28861146 final project on e retailing nagendra

7/25/2019 28861146 Final Project on E Retailing Nagendra

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.E- Retailing.

A new business tool to capture the existing

market

Dissertation submitted in partial fulllment of the

requirements of the two year full-time Post Graduate

Diploma in Retail Management Programme

Submitted by

.Nagendra Pratap Singh

Roll No: ! "RM#-$%-&&'

(at)h: *$$%-*$&$

Institute For Integrated Learning in Management

raduate !chool o" Management

#$% &nowledge 'ark

reater (oida) *+# ,+$

March *+#+

#


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+ontents 'age (o.

&,.e)uti/e Summery

000000,, 1*,2b3e)ti/e

000000,, 45,6bout Retail

000000,, 7',Predi)tion for Retail Se)tor

000000,, &$1,6bout -Retailing

000000,, &&4,- +ommer)e Mar8et

0000000 &*7,6d/antages

0000000 &%%,raud and Se)urity +on)ern ,

000000, *&9,Problem fa)ed by )ustomer

0000000 *1

&$,R)ommendation

0000000 5$

&&,+on)lusion

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&*,(ibliography

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D+6R6!;2N 2RM

I hereb declare that the 'roect work

entitled E- RE/AILI( 0A (E1 23!I(E!! /44L /4 5A'/3RE /6E

E7I!/I( MAR&E/8 submitted b me "or the partial "ul9llment o" the

'ost raduate :iploma in Retail Management 'rogram to Institute "or

Integrated Learning in Management% reater (oida is m own originalwork and has not been submitted earlier either to IILM !M or to an

other Institution "or the "ul9llment o" the re;uirement "or an course o"

stud. I also declare that no chapter o" this manuscript in whole or in

part is li"ted and incorporated in this report "rom an earlier < other work

done b me or others.

'lace =

:ate = !ignature o" !tudent

,


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(ame o" !tudent = (agendra 'ratap !ingh

Address = *$-aatri >ihar% /hatipur% walior% M.'.

Acknowledgement

Acknowledgement is not onl a ritual but also an expression o"

indebtedness to all those who ha?e helped in the preparation process o"

the proect. 4ne o" the most pleasant aspect is collecting the necessar

in"ormation and compiling it is the opportunit to thank those who

acti?el contributed to it.

I would like to express m sincere appreciation to 'ro". Aeet !harma his

kind help% guidance% support and encouragement throughout m

proect . /his proect will help me to cur?e m personalit in the best

manner% which is needed "or pro"essional career. In "act this proect is

the mirror o" m aspiration.

Signature

@


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Name:- Nagendra Pratap Singh

Course:- PGDM(RM),2008-200

Executive Summary

/his proect includes stud o" modern retailing concept which help

customer as well as shopkeeper or companies to bu or sell products atlowest price% with in time. (ow e?erone wants to sa?e there time and

to "ul9ll there wish E-Retailing comes in the realit. 1ith the help o" E-

retailing< E-tailing anone can bu anthing "rom a pen to car with in a

second. In this proect I tr to 9nd out that whether this ser?ice is

help"ul to the customer or will increase problems to the customers. /his

proect is done on secondar data% I ha?e analsed the secondar data

"rom dierent sources like Internet% newspaper magaBines etc . In the

proect in the starting I ha?e gi?en little intro o" RE/AILI( in I(:IA and

the "ormats o" RE/AIL in India like MALL!% 6C'ER MAR&E/% 5on?enience

store etc.

E-retailing working has been also shown in the proect how the e-

retailing is bene9cial to the customers and securities concern on E-

RE/AILI( .I ha?e gi?en the ad?antages o" E-retailing and how this

D


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modern world is getting changed or rather sa getting more and more

"rom the usage o" internet. /op #+ companies which are based o?er e-

retailing is also mentioned clearl in this proect

Ending o" this proect contains suggestions and recommendations b

me b studing some proects and some reports a?ailable on Internet.

Objectives

/he obecti?e behind making the proect is to 9nd out = 1hether e-retailing able to change the shopping experience

o" customer or not. 1hether e-retailing is boom or curse "or the customers and

5ompanies 1hat steps a e-retailing "ormat companies should take to

increase the pro9tabilit. 1here people are interested in this modern wa o" shopping

or that traditional wa.

