Foreign Online Retailers Ask India to Allow Direct Sales


NEW DELHI--Global online retailers such as Amazon.com Inc. AMZN +0.58% have asked New Delhi to amend a law which prohibits their Indian units from selling directly to consumers, a senior trade ministry official said Tuesday.
"We will consider the requests, but it has to be a political decision," the official, who didn't want to be identified, told The Wall Street Journal.
He declined to say which other companies had made similar requests.
The official's comments come as Paul Misener, Amazon's global vice president, met Indian Trade Minister Anand Sharma Tuesday.
Mr. Misener told reporters after the meeting that the discussion covered "different issues," including the possibility of changes in the policy that currently restricts them from retailing in India.
Amazon's interest in expanding in India comes at a time when local startups such as Flipkart.com and Snapdeal.com have found acceptance in the country's growing online retail market.
Despite low internet usage, India's e-commerce market has recently shown encouraging signs of growth and attracted several global companies.
New Delhi-based consultancy Technopak Advisors predicts a $70-billion annual market for online shopping in India by 2020, up from $600 million now.
U.S.-based Amazon entered India in February 2012 with the launch of its price-comparison platform Junglee.com. But users cannot buy directly from the website.
It only allows potential customers to compare prices. They can then shop online by following a link to the seller's website or visit the shop in person.
"Amazon's intent in launching Junglee.com was to have a presence in the Indian market till rules are changed to allow them to do business here," said Ankur Bisen, vice president at Technopak.
Mr. Bisen added that foreign online retailers are meeting government officials to make a case for permission to sell direct to customers.
Currently, Indian customers can buy direct only from Amazon's global sites, but this puts the company at a disadvantage because shipping costs are higher and delivery takes longer.
Last September, India introduced several policy changes, including allowing foreign retailers such as Wal-Mart Stores Inc. WMT 0.00% to invest in local supermarket operations. But online retailers were left out.
Mr. Bisen said a lack of a proper understanding of the way online retailers function could have prevented the government from allowing them to operate locally.
The federal government's move to relax foreign investment rules in the retail sector has sparked political opposition, with opponents saying local mom-and-pop stores won't be able to compete with foreign retailers

PayPal Still Dominating Digital Wallet Marketplace



Only 51% of US consumers are aware of digital wallet providers other than PayPal, even as electronic payment providers, mobile phone carriers, banks, and retailers themselves line up for a piece of the emerging digital wallet market, according to new data from comScore.
Moreover, only 12% of consumers surveyed say they've used a digital wallet service other than PayPal.
Digital wallets store a virtual copy of the contents of a consumer's physical wallet to facilitate online or offline retail transactions. By automatically entering an enrolled customer's credit card number and billing/shipping addresses, digital wallets tend to simply the online shopping experience and decrease shopping cart abandonment.
When consumers use a digital wallet via mobile device, the transaction can be as simple as holding up a smartphone to a digital reader at a merchant's cash register. Below, additional findings from comScore's new report titled "Digital Wallet Road Map 2013," which offers data, insights, and strategies for overcoming barriers on awareness, understanding of benefits, availability, and security concerns.

Among digital wallet services, PayPal boasts the highest awareness and adoption among US consumers: 72% say they're aware of the service, and 48% have used PayPal.

Even so, the digital wallet market opportunity could eventually reach one out of two consumers as audiences become more aware of the offerings and educated on their benefits, the study found.
Security a Concern
Security is a top consumer concern; however a large portion of consumers are not aware of security features inherent in digital wallet use.
For example, though 93% of consumers would prefer to use a digital wallet that has to be unlocked before use, an average of just 57% across the brands studied realized—after having reviewed the digital wallet website—that a locking feature was available.

Even so, various digital wallet providers are more successful than others in communicating the availability of this feature, with 71% awareness among Lemon website visitors, compared with 42% among LevelUp website visitors.
The ability to improve communications of features addressing consumer concerns, such as security, could remove an important hurdle to adoption, comScore notes.
Online and Offline Preferences
Consumers have fairly wide-ranging preferences around how they'd like to use digital wallets, according to data from the same survey, released in December 2012: 
  • 52% would prefer to make purchases both online and in a physical store.
  • 15% favor online channels only.
  • 9% would prefer to use their digital wallet for in-store shopping only.


