2011-2013:media trends & bets

2011-2013: Top 10 Digital media trends & bets

Internet in India is on the threshold of inflection. In this scenario what will be the big trends & bets over next 3 years? List of my Top 10 is given below.

1. Mobile broadband: With close to INR 70,000 crore having been paid by the Telecom companies to the government for the 3G licenses, we should see a surge in number of users connecting to the internet through their mobile phone which will be aided by the fact that almost all modern mobile handsets have the capability to access the internet.
2. Continued interest in Social Media: The stats released by Com-score for December 2010 revealed that more than 33 million Internet users in India visited social networking sites, representing 84 percent of the total Internet audience. This was a growth of 43% over a 12 month period whilst the Total audience grew only by 13%.
3. Decline in standalone email & instant messaging usage: The email & instant messaging applications of the social media platforms undergoing a huge improvement and matching the features & functionalities of the stand alone services. As users get more hooked onto the Social media platforms like Facebok & Orkut, the users will start using the instant messaging & email services built into these platforms to interact with others more and this will gradually reduce & replace the usage of standalone email & instant messaging services
4. Surge in eCommerce: Barring Travel, that too Air & Railway tickets, India has not witnessed significant numbers in other ecommerce verticals. Foreseen non travel e-commerce taking off in a big way over next 3 years spurred by verticals like Deal-a-day, Books, Gifting, Luxury retail etc.
5. Explosion of Digital advertising spends in India: Digital advertising in India to constitute at least 7% (up from under 3% as of now) of total ad spends over next 3 years. The growth will also get spurred by mobile advertising & DTH advertising. There will be continued dominance of performance metrics based pricing.
6. Demand for relevant Audiences: There will a demand from advertisers for delivery of audiences vis-à-vis delivery of traffic. There will be emergence of more options for targeting users on behavior, demographic & contextual relevancy including location based advertising.
7. Rich media consumption: With higher speed of internet access, users will start consuming more rich media content.
8. Mobile internet: Users will access internet through various devices (ala iPads etc.) and not only through smartphones or desktops/laptops. With this there will also be an explosion in usage of mobile applications.
9. Mobile payments & mCommerce: Mobile payments & M-Commerce should take off over next 3 years in a major way.
10. Innovations & Entrepreneurship: We should see a Silicon Valley kind of environment in India over next 3 years with lot of entrepreneurial ideas & innovations happening.

Indian IT: headway in china

Indian IT firms seek to make headway in China              In the backdrop of Chinese premier Wen Jiabao's recent visit to India to beef up economic ties, software companies like TCS and Wipro are "ramping up" efforts to win business in the last Communist bastion, according to a Chinese media report. Tata Consultancy Services Ltd (TCS), India's largest information technology services company by sales, is leading the effort to expand the presence of the Indian IT industry in China, state-run China Daily reported. However, cracking the Chinese market may not be an easy job, the report said. Chinese companies are still used to the traditional global brands. They have not yet seen Indian IT companies. So it is also a question of brand-building for Our Companies. Unlike their Western counterparts, large Chinese companies usually have their own IT department, and outsourcing is hardly yet a phenomenon that China witnesses. But when they start doing it and focus on their core business, then the Indian companies can bring value to China's domestic outsourcing market. With the trade deficit between the two countries expected to widen with record bilateral trade worth $60 billion in 2010, India has been pressing China to give market access for IT, pharmaceuticals, agro-products and engineering services, as they are presumed to have good scope to grow in Chinese markets. In recent years, TCS has emerged as the largest Indian software company, servicing large Chinese state-run companies. It has established a noticeable presence in China's banking industry. Four major Chinese banks, including Bank of China and Hua Xia Bank, use TCS's core banking system, the China Daily report said. TCS needs to further increase its presence in China and added the company is very keen on expanding into the sectors of government, insurance, healthcare and manufacturing. TCS currently hires more than 170,000 people in 40 countries around the world, but it only has 1,200 people in China. The company plans to increase its workforce in China to 5,000 people in the next three years.

Franchising: Dosa Plaza

Dosa Plaza is the sole runner in the category of south Indian cuisines that has gained popularity nationwide for its innovative approach and wide varieties of recipes. From a humble inception in 1998, Dosa Plaza grew into a lavish success story that it has become today. 

With 'World's Widest Menu in mouth watering Dosas', Dosa Plaza has the reputation of being the fastest growing chain in food retail section. Dosa Plaza plans to grow nationally and internationally through franchising. Spruced up by the rich expertise of quality food, excellent preparation and authentic taste, the Dosas available at any of the Dosa Plaza outlet make an excellent cuisine, a perfect combination of the traditional and the contemporary taste!

Outlets of Dosa Plaza is uniformly spread across the country with the presence at the major locations in Delhi, Mumbai, Karnal, Hyderabad, Lucknow, Ludhiana, Vadodara, Kaushambhi in Ghaziabad, Goa, Kolkata, Surat, Sirsa, Rajkot, Agra, Patna, Pune, Karnal, Panipat, Calicut, Guwahati, Jammu and Ahmedabad.

Franchise Expansion Plans

India: All major cities across the country and selected territories for Master Franchise.