$


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About Retail

/he word retail is deri?ed "rom the French word retailer% whichmeans ) to cut o a piece or to break bulk.A retailer ma be de9ned

as a dealer or trader who repeatedl sells goods in small ;uantities. /hesale o" goods or commodities in small ;uantities directl to consumers.4"% relating to% or engaged in the sale o" goods or commodities at retail.It also means to sell in small ;uantities directl to consumers!

6))ording to P


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and onl @G o" them being larger than D++ s; "t 0@$ m*8 in siBe.

4rganiBed Retail 3norganiBed Retail

2RG6N;?D R!6;: 4rganiBed retailing re"ers to tradingacti?ities undertaken b licensed retailers% that is% those who are

registered "or sales tax% income tax% etc. /hese include thecorporate backed hpermarkets and retail chains% and also thepri?atel owned large retail businesses. 4rganiBed retail segmenthas been growing at a blistering pace% exceeding all pre?iousestimates. According to a stud b :eloitte 6askins and !ells%organiBed retail has increased its share "rom D per cent o" totalretail sales in *++$ to J per cent in *++H. /he "astest growingsegments ha?e been the wholesale cash and carr stores 0#D+ percent8 "ollowed b supermarkets 0#++ per cent8 and hpermarkets0HD-J+ per cent8. Further% it estimates the organiBed segment toaccount "or *D per cent o" the total sales b *+##.

@N2RG6N;?D R!6;: 3norganiBed retailing% on the otherhand% re"ers to the traditional "ormats o" low-cost retailing% "orexample% the local kirana shops% owner manned general stores%paan < beedi shops% con?enience stores% hand cart and pa?ement?endors% etc. 3norganiBed retailing is de9ned as an outlet runlocall b the owner or caretaker o" a shop that lacks technical andaccounting standardiBation. /he suppl chain and sourcing are also

done locall to meet local needs. Its organiBed counterpart manot obtain its supplies "rom local sources.

RE/AILI( F4RMA/! I( I(:IA

M6S: /he largest "orm o" organiBed retailing toda. Locatedmainl in metro cities% in proximit to urban outskirts. Ranges "rom$+%+++ s; "t to H%++%+++ s; "t and abo?e. /he lend an idealshopping experience with an amalgamation o" product% ser?ice andentertainmentK all under a common roo". Examples include!hoppers !top% 'ramid% and 'antaloon.

!hopping-centre de?elopment has attracted real-estate de?elopers

and corporate houses across cities in India. As a result% "rom ust ,

malls in *+++% India is all set to ha?e o?er **+ malls b *++D. /oda%

the expected demand "or ;ualit retail space in *++ is estimated to

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be around @+ million s;uare "eet. 1hile pre?iousl it was the large%

organiBed retailers )with their modern% up-market outlets% and direct

consumer inter"ace- who had been a ke "actor dri?ing the growth o"

organiBed retail in the countr% now it is the malls which are plaing

the role.

!egmentation in malls% like up-market malls% mid-market

malls% etc.% proper planning% correct identi9cation o" needs% ;ualit

products at lower prices% the right store mix% and the right timing%

would Ensure the success o" the mall re?olutionN in India.

SP+;6!A STORES: 5hains such as the 2angalore based &ids&emp% the Mumbai books retailer 5rossword% R'Os Music 1orldand the /imes roupOs music chain 'lanet M% are "ocusing on

speci9c market segments and ha?e established themsel?esstrongl in their sectors.

D;S+2@N! S!2RS:As the name suggests% discount stores or"actor outlets% oer discounts on the MR' through selling in bulkreaching economies o" scale or excess stock le"t o?er at theseason. /he product categor can range "rom a ?ariet o"perishable< non perishable goods.

DP6R!MN!6 S!2RS: :epartmental !tores are expected

to take o?er the apparel business "rom exclusi?e brand showrooms.Among these% the biggest success is & RaheaOs !hoppers !top%which started in Mumbai and now has se?eral large stores 0o?er,+%+++ s;. "t8 across India and e?en has its own in store brand "orclothes called !topP.


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+2NCN;N+ S!2RS: /hese are relati?el small stores@++-*%+++ s;. "eet located near residential areas. /he stock alimited range o" high-turno?er con?enience products and areusuall open "or extended periods during the da% se?en das aweek. 'rices are slightl higher due to the con?enience premium.

M24Ns= Multi 2rand outlets% also known as 5ategor &illers% oer se?eralbrands across a single product categor. /hese usuall do well in busmarket places and Metros.

