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New Advanced Address Verification Services in India

At GDC we are continuously searching the globe for new partners, new countries and new services for our customers; we enjoy telling the stories about our discovery and availability of these services!  We also work with our Partner Community to add additional capabilities to existing Worldview countries, and we are excited to announce the availability of Advanced Address Verification for India.

Our global expertise tells us that India is the most challenging country to provide great Address Verification due to the size of the country, the complexity of address information, and the regional variations of address information.  We hear from our customers and read recent studies that project tremendous opportunity in India for companies that are using the best available Address Verification solutions for eCommerce, Finance, and Logistics business problems.

Working with our premier Indian Partner, our Advanced Address Verification for India provides you with the most reliable solution for interpreting Indian Addresses.  Do you know that across India there are over 400 different building descriptors?  We do.  Our highly configurable solution reliably parses, interprets and verifies all of the components of an Indian address – road differentiation, sublocalities, localities, pin codes, buildings, building numbers, wings, floors, and more.  We can turn on additional custom capabilities to meet the needs of your business problem – delivery flags that set shipment expectation, corporate address indicators, and rural/urban coding.

We are always excited to open up additional services for our Worldview customers. If you want to understand more about Advanced Address Verification for India and discuss the challenges of addressing in India, give us a call. We’d love to help expand your Worldview.

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GDC’s Integrates New India Address Partner into Worldview

This month GDC welcomed to the consortium a best in-country address validation solution for India, an exciting addition to the Worldview global platform. India is the world’s second largest country in terms of population, its consumer class is growing by leaps and bounds, and rising income is creating an appetite for eCommerce goods. Internet orders are literally doubling every few months. According to Morgan Stanley estimates, Indian online sales will grow from US$3 billion in 2013 to US$100 billion in 2020.

But its address infrastructure is notoriously under-developed, and this creates massive headaches for eCommerce companies that want to ship products to Indian customers. They’re afraid of the risk that comes with the unreliable address services they get from the generic global verification systems (a topic we covered in detail in my Open Letter last month). They want to sell their goods to this massive consumer class in India, but they’re hesitating because of the costs that come when you can’t verify addresses with confidence. Like mis-deliveries, ship-backs, lost shipments, credit card chargebacks, and frustrated customers, to name a few.

That’s why we’re excited to offer this new data partner in India. As a Mumbai-based business, it’s a truly LOCAL solution providing LOCAL intelligence. The company has enriched India Post address data by layering in alternative sources and adding business logic that helps resolve the most common address mistakes. Our own tests of their data demonstrates significant lift over what’s offered in the major generic global systems. And they are constantly refreshing the information to keep ahead of the quick pace of construction as India’s economy keeps building new homes and apartments and demolishing old ones.

In particular, this partner is able to provide more granular delivery details in more cities, suburbs, and villages. While the generic global systems rarely provide verification below the city or post code level, this partner is able to verify many more addresses to the street, premise or even delivery point level.

This is what LOCAL address solutions do, and it makes a big difference to eCommerce businesses (both the big platforms and the individual merchants) seeking growth in the Indian market. Let me explain…

The India Address and Delivery Challenge

Last month Wall Street Journal reporter Sean McLain shadowed two motorcycle deliverymen as they hauled eCommerce goods through the streets of some of India’s largest cities. One worked for Flipkart, an enormous Bangalore-based online marketplace, and the other for Amazon.

Each would pile as much as 150 pounds into their backpacks and fan out through the cities, suburbs and villages to deliver such sundry goods as laser printers, coffee makers and six-packs of Coca-Cola. They’re expected to make at least 45 deliveries each day, but the address infrastructure in India makes this no easy task.

Delhi, for example, is a city of nearly 17 million people. Addresses are a combination of neighborhood names, block numbers and house numbers. Many house numbers aren’t even arranged sequentially along a street. Three houses in a row might skip from 225 to 657 and back to 301. The complexity of it means deliverymen spend a lot of time asking for directions. When following the Amazon driver, the

reporter noted that each delivery “involved at least four stops to ask cycle-rickshaw drivers, security guards or roadside barbers for directions. Each time the response was the same: an outstretched finger and a one-word answer: ‘Straight.'”

