6th Edition

The Indian E-tailing Leadership Index April, May, June 2017

New Delhi I Bangalore I Mumbai I New York I Dubai

2011 RedSeer Consulting Confidential `and Proprietary Information
www.redseerconsulting.com Query@redseerconsulting.com |
Contents

A Quarterly Results Q217

B Breakdown Analysis

C ELI methodology

RedSeer Consulting Confidential 1

Player-wise Performance Q2CY17
Q1CY17

Most Trusted Brand Best Value Great Experience

A
m 21 25 49 95 95
a
F
l 22 25 48 95 95
i
P
a 11 23 45 78 80
y
S
n 9 24 44 77 79
a
S
h 5 22 42 66 70
o
E
b 1 23 32 56 68
a

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Overall Industry Trends: Q117 to Q217 Increase Neutral Decrease

30%

25%
29%

25% 24%
20%

21%
20%
15%

10%

5%

Industry NPS
0%

2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2

Rationale

Tied with Flipkart on ELI, with major improvements in Brand recall and
customer support
Flipkart remained constant on the scorecard with only brand recall seeing a
slight improvement in comparison to the last quarter
Snapdeal saw a slight increase in ELI due to an improved brand recall, but
pricing and product variety saw a dip stunting its growth in Q217
Paytm saw a slight dip in the overall score, with consumer NPS being a key
metric of note, seeing another down quarter from Q117
Shopclues saw an increase in consumer NPS, but went slightly down on the
overall score due to a dip in value proposition in Q217
Ebay went down in Q217 suffering the most on ELI, with a large decrease in
consumer NPS and customer support

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Contents

A Quarterly Results Q217

B Breakdown Analysis

C ELI methodology

RedSeer Consulting Confidential 4

 Most Trusted Brand Trends: Q216 to Q217
25 23 23
22
21 21 21
19 19
Flipkart
Amazon
Snapdeal
12 Paytm
10 11 Shopclues
10
9 9 Ebay
8 8
7 7
5 5
4 4
3
4
3 1
2
1
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2

Key Industry Insights

1. The industry hasnt moved too much in comparison to Q117 on most metrics because of a stagnant sales
quarter this time around

2. Amazon has been a steady gainer on Flipkarts lead and has finally moved ahead of Flipkart on ELI

3. Paytm is constantly losing on consumer NPS in the past 2 quarters due to constant changes on the tech end
reducing the customer experience

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 Best Value Proposition Trends: Q216 to Q217

25 25 25 25

24 23
24 23 24 22
20 23
19 22
18

Flipkart
Amazon
14 Snapdeal
Paytm
Shopclues
Ebay

2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2

Key Industry Insights

1. The overall value proposition by a maturing e-tailing industry has converged as players have built up a
significant assortment of products being sold at comparable prices

2. It is expected that business delivery excellence will become the sole differentiator between players in the
industry

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 Great Experience Trends: Q216 to Q217
49 49 49 49
48
45 49 44
41
44 39 41

40
34

30 30
Flipkart
Amazon
25 30 Snapdeal
24
Paytm
26
Shopclues
Ebay

2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2

Key Industry Insights

1. As the industry has shifted focus from customer acquisition to customer retention, focus has increased on
service delivery which is visible across players

2. However, key players have difficulty servicing the operational load generated by sales campaigns, leading to
a decline in overall experience after every sales event

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Contents

A Quarterly Results Q217

B Breakdown Analysis

C ELI methodology

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What does the E-tailing Leadership Index (ELI) measure?

ELI is a comprehensive assessment of overall performance of e-tailers in customers

mind. It is based on the three pillars, which are:

Indian E-tailing Leadership Index

1 2 3
Most Trusted Brand Best Value Great Buying Experience

Most preferred e-tailing brand Maximum value for money Best buying experience from
for the online customers and wider "meaningful product discovery to post
assortment delivery experience

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How is it structured > Most Trusted Brand

E-tailer brand that is most trusted by online consumers

Brand Recall
e-tailer which has the highest top of the
mind recall for most preferred online brand

Unaided Recall
e-tailer which has the highest unaided
recall for the most preferred online brand

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How is it structured > Best Value

E-tailer that provides the best value for money along with meaningful assortment

Price competitiveness
Where would you find the best prices and
discounts available among the e-tailers

Product variety and availability

What are the chances of finding the product
you are looking at among the e-tailers

Quality of products
What do you thing of the quality of product
available on each of the e-tailers

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How is it structured > Great Buying Experience

E-tailer that gives best end to end buying experience

Exploring & ordering products (For web & app)

How easy and intuitive they find product
exploration on the app and websites of the e-
tailers

Delivery predictability and experience

How quick and precise is the overall delivery
How quick is the reverse pick-up in case of
returns

Consumer experience post delivery

How easy it is to return products
Speed and ease of refund
Quality of customer support

Overall NPS
Overall satisfaction of customers with end to
end experience based on NPS methodology

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Methodology Used:

The results of the study is based on the following research themes:

1 ~4500 customer
surveys across 30 cities
(Metro, Tier-I and Tier-II)
2 All respondents have to
be e-tailing customers,
having bought
something from the
3 The survey was split
between the SEC A, B
and C population, with
in April to June 2017 equitable distribution of
concerned websites in
period age group and gender
the last 3 months

4 Statistical technique of
TOPSIS has been
used to arrive at the
indexing from the
5 The study is entirely
based on consumer
perception and works on
a proprietary RedSeer
responses and hard
algorithm
numbers

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Evaluation Parameters and Weights
The analysis is based on 30+ parameters analysed in the three pillars

A. Most trusted brand: B. Best Value Proposition:

Most preferred Brand Product Variety and
to Shop From Availability
Top of the mind 25 25 Product Availability
Unaided Product Variety
Product Quality
Price Competitiveness
Pricing and Discount

50

C. Great Buying Experience:

Web & App Experience Delivery/Cancellations/Returns Delivery
App & Web Delivery Time Refund (Days)
Design & Look Reverse Pick-up speed Customer Support1
Ease of Navigation Ease of Return
Product Description
Check Out Experience Overall Consumer NPS
Payment Gateway Experience

Consumer Experience Post

Notes: 1. Customer Support parameters are measured as Average Wait Time (Secs), First Time Resolution & Escalation

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Notes

Notes:
1. Only the horizontal e-tailers have been considered for this study
2. For Pillar A Higher weightage has been given to "Top of the Mind Recall" over the
Unaided Recall"
3. For Pillar B Price Competitiveness has higher weightage than Product Variety and
Availability
4. For Pillar C App has been given higher weightage when compared to App given that a
larger customer base buys using the App

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Flexible in Approach, Firm on Results

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2017 RedSeer Consulting Confidential and Proprietary Information www.redseerconsulting.com Query@redseerconsulting.com