We covered B2C Digital Marketing Strategies in our last week’s blog, in this week’s Blog we will share some B2C Business Examples – which will show you different businesses which are very successful in the B2C space & also their business models.
Let us first look at some stats of the e-commerce industry in India projected from 2016 through 2022 as per Statista
Retail e-commerce sales in India from 2016 to 2022 (in million U.S. dollars)
As you can see from the above graph every year the Retail E-commerce sales are increasing by around 6000 Million US Dollars.
So if you are planning for a business don’t ignore the space of Retail E-commerce in India.
Let us now look at Top 3 B2C business models.
These are E-Commerce platforms that don’t manufacture or sell their own products, they are only aggregators & they provide a platform for vendors to sell their products on.
The manufacturing of the products & service is to be taken care by the vendor whereas the Aggregator provides for the marketing.
Sales of the products happen as the end customer is willing to trust the Aggregator to provide them with quality products.
One of the best examples of “Aggregators” Business model which has been growing steadily over the past few years is “Amazon”.
Source – amazon.com
The internet giant was responsible for about 44 per cent of all U.S. e-commerce sales last year, or about 4% of the country’s total retail sales figure, according to One Click Retail, an e-commerce analytics provider.
One Click Retail found the fastest-growing product groups on Amazon.com in 2017 were luxury beauty (up 47 percent from a year ago), pantry items (up 38 percent), grocery (up 33 percent) and furniture (up 33 percent).
Source – cnbc
“Every major trend we see across 2017 can be explained by the fact that more of Amazon’s core demographic (millennials) are growing up: they’re increasingly owning homes, raising children, and buying a TON of stuff to go with it,” One Click Retail CEO Spencer Millerberg wrote in an annual review of Amazon.
This is no wonder as we have been talking about “Millennials” & the shift in marketing strategy which will have to include digital for your brand to be relevant for them. Read more about “Digital Strategy”
Source – Forbes.com
No wonder Jeff Bezos founder of Amazon is now the richest person in the world beating Bill Gates & Warren Buffet to the race & as per the above trend might continue to be the richest person through 2022.
2. Learning System Platforms
The Second Biggest Trend in the B2C Business that is catching up is the advent of Learning System Platforms enabling people to learn any skill on the go like Lynda, Udemy, Coursera etc.
As per Statista, (statista.com)
Projections show the e-learning market worldwide is forecast to surpass 243 billion U.S. dollars by 2022. In 2016, the self-paced e-learning product market amounted to 46.67 billion U.S. dollars and is projected to decrease to 33.5 billion U.S. dollars in 2021. A considerable share of faculty worldwide has shown a willingness to support less traditional and digital education models. About 65 percent of faculty supports the use of open educational resources (OERs) in teaching, and 63 percent showed support for the competency-based education system.
Though we could not find the exact stats of E-learning trends in India, it is very well known that an app “Byju” is making ripples in the Indian market.
Source – byjus.com
Byjus app caters to students from classes 4 through 12 & also provides learning material for many competitive exams.
The courses start at Rs.4,000/- going upwards to Rs.1,00,000+ for a competitive exam set.
Shahrukh Khan has endorsed this brand & that is no mean feat for a learning app.
“Lynda” is a learning platform that caters to courses for adults ranging from “Marketing”, “Software”, “Self Help”, “Personality development” etc.
Source – Embed.ly
The Lynda.com Online Training Library teaches computer skills in video format to members through monthly and annual subscription-based plans. The company was founded in Ojai, California and has since moved to Ventura and Carpinteria, California, where, as of 2013, it employs nearly 500 full-time staff members and more than 140 teachers who earn royalties from their shared revenue model. The company website was created in 1995 and the company was incorporated in 1997.
On April 7, 2015, LinkedIn acquired Lynda.com in a deal worth $1.5 billion.
If you have an idea for a learning app, this is the time to test it out as the market is mature enough to try out new learning apps out there as long as you add value to the audience.
3. Subscriber Based Clubs
Though E-commerce industry as such is increasing by leaps & bounds it is very difficult for companies to retain the customers due to the availability of lots of options.
Customer Loyalty has been shrinking & will do so until the company provides them irresistible value along with certain innovations.
This trend is huge in the western world but is slowly but surely catching up in India too.
Source – goodboxgifts.com
This trend relies on a simple concept of making it easy for customers to buy products without the hassle of placing the order every month or every time they need the products.
Using the Subscriber based Box model – the customers subscribe to the company’s box which then sends them the same or a different set of products as per their interests during the sign-up phase.
This makes sure that the company knows exactly how many boxes to dispatch every month & also the customer’s loyalty increases due to the convenience that the company provides.
This concept is best used by a company called the “Dollar Shaving Club”.
Source – dollarshaveclub.com
They also have gifting options so you can gift the membership & the box to a friend or someone dear.
Going forward we assume a lot of gifting options & subscriber based programs or clubs will be HUGE in the E-commerce space.
Since 2016, Every Year the Retail E-commerce sales have been increasing by around 6000 Million US Dollars consistently.
The Top 3 E-commerce Models are:
1. Aggregators – Platforms which provide for vendors to sell products. The platforms only invest in the technology & the marketing & not in the actual products through some platforms might launch their own branded products to increase profitability.
2. Learning Systems – These platforms are specific to “Education” space & can range from providing learning services to Primary, Secondary classes to Competitive exams & also Skillset oriented courses.
3. Subscriber Based Clubs – Brings convenience & ease to the consumer to either buy products or gift them to near & dear ones. These work on the concept of sending the products to the customers at certain time intervals & make the process of ordering every time redundant thus increasing the loyalty of the consumers too.
If you have an E-commerce business or are planning to start one we would LOVE to hear what you think of these Top 3 E-commerce Models, drop us a comment.
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Have a great week ahead.
Founder, Head – Marketing,