AbstractE-tailing sector in India has a huge potential and is growing at a CAGR of 8-10% annually. Apparel and electronics are the highest contributor in terms of sale. With the increase in competitors in this sector studying the consumer behaviour becomes important so as to understand the factors that influence a consumer while they make a purchase through online and offline channel.

Introduction1. Apparel industry in IndiaIndia is one of the largest producer of textile and apparels and has an enormous raw material and manufacturing base. The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach US $ 141 billion by 2021. The industry is a significant contributor to the economy, both in terms of its domestic share and exports. It contributes to nearly 30 per cent of the total exports of India and employs around 45 million people directly and 60 million indirectly. Textile industry contributes to 11 percent of export basket of the country and 5 percent to GDP.

Indian consumersApparel is highly dynamic market and the trend changes very fast. Thus the fashion market requires companies to be flexible and adaptive to the changes so focusing on the right requirement of the target would help the players to improve their performance. Companies should make sure that they know how and what to deliver to their consumers. Focusing on the past consumer experience helps in predicting the future trends and brings profitability in the products and services in the market. The process of decision making is observed to be very similar in both online and offline market. But some factors such as physical environment and marketing communication plays a major role. According to traditional consumer decision model, Consumer purchaseadecision typically starts withaneed awareness, information search, and alternative evaluations, deciding to purchase and finally, post-purchasing behaviour.Influences of Online Shopping DecisionThere are many reasons for shopping online. Many people wants to avoid the traffic and save time, others want to compare prices on various websites on one click while others want to avoid pressure they face during face-to-face interactions. So these factors can be summarized in four basic categories-convenience, information, available products and services, and cost and time efficiency.Convenience- Empirical research shows that convenience of the internet is one of the impacts on consumers willingness to buy online is increasing. Online shopping is available 24 hours a day and 7 days a week and hence they do not have any restriction on store timings. In major metro cities, we can find an increase in trend of online shopping as both the members of the family are working and they cannot find free time for shopping. Moreover shopping online avoids crowd and waiting line especially on holidays. Some companies have helpline even after business hours. Therefore, some customers find it easy to ask questions and get support.Information- Though the customers fail on touch and feel aspect while purchasing online but product information and reviews of the customers bridges that gap. Many websites these days are providing with the information catalogue meeting all the needs of the customers.Available product and services- E-commerce has made the transactions easier than before and the online store provide a wide variety of products and services to choose from. Consumers can find all kinds of products online from all over the world. Most companies have their own websites to offer products and services no matter whether they exist offline or not. Most companies sell product only online to reduce the retailing cost or to offer customers with more choices of features, colours or sizes. Cost and time efficiency- Online shopping often provides better deal at lower cost. Since online shopping gives variety of products and services it gives customers a chance to compare prices on various websites. Some websites, Ebay for example, offer customers auction or best offer option, so they can make a good deal for their product. Again as the online shopping can be done anywhere and everywhere it saves one from travelling time. Studies have shown that customers find shopping online reduces psychological costs.Factors that Impede Consumers from online ShoppingMajor reason that impede consumers from online shopping include unsecured payment, slow shipping, unwanted product, spam or virus, bothersome emails and technology problem. Business should be aware of such major problems which lead to dissatisfaction in online shopping.Security- In India, many customers prefer online shopping as it has an option of cash on delivery. But there are few others who pay through credit/debit cards and these people pay special attention to sellers information in order to protect themselves. Customers tend to purchase products from those websites whom they trust or brands that they are familiar with. Online trust plays an important role and it affects the success or failure of online retailers. Security seems to be a big concern that prevents customers from shopping online because they are worried that the online payment may misuse their card details. Intangibility of online product- Some products are less likely to be purchased online because of the intangible nature of the products. Many fear that the product showing online maybe different from the product they actually see in store. In, online shopping customers cannot see, feel, touch, smell, or try the product that they want to buy. In many cases, customers prefer to examine the product first and then decide whether or not they want to buy. Some people think the product information provided in website is not enough to make a decision. Online shoppers will be disappointed if the product information does not meet their expectation. Social contact- While some customers likely to be free from salespersons pressure, while others feel it becomes difficult to take decision without salespersons professional advice. Moreover, some customers rely on other persons opinion while purchasing. There are some others who go out for shopping for entertainment purpose.Dissatisfaction with online shopping- Customers past online experience often affects the future purchase decision. In online shopping, customers may get unwanted or product of lower quality. Some retailers disagree to refund or change the product and this affects the customers future buying decision. Delivery time is also an issue. Slow or late delivery makes customers to switch to other online shopping websites.2. Objective of the Study

The objective of the present study was to study the factors that influence the buying decision of customers in online shopping industry and suggest strategies for online companies to increase their sales.

3. Literature Review

The market size of both domestic and exports of apparel industry is projected to grow at a CAGR of 9.5%, according to a white paper by industry body FICCI and research firm Technopak. India's share of the world's apparel exports stands at 4.5%. It is estimated that due to the increasing shift of apparel and textile production to Asian nations and the deteriorating export-competitiveness of China, this figure will grow to 8% by 2020, with a total exports value of $82 billion. This growth, from 4.5 to 8% of world trade, will open up huge potential for Indian players, the report said.India has the potential to become a rapidly growing market for better-quality apparel, particularly brand-name fashion goods. The countrys sizable middle class of an estimated 200 million, which is expected to double in the next 10 years, includes an estimated 40 million people who prefer brand-name fashions. A recent study of the Indian apparel and textile industry concluded that India has the potential to double its current world market share in apparel during the next 5 years, provided that the apparel sector invests about $16.6 billion in new production technology.

