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CHAPTER 1
1. INTRODUCTION
With the increasing internet penetration and proliferation of smart phones, more and
more consumers are choosing to purchase products online year-on-year. Today online
shopping continues to grow with growing behavior of “Show rooming” wherein a
shopper browses through a physical store but ends up with buying online for various
reasons. The increasing customer behavior of “Show rooming” is attributed to innovative
and engaging shopping experience provided by the mainstream and niche online
fashion retailers. The increasing tendency shoppers of “browsing offline but buying
online” naturally leads to the loss of brick-and-mortar players because of which many
times a question is put on the future of brick-and-mortar retail. Τhe increasing diffusion
and adoption of alternative business-to-consumer retail channels through both
traditional and innovative retail settings has transformed retail practices and consumers’
shopping processes, as well as has created several interesting research issues in the
context of the fast evolving multichannel retail environment. Today, the capability of the
simultaneous use of several consumer-store interaction channels (e.g. use of mobile
internet access within the physical retail store to search for product information and/or
compare product prices) constitutes the dominant characteristic of the “Omnichannel”
retailing phenomenon, which builds on the well established multichannel retail
infrastructure, mainly developed since the commercial exploitation of the World Wide
Web. “Omni” is a Latin word meaning “all”, “universal”. This new term originates from
business practitioners, but recently also gained attention among academia. Since then,
the term remained a buzzword until it started to gain increased attention in recent years
by both the academic community and practitioners. Rigby was the first to mention the
term in academic literature by defining Omnichannel retailing as: “an integrated sales
experience that melds the advantages of physical stores with the information-rich
experience of online shopping”. We observe that the definition was extended to the
point that it involved not just the simultaneous use of channels, but the experience that
derives from the integrated combination of them.
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1.1 Background:
The retail industry is highly affected by the changes in the world. With the disruptive
force of digitalization, more and more of the transactions within retail is moved online as
the ecommerce has expanded making the retail industry more competitive. This change
has and is forcing many offline retailers to close business around the world but in this
change, has new trends emerged. Both online and offline retailers are starting to see
the value of having physical stores as well as having an online presence. Doing so
creates opportunities for both e-commerce companies and physical retail stores to
create value using multiple channels.
1.2 Purpose of the Study:
The purpose of this study is to find out how an independent online store can create
value for consumers through omni channels to gain a competitive advantage against
pure Brick and mortar store and larger retail companies.
1.3 Objective:
 To review the present status of Omnichannel being used by PepperFry in
India.
 To Understand the customer experience in the age of omni-channel
shopping.
 To identify the need of Omnichannel in retail stores of PepperFry.
 To provide suggestions to popularize and increase the profitability of
PepperFry in India.
1.4 Scope Of The Project:
 At the end of the project the analysis will help to understand the gap
between Traditional method of shopping and Omni-channel shopping.
 Helps to understand the customer needs and experience towards
PepperFry.
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1.5 Hypotheses:
H1 : Location of consumers will have an impact on the consumers order delivery time.
H2 : Shoppers' method of buying will not affect their willingness to buy furniture in online
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CHAPTER 2
2. LITERATURE REVIEW
2.1 Omni-Channel
It is personalisation and customisation options online as well as exciting loyalty
programs. Take for example the Starbucks' app, which has combined loyalty and value
add options for consumers in one fell swoop and has managed to garner almost 19
million active monthly users globally, accounting for nearly 30 % of total rush hour sales.
2.1.2 The Future = Omnichannel & Consumer Experience
Eventually, the route to success for both offline and online companies is customer
experience. Shoppers will shape the path brands take in the coming future-offline or
online. A returning consumer spells victory for a brand and this is possible only through
creation and implementation of experiences, as well as a seamless connection between
all channels of trade traditional or e-commerce.
2.1.3 From Clicks to Bricks
Why Luxury E-Commerce Brands Are Opening Physical Stores
 brick-and-mortar retail is shifting to cater to evolving preferences, expectations,
and shopping behaviours of modern consumers.
 Physical high-end stores help build legitimacy and brand awareness.
 Digital-first luxury brands leverage online data to offer a personalised experience
offline.
 Successful luxury e-tailers are re-imagining the purpose of physical stores by
taking cues from digital shopping experiences. They are using the opportunity to
offer a compelling high-end experience that complements the digital one.
 No inventory: Digital-first luxury brands can use stores as pure showrooms.
Globally, the O2O trends as witnessed many more cases in comparison to India. Pure
play e-commerce retailers are driving incremental sales by allowing multi-channel
shopping, in the hope that shoppers using more than one channel will spend more on
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their brand. The other upsides are repeat Purchases, increased average order value
and interacting with the brand in person. Some brands which have successfully
included traditional retail in their repertoire of sale channel are: Amazon Go ,
Alibaba.com, Bonobos , Boll&Branch.
2.1.4 Omnichannel Experience:
Omnichannel experience is no longer just a buzz word. It is the need of the hour, the
one thing which will pretty much ensure success for a retailer. Consumer demands are
very specific these days and to fulfill them a brand has to be Omnichannel in its
approach. It has become critical for retailers to build a seamless and an easy shopping
experience , not just to acquire, but to retain customers as well. Around 45 % of
Millennials make purchases through e-commerce platforms like Amazon and Flipkart
2.1.5 Omni-channel Retailing :
Rina Hansen (2015) in the research thesis titled- Towards a digital strategy for
Omnichannel retailing- has argued that, the emergence of web technologies, mobile
devices and social media networking channels has revolutionized the retail customer
experience. The researchers found that customers are increasingly using multiple
channels to maximise their shopping experience. The researcher here illustrates the
Hummel’s case study and examined the transition of a B2B company to becoming a
multi-channel retailer (B2C E-commerce) by re-aligning its inherent digital technologies
for developing the Omnichannel retailing model. This study concluded that, after the
proliferation of these technologies consumer expectation has increased, categorically in
the category of fashion retailing. In this thesis, the researcher has suggested the fashion
brands to reconfigure their existing business and information technology (IT) resources.
The researcher recommends aligning these resources with a new digital strategy in
order to deliver an integrated and coherent shopping experience across channels and
markets. The researcher refers this approach as the Omnichannel way of retailing. Here
the researcher has summarised that, with the advancement of digital channels, the
consumer expectations has also increased to a new level. In this kind of scenario,
businesses need to engage with the customers whenever, wherever and however. So
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the motivation for strategically executed Omnichannel strategy will be become ever
more compelling. However this study is limited by featuring a single case that is
pertaining to fashion retailer Hummel’s. Hence it can be argued that, one cannot
generalise from a single case. The second major limitation of this study is its focus on e-
commerce only and inclination towards the technicalities of the Omnichannel
transformation process. However, it is observed that, digital marketing and social media
marketing are the inevitable components of Omnichannel retailing at Hummel and in
general as well. A study undertaken by Deloitte delves into the new system of retailing
connecting the various channels like offline stores, Web based stores, mobile apps and
social media networks is referred to as the Omnichannel retailing. By virtue of
integration all these channels, Omnichannel retailing offers a flexible and seamless
shopping experience to consumers, regardless of whether the customer walks into a
store, browses on a website or orders via mobile devices. So by being broadly present
across channels and enabling each channel to serve the customer at any point through
the purchase journey, retailers can increase the brand awareness, enhance loyalty and
ultimately drive the value. It is also observed that, by integrating store and non-store
presence leading retailers have been able to lure new customers and also to appeal to
distinct markets. In doing so they not only increase their level of non-store sales, but
they achieve this at very low cost of their existing sales. (Deloitte, 2014) Hence
Omnichannel retailing is basically the model of retailing that offers a seamless shopping
experience to consumers across all possible mediums/channels. It involves engaging
consumers with the right message at the right time on the right channel.