Abroad: East Asia, Middle East Asia, South East Asia, North America & United Kingdom.

Location Specification for Dosa Plaza Franchise: 

Shopping Malls, Food Courts, Multiplexes or any prime location with high footfall.

Dosa Plaza's USP is their 104 exotic varieties of fusion dosas with 27 being trademark dosas.

Eligibility criteria for being our franchising partner:

Model A
Franchise investment*	10 to 12 Lacs
Menu	104 Types of Dosa's, South Indian meals, Filter Coffee, Variety of Idli, Wada's.
Area	300 sq. ft. - Kitchen and Counter 100 sq. ft. Stores
Total area	400 sq. ft.
Franchise fees	4 lacs
Royalty	8%

Model B
Franchise investment*	25 to 30 Lacs
Menu	104 Types of Dosa's, South Indian meals, Filter Coffee, Variety of Idli, Wada's.
Area	550 sq. ft. - Kitchen and Counter 100 sq. ft. Stores, 1000 sq. ft - Dinning
Total area	1650 sq. ft.
Franchise fees	5 lacs
Royalty	8%

Model C
Franchise investment*	33 to 40 Lacs
Menu	104 Types of Dosa's, South Indian meals, Variety of Idli, Wada's, Veg Chinese, Pav Bhaji, Fresh Juices & Filter Coffee
Area	600 sq. ft. - Kitchen and Counter 200 sq. ft. Stores, 1400 sq. ft - Dinning
Total area	2200 sq. ft.
Franchise fees	8 lacs
Royalty	8%

Dosa Plaza Investment Details:

Date Commenced Operations	:	2005
Date Commenced Frachising / Distribution	:	2005

How much working capital is required in franchise addition to this	:	2,00000
Is there exclusive territorial rights given to a unit franchise?	:	Yes
Are any performance guarantees given to unit franchisees?	:	No
What is the anticipated percentage return on investment?	:	20
What is the likely pay back period of capital for a unit franchise?	:	2 and 1/2- 3 yrs
Are there other investment requirements?	:	no

How long is the franchise term for?	:	5
Is the term renewable?	:	Yes

Dosa Plaza Property Details

What type of property is required for this franchise opportunity?	:	malls, high street,food courts,highways, multiplex
Preferred location of unit franchised outlet:?	:	highstreet, malls, highways, multiplex

Dosa Plaza is on a constant lookout for mutually beneficial partnerships. You can become an entrepreneur and own your own business at Dosa Plaza. If you are passionate about customer service, love south Indian cuisines - greet one of the most profitable franchising opportunities at Dosa Plaza. 

For Details: http://www.dosaplaza.com

Retail:Growing Business

Growing Business

There is no inhibition in buying lingerie online, and this is aiding growth of its market by leaps and bounds

India holds immense growth potential for the lingerie industry, which is evident from the entry of large international brands in the Indian market in the last few years. Increasing size of the organized market and the declining share of the unorganized market is resulting in growing independent brands taking charge of the market. In addition, growing income levels of Indian women portray their changing lifestyle which  has rechristened lingerie from just an undergarment to a fashion clothing item, at least in the urban centers.

There lies a big gap in the lingerie market in India. Times have changed for  better for the Indian women like never before in terms of fashion style and statement coupled with growing wealth that is helping the growth of the organized lingerie industry. But to their accessibility, there are not much options available to their reach.

Online retail of this type of product is a lucrative opportunity for the retailers to look into.

Customer response

According to Deeksha and Saurabh Dadu, Co-founders, Strapsnstrings “The response has been phenomenal with over 3000 people visiting and checking out our online boutique within the first 3 days of it being launched. On an average, each customer spends at least 10 minutes on the website without any advertising activity on our part till now. This reflects on how eagerly our audience was waiting for us.”

Shy Product in the market

Online shopping gives them the advantage to shop from the privacy of their homes. They are able to search for the type of lingerie they may want to buy, and have it discretely delivered to the address of their choice. Even for women, they can use our easily navigable site to find exactly what they are looking for: something comfortable for everyday, to a nice cleavage enhancing bra, a demi cup etc.

For many women, Lingerie is a popular topic of discussion at 'all-girl parties'. As for the men, they probably feel shy walking into a Lingerie store to pick a gift up for their partners. Online shopping gives them the advantage to shop from the privacy of their homes. They are able to search for the type of lingerie they may want to buy, and have it discretely delivered to the address of their choice. Even for women, they can use our easily navigable site to find exactly what they are looking for: something comfortable for everyday, to a nice cleavage enhancing bra, a demi cup, to something sexy for the night.

Advantages over brick n mortar

Though physical store has its advantages, online business of lingerie has an edge over it. Setting up a retail store in a mall or a high-street would add to the cost, making the product more expensive for the customers. At the same time it would restrict the geographic reach. Online model gives us the scalability, and allows us to pass on the cost savings to our customers.

In a physical store, there is limited availability of styles, colors, size. In a physical store, there is limited availability of styles, colors, size. In a virtual store, we could offer numerous styles which the customer can browse at their leisure in the privacy of the environment of their choice.