+2N!R;(@!;2N 2 D; ;N R!6;;NG

India will look into the industrNs demand "or "oreign directin?estment 0F:I8 "or multiple products in the retail sector. F:I is alreadpermitted in the retail sector in some segments. /here is a demand to

extend F:I in retail sector. At present% India allows #++ percent F:I incash- and )carr wholesale trading and export trading through theautomatic route% while D# percent F:I is permitted in single brandretailing.According to a oin stud b Assoc ham and accounting and consultanc9rm &M'% the total retail market in India is estimated at ,D, billion in*++J% and expected to grow at eight percent annuall to touch @#$billion b *+#+.

/he de?eloping countries ha?e the most pre"erable destination "or F:I.

India is also one o" the most important. It will help in increasingemploment le?els as F:I would result in market growth and expansionwhich in turn will result in emploment generated at ?arious le?els.

E!/IMA/E! A(: 'RE:I5/I4(! F4R RE/AIL !E5/4R=

At present% the industr is estimated to be at more than3! @++ billion b a stud o" Mc&inse. /he Economist Intelligence 3nit0EI38 estimates the retail market in India will increase to 3!$+.billion in *+#+ "rom 3!,@ billion in *++D. &'M Report sas that the

organiBed retail would grow at a higher rate than the :' in the next9?e ears. /he retail sector would generate emploment "or more than*.D million people b the ear *+#+% predicts an analsis b MaFoiManagement 5onsultants Ltd. /raditional ?is a ?is Modern FormatRetailers /he retail boom will "ace a strong competition "rom the #*million mom-and-pop stores. /hese are easil accessible and pro?ide

#+


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ser?ices like "ree home deli?er and goods at credit% which is notpossible with hpermarkets and supermarkets. 2uing "rom Malls%!upermarkets and :epartment stores like 2ig 2aBaar% Marks Q!pencerNs% etc. pro?ide a dierent en?ironment where one can pick andchoose "rom a ?ariet o" products. 4wing to the entr o" such big

plaers% the small shopkeepers "ear losing their business. RelianceRetail Ltd. has been in?iting such people to oin in its :air business as"ranchisees.

rowth o" Retail !ector in India

E) RE/AILI(E-tailing began to work "or some maor corporations and smallerentrepreneurs as earl as #H when :ell 5omputer reported

multimillion dollar orders taken at its 1eb site. /he success o"

AmaBon.com hastened the arri?al o" 2arnes and (obleOs e-tail site.

5oncerns about secure order-taking receded. #H was also the ear in

which Auto-b-/el reported that the had sold their millionth car o?er

##


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the 1eb% and 5ommerce(et


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/he E-5ommerce Market= !iBe and /rends

!ince mid #+Ns traditional traders "ollowed large 5omputer

Manu"acturers into the new sphere and toda ou can bu practicall

anthing through the Internet= "rom a bunch o" Towers to a car. /he onl

exception seems to be a trip to Mars. /oda E-5ommerce market is huge

and still growing.

/he E-commerce market is totall democratic. /his is per"ect capitalism=i" ou sell ou win% i" ou donNt sell N ou loose. ItNs all about marketing

and economic rules o" demand and suppl. 5ertain products or ser?ices

appear more suitable "or online salesK others remain more suitable "or

traditional sales. Man success"ul purel ?irtual companies deal with

digital products% music% mo?ies% education% communication% so"tware%

photograph% and 9nancial transactions. Examples o" this tpe o"

compan include AmaBon.com% oogle% E-2a and 'apal. 'roducts less

suitable "or E-5ommerce include products that ha?e a low ?alue-to-weight ratio% products that ha?e a smell% taste% or touch component%

products that need trial 9ttings N most notabl clothing N and products

where color integrit appears important. (onetheless% clothing sold

through the internet is big business in the 3.!.

According to eMarketerNs annual report in *++$ the E-5ommerce market

siBe in Europe has grown to #+$ billion 0#,, billion8. Analsts sa that

it is ?er likel to go on increasing and displa a ?er "ast rate o" annual

growth N up to *DG. /he situation will be stable "or at least 9?e ears

and the market will reach the point o" N,*, billion 0@+H billion8 b *+##.