2.1.6 Omni-channel Loyalty :
Michael Hemsey (2012) in the whitepaper titled- Omni channel Loyalty- Designing the
Ultimate Customer Experience- stated that, the term Omni channel is an outgrowth of
multi-channel and cross-channel retailing. Omni channel system when implemented
with proper management expertise and technology solutions can be upgraded to offer
an Omni channel experience. The researcher further argued that, marketers want to sell
products to consumers while loyalty experts strive to engage, retain and grow these
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new customers and drive them to advocacy. However, the only way to accomplish both
effectively is by offering channel-optimized loyalty programs “right timed” to deliver
engagement at each and every touch-point that meet the expectations of each
customer.
Mark Glazer (2012) VP of Brand Loyalty at Kobie Marketing Inc said that, successful
Omni channel loyalty is about delivering loyalty from the very beginning of the customer
lifecycle, across all channels in seamless manner. True connection begins even before
consideration; I'm talking about that inkling that makes someone engage in the first
place and say “yes please” or “more please,” sparking an instant got-to-have-it moment.
2.2 PepperFry
PepperFry started operations in January 2012 as an online retail portal e-tailing various
product categories such as apparel, jewellery , perfumes and cosmetics and furniture
and home décor. However, it took just a little over a year of operations to realize the
enormous promise that the furniture business held. This product category contributed to
approximately 80% of the company’s top line then and had no competition in the online
space at that time besides Urban Ladder. Realizing the sizeable opportunity and the
significantly higher margins in the furniture business, PepperFry shelved other product
lines and positioned itself as an online marketplace specializing in furniture and home
products in March 2013.
2.2.1 PepperFry's USP
In a short span of 6.5 years, PepperFry has entrenched its position as a market leader
in the online home and furniture segment courtesy the robust financial architecture and
the efficient business process deployed. Its effective business model stands on the
following differentiators/Pillars:
 Omnichannel Network
In 2014, PepperFry pioneered the Omnichannel approach by launching its first
experience centre, studio PepperFry in Mumbai, that enables consumers to experience
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the material, quality and make of the product and interact with design experts who offer
free in-store design consultancy on furniture products ensemble in studios.
 Differentiated Catalogue
It offers a wide range of 1.2 lakh products, including top brands and house brands,
which cater to specific product requirement of the customers. Having recognised that
every customer has a distinct requirement, the company has developed a robust
portfolio of 10 inhouse brands as well as that cater to a wide range of design and style
specifications of consumers and contribute to 50 % of the overall business.
 Managed Marketplace Model
PepperFry has more than 10,000 merchants registered on the online platform who can
sell the products to customers in more than 500 cities. In the highly unorganized
segement, the brand operates through a managed marketplace model where it
manages all aspects of customer experience starting from pre-sale merchant listings to
post-sale logistics and customer service. This enables the brand to provide a
standardized and superior buying experience to Indian consumers. The business
model acts as an ideal platform for small and medium business artisans and merchants,
who wish to sell merchandise. It also has over 1,000 merchant partners who showcase
their design skills, craftsmanship and service orientation to customers across India and
the world. For many merchants, it has become the primary source of their income.
 Largest Big-Box Logistics Infrastructure
In an industry that largely depends on external service providers, PepperFry was the
first online furniture marketplace to build its own logistics network that has helped in not
only rationing time and costs but also helped in overcoming sectoral challenges that
existed before. It constructed a proprietary hub-and-spoke large item distribution model
that significantly reduced per unit shipping costs, increased scale and operating
efficiencies and achieved unprecedented service levels at negligible damage rates. The
company also developed specialized packaging and delivery capabilities for
differentiated furniture products and used ingenious technologies and instruments to
deliver despite arduous situations. Today, PepperFry has built India's largest big-box
supply chain network with 18 distribution centres and 3 warehouses across the country.
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It owns its last mile delivery with over 400 trucks and a team of 250 carpenters. with the
capability of delivering more 1,00,000 large items per month, it caters to 500+ towns
and cities in India.
2.2.2 Marketing Mix
Product
PepperFry is an ecommerce platform in India which focuses on selling furniture and
other household accessories. PepperFry identified that there is unfulfilled consumer
requirement of logistic support for movement of furniture from one city to another and
there is a business potential for a pan India furniture portal. PepperFry offers a highly
differentiated portfolio of more than 1.2 lakh products across categories like furniture ,
home decor , lamps and lighting , furnishing, kitchen and dining , housekeeping , and
hardware and electricals.
In the furniture segment, bed, coffee table and shoe racks are a popular choice and in
the non-furniture segment, lamps and lighting is the largest category followed by
mattresses, dining and baking, and hardware and electricals. PepperFry began as an
online marketplace platform where merchants can list their furniture products for sales
and PepperFry would additionally provide logistic support in order fulfilment. The
company later moved into providing its expertise in packaging and photography. The
company offers more than 1 million furniture products ranging from furnishing to kitchen
and dining as a part of its product offerings in its marketing mix. Coffee table is the most
sold furniture item through its platform. The company ventured into home décor
business with the launch of Studio PepperFry in December 2014. Studio PepperFry
provide services ranging from space planning and conceptualization to selection of
furniture and guide for material specification. The company has launched its mobile app
to enhance its engagement with the customers.
Price:
PepperFry does base its pricing strategy on discounted price but on customized offering
and comparison across assorted products in the process obtaining 40-45% margin.
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The average ticket size for furniture is between Rs. 17,000 - Rs. 20,000 and for other
home products, it is Rs.4000.
Company believes unlike other e-commerce platform, furniture e-tail is fragmented and
PepperFry has to target a market which is largely unorganised and hence discount
pricing may not work. However, PepperFry prices its offering at competitive and
affordable prices as a pricing strategy in its marketing mix. The company also brings in
sales discount for limited windows to boost up sales and create buzz. PepperFry uses
periodic referral and discounted coupon codes for certain categories of product. It has
also collaborated with other credit and debit cards companies and offers special
discount to the partner credit card company’s card holders.
Place:
PepperFry has covered more than 500 cities under its service offerings. Currently
PepperFry studios(Owned and Franchise) across 16 cities and aim raise this number to
70 by April 2019. The average size of the studios ranges from 2,500 to 3,000 sq.ft.,
Which is typically 1/10th of a normal offline furniture store. It has sold furniture
assembled in Jodhpur in Rajasthan to a customer in Mizoram covering 2664 km for
fulfilment in process. PepperFry owns 400 vehicles for the fulfilment of orders. The
company has built the Padgha Warehouse, the largest furniture warehouse in India.
Most of the company’s warehouses are present in Western and Southern parts of India.
The company has opened 20 Studio PepperFry across the country to enhance the
customer experience and create a pull for purchase from its online marketplace. The
psyche of consumers in India is to have physical look at the furniture before buying,
these experience centres helps PepperFry in building confidence towards its product
among consumers. Experience centres also bring in customers for its home décor
business. PepperFry mobile app is designed with augmented reality features for
increasing customers experience.
Promotion:
PepperFry invests heavily on advertisement as it tries to increase the brand awareness
level. Their marketing strategy is built around helping people to make purchase
decision. The company mostly advertises on TV. PepperFry also advertises through
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paid print media and radio. In first few years its ad campaigns were focused on building
the trust around the brand and online purchase of furniture. Once they have reached
optimal awareness among the consumers later ad campaigns are more focused on
providing specific benefits like looks and design of product. PepperFry is also utilizing
digital media platform for promoting its brand and business. As a part of the promotion
strategy the company ensures it presence for the people who actively researching on
the Internet to buy furniture and these target groups are approached via performance
marketing channels such as search engines and Social Media. To create good
impression only high definition images of products are posted on the webpage. As per
company’s research their 65% of the customers are women who shop after 8 P.M on
weekdays and on weekends and accordingly company designs its promotional
campaigns
People:
PepperFry works with 10,000 suppliers, 3,000 artisans and over 3,000 active suppliers,
from whom it sources its products outside of their job responsibility. It values creativity
more than skill in its employee. PepperFry has 250 carpenters on call so that customers
need not have to wait for more than 6 hours for the set-up of furniture. It invests in
improving its logistic services as furniture is a segment which needs exceptional care
while fulfilment. Logistics is the area where company loses its most of the margin but it’s
the quality of fulfilment service which is the key differentiator for company. PepperFry
has launched Bespoke services, a forum through which customers express their
opinions to the designers for upping the design quotient of their respective homes.
