Assignment
on
E-Commerce website Jabong.com
Submitted to
Mr. Maninder Singh
Submitted by
Himanshu
2K16GA010
20th September, 2017
INDUSTRY
With $681 billion in online retail sales in 2016, China is the largest market for e-commerce
globally, followed by the US, and the fastest growing one is India.
We live in a world where we communicate with each other over mobile phones than we do
face to face. For keeping in touch, shopping, hailing a cab, or ordering food, everything begins
and ends with that smartphone. Market is only getting bigger. According to a new study by
Forrester Research, approximately a fifth of total retail sales will take place online by 2021 in
Asia Pacific, with 78 percent of that coming from mobile, up from 63 percent in 2016. The
study adds that online retail via mobile will grow at a CAGR of 15.6 percent, to reach $1 trillion
in 2020, up from $539 billion in 2016.
Comparatively, Internet and e-commerce penetration is still small in India, so is population and
total retail. So, it is unfair to compare China and India. We will not grow fast enough to take
over China. But India has its advantages in e-commerce. In China, Alibaba took off in the
2000s, when the global economy was not at its best. India entered the e-commerce market after
2010, when the GDP was showing healthy growth, and disposable income was on the rise.
World over, apparel is the largest category for online retail, followed by consumer electronics
and computer hardware. However,
grocery, beauty and cosmetics, home
appliances and furniture are the fastest-
growing categories, showing the
increasing maturity of online shopping in
Asia Pacific.
The Indian customer base is not
homogeneous either some of them are
comfortable paying online as they have
been buying online for 5-6 years. They
want great customer experience
including speedy delivery if not steep
discounts. Then there are bargain hunters, looking or purchasing cheaper products; they dont
care about fast delivery. They have no loyalty and go where they get the best discounts. Indian
e-commerce players, therefore, will have to cater to multiple factors.
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Currently, Flipkart is ahead of US giant Amazon. Flipkart has acquired Myntra and through
Myntra they had acquired Jabong.
INTRODUCTION JABONG.COM
Name: Jabong
Website: Jabong.com
Slogan: Be you
Parent Company: Myntra (Flipkart)
Headquarter: Gurugram, NCR
Jabong.com is something which has really opened up the Indian fashion and lifestyle
ecommerce market and that also in a big way.
Jabong.com was co-founded by Arun Chandra Mohan, Praveen Sinha, Manu Jain, and Mukul
Bafana. It is a young and vibrant company that aims to provide good quality branded products.
Jabong.com caters to the fashion needs of men, women and kids across footwear, apparel,
Jewelry and accessories.
Jabong.com employees strive to achieve the highest level of Customer Satisfaction possible.
Their cutting-edge E-commerce platform, highly experienced buying team, agile warehouse
systems and state of the art customer care center provides customer with:
Broader selection of products
Superior buying experience
On-time delivery of products
Quick resolution of any concerns
MISSION
Our Customer's favorite lifestyle fashion destination and way to shop that compels them to
come back for more.
VISION
To be a leading company, with high brand equity in a Apparel E- retail, offering cost-effective
products and service.
MAJOR CUSTOMER
Their major customers are between the age group of 20-35 years of age and the traffic come
from tier-II cities which form a significant part of their revenue, mostly because they don t
have access to big brands.
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MAJOR BRANDS
CSR
Child Labour
Forced Labour
Harassment & Abuse
Discrimination
Health & Safety
Business Integrity Anti Bribery
PESTLE ANALYSIS
1. Political Factors
The government has allowed 100% foreign direct investment (FDI) in online retail of
goods and services under the so-called marketplace model through the automatic route,
seeking to legitimize existing businesses of e-commerce companies operating in India.
The running online marketplaces are not only barred from giving discounts directly
according to new rules but they may not be able to offer promotional programmes such
as cash-back offers to lure customer.
Another factor affecting online retail is high government investment in National IT
infrastructure which will result in faster, better and more reliable internet access for
national users.
2. Economic Factors
The e-commerce market will account for 2.5 per cent of the India's GDP by 2030,
growing 15 times and reaching USD 300 billion.