2ritain% France and erman pre?ail in the European E-5ommerce

market. /hese countries ha?e the largest share in the total 9gures

transactions N up to H*G. 2ritish E-5ommerce market ranks 9rst and

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analsts belie?e it will reach ##@ billion in *+##% which is @#G higher

than the 9gures o" *++$. erman holds the second place. 6owe?er% it

is 9rst in the number o" online-customers N there are as man as ,

million.

!ome researchers also note that in the next 9?e ears the Europeanmarket might increase signi9cantl due to the E-5ommerce growth in

the countries like Ital% 6olland and !pain.

A wide range o" goods and ser?ices can be sold through the Internet. A

large piece in this pie is held b In"ormation /echnolog. 6owe?er% the

share o" other niches 0"or instance% tra?eling and 9nance8 is

unexpectedl high. Real estate% computers% hardware and so"tware%

tourism% and 9nancial ser?ices comprise the top o" the list

/he Ecommerce market is expected to touch ,*, billion 0@+H billion8

b *+##% E /ailing or E RE-tailing market is onl about ##D+ 5rore I(R

according to a sur?e conducted b Internet and Mobile Association o"

India and Indian Market Research 2ureau 0IMR28.

/he top E-tailers in India are indiatimes.com% "abmart.com%

redishopping.com. /he ha?e managed to retain their lead due to

inno?ati?e business strategies% suppl chain model and changing urban

li"estles

Logistics

5onsumers 9nd a product o" interest b ?isiting the website o" the

retailer directl% or do a search across man dierent ?endors using a

shopping search engine.

4nce a particular product has been "ound on the web site o" the seller%

most online retailers use shopping cart so"tware to allow the consumer

to accumulate multiple items and to adust ;uantities% b analog with

9lling a phsical shopping cart or basket in a con?entional store. A

UcheckoutU process "ollows 0continuing the phsical-store analog8 in

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which pament and deli?er in"ormation is collected% i" necessar. !ome

stores allow consumers to sign up "or a permanent online account so

that some or all o" this in"ormation onl needs to be entered once. /he

consumer o"ten recei?es an e-mail con9rmation once the transaction is

complete. Less sophisticated stores ma rel on consumers to phone or

e-mail their orders 0though credit card numbers are not accepted b e-

mail% "or securit reasons8.

/op ten e-retailers

#.AmaBon.com

*. 'lanetrx.com

,. /icketmaster.com

@. atewa.com

D. 2arnesandnoble.com

$. Mothernature.com

H. Iprint.com

J. 6allmark.com

. 2u.com

#+. 2igstar.com

Indian e-tailers= Redi.com% Valdi.com% Fabmart.com%

/snshop.com and !atamonline.com.

#D


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'ament

4nline shoppers commonl use credit card to make paments% howe?er

some sstems enable users to create accounts and pa b alternati?e

means% such as=

:ebit card

>arious tpes o" electronic mone

5ash on deli?er 05.4.:.% oered b ?er "ew online stores8

5he;ue

1ire trans"er


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!ome online retailing sites in India

E 2a is heading the race o" online retailers. In this race it has become

?er diWcult to determine the online retail store that makes the

products a?ailable at con?enient and cheap rates. From this ?er

diWcult has cropped up comparison sites. 5omparison is done on thebasis o" an index which is constructed "rom the data a?ailable "rom

dierent shopping sites. /he bechna.com and the ultop.com are such

sites though man more sites are entering this Bone.

/he comparison sites not onl help to choose the online sites that would

be pro?iding the best deal but also oXine as well. !ites like

Rediproductsearch% 5ompare India.com ha?e constructed the data that

is taken "rom the con?entional local retailers. /hese sites help the

customer in 9nding out the local retail store that will best suit his

purpose.

:esign

1h does electronic shopping existY For customers it is not onl

because o" the high le?el o" con?enience% but also because o" the

broader selectionK competiti?e pricing and greater access to

in"ormation. For organiBations it increases their customer ?alue and thebuilding o" sustainable capabilities% next to the increased pro9ts.

In"ormation load

:esigners o" online shops should consider the eects o" in"ormation

load. Mehrabian and Russel 0#H@8 introduced the concept o"

in"ormation rate 0load8 as the complex spatial and temporal

arrangements o" stimuli within a setting. /he notion o" in"ormation load

is directl related to concerns about whether consumers can be gi?entoo much in"ormation in ?irtual shopping en?ironments. 5ompared with

con?entional retail shopping% computer shopping enriches the

in"ormation en?ironment o" ?irtual shopping b pro?iding additional

product in"ormation% such as comparati?e products and ser?ices% as well

as ?arious alternati?es and attributes o" each alternati?e% etc.

