Professional Documents
Culture Documents
Submitted by
Submitted to
(Associate Professor)
December 2020
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Contents
Customer Experience Management .........................................................................................4
Introduction .............................................................................................................................4
Definition ................................................................................................................................5
Myntra ..................................................................................................................................... 10
Introduction ........................................................................................................................... 10
Vision .................................................................................................................................... 11
Mission.................................................................................................................................. 11
Objectives ............................................................................................................................. 11
Positioning ............................................................................................................................ 12
Strategy4: Social Initiatives through different CSR and other Initiatives ................................ 24
Bibliography ............................................................................................................................ 45
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Methodology
A critical review of literature available on the concept of customer experience as a construct was
carried out in the chronological order. To select the article, various databases of online journals
were investigated. For the outline and content of the research various research papers were
followed. News magazines, authentic articles and official websites were the key for gathering the
information. Economic times, Business times, Myntra official sites are some of the key sources of
information. Regular group discussion and brainstorming was conducted to finalize the strategy
and strategy model for Myntra.
Our study is about Myntra and the strategy it takes for customer retention and enhancing customer
experience. We have focused on different approaches that Myntra takes to make its customers
loyal and give its customers the best experience via use of technology, personalized solutions, and
collaborations. Some of the strategies that we came across are Myntra mall, Customer WoW, Style
Studio, Myntra coupons and many more.
Further we have formulated our own strategic practices that Myntra could adapt to enhance its
customer experience helping the brand in evolving with accordance with the constantly changing
customer expectations in todays’ times.
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Customer Experience Management
Introduction
Customer experience is the latest battleground for business. Not only is customer experience
management (CXM) one of the most promising approaches to marketing, but some observers also
contend it is the future of marketing. While practitioners have embraced CXM for its considerable
promise, marketing academicians have lagged in developing and disseminating CXM knowledge
A dominant smooth journey model makes customers' lives easier, with a cyclical pattern of
predictable experiences that builds customer loyalty over time, also known as a loyalty loop. An
alternate sticky journey model makes customers' lives exciting, with a cyclical pattern of
unpredictable experiences that increases customer involvement over time, conceptualized here as
an involvement spiral. Whereas the smooth journey model is ideal for instrumental services that
facilitate jobs to be done, the sticky journey model is ideal for recreational services that facilitate
never-ending adventures. To match the flow of each journey type, firms are advised to encourage
purchases during the initial service cycles of smooth journeys, or subsequent service cycles of
sticky journeys. In multiservice systems, firms can sustain customer journeys by interlinking
loyalty loops and involvement spirals. The article concludes with new journey-centered questions
for customer experience management research, as well as branding research, consumer culture
theory, consumer psychology, and transformative service research (Siebert, Gopaldas, Lindridge,
& Cláudia, 2020).
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Definition
“The take-away impression formed by people’s encounters with products, services and businesses,
a perception produced when humans consolidate sensory information”
- Carbone & Haeckel (1994)
“Experiences involve the entire living being. They often result from direct observation and/or
participating in the event-whether they are real, dreamlike or virtual”
- Schmitt (1999)
“An engaging act of co-creation between a provider and a consumer wherein the consumer
perceives value in the encounter and in the subsequent memory of that encounter”
- Poulsson and Kale (2004)
TCE as “enduring, engaging and fulfilling, encompassing all major levels of consumption leading
to lasting customer loyalty in the long run”
- Mascarenhas et al. (2006)
“The internal and subjective response that customers have of any direct or indirect contact with a
company. Direct contact generally occurs in the course of purchase, use and service and is usually
initiated by the customer. Indirect contact most often involves unplanned encounters with
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representatives of a company’s products, services, or brands and takes the form of word-of-mouth
recommendations or criticisms, advertising, news reports and reviews”
- Meyer & Schwager (2007)
“The customer experience construct is holistic in nature and involves the customer’s cognitive,
affective, emotional, social and physical responses to the retailer. This experience is created not
only by those elements which the retailer can control (e.g., service interface, retail atmosphere,
assortment, price) but also by elements that are outside of the retailer’s control (e.g., influence of
others, purpose of shopping). Additionally, [?] the customer experience encompasses the total
experience, including the search, purchase, consumption and after-sale phases of the experience
and may involve multiple retail channels”
- Verhoef et al. (2009)
“Emotions provoked, sensations felt, knowledge gained and skills acquired through active
involvement with the firm pre, during and post consumption”
- Ismail et al. (2011)
“The customer’s mental perception of interactions with a company’s value proposition online.
These mental perceptions, in turn, drive a set of outcomes, namely benefits, emotions, judgements
and intentions”
- Klaus & Maklan (2013)
“Comprised of the cognitive, emotional, physical, sensorial, spiritual and social elements that
mark the customer’s direct or indirect interaction with (an)other”
- De-Keyser et al. (2015)
“Customer’s cognitive, emotional, behavioral, sensorial and social responses to a firm’s offerings
during the customer’s entire purchase journey”
- Lemon & Verhoef (2016) (Schimitt, 2010)
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Importance of CEM
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Helps in targeted Marketing:
Through CEM, a company can perform targeted advertising and build robust sale strategies,
thereby attract more customers, and retain existing ones.
Gartner, Inc.’s study found that if companies fail to respond to customers on social media, it can
increase the churn rate by at least 15%.