If shopping in-store, various methods can facilitate the checkout process and consumers cite the following as those they'd prefer most:
  • Enter a pin or password when checking out: 44%
  • Tap their phone at the register: 22%
  • Presenting a photo ID associated with their digital wallet: 19%
  • Mobile app or scan a barcode: 15%
Preferred Devices for Making Payments
Most (64%) consumers say they'd use their PC or laptop to make payments using a digital wallet; however, nearly one-half (46%) would use their mobile device and one in five (18%) would use a tablet: 

Digital wallets represent an innovative technology that has not yet reached critical mass among consumers due to a variety of factors, including low awareness and a muddied understanding of their benefits," said Andrea Jacobs, comScore Payments Practice Leader.


by Lenna Garibian

Five E-Commerce Resolutions to Improve Search Engine Visibility in 2013




In this article, you'll learn...
  • The impact that a lack of content has on search engine visibility
  • How to eliminate "Google Junk"
  • The benefits of using schema.org and microformats


Online marketers near and far resolved in January to get to the top of search results this year. If you're still stumped, here are a five simple yet effective tactics to employ during the rest of 2013.
1. Eliminate category, subcategory, and product pages that don't have descriptions
The launch of Google Panda in February of 2011 changed the game for e-commerce SEO. Throughout the rest of the year and into 2012, Google Panda significantly hurt websites (including the e-commerce sites) that had "thin" content. By now, we should all know that content isn't only for fueling rankings but also for encouraging the coveted macro conversion that we all salivate over: "buy now."
A lack of category and subcategory descriptions might work for brands like Ralph Lauren and retailers like Macy's and Overstock, but the typical e-commerce site doesn't have a domain authority of 90 like those e-tailers. When developing your SEO strategy, don't just rely on competition and "best-practice"; rather, focus on what your users want.
Impact on visibility: Having category, subcategory, and product pages that lack descriptions leaves you susceptible to future Panda updates, and it's a missed opportunity to explain that mysterious "product grid" (display of available products in a grid format) and to warm up visitors with compelling sales copy.
2. Dance with the devil and accept paid product listings
Well, Google may not be the devil, but it sure as hell seems like it. Even Bing says so. A lot of us were taken aback when Google commercialized product listings, but it is what it is. We had quite a few clients that were using it for years and now it's a commercialized product that favors mega sites with money to burn (pardon the pun).
The fact of the matter is, if you are have a large paid media budget, then this is a power play. With these changes, a hefty chunk of advertisers will go away, giving you more opportunity to increase visibility and, in turn, sales.
Impact on visibility: Participating in paid Google product listings makes you a sell-out. But not listing your products limits your visibility and forces you to be over-reliant on secondary traffic mediums.
3. Stop putting products in multiple categories
Time and time again, search engine marketers act in a reactionary manner when optimizing e-commerce websites. It's not because clients don't know what they're doing—it's because they know what they're doing. Sometimes, a product belongs in more than one category—simple as that. BUT, if sites are built from the ground up with these considerations in mind, then the information architecture or category nomenclature would make it nearly impossible.
Impact on visibility: Listing products in multiple categories leads to duplicate content. Duplicate content leads you straight to Google Hell. If you have an authoritative site and aren't willing to take the risk of restructuring your information architecture, consider using the rel=canonical (AKA Google's gift to man) to differentiate product pages.
4. Eliminate "Google Junk" once and for all
I once had a client tell me that I was wrong for scolding them for having "too many" pages indexed in Google. After launching GoToMeeting and showing a bit of data from Google's historical index tool, illustrating a 0.8% crawl-to-indexation ratio, the client quickly recanted.
The common misconception is that the more pages you have indexed, the more likely you are to have your pages rank. That's just not true; rather, that only makes it harder for Google to crawl and index pages on your site. Some of the biggest propagators of "SERP junk" are internal search results, duplicate product listings, and query parameters/category attributes.
Use the robots.txt file to weed out internal search results, and use the rel=canonical tag to eliminate duplicate product listings and filterable attribute "junk."
Impact on visibility: Having dynamic or duplicate pages indexed in search engines makes it harder for them to distinguish what's real and what isn't. Let's be honest, search engine spiders are machines—sometimes they lack common sense. Let's make it easy for them by telling them what they can and cannot index.
5. Embrace Schema.org and microformats—they work!
Some say that to keep the audience attentive, writers should save the best for last. We sure did. Last June, the big three search engines announced universal support for Microformats documented on schema.org.
Not sure what Microformats are? Do a search for "chocolate chip cookie recipe," "Leo Tolstoy books," or "Italian restaurant reviews." Notice those stars, ratings, author names, and votes? Behold the power of semantic search.
Marking up your product, contact, location, review, or service pages with Microformats will increase the probability that search engines will display your result with rich snippets. Rich snippets (i.e. those stars and ratings data) have been shown to give an unprecedented 30% increase in click-through rate.
Impact on visibility: As of now, the only thing that we've noticed Microformats have proven to be good for is an increase in CTR. That's not to say, however, that they aren't used as a ranking signal. We position it as a competitive advantage to our clients and have seen some big wins as a result.
by Anthony Piwarun