Physical Evidence:
PepperFry sells some products which are made from technologies having ISO:9001,
18001 and 14001 certifications, which signals the quality of product it has on its online
marketplace. PepperFry had a sales of INR 1000 crore which accounts to 50% of total
e-tail furniture sales. The company is market leader in online furniture sales. PepperFry
sells an item every 25 second, has over 5 lakh monthly visit on its webpage and has
more than 5 lakh likes to its Facebook page. By February 2017 it has served 4 million
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customer orders. PepperFry has won numerous awards like Red Herring Asia Top 100
which is given to most promising private technology ventures in Asia and Pure-Play e-
retailer of the year at Indian e-retail congress 2014.
Process:
PepperFry deploys stringent quality check to provide quality products to the customers
at durable prices. IT is the key to PepperFry’s business it invests in building state of IT
infrastructure. It makes extensive use of data analytics to know about the consumer
preferences and shopping habit to provide customised offerings. The company values
its merchant and artisans, currently it has over 100 merchant partners who use this
platform to display their design and craftmanship. PepperFry has announced the launch
of innovation hub in Bengaluru in 2016. This will be the R&D centre with 30-40
developers responsible for developing solutions to enhance customer experience.
Hence this gives an overview of PepperFry marketing mix.
2.2.3 Marketing Strategy
‘Content, Consult, Commerce’
The PepperFry strategy is built along the three pillars of ‘Content, Consulting and
Commerce’ that are typically the three phases that the quintessential buyer goes
through during the process of shopping for furniture.
The first step involves researching what options are available in the market for the item
he is looking for. This is the ‘content’ phase that PepperFry aids the customer by
providing a class-leading online catalogue of over 1.2 lakh products across categories
like furniture, décor, lamps, bed and bath, furnishings, kitchen, dining, bar,
housekeeping, hardware and electronics, garden and kids.
Once the customer has a reasonable idea of what he is interested in, he consults
professionals such as interior designers and architects or trusted acquaintances to help
him narrow down his choices and decide what to finally buy. This is the most difficult
part of the buying process as it more often than not involves a significant cost of
consulting a professional and finally closing down on a deal. While PepperFry’s
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exhaustive and highly user-friendly online interface plays a significant part in consulting
the customer, the lack of a human element had always limited the consulting process.
The online interface characteristically restricts an element of customer engagement that
can only be bridged by a brick-and-mortar establishment. This had been addressed to a
great extent by the launching of the first of thirteen PepperFry studios in December
2014.
The commerce stage refers to the conclusion of the deal where the consumer goes to
the online portal and places the order for the product he has decided to buy. While most
businesses focus almost entirely on this, PepperFry has taken necessary steps in this
direction to engage the customer in his decision making process by setting industry
benchmarks during the content and consulting stage.
Logistics is key’
PepperFry has built a robust logistics and supply chain to ensure a smooth delivery
process. Their heavy item shipment network ensures quick and damage-free door-step
delivery of bulky furniture covering over 98% of furniture orders placed by customers. It
offers free shipping and installation on all items and has shipped products to more than
2,700 towns in the country through reliable logistic partners and its own last mile
delivery infrastructure.
‘Leverage vendor resources’
Since PepperFry is primarily a marketplace, commission earned from other vendors is a
fundamental part of its revenue strategy. It also leverages vendor resources freely
during the content and consulting stages to generate sales for the merchant while
creating the best possible environment for the customer.
2.2.4 Challenges and the way forward
The five-year-old company has not had to face many challenges in terms of
competition. Negotiating an essentially 92% unorganised market and building the
logistics infrastructure in addition to influencing customers to shop online for furniture
were its trickiest challenges.
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PepperFry believes that it is firmly poised for growth and aims to be a USD1 bn
company in the near future, since it has successfully created a class-leading home and
furniture products catalogue and a robust supply chain in its first five years of operation.
To achieve this target, it plans to further enhance its customer engagement during the
consulting stage by nearly tripling the number of PepperFry studios in the country to 36
by the end of 2017 and expand last mile connectivity to 1,000 cities from the current 500
in the next one year. Plans are also on the anvil to better imbibe augmented reality and
virtual reality platforms in the PepperFry studios that will usher in the next stage of
product visualisation for the customer and substantially differentiate PepperFry’s
offering from the competition.
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CHAPTER 3
3. Methodology
3.1 Primary Data
 Survey: Customer survey was conducted through online.
 Observation: It involves monitoring the respondents’ action without direct
interaction.
 A sample size of 100 people were surveyed in order to understand customer
preference towards method of shopping and their buying behavior.
3.2 Secondary Data
The secondary research dealt with gathering relevant data that is already available
from various resources such as
 Internet
 Newspaper articles
 Books
 Magazines
3.3 Research Design
1. Type of Research design
Exploratory research design was used for the product. The main purpose for using
exploratory research was to explore the requirements of the consumers. Besides
this another objective was to understand the perception of the consumers.
2. Scale selection for questionnaire
The scale selected for questionnaire would be likert scale. This scale is selected for
the questions which involve understanding of the parameters and requirements of
the consumers.
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3. Questionnaire design
Questionnaire includes both open and closed ended questions. Open ended
questions are kept for recording the free responses for understanding the shopping
behaviour of the consumers. Closed ended questions are kept for recording the
price ranges and knowing the buying behaviour of the consumers.
3.4 Sample design
a) Target popular on
Element: All the age group (Millennial , Gen X , Baby boomers nd Gen z)
Sampling unit: online through social networking sites
Extent: Tier 1 , Tier 2 and Tier 3 cities
Time: Period of survey
b) Sampling technique :
Simple random sampling was done for our research as we did not
focus on a particular group of people. Simple random sampling is the
easiest form of probability sampling. All the researcher needs to do is
assure that all the members of the population are included in the list
and then randomly select the desired number of subjects
c) Sample size:
The sample size selected for the research would be 100 with all age
group
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3.4 Data collection Tools
Data Representation
 Pie charts and tables
 Bar charts
3.7 Data collection Software
SPSS
3.8 Analytical Tool
 Cross tabulation.
 Chi- square test.
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CHAPTER 4
4. Data Analysis and Interpretation
4.1.1 Pie-Chart
Analysis:
47% Respondents are aware of the term Omnichannel
41% Respondents are not aware of the term Omnichannel.
12% Respondents are not sure about the term Omnichannel
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Analysis:
87.4% Respondents are Married
12.4% Respondents are UnMarried
Analysis:
61.2 % Respondents are Students
26.2% Respondents are Working
And Rest of them are falling into Business owner , home maker and other category
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Analysis:
76.7 % Consumers are prefer to shop from both online and In-store
16.5% Consumers are prefer to shop from In-store.
6.8% only consumers are prefers to shop Online.
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Analysis:
51.5 % Respondents are living in Metropolitan area.
42.7% Respondents are living in Suburban.
Analysis:
31.1% Respondents are not Satisfied with online shopping experience.
27.2% Respondents are neutrally satisfied with online shopping experience.
20.4% Respondents are satisfied with online shopping experience.
11.7% Respondents are very unsatisfied with online shopping experience.
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Analysis:
66% Respondents are heard about the brand "PepperFry".
30.1% Respondents are not heard about the brand "PepperFry"
Analysis:
79.8% Customers are excepting to receive their orders Less than a week.
14.1% Customers are expecting to receive their orders from 1 week to 3 weeks.
6.1% customers are expecting to receive their orders More than 3 weeks.