Use AI and Machine Learning to Your Advantage and Provide Relevant Experiences-
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AI and machine learning are two buzzwords that have simplified man labor and are gaining quite
the relevance right now. Popularized by the likes of Google’s AlphaGo defeating the world
champion of the Chinese board game Go and Tesla’s self-driving cars, AI is helping build
innovative and inspiring customer experiences. Through Machine learning, a company can analyze
large amounts of data, identify customer’s behavior, and offer personalized content to
customers. With the help of AI, a company can do smart email content curation, provide better
service, and generate leads, and understand customers and offer helpful solutions. Moreover, it
helps in increasing productivity and does uninterrupted work at no extra cost. AI and machine
learning have not only simplified and facilitated the several tasks of an employee but also helped
in improving customer experience by solving their issues and offering personalized customer
experience.
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Myntra
Introduction
Myntra is an Indian e-fashion marketplace company founded in 2007 by Mr. Mukesh Bansal with
headquarters at Bengaluru, Karnataka, India. Initially, it focused on personalization of gift items.
In 2010, Myntra re-invented itself in 2010 changing its focus on the online retailing of the branded
apparel.
Flipkart acquired Myntra in May 2014 to compete against Amazon which entered the Indian
market in June 2013. Also, it aided Flipkart in competing with other retailers like Future Group,
Aditya Birla Group and Reliance Group.
Myntra act as a one stop destination for all the fashion and lifestyle needs. As its India’s largest e-
commerce fashion & lifestyle store, Myntra aims at providing a hassle free and enjoyable shopping
experience to shoppers across the country with the widest range of brands and products on its
portal. The brand is making a conscious effort to bring the power of fashion to shoppers with an
array of the latest and trendiest products available in the country.
Myntra understands its customers’ needs and offers them with a wide range of apparel, accessories,
cosmetics, and footwear from over 500 leading brands including both Indian and International
brands. Some of its prominent brands include Adidas, Nike, Puma, Catwalk, Inc 5, United Colors
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of Benetton, FabIndia, Biba, H&M and FCUK to name a few. Myntra has also come up with its
own private labels such as- Roadster, Sher Singh, Kook N Keech, Dressberry and ETC.
Myntra’s Value Proposition is all about giving customers the power and ease of shopping for
fashion and lifestyle products online. Myntra offers the largest in-season product catalogue, cash
on delivery. 30 days return policy and 100 percent authentic products. There is also a dedicated
24x7 customer service team for handling all customer concerns at any point of time (Myntra,
2020).
Recognitions:
• Awarded ‘Fashion eRetailer of the Year 2013’ by Franchise India- Indian eRetail Awards
• Awarded ‘Best E-commerce Website for 2012’ by IAMAI- India Digital Awards
• Awarded ‘Images Most Admired Retailer of the Year; Non-Store Retail’ for 2012 by
Images Group
• Awarded ‘Best E-commerce Partner of the year 2011-12’ by Puma India
Vision
To make the world a more stylish, colorful, and happier place (Myntra Profile, 2020).
Mission
Use technology to democratize fashion & lifestyle and help people look good. Myntra is a
meritocratic, non-hierarchical, and fun workplace. Our employees are empowered with a high
degree of ownership and accountability. We focus on the growth and development of our
employees that help them unleash their full potential (Myntra Profile, 2020).
Objectives
• Provide 100% on-time delivery.
• Provide superior customer satisfaction & service.
• Regular review of the effectiveness of the Quality
• Myntra adopts procedures and disciplines to ensure that the system is effectively
implemented by undertaking relevant skills training and conducting appropriate quality
awareness training
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• Responsibilities for quality are established by communicating these responsibilities clearly
to all employees.
• The policy and procedures continue to be appropriate by initiating regular reviews to check
its effectiveness and ongoing relevance
• The company regularly review the needs and expectations of the customers and initiate
continuous improvement activities to meet these expectations
• The system monitors and measures its processes for conformity & continually improve
process for better productivity
• The system determines the sequence and interactions of processes and determines the
criteria and methods needed to ensure the operation and control of processes
Positioning
• Myntra is positioned as an online fashion and lifestyle shop in the minds of people which
especially cater upper middle to affluent class.
• It will push the fashion quotient even further and highlight Myntra as a unique style and
personality brand.
• It has used social networking sites to expand the customer base.
• Positioned itself as a new age fashionable brand.
• Viral marketing to increase the popularity coupled with discounts and referral discounts.
• Cross campaigns through emails, cinemas, and homepage. Above the line
advertisements.
• Does not sell DEEPLY DISCOUNTED PRODUCTS
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Company Practices & Strategies
Strategy1: Enhancing & Strengthening Consumer Connectivity & Loyalty
1. Myntra introduced structured programs to surprise their customers with wow experience
based on the inputs from the customer experience team. This has led to a much more
meaningful relationship between the brand and the customer.
Once an order is placed online, there are two important touch points for a customer, one at
the delivery and the other at customer service. Sachin explains, “Out of the two, it’s during
the delivery that a customer meets a representative from the company. Faster delivery,
better condition of goods and a smile on the delivery boy’s face become the gratification
moments for the customer. But more than that, it builds the perception about how he/she
will be treated in case of any problem.” For the same reason, all the delivery guys have
been given Myntra gear from helmet to the shoe. This instills the belief in the customer
and establishes a trust about the delivery person belonging to Myntra (Soni, 2014).
