Evolution of E-Commerce and StyleTag's Success in India

EVOLUTION OF E-COMMERCE IN INDIA
IN THE PAST DECADE AND STYLETAG AS
AN EMERGING TRENDSETTER
BY:
RANU CHATTERJEE

EVOLUTION OF E-COMMERCE
 Screen culture
 QR code virtual shops
 (M)etail
 Cash on Curation
 Perfect payment
 facebook credits

APPREHENSIONS ABOUT ONLINE PURCHASE
 Anxiety over online identity theft & money blockage.
 Not being able to see the product before purchase.
 The hassle of returning unwanted goods.
 High costs of shipping associated with online purchases.

SWOT ANALYSIS
Strength
• 24x7 business
• no location contraint
• product reach to the
consumer directly from
producer
• mostly lower than market
value
• fast and agile
• cost effective advertising
• low staff cost
• fast financial transaction
• low initial investment
Weakness
• no direct interaction
between seller and
buyer
• transportation cost
• Large no. of potential
customer who cant buy
online due to lack of
internet connection
Opportunities
• No. of internet user is
increasing
• big companies are
already entering in this
field
Threats
• payment failures
• hackers
• confendential
information leak

KEY DRIVERS FOR E-TAILING
 Increasing penetration of technology
enablers like internet, broadband, 3G,
PCs, laptops, smart-phones, tablets,
dongles etc.
Young demographics and changing consumer lifestyles
seeking the convenience in e-tailing offers - in terms of
access decision making transaction and timing.

 Increased use of credit/debit cards
 An improved supply side - better customer interfaces execution and marketing
KEY DRIVERS FOR E-TAILING (cont…)

GROWTH OF E-COMMERCE IN INDIA BY 2020
166.6784
207.9149
257.8231
318.5701
392.746
483.4861
594.6091
730.7817
897.7167
1102.414
1353.453
1661.357
y = 0.838x3 - 5052.x2 + 1E+07x - 7E+09
R² = 0.999
0
200
400
600
800
1000
1200
1400
1600
1800
2008 2010 2012 2014 2016 2018 2020 2022
forecasted retail (e-commerce sales)
forecasted growth rate (% of retail sales)

ANALYSIS
Obtained Equation:
y = 0.8381x3 - 5052.9x2 + (1E+07x - 7E+09)
R² = 0.9999
a = 0.8381
b = 5052.9
c = (1E+07x - 7E+09)*
*residual obtained
Year
forecasted retail (e-
commerce sales)
forecasted growth rate
(% of retail sales)
2009 166.6784 21.28
2010 207.9149 20.197
2011 257.8231 19.577
2012 318.5701 19.204
2013 392.746 18.97
2014 483.4861 18.818
2015 594.6091 18.717
2016 730.7817 18.647
2017 897.7167 18.598
2018 1102.414 18.563
2019 1353.453 18.538
2020 1661.357 18.519

AS AN EMERGING TRENDSETTER
Styletag

Styletag: The brain child of…
Satish Singh Prashanth H.NMs. Soujanya

COMPANY PROFILE
 ffolio, founded in 1991, by Yashodhara and Sanjay Shroff ‘ffolio’ was the first ever
multi designer luxury store in southern India.
 Founded in the year 2009, IORPL brought into existence styletag.com on Sep
27th, 2010
 Styletag.com was launched with a mission to capture a niche segment with the
designer wear from the house of ffolio.
 Dealing with suppliers from all across the world with a curated merchandise to serve
the customers.

MERCHANDISING TEAM
merchandising team
Ms. Prachi Agarwal
(merchandising
manager)
Tarun
(Associate
merchandiser)
Neeti
(Associate
Merchandiser)
Krutika
(Merchandiser)
Darshana
(Sourcing manager
ffolio)
Priyanka
(Associate
merchandiser)
Saminder
(Senior
Buyer/merchandise)
Shalvi
(Associate
merchandiser)

COMMERCIALS
1. Current season merchandise:
• Discounted from 5-10% of the MRP.
• In this case styletag aims for 30- 40% margins on customer selling price.
2. Past season Merchandise:
• Such collections are sold at attractive discounts to the end consumer ranging from
about 20% 80% off.
• In this case styletag aims for 30-35% margins on discounted MRPs.
3. Flat Mark-down system:
• Stock can be discounted flatly from 50-80%, wherein styletag has its own discretions
to fix the selling prices on the website.
4. CST/Taxes/VAT are borne by the brand/vendors.