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Though the country s retail sector is highly unorganized, organized retailing is growing
at a rapid pace to grab a considerable market share. According to the new research
report, with the growth in organized retailing, the online retail segment is emerging as
a new platform in the market. It is estimated that the online retail market is expected to
grow at a compound annual rate of around 43.8% during FY 2013 to FY 2017.
Online retail has been growing in the country at an unprecedented rate. With the rising
internet penetration and broadband availability, and growing culture of Smartphones
and tablets, people have started buying products online. As per our study, the major
reasons driving the online buying is cash-on-delivery facility, and discounts & offers
provided by the online retailers.
According to a survey on consumer behavior towards online shopping. It revealed that
metros or tier-I cities have more awareness about online retailing as compared to tier-
II & III cities. It was also found that electronic products are most popular among online
buyers. The survey also analyzed buying habits, major reasons for online shopping,
purchase preferences, and spending patterns under different price bands.
3. Social Factors
Culturally, Indians tend to buy the products in physical stores. They want to touch, feel
the product before buying. If the risk associated with product is very high, like in
purchase of Television, Laptop, Washing Machine etc., they tend to go to physical
store, then see the features and if satisfied, will buy the products.
Peers & friends feedback about buying through online website also matters.
4. Technology Factors
Several technological devices like smart phones, laptops, tablets etc. are going to help
this online retail Industry because with the penetration of these devices, Indian
consumers are going to purchase their products online.
Other technology which is going to help this industry is big data and Predictive
Analytics. Since companies can gather the data about their customers when they are
doing business with them, they can use these data to personalize the services by using
predictive analytics.
5. Legal Factors
Rising product regulation
Easing of import and export regulations
Rising environmental protection regulations
6. Environmental Factors
Rising interest in environmental programs
Rising emphasis on business sustainability - the company could implement higher
sustainability standards to further enhance its strong brand image as an e-commerce
organization.
Increasing popularity of low-carbon lifestyles
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SWOT ANALYSIS
Strength Weakness Opportunities Threats
Inhouse logistics Future Cost The Indian Government
arm jaVAS Structure apparel market Involvement
ensures efficient Supply chain of will grow over Growing
delivery and Jabong is not four-fold to Competetition -
reduces third- appropriate. attain a Koovs, Myntra,
party courier staggering size etc.
costs. of $200 billion Product
Availability of by 2025. retailers having
Funds Youth potential strong
Strong investor in India with distribution
backing discretionary network and
Widest spending. 15- brick and
assortment of 34 age bracket mortar stores.
products with constitutes 35%
750 brands, of Indian
more than population.
50,000 products. Growing
Importance in
Market
BUSINESS MODEL
Jabong, backed by Berlin-based Rocket Internet GMBH, a venture arm of the Samwer brothers,
which is known for cloning several successful online business models of the US in other
markets, is reverse-engineering the success formula of Flipkart in India: Add as many
categories as possible; acquire customers at any cost; build a logistics arm from ground up and
delight the customer.
Jabong started in 2011 and has been operating on an inventory model wherein it sources its
products directly from the brands and stores it in its warehouse. This has allowed it to build its
customer base by offering super-fast delivery.
Flipkart owned Myntra acquired Jabong from Global Fashion Group for further strengthens
Flipkart Group.
Jabong.com follows both an inventory model and a managed marketplace model. In the
inventory model, products are sourced from brands and stored in the Jabong warehouse. In the
managed marketplace model, Jabong provides marketing, logistics and delivery.
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BUSINESS VALUE
Jabong is one of the most trustable online retailers in India to shop all your fashion needs,
featuring the top brands and private label brands it came to life in the year 2012, Not to forget
its now owned by the biggest online store in India Flipkart, below are the 10 reasons why you
should try Jabong right now to pick your fashion essentials.
1. Jabong has a huge variety of fashion branded products to pick from, which include Puma,
adidas, Steve Madden to name a few,
2. Jabong is known to deliver the products on time or within time in a good packaging
condition, with proper invoice details,
3. Jabong, has an amazing customer care team, who deal with post sale concerns,
4. Jabong over the years, have diversified in different categories as well which include travel
backpacks, sports and more,
5. Since its a Flipkart entity, it has some fabulous offers from Phone Pe as well, so make sure
to enjoy these benefits,
6. Jabong provides huge discounts on big brands such as Puma, Crocs, Wrangler and others,
7. Jabong is known for providing the latest fashion to all its users, so shop all the latest trends
with a few clicks,
8. Jabong keeps its users occupied by bringing up brand day sale or cashback sale and more,
9. Jabong works on the quality check of every product delivered and has a standard process
to do so,
10. Ultimately! The most important focus has always been on customer satisfaction which is
the key to its business.