Brand Blink: Understanding the Mind to get to the Heart of Buying Decisions


By Daryl Travis, CEO, Brandtrust

Malcolm Gladwell enlightens our thinking with his book Blink, a fascinating exploration of how decisions are made in the blink of an eye, before consumers even realize they’re making a decision. He suggests “we think without thinking.”

Gladwell’s effort to share emerging insights into how our brains work is timely. In this decade, we are learning more about how humans think and feel and what drives our behavior than the whole of our discoveries in the time since Sigmund Freud dreamt up the idea of psychoanalysis. This has profound implications for marketing and brand professionals. As it turns out, these developments are revealing just how faulty and inadequate conventional research methods are when it comes to truly understanding consumers.
WHAT’S BEHIND BLINK?
In Blink, Gladwell urges that people make decisions through rapid cognition and a concept known as thin-slicing—the ability of our unconscious to find patterns in situations and behavior based on very narrow slices of experience. More than we realize, we evaluate a situation or a brand and frame our response before we ever consciously think about it. When we thin-slice, we recognize patterns and make snap judgments, we do this process of editing unconsciously. We first see and perceive a color several hundred milliseconds before we can think or say “red light.” Our foot seeks the brake long before we actually think about stopping, that is, if we think about it at all.
As Gladwell warns, “while people are very willing and very good at volunteering information explaining their actions, those explanations, particularly when it comes to the kinds of spontaneous opinions and decisions that arise out of the unconscious, aren’t necessarily correct. Finding out what people think of a rock song sounds as if it should be easy. But the truth is that it isn’t, and the people who run focus groups and opinion polls haven’t always been sensitive to this fact” (Gladwell, 2005, p. 155).
FINDING BLINK 
Brains are pattern machines. (Hawkins and Blakeslee, 2004) These patterns make blink moments possible. But, if you are a marketer looking to capitalize on a blink phenomenon, be aware the brain cannot command itself to go into “think blink” mode. Instead, it involuntarily retrieves from memory the feelings that drive blink encounters. Our brain does not remember exactly what it sees, hears or feels. We don’t remember or recall things with complete fidelity—not because the cortex and its neurons are sloppy or error-prone, but because the brain remembers the important relationships in the world, independent of details. (Hawkins, 2004)
The relationships we feel are important in our world are stored as images in our unconscious mind and are linked directly to our emotions. In fact, we don’t really think in words, but more in pictures or images. The brain is elegantly designed to store whole concepts within an image. We store memories as images because they are more meaningful and easier to access quickly and automatically. Emotions are largely responsible for creating these memories and are the key to unlocking the meaning within.
It is critical for marketers to understand the role of emotions in human decision making and behavior. Raised in Western culture, we are well indoctrinated in the forces of logic and reason, but we’ve lost sight of the essential role emotions play in determining human behavior. In fact, all human behavior is driven by emotional input derived from these stored visualizations. There are two systems in the brain. One is for logic and reason. It resides in the neocortex, the outer layer.  The other is found in the limbic system, the emotional part of the brain. The emotional components appear in very discreet, well-identified and interconnected regions of the brain. The interconnection occurs in a handful of brain sites that are collectively known as the limbic system. One site in the system, the amygdala, is the brain region responsible for the subjective experience of the emotion. Another site, the hypothalamus, is responsible for triggering the physiological response of the emotion. The hypothalamus, amygdala, and cortex all feed back on each other in a complex alchemy of emotion and reason to coordinate the appropriate behavioral response. This information is also saved and stored by a third member of the limbic system, the hippocampus. All of these brain regions, from the higher cortex to lower limit systems, converge in a single brain region known as the cingulate cortex.  It is in the cingulate cortex that decisions are made. Reason and emotion commingle and we are able to coordinate our emotional response to direct our actions and thoughts.
One very important scientific aspect of this whole process is that we know the decision making process does not work in the absence of an emotional signal from the limbic system. Left to its own devices, the consciously thinking part of the brain is incapable of making a decision. The implications of this for marketers are inescapable.