THE PRODUCT OUTLOOK ON THE CUSTOMER
INTERFACE

AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
TOTAL IMAGE SHOOT 100 412 496 274 286 886 581 1541
0
200
400
600
800
1000
1200
1400
1600
1800
TOTAL IMAGE SHOOT

Modes of Business
Outright
(liability of the inventory is
borne by the buyer)
Advantages
1. stock correction (0-20%)
2. payment on the basis of
cash discount
Disadvantages
high liability
high investment
Type: PO basis
Consignment
(SOR:sell or return,
liablity is of the vendor)
Advantages
payment in 30-45 days
No liability
low investment
Disadvantages
physically stuck with the
inventory

Multi category Focused/niche category
ConsignmentleadInventorylead

VARIOUS BUSINESS MODELS IN THE
E-COMMERCE FASHION SPACE
 Standard - e.g. www.flipkart.com and www.myntra.com
 Deal based - e.g. www.snapdeal.com and www.groupon.com
 Club based –Eg. www.fashionandyou.com , www.tjori.com and www.styletag.com
 Marketplaces - e.g. www.ebay.in, www.tradus.in and www.junglee.com

CUSTOMER SERVICE PROCESS
 Customer Service SLA –adhered at 24 hours for Resolution
 Smart IVR based system for seamless Customer Delight
 Pro-active feedback collection from customers
 To add Online Reputation Management Process

STILL STRUGGLING TO DECIDE UPON A LOGO…

Styletag.com: approaching customers in an
innovative way
 Styletag serves its customers a curated set of merchandise which is lucrative and worth giving a shot Also to
add on, the marketing strategies that are adopted add value to it.
 The marketing strategies used are:
a. Lookbooks
b. Newsletters on personalised e-mails
c. Facebook.com
d. Gift vouchers/cross promotional strategies
e. Special discounts and offers

FACEBOOK PROMOTIONAL CAROUSALS

SPECIAL DISCOUNTS ON FESTIVITIES

REPEAT PURCHASE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
One Time Buyers Repeat Buyers
Axis Title
Repeat Buyers
Repeat Buyers

MONTHLY CONTRIBUTION OF CATEGORIES
%
APPAREL 28
FOOTWEAR 16
HANDBAGS 7
HOME DÉCOR 18
JEWELLERY 4
LIFESTYLE 13
MEN'S GROOMING 2
WATCHES 10
ACCESSORIE 2
0
5
10
15
20
25
30

INTRODUCTION TO THE PROJECT
Objectives:
 To determine the penetration of online retailing of lifestyle products among the Indian customers.
 To ascertain the average monthly expenditure on lifestyle products and frequency of purchase at which
products are bought online.
 To determine which category of products is more likely to be bought online by Indian customers.
 To assess the preferences of customers in terms of buying lifestyle products from brands, private labels or
designers.
 To find out whether certain product attributes influence customers’ buying decision.
 Growth in the usage of technology thus contributing in the evolution of e-commerce.
 To discern areas where online lifestyle product market is lacking in customer satisfaction and how that
affects purchase behaviour.
 To locate the need gap and major thrust areas in the current online designer wear market and thus to suggest
possible measures to tap those areas.
 To determine which age group and profession is perceived to be the target customers of styletag.com.

RESEARCH METHODOLOGY
 Exploratory research has been carried out to identify the preferences and requirements of
customers towards purchase of designer lifestyle products online.
 Also a few journals and magazines have been consulted in the process. Technopak reports were
highly helpful while doing the research work.
 The data is primary and has been collected from respondents of different age group and
profession through questionnaire made available online on docsgoogle.com. Data collected for
this project is primarily quantitative.