Neither Amazon nor Flipkart trust India Post or other traditional delivery services to get their parcels to customers. They’re investing huge sums of cash to build their own delivery infrastructure. This is how desperate they are to build local intelligence to make sure packages arrive on customer’s doorsteps quickly. Even then, it’s all terribly inefficient.

There’s a better way.

The Difference in LOCAL Intelligence for Address Verification

Even though they want to expand their businesses into India, eCommerce merchants are wary of the address and delivery challenge. Generic global address services aren’t helping. In most of India they can only verify addresses to city or district level. Think about what that means. They expect you to ship products – potentially expensive products – to an address about which they can tell you nothing more than “we know the city exists.” It means you have to ship first and then hope the deliverymen figure out the neighborhood, street and house number portions of the address. That creates too much uncertainty for merchants.

With our new data partner in India, GDC is able to flip that equation around. Rather than sending the package and hoping the deliveryman’s local knowledge is sufficient to find the address, we use our partner’s local intelligence to provide address detail to the street, premise and delivery point levels. We can also tell you if an address is not deliverable. It’s like having the local deliveryman in Delhi tell you the address exists before you ever ship the package.

For eCommerce merchants holding back from the Indian market, this should give you reason to reconsider. There’s a massive growth opportunity there, and in using our local intelligence for address verification, you can be confident your parcel will arrive even when you’re using local delivery services.

For the big eCommerce platforms – even those that have invested so heavily in these armies of motorcycle deliverymen – there’s an opportunity for you, too. With this local intelligence for address verification, you can stage your orders for more efficient delivery. If the goal is 45 packages a day per deliveryman, imagine how much throughput you could get if he started with better address information…if he didn’t have to stop four times to ask directions for each package!

So, we welcome our new India partner into the Global Data Consortium. We’re excited to open up access to India for Worldview customers. And if you’re looking for help in India, or any other country in our global platform, give us a call. We’d love to help expand your Worldview.

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Amazon Skates Where the Indian eCommerce Puck Is Going

What better time to trot out old hockey metaphors than the opening weeks of the NHL season? And while I’m no particular fanatic of the sport, I’ve always found much wisdom in Wayne (“The Great One”) Gretzky’s famous quip to an interviewer asking what made him an extraordinary player. “I skate where the puck’s going,” he said, “not where it’s been.”

Sage advice, no doubt, but it’s so often hard for managers of business to follow it. We are so mired in the day-to-day efforts to keep our machines churning that it seems impossible to poke our heads up and try to peer into the future; to do that vision thing where we imagine where that puck might be going and prepare for it.

But good businesses know to make time for it. The best ones marshal serious resources for it.

Take Amazon as a case in point. Its shares took a tumble in October when the company announced a loss in 2014’s second quarter. Why? Despite growing revenue, the juggernaut was accelerating its investments in further growth even faster. It was skating fast to where Jeff Bezos and crew think that puck is going.

That includes a recently announced investment of US$2 billion in India.

The Economic Times of India announced that Amazon is expanding its year-old pilot partnership with India Post, the country’s mail service, to get the postman to both deliver your Amazon package and collect your payment. (You can find the article here. ) Cash on delivery seems such an outdated concept to those of us most familiar with eCommerce practices in markets like the U.S. and the E.U. where consumers have long been comfortable offering their credit cards to pay for goods before they’re shipped.

But for many eCommerce related businesses, this is where the puck is. To get where it’s going, they’re going to have to spend time thinking how the future of the industry might look different than it does today and begin investing strategically.

While mature eCommerce markets will see growth rates begin to fall into single digits, developing markets (not just India, but think also: Russia, China, Brazil, Argentina and so many more) are poised for staggering expansion. That’s where the puck is going.

