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Jaldi.com -- Using contests to weed out fake orders 

Kumarkaushalam  
New Delhi, May 24: It's fast learning at Jaldi.com. The discovery thaton-line contests bring the best out of e-shoppers is leading Jaldi ECommerce Ltd to hatch a promotional contest every month.Says Sanjay Trehan,vice-president, content and strategy, Jaldi.com: ``Fake on-line orders havedropped to five per cent from around 50 per cent following our first JaldiLagao contest last month. We are seeing more genuine buyers entering thee-commerce arena.''

Jaldi.com ran a Jaldi Lagao contest, a jigsaw puzzle, in association withCarrier Aircon Ltd, which gave one airconditioner to a winning consumerevery day between April 3, 2000 and May 2, 2000. Contests like this bringnot only genuine buyers to the Net but also bigger transactions to thecompany and provide a peep into the potential of e-commerce.

Against a transaction of Rs 25 lakh during January-March 2000, Jaldi.comsecured orders of Rs 3 crore (arrived at after the de-duplication of totalorders of Rs 4.5 crore). These transactions came from 11,000 orders out of aregistered user base of 50,000.Encouraged by contest results, Jaldi is nowaiming at transactions of between Rs 25 crore and Rs 30 crore in the nexteight months and the doubling of its registered user base.So far the companyhas roped in 50 manufacturers with its Jaldi Purchase Price appeal.

Says Trehan, ``By March 2001, any brand of reckoning will be a part ofJaldi.'' While on the one hand Jaldi will rope in as many brands aspossible, it has also instituted an audit system to track the pull ofvarious `buttons'. Services like insurance and banking have been done awaywith and it is examining other `white elephants.'Jaldi's future plan willalso take into account its in-house findings (very soon it will get anindependent audit) based on the Carrier contest: Most transactions wereactivated from office; and consumer durables accounted for a bulk of salesfollowed by provisions, which received enthusing response from housewives.Inaddition to transactions, which will contribute around 80 per cent ofJaldi's revenue, market research (it has tied up with Indica Research) andadvertisement are expected to account for 10 per cent each.

`Power Shopping'
Jaldi's second phase of communication will contrast the beauty of e-shoppingversus the drudgery of physical shopping in ahumorous and informativemanner. Earlier, on the platform of `Power Shopping' itsadvertising agencyEuro RSCG employed a mix of shock and irreverence to build an upscale imageof a company driven by innovation and information.

Jaldi.com will spend Rs 15 crore during June 2000-March 2001, following aspending of Rs 2 crore in the first phase of advertisingand promotion (A&P).Around 60 per cent of A&P will be spent on print advertising, 30 per cent ontelevision commercial and the remaining 10 per cent on promos.

Jaldi's TVC, which is likely to be finalised by June 2000, will be airedextensively beginning August in channels like Zee and Star Plus. A distinctpositioning is critical for Jaldi as nearly half a dozen India-centric sitesdealing in white goods are likely to join the existing club of four keye-commerce sites.

Examining tie-ups with dealers
As an info-mediary intended at eliminating middlemen, Jaldi's major task isto convince manufacturers that the site will not be a perpetual discountingexperience. ``Discounting and auctions will be only for tacticalobjectives,'' says Trehan. ``We'll create value proposition that will letmanufacturers garner niche audience without offending their dealernetwork.''

Jaldi's promos and communication will gradually steer away from discountingdeals, he adds.Jaldi is also mulling forging collaborative alliances withdealers and departmental and national shopping malls.

Beefing up logistics
In line with the setting up of a network of kiosks across the country --Jaldi will set up 300 branded kiosks in large showrooms in 20 key cities inthe next six months -- Jaldi.com is beefing up its logistics and inducting anew customised software to monitor the flow of orders and customer careresponsiveness.

By March 2001, Jaldi will broadbase its delivery mechanism (at present ithas Gati) to secure tie-ups with half a dozen freight companies, especiallythe ones with strengths in different local markets. ``Our benchmark will beto ensure delivery of consumer durables within three to four days in majormetros and within 10 days in other towns,'' says Trehan.

Promoted by KLG Systel and Satin Credit Care Network, Jaldi E Commerce hasso far invested Rs 5 crore and will now spend Rs 15 crore on A&P, Rs 2 croreon kiosk and Rs 3 crore on logistics. By March 2001, Jaldi is also expectedto double its staff strength of 35. Jaldi's business consultant fore-commerce focus and for arranging corporate finance is MorganStanley.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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