JABONG MARKET SHARE STATISTICS & RANKING
As, we can see Jabong is at 62 country rank behind Myntra and at 14 shopping (clothing)
website rank. This shows that Jabong has greater potential to target even larger customer
segment.
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Most of the people had preferred Jabong directly, as they must have experience the quality
service they are providing. Even people had visted website through searches.
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This shows that Jabong has tuff competition, as many of these websites have loyal customers.
Most important for any ecommerce website is to retain customer and amazon & flipkart has
already had footprints in customer retention. So, to match the competition Jabong has to come
up with the plan to retain and attract more potential customer.
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COMPETITIVE ADVANTAGE JABONG VS MYNTRA
Jabong and Myntra both are the top Indian online fashion stores and have a good collection of
the products, accessories etc. The comparison of both is as follows:
Products Availability:
Comparing Jabong and Myntra on the basis of availability of products on both the websites/
online e shopping stores, both have a wide range and variety of products available for their
customers. Jabong is having all the branded products while Myntra is having some other good
brands as well which are not too expensive like the products available on Jabong.
Cost of Products:
Cost of the products is amongst one of the major parameters that attracts or diverts the
customer. If most of the products are costly than the normal price, the customer will obviously
get diverted but those who want just the brand product will not be affected. So, on this
parameter Jabong has the products which are expensive while Myntra has the products of
medium range which a normal person with a fair income can afford.
Brand Availability:
Both the online shopping stores i.e. Jabong and Myntra have a good collection of almost each
and every brand so that the customer need not to switch to another online shopping store due
to unavailability of any of the brand products. The top brand products available commonly on
both of the online shopping stores are Nike, Duke, Wrangler, Peter England, Arrow, Calvin
Klein, ZOBELLO, UCB (United Colors of Benetton), NEXT, RAY Ban, MTV, Polo, Jockey,
TOMMY HILFIGER, DIESEL, TIMEX, U.S. POLO and many others.
Latest Stock of products and Brands:
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latest is what a customer always expects while purchasing something. So, a latest collection of
the brand products always attracts the customers. On this parameter, both the online shopping
store have the same rating as both of these update their stocks and product timely and regularly
which the customer always loves and thus checks-in the store for the new arrival from time to
time.
Service to Customer:
when the customer purchases something from any of the shop or online shopping store, he/ she
always expects his order within a few days and even within 3-5 days. So, Service to customer
factor becomes important for the online shopping stores if they want their customer back to
their store again. On this parameter, both i.e. Jabong Customer Care and Myntra are good
however Jabong is better than Myntra for delivering the order within 5 working days according
to customers reviews while Myntra takes 5-7 working days to deliver an order to its customer.
Conclusion:
Jabong and Myntra both are the tough competitors to each other and have a fair no. of regular
customers. Observing both on parameters like service to customer, latest stock of products and
brands, Brand products availability, cost of products and products availability, Myntra is found
to be better than Jabong however it was not easy to decide but some of the factors like customer
satisfaction, reviews supported Myntra to win the race.
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MARKET STRATEGY
Marketing deals & offers through Facebook has been proved very effective as Jabong already
have made a good reputation in the market. Jabong has been very clever with the way they post
content on their Facebook page. They post something that is trending these days like recently
they posted Sanya Mirza & Martina Hingis picture celebrating their victory in Wimbledon and
before and after that some promotional offers.
The strategy is an indirect approach but they have been using it for a while and it has got quite
a response. They have also launched an online contest JabongVelfie contest where they are
giving away vouchers worth INR 3000 and only in a couple of days it has got 110 likes and 72
comments and people are sharing it at the same time helping Jabong to spread the word and as
we have seen earlier the way they use the latest trending things as a way to get attention of the
buyers. In the same way, they have used hashtags to gain attention of the people as they know
that Indian audience is always looking for a way to show peers that they know about the latest
trending stuff. This shows how very interestingly they have created an urge in buyers
particularly youngsters.