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Analysis:
31.1% People are Expecting Online stores to display more reviews in their Website.
22.3% People are Expecting Online stores to display more Comparison of products in
their Website.
20.4% people are Expecting online stores to display more videos about the products.
Analysis:
while shopping in Online 57.3% shoppers are finding difficult to being not able to try out
a product .
30.1% shoppers are affected due to late arrival of their delivery.
27.2% Shoppers are finding difficult to return the items through the online shopping.
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4.1.2 Frequency Table
Analysis:
Factors Which affects the customers while buying from online/offline store
44.7% shoppers are tend to buy the products due to sales / Discounts.
23.6% Shoppers are tend to buy the products due to the shipping cost and speed of the
delivery.
31.% shoppers are tend to buy the products due to its price
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4.1.3 Cross Table
1. Profession and Method of Online shopping
Analysis:
From the above Cross tabulation we can clearly see that Students are very
much eager to shop from Large Retailer shopping website. Even people who are
working also buying from Large Retailer shopping website. Unlike other two
category business owner are tend to buy from Market place.
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2. Area of living and behavior of the Respondents shopping
Analysis:
From the above Cross tabulation we can clearly see that People who are living in the
Metropolitan area are tend to shop / order from their bed (34.34%). Almost all other
people who are living in suburban and rural are also ordering/shopping from their home.
only 8.08% from Metropolitan , 5.05% from suburban people are order /shopping from
their office and only 1.01% from Metropolitan , suburban and rural people are
shopping/ordering from retail store.
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3. Profession and behavior of the Respondents shopping
Analysis:
From the above Cross tabulation we can clearly see that Students are having
the habit of shopping/ordering the products when they are on the bed(43.3%) ,
All other people like working(9.09%) , Business owner (1.01%) and Home
makers are also having the habit of shopping/ordering the products when they
are on the bed.
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4. Area of living and Reason to shop from Retail store over online store
Analysis:
From the above Cross tabulation we can clearly see that People who are living in
the Metropolitan area(31.3%) are wanted to shop from Retail store over online
store because In retail store a person can touch , feel and try the particular
product before purchasing. followed by metropolitan even suburban(26.6%) and
Rural people(4.04%) are also saying the same reason to select the retail shop
over online store.
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5. Area of living and Awareness about Omnichannel
Analysis:
From the above Cross tabulation we can clearly see that Both the people from
Metropolitan and suburban are aware of the concept "Omnichannel", from this
we can clearly say that Indian people are aware of the concept "Omnichannel".
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6. Profession and Method of Shopping
From the above Cross tabulation we can clearly see that Students are
shopping/ordering the products from both online and offline medium (52.53%) ,
working(19.19%) but Business owner are ordering/shopping from In-
store(3.03%)
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4.1.4 Chi-square Test
H1 : Location of consumers will have an impact on the consumers order delivery time.
Hypothesis
Significance of the hypothesis is 0.65 which is Greater than the significant value (p)
0.005. Thus, the hypothesis is an alternate hypothesis, which proves that Location of
consumers will not have an impact on the consumers order delivery time.
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H2 : Shoppers' method of buying will not affect their willingness to buy furniture in online
Hypothesis
Significance of the hypothesis is 0.35 which is Greater than the significant value (p)
0.005. Thus, the hypothesis is an alternate hypothesis, which proves that Shoppers'
method of buying will affect their willingness to buy furniture in online
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CHAPTER 5
5. Findings
 Almost half of the population are aware about the concept
"Omnichannel" , from which we can say that India is ready to have the
Omnichannel method of shopping , Thus PepperFry should improve
its Omnichannel with the help of much more new technologies and
new innovations.
 Majority of the population are already familiar with both offline and
online store concept, As the method of shopping is both(76.7%).
 Still people are not satisfied with the way of online works , almost
31.2% population are expecting online stores to add reviews so that ,
they can buy the products easily.
 Even though 58.3% population are order/shopping when they are on
the bed but 72.6% are wants to try , feel the product which clearly
says that people wants both the medium.
34
CHAPTER 6
6.1 Limitations of the study
 Very extensive analysis was not possible due to limited time
 The project is limited to the 100 Respondents .
 Size of the sample is very less
 Minimum Number of tests , Hypothesis test are used.
6.2 Scope of Future Study
The Scope of further study in this topic is discussed here which was not
done due to shortage of time . An extensive analysis can be done in order to
extract insights and information from the vast data collection in a better way.
35
CHAPTER 7
7. Conclusion
The results of the research shows that independent Online store i.e PepperFry have
competitive advantages regarding personal service, products, and product assessment.
However, many customers want to experience the product in person and search for
information and inspiration about products in brick and mortar store before they shop,
even if the actual purchase is made in a online store which means that independent
online stores need to have their products for the customers in the brick and mortar store
It was also found that customers want more flexibility between channels. For example,
purchase online and experience the product in the store.
36
REFERENCE
 Vivek Rathi(2017): Think India. Think 'Connected' Retail - Pepper fry , pp. 64 - 69
 Jamila El Azhari(2015): Omni-channel customer experience: An investigation into the use of
digital technology in physical stores and its impact on the consumer's decision making
process , pp. 4 - 6
 Lea Margarethe Brandhofer(2016) : The Formation of Customer Experience Through
Offline-Online Channel Integration , pp. 8-9
 Charu Lamna(2018) : Peppryfry India's Largest Omnichannel Network - Images Retail , pp
66- 70
 Chris Lazaris(2014): Exploring the "Omnichannel" Shopper Behaviour , pp. 2
 Sandeep kumar & Charu Lamba(2018) : Technology the Greatest differentiator in the Retail
Industry, pp. 30-38
 Sandeep kumar , Charu Lamba & Surabhi khosala (2018) : Online to Offline -Pure play E-
commerce firms go physical to woo consumers , pp. 36-38
37
ANNEXURES
1. QUESSIONNAIRE
1. Age ?
 Above 15
 Between 24 & 38
 Above 38
2. Martial status ?
 Married
 UnMarried
3. Gender ?
 Male
 Female
 Others
4. Method of Shopping ?
 Online
 In-store
 Both
5. Where do you live ?
 Metropolitan
 Suburban
 Rural
6. How much hours do you spend in Online weekly ?
 Below 3 hours
 3 to 8 hours
 above 8 hours
38
7. where do u shop in online ?
 Market place
 Large retailer
 Web-store
 Other(please specify)
8. How often you shop ?
 Daily
 Weekly
 Monthly
 Yearly
 Never
9. When & Where do you shop online ?
 In bed
 In the Office
 In a Retail store
 In the car
 Other(if please specify)
10. Which item do you buy at online ?
 Clothing, shoes and accessories
 Electronics
 Beauty and personal care items.
 Books , music and movies
 flowers and gifts
11.Which factor influences you to buy ?
 Sales/Discounts
 Shipping cost and speed
 Price
12.How satisfied are you with online shopping experience ?
 Very satisfied
 Satisfied
39
 Neutral
 Unsatisfied
 Very unsatisfied
13.Which factors affect you , while shopping online ?
 Paying for shopping
 Not being able to try out a product first
 Difficult to return items
 Waiting for delivery
 Unattractive or hard-to-navigate sites
 Entering payment info
 Not knowing where to search for a product
14.What do you want more of from online stores?
 Images
 Reviews
 Comparisons
 Testimonials
 Video
15.Have you Heard about the Brand "PepperFry" ?
 Yes
 No
 Maybe
16.Would you like to buy your furniture online ?
 Yes
 No
 Maybe
17.In what period of time do you except to receive your order?
 Less than a week
 From one week / 3 weeks
 More than 3 weeks
18.Which Member of your family usually makes the decision when buying furniture ?
40
 Mother
 Father
 Other(Please Specify)
19.What is the most significant point when you choose household accessories and
furniture shop ?