1. Sample size : 125 respondents is not statistically representative of the entire target market population.
2. Time constraint: The study also had a time constraint and thus the sample size could not be increased.
Allowing more time to survey a larger and more diverse group of respondents would have given better
results
3. Non response error: Non response error was also a problem when interpreting the results. Some
respondents chose not to answer some of the survey questions. The information obtained from all 200
respondents could not be used for analysis as 75 respondents didn’t provide with the complete information.
4. Social desirability bias: Social desirability bias is another factor influencing response error. A few
respondents seek to gain desire or prestige by falsely answering questions pertaining to figures like average
monthly expenditure on lifestyle goods, etc.
LIMITATIONS

FINDINGS FROM THE
PROJECT AND
RECOMMENDATIONS

1. DEMOGRAPHICS
a) age group
frequency
below 18 19-30 31-50 above 50
Analysis:
Out of the 125 respondents, 3% fall under
the age group below 18, 89% falls under the
age group of 19-30, 7% is coming under the
umbrella of 31-50 years of age, and 2% falls
under the bracket of above 50 years of age.
Inference:
The major chunk of population, 89% is from
the age bracket of 19-30.
(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-
zD1PkGtFica6C4/viewanalytics)

b) Gender
Analysis:
The survey was undertaken equally by
both the genders, with 52% (59) male
and 48% (54) female respondents.
Inference:
Both men and women are equally aware of
the usage of internet and are capable of
accessing net for various purposes.
59
54
frequency
male female

c) Annual disposable income
Analysis:
The above pie-chart indicates the percentage of
respondents who are inclined towards purchasing
great lifestyle products. It shows that 44%
respondents belong to the less than 2.5 lakh
group, 34% fall under the income group of 2.5-5
lakh, 18% fall under the income category of 5-10
lakh, whereas only 7% from the income group of
more than 10 lakh.
Inference:
The major chunk of the respondents fall under
the umbrella of less than 2.5 lakh and 2.5-5 lakh of
income group. This can be called the middle
income group. So the target group can be easily
defined as the middle income group who has
money to spend but actually no time to visit the
brick and mortar store to make the actual
purchase.less than 2.5 lakh 2.5-5 lakh 5-10 lakh more than 10 lakh
frequency 47 34 18 7
percentage 44 34 18 7
0
5
10
15
20
25
30
35
40
45
50
AxisTitle

d) Marital status
frequency
married single seperated
Analysis:
77% of the married, 21% single and
2% separated respondents took the
survey.

2) PENETRATION OF ONLINE RETAILING AMONG
INDIAN CUSTOMERS
a) Any online purchase yet
Analysis:
To ascertain the penetration of E-
tailing among the Indian
customers, the respondents were
asked if they made any purchase yet on
any of the e-commerce websites. It was
found that 84% of the sample
population do make online purchase.
any online purchase yet?
yes no

b) Website preference
Analysis:
Out of 125 respondents 62%
respondents prefer the website
with company domain name
whereas only 38% prefer to
purchase from the mediators or
brokerage based e-commerce
portals.
0
10
20
30
40
50
60
70
with domain name mediator between the supplier and consumer
frequency percentage

c) Preferred payment modes
Analysis:
Out of 125 respondents
64% people prefer COD
purchase, 23% prefer card
payment and only 12%
prefer internet banking as a
mode of payment.
0
10
20
30
40
50
60
70
80
cash on delivery card payment internet banking

d) You consider e-commerce website as:
Analysis:
respondents see e-commerce
websites as a platform for availing
discounts, 33% consider it as a
source of information about the
product before actual purchase from
the store, where they can actually see
and make the purchase decision. Also
only 26% see it as a platform to
support their actual purchase
intentions.
0
10
20
30
40
50
60
70
a source of information a platform for availing discount platform to support your actual
purchase intention

Analysis:
Out of 125 respondents 31% said that
they prefer online shopping as it saves
time, 28% said that they prefer because
it is convenient, 25% respondents said
that they look up to the websites
because of the discounted price
whereas only 16% said that they look
up for the offers served.
e) Why do you prefer e-commerce for shopping
0
10
20
30
40
50
60
70
80
save time convenient discount price offers served

Analysis:
preferred Myntra.com, 21% said
flipkart, 16% voted for jabong 11% for
fashionandyou.com 9% for yebhi.com
7% for zovi.com 6% for styletag.com
4% 99 labels, and only 3% for
zimave.com
f) Website look-up
0
10
20
30
40
50
60
70
80
90

