Skip to main content

Do TataCliq & ABOF stand a chance? Read this to know.

My guess is the guys at TataCliq and abof don't get it. Its simple why. 'Cos they don't know. That in the digital world, brands don't matter as much. Why? 'Cos buyers are turning rational in their decision making and responding less to 'emotional value' that flows from branding.

Really?

You bet! On a digital commerce platform, consumers have the luxury of arriving at what is called 'absolute value' The era of 'relative value' via limited access to information is dead thanks to the mountain of 'consumer driven' data available to buying decision-makers at their fingertips. The guys and TataCliq and abof are betting big on brands. Sorry guys, that era is over. Not that brands won't matter anymore, but that consumers are getting smarter thanks to 'near perfect' information they have access to. Any e-retailer building a business model around brands and parading the portfolio to attract consumers online will fold up if he/she doesn't wise-up and respond to the arrival of 'absolute value'.

The other day I got Brooklyn a Crocs sandal at a whopping '60 percent off' at Jabong. Sure, it was the last piece but guess what, I and millions like me can get to that last piece of a product 'rated high' by our other fellow consumers. Yep, at the best price possible. If TataCliq and abof aren't that e-store where the last 'best' piece is, I can bet they don't have a future. On my part, I hope it ain't adios TataCliq & abof soon. As a rational consumer I want them around so I can get the best value possible as a consumer scouting online stores. So here's hoping and toasting to their longevity in the digital marketplace.

Cheers. 

Comments

Unknown said…
Worry about your investment in share market? Feel free to get all the answer regarding it from the trusted advisory Epic Research

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.


Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Consumer Spending

Carpe Diem Blog: From Visual Economics, a graphical representation appears above (click to enlarge) of Consumer Expenditures in 2007, using data from the Bureau of Labor Statistics. Note that total spending on food ($6,133), clothing ($1,881) and housing ($16,920) represented 50% of consumer expenditures and 30% of income before taxes in 2007. In 1997 by comparison, 51.1% of consumer expenditures were spent on food, clothing and housing, and 44.6% of income before taxes was spent on food, clothing and housing (data here).