#H


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/wo maor sub-dimensions ha?e been identi9ed "or in"ormation load=

complexit and no?elt. 5omplexit re"ers to the number o" dierent

elements or "eatures o" a site% which can be the result o" increased

in"ormation di?ersit. (o?elt in?ol?es the unexpected% suppressing%

new% or un"amiliar aspects o" the site. A research b 6uang 0*+++8

showed that the no?elt dimension kept consumers exploring the

shopping sites% whereas the complexit dimension has the potential to

induce impulse purchases.

5onsumer expectations

/he main idea o" online shopping is not in ha?ing a good looking

website that could be listed in a lot o" search engines and it is not about

the art behind the site. It also is not onl ust about disseminating

in"ormation% because it is all about building relationships and making

mone. Mostl% organiBations tr to adopt techni;ues o" online shopping

without understanding these techni;ues and


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user with a positi?e impression about the organiBation% so consumers

can get an impression that the compan cares about them. /he

organiBation that wants to be acceptable in online shopping needs to

remember% that it is easier to lose a customer then to gain one. Lots o"

researchers state that e?en when site was a top-rated% it would go

nowhere i" the organiBation "ailed to li?e up to common eti;uette% such

as returning e-mails in a timel "ashion% noti"ing customers o"

problems% being honest% and being good stewards o" the customersN

data. 4rganiBations that want to keep their customers or gain new ones

tr to get rid o" all mistakes and be more appealing to be more desirable

"or online shoppers. And this is wh man designers o" webshops

considered research outcomes concerning consumer expectations.

Research conducted b Elliot and Fowell 0*+++8 re?ealed satis"actor

and unsatis"actor customer experiences.

3ser inter"ace

It is important to take the countr and customers into account. For

example% in Vapan pri?ac is ?er important and emotional in?ol?ement

is more important on a pensionNs site than on a shopping site. (ext to

that% there is a dierence in experience= experienced users "ocus more

on the ?ariables that directl inTuence the task% while no?ice users are

"ocusing more on understanding the in"ormation.

/here are se?eral techni;ues "or the inspection o" the usabilit. /he

ones used in the research o" 5hen Q Macredie 0*++D8 are 6euristic

e?aluation% cogniti?e walk through and the user testing. E?er

techni;ue has its own 0dis-8ad?antages and it is there"ore important to

check per situation which techni;ue is appropriate.

1hen the customers went to the online shop% a couple o" "actors

determine whether the will return to the site. /he most important"actors are the ease o" use and the presence o" user-"riendl "eatures

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Ad?antages 5on?enience

4nline stores are usuall a?ailable *@ hours a da% and man consumersha?e Internet access both at work and at home. 4ther establishments

such as internet ca"es and schools pro?ide access as well. A ?isit to a

con?entional retail store re;uires tra?el and must take place during

business hours.

!earching or browsing an online catalog can be "aster than browsing the

aisles o" a phsical store. 4ne can a?oid crowded malls resulting in long

lines% and no parking. 5onsumers with dial-up Internet connections

rather than broadband ha?e much longer load times "or content-rich

web sites and ha?e a considerabl slower online shopping experience.

!ome consumers pre"er interacting with people rather than computers

because the 9nd computers hard to use. (ot all online retailers ha?e

succeeded in making their sites eas to use or reliable. 4n the other

hand% a maorit o" stores ha?e made it eas to 9nd the stle one is

looking "or% as well as the price range that is acceptable making the

shopping experience ;uick and eWcient. /he internet has madeshopping an almost eortless task.

In most cases% merchandise must be shipped to the consumer%

introducing a signi9cant dela and potentiall uncertaint about

whether or not the item was actuall in stock at the time o" purchase.

Most success"ul sites will sa whether or not a product is in suppl2ricks

and clicks stores oer the abilit to bu online but pick up in a nearb

store. Man stores gi?e the consumer the deli?er companOs tracking

number "or their package when shipped% so the can check its statusonline and know exactl when it will arri?e. For eWcienc reasons%

online stores generall do not ship products immediatel upon recei?ing

an order. 4rders are onl 9lled during warehouse operating hours% and

there ma be a dela o" anwhere "rom a "ew minutes to a "ew das to

a "ew weeks be"ore in-stock items are actuall packaged and shipped.

