Published on March 10, 2014
Rise of Online Shopping in India Online shopping has not only taken the Indian market by storm; it has also changed the way we shop and buy products, be it electronics, clothes and even for groceries and travel related things such as flight tickets and hotel bookings. As a matter of fact, a much larger number of the urban population in the country has switched to buying things online than visiting a traditional store.
Who’s Shopping Online If you ever thought that only Gen-next is heading online to shop, then you are in for a surprise, as online shopping has become incredibly popular with people of all age groups. As matter of fact, you can take a look at the graph to see how even people above the age of 55 are getting used to the fact that you can conveniently shop online.
The Industry’s Future Online shopping has become a multimillion dollar industry in the last few years itself, which can be considered as a good omen for the future of the industry. The industry is set to grow even bigger in the coming years thanks to the entry of fairly new competitors in the market along with huge investments being made by major players to further the industry.
It’s Not Just About Clothes and Apparels Anymore A few years ago most of the online stores dealt in clothes and apparels, which were considered to be a fairly safer bet. However, with time many new players have emerged in the market with stores targeted towards specific niches such healthcare products, baby products, cosmetics, groceries etc. Meaning that entrepreneurs are slowly realizing the potential of this industry and are willing to experiment.
The Insider Reports To get a better perspective of where the industry is headed in the next few years to follow, we will need to hear what the experts have to say, “India is one of the top retailing markets in the world and among the fastest growing, with an online penetration of nearly 60 per cent” According to a research report by Comscore for Assocham - State of E- Commerce in India.
Are They Posing a Competition to Physical Stores? The answer to that question is ‘Yes’ however currently the threat is not that huge as the industry is yet to grow. As per estimates the retail industry in India amounts to approximately $500 billion; however the e-retail industry currently contributes just 0.50 % to this sector; therefore, currently the threat is not that huge. However, once the industry grows further, it could very well pose as a real threat to the physical stores in the market.
Year on Year Growth: The Reasons for Success The e-retail industry has been growing year on year even when the global economy is going through turbulent times, and there are a few reasons for that: • Discounted items at prices you won’t be able to find in physical stores. • Benefits such as cash- on-delivery and free shipping on products. • Customer cost acquisition is pretty low.
Factors Influencing Customer Decisions The world of e-retail is probably more cut-throat than their physical counterparts. Therefore, the companies need to aggressively price their products and provide a positive user experience to a shopper in order to generate sales. As the graph suggests, deals and discounts along with positive reviews and social media presence plays a crucial part in attracting consumers and generating sales.
E-retail is Here to Stay Initially when e-retail had begun in India, a lot of people were skeptical as to whether this sort of business model would survive in a country like India where people are used to shopping in-stores; however, all speculations have since been laid to rest with the steady growth in this sector, which has not only found acceptance within the urban youth population but the old as well. All evidence points to the fact that e-retail is here to stay and the boom isn’t going to die down anytime soon.
More Goodies to Come your Way Major investment firms have already started heavily investing in the e- retail sector and some online stores have already been purchased by other prominent online powerhouses. And with so many perks and a promising future, you should really try shopping online if you haven’t already!
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