eBay, with a 5.6 million user base had a digital-only strategy for the past three years. But ahead of the festive season, the e-commerce player launched a TVC. Shivani Suri Dhanda, Head-Marketing, eBay, talks about the brand’s return to traditional advertising
By Neeta Nair
Q] You have launched a TVC after three years, what kept you away from the medium for so long?
Our strategy had moved to digital-only in the last three years. The reason was our well-defined target audience which was either the existing users or those who intend to shop online. With those categories, we really didn’t need to go above the line. Also, because digital has so many avenues, we decided to plough in all our investments in that space. But now, with the recent Department of Industrial Promotion and Policy (DIPP) announcement which defines an e-commerce marketplace in India, we have seen a lot of rationalization with regard to discounting, which has come down in a big way. Slowly, the market is hitting a normalized curve and therefore, pricing is no longer the only differentiator that was leading to preference. Today, any brand needs to start building on fundamentals if it wants to do well. Thus, we felt it was the right time to come back and invest in the brand because going forward, that is what is going to create the differentiator.
Q] What is eBay’s differentiator or USP?
It has to be the range of our products. Today, we have 10 crore products on our site, no other player can boast of such a range. In comparison, last year we had three crore products on our platform. We have really put our efforts into building such a supply and range, thus felt the time is right to talk about it.
Q] Was the idea to make the brand look more liberal with the latest campaign #ThingsDon’tJudge?
When we launched a TVC, we could have taken a more functional route, where we directly talk about our entire range. But enough has been spoken about that. We felt we needed to find our own voice in this extremely competitive and noisy marketplace. So we had to zero in on a clear differentiator, which was our 10 crore plus offerings and a distinct language that has not been heard before. Our research showed that the attributes associated with e-commerce are new age, futuristic, contemporary, breaking away from the norms, and millennials wanted to live by rules that fit the same definition. That’s when we decided that we didn’t want to be a brand that is trying to gain market-share, but one that is driving conversation. That’s why we felt we would hit the right note with the #ThingsDon'tJudge campaign.
Q] You have come back with a TVC at a time when e-commerce players are fighting it out on Television to grab the consumer’s attention. Was there a risk of getting lost in the crowd?
Festive season is the time when our consumers are actively shopping and when new shoppers come into the fray. This is the time when this category sees an incremental growth in terms of the new buyers and not just revenues. And we felt that if there was a time to invest then this was it because anyway, there is momentum built by the ecosystem. We believed that if our communication and messaging has the power to standout, then irrespective of the time we release it in, it will find a firm voice. So, we debated it, we didn’t have the share of voice compared to some of our competitors, but we felt that with the ‘Things Don’t judge’ message, we could still stand tall.
Q] What is the marketing mix for the #ThingsDon'tJudge campaign?
It’s TV and Digital largely, from video to social media to blogs to content marketing.
Q] You just conducted the first ever Facebook live gaming event ‘Dhanbola’, what kind of response did that get?
It was an attempt to deepen our engagement with consumers on a platform which is preferred by them and to celebrate the spirit of the upcoming festivities. It was hosted by stand-up comedian Zakir Khan. We managed to engage with 1.2 lakh consumers through Dhanbola.
Q] eBay introduced Indians to e-commerce, but the online shopping trend didn’t really catch up until Flipkart came into the picture. Why do you think that happened?
eBay has always believed in sustainable growth. Any market we have gone to, eBay has grown profitably. It didn’t make sense to just invest to gain market-share. We still feel that it’s a very nascent market here and everybody in the e-commerce business is only getting started. It’s a long ride and there will be a lot of changes. But the market has to rationalize, it has to normalize for sustainable growth and a long term growth to take place.
Q] Which e-commerce player do you consider as competition?
All of them. Anybody who has a horizontal platform and not a niche-one-product category is competition for us.
Q] There are products on eBay that come with just vendor warranty and at half the rate, while your competition is insisting on genuine products with complete warranty. Has the approach worked for the brand?
Our global brand purpose is to give you your version of perfect. So, for some people, their version of perfect is the manufacturer warranty which we have on our platform, for others buying a refurbished product, which is as good as new is alright. Similarly, many people are okay with just the seller warranty, because of the big price difference they get. So, we give you all options, it really depends on what it is that you are looking for. Personally, I have purchased some TV sets for a price at least 30%-35% cheaper than the market price. So, I am okay with taking that risk of accepting just a vendor warranty. I would rather take that 35% cash upfront than spend more considering a possibility that something may go wrong in future. Even if that happens, you have the eBay guarantee which takes care of you.
Q] What percentage of your revenues come from resale products?
What we sell are refurbished products which comprise the returns that happen across the online platforms. The rate of returns is as high as 30% on any platform, so it is fast becoming a segment by itself. There are middlemen – the refurbishers, who take these products, do a complete quality check, and see if they are good for use. Sometimes people return goods because it came in the wrong colour, or the box arrived a little torn, or there was a scratch on the screen, none of which affect the functioning of the product. These refurbishers do a complete re-haul and a 100% quality check and give warranty as well. And these come at a discount to you. So you can get an iPhone 6 at a cost probably 25% lower than the market price. And it’s as good as new, as it has never been used. Today, on eBay, refurbished products contribute to around 13% of our revenue.
Q] How different is the Indian market for eBay when compared to the rest of the world?
We believe what buyers want is not very different across the world, and with our kind of range, we have something for everyone. eBay has been in India for the last 11 years and we believe this is a market that’s going to be No. 1 in the world in times to come.
Q] Within India, which are the markets that are doing well for eBay?
For us, it’s evenly spread. The Tier I and Tier II cities contribute to 50% of our business. And the rest of it comes from the Tier III markets. The top 15 cities contribute to 50% of our sales and the rest of India contributes to the remaining 50%.
Q] What kind of challenges do you face in the market right now?
The biggest challenge as a category we face is reach expansion. How do you take it to the next level, especially from a logistics standpoint? Even if there is just one delivery happening in a remote corner of the country, how do you ensure that you are able to service that because right now, everybody is positioned where the volumes are coming from…
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