Objective 1:
To determine the penetration of online retailing of products among the Indian
customers
CONCLUSION AND RECOMMENDATIONS
1. As 84% respondents confirmed having made an online purchase, clearly indicates that online retailing of
products has paced up in the Indian market and has a good penetration.
2. Majority of the sample population preferred the websites with the company domains eg.
http://www.bombayhighfashions.com. This indicates that although people are moving towards trusting a website
and making purchase from it they still tend to buy from well known and established players of this industry due
to the lack of trust and transparency.
3. Respondents were asked about the preferred mode of payment whilst purchase, to which 64% people preferred
COD payments. Whereas 23% prefer card payment, and only 12% prefer net banking as a mode of payment. This
again depicts the lack of trust.
4. 41% respondents see e-commerce websites as a platform for availing deals and discounts, which depicts that
most of the respondents see the e-commerce websites as a platform where they can get products on a cheaper
rates than from the actual stores. The exciting deals offered by some websites also create craze eg.
http://www.snapdeal.com/

5. The next question was to find out the reason to prefer e-commerce websites for shopping, to
which out of 125 respondents 31% said that they prefer online shopping as it saves time, 28%
said that they prefer because it is convenient, 25% respondents said that they look up to the
websites of the discounted price whereas only 16% said that they look up for the offers served.
6. The respondents were also asked as to which websites do they prefer whilst shopping online. To
which the answers were majorly in favour of myntra, flipkart, fashionandyou and jabong.

3) EFFECT OF CERTAIN DEMOGRAPHICS ON CUSTOMER
BUYING BEHAVIOUR
a) Any online purchase yet V/s Annual Income Analysis:
The above graph indicates
that out of 125 respondents
36% people who have
actually made an online
purchase come under the
income group of less than
2.5 lakh and 27% come
under the income category
2.5-5 lakh. 17% come in the
category of 5-10 lakh and
only 8% come under more
than lakh category.
4
2
7
1
27
17
36
8
0
5
10
15
20
25
30
35
40
2.5-5 lakh 5-10 Lakh Less than
2.5 Lakh
More than
10
2.5-5 lakh 5-10 Lakh Less than
2.5 Lakh
More than
10
No Yes
Anyonlinepurchaseyet
Total

Analysis:
Among the 78% (99) female
respondent, majority (56%) say
that they make online purchase of
lifestyle merchandise once in
every 1-2 months. 15% buy more
than once in a month. 11% are
not very frequent but still
purchase at an interval of 3
months, while another 11% claim
to buy only once in 4-5 month
time frame. 7% of them are very
rare online buyers.
In the case of male
population, 50% make online
purchase of lifestyle merchandise
once in every 1-2 months. 32%
buy once in 3 months and 18%
rarely buy online.
b) Male-Female Demographics v/s Frequency of Online Purchase:
More than
once a
month
Once a
month
Once in 2
months
Once in 3
months
Once in 4-
5 months
Once in 6
months
Once a
year
Only Once
Male 7 7 9 3 2
Female 15 29 26 11 11 6 1
0
5
10
15
20
25
30
35
Count
Male-Female Demographics v/s frequency of online purchase

Analysis:
 The above bar chart indicates that
there is a steady online purchase of
products within the price bracket
of Rs. 1000 – 2499 among the
population falling under the age
group of 20 to 35 years.
 The chart also indicates that the
intensity of making a purchase
within Rs. 2500 – 4999 increases
exponentially from the age group of
20-25 years to 31-35 years. The age
group of 20-25 mostly purchases
within Rs. 2499 price limit.
Whereas, the average monthly
expenditure of age group 26 – 35 is
between Rs. 2500 – 4999.
 Respondents from the age group of
36 and above have a monthly
expenditure of Rs. 5000 – 9999, on
lifestyle products.
c) Age group v/s monthly expenditure
0
2
4
6
8
10
12
14
16
18
20
20 - 25 26 - 30 31 - 35 36 - 45 46 - 60
Age Group Vs Monthly Expenditure
0 - 999 1000 - 2499 2500 - 4999 5000 - 9999 10000 - 19999 20000 - 49999