 Price of Product
 Design of Product
 Shop's Location
 Quality of Product
20.When shopping, why might you use the retail store? Select one or more of the
following
 I like too touch , feel and try product before purchasing
 I like to get advice from store associates on what products too buy
 I like to do research and then find the product online.
 I like to browse in store and then order for delivery
 I like to collect products that I Have ordered online
 I don't like shopping online

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Scope and future of omnichannel in indian retail

  • 1. 1 CHAPTER 1 1. INTRODUCTION With the increasing internet penetration and proliferation of smart phones, more and more consumers are choosing to purchase products online year-on-year. Today online shopping continues to grow with growing behavior of “Show rooming” wherein a shopper browses through a physical store but ends up with buying online for various reasons. The increasing customer behavior of “Show rooming” is attributed to innovative and engaging shopping experience provided by the mainstream and niche online fashion retailers. The increasing tendency shoppers of “browsing offline but buying online” naturally leads to the loss of brick-and-mortar players because of which many times a question is put on the future of brick-and-mortar retail. Τhe increasing diffusion and adoption of alternative business-to-consumer retail channels through both traditional and innovative retail settings has transformed retail practices and consumers’ shopping processes, as well as has created several interesting research issues in the context of the fast evolving multichannel retail environment. Today, the capability of the simultaneous use of several consumer-store interaction channels (e.g. use of mobile internet access within the physical retail store to search for product information and/or compare product prices) constitutes the dominant characteristic of the “Omnichannel” retailing phenomenon, which builds on the well established multichannel retail infrastructure, mainly developed since the commercial exploitation of the World Wide Web. “Omni” is a Latin word meaning “all”, “universal”. This new term originates from business practitioners, but recently also gained attention among academia. Since then, the term remained a buzzword until it started to gain increased attention in recent years by both the academic community and practitioners. Rigby was the first to mention the term in academic literature by defining Omnichannel retailing as: “an integrated sales experience that melds the advantages of physical stores with the information-rich experience of online shopping”. We observe that the definition was extended to the point that it involved not just the simultaneous use of channels, but the experience that derives from the integrated combination of them.
  • 2. 2 1.1 Background: The retail industry is highly affected by the changes in the world. With the disruptive force of digitalization, more and more of the transactions within retail is moved online as the ecommerce has expanded making the retail industry more competitive. This change has and is forcing many offline retailers to close business around the world but in this change, has new trends emerged. Both online and offline retailers are starting to see the value of having physical stores as well as having an online presence. Doing so creates opportunities for both e-commerce companies and physical retail stores to create value using multiple channels. 1.2 Purpose of the Study: The purpose of this study is to find out how an independent online store can create value for consumers through omni channels to gain a competitive advantage against pure Brick and mortar store and larger retail companies. 1.3 Objective:  To review the present status of Omnichannel being used by PepperFry in India.  To Understand the customer experience in the age of omni-channel shopping.  To identify the need of Omnichannel in retail stores of PepperFry.  To provide suggestions to popularize and increase the profitability of PepperFry in India. 1.4 Scope Of The Project:  At the end of the project the analysis will help to understand the gap between Traditional method of shopping and Omni-channel shopping.  Helps to understand the customer needs and experience towards PepperFry.
  • 3. 3 1.5 Hypotheses: H1 : Location of consumers will have an impact on the consumers order delivery time. H2 : Shoppers' method of buying will not affect their willingness to buy furniture in online
  • 4. 4 CHAPTER 2 2. LITERATURE REVIEW 2.1 Omni-Channel It is personalisation and customisation options online as well as exciting loyalty programs. Take for example the Starbucks' app, which has combined loyalty and value add options for consumers in one fell swoop and has managed to garner almost 19 million active monthly users globally, accounting for nearly 30 % of total rush hour sales. 2.1.2 The Future = Omnichannel & Consumer Experience Eventually, the route to success for both offline and online companies is customer experience. Shoppers will shape the path brands take in the coming future-offline or online. A returning consumer spells victory for a brand and this is possible only through creation and implementation of experiences, as well as a seamless connection between all channels of trade traditional or e-commerce. 2.1.3 From Clicks to Bricks Why Luxury E-Commerce Brands Are Opening Physical Stores  brick-and-mortar retail is shifting to cater to evolving preferences, expectations, and shopping behaviours of modern consumers.  Physical high-end stores help build legitimacy and brand awareness.  Digital-first luxury brands leverage online data to offer a personalised experience offline.  Successful luxury e-tailers are re-imagining the purpose of physical stores by taking cues from digital shopping experiences. They are using the opportunity to offer a compelling high-end experience that complements the digital one.  No inventory: Digital-first luxury brands can use stores as pure showrooms. Globally, the O2O trends as witnessed many more cases in comparison to India. Pure play e-commerce retailers are driving incremental sales by allowing multi-channel shopping, in the hope that shoppers using more than one channel will spend more on
  • 5. 5 their brand. The other upsides are repeat Purchases, increased average order value and interacting with the brand in person. Some brands which have successfully included traditional retail in their repertoire of sale channel are: Amazon Go , Alibaba.com, Bonobos , Boll&Branch. 2.1.4 Omnichannel Experience: Omnichannel experience is no longer just a buzz word. It is the need of the hour, the one thing which will pretty much ensure success for a retailer. Consumer demands are very specific these days and to fulfill them a brand has to be Omnichannel in its approach. It has become critical for retailers to build a seamless and an easy shopping experience , not just to acquire, but to retain customers as well. Around 45 % of Millennials make purchases through e-commerce platforms like Amazon and Flipkart 2.1.5 Omni-channel Retailing : Rina Hansen (2015) in the research thesis titled- Towards a digital strategy for Omnichannel retailing- has argued that, the emergence of web technologies, mobile devices and social media networking channels has revolutionized the retail customer experience. The researchers found that customers are increasingly using multiple channels to maximise their shopping experience. The researcher here illustrates the Hummel’s case study and examined the transition of a B2B company to becoming a multi-channel retailer (B2C E-commerce) by re-aligning its inherent digital technologies for developing the Omnichannel retailing model. This study concluded that, after the proliferation of these technologies consumer expectation has increased, categorically in the category of fashion retailing. In this thesis, the researcher has suggested the fashion brands to reconfigure their existing business and information technology (IT) resources. The researcher recommends aligning these resources with a new digital strategy in order to deliver an integrated and coherent shopping experience across channels and markets. The researcher refers this approach as the Omnichannel way of retailing. Here the researcher has summarised that, with the advancement of digital channels, the consumer expectations has also increased to a new level. In this kind of scenario, businesses need to engage with the customers whenever, wherever and however. So
  • 6. 6 the motivation for strategically executed Omnichannel strategy will be become ever more compelling. However this study is limited by featuring a single case that is pertaining to fashion retailer Hummel’s. Hence it can be argued that, one cannot generalise from a single case. The second major limitation of this study is its focus on e- commerce only and inclination towards the technicalities of the Omnichannel transformation process. However, it is observed that, digital marketing and social media marketing are the inevitable components of Omnichannel retailing at Hummel and in general as well. A study undertaken by Deloitte delves into the new system of retailing connecting the various channels like offline stores, Web based stores, mobile apps and social media networks is referred to as the Omnichannel retailing. By virtue of integration all these channels, Omnichannel retailing offers a flexible and seamless shopping experience to consumers, regardless of whether the customer walks into a store, browses on a website or orders via mobile devices. So by being broadly present across channels and enabling each channel to serve the customer at any point through the purchase journey, retailers can increase the brand awareness, enhance loyalty and ultimately drive the value. It is also observed that, by integrating store and non-store presence leading retailers have been able to lure new customers and also to appeal to distinct markets. In doing so they not only increase their level of non-store sales, but they achieve this at very low cost of their existing sales. (Deloitte, 2014) Hence Omnichannel retailing is basically the model of retailing that offers a seamless shopping experience to consumers across all possible mediums/channels. It involves engaging consumers with the right message at the right time on the right channel. 2.1.6 Omni-channel Loyalty : Michael Hemsey (2012) in the whitepaper titled- Omni channel Loyalty- Designing the Ultimate Customer Experience- stated that, the term Omni channel is an outgrowth of multi-channel and cross-channel retailing. Omni channel system when implemented with proper management expertise and technology solutions can be upgraded to offer an Omni channel experience. The researcher further argued that, marketers want to sell products to consumers while loyalty experts strive to engage, retain and grow these
