Consumers Look Online For Discounts, Not Convenience: Gaurav Dua, Relaxo

Projected to display a robust growth represented by a CAGR of 8.28% during 2020-2025, the Indian Footwear market marks itself as a sturdy sector. Increased inclination towards premiumization, the rise of the middle-income group, increase in literacy rate and the shift to branded footwear from the unorganized and unbranded footwear remain its key growth drivers. 

It is interesting to note that under this segment, ecommerce and women's footwear are estimated to experience the highest market growth over the forecasted period, primarily because of the increase in penetration of internet services and increasing participation of women in labour market. Also, this is supported by escalating investment being pumped by the leading manufacturers of footwear, in order to access a larger consumer base.

Post-Pandemic Reverberations

Giving us a sense of how the past year panned out for the industry and some key traits to the brand’s ecommerce presence, Gaurav Dua, Executive Director - Sales & Marketing, Relaxo shares that the open footwear segment has seen almost 100% growth due to lockdown and that the B2B market is also flourishing. “Earlier we were present only on Amazon & Flipkart.  Now, we have made our presence on other ecommerce portals such as Myntra, Tata Cliq, Paytm, Ajio. Also, Tier 2 and Tier 3 markets have started growing and order percentage from these markets has started picking up.”

Talking of following a dual model of being present on pureplay ecommerce channels and having an ecommerce channel of its own, Dua feels that brands need a mix of both of these routes. While the earlier focuses heavily on traffic, brands can give a personalized brand experience to the end consumer through their own website.

Also, for better ecommerce delivery to Tier 2 & 3 cities, Dua suggests that this can be done by shipping orders from brand’s or distributor’s regional warehouses / local depots leading to a lower shipping time. Also, order fulfilment can be done by opting for ‘fulfilment through the portal’s warehouses’.

From a more consumer perspective, the pandemic has evidently reshaped how they interact with a brand online. Though there is a visible mindset shift of consumers from offline to online, they still look online for discounts rather than convenience, observes Dua. 

“Earlier demand was restricted to metros, but post lockdown, the approach of consumers at Tier 2 and Tier 3 cities has changed and they are also coming onto this platform for shopping. Ecommerce is now being looked at as a channel for convenience and there is a gradual shift from the lookout for discounts, especially for categories like groceries. More and more big retail chains, such as Reliance, are now taking this route of ecommerce channel for growth and increased consumer reach,” he adds.

Owing to this changed consumer behaviour, Dua highlights the impact this will have on the investments earmarked for their ecommerce presence and marketing in the year ahead, “To control and compete with competitor brands on heavy discounts at portal, we are looking forward to more investments in the form of marketing through participation in various events.”

The Road Ahead

Expounding the challenges faced by ecommerce companies in India, Dua agrees that a return as high as 30 – 35% is a major obstacle. Further, due to the presence of unauthorized sellers, the probability of counterfeit products increases, which is again concerning. 

However, green shoots in the sector are prominent, as social commerce has become a big platform for branding and customer engagement. It is also an opportunity for the growth of small sellers.

Jotting some key trends emerging in this space over the next few years, Dua concludes, “Quicker delivery timelines such as 60 minutes delivery; new ecommerce websites, especially for localized or curated shopping experience; evolution of omnichannel shopping and; B2B channel will see growth.”