2. Myntra’s 30 days exchange policy- While online shopping, customers face issues related
to sizing quite often, and Myntra’s customer experience team found that at least 80% of its
customers face this issue. Their team realized that the process of returning and re-ordering
is time-consuming and requires more resources since the logistics team must visit the
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customer twice. Therefore, Myntra introduced the 30 days exchange policy which turned
out to be extremely convenient for both the team and the customers (Soni, 2014).
3. Customer ‘WoW’ campaign- Myntra launched this campaign for the purpose of tracking
customer reactions and feedback to work on those feedbacks, and thus, give them a good
shopping experience. In the campaign, the team picks 150 customers (including loyal,
random, and dissatisfied customers) daily and sends them various things like a bouquet of
flowers, a box of chocolates with a personalized note, the latest copy of a fashion magazine,
etc. Another initiative they have added to this campaign which is soon going to be a
standard feature is, customers in Bangalore who have shopped for bottoms like jeans &
trousers get an option to have the length of the trouser altered to their liking. By listening
to the customers and incorporating the feedback to their campaigns, Myntra engages the
customers and builds trust within them (Soni, 2014).
4. The customer experience team makes sure that over 90% of complaints from phone, email
or social media get a human response (and not an automated one) within 2 hours (Soni,
2014).
5. Myntra has launched a loyalty rewards program called Insider which will be based on
points, rewards and ‘experiences’.
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Users can earn Insider points by browsing and buying on the Myntra app and collected
points can be redeemed either for offers on Myntra. This will include priority customer
care, early access to sales and launches. Points can also be redeemed for subscription to
Myntra’s partner services like offers on Zomato Gold subscriptions. Other partners include
Big Basket, BookMyShow, PhonePe, Eros Now, Zoom Car, Gaana and others.
The program will categorize Insiders into tiers — Insider, Elite, Select and Icon — based
on brackets of points collected. Each higher tier will seemingly get more perks and
experiences. Myntra-Jabong CEO Ananth Narayanan said that the company hopes to have
10 million ‘Insiders’ in a year (Jalan, 2018).
6. The fashion e-commerce retailer said that it plans to set up 30 experience centers in next
5 months across major cities where consumers can receive order and try on items, in its
endeavor to enhance customer experience.
Started as a pilot a few months ago in Bengaluru, the Flipkart-owned firm has now set up
five experience centers in Delhi-NCR, Bengaluru, and Hyderabad. The online marketplace
has opened these centers at the right time to facilitate its End of Reason Sale (EORS).
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“We started the pilot a few months ago with an experience center in a Bengaluru tech-park
where we receive many orders. At these centers, we will offer value-added services like
order pickup, instant returns, trial room and alterations of products,” Myntra Jabong Head
Amar Nagaram said.
This will not only facilitate better customer experience but will also bring down the cost of
returns as the consumers can now receive faster replacements, Nagaram added. He
confirmed that Myntra aims to expand the number from 5 to 30 in the next few months
across various metro cities (Apparelresources, 2019).
7. One of the biggest successes that Myntra has had using QuestionPro’s survey software
is where micro surveys allow them to gather quick customer feedback on various stages of
a customer’s shopping experience. This allows them to get some unique insights into
shopping cart abandonment, where customers leave their site and how to take corrective
data-oriented measures that give real results.
But Myntra’s customer outreach using surveys are not just about gathering data, it is about
giving them a voice to opinion their experience and bringing about real changes in the
platform that makes it more convenient for them to shop.
Myntra is also one of the brands which cultivates a fierce brand following and loyalty
because of their dedication to customer service which reflects in the pro-active nature of
their surveys. This allows them to echo a clear message even to first time shoppers – “It’s
about you”.
QuestionPro’s integrated survey solution allows Myntra to ask their customers the right
question at the right moment – How their shopping experience was and how they can help
them better. This messaging does wonders for their brand image and continues to help
foster stronger customer-brand relationships and cultivate even greater loyalty among their
shoppers (OestionPrp, 2020).
8. The collection at Myntra is driven by selection as they believe that a great selection leads
to a great experience. Sachin says, “Great selection makes it quite easy to look good which
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in turn leads to a great experience. We might not have each SKU (stock keeping unit) of a
product, but we’ll make sure that any product which connects with our audience is in
stock.” Another advantage enjoyed by Myntra (over any brand’s physical retail outlet) by
virtue of being an online shopping store is the unlimited shelf space. This gives customers
a variety of options to choose from.
9. Myntra was founded by some IIT passed out graduates in the year 2007. It was not the first
company in India to work on the e-commerce platform. So, the competition was high. The
strategy it pulled up for success had been their marketing mix. They worked on the niche
of garments and fashion. Gradually they covered all segments of the same and created a
completed coverage of all lifestyle items. It made them a brand in Indian Market by 2014
(Brandyuva, 2019).
10. Logistics had remained the key success area for Myntra too. They expanded fast to cover
around 9000 Pin codes in India and thus created a sensation to its competitors. The distance
between physical buying and buying from an e-commerce platform can be shortened with
a highly nurtured logistics. Myntra ensured the same to retain its supremacy in the Fashion
world of India (Brandyuva, 2019).
11. Myntra coupons- Myntra has several coupons for all its customers to make their shopping
experience budget-friendly and give them value for money. By using these coupons,
customers can save significant amounts of money and get great deals on a wide variety of
brands.