FROM THE HEAD TO THE HEART
Revealing patterns in the brain through a methodology called Emotional Research, a psychoanalytic-based technique designed to tap into memories, makes it possible for consumers to access emotions that drive their behaviors. Through directed relaxation and visualization exercises, consumers can recall experiences and reveal underlying emotions that cannot be accessed via conventional research. Visualization is critical to unlocking the emotional drivers. Jim Hawkins, creator of Palm and Handspring and the founder of the Redwood Neuroscience Institute, discussed this in his provocative book, On Intelligence. “The next time you tell a story, step back and consider how you can only relate one aspect of the tale at a time. You cannot tell me everything that happened all at once, no matter how quickly you talk or I listen. You need to finish one part of the story before you can move on to the next. This isn’t only because spoken language is serial; written, oral and visual storytelling all convey a narrative in serial fashion. It is because the story is stored in your head in sequential fashion and can only be recalled in the same sequence. You can’t remember the entire story at once. In fact, it’s almost impossible to think of anything complex that isn’t a series of events or thoughts” (p. 70).
You can easily experience firsthand how Emotional Research works as you read this. Follow these steps as described. First, think about a time and place when you were very relaxed. Close your eyes so you can see it better. In your mind, go to that time and place. Now, scan the scene very slowly from left to right and describe what you are seeing. Notice all the little details. Who is there with you? What time of day is it? What colors do you see? What is the light like? What are you thinking about? What are you feeling?
Now, did you go to the beach or some body of water as we see most of the population do in our research? This is because the desire to be near water is very primal human behavior and a clear indication how this research can powerfully tap into the underlying emotional drivers.
FINDING BRAND BLINK 
Emotional Research, like in Brandtrust’s Emotional Inquiry
sm, reveals the elements that create a brand or a blink experience. The directed visualizations of the experiences that first encoded the emotion in a person’s memory banks are essential. This unlocks the memories, the emotions and the feelings that influence people’s behavior when faced with a similar experience. For the purpose of brand research, imperfect recall is not an issue. We are simply trying to uncover how the subject feels about a particular experience related to the brand because those feelings drive his or her behavior.
We discover the specific things that actually cause an emotional response related to blink or brand experiences. The sound of your mother’s voice, a picture of your grandmother’s house, the memory of the loss of a loved one, the aroma of a favorite food, and thousands of other experiences trigger emotional responses.
We also explore the deeper feelings of the emotion and how they invoke behaviors that make up the landscape of all of our psychological experiences. Revealing these emotional responses, common to most people, provides the insights into what a brand must say and do to succeed.
As a result, we’re confirming brands are about feelings, not facts.  Buying decisions are made on promises that transcend products, and promises are rooted in human emotions.  Quite simply, brands are built on trust. Making and keeping promises builds trust which is among the most basic of human emotions. To impact our company’s bottom line, we need to get in touch with our customers’ emotions.  As marketers, we must have our own blink moments and embrace the reality that branding is about “brain surgery” and psychology. Because how your customers feel about your brand isn’t a casual question.  It is the crucial question.

Rupee hits 14-week high; oil demand limits gains


The rupee strengthened to its highest level in nearly three-and-a-half months on Wednesday, helped by dollar inflows for upcoming share sales and positive sentiment on the back of a strong euro.

The government expects to raise more than $465 million by selling a 10 per cent stake in Oil India Ltd on Friday, while an about $2 billion stake sale in power producer NTPC is likely to take place on February 7.

The gains in the rupee came despite caution about whether the Reserve Bank of India (RBI) will continue to cut interest rates after lowering the repo rate by 25 basis points on Tuesday. These worries have hit domestic bond prices, and capped share gains.

"The flows for the stake sales via qualified institutional placements and offer for sales which are in talks are helping the rupee. Exporters, too, are selling on expectations of more dollar supply," said Vikas Babu Chittiprolu, a senior forex trader at state-run Andhra Bank.

