Automotive Industry at a Glance

The World Automobile Industry is enjoying the period of relatively strong growth and profits, yet there are many regions which are under the threat of uncertainty. Carmakers look for better economies, market conditions which are ideal to have a successful stay in the industry. The automotive industry has a few big players who have marked their presence globally and General Motors, Ford, Toyota, Honda, Volkswagen, and DC are among them. It has also been suggested that automotive industry has accelerated more, after the globalization period, due to easy accessibility & facilities among nations and migrants among giant automakers of the world.

Moreover, the advances in industrialization led to a rise in the growth and production of the Japanese and German markets, in particular. But in 2009, the global car and automotive sales industry experienced a cogent declination which was during the global recession, as this industry is indirectly dependent on economic returns in employment and spending making, it vulnerable. While demand for new and used vehicles in mature markets (eg Japan, Western Europe and the United States) fell during the economic recession, the industry flourished in the developing economies of Brazil, Russia, India and China. Boost in global trade has enabled the growth in world commercial distribution systems, which has also inflated the global competition among the automotive manufacturers. Japanese automakers in particular, have initiated innovative production methods by adapting and modifying the US manufacturing model, as well as utilizing the technology to elevate production and give better competition. The World Automotive industry is dynamic and capable, accounting for approximately one in ten jobs in developed countries.

Developing countries often resort to their local automotive sector for economic growth opportunities, possibly because of the vast links that the auto industry of the country, has to other sectors. China is by far the largest market for sales followed by Japan, India, Indonesia, and Australia. Sales figures of 2005 to 2013 indicate that sales for vehicles in China doubled during this period, while Indonesia and India also benefited. However, there was a slump in sales during this time in Australia, New Zealand, and Japan. Interestingly, this year competition in the truck segment has become more intense, with the three big US automakers striving for supremacy in both performance and fuel economy. The Japanese are not giving up, either, with both Toyota and Nissan launching new pickups in 2015.

India is the seventh largest producer of automobiles globally with almost an average production of 17.5 million vehicles with the auto industry's contribution amounting to 7% of the total GDP. It has been estimated that, by 2020 the country will witness the sale of more than 6 million vehicles annually. India is expected to be the fourth largest automotive market by volume in the world where, two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years and tractor sales are expected to grow at CAGR of 8-9 %, In next five years, making India a potential market for the International Brands. As 100% Foreign Direct Investment is allowed in this Sector, India is expected to have a speedy expansion, to, soon to become the largest automobile Industry. While India is the second largest manufacturer of two-wheelers and largest of motorcycles, it is also estimated to become the 3rd largest automobile market in the world by 2016 and will account for more than 5% of global vehicle sales. As large number of products are available to consumers across various segments, providing a large variety of vehicles of all types, manufacturers aim towards customer satisfaction and loyalty.

Following the FDI policy, entry of a number of foreign players with reduced overall product lifecycle and quicker product launches have become a regular occurrence in the automotive industry of the country. Indian auto market is seen as the potential market which can dominate the Global auto industry in coming years. Moreover, giant dealers and manufacturers are inclining towards the country because of ease of financial norms as well as an environment so conducive to support in their projects.

With Narendra Modi's Make in India Campaign, the automotive industry is expected to witness quite a few changes, where 800 Cr have been allocated in the Budget to promote the Energy and Hybrid Vehicles manufacturing. This move is expected to cut down the prices making these electric and hybrid vehicles cheaper and more eco-friendly. It is also expected that this move will shrink down the carbon dioxide emissions to 1.5% till 2020. This program will subsidize the purchase of new hybrid and electric cars, as well as other vehicle types. It specifies incentives of up to 29,000 rupees for scooters and motorcycles, and up to 138,000 rupees for cars. Three-wheeled vehicles, light commercial vehicles, and buses will also be eligible for incumbents of varying amounts as well.

The used cars sector in India has emerged as one of the major industries due to its easy accessibility and lower rate of interests. But growth in used car sales are lower than new car sales as people still prefer to purchase new cars as opposed to buying used ones. A big reason of this could be the fact that there is a reduced supply of used cars, and high prices of these used cars are pushing the consumers to opt for the low priced new cars. But despite the lower growth compared to new cars segment, used car industry has been showing a fast and steady growth. According to the industry analysts, the sales of used cars are expected to boost up in the next few years.

Till last decade, consumers were involved in unorganized sector of Used vehicles industry, there were no organized players to assist the consumers in buying used vehicles, and about 60% of used vehicle sales were customer to customer where there is a trust factor. The remaining sales were managed by the local dealers. But then in 2001, Maruti came with the first company of selling used cars in 2001- Maruti True Value. Despite the automotive industry witnessed slow sales numbers in the last few quarters, the used or pre-owned car segment is growing fast, and is likely to accelerate in future. In fact in the last fiscal year, more used cars were transacted, 10% more than the new ones, according to the assessment by Maruti Suzuki India Ltd. And Honda Siel Car India Ltd. With the organized players stepping in, the used cars market has benefited from fair deals, warranties, better retail network, reliability, transparency, easy availability of finances. These have all made buying a used car easy. Organized used car showrooms provide the platform to the prospective consumers to choose cars from various brands and segments. Car makers have realized the potential of used car market and are making conscious decisions to operate in the pre-owned car sector also. Beside exhibiting multiple brands, the branded used car retailers, also offer one-stop shop for all inquiries and grievances. All the major Car dealers have now established their pre-owned car segment retail showrooms, Maruti True Value, Ford Assured, Hyundai Advantage and Toyota U Trust are some of the major used car dealers.