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• Myntra coupons for specific styles: Customers can avail this offer on a particular
section/ category of apparels and accessories. The items that fall under this section
can be identified with a mention of the said discount in the product description
(Myntra, 2020).
• Myntra coupons for products sitewide- General types of coupons applicable to
any product on the website provided the cart meets the minimum order value.
1. Artie, Robot character by Myntra - Myntra joined the bandwagon of companies using
artificial intelligence and analytics to enhance consumer experience by introducing Artie.
Artie is a robot character which has designed Myntra’s Moda Rapido range of in-house
brands. Based on recent and popular purchases on the website, Artie offers new styles and
designs to its customers every week. Currently, Artie designs men’s t-shirts and jeans
which are already the most sold and will soon expand to womenswear as well (Brandequity,
2012).
2. Tie- up with Dassault Systems- Myntra tied up with Dassault Systems to run a 3D
experience for its customers and cut down costs and reduce time to bring samples online.
It enables teams inside and outside the company to engage more efficiently in social
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innovation, seamless collaboration, connected design, and supply chain coordination. To
advance itself technology-wise considering the growing e-commerce boom in India,
Myntra decided to tie up with Dassault Systems, which is the software arm of the Serge
Dassault-run group widely known for aviation. The company’s solution/ initiative is called
'my collection for fashion' which allows digital marketplaces to easily make models, virtual
showrooms, and study usage analytics. By providing a 3D experience and being able to
bring products faster to its customers, Myntra is not only upgrading itself technology-wise
but also providing an enhanced customer experience (DATAQUEST, 2015).
3. Mobile app- After starting off as an online platform, by 2016, Myntra had created its own
app which gave the company an edge over its competitors. By expanding its business and
venturing into several platforms, Myntra was able to gain a wider customer reach and
upgrade themselves with technology (Brandyuva, 2019).
4. Myntra taps Microsoft Cloud to improve customer experience - Myntra has partnered
with Microsoft time and again for the sole purpose of creating a seamless and personalized
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experience for its customers. The different aspects Microsoft has helped with include
supply chain and inventory management, site capabilities and now Azure- for cost-
effective computing. With the help of the technology, Azure’s, elasticity, and
seamlessness, Myntra has seen a 50% increase in the number of orders it receives. It has
helped Myntra scale for big spikes that occur routinely during festive seasons.
Through Microsoft Power BI, Myntra has been able to visualize and act on real time
feedback. This has helped in understanding customer behavior and delivering personalized
products, marketing, and service according to their wants (Infotechlead, 2020).
5. ‘Style studio’, a virtual dressing room aimed at making online shopping more interactive
for shoppers, was launched in October 2012. By launching it Myntra joined the league of
e-commerce players such as Zovi.com, Lenskart.com and Kingschest.com, which have
already introduced this feature (Kapoor, 2014).
6. Ashutosh Lawania (Co-Founder & Head – Sales & Marketing, Myntra.com) believes that
“Technology can be a game changer in the crowded e-commerce market”. Myntra relies
heavily on technology to boost its market share. On the social front, Myntra was the first
among e-commerce firms to initiate a tool called ‘Get Satisfaction’ which integrates all
queries and reviews into a single platform and builds a data bank of answered queries for
future reference (Kapoor, 2014).
7. Another initiative from Myntra is The Myntra-Mall. Through the Myntra-Mall Official
Brand Stores (OBS), brands will be able to connect with the customers right at the
discovery process and generate sharper consumer insights that pave the path for further
development and growth. This will strengthen the brands online presence by driving user
engagement and establishing their unique brand identity. Myntra-Mall will now give them
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the opportunity to integrate offline touchpoints and create their own exclusive online
presence.
In its initial phase, they have launched the digital mall in partnership with 30 brands that
will showcase their collection in a mall-like setting under one roof. Each brand will have
their customized and personalized space and design. This allows them to run their own
content and create a signature experience for the customers independently.
Myntra Mall is just the solution to make one’s discovery process interactive, smoother, and
as close to the real thing as possible! Shoppers will also be able to easily view and pick
various offerings from their brand of choice, including new launches, latest collection, best
offers, bestsellers, popular categories, latest trends, and more (Myntra, 2020).
2. Myntra has included style icons in Advertisements and Promotion for its expansion.
They marked themselves different, by choosing the style icons from Bollywood superstars
and sports personality as their brand ambassadors. Their strategy of marketing, the
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promotion was backed up highly by the huge stock of over 150000 products from over
1000 brands. This made them awarded to be the best E-retailer in the year 2012 and 2013
(Brandyuva, 2019).
The show will be judged by Bollywood actress Sonakshi Sinha and leading celebrity stylist,
Shaleena Nathani. The winner of the show will get the opportunity to become a key face
of Myntra on social platforms and host shows on the app and Zoom TV (Martins, 2019).
4. Bollywood celebrities' fashion lifestyle play a crucial role in consumer decision making in
India and to take leverage on the same Myntra launched concept of Star N Style. This
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concept provides consumers a peek into the personal style of the celebrities. Consumers
get inspired by the fashion statement of celebrities and flaunt in the look of their favorite
stars. The Star N Style is quarterly brand property with a varied pool of influencers.
In July 2012, Bollywood actress Kalki Koechlin launched Myntra.com’s first fashion
property called ‘Star n Style’ at a glitzy event in Delhi. Koechlin’s handpicked selection of
apparel and accessories from over 350 brands were made available on Myntra.com. In
November 2012, Myntra introduced the second edition of Star N Style with the gorgeous
Chitrangda Singh. In May 2013, Bollywood actress Genelia Deshmukh announced the
launch of their third edition of fashion property Star N Style.