  • 7. 7 new customers and drive them to advocacy. However, the only way to accomplish both effectively is by offering channel-optimized loyalty programs “right timed” to deliver engagement at each and every touch-point that meet the expectations of each customer. Mark Glazer (2012) VP of Brand Loyalty at Kobie Marketing Inc said that, successful Omni channel loyalty is about delivering loyalty from the very beginning of the customer lifecycle, across all channels in seamless manner. True connection begins even before consideration; I'm talking about that inkling that makes someone engage in the first place and say “yes please” or “more please,” sparking an instant got-to-have-it moment. 2.2 PepperFry PepperFry started operations in January 2012 as an online retail portal e-tailing various product categories such as apparel, jewellery , perfumes and cosmetics and furniture and home décor. However, it took just a little over a year of operations to realize the enormous promise that the furniture business held. This product category contributed to approximately 80% of the company’s top line then and had no competition in the online space at that time besides Urban Ladder. Realizing the sizeable opportunity and the significantly higher margins in the furniture business, PepperFry shelved other product lines and positioned itself as an online marketplace specializing in furniture and home products in March 2013. 2.2.1 PepperFry's USP In a short span of 6.5 years, PepperFry has entrenched its position as a market leader in the online home and furniture segment courtesy the robust financial architecture and the efficient business process deployed. Its effective business model stands on the following differentiators/Pillars:  Omnichannel Network In 2014, PepperFry pioneered the Omnichannel approach by launching its first experience centre, studio PepperFry in Mumbai, that enables consumers to experience
  • 8. 8 the material, quality and make of the product and interact with design experts who offer free in-store design consultancy on furniture products ensemble in studios.  Differentiated Catalogue It offers a wide range of 1.2 lakh products, including top brands and house brands, which cater to specific product requirement of the customers. Having recognised that every customer has a distinct requirement, the company has developed a robust portfolio of 10 inhouse brands as well as that cater to a wide range of design and style specifications of consumers and contribute to 50 % of the overall business.  Managed Marketplace Model PepperFry has more than 10,000 merchants registered on the online platform who can sell the products to customers in more than 500 cities. In the highly unorganized segement, the brand operates through a managed marketplace model where it manages all aspects of customer experience starting from pre-sale merchant listings to post-sale logistics and customer service. This enables the brand to provide a standardized and superior buying experience to Indian consumers. The business model acts as an ideal platform for small and medium business artisans and merchants, who wish to sell merchandise. It also has over 1,000 merchant partners who showcase their design skills, craftsmanship and service orientation to customers across India and the world. For many merchants, it has become the primary source of their income.  Largest Big-Box Logistics Infrastructure In an industry that largely depends on external service providers, PepperFry was the first online furniture marketplace to build its own logistics network that has helped in not only rationing time and costs but also helped in overcoming sectoral challenges that existed before. It constructed a proprietary hub-and-spoke large item distribution model that significantly reduced per unit shipping costs, increased scale and operating efficiencies and achieved unprecedented service levels at negligible damage rates. The company also developed specialized packaging and delivery capabilities for differentiated furniture products and used ingenious technologies and instruments to deliver despite arduous situations. Today, PepperFry has built India's largest big-box supply chain network with 18 distribution centres and 3 warehouses across the country.
  • 9. 9 It owns its last mile delivery with over 400 trucks and a team of 250 carpenters. with the capability of delivering more 1,00,000 large items per month, it caters to 500+ towns and cities in India. 2.2.2 Marketing Mix Product PepperFry is an ecommerce platform in India which focuses on selling furniture and other household accessories. PepperFry identified that there is unfulfilled consumer requirement of logistic support for movement of furniture from one city to another and there is a business potential for a pan India furniture portal. PepperFry offers a highly differentiated portfolio of more than 1.2 lakh products across categories like furniture , home decor , lamps and lighting , furnishing, kitchen and dining , housekeeping , and hardware and electricals. In the furniture segment, bed, coffee table and shoe racks are a popular choice and in the non-furniture segment, lamps and lighting is the largest category followed by mattresses, dining and baking, and hardware and electricals. PepperFry began as an online marketplace platform where merchants can list their furniture products for sales and PepperFry would additionally provide logistic support in order fulfilment. The company later moved into providing its expertise in packaging and photography. The company offers more than 1 million furniture products ranging from furnishing to kitchen and dining as a part of its product offerings in its marketing mix. Coffee table is the most sold furniture item through its platform. The company ventured into home décor business with the launch of Studio PepperFry in December 2014. Studio PepperFry provide services ranging from space planning and conceptualization to selection of furniture and guide for material specification. The company has launched its mobile app to enhance its engagement with the customers. Price: PepperFry does base its pricing strategy on discounted price but on customized offering and comparison across assorted products in the process obtaining 40-45% margin.
  • 10. 10 The average ticket size for furniture is between Rs. 17,000 - Rs. 20,000 and for other home products, it is Rs.4000. Company believes unlike other e-commerce platform, furniture e-tail is fragmented and PepperFry has to target a market which is largely unorganised and hence discount pricing may not work. However, PepperFry prices its offering at competitive and affordable prices as a pricing strategy in its marketing mix. The company also brings in sales discount for limited windows to boost up sales and create buzz. PepperFry uses periodic referral and discounted coupon codes for certain categories of product. It has also collaborated with other credit and debit cards companies and offers special discount to the partner credit card company’s card holders. Place: PepperFry has covered more than 500 cities under its service offerings. Currently PepperFry studios(Owned and Franchise) across 16 cities and aim raise this number to 70 by April 2019. The average size of the studios ranges from 2,500 to 3,000 sq.ft., Which is typically 1/10th of a normal offline furniture store. It has sold furniture assembled in Jodhpur in Rajasthan to a customer in Mizoram covering 2664 km for fulfilment in process. PepperFry owns 400 vehicles for the fulfilment of orders. The company has built the Padgha Warehouse, the largest furniture warehouse in India. Most of the company’s warehouses are present in Western and Southern parts of India. The company has opened 20 Studio PepperFry across the country to enhance the customer experience and create a pull for purchase from its online marketplace. The psyche of consumers in India is to have physical look at the furniture before buying, these experience centres helps PepperFry in building confidence towards its product among consumers. Experience centres also bring in customers for its home décor business. PepperFry mobile app is designed with augmented reality features for increasing customers experience. Promotion: PepperFry invests heavily on advertisement as it tries to increase the brand awareness level. Their marketing strategy is built around helping people to make purchase decision. The company mostly advertises on TV. PepperFry also advertises through
