Amazon, Flipkart & Snapdeal have highest brand equity amongst e-comm sellers, notes new Nielsen study

15 Jun,2016

 

By A Correspondent

 

Amazon, Flipkart and Snapdeal have the highest brand equity amongst e-tailing websites. The three e-comm majors ranked first, second and third amongst sellers as per Nielsen’s newly launched E-commerce Sellers study Q1 2016 (Jan-March2016). Familiarity, which had come up as the top driver for building equity in the category, is demonstrated by top-of-mind recall. The top three players among the first brand spontaneously recalled were Amazon (25%), Flipkart (21%) and Snapdeal (20%). In terms of overall awareness, Amazon (86%), Flipkart (82%), and Snapdeal (75%) were leading among the others. Intent to sell on the e-tailer is also an important parameter to demonstrate familiarity where the leading brands were Flipkart (58%) and Amazon (55%).

 

“This study outlines the need gaps in the eco system, and opens avenues for E-commerce platforms  to support sellers.  E-tailers can play a big role in helping sellers develop their category and build businesses – thus also becoming a preferred brand for sellers,”  said Dolly Jha, executive director, Nielsen India.

 

The findings from the study indicate that 39 per cent online sellers explore two or more e-commerce website as an option to sell products on and grow their business.

 

The Nielsen study launched aims to understand the inclination and experience of selling products on e-tailing platforms. The study also gauges the brand equity of e-commerce websites amongst connected online sellers, and of those who intend to sell their products online in the next few months. The first wave of the study was conducted in 16 markets with a population of more than one million, and a sample size of over 1100 respondents.

 

“With the e-commerce industry growing in double digits, there is surge in demand by customers, and an evolving online seller category that is fuelling supply on portals. To ensure the equilibrium of demand and supply, it is essential for e-commerce portals to focus on developing an inviting platform for online sellers in India. Sellers are also increasingly discerning when it comes to reaching their customer and meeting business needs,” said Jha, adding: ”Considering the juncture at which the category is, it is now very critical for e-tailers to understand push and pull factors that make sellers pick one website over the other. The study will also help understand the impact of marketing activities.”

 

A high level of familiarity along with indepth  knowledge of an E-commerce website is the most important factor that drives brand equity, notes a Nielsen communiqué. Other key factors that impact brand equity are certain perception of the e-tailers: “They help the sellers stay relevant and ahead of competition” , “Provide new market opportunity”  and “Help minimise costs to reach out to more customers” .   At a micro level, other important attributes include potential of reaching out to customers from the same locality , ensuring publicity for the shop, and those websites used by peers and competition. Helping sellers save on in-store and inventory management, as well as a platform that would be most profitable to sell products on are critical when looking for new opportunities and markets. The ability of reaching out to a pan-India customer base, savings on logistics and requiring minimal investment are other considerations sellers look for while choosing e-tailers.

 

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