Constant decline in fuel prices and better financial policies in the past year are the factors that are being expected to be the reasons for the number of new buyers to be increased in the market, which declined in 2013-14. But during this period, one segment that benefited from this decision was the used vehicle market, with increased awareness, financial reforms and organized firms. Most of these used cars Buyers are younger people who prefer buying Pre-owned cars which come at lower prices and they get a good bargain for the same. Indian used vehicle market which is still, almost quarter of new vehicle market is growing at a rapid pace. The Pre-owned car sector is expected to grow by 15-18% in coming years.

Also with the rising in number of organized players have boosted the amount of confidence people are putting in buying a pre-owned car. These players not only offer a good line up of used cars but also offer finance & extensive vehicle check facility for 100% customer satisfaction.

The Automotive Industry is an important part of every economy as it is interrelated to growth of sectors of the economy. India as one of the progressing economy is resolving towards making its automobile industry more and more highly competent, linking it to overall development. With the Make in India Campaign and promotion of eco-friendly vehicles, India is expected to soon become the largest automobile industry globally. Used vehicle industry is expected huge gains with more and more people resolving to it along with the growth in the new car market. With more resources for the buyers and sellers, the automotive industry is expected to flourish meritoriously in coming future extremely taking the country forward.

Thinking Like An Online Entrepreneur – E-Commerce Tips

So much has been written about entrepreneurial thinking that I won’t try to distil it here. However, there are certain behaviours I have noted about how some web owners approach the development and running of their e-commerce websites which deserve a little discussion.

Let me start with the most important, influencing factor to any web owner’s success: belief.

Belief

Starting your online entrepreneurial activity with the right mindset and beliefs is like winning the match before you’ve stepped out onto the court. It’s what separates the really successful businesses from the average ones.

Ask any sportsperson or sports psychologist and they’ll tell you that your beliefs profoundly affect your performance.

What we believe is possible in our online entrepreneurial life is the limiting factor in our success.

Let’s take an example. Lots of people wish they were millionaires, but of those who want to become millionaires, very few actually believe they will be millionaires. Those that do, however, stand a far greater chance of becoming what they believe. Why? Because at a conscious and subconscious level they are doing everything they can to pursue that one objective. Now I’m not suggesting that being a millionaire should be your life’s goal; I’m just using it as an example. The point is that your underlying beliefs in what you are capable of fundamentally affect the actions you take and the choices you make.

All this may seem more like some New Age incantation rather than hard-edged business-speak, but there is good reason I mention it. Owning and running an e-commerce website is not for the faint-hearted. It is complex and demanding and don’t let anybody tell you otherwise. Be prepared for long hours, headaches and hard work, but also be prepared for more customers, a growing bank account and a sense of achievement. Your belief that you are doing the right thing is what will see you through and keep you on course for success.

Owning an e-commerce website can be a wild ride but how you handle it is totally dictated by your mindset and your beliefs. For example, many e-commerce websites fail because their owners give up – they lose confidence, interest and commitment, especially in the early days of their website’s life. It’s easy to give up if you’re struggling or faced with outright failure. However, those who believe they will succeed don’t see failure as a setback but as a learning experience – they have the right mindset and they will do well because of it.

I’m telling you this because you know that success isn’t a set of purely mechanical step-by-step processes. (If it were, we’d all be millionaires.) Success comes from your mindset: what you believe you can achieve and the expectations you set yourself. This mindset is as important as knowing how to Search Engine optimize your e-commerce website or write compelling sales copy.

The Significance of E-Books

E-Books are virtual books used to display information on any subject on the digital medium. This has made the task of Internet users easier to publish any kind of information. It is easy to create these electronic books on the Internet. This format is accessible and portable on multiple platforms. Computer users can have access to these digital books on any system with different configuration. You can open and view the digital books on the computer system easily. The original format does not change. If you create the digital book in an appropriate format, you can easily reduce the size of the file. Here, one can accommodate more than hundred pages in the electronic book. It is also easy to store and carry the digital book in portable devices like pen drive, Digital Video Disc or iPod.

Importance of E-Books:

The significance of electronic books is that they can be used for several purposes. You can use e-Books for promoting online business. An entrepreneur can write informative or promotional content for alluring the potential web visitors towards the company website. This enables you to promote the products and services online and build favorable company reputation. An e-Book can carry thousands of pages. One can make available any kind of information on the Internet through electronic books. An organization can create manuals, newsletters, reports or presentations. You can use digital books for educational purposes such as tutorials and e-notes. One can create digital books on science or medical field and on other such subjects. Universities can organize for imparting education to the distant learning students through Internet. They can provide digital books on various subjects to these students and make learning easier as well as fun. Even authors can publish their work online like poems, novels, fiction stories, rhymes and much more. Authors can also receive feedback from the readers for their work on the Internet. You can add animation or graphics along with other such content in the digital books.