  • 11. 11 paid print media and radio. In first few years its ad campaigns were focused on building the trust around the brand and online purchase of furniture. Once they have reached optimal awareness among the consumers later ad campaigns are more focused on providing specific benefits like looks and design of product. PepperFry is also utilizing digital media platform for promoting its brand and business. As a part of the promotion strategy the company ensures it presence for the people who actively researching on the Internet to buy furniture and these target groups are approached via performance marketing channels such as search engines and Social Media. To create good impression only high definition images of products are posted on the webpage. As per company’s research their 65% of the customers are women who shop after 8 P.M on weekdays and on weekends and accordingly company designs its promotional campaigns People: PepperFry works with 10,000 suppliers, 3,000 artisans and over 3,000 active suppliers, from whom it sources its products outside of their job responsibility. It values creativity more than skill in its employee. PepperFry has 250 carpenters on call so that customers need not have to wait for more than 6 hours for the set-up of furniture. It invests in improving its logistic services as furniture is a segment which needs exceptional care while fulfilment. Logistics is the area where company loses its most of the margin but it’s the quality of fulfilment service which is the key differentiator for company. PepperFry has launched Bespoke services, a forum through which customers express their opinions to the designers for upping the design quotient of their respective homes. Physical Evidence: PepperFry sells some products which are made from technologies having ISO:9001, 18001 and 14001 certifications, which signals the quality of product it has on its online marketplace. PepperFry had a sales of INR 1000 crore which accounts to 50% of total e-tail furniture sales. The company is market leader in online furniture sales. PepperFry sells an item every 25 second, has over 5 lakh monthly visit on its webpage and has more than 5 lakh likes to its Facebook page. By February 2017 it has served 4 million
  • 12. 12 customer orders. PepperFry has won numerous awards like Red Herring Asia Top 100 which is given to most promising private technology ventures in Asia and Pure-Play e- retailer of the year at Indian e-retail congress 2014. Process: PepperFry deploys stringent quality check to provide quality products to the customers at durable prices. IT is the key to PepperFry’s business it invests in building state of IT infrastructure. It makes extensive use of data analytics to know about the consumer preferences and shopping habit to provide customised offerings. The company values its merchant and artisans, currently it has over 100 merchant partners who use this platform to display their design and craftmanship. PepperFry has announced the launch of innovation hub in Bengaluru in 2016. This will be the R&D centre with 30-40 developers responsible for developing solutions to enhance customer experience. Hence this gives an overview of PepperFry marketing mix. 2.2.3 Marketing Strategy ‘Content, Consult, Commerce’ The PepperFry strategy is built along the three pillars of ‘Content, Consulting and Commerce’ that are typically the three phases that the quintessential buyer goes through during the process of shopping for furniture. The first step involves researching what options are available in the market for the item he is looking for. This is the ‘content’ phase that PepperFry aids the customer by providing a class-leading online catalogue of over 1.2 lakh products across categories like furniture, décor, lamps, bed and bath, furnishings, kitchen, dining, bar, housekeeping, hardware and electronics, garden and kids. Once the customer has a reasonable idea of what he is interested in, he consults professionals such as interior designers and architects or trusted acquaintances to help him narrow down his choices and decide what to finally buy. This is the most difficult part of the buying process as it more often than not involves a significant cost of consulting a professional and finally closing down on a deal. While PepperFry’s
  • 13. 13 exhaustive and highly user-friendly online interface plays a significant part in consulting the customer, the lack of a human element had always limited the consulting process. The online interface characteristically restricts an element of customer engagement that can only be bridged by a brick-and-mortar establishment. This had been addressed to a great extent by the launching of the first of thirteen PepperFry studios in December 2014. The commerce stage refers to the conclusion of the deal where the consumer goes to the online portal and places the order for the product he has decided to buy. While most businesses focus almost entirely on this, PepperFry has taken necessary steps in this direction to engage the customer in his decision making process by setting industry benchmarks during the content and consulting stage. Logistics is key’ PepperFry has built a robust logistics and supply chain to ensure a smooth delivery process. Their heavy item shipment network ensures quick and damage-free door-step delivery of bulky furniture covering over 98% of furniture orders placed by customers. It offers free shipping and installation on all items and has shipped products to more than 2,700 towns in the country through reliable logistic partners and its own last mile delivery infrastructure. ‘Leverage vendor resources’ Since PepperFry is primarily a marketplace, commission earned from other vendors is a fundamental part of its revenue strategy. It also leverages vendor resources freely during the content and consulting stages to generate sales for the merchant while creating the best possible environment for the customer. 2.2.4 Challenges and the way forward The five-year-old company has not had to face many challenges in terms of competition. Negotiating an essentially 92% unorganised market and building the logistics infrastructure in addition to influencing customers to shop online for furniture were its trickiest challenges.
  • 14. 14 PepperFry believes that it is firmly poised for growth and aims to be a USD1 bn company in the near future, since it has successfully created a class-leading home and furniture products catalogue and a robust supply chain in its first five years of operation. To achieve this target, it plans to further enhance its customer engagement during the consulting stage by nearly tripling the number of PepperFry studios in the country to 36 by the end of 2017 and expand last mile connectivity to 1,000 cities from the current 500 in the next one year. Plans are also on the anvil to better imbibe augmented reality and virtual reality platforms in the PepperFry studios that will usher in the next stage of product visualisation for the customer and substantially differentiate PepperFry’s offering from the competition.
  • 15. 15 CHAPTER 3 3. Methodology 3.1 Primary Data  Survey: Customer survey was conducted through online.  Observation: It involves monitoring the respondents’ action without direct interaction.  A sample size of 100 people were surveyed in order to understand customer preference towards method of shopping and their buying behavior. 3.2 Secondary Data The secondary research dealt with gathering relevant data that is already available from various resources such as  Internet  Newspaper articles  Books  Magazines 3.3 Research Design 1. Type of Research design Exploratory research design was used for the product. The main purpose for using exploratory research was to explore the requirements of the consumers. Besides this another objective was to understand the perception of the consumers. 2. Scale selection for questionnaire The scale selected for questionnaire would be likert scale. This scale is selected for the questions which involve understanding of the parameters and requirements of the consumers.
  • 16. 16 3. Questionnaire design Questionnaire includes both open and closed ended questions. Open ended questions are kept for recording the free responses for understanding the shopping behaviour of the consumers. Closed ended questions are kept for recording the price ranges and knowing the buying behaviour of the consumers. 3.4 Sample design a) Target popular on Element: All the age group (Millennial , Gen X , Baby boomers nd Gen z) Sampling unit: online through social networking sites Extent: Tier 1 , Tier 2 and Tier 3 cities Time: Period of survey b) Sampling technique : Simple random sampling was done for our research as we did not focus on a particular group of people. Simple random sampling is the easiest form of probability sampling. All the researcher needs to do is assure that all the members of the population are included in the list and then randomly select the desired number of subjects c) Sample size: The sample size selected for the research would be 100 with all age group
  • 17. 17 3.4 Data collection Tools Data Representation  Pie charts and tables  Bar charts 3.7 Data collection Software SPSS 3.8 Analytical Tool  Cross tabulation.  Chi- square test.
  • 18. 18 CHAPTER 4 4. Data Analysis and Interpretation 4.1.1 Pie-Chart Analysis: 47% Respondents are aware of the term Omnichannel 41% Respondents are not aware of the term Omnichannel. 12% Respondents are not sure about the term Omnichannel
  • 19. 19 Analysis: 87.4% Respondents are Married 12.4% Respondents are UnMarried Analysis: 61.2 % Respondents are Students 26.2% Respondents are Working And Rest of them are falling into Business owner , home maker and other category
  • 20. 20 Analysis: 76.7 % Consumers are prefer to shop from both online and In-store 16.5% Consumers are prefer to shop from In-store. 6.8% only consumers are prefers to shop Online.
  • 21. 21 Analysis: 51.5 % Respondents are living in Metropolitan area. 42.7% Respondents are living in Suburban. Analysis: 31.1% Respondents are not Satisfied with online shopping experience. 27.2% Respondents are neutrally satisfied with online shopping experience. 20.4% Respondents are satisfied with online shopping experience. 11.7% Respondents are very unsatisfied with online shopping experience.
  • 22. 22 Analysis: 66% Respondents are heard about the brand "PepperFry". 30.1% Respondents are not heard about the brand "PepperFry" Analysis: 79.8% Customers are excepting to receive their orders Less than a week. 14.1% Customers are expecting to receive their orders from 1 week to 3 weeks. 6.1% customers are expecting to receive their orders More than 3 weeks.
