The New Indian Express
Chennai, 17 March 2016
of cars, bikes, or gold jewellery can give immense pleasure, but is a
labourious exercise. E-commerce companies are trying to change just
A host of high-value products be it SUVs, cars, diamonds, gold coins, two-wheelers including electric bikes are all up for grabs online. If the likes of Flipkart, Snapdeal or Amazon saw rise in sales of electronics or clothes during their formative years, version 2.0 of Indian e-commerce market is banking big on money guzzlers i.e., luxury products.
“There is more flexibility in terms of the product categories and certainly e-tailers are beginning to exercise that flexibility as much as possible. The reasons are simple: currently, in e-com customer acquisition costs are high, retention is low, margins are thin due to discounts, so any product or service, which can broaden the portfolio and the chances of a successful transaction, increase the value of the transactions happening, or lead the customer away from discount-oriented behaviour are being looked at seriously,” Devangshu Dutta, CEO, Third Eyesight told Express.
“It took them almost a couple of years for ecommerce players to get consumers buy mobile phones online. The current trend of retailing high-value products will help consumers do online research, compare products and make an informed decision on a product purchase,” said Harish HV, Partner – India leadership team, Grant Thornton India LLP.
“As customers are becoming comfortable transacting online, the average ticket size is increasing and high value purchases are rising. Premium brands are also coming online to broadbase their customer base. We see this trend only growing further with increasing smartphone-led penetration of internet,” said a Snapdeal spokesperson.
(Published in The New Indian Express)