Myntra has started a teaser contest on Facebook and Twitter to guess the next celebrity for
Star N Style. This will help in Customer engagement (Kapoor, 2014)t.
5. Myntra has also introduced the concept of personalization to cricket which is one of the
biggest passions of India. This will provide Cricket fans and enthusiasts to see themselves
in the jerseys of their favorite teams by just adding their names and jersey numbers to the
jerseys of their team.
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In 2008 Cricinfo, the world’s leading cricket website tied up with Myntra.com to offer
cricket merchandise. Through the customized Cricinfo - Myntra portal, cricket enthusiasts
had an option to customize T-shirt, mug, mouse pad or poster. Caricatures of famous
cricketing stars were up for grabs across the range of merchandise besides an innovative
series on quotes.
In 2009 Myntra in association with Reebok (India’s largest sportswear brand) launched a
range of personalized Reebok ‘Official Team jerseys’ for the second season of the Indian
Premier League (IPL) (Kapoor, 2014).
1. Myntra has formed major collaborations with NGOs and GOVT. agencies as part of CSR
activities to give back to society. Myntra has formed a CSR club and in association with
the voluntary organization Goonj, which has been channelizing urban surplus material to
rural India as a powerful development resource for over 2 decades; and has helped make
this initiative one of the largest ever collection and distribution drives. The creative team
put together a fantastic marketing plan based on the theme “Old is gold”.
2. Myntra has also made partnership with MARD and provides exclusive access to MARD
T-shirts. In partnership with Salman Khan's Being Human to sell their merchandise and
has committed to contribute towards education and healthcare of underprivileged people
supported by Being Human.
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3. Myntra has initiated Women’s Mouth to celebrate the spirit and strength of Women. It
conducts sessions for educating women employees in self-defense, art forms and
recognized conflicts. In March 2013 Myntra organized a mela in association with AWAKE
(Association of Women Entrepreneurs of Karnataka) which featured products made by
women entrepreneurs and few other smaller NGOs at its campus. Myntra has also joined
hands with Govt. to empower the weaver community (Kapoor, 2014).
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Proposed Program
Conceptualization
Myntra can revolutionize the customer shopping behavior with the implementation of Scan & Go
in its already advanced Physical Stores. Myntra is already working on bringing the futuristic brick
and mortar stores in every part of the country. Its initial proposal is for setting up 30 stores
throughout the country providing a unique and futuristic shopping experience to its customers. In
these stores we are proposing the implementation of Scan & Go System with indoor GPS system
to achieving the next level of customer satisfaction.
Scan & Go self-checkout has been on the rise in the past few years, with its promise of lower labor
costs, enhanced customer experience and satisfaction (with no more checkout lines) and even more
data and insights to shopper behavior in-store. Scan & Go along with indoor GPS system provide
an ultimate experience for the in-store apps but also opens opportunities for retailers to further
experiment. Scan & Go system is much cheaper than implementing the earlier popular concept of
self-checkout stations and is also easy to manage (Innocenzio, 2018). It is observed that 43% of
the customers would rather try scan-and-go than wait in a checkout line (emarketer, 2019).
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The emergence of COVID-19 pandemic has brought some unexpected changes in shopping
experiences. As the focus for the brick & mortar stores has been on maintaining social distancing
and getting the customers in and out of the stores swiftly. Scan & Go has become an integral tool
in ensuring that as it helps in achieving the norms of social distancing while minimizing health
hazards like standing in lines and unnecessary contact. It has come up as an ideal solution for our
pandemic shopping reality.
Planning
The Myntra’s mobile App will be updated with a Scan & Go segment where shoppers scan items
with their respective smartphones and then will easily pay through the app as they pay for any
other product shopped through online medium. Thus, removing the need for standing in a line.
Customer Journey would start from downloading the Myntra App and enabling the Scan & Go
section, linking it with the preferred mode of online payment. Every time the customer enters’ the
store one must scan the product through the phone’s camera. The app updates the virtual cart as
customer keeps on scanning the products and when its finally done customer pays through the app
and walks out of the store. There are other factors that are needed to keep in mind while
implementing the Scan & Go technology enlisted below.
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Implementation
While entering the store shoppers should be able to easily locate the products to utilize scan
& go app.
So, the app should be equipped with a product search feature. It could even cite the aisle
number of the item in question or a navigate button should be embedded guiding shoppers
to their desired product in real time. Customers do not need to run back and forth across
the store looking for the products, just scan the product and walk out of the store without
any need for the check out line.
It is also observed that the main reason for abandoned purchases has been the fact that the
customers are unable to find the products. 67.3% of the times shoppers abandoned their
purchases because they could not find they product they were looking for (Taylor, 2018).
The addition of navigation helps in ensuring the intended purchases which were otherwise
abandoned.
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2. Products offered should be effective and generate additional revenues
Customers should receive prompts for promotions and offers while they pass through the
related product. For example: If a customer receives a prompt for a discounted T-shirt
before entering the store then it is unlikely for the customer to remember it while in the
store so what should be done is that the prompt should be received by the customer while
passing through the T-shirts on discount. It is observed that More than half (54%) of global
consumers shop with retailers that deliver offers in-store via smartphone because they want
offers the moment, they are shopping (Taylor, 2018). In-store GPS already offers the set
up for location-based promotional marketing and combining this with Scan & Go it could
be used in bettering the customer experience further. For example: customer scanned a pair
of pants, so the app sends the customer a coupon for the top complementing the pants.