  • 23. 23 Analysis: 31.1% People are Expecting Online stores to display more reviews in their Website. 22.3% People are Expecting Online stores to display more Comparison of products in their Website. 20.4% people are Expecting online stores to display more videos about the products. Analysis: while shopping in Online 57.3% shoppers are finding difficult to being not able to try out a product . 30.1% shoppers are affected due to late arrival of their delivery. 27.2% Shoppers are finding difficult to return the items through the online shopping.
  • 24. 24 4.1.2 Frequency Table Analysis: Factors Which affects the customers while buying from online/offline store 44.7% shoppers are tend to buy the products due to sales / Discounts. 23.6% Shoppers are tend to buy the products due to the shipping cost and speed of the delivery. 31.% shoppers are tend to buy the products due to its price
  • 25. 25 4.1.3 Cross Table 1. Profession and Method of Online shopping Analysis: From the above Cross tabulation we can clearly see that Students are very much eager to shop from Large Retailer shopping website. Even people who are working also buying from Large Retailer shopping website. Unlike other two category business owner are tend to buy from Market place.
  • 26. 26 2. Area of living and behavior of the Respondents shopping Analysis: From the above Cross tabulation we can clearly see that People who are living in the Metropolitan area are tend to shop / order from their bed (34.34%). Almost all other people who are living in suburban and rural are also ordering/shopping from their home. only 8.08% from Metropolitan , 5.05% from suburban people are order /shopping from their office and only 1.01% from Metropolitan , suburban and rural people are shopping/ordering from retail store.
  • 27. 27 3. Profession and behavior of the Respondents shopping Analysis: From the above Cross tabulation we can clearly see that Students are having the habit of shopping/ordering the products when they are on the bed(43.3%) , All other people like working(9.09%) , Business owner (1.01%) and Home makers are also having the habit of shopping/ordering the products when they are on the bed.
  • 28. 28 4. Area of living and Reason to shop from Retail store over online store Analysis: From the above Cross tabulation we can clearly see that People who are living in the Metropolitan area(31.3%) are wanted to shop from Retail store over online store because In retail store a person can touch , feel and try the particular product before purchasing. followed by metropolitan even suburban(26.6%) and Rural people(4.04%) are also saying the same reason to select the retail shop over online store.
  • 29. 29 5. Area of living and Awareness about Omnichannel Analysis: From the above Cross tabulation we can clearly see that Both the people from Metropolitan and suburban are aware of the concept "Omnichannel", from this we can clearly say that Indian people are aware of the concept "Omnichannel".
  • 30. 30 6. Profession and Method of Shopping From the above Cross tabulation we can clearly see that Students are shopping/ordering the products from both online and offline medium (52.53%) , working(19.19%) but Business owner are ordering/shopping from In- store(3.03%)
  • 31. 31 4.1.4 Chi-square Test H1 : Location of consumers will have an impact on the consumers order delivery time. Hypothesis Significance of the hypothesis is 0.65 which is Greater than the significant value (p) 0.005. Thus, the hypothesis is an alternate hypothesis, which proves that Location of consumers will not have an impact on the consumers order delivery time.
  • 32. 32 H2 : Shoppers' method of buying will not affect their willingness to buy furniture in online Hypothesis Significance of the hypothesis is 0.35 which is Greater than the significant value (p) 0.005. Thus, the hypothesis is an alternate hypothesis, which proves that Shoppers' method of buying will affect their willingness to buy furniture in online
  • 33. 33 CHAPTER 5 5. Findings  Almost half of the population are aware about the concept "Omnichannel" , from which we can say that India is ready to have the Omnichannel method of shopping , Thus PepperFry should improve its Omnichannel with the help of much more new technologies and new innovations.  Majority of the population are already familiar with both offline and online store concept, As the method of shopping is both(76.7%).  Still people are not satisfied with the way of online works , almost 31.2% population are expecting online stores to add reviews so that , they can buy the products easily.  Even though 58.3% population are order/shopping when they are on the bed but 72.6% are wants to try , feel the product which clearly says that people wants both the medium.
  • 34. 34 CHAPTER 6 6.1 Limitations of the study  Very extensive analysis was not possible due to limited time  The project is limited to the 100 Respondents .  Size of the sample is very less  Minimum Number of tests , Hypothesis test are used. 6.2 Scope of Future Study The Scope of further study in this topic is discussed here which was not done due to shortage of time . An extensive analysis can be done in order to extract insights and information from the vast data collection in a better way.
  • 35. 35 CHAPTER 7 7. Conclusion The results of the research shows that independent Online store i.e PepperFry have competitive advantages regarding personal service, products, and product assessment. However, many customers want to experience the product in person and search for information and inspiration about products in brick and mortar store before they shop, even if the actual purchase is made in a online store which means that independent online stores need to have their products for the customers in the brick and mortar store It was also found that customers want more flexibility between channels. For example, purchase online and experience the product in the store.
  • 36. 36 REFERENCE  Vivek Rathi(2017): Think India. Think 'Connected' Retail - Pepper fry , pp. 64 - 69  Jamila El Azhari(2015): Omni-channel customer experience: An investigation into the use of digital technology in physical stores and its impact on the consumer's decision making process , pp. 4 - 6  Lea Margarethe Brandhofer(2016) : The Formation of Customer Experience Through Offline-Online Channel Integration , pp. 8-9  Charu Lamna(2018) : Peppryfry India's Largest Omnichannel Network - Images Retail , pp 66- 70  Chris Lazaris(2014): Exploring the "Omnichannel" Shopper Behaviour , pp. 2  Sandeep kumar & Charu Lamba(2018) : Technology the Greatest differentiator in the Retail Industry, pp. 30-38  Sandeep kumar , Charu Lamba & Surabhi khosala (2018) : Online to Offline -Pure play E- commerce firms go physical to woo consumers , pp. 36-38
  • 37. 37 ANNEXURES 1. QUESSIONNAIRE 1. Age ?  Above 15  Between 24 & 38  Above 38 2. Martial status ?  Married  UnMarried 3. Gender ?  Male  Female  Others 4. Method of Shopping ?  Online  In-store  Both 5. Where do you live ?  Metropolitan  Suburban  Rural 6. How much hours do you spend in Online weekly ?  Below 3 hours  3 to 8 hours  above 8 hours
  • 38. 38 7. where do u shop in online ?  Market place  Large retailer  Web-store  Other(please specify) 8. How often you shop ?  Daily  Weekly  Monthly  Yearly  Never 9. When & Where do you shop online ?  In bed  In the Office  In a Retail store  In the car  Other(if please specify) 10. Which item do you buy at online ?  Clothing, shoes and accessories  Electronics  Beauty and personal care items.  Books , music and movies  flowers and gifts 11.Which factor influences you to buy ?  Sales/Discounts  Shipping cost and speed  Price 12.How satisfied are you with online shopping experience ?  Very satisfied  Satisfied
  • 39. 39  Neutral  Unsatisfied  Very unsatisfied 13.Which factors affect you , while shopping online ?  Paying for shopping  Not being able to try out a product first  Difficult to return items  Waiting for delivery  Unattractive or hard-to-navigate sites  Entering payment info  Not knowing where to search for a product 14.What do you want more of from online stores?  Images  Reviews  Comparisons  Testimonials  Video 15.Have you Heard about the Brand "PepperFry" ?  Yes  No  Maybe 16.Would you like to buy your furniture online ?  Yes  No  Maybe 17.In what period of time do you except to receive your order?  Less than a week  From one week / 3 weeks  More than 3 weeks 18.Which Member of your family usually makes the decision when buying furniture ?
  • 40. 40  Mother  Father  Other(Please Specify) 19.What is the most significant point when you choose household accessories and furniture shop ?  Price of Product  Design of Product  Shop's Location  Quality of Product 20.When shopping, why might you use the retail store? Select one or more of the following  I like too touch , feel and try product before purchasing  I like to get advice from store associates on what products too buy  I like to do research and then find the product online.  I like to browse in store and then order for delivery  I like to collect products that I Have ordered online  I don't like shopping online