As Festival Fever Grips The Nation, eBay Looks To Revive Its Brand In India

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eBay (NASDAQ:EBAY) recently launched its first integrated brand campaign in India after a hiatus of three years. The emotional advertising campaign, launched at the beginning of the month long festivities in the region, is an indication that the company is now focusing on the region and looking to re-establish itself in this growing market. With e-commerce players such as Amazon, Flipkart and Snapdeal offering heavy festival discounts to attract consumers, eBay’s strategy is aimed at focusing on its large assortment of products. (Read Can A Diversified Product Portfolio Help eBay’s Growth In India?) Indian e-commerce companies are expected to generate sales of nearly $2 billion in the festival sale season and eBay does not want to be left behind.  In a promising market that could drive global e-commerce growth in future, eBay is trying to develop a competitive edge.  With the new advertising campaign, the company can connect with consumers better and attract them to its platform.

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Emotional Connect With Consumers To Gain Market Share

The top three e commerce players in India – Amazon, Flipkart and Snapdeal command more than 75% of the market share, leaving a very small pie for others players to share. While eBay had an early advantage in the region, it was overtaken by players such as Flipkart due to their better execution strategy. eBay is now looking to revive its brand in the region and instead of the popular “discount” strategy the company is working on an emotional campaign to connect with customers. The growth in e commerce sales in India is primarily from Tier II and Tier III cities in the country and with its wide assortment of products and an emotional connect these consumers should be attracted to eBay’s platform.

As eBay works towards re-establishing itself in the region, the company has taken a series of measures to resolve operational issues. Initiatives to make its platform better for buyers and sellers include resolving issues such as delayed deliveries and refunds, as well as improving customer service and seller support.  With a huge portfolio of products and operational improvements, eBay is well poised to revive itself in India. An integrated marketing campaign at the beginning of the festival season in the region can attract customers to its platform. As these consumers take advantage of eBay’s improved platform and wide assortment of products, the company’s volumes and revenues should pick up. In a fiercely competitive environment, eBay’s strategy is on the right track as it tries to carve a niche for itself, instead of directly competing with the top three players. It will only be know in future quarters whether the company in fact can establish an emotional connection with the Indian consumers and inspire the purchases needed to drive a recovery.

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