Saturday, 14 February 2015

Titan: Integrating E-commerce into the offline model - AlokedeepSingh

How does an ecomm play work for a company with a dominant physical distribution?  Well its different. 
E-commerce in Titan is not just about servicing India, but also Indians cross border. Since they don’t have the backing of valuation money,they take the business checks and balances very seriously- for example, their returns are about 3% as compared to industry averages of 30-40%. 
Also ,since their brands advertise, their ecomm play off their pull rather than spend own marketing money. They also don’t discount overtly…They also have concepts like “shop on line and pick up instore”- allowing them to leverage their physical presence.
Their largest infra cost is tech, which gets amortised over time- its more economical than setting up a store. They also ship to a limited set of places beyond store presence in upcountry areas. 
In online and offline integration people assume its the front end that needs integration (store front end+ devices). The biggest integration point is inventory- once thats done, the front ends are easy to build. 
They are also experimenting with i-beacon pilots and other online to offline pull models, but many of these are in the wait-and-watch mode.
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