They pay special attention to the registered users through their E-mailers. These E-mails sent
are based on what customer has bought earlier and items he/she have marked or starred. The
E-mailers in a way talks to the customer and creates an urge to check out the offer or deal which
takes them to the website.
Currently Jabong is running The Big Billion Day (20th 24th September,2017) providing
discounts of 50-80% off to attract and retain customer.
They also have tied up with Foodpanda to provide discount for exchange of new customers.
As you can see Jabongs Facebook page currently have 4.2 million likes which helps the entity
to get a heavy footfall on their website.
They pay special attention to the registered users through their E-mailers. These E-mails sent
are based on what customer has bought earlier and items he/she have marked or starred. The
E-mailers in a way talks to the customer and creates an urge to check out the offer or deal which
takes them to the website.
JABONG GROWTH RATE
Jabong expecting 40% growth in business in 2017-18 on account of expansion in product
range, marketing investments and additional features in its mobile application.
Jabong will invest in expanding range of products to give consumers more options to buy, make
mobile application more engaging and invest in marketing to create more awareness among
consumers about the brand.
The apparel category contributes around 45 per cent to the Jabong business, followed by
footwear around 11-12 per cent. Talking about competition mainly from established business
houses like Reliance Jio's Ajio fashion application and Aditya Birla group's Abof, Taneja said
that companies which will understand their consumers will win.
Jabong is not burning capitals anymore and looking to EBIDTA break even (indicator of cash
flow) by March 2018.
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Jabong operates on the basis of campaigns and gets fund for executing the campaigns once they
are finalized. Cricketer Yuvraj Singh during the launch of his YWC Fashion products on
Jabong said, "Social media has become very popular. Its easier to shop online.
The world is evolving." Jabong is also working on offline strategy to sell YWC apparels and
plans to open first retail stores in Delhi or Hyderabad during upcoming IPL season.
WEBSITE
PRODUCT RANGE
WOMEN
Western Wear - This category of clothing is basically for younger mass. Western wear
purchase considerations are comfortable generally to update the fashion or style going
on. Moreover, maintenance of western wear is quite low. Hence is more convenient. As
it is for younger mass the price need to be less.
Ethnic Wear - This category of clothing is basically for working mass or homemakers.
Ethnic wear purchase considerations are biased generally to retain the tradition yet look
classy. Further maintenance is little high but is convenient and has better durability.
Ethnic wear can be purchased of all price ranges according to the requirement.
Lingerie and Nightwear - This category of apparel is basically for women comfortably
can watch out for the products in this section. Purchase considerations of this section
are basically the fit, shape and comfort.
Summer wear and winter wear - Purchase considerations are comfort according to
weather clothing.
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MEN
Clothing - This category of clothing is generally for men with a wide clothing range
and price range. Purchase considerations can be comfort, fit and style. Clothing for men
is generally low maintenance.
Denim Section - This Section Is an addition to the clothing section only specified to
denims. Basically, this section is auto customized for being easily accessible for
anybody who is interested to buy denims.
Summer wear and winter wear - Purchase considerations are comfort according to
weather clothing.
KIDS
Boys and Girls Clothing - This category of clothing is for age group from 0-16. Boys
clothing purchase considerations will generally be the quality, durability and the fabric.
Moreover, people tend to be choosy for this category particularly as it is for the kids
and their preferences.
BRANDS
Over 1700 Brands are featured on Jabong. Ranging from economy brands to high end
designer brands. Generally, the buy is from a nominal brand as the massive culture of
online shopping is for the middle class and they prefer good quality, cheaper price and
good fit at a same time. Whereas the higher middle class go for premium brands as they
get at a better price probably cheaper than buying it physically from the stores.
SPORTS
This category of clothing is basically for people interested in sports, gym, working out,
cardio Whereas also for passive sports such as supporter of their favorite cricket or
football team. Also for the people who want low maintenance clothing as generally
sportswear is made out of polyester which is known for its durability and low
maintenance.
SALE
The day after Christmas is the first day of the best sales week of the year for clothes.
During other seasons, Thursday evenings are the best time and day of the week to buy
clothing especially about six weeks after items arrive in stores. If clothes havent
sold about six weeks after they arrive in stores, managers start lowering the prices.