Internet retailing of course has its advantages in terms of lower fixed recurring costs, and its ability to reach out to a larger audience; hence translating into both a good top line as well as bottom line. As for the customers, it gives them easy access to products across geographies, and cost savings from lower real estate costs are of course passed to the customer.

• The cost of physical store is forbidden
• Big advertising cost is curtailed
• No need to keep front-end staff

Requires Specialized Skills and IT set up

To start with the technicalities of the business, retailer needs to have excellent IT support for day-to-day operation which need to be updated at timely basis. Along with this, a team of very experienced lingerie consultants who could help the clients select the right product would add to the success.

Marketing & Delivery Process

Marketing for an online lingerie store is different. It need not necessarily be expensive project, but usually more different. Marketing efforts are usually focused on social media advertising, as well as doing on ground events such as workshops, exhibitions, and marketing alliances with more traditional brick and mortar stores.

On the delivery side of the product, depending on the goods that are being sold online, delivery options can vary between courier, a local delivery vehicle, post, etc.

Challenges

1.People not willing enough to use their credit cards to shop for Lingerie online.

2.Since the products we sell are very new to the Indian market, developing awareness, and also explaining the products in detail trying to replicate a real life touch and feel experience is another challenge.

Future of Online Lingerie

At present, online retail does require a long term view and persistence. This is a long term investment with very good opportunities for good returns as consumers become more techno-savvy and feel comfortable to purchase online.

Online is the wave of the future. As India's population gets more technologically savvy, and the Indian woman becomes more independent, she wants to satisfy her desires and aspirations. Lingerie is one of the most suitable product for online business. It breaks the barrier of shyness and inhibitions that the customer feels when walking into a physical store and either, having to ask a salesperson for  a babydoll, or having several pairs of eyes following the customer around while they browse these delicate and sexy clothing.

Further requires less investment cost and no looking for right location and it would be available to every customer who is just a click away!

Etailing

E tailing Footwear:

Good quality, right mix of popular brands, special offers and an active CRM are pre requisites of a successful online sale.

 

Given the fact that shoes are our basic requirement and also a reflection of our life style is giving impetus to footwear sector all over the world. India being the second largest producer of footwear in the world after China is witnessing an upward trend in retail as newer channels of sale is emerging everyday and the most intriguing from the crop is Online Shoe Retailing. 

Although it has been there for quite some time, yet it could be termed as latest in India due to the fact that only recently, retailers, following the practice in west, are waking up to the fact that an online store presence supplements the retail sale.  

With Etailing, consumers can shop premium brands from the convenience of their home and get the best deal. What’s more, even websites(not supported by stores), housing a wide variety of brands under single fedora have been established as part of their experimentation. But, if these channels are successful is a big question? The article decodes both types to understand the mechanism of ‘Online Footwear Sale’.

The need factor

People today are exposed to all brands and they also have the desire and means to own them. Regrettably, the traditional system of distribution has its own bottlenecks so there is a gap between demand and supply. Further, the internet revolution has opened doors to a lot of possibilities and exposure to buy online, all thanks to various retail portals. Today, a customer has a wide choice in similar products that he can compare to decide on. What’s more, he can even get the product delivered at home!

Advantage over Brick and Mortar sale

Proof of pudding is in its eating and as new websites emerges every day; this is testimony to the fact that online shoe retailing has definite advantage over Brick and Mortar rummage, like;

•    One can see more variety of products which cannot be displayed in a showroom.

•    Comfort of shopping without leaving the house.

•    Easy payment method and check out procedure to avoid long queue at the cash counter.

•    Friendly Return and Refund policy.

•    24X7

•    A platform to weak brands which do not find a place on store shelves.

•    One comes to know of new offers first without going to the market.

•    Showcasing of products to a larger geography.

•    Great discounts and offers.

Moreover, since a retailer saves a lot of money by way of rent and other things needed for a smooth running of the business, he could afford to give deep discounts and offers.

Target customer

Such websites are more suitable for people who are looking for bargains. Fashionable people, office executives and housewives who would like to do shopping for the family will find great succor in deals and discounts that they will normally not get in store sale.

Marketing strategy

Basically, such websites run on world class software which they keep updated through various means. They issue new additions and run special promotions from time to time.

Promotion

Apart from advertising on different domains to grab eyeballs, more retailers are now gravitating towards TV commercials and print advertising for advertising space.

Handling returns

If returns are not handled properly , it can disappoint the customer. For example, in most cases, if the product is cheap, people do not return only. And also it needs patience for deciphering returns.

A user friendly return and refund policy through a dedicated team for customer support which takes care of not only returns but also help the customers in placing the order will ensure goodwill of the website.

Seal of success

Many websites disappear faster than they come due to their failure to keep pace with customer expectation and handling their grievances in a satisfactory manner.So, it calls for a good technology, sharp CRM and correct marketing strategy to get that seal of larger approval.

Future

The domestic footwear market which is estimated to be over Rs 15,000 crore in value terms and is growing at the rate of 8.8 per cent will only grow further as the internet penetration increases. Undoubtedly, this is the future of retailing !