20 - 25 26 - 30 31 - 35 36 - 45 46 - 60
More than once a month 4 6 3 2
Once a month 6 9 12 5 4
Once in 2 months 5 11 11 5 1
Once in 3 months 6 5 6 3
Once in 4-5 months 7 4
Once in 6 months 2 4 2 1
Once a year 1
Only Once 1 1
0
2
4
6
8
10
12
14
Count
Age Group V/S Frequency of Purchase
d) Age group v/s frequency of purchase
(source: https://docs.google.com/forms/d/1tslf2deGq2-gUQPwwrSVm60QPev8-zD1PkGtFica6C4/viewanalytics)

Objective 2:
To ascertain the average monthly expenditure on lifestyle products and frequency of purchase
at which products are bought online
1. A clustered chart for any online purchase yet v/s annual income chart depicts that most of the people who
prefer to make online purchase fall under the middle income group and the upper middle income group.
Therefore the e-commerce portals should come up with a product mix which can cater to the above income
group.
2. A clustered chart of average monthly expenditure and age group demographics of the respondents depicts
that the age group 26-35 comes under the average monthly expenditure bracket of 2500-4999. This indicates
that Indian customers are willing to place a bet of the above amount online. A new online portal should
provide product mix relevant to the above findings. Therefore, this information obtained from group v/s
average monthly expenditure chart can be used extensively for personalized marketing of a new e-commerce
portal. Also online marketing enables the marketing efforts to be enough to capture the right target market.

3. A clustered chart of male-female demographics and frequency of online purchase reveals that
majority (56%) of the female population makes online purchase in 1 to 2 months time frame.
Results also show that 50% of the male population also shops online once in 1 to 2 months for their
lifestyle needs.
4. Another clustered chart of age group and frequency of online purchase shows that population from
the age of 26 to 35 years old tend to purchase once in a time frame of 1 to 2 months.
*It is important to obtain the frequency of online purchase, in order to keep churning the inventory in that
time interval. This indicates that an online platform for lifestyle products should turn the inventory once in
every 2 months, in order to keep providing their customers with more variety and new products.

Inference:
The above graph shows that the
inclination of people for online
purchase is more towards
apparel and accessories and to a
certain extent IT Gadgets are
preferred.
4) MOST PREFERRED CATEGORY TO BUY ONLINE
a) Categories preferred for online purchase
0
10
20
30
40
50
60
70
Apparel Accessories Home and décor FMCG IT gadgets Pharmacy

Analysis:
people prefer branded
products, 12% prefer private
labels, where 6% people prefer
customized products, 7% prefer
designer wear and only 3% prefer
boutique brands.
b) What do you prefer the most
0
10
20
30
40
50
60
70
80
private labels branded products boutique brands designer wear customized

Objective 3:
To determine which category of lifestyle products is more likely to be bought online by
Indian customers
1. Respondents were asked about the product categories which they would be comfortable buying online. The
results indicated that out of 125 respondents, 30% were willing to buy apparel from online portals.
Whereas 27% out of the total respondents would like to buy accessories such as
bags, belts, wallets, sunglasses etc. from websites. 23% respondents prefer to purchase IT Gadgets, 9%
prefer home décor and FMCG products, and only 3% respondents purchase pharmaceuticals.
 Therefore the e-commerce portals should concentrate on home décor and the FMCG sector to capture and
tap the market towards online portals for the products range in the above categories.

2. Respondents were then asked about the preferred product type they would like to buy online to
which 72% people preferred branded products whereas 12% preferred private labels. And the
designer wear could just get a 7% response.
 Therefore the e-commerce companies should more concentrate on the marketing of the designer
wear products to which the customers are quite apprehensive of purchasing them online due to the
high price ranges of the products.