E-Books can be published in a variety of formats such as PDF, HTML, Word document and much more. These formats make your task of publishing content easy and smooth. You can create e-books in different file formats and for this you can also use conversion software like word to PDF converter and make e-books creation easy and smooth.

Your "Must Know" Ecommerce Metrics

Web Analytics can be an amazing technology, but also a highly under-utilized one. Complex deployments and integrations frequently leave business users befuddled. Without dedicated staff to analyze, analytics packages more often than not collect dust.

This brief is focused on outlining the 7 most important web metrics to monitor within your eCommerce business and what to look for as it relates to your website’s performance.

Bounce rate

First on our list is the most important metric you will encounter: bounce rate. Think of bounce rate as a first impression. The definition of bounce rate is the percentage of users that leave your website after only viewing the initial page that was presented.

Bounce rate is so vital because it provides details into how you initially message your value proposition to the customer or prospect. It provides a cue to also help you identify performance issues with your site that may be causing the inflation the metric.

Bounce rates vary by industry, but eCommerce businesses should focus on getting the metric below 30%. Especially important within paid search campaigns, bounce rate will provide valuable cues into which product assortments and promotions at the category and sub-category levels of your taxonomy are doing well. This knowledge can be leveraged across the business in other categories and implemented via multi-variate testing deployments.

Email Capture Ratio

The next metric you want to track is your email capture ratio. As an online business, you probably sell some type of tangible product or service in which you monitor orders or completed information forms. Most businesses monitor their standard conversion rate, but few businesses frequently monitor their email capture rate and take a proactive approach to increasing.

With eCommerce conversion rates yet to eclipse an average of 3%, 97% of users who come to your store are leaving without buying something. Just because they are leaving however does not mean they are not interested in communicating on some level with your business. By gaining an initial step of trust through the capture of an email address, you are not only increasing the size of your house list for future marketing but you are also building a relationship with your customer and can win their business by providing them solutions to their lives.

Strive for a 7-10% email capture rate and place the sign up tool prominent in the header. Too many businesses bury their sign up tool and do not leverage rich applications that can use browser technologies such as ajax to expand a capture field over standard text in an overlay fashion.

Number of non-branded organic keywords

Make sure you look at number of monthly non-branded organic search keywords. When monitoring SEO performance, you need to first strip out the branded terms that correlate with your business. Thats traffic that you would have received without effective SEO. Then look to the number of remaining keywords that were utilized to make up the balance of the remaining natural search visits.

Why is this important? Because SEO is driven from the long tail. Sure, core SEO terms are nice but you need to capture the 4 and 5 word queries that make up the majority of Google queries each day. Long tail placements are achieved through proper site architecture and quality targeted content. Simply put, the more terms that people are using to find you, the better your site is doing in content development. Aim for a 5% to 10% increase each month within non-branded search keywords as you structure your SEO campaigns.

Shopping Cart to Checkout “Step 1″ Progression Rate

Our next metric directly correlates to the transactional process. Make sure you monitor your direct progression percentage from the shopping cart to checkout step 1. See how many of your users are bailing for price shopping and/or they see a promo code box on your site and they are going hunting for one. This type of behavior dramatically impacts your conversion rate and overall profits and steps should be taken to measure and reduce.

Consider adding the promo box at the end of the transaction for non-affiliate sessions in order to reduce leakage. Use a cookie from an affiliate or potentially a URL to trigger two versions of the cart page. By incorporating checkout abandonment tools that re-market via email, and aggressive banners both internally and externally to try and re-capture the lost transaction, eCommerce businesses can pull prospects back in the sales funnel.

Browser and Resolution Percentages

Dont forget about looking at Browser/Resolution percentages (types and sizes) when scaling your eCommerce business. Lace face it, when you sell online you are in the “looks professional…is professional” world and goo design can make even the smallest retailer seem large. If your build your site and it breaks in Safari (Mac’s browser), or the navigation breaks on Firefox 3.5 on a PC, you essentially shoot yourself in the foot.

Look at the varied browsers and resolutions that are being used to view your website. Conduct full cross-browser testing, on varied platforms, to fully notice any potential usability problems that arrive.

Average number of cross/up sells added per visit

If you are an eCommerce business, you already know that intelligent merchandising is a crucial key to success. A primary metric to help you understand performance within online merchandising is that of average cross/up sells added per visit.

This datapoint associates to your cross sell tools that integrate at the product and the cart level and measures the average number of cross-sells added to the cart per visit. The number will provide details into the effectiveness of your product recommendations and if the recommended products are actively engaging and persuading customers.

It is tough to provide a benchmark statistic for this metric since products can vary so greatly in terms of pricepoint. But look at your historical performance and consider automating this component through algorithmic third party solutions.