RedSeer E-tailing Leadership Index - Q3 FY16

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Information about RedSeer E-tailing Leadership Index - Q3 FY16

Published on December 29, 2016

Author: RedSeer


1. Query@redseerconsulting.com2011 RedSeer Consulting Confidential `and Proprietary Information© |New Delhi I Bangalore I Mumbai I New-York I Dubai The Indian E-tailing Leadership Index Version 3 Aug – October 2016

2. 1RedSeer Consulting Confidential What does the E-tailing Leadership Index (ELI) measure? ELI is a comprehensive assessment of e-tailer’s overall performance in customer’s mind. It is based on the three pillars, which are: Indian e-tailing Leadership Index Most Trusted Brand Most preferred e-tailing brand for the online customers Best Value Maximum value for money and wider "meaningful assortment” Great buying Experience Best buying experience from product discovery to post delivery experience 1 2 3

3. 2RedSeer Consulting Confidential 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

4. 3RedSeer Consulting Confidential 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

5. 4RedSeer Consulting Confidential 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

6. 5RedSeer Consulting Confidential The results of the study is based on the following research themes: Methodology Used: 6000 customer surveys across 30 cities (Metro Tier-I and Tier-II) in August to October period All respondents have to be e-tailing customers, having bought something from the concerned websites in the last 3 months The survey was split between the SEC A, B and C population, with equitable distribution of age group and gender 1 2 3 Statistical technique of TOPSIS has been used to arrive at the indexing from the responses and hard numbers 4 The study is entirely based on consumer perception and works on a proprietary RedSeer algorithm 5

7. 6RedSeer Consulting Confidential Evaluation Parameters and Weights 25 25 50 Most preferred Brand to Shop From • Top of the mind • Unaided Product Variety and Availability • Product Availability • Product Variety • Product Quality Price Competitiveness • Pricing and Discount • App & Web – Design & Look – Ease of Navigation – Product Description – Check Out Experience – Payment Gateway Experience Delivery/Cancellations/Returns • Delivery Time • Reverse Pick-up speed Consumer Experience Post Delivery • Refund (Days) • Customer Support1 • Ease of Return Overall Consumer NPS Web & App Experience A. Most trusted brand: B. Best Value Proposition: C: Great Buying Experience: 1 Customer Support parameters are measured as Average Wait Time (Secs), First Time Resolution & Escalation The analysis is based on 30+ parameters analysed in the three pillars

8. 7RedSeer Consulting Confidential Player-wise Performance 97 95 75 74 58 56 23 21 7 10 4 2 25 25 24 24 22 24 49 49 44 40 32 30 F l i… A m a… P a y… S n a… S h o… E b a… Most Trusted Brand Best Value Great Experience 97 94 71 75 59 55 Q3 2016 October 2016

9. 8RedSeer Consulting Confidential Overall Industry Trends: Q2 to Q3 Rationale • Gained from an already strong position to retain top spot; increase in Brand Recall metric & a slight decline in Delivery Time, usually the case with GIFS • Closed second with large gains in all parameters; high marketing spend resulted in a upward tick with gains in Brand Recall & highest industry NPS • Most improved e-tailer with significant gains in Overall Experience and a marginal gain in NPS • Rebranding & marketing spend had a positive impact on Brand Recall which explains the higher October score, but unable to service demand effectively • Maintained previous position; upward tick in Post Delivery Experience cancelled out by downward movement of Brand Recall • Maintained previous position with slight reduction in Experience and an upward movement in NPS • The industry has moved upward over the last two quarter, (reflected in the higher NPS score), but has suffered from increased customer expectations • Q3 NPS metrics were impacted in the short-term by the Great Indian Festive Sale (GIFS), held over a 5-day period in October 17% 29% 25% ELI 1 ELI 2 ELI 3 Industry NPS Same as Q2 Up from Q2 Down from Q2

10. 9RedSeer Consulting Confidential The Great Indian Festive Sale 0.1 0.7 1.10.9 1.0 1.3 0.02 0.1 0.8 Notes 1. The numbers compared are: Singles’ Day for China, Cyber Monday for USA and 5-day total of the Festive Days (typically October) 2.9 13.8 ~5-6 • China registered a 50+% y-o-y growth in 2016, the 7th year since the first Singles Day in 2009, despite a base >60x that of India, whereas USA is clocking a steady 20+% y-o-y growth • India is expected to grow at a slower rate than China at ~45% CAGR to reach US$ 4.9 billion by 2020, 7 years from the first edition of the Great Indian Shopping Festival in 2014 Year 1 Year 2 Year 3 Year 7 Great Festive Sales (GFS) – E-tailing GMV1 (USD Billions) 6.6% 0.7% 0.7% ~6% 0.8% 2.4% 2014 2009 2009 2015 2010 2010 2016 2011 2011 2020 2015 2015 GFS GMV as % Annual GMV Year 1 China First year of Singles’ Day (2009) India First year of that GISF (2014) USA 2009 to maintain comparability 2.9% 0.4% 0.0% 5.5% 0.6% 0.2%

11. 10RedSeer Consulting Confidential 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

12. 11RedSeer Consulting Confidential Query@redseerconsulting.com2016 RedSeer Consulting Confidential and Proprietary Information© Flexible in Approach, Firm on Results Thank You ! For any requests please write to us at – Bangalore Office: #898 2nd Floor 80 ft Road Koramangala 6th Block Bangalore – 560095 Mumbai Office: 25/b 4th Floor Usha Sadan Near Colaba PO, Colaba Mumbai - 400005 Delhi Office: Inhwa Business Centre Ground Floor, Iris Tech Park Sohna Road, Gurgaon, India - 122002 Dubai Office: 42Seer Technologies FZE, G-D-Flex G089 C-Thub, Dubai Silicon Oasis, Dubai, UAE

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