*+


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Man retailers in"orm customers how long the can expect to wait

be"ore recei?ing a package% and whether or not the generall ha?e a

"ul9llment backlog. A ;uick response time is sometimes an important

"actor in consumersO choice o" merchant. 5ustomers can choose the

tpe o" shipping the want "rom o?ernight% to a "ew das. /he ;uicker

the deli?er the higher the shipping cost. A weakness o" online shopping

is that% e?en i" a purchase can be made *@ hours a da% the customer

must o"ten be at home during normal business hours to accept the

deli?er. For man pro"essionals this can be diWcult% and absence at the

time o" deli?er can result in delas% or in some cases% return o" the

item to the retailer. Automated deli?er booths% such as :6LOs

'ackstation% ha?e tried to address this problem. 1hen shopping in a

retail store% customers can handle and inspect the actual product be"ore

the purchase it.

In the e?ent o" a problem with the item - it is not what the consumer

ordered% or it is not what the expected - consumers are concerned with

the ease with which the can return an item "or the correct one or "or a

re"und. 5onsumers ma need to contact the retailer% ?isit the post oWce

and pa return shipping% and then wait "or a replacement or re"und.

!ome online companies ha?e more generous return policies to

compensate "or the traditional ad?antage o" phsical stores. For

example% the online shoe retailer Zappos.com includes labels "or "ree

return shipping% and does not charge a restocking "ee% e?en "or returns

which are not the result o" merchant error. In the 3nited &ingdom%

4nline shops are prohibited "rom charging a restocking "ee i" the

consumer cancels their order in accordance with the 5onsumer

'rotection 0:istance !elling8 Act *+++.

In"ormation and re?iews

4nline stores must describe products "or sale with text% photos% and

multimedia 9les% whereas in a phsical retail store% the actual product

and the manu"acturerOs packaging will be a?ailable "or direct inspection

0which might in?ol?e a test dri?e% 9tting% or other experimentation8.

*#


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!ome online stores pro?ide or link to supplemental product in"ormation%

such as instructions% sa"et procedures% demonstrations% or

manu"acturer speci9cations. !ome pro?ide background in"ormation%

ad?ice% or how-to guides designed to help consumers decide which

product to bu.

!ome stores e?en allow customers to comment or rate their items.

/here are also dedicated re?iew sites that host user re?iews "or dierent

products.

In a con?entional retail store% clerks are generall a?ailable to answer

;uestions. !ome online stores ha?e real-time chat "eatures% but most

rel on e-mail or phone calls to handle customer ;uestions.

'rice and selection

4ne ad?antage o" shopping online is being able to ;uickl seek out

deals "or items or ser?ices with man dierent ?endors 0though some

local search engines do exist to help consumers locate products "or sale

in nearb stores8. !earch engines% online price comparison ser?ices and

disco?er shopping engines can be used to look up sellers o" a

particular product or ser?ice.

!hipping costs 0i" applicable8 reduce the price ad?antage o" online

merchandise% though depending on the urisdiction% a lack o" sales tax

ma compensate "or this.

!hipping a small number o" items% especiall "rom another countr% is

much more expensi?e than making the larger shipments bricks-and-

mortar retailers order. !ome retailers 0especiall those selling small%

high-?alue items like electronics8 oer "ree shipping on suWcientl largeorders.

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Fraud and securit concerns

i?en the lack o" abilit to inspect merchandise be"ore purchase%

consumers are at higher risk o" "raud on the part o" the merchant than

in a phsical store. Merchants also risk "raudulent purchases usingstolen credit cards or "raudulent repudiation o" the online purchase.

1ith a warehouse instead o" a retail store"ront% merchants "ace less risk

"rom phsical the"t.

!ecure !ockets Laer 0!!L8 encrption has generall sol?ed the problem

o" credit card numbers being intercepted in transit between the

consumer and the merchant. Identit the"t is still a concern "or

consumers when hackers break into a merchantOs web site and steal

names% addresses and credit card numbers. A number o" high-pro9lebreak-ins in the *+++s has prompted some 3.!. states to re;uire

disclosure to consumers when this happens. 5omputer securit has thus

become a maor concern "or merchants and e-commerce ser?ice

pro?iders% who deplo countermeasures such as 9rewalls and anti-?irus

so"tware to protect their networks.