According to The Economic Times article, more than two-thirds of Indian eCommerce transactions occur on a cash-for-delivery basis. That means if you want to stake a claim on that growth, you have to adapt yourself to the eCommerce realities of these countries. The eCommerce winners in India will undoubtedly adapt to a culture that won’t pay etailers upfront with credit cards. They’re much more likely to pay the postman when the package gets delivered.

But change is hard. When you’re used to getting paid in advance, waiting for delivery (and all the uncertainty that comes with it) is no easy transition to accept. Kudos to Amazon for investing in the future of this enormous market.

Applying this lesson to GDC’s own universe, there’s no doubt that industry players of all sorts – retailers, fulfillment specialists, logistics companies, data services, alternative payment providers, etc. – must prepare themselves to ship goods (or their clients’ ) across borders. That’s where the growth will be… that’s where the puck is going.

How are you preparing yourself for the challenges that come attached to these growth opportunities?

By way of shameless plugs, GDC would love to help you think about using our network of the world’s best data providers to get you there. Call us to talk about it.

For eCommerce companies interested in cross-border trade, the Global Data Consortium’s Worldview platform gives you one place to access the world’s best data for Delivery, Identity and Payment.

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Indian Slum Dwellers on the Path to Becoming Part of the Global Cross Border Economy

Read an article over the weekend that focused on the efforts of real estate developers in India to redevelop the slums of the major cities into a mix of luxury and affordable housing. The really intriguing aspect of this effort is that the slum dwellers that had occupied the space prior get a free unit in the new development and the impact this has on health, economic and social well-being. The even broader impact comes from the transference of these people from the underground economy to the global economy by giving them a home with an address.

In Mumbai alone there are 6.5 million people residing in slums. These people live in hard conditions and are not able to fully access things like running water or consistent electricity. By moving them into buildings that provide the basic infrastructure they can begin to consider other needs for themselves and most importantly their children. This is a crucial step towards creating a better life for the next generation and that generation will seek to access even more resources via internet enabled mobile devices that are quickly proliferating throughout India.

As the global use of internet enabled devices grows and users seek to transact for more and more resources, a crucial requirement will be that those users can easily purchase and receive items. Having a permanent defined residence is a great step on the path to enabling global logistics carriers to deliver the package to the doorstep of those 6.5 million people. Just a step on the path.

http://www.businessweek.com/articles/2014-08-28/in-india-slum-dwellers-move-into-high-rises

 

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Cross Border Commerce Skirmish Continues in India

FlipKart recently raised $1 billion in capital to expand its e-commerce offering in India. Amazon then announced $2 billion of investment in India. Snapdeal which is the second largest e-commerce platform in India behind FlipKart is about to be surpassed by Amazon. Clearly the opportunity in Indian e-commerce segment is huge but why so much money and what are the challenges to growth?

If one reads the pundits Amazon’s dominance of the Indian e-commerce market is as inevitable as the waterflows of the river it is named after. The reason is Amazon can outspend any competitor in offering fast delivery and a broader catalogue of items. While neither FlipKart nor SnapDeal can directly compete with Amazon on those fronts they can compete with the behemoth in other ways.

The primary zones for Amazon’s fulfillment centers are focused on the large metropolitan cities. Amazon is concentrating its resources to deliver on the promise of fast delivery in these areas. Both FlipKart and SnapDeal should leverage their native capabilities and focus on selling to and securing the markets in the vast rural communities of India where there is a more even footing upon which to compete. For family members who live in a large city but wish to order items for family members in rural areas having an e-commerce platform that delivery to those communities would be a solid point of differentiation.

The other point of differentiation is with payment. India’s mobile commerce market is quickly developing its own ecosystem. Leveraging the preferred payment platforms versus the standard payment systems available on Amazon would also give Indian e-commerce vendors a solid point of differentiation in the market.

The founders of SnapDeal and FlipKart would do well to read Vikram Akula’s book “A Fistful of Rice”. His book speaks to the opportunity in India’s masses via the application of microfinance. Addressing the needs of the rural communities via e-commerce could yield a bounty of loyal and numerous customers that will help maintain the dominant market share over the long term.