Analysis:
From the feedback obtained, it can
be assessed that 46% of the sample
population buys the products
which provide value for their
money. 27% of the same population
values style more than any other
attribute in the product. And 26%
of them would prefer to buy brand
against style or value for money.
5) PRODUCT ATTRIBUTES INFLUENCING BUYING DECISIONS
a) Most valued product attribute
0
10
20
30
40
50
60
brand style value for money
Chart Title

b) How will you rate your online purchase experience for the products with respect to
product display, zoom options etc?
0
10
20
30
40
50
60
70
Exceptional Great Good Poor Very Poor
PREFERENCES FREQUENCY PERCENTAGE
Exceptional 11 10
Great 26 25
Good 59 56
Poor 5 5
Very Poor 4 4

Objective 4:
To assess the preferences of customers in terms of buying lifestyle products from
brands, private labels and designers.
1. The respondents were asked about the most valued product attributes to which 46% of the
sample population said that they buy the products which provide value for their money. 27% of
the same population values style more than any other attribute in the product. And 26% of
them would prefer to buy brand against style or value for money.
 A new e-commerce portal which is trying to consolidate designer label lifestyle products can
assess the potential of this category by the feedback obtained from the sample population. It is
evident that customers are willing to purchase branded designer label products only if it gives
value for their money. Thus, the new online portal will have a vast target market to cater to.

2. The customers were asked to rate their online purchase experience on the parameters
exceptional, great, good, poor, and very poor. To which 56% said that they had a good experience
shopping online whereas 25% experienced it as great. And only 10% could contribute their
exceptional experience of online purchase.
 Therefore an e-commerce portal should concentrate on the customer interface which is the most
important to attract a customer towards the website. Also the payment options should be
comfortable enough to support the online purchase.

Objective 5:
To find out whether certain product attributes influence customers buying decision
1. Feedback of the sample population was taken on certain product attributes in order to assess
the influence of these attributes on their buying decision. Respondent’s feedback taken on the
most valued attribute in lifestyle product indicates that for 50% of the sample population the
product should have value for money. For another 38% of the sample population, style matters
more than anything else while buying a product online.
 Thus, it is indicated that the customers wants value for money and style over brand. A new
online portal should focus on having a product-mix which offers style and value for money to the
customers.

2. The customers were asked to rate their online purchase experience on the parameters
exceptional, great, good, poor, and very poor. To which 56% said that they had a good experience
shopping online whereas 25% experienced it as great. And only 10% could contribute their
exceptional experience of online purchase.
 Therefore an e-commerce portal should concentrate on the customer interface which is the most
important to attract a customer towards the website. Also the payment options should be
comfortable enough to support the online purchase.
3. Data analysis on the feedback of respondents gathered on the percentage of discount that will
encourage them to buy designer products online rather than going for the branded ones indicates
that a discount of 40% to 60% may be offered on the non-branded designer products in order to
trigger the customers to buy designer products over branded products.
 It is possible to offer such discounts either on previous season’s inventory which can be bought at
heavy discount from the designers or by inflating the MRP or by selling the products at a very less
markup.

6) GROWTH IN THE USAGE OF TECHNOLOGY THUS
CONTRIBUTING IN THE EVOLUTION OF E-COMMERCE
a) Access to Inernet
0
20
40
60
80
100
120
yes no

Analysis:
47% of the total respondents
said that they use their
personal computers to access
internet, 29% said that they
use mobile, 23% said that they
use computers at work
whereas only 1% respondents
use internet café as a mode to
access internet.
b) Devices used to access internet
0
10
20
30
40
50
60
70
80
90
100
personal computer Mobile Internet Café Computer at work

Analysis:
17% use it for e-mail, 12%
use it for Research/general
information, 12% internet
banking, 14% online
shopping,
16% entertainment, 18%
social networking, 11%
office related work.
c) Reasons to use internet
0
10
20
30
40
50
60
70
80
90

Objective 6:
To assess the growth in the usage of technology, thus contributing in the evolution of e-commerce
1. To assess the technological knowledge among the respondents they were asked about their
access to internet to which 99% people confirmed of accessing internet for various reasons with
17% for e-mail, 12% for Research/general information, 12% for internet banking, 14% for
online shopping, 16% for entertainment, 18% for social networking, 11% for office related
work.
 Thus we can see that now that the people are using more and more of internet and are quite
aware of the technological aspects of the websites, e-commerce websites can obviously be a big
time option for the people and also we can notice that the maximum percentage of people are
using internet for accessing the social networking websites, hence they can be a strong platform
for the marketing of the products.

