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Modern Marketers' Guide to Connected Consumer Journeys AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE MODERN MARKETERS’ GUIDE TO CONNECTED CONSUMER JOURNEYS Powered by Foreword and marketers to quickly understand and adapt to these changing dynamics. The playbook of the past decade – a combination of network effects of a platform and massive funding, creating the 800 pound gorilla’s in the space - can and should be challenged by more customer focused, perhaps narrower, verticals that can design Mr. KRS superior customer journeys. The ability to Jamwal acquire customers at a lower cost, by virtue of delivering a superior customer journey, is Executive Director, often under-appreciated as a competitive Tata Industries Limited advantage. Cloud and SaaS tools are going to A decade from now, it is likely that 2020 lower entry barriers for those platform and 2021 will be remembered not only for entrepreneurs who wish to re-imagine the distress and disruption caused, but also customer journeys to provide delight to for the transformation of several aspects of consumers. our lives. Research indicates that global Additional sources of differentiation could be digital adoption has been accelerated by customer journeys that leverage cutting edge about 3 years, yet the impact of nearly a technology to retain the merits and best billion people added to the digitally literate practices of the offline world and seamlessly is perhaps yet to play out fully. overlay or integrate digital content and From a customary online presence to manage the transition - creating a truly actively driving customer journeys digitally, Phygital® experience for customers. companies and brands are moving to a full Creating such an omnichannel presence, embrace of online and digital. Significant launching verticals that provide for better shifts in consumer behaviour across age designed customer journeys, blending online groups and demographics, and rapid and offline (O2O) shopping experiences for changes in preferences are perhaps the new consumer convenience and delight are some normal, making it imperative for brands of the key areas of discussion in (virtual) boardrooms. AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE Marketers of today have a very interesting presence, launching verticals that provide for challenge and opportunity. As against better designed customer journeys, blending legacy marketing – involving extensive and online and offline (O2O) shopping fairly static “marketing calendars” that experiences for consumer convenience and often ran for 6 months – marketing plans delight are some of the key areas of of today need to be far more agile and with discussion in (virtual) boardrooms. a rapid feedback loop. In addition, Marketers of today have a very interesting Marketers need to learn to go beyond mere challenge and opportunity. As against legacy advertising and promotions, to finding marketing – involving extensive and fairly creative ways to broadcast the views of static “marketing calendars” that often ran their loyalists and advocates, whether for 6 months – marketing plans of today through e-commerce platforms, chat rooms need to be far more agile and with a rapid or commentary in social media. feedback loop. In addition, Marketers need to This playbook on ‘Modern Marketers learn to go beyond mere advertising and Guide to Connected Consumer Journeys’ promotions, to finding creative ways to examines the market landscape and trends, broadcast the views of their loyalists and and captures the nuances of consumer advocates, whether through e-commerce purchase patterns, pre-purchase trends & platforms, chat rooms or commentary in insights, and the 3Vs – Vernacular, Voice & social media. Video. We believe this coverage will help This playbook on ‘Modern Marketers Guide organizations and marketers navigate this to Connected Consumer Journeys’ examines complex yet evolving digital landscape, the market landscape and trends, and help marketers understand the consumer captures the nuances of consumer purchase better and take their steps towards patterns, pre-purchase trends & insights, and redefining their customer engagement the 3Vs – Vernacular, Voice & Video. We experience. believe this coverage will help organizations Additional sources of differentiation could and marketers navigate this complex yet be customer journeys that leverage cutting evolving digital landscape, help marketers edge technology to retain the merits and understand the consumer better and take best practices of the offline world and their steps towards redefining their customer seamlessly overlay or integrate digital engagement experience. content and manage the transition - creating a truly Phygital® experience for customers. Creating such an omnichannel AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE LANDSCAPE AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE GROWTH IN E-COM Top of the funnel for India’s online user base is expanding rapidly. S A L E S G R O W T H . PAN India annual India - Online Funnel Over Time online shoppers ( Mn ) As % total internet user Internet 600 500 100% users Online 90% 500 transactors 75% Online Online 350 70% shoppers transactors 400 300 50% 46% 46% Online shoppers 150 200 25% 50 100 0% 0 CY15 CY20 CY25F CY30F 2015 2020 2025f 2030f < SOURCE: Redseer report AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE GROWTH IN E-COM Online retail in India has grown India online penetration significantly in the last 5-6 years... is currently only Detailed ahead 5-6%; however, CAGR between 2015-20 is among the highest 4-5X globally at [2020] 35-38% [2015] 50-60 indicating significant 10-15 future potential Market size in USD Bn online retail market size estimates include both products & services; alcohol and tobacco, automobile purchase and telecom services excluded from overall consumer spending 2020 Online Retail penetration 25-30% 20-25% 13-16% 8-11% 5-6% 3-4% <25% CAGR 2015-20 >25% CAGR 2015-20 < SOURCE: Mckinsey report AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE GROWTH DRIVERS Increasing disposable income Growth in ~5% CAGR increase in average household Internet users disposable income from 2015-2020 India has witnessed ~20% growth in its internet base from 2015-2020 Changing Reduction consumer behavior Consumers are increasingly becoming more in data prices “digital” The behavioral shift is mainly caused Data prices have gone down by 80-90% by COVID disruption since 2014. This has led to increased affordability AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE CATEGORY GROWTH Travel, transport & tourism and consumer Total online retail market appliance and electronics contribute 50-60% in India is of this i.e 31-33 USD Bn; both categories have 50-60 USD Bn; the highest ecom penetration i.e 30%+ ~60% of this comes Categories like Grocery, Education, Health from products, remaining and Home & living contribute only 9-13 USD from services Bn to overall online retail, with <3% category penetration Online retail Category Ecom Market size ( Bn $ ) penetration Total Online 5-6% Retail 50-60 Travel, transport and Tourism 1 17-18 31-33% Consumer appliance and electronics 2 14-15 31-33% Apparel and footwear 3 7-8 5-6% Entertainment, lifestyle and food 4 7-8 10-12% Grocery 5 -3-4 0.5-1% Education 6 -2-3 2-3% Health 7 -2-3 1-2% Home and Living 8 2-3 1-2% 1. Transport services (cabs, airlines, railways, bus), tourism 5. Grocery foods, Home and Personal Care, Staples, Fresh, and lodging Super Fresh 2. Mobile phones, TV and other home electronics, large 7. Products, Services (consultation, admission etc) and and small electronics, laptops and others Diagnostics 3. Footwear, apparel (men, women, kids), sportswear, 6. K-12, Higher Education and Vocational accessories and jewelry 4. Audio visual entertainment, live events, gaming, fitness, 8. Home improvement & gardening, home ware & restaurants and food delivery furnishing, pet care, housing services, essentials AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE E-COM FUTURE The online retail market is set to become 3x in next 4-5 years mainly driven by under penetrated 3X categories like grocery, education, health [2025] [2020] 170-180 50-60 Projected CAGR, 2020-25 Total Online 24-25% Retail 170-180 Travel, transport and Tourism 38-40 17-18% Consumer appliance and electronics 29-31 15-16% Apparel and footwear 25-27 28-19% Entertainment, lifestyle and food 24-26 28-29% Grocery 21-23 46-47% Education 9-11 30-31% Health 10-12 35-36% Home and Living 11-13 33-34% AMMP C O M M U N I T Y ACCELERATING MODERN MARKETING PRACTICES E-COMMERCE COUNCIL INITIATIVE Author Article Built for SPEED: Sushmita Balasubramanium eCommerce, the Commerce & CX Domain Lead - South Asia, Insights Division, emerging Hero in Kantar customer centricity The pandemic has brought a consumer tsunami 10 said that customer centricity is essential to in its wake. Businesses are witnessing driving business growth. Interestingly, just 1 monumental shifts in consumer behaviour. in 3 Indian customers perceived their brands Consumer journeys are changing, and to be customer centric. The gap today is likely consumer fidelity can no longer be taken for to be larger; most businesses are just about granted. Understanding how consumers’ developing their plans for a post pandemic priorities have evolved basis their experiences world. over the last year and addressing their new However, there is a silver lining. Granular needs through a customer centric approach will understanding of customers today is easier determine how well loyalties are cemented. with the accelerated pace of adoption of digital The importance of customer centricity was media.
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