'hishing is another danger% where consumers are "ooled into thinking

the are dealing with a reputable retailer% when the ha?e actuall been

manipulated into "eeding pri?ate in"ormation to a sstem operated b a

malicious part. :enial o" ser?ice attacks are a minor risk "or merchants%

as are ser?er and network outages.

[ualit seals can be placed on the !hop web page i" it has undergone

an independent assessment and meets all re;uirements o" the compan

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issuing the seal. /he purpose o" these seals is to increase the

con9dence o" the online shoppersK the existence o" man dierent

seals% or seals un"amiliar to consumers% ma "oil this eort to a certain

extent. A number o" resources oer ad?ice on how consumers can

protect themsel?es when using online retailer ser?ices. /hese include=

!ticking with known stores% or attempting to 9nd independent consumer

re?iews o" their experiencesK also ensuring that there is comprehensi?e

contact in"ormation on the website be"ore using the ser?ice% and noting

i" the retailer has enrolled in industr o?ersight programs such as trust

mark or trust seal.

2e"ore buing "rom a new compan% e?aluate the website b

considering issues such as= the pro"essionalism and user-"riendliness o"

the siteK whether or not the compan lists a telephone number and


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are going to be re;uired to put in our credit card in"ormation and

billing


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'ri?ac o" personal in"ormation is a signi9cant issue "or some

consumers. :ierent legal urisdictions ha?e dierent laws concerning

consumer pri?ac% and dierent le?els o" en"orcement. Man consumers

wish to a?oid spam and telemarketing which could result "rom suppling

contact in"ormation to an online merchant. In response% man

merchants promise not to use consumer in"ormation "or these purposes%

or pro?ide a mechanism to opt-out o" such contacts.

Man websites keep track o" consumers shopping habits in order to

suggest items and other websites to ?iew. 2rick-and-mortar stores also

collect consumer in"ormation. !ome ask "or address and phone number

at checkout% though consumers ma re"use to pro?ide it. Man larger

stores use the address in"ormation encoded on consumersO credit cards

0o"ten without their knowledge8 to add them to a catalog mailing list./his in"ormation is ob?iousl not accessible to the merchant when

paing in cash.

'roduct !uitabilit

Man success"ul purel ?irtual companies deal with digital products%

0including in"ormation storage% retrie?al% and modi9cation8% music%

mo?ies% oWce supplies% education% communication% so"tware%

photograph% and 9nancial transactions. 4ther success"ul marketers use

:rop shipping or aWliate marketing techni;ues to "acilitate transactions

o" tangible goods without maintaining real in?entor.

!ome non-digital products ha?e been more success"ul than others "oronline stores. 'ro9table items o"ten ha?e a high ?alue-to-weight ratio%

the ma in?ol?e embarrassing purchases% the ma tpicall go to

people in remote locations% and the ma ha?e shut-ins as their tpical

purchasers.\citation needed] Items which can 9t through a standard

*$


27/35

letterbox ^ such as music 5:s% :>:s and books ^ are particularl

suitable "or a ?irtual marketer.

'roducts such as spare parts% both "or consumer items like washing

machines and "or industrial e;uipment like centri"ugal pumps% also

seem good candidates "or selling online. Retailers o"ten need to orderspare parts speciall% since the tpicall do not stock them at

consumer outlets^in such cases% e-commerce solutions in spares do not

compete with retail stores% onl with other ordering sstems. A "actor "or

success in this niche can consist o" pro?iding customers with exact%

reliable in"ormation about which part number their particular ?ersion o"

a product needs% "or example b pro?iding parts lists keed b serial

number.

'roducts less suitable "or e-commerce include products that ha?e a low?alue-to-weight ratio% products that ha?e a smell% taste% or touch

component% products that need trial 9ttings ^ most notabl clothing ^

and products where colour integrit appears important. (onetheless%

/esco.com has had success deli?ering groceries in the 3&% albeit that

man o" its goods are o" a generic ;ualit% and clothing sold through the

internet is big business in the 3.!. Also% the reccling program

5heapccle sells goods o?er the internet% but a?oids the low ?alue-to-

weight ratio problem b creating dierent groups "or ?arious regions% sothat shipping costs remain low.

'roblem "aced b customer=

'roblems with the 'ament !stem

'eople in India are not used to the online shopping sstem andmoreo?er the online pament sstem through the credit card is also

totall alien to them. Most o" them do not a?ail o" the transaction

"acilities oered b the credit cards. /he are also dubious regarding the

online pament sstem through the credit cards. 6ence dierent

*H


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pament options should be made a?ailable to them like the credit card%

cash on deli?er and net banking to gi?e them "urther assurance.

