Presented Paper at National conference on EMERGING TRENDS IN RETAILING INDUSTRY titled E-TAILING BENEFITS, HURDLES AND FUTURE at SNR Institute of Management Sciences, SNR Sons College (Autonomous), Coimbatore-641006.
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E-TAILING BENEFITS, HURDLES AND FUTURE
1. E-TAILING - BENEFITS, PROBLEMS AND THE FUTURE Presented by S. Syed Nizamudeen., B.E., On behalf of U. Syed Aktharsha., MBA. M.PhilAssociate ProfessorJamal Institute of ManagementJamal Mohamed College (Autonomous)Tiruchirappalli
2. INTRODUCTION E-tailing or e-commerce can be described as transactions that are conducted over an electronic network, where the buyer and merchant are not at the same physical location. For example plastic card transactions via the internet. E Tailing or E RE-tailing market is only about 1150 Crore INR-survey conducted by (IMRB).
3. TOP TEN E-RETAILERS Amazon.com Planetrx.com Ticketmaster.com Gateway.com Barnesandnoble.com Mothernature.com Iprint.com Hallmark.com Buy.com Bigstar.com
4. GROWTH DRIVERS The need to save time by urban India Internet Changing demographics (youthful India) Changing lifestyles and exposure to the developed markets The soaring real estate costs in India.
5. BARRIERS TO GROWTH High cost of customer acquisition in India Less popularity for high margin goods like apparel because of touch and feel factor Fear of using credit cards as Indians feel that “what you see may not be what you get” Problem with complaint resolution, especially after receipt of wrong goods or delayed delivery.
6. THE REAL ISSUES The Indian Retail industry has always thrived on personalization They sense the customer’s mood, remember customer’s preferences and budget – which no CRM software can claim to do. Some issues to be considered are: Customer is the King Supply Chain New Business Models Comparison Shopping and Customer Reviews
7. 4 P’S AND E-TAILING Product:Psychology of buyer and types of goods make difference in shopping at real places or shopping online. Open retail stores for goods that you can sell on line easily. E.g. Amazon did for Books & CDs Place: To establish retail stores there is a need for heavy expenditure. Instead open e-tailing store on Internet with support of warehouse located at cheap place in your town
8. Price:Working capital costs are less so on line stores can reduce prices when compared to living retail stores. That’s how one can attract many customers to buy on line with incentive schemes and home delivery Promotion:E-tailer needs to promote heavily to get customers from real world. Building trust and security are most necessary
9. POPULARITY OF E-TAILING No real estate costs Easy and comfortable Better interaction with the customers Mass Media Benefits: Much wider choice at fingertips Price discrimination Customized product placements
10. HURDLES in e-tailing In India , Internet is unlikely to gather a sizable slice of market Cities like Mumbai or New Delhi might not be a haven for an e-tailer Low penetration of credit cards and the lack of popularity of debit cards Mounting competitive pressures Shopping is still a touch--feel--hear experience
11. Inadequate information provided when the customers discerns it E-tailer has no 100 % access to customers.Limited only to on line users -Not all customers have access to the web Ease of use is a problem, as the web design is still complex Trust, security and privacy concerns prevail
12. What kind of retailing model is going to deliver the goods in the Indian scenario? Collaborative commerce (e-commerce): An e-tailer may collaborate with some manufacturers and suppliers which reduces the distribution cost Create economic value:E-tailers should create economic value for the customer rather than a curiosity value
13. CONCLUSION E-tailing is a new industry in India Most growth drivers are in India’s favor Demographics Economy Changing lifestyle Exposure to new ideas It is thus important to create a sustainable eco system for E-tailing, which is at an inflection point