6) CUSTOMER SATISFACTION LEVEL RENDERED BY
CURRENT ONLINE PORTALS SELLING ONLINE PRODUCTS
0 10 20 30 40 50 60
Product Display
Product Description
Product Mix
Product Pricing
Checkout Process
Shipping Options
Payment Options
Overall Experience
Count
E-RetailAttributes
Very Poor
Poor
Good
Great
Excellent

Objective 7:
To discern areas where online lifestyle product market is lacking behind in customer satisfaction
and how it affects the purchase behaviour
1. Product display
Improvement can be made in terms of providing high resolution images, high zoom in
feature, more view of the product instead of the stereotype 4-way (front, back, left side, right
side) view and also by displaying the close-up swatches of the product to accentuate some
intrinsic patterns/embellishments/embroidery on the product.
2. Product description
The description and display of the product should fill in for the absence of touch and feel
experience and should encourage the customers to make a purchase. An excellent content
writing is required to present the elaborate information about the products precisely in front of
the customers.

3. Product mix
Data analysis indicates that most of the customers like the product-mix made available by
current online portals. Thus, it is crucial for a new entrant to have an excellent variety of
products to be offered to the customers. A new website should launch with atleast 100 different
styles in each product segment and should keep appending to it in order to not only have new
visitors but also to grow the revisiting customer base.
4. Product pricing
Pricing the products right can be a key element of success for a new e-commerce portal in the
price sensitive Indian market. The pricing should be justified according to the product material
and brand/designer name. Customers should feel that they are at a much more beneficial
situation by choosing to shop from a particular website over others.

5. Checkout process
An improved checkout process may include providing options to continue shopping after the
addition of each product to the cart, the customer can be provided with an option of being
redirected to the home page, or the specific page where he/she was shopping before
proceeding to checkout, to add additional quantities of the products which are already in the
cart, to drop an item from the cart, to proceed towards the payment etc.
6. Shipping options
Improvements can be made in terms of providing customers with the opportunity of storing a
default billing address and a default shipping address so they don’t have to enter this
information again while shopping from the same website. Some innovative shipment options
such as providing free gift wrapping and message card, separate shipment of billing
information etc. can also add an element of excitement while purchasing online.

7. Payment options
It indicates that a new website should maintain this level of service and should have all the
major payment options available to the customers. It can also have EMI (Equated Monthly
Instalment) as a payment option on high value items. The payment process should be
quick, hassle free and secure in order to deliver a good shopping experience to the customers.
8. Overall experience
A new website should have a large bandwidth in order to handle customer traffic efficiently, the
domain should be hosted by fast responding servers provided by companies such as Amazon.
The website should be compatible with multiple browsers such as chrome, Mozilla
firefox, safari, opera, opera mini, etc, the page load time, redirection time, domain lookup
time, should be only a fraction of second in order to deliver a good overall online shopping
experience to the customers.

Objective 8:
To locate the need gap and major thrust areas in the current online market and thus to suggest
possible measures to tap those areas
 Thus, a new e-commerce portal should focus on consolidating the fragmented designer wear market and
should try getting as many designers and private labels on board in order to provide customers with a
huge variety of products to choose from.
 It is also suggested that the new online portal must stock the inventory in its own warehouse to be able to
provide prompt delivery of the products to the customers as well as to be able to quickly replace a faulty
product.
 The pricing of the product should also be kept in mind

Objective 9:
To determine which age group and income group is perceived to be the target customers of
styletag.com
 The target market for styletag.com is the young, ambitious, fashion savvy and tech-aware population under
the age group of 20 to 35.
 The survey results also indicate that respondents under the age group of 20 to 35 shop once in 1-2
month, which turns out to be the estimated average inventory turn period of styletag.com.
 The data analysis also indicates that majority of the respondents from the age group of 20 to 35 spend
between Rs. 1000 to Rs. 4999 and an average of Rs. 4360 monthly online to shop lifestyle products, which
turns out to be the price bracket of styletag.com.

Evolution of E-Commerce and StyleTag's Success in India

Evolution of E-Commerce and StyleTag's Success in India

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