As the indoor GPS monitors when the customer is lingering in front of a shelf, so one can
assist the customer decide by suggesting which product to pick at just the right moment.
This can also help the brand in monetizing- as the customer is focused more on saving and
less to brand names, it is a great opportunity to offer one’s private label products (Roadster,
Dressberry etc.).
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3. Store staff should not be focused on surveillance alone
Fear of theft, shrinkage and fraud has been the main reason why many retailers have
abstained themselves from “taking the plunge” of offering fully automated scan & go
technology (Forbes, 2020). As one of the benefits of Scan & Go is the reduced labor costs
and free up the time of store associates. If the staff members are going to spend all their
freed-up time on surveillance, then it defeats the purpose of Scan & Go.
Now the fraud detection algorithms have become more advanced and now most Scan &
Go companies have systems in place to alert employees to mistakes or potential theft. For
example, Oriient’s Indoor GPS monitors its customer’s journey, collecting additional data
detailing the location in which each item was scanned, the path the customer took, as well
as the time spent in each section of the store – that can also be used for giving Machine
Learning algorithms more valuable indications with which to detect potential theft or fraud
(Oriient, 2020).
Everseen uses a combination of artificial intelligence, computer vision and big data to
detect abnormal shopper activity. It secured a deal with Walmart last year. Walmart is
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efficiently tracking checkout theft with AI – powered cameras in 1000 stores (Peterson,
2019).
ThirdEyeLabs focuses on video-based analysis to detect concealment and checkout
theft. All these technologies integrate into existing technology and operate in real time to
help companies learn to identify shoplifting, sweethearting, unintended errors at
checkout, concealment, and theft detection (Oriient, 2020).
Keeping track of product location in a store has been quite a challenge for the retailers.
Shelf-specific locations of items in-store are constantly shifting. Use of planogram and
data-driven space management software are key to retail success in present times
(BlueYonder, 2020).
The software receives additional indoor location data collected from each product
scan (using an Indoor positioning system), through which data scientists can gather more
accurate, detailed and constantly updated information on specific product locations in any
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given store. And leverage the data for understanding the impact of layout and placement
on shelf performance.
The same technology that helps in keeping track of the products also helps in real time
updates on changes in changes in production locations, ensuring that no time is wasted in
searching for items by the store staff. Thus, optimizes product picker’s performance.
Performance Monitoring
“Just Walk Out” is the experience that the customers’ are craving. Amazon Go is setting a standard
in the field. Many other retailers like Macy’s and Kroger are also coming up with the similar
solutions. 60% of internet users worldwide would prefer to shop at other retailers if they offered
an Amazon Go-like experience as stated in the Research by MuleSoft. Not surprisingly, this
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method resonated most with the 18-to-34 group. But close to half of the 55-and-older cohort also
claimed it as a preference (Pucci, 2019).
Some stores are enticing the customer in purchasing more by sending them coupons and offers
while they are shopping. Shoppers are throwing more into their carts says Executives from B.J.'s
and NCR (Innocenzio, 2018). Most companies do not give the exact statistics regarding the scan
& go service, but Dusty Lutz of retail technology company NCR Corp., which works with major
grocery clients, says scan-and-go mobile shopping accounts for 5 to 15 percent of customer
transactions, based on an analysis of 40 retailers (Innocenzio, 2018). The Walmart Scan & Go has
a review of 4.5/5 from which it can be inferred that both the customers’ and company are befitting
from the technology (Walmart-Scan-Go, 2020). Similarly, all 26,000 reviews of Sam’s Club Scan
& Go are almost all 5 stars (Medium, 2018).
Scope
In conclusion the advantages of Scan & Go are numerous along with endless possibilities. The
biggest value addition from Scan & Go is it saves time and resources. Customers are becoming
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more adaptable and responsive to new technologies. The question is not ‘if’ Scan & Go will
become a norm rather it is the matter of ‘when’.
With the help of Scan & Go it is easy to collect and analyze data regarding customer choices and
preferences which in return can help the company in establishing and formulating Unique
Customer Experience models for the ever-changing needs of the customer. Smart checkout apps
will also act as gateways to technologies like Bluetooth beacons and augmented reality.
Moreover, with the pandemic the contact less, shopping has become the need of the hour and Scan
& Go is an essential tool for ensuring that.
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Practice 2: Application of Virtual Reality in Store
Conceptualization
China's on-line retail group Alibaba launched virtual reality (VR) shopping center, Buy+ during
the last November. Virtual shopping sprees to make shopping experience more enjoyable. Users
could browse products from bags to shoes to lingerie and call for virtual models to showcase the
apparel and accessories on a catwalk. Shoppers may then cycle through additional features with
more product detail and add an item to their shopping cart or buy them and pay directly in a virtual
world, according to Director and CEO Zhang Yong in Hong Kong (Yong, 2019).
Planning
This VR technology will provide First mover advantage to Myntra in the E-commerce retail of
India. It will blend the Online and Offline shopping experience together. It allows customers to
browse 3D images of products and make real-time payment in a virtual mall as if they were
shopping in the brick-and-mortar store. Shopper can browse through a wide variety of
commodities with detailed specifications and features. It will make possible for the consumers to
purchasing without leaving home.
