Online & Omni-channel Retail

Strategy > Consumer Products and Retail > Online & Omni-channel Retail

Business Strategy to Launch an Online Marketplace for 4-14 Year Olds

About the Client

A leading multi-platform media company with interests in a diversified portfolio, intended to set up a multi-category online marketplace for 4-14-year-old kids, catering to all their needs including apparel, footwear, learning, toys, books and music, sports etc.

Project Objectives:

The core objective was to Formulate a Business Strategy for the launch of an online marketplace for 4-14 Year Old Kids, answering the following key strategic questions:

What should be the overall concept of the online marketplace- positioning, target consumers, etc.?
What should be the various product categories and services to offer?
What should be the business model- buy & sell, consignment, listing, private labels? Should it be a mix of all these?
What should be the various operational models for the online marketplace (Systems involved, commission/listing/subscription fee, promotions)?

Deliverables:

1. Provided detailed analysis of the Online Marketplaces and business strategy:

1. Industry Overview: mapping and sizing of the overall market for product categories targeted at the 4-14 yr. olds, growth trends and projections for marketplaces, mapping of Horizontal as well as Vertical players, etc.
2. Overall positioning: positioning in terms of concept, product range, pricing structure, and USP
3. Product mix: target product categories that can be sold online and their margin structure
4. Target Consumer: profile of core consumer (across geographies, age groups, income level/ internet or mobile usage)

2. Developed a 5-year business and financial plan as per the suggested strategy highlighting revenues, operating expenses (salaries, IT costs, marketing and customer acquisition costs, logistics, and delivery costs, etc.), Estimation of investments under key heads, based on industry benchmarks, etc.

Business Strategy for Online Retailing of a Premium Shirting Fabric Brand

About the Client

A leading premium international shirting fabric brand wanted to broaden its retail channel from the use of only offline retail to an Omni-channel including online retail as well.

Project Objectives:

The prime objective of the study was to understand the e-commerce market in India and the various models employed for e-retail. The intent was to answering the following key questions:

What is the current size and potential for internet and e-commerce growth in India?
What are the pros/cons of using different e-retail models – Marketplace / E-commerce Affiliate Programs / Own online store?
What marketing activities need to be undertaken for generating online traffic?
What needs to be done to integrate offline sales channels with online retailing?

Deliverables:

1. Mapping of the Internet and e-commerce market in India:

Penetration of Internet, mobile – including smartphone – and social media in India
E-commerce market sizing, key players, and trends in India including the type of goods purchased

2. Strategy for utilizing e-commerce platforms:

Understanding the pros and cons of the different e-commerce strategies – Selling on Marketplace; E-commerce Affiliate Programs; Own an online store