"I expect the rupee to gain towards 52.50 in the next one-month," he added.

The partially convertible rupee closed at 53.30/31 per dollar, 0.9 per cent stronger than its close of 53.76/77 on Tuesday. The unit rose as high as 53.28, its strongest since October 18.

Traders said the rupee benefited from a gain in the euro to 14-month highs against the dollar ahead of the Federal Reserve's first policy meeting of the year. The Fed is widely expected to stick to its super-easy policy until US unemployment falls sharply.

Traders said larger gains in the rupee were capped by demand for the greenback from oil firms, the biggest buyers of dollars in the domestic currency market, whose demand peaks at the end of each month when they are required to make payments.

In the offshore non-deliverable forwards, the one-month contract was at 53.53 while the three-month was at 54.10.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 53.52 with a total traded volume of $5.02 billion.

Copyright @ Thomson Reuters 2013

HDFC Bank cuts auto loan rates by upto 0.5%


Taking a cue from RBI's rate cut yesterday, private sectorHDFC Bank has decided to slash auto loan rates by upto 0.5 per cent.

The interest rate on car loan will be lower by 0.25 per cent while two-wheeler loan will be cheaper by 0.5 per cent, a senior bank official confirmed when contacted.

As far as the commercial vehicle segment is concerned, the reduction in rates will be 0.25 per cent. The new rates would be effective from February 1, the
official added.


Last month, the bank had reduced its base rate by 0.1 per cent to 9.7 per cent, the lowest in the market. At the same time, the benchmark prime lending rate (BPLR) of the bank was also slashed by a similar margin to 18.20 per cent.

The revision in the benchmark lending rate was in anticipation of rate cut by the central bank in its January policy.

Yesterday, the RBI decided to reduce short-term lending rate by 0.25 per cent and slash Cash Reserve Bank (CRR) by same margin to inject Rs 18,000 crore of liquidity into the system.

Following the announcement by RBI, IDBI Bank reduced both its deposit and lending rates by 0.25 per cent while other banks including State Bank of India (SBI) hinted at cutting their interest rates within next few days.


The Mumbai-based HDFC Bank currently offers car loans between 10.75 per cent and 11.75 per cent. Post rate cut, the range would be 10.5-11.5 per cent for repayment period between 36 and 60 months.

Accordingly, interest rate on two-wheeler loans would be adjusted to between 19.25 per cent to 22.25 per cent. With regard to commercial vehicles, the rate on heavy commercial vehicle will be down by 0.25 per cent to 11 per cent while light commercial vehicle will get reduced to 13.75 per cent from existing 14 per cent.

The auto loan portfolio of the bank currently stands at about Rs 33,000 crore. The auto loan advances of the bank has been witnessing a growth of 12 per cent.

July Consumer Price Index eases to 9.86%

Retail inflation declined marginally to 9.86 per cent in July due to lower prices of spices, cereals and its products although prices of vegetables remained high during the month. 

Based on the Consumer Price Index (CPI), the inflation for June was revised downwards to 9.93 per cent from the provisional estimate of 10.02 per cent, as per the government data release here today. 

Vegetable prices recorded the maximum spurt, up 27.33 per cent, followed by edible oils - 17.37 per cent and pulses and its products - 12.49 per cent in July, year-on-year basis. 

Prices of egg, fish and meat shot up 11.11 per cent, while non-alcoholic beverages became costlier 9.26 per cent. 

Among other items, prices of cereal and its products saw a rise of 6.45 per cent over the July 2011 level. 

While sugar saw a rise of 9.06 per cent in July, prices of food and beverages, clothing, bedding and footwear segments remained in the double-digit. 

Inflation rates for rural and urban areas were 9.76 per cent and 10.10 per cent in July. 

According to the revised data, the inflation rates for rural and urban areas were 9.65 per cent and 10.44 per cent in June. 

The All-India CPI is in addition to the three retail price indices -- for agricultural labourers, rural labourers and industrial workers -- prepared by the Ministry of Labour. 

The headline Inflation as measured by the Wholesale Price Index (WPI) had also declined to 6.87 per cent in July as the rate of price rise of the food articles category eased a little, although pressure remained on potato, pulses and rice as well as manufactured items. 

The WPI inflation was 7.25 per cent in June.