In addition to that it will also help the brands create and publish contents through celebrities’ live
shows and interaction to increase sales during the shopping festival, cover major digital media
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marketing platforms to promote them. It will also be allowed brands that do not have physical
stores to reach a broader pool of customers.
Implementation
Virtual Reality will integrate both physical and feelings into the online buying experiences. To
experience the same must rely on big expensive HTC Vive or Oculus Rift or simple cardboard VR
headset and smartphone.
Myntra needs to imbed AR infused shopping apps perfectly blending the real-world with 3D
images for a result that looks like something straight out of a big budget science fiction movie.
Turning millions of products of Myntra’s e-commerce platform into 3D models. Shooting and
production 360 view of the product with proper scanning and calibration. This can be an expensive
and long process as most products are sold by small and medium sized sellers.
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For example: To bring this experience to life Alibaba has acquired a 3,200-square-feet ‘futuristic
shopping district’ which will be assembled inside a building along scenic West Lake in Hangzhou,
China. Similarly, Myntra can also implement the same model in its upcoming futuristic stores.
Technical advancement to provide smooth connection with VR headset and making is more user
friendly. Development of software to allow to test out a virtual dress to fit different sizes and
achieve it on a scale.
Paying using VR
Expected to be launched by the end of this year, VR Pay, as the service is called, will allow virtual
reality shoppers to browse through VR shops and malls, and pay for things simply by nodding
their head. There is no need to remove the headset and reach for their cards.
Shopping identity will be able to be verified through authenticated account logins on connected
devices with passwords, or using voice identification technology designed to recognize unique
voice patterns of a person
Performance Monitoring
It is an opportunity for retailers to test-drive new initiatives with a young, tech-savvy audience. 76
percent of people who have used Buy+ so far are under the age of 36.
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Some find this VR experience by Alibaba as Strange and lonely experience of shopping. “To shop
in Alibaba’s virtual reality universe, you stare at the thing you want. For instance, a Betsey Johnson
handbag at Macy’s, or a bottle of Head and Shoulders at Target. Both are marked with a blue dot
not unlike a sniper’s laser beam. Gaze at the dot long enough, and the shampoo will leap off the
shelf and hover in mid-air, spinning like a snack on a lazy Susan. Bob your head a few times, and
you’ve just paid for the item, as if the transaction happened entirely in your brain” said a shopper
(Hines, 2016).
Looking at customer experience and growth of the retail sector the evolution from 2D to 3D is
unavoidable. Once customers get used to consuming and interacting with certain content format,
it would be hard to go back.
Scope
Wearing their 3D glasses, a customer can simply walk around a mannequin in an online
store. They can inspect a garment in detail, from all sides.
However, there is much more to offer than simply that. For instance, if a customer is refurbishing
their home and can ‘t quite picture how a new armchair will look in their living room, they can
simply upload a photo of the room. The rendered environment will then select the right colors and
virtually add the new furniture to the room
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Practice 3: Offering discounts to customers in exchange for previously owned
garments focusing on Sustainability
Conceptualization-
A solution to counter the textile waste epidemic that is happening around the world today by
offering people a platform to donate clothing that they were bored of rather than
discarding/throwing them away. Myntra can offer a particular discount to customers in exchange
for previously purchased/owned Myntra garments in any condition. The garments will then be sent
to a facility that will separate the products into categories: re-wear, reuse and recycle. After this,
the garments will be used to manufacture other garments, customized, sold as secondhand goods
or broken down into textile fibers to manufacture other products. When customers are offered this
scheme, which includes donating Myntra’s products itself and attaining a discount on new
products, the cycle of continued purchasing will occur. This method will not only help in reducing
industrial waste, achieving greater ecological integrity but also engage the customers in a manner
that they will be contributing sustainably to the environment.
Several brands have adopted textile recycling programs that work with third-party companies
equipped with the appropriate resources for turning used fabric into new garments thereby
significantly reducing their chances of ending up in landfills. Consumers of fashion products are
increasingly aware of environmental protection, social responsibility, and economical
39
sustainability, the huge sales amount has raised serious issues on the sustainable development of
fashion retailing (Statista, 2020).
Therefore, with the introduction of this initiative, Myntra will be able to cater to the customer’s
and the environment’s needs.
Planning-
To effectively carry out the practice, Myntra must focus on certain aspects like advertisement of
this initiative, the process of collection of products which will be recycled, making sure the
products collected are from Myntra, providing particular discounts or coupon codes to the
customers, supervising the process of recycling/reusing the products collected, etc.
The cast-off clothes can be re-sold as second-hand clothes. However, if they are not in the
condition to be resold, the clothes will go to textile recycling firms, which turn former t-shirts and
dresses into textile products like dish rags, make them into insulation for cars and houses, or use
them to "produce energy."
The different brands which have successfully undertaken similar sustainable practices as part of
their recycling program offering incentives to shoppers are-
H&M
Shoppers can bring apparel products in any condition and from any brand to the store and avail a
15% off coupon which will be applicable on their next purchase. Along with this they launched
the clothing conscious collection initiative worldwide in 2013. Through such methods, they were
able to promote sustainable concepts in ethical consumers in retailing (H&M, 2020).
Figure 23-from left to right- Box consisting of donated clothing, H&M Conscious coupon offering 15% discount, Tag of a
garment from their sustainable clothing line (Yang, Song, & Tong, 2017).
