In an informative session, Mr. Abhishek Kumar, spoke about E-commerce and the operations of Aditya Birla Online Fashion Pvt. Ltd. The company was launched in September/October 2015 and aims to be a sustainable & profitable e-commerce firm. It is an online e-commerce portal which aims to enrich its customer experience. Its online sales account for 85% of its total sales. He explained how the company adopts a business strategy of ‘Differentiation’ rather than ‘Discounting’ which might be preferred by bigger players in the market. He shared some interesting insights regarding this like how customers have access to services like Virtual trial room, on-the-spot alteration and direct communication with the designers.
Moreover, their differentiation approach is also reflected in their recruitment process. Rather than simply visiting various campuses, they believe in hiring candidates who demonstrate the requisite skills by sponsoring various case study competitions & presentations. Also, the functional heads prefer to attend a short 2 day course at a B school, thereby being a part of classroom learning. The company also plans to launch offline stores in Bangalore & Gurgaon. It also has a good system to deal with failed delivery occurrences. Further, he described how they discovered through consumer research that it is the potential customers in Tier 2 and Tier 3 cities who are actually less price sensitive than their counterparts in metros & Tier 1 cities. This understanding helps them to better identify their target audience and advertise accordingly. Further, he explained how they tie up with Google & Facebook for their online sales. In his concluding remarks, he shared that the company uses staffing mechanisms to tackle increased sales volume during peak seasons, a challenge which similar companies face often.