These sales often occur as part of weekend sales, which often start on Thursdays.
January or February. The vast majority of people who need winter coats have them by
then, so coats and other winter clothes often go on sale starting in January.
PAYMENT PROCESS
After we decide what product we want to buy, we get an option to select our size (a size chart
is also available). If we don't want to purchase that product right away, we have an option to
save the product for later by clicking SAVE FOR LATER button. This will get saved in our
saved list. If we want to purchase that product, we click on ADD TO BAG, and that product
goes to our bag.
In the bag, we get options to:
Save the product for later
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Remove the product
Edit the quantity of the product
Gift wrap your order
Apply coupon (if applicable)
Place order
After placing the order, we get the following options:
1. Login id
2. Select address
3. Review order
4. Make payment
a. CREDIT CARD
i. Card number
ii. Month of expiry + year of expiry
iii. Name on card
iv. CVV code
v. Save this card
b. DEBIT CARD
i. Card number
ii. Month of expiry + year of expiry
iii. Name on card
iv. CVV code
v. Save this card
c. NET BANKING
i. Select from popular banks - axis, city, hdfc, icici, kotak, sbi
ii. Other banks
The transaction is done through PayU India.
CASH ON DELIVERY
Rs.49 is taken as convenience charge for cash on delivery
We need to verify our mobile number to process the order
Then the number is verified by entering 4-digit code
Or the order is confirmed by call.
WALLETS
Payumoney
Paytm
Mobikwik
Ezeclick
Airtel money
After choosing the payment mode, and completing the payment process, our order gets
confirmed.
PROS AND CONS OF BRICK AND MORTAR
PROS
Numerous option.
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Face to face communication.
Touch and feel product.
Direct and less confusion.
Easy to get and return the product.
CONS
Not all stores accept all modes of payment
Parking issues.
Price issues.
Wait in queue at the cash counter.
PROS AND CONS OF ONLINE SHOPPING
PROS
Convenience
Better price
Variety of products
Discounts
Send gifts
Fewer expenses
Comparison of pricing
Compulsive shopping
CONS
Physical feel of items missing
Out of stock problem
Delivery risk
Mishandling while shipping
Shipping charges
Online fraud
Web crime
Dull shopping experience
Online connectivity issues
Takes a lot of time
Fit issues
Appearance not exact as shown
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RECOMMENDATIONS
After the entire study and comparison between brick and mortar and e-commerce, we would like
to recommend brick and mortar stores to customers for shopping. Through the course of the project,
we have gathered the following points to prove the same:
We get the products immediately in our hands.
Payment is done face to face so there are no worries of misplacement of the money.
Fit can be tried well.
Comparing of two or more garments is possible by making trials in the fitting room to finalise
the garment desired to purchase.
The product can be felt and seen live before purchasing.
We are scared of purchasing costlier products online because of quality assurance issues.
Salesman suggests and lets us know the customer reviews and trends.
Shopping at brick and mortar stores become an outing as well.
We don't need to give the tax and delivery charges differently.
Trusted for sure, we receive the product.
We don't have to wait for the delivery time as it is very uncertain when exactly the product will
arrive.
Lights during photo shoot give an illusion about the color when product is delivered it
disappoints customer at the color or appearance of the product might be different from what
was displayed thus all these are not the case in brick and mortar stores.
Many times, web due to web crime people hesitate to pay by card online whereas offline there
are no such issues.
Online transactions depend greatly on the server and internet connection. If anything fails,
transaction gets stuck in between, i.e. you get charged without getting the order confirmation.
When we purchase from online store, we are not sure of the genuine product.
Many times, size charts are not appropriate whereas no such things happen in offline shopping.
Any defects or disappointments is attended by the brick and mortar store immediately whereas
a long wait is required in the online shopping.
Another major benefit for brands that operate brick-and-mortar stores is the way in which
consumers spend their money while shopping. 40% of shoppers spend more than they had planned
to while shopping in stores, while only 25% of shoppers do so when shopping online. Beautiful
storefronts and point-of-purchase displays can strongly influence customers to make an impulse
purchase, and are much harder to ignore than online ads.
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REFERENCES
https://www.jabong.com/about/
https://www.similarweb.com/website/jabong.com
ET Articles, 2015 2017
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