e-tailing benefits, hurdles and future
TRANSCRIPT
E-TAILING - BENEFITS, PROBLEMS AND THE
FUTURE Presented by
S. Syed Nizamudeen., B.E.,
On behalf of
U. Syed Aktharsha., MBA. M.PhilAssociate Professor
Jamal Institute of ManagementJamal Mohamed College (Autonomous)
Tiruchirappalli
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).
TOP TEN E-RETAILERS1. Amazon.com2. Planetrx.com 3. Ticketmaster.com 4. Gateway.com 5. Barnesandnoble.com 6. Mothernature.com 7. Iprint.com 8. Hallmark.com 9. Buy.com 10. Bigstar.com
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.
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.
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:1. Customer is the King2. Supply Chain3. New Business Models4. Comparison Shopping and Customer Reviews
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
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
POPULARITY OF E-TAILING No real estate costs Easy and comfortable Better interaction with the customers Mass MediaBenefits: Much wider choice at fingertips Price discrimination Customized product placements
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
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
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
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