40
Levi’s
Levi’s partnered with global solutions provider I:CO in 2014 to accept clothing and shoes in any
condition in exchange for 10 percent off Levi's purchase. Recently, they even partnered with
Cotton’s Blue Jeans Go Green program and offered the scheme in which- customers can bring in
denim from any brand and receive 20 percent off any one Levi’s item. The denim will then be
recycled and used as material for building insulation, a portion of which will go toward
constructing libraries, hospitals and schools (SourcingJournal, 2019).
Figure 24-An initiative by Levi’s to let customers swap a new pair at $359+ by donating your old denim jeans/denim skirts* to
Levi’s stores (Levis's, 2020).
Reformation
They launched their online recycling program, RefRecycling, in 2014.
Customers can make a box of their pre-owned clothes, add a printout of the shipping label which
can be obtained from Reformation's website and drop it off at the nearest post office or schedule a
home pick-up. Customers can even check about the status of their products through their customer
profile. Another brand which accepts used clothing is Zara (SourcingJournal, 2019).
Implementation-
The whole idea behind this initiative is to reduce the textile waste that goes into landfills every
year and causes carbon emissions. By doing this, Myntra will be helping sustain the environment
and build its brand personality in that aspect. Quite often the discarded clothes are reusable, these
can be re-sold and marketed worldwide as second-hand clothing. The garments which can’t be re-
41
used can be broken down and get a new chance as textile fibers or are used to manufacture products
such as damping and insulating materials for the auto industry. Moreover, by offering a discount
on their next purchase, Myntra will be attracting new customers to their website while retaining
old ones. With the help of this initiative, green customers, who are concerned about the
sustainability of the environment will also be targeted. Undertaking strong actions today with the
motive being creating sustainable solutions to the textile waste epidemic and conserving the
environment, will help in keeping Myntra relevant and competitive in our rapidly changing world.
Myntra can announce their initiative through advertisements, social media, apps, etc. as a part of
their sustainable strategy.
How it works- Customers can either drop their unwanted clothing previously owned/ purchased
from Myntra’s brands (including any apparel ranging from T-shirts to socks) in the recycling box
at one of its experience stores and avail an appropriate discount coupon (depending on the quantity
of clothes) on the spot.
It can also be done through their online website, in which customers will be able to send across a
box of their pre-owned clothing attached with a printout of shipping label (which will be available
on the website) and drop it off at the nearest post office or schedule a home pick-up.
The Myntra associates will then check that the pre-owned garments are from one of Myntra’s
brands and according to the quantity, will provide the appropriate online coupon code which can
be used on their next purchase. By providing such coupons and discounts, a customer will be
encouraged to donate their clothing and will in turn, be helping in sustaining the environment.
The pre-owned clothing will then be sent to a third-party company equipped with the appropriate
resources to recycle, re-sell or upcycle garments. Myntra can also open their own sustainability
line consisting of these recycled garments. For example, H&M has actively involved itself in eco-
fashion by producing a ‘Conscious Sustainability Collection’ line made of eco-friendly and
recycled materials (Shen, 2014)).
If the pre-owned clothes are in good quality, Myntra can also donate them to different charities.
Performance Monitoring
Through the following examples of companies, we can infer that considerable amounts of
garments were re-used, re-cycled, thereby the waste generated by companies was minimized.
42
Kathleen Talbot, Reformation’s vice president of operations and sustainability, told Rivet the
program has been a major success. The brand’s goal for 2019 was to reuse or recycle at least
100,000 garments, and at the end of September, it had already hit 311,361 garments. That is the
equivalent to saving 2,462 metric tons of CO2, 24 million gallons of water and 194 metric tons of
waste (SourcingJournal, 2019).
With the help of its sustainable initiatives, H&M was among the Top 5 in Fashion Revolution’s
Fashion Transparency Index. H&M was also able to minimize waste- 0.552% of their total product
assortment was reused (including charity donations) or recycled due to the products being faulty
(0.453% in 2018). — 0.029% of the total product assortment was destroyed (0.052% in 2018). —
57,004 tonnes of waste handled in H&M Group distribution centers, of which 91.5% was recycled
or reused. — 62% of H&M Group stores have sufficient recycling systems in place.
The company was also able to acquire just over 57% recycled or other sustainably sourced
materials from customers in 2019. (H&M Conscious Action Sustainability Report (Sustainability
Performance Report, 2019).
By conducting sustainable practices, companies were able to help contribute in sustaining the
environment by reusing, re-cycling, and re-selling garments, therefore, if Myntra is able to
effectively perform these practices, it will be able to do the same. Since the initiative is focused on
creating a change towards circular and climate positive fashion, a whole new segment of
customers, who would like to contribute towards sustaining the environment, will be tapped.
Moreover, by providing such coupons and discounts, customers will be encouraged to donate more
and come back to the website to purchase new garments and the cycle will continue. This will help
43
in establishing customer engagement and connectivity, thereby, not only retaining old customers
but also attracting new ones. Thus, increasing the consumer base for the brand.
Scope
In the future, Myntra can identify new ways to reduce, reuse and recycle production waste which
can make a significant contribution to a circular fashion future. Some initiatives they can take up
include- providing transparency and updates about the clothes donated by customers, introducing
their own sustainable collection line, and creating a new section on the platform where second-
hand clothes can be purchased. (thrifting)
44
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