4. Research Objectivesa) To analyse the product attributes consumers use to evaluate garments online and offlineb) To study consumers online and offline channel choice motivationsc) To study product attributes consumer use when shopping across online and offline channels

HypothesesHypothesis 1:H0: Time does not affect the channel for making purchase in apparel industryH1: Time affects the channel for making purchase in apparel industry

Hypothesis 2:H0: Safety of the website does not affect the channel for making purchase in apparel industryH1: Safety of the website affects the channel for making purchase in apparel industry

Hypothesis 3:H0: Price does not affect the channel for making purchase in apparel industryH1: Price affects the channel for making purchase in apparel industry

Hypothesis 4:H0: Convenience does not affect the channel for making purchase in apparel industryH1: Convenience affects the channel for making purchase in apparel industry

Hypothesis 5:H0: Reliability does not affect the channel for making purchase in apparel industryH1: Reliability affects the channel for making purchase in apparel industry

Hypothesis 6:H0: Quality of the product does not affect the channel for making purchase in apparel industryH1: Quality of the product affects the channel for making purchase in apparel industry

Modified Path Model for our StudyPurchasing Decision in apparel industryTimeSafetyPrice

H 1

H 2

H 3

H 4

Convenience

H 5

H 6Reliability

Quality of the product

The summary of variables are:Independent Variables: Age, Gender, Income Level, Time, Safety, Price, Convenience, Reliability, Quality of the productDependent Variable: Overall RatingMethodologyResearch TypeThe methodology chosen for the research was Quantitative Research since we had to test our hypotheses with empirical data. The survey was to be administered online and there was a huge amount of data, hence this technique is better suited. However, while designing the research there was also a lot of Qualitative Research which went into framing the initial questionnaire, which we would eventually test by Quantitative Research techniques.The experiment is combined with in-depth interviews as this method can be used in conjunction with other methods to gain exploratory findings to generate theory. In-depth interviewing is in this case found suitable as there is a specific topic to focus on and to gain information about from the participants. Furthermore, qualitative interviews brought knowledge that is contextual, linguistic, narrative and pragmatic which is what is desired within this research.Sample Design1. Sampling Technique Used: We used Convenience Sampling in this research1. Sample Size: A sample size of 100 respondents has been chosen for the research1. Description of Respondents: We plan to have a survey based on the following stakeholders :1. Potential Customers: Special focus on the 18-40 years age group, in the Delhi-NCR region mainly college going students, corporate and frequent shoppers. We also plan to reach out to our target segment of cities like Kolkata, Andhra Pradesh,Karnataka, Odisha, and Noida through online questionnaires.2. Surveying Point Of Sales: Local vendors, Shopkeepers in malls, IT professionals, Housewives etc.3. Industry Expertise: We would also interview industry experts and gain insights about the customer purchase pattern 1. Demographics: The survey was administered in the urban areas of Gurgaon, Kolkata, Andhra Pradesh, Karnataka, Odisha, and Noida 1. Data Collection Instrument: Online Questionnaire1. Sources of Data Collection: For collection of data, we used the following sources:Primary Sources of data included the first hand information which was collected through the questionnaire. Secondary Sources of data included books, magazines, online journals, newspapers, research papers and websites of many companies which were involved in the study.

Research DesignThe research was formulated by doing literature review of various articles pertaining to the variables of interest once they were chosen. Once the industry of concern was chosen, we reviewed articles not only on the variables but also on the studies pertaining to those variables in apparel industry in India. After the literature review, we did a Qualitative Study by researching through books and other online sources to help frame our initial questionnaire. Once the final version of the questionnaire was made, it was administered to the respondents via e-mail and social networking sites.1. Model Refinement1. Identify Constructs1. Identify Measurement Items1. Develop first draft of QuestionnaireLiterature Review

Qualitative Study

1. Develop the final version of the Questionnaire1. Final model and conclusions drawn from the results1. Business Implications for managersAnalysis of Model and ConclusionsSurvey of 100 respondentsFinal QuestionnaireAnalysing Qualitative Data

Questionnaire Used for Primary ResearchAs mentioned earlier, the mode of conducting primary research was online questionnaire which was sent via email and personally to the selected sample of educated respondents. The questionnaire dealt with aspects such as1. Checking whether the respondent shops online or offline 1. Checking what are the factors that drives the respondent to shop online1. Checking what are the factors that drives the respondent to shop offline

Description of Items Used in Questionnaire

These set of questions deals with respondents internet usage habits, familiarity with the various shopping modes and frequency of purchase in online analysis. These questions were needed for further analysis of the preferred mode of shopping and what are the hindrances one face while shopping online.

These questions help in testing of hypothesis 1-6 which deal with the features of the online shopping.

The last section of the questionnaire dealt with the demographic questions of age, gender, monthly income and any other additional information if the respondent wishes to share. We chose to keep them at the end to avoid response bias.

Results and Analysis

References1. http://www.ibef.org/exports/apparel-industry-india.aspx