearing in the featured product category. 6. By extending their offline promotions and other marketing initiatives on the platform, for example vouchers. 7. By promoting sales promotions and other offers online and with an integrated offline strategy. 8. By optimizing the product in the consumers path to purchase. 9. By offering incentives via badges and offers on the frequent purchase. 10. By finding a way on the quick order list. 11. By targeting AaramShop databases based on consumer behavior. 12. By ADVERTISING!

For more information on AaramShop; Please contact AaramShop or your marketing or media agency. Also subscribe to updates relating to professional use of AaramShop PRO and register on the Brand Engagement Center for self administration. Please visit and experience the AaramShop platform on www.aaramshop.com

Also join us on

N-114, Level 2, Connaught Place, New Delhi 110001 India.