'roblems with !hipping

/he customers using the online shopping channel should be assured

that the products that the ha?e ordered would reach them in due time.

For this the retail companies ha?e resorted to pri?ate guaranteed

courier ser?ices as compared to postal ser?ices.

4Xine presence

/he customers should be assured that the online retailers are not onl

a?ailable online but oXine as well. /his gi?es them the pschological

com"ort that these companies can be relied upon.

'roducts oered at discounted rates

/he online retailers sa?e on the cost o" building and emploee salaries.

!ome part o" this bene9t should also be enoed b the online

customers b a reduction in the price o" the product. /he customers

should be con?eed this message that the are getting the products at

a discounted price.

Language 'roblem

Most internet retail shops use English as their mode o" communication.

English ma not be comprehensible to the maorit o" the Indian

population . /o increase the customer base% content in the online retail

shops should be pro?ided in local language.

Another reason wh the concept o" e- retailing or online retailing has not

gained prominence in India is that the Indians pre"er to touch the

products phsicall be"ore buing them. /his "acilit is pro?ided through

the multi-brand outlets% not a?ailable online. !tudies ha?e re?ealed the

pre"erences o" the customers towards the traditional shopping methods.

6ence the retailer online should 9rst make it a point to spot the

*J


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potential customers and accordingl plan out the product. I" the

customers are more open to online shopping% then nothing can be more

bene9cial. /he sa?e the time and eort to ?isit% departmental stores%

shopping malls% etc. products can be deli?ered b a click o" the mouse.

In a nut shell

1h is Ecommerce so importantY

E commerce and E/ailing% "rom a business perspecti?e oer an

opportunit to cater to consumers across geographies% no operational

timings% unlimited shel" space ) and all this with miniscule ;uantit o"

in"rastructure. For a countr like India% this business model is a good

wa o" growing the consumption dri?en econom.

rowth :ri?ers

/he growth in the E-tailing market is dri?en b the need to sa?e time b

urban India. 2esides with o?er *.D billion internet users% access to

internet has also plaed an important role in growing the markets.

*


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5hanging demographics 0outh"ul India8% changing li"estles and

exposure to the de?eloped markets sure gi?e a 9llip to this Tedgling

industr. /he soaring real estate costs in India ha?e certainl inspired

man an online ?enture. Also E-tailers ha?e de?eloped man inno?ati?e

promotions to lure customers and there b growing the market.

2arriers to rowth

2ut then all is not well in the E-tailerNs paradise. /he cost o" customer

ac;uisition is prett high in India ) about ##++ I(R


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not trusting the online retailers. /hrough this changing ) albeit slowl%

thanks to automation and technical integration.

/ouch points to "ocus on

_ 5ustomer is the &ing ) A good *@


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RE54MME(:A/I4(!

(ow a das customer wants to sa?e there time "rom an thing sothe like to bu things online but due to securit reasons the

donNt. !o those companies who are in the 9eld o" E-/ailing the

should make secure the transactions made b customer to win

their "aith.

As we all know that India is a de?eloping countr and she is getting

better and better e?er moment but still there are some 9elds

where we are not as good as other countries like

3!A%2ritain%France% erman etc. but we tr to use the sametechnolog or "acilit o?er hear. 1e need to understand that things

which are success"ull working o?er there will not work with same

;ualit and strength until In"rastructure "or that ser?ice will not

upto the mark in our countr.

,*


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!till Indian customers are not aware about this kind o" "acilit is

a?ailable to them% the still like to bu things a"ter ?isiting the

shops. 5ompanies which are in that business need to increase

awareness among people b ad?ertisement and customer should

also be in"ormed that how to purchase goods online.

enerall customer complains that most o" the companies are

"ailed to pro?ide products on time% the e?en not sure that

whate?er the ordered will surel reached to them. !o :eli?er

time should be taken into consideration.

I" an complain registered b the customer then it should be

sol?ed within time and companies should tr to 9nd out ;uick wa

o" sol?ing the "rauds complains. It will hwlp compan to win the

"aith o" customers.

/he process o" online purchasing should be simple and easier "or

customer so that the can easil access or order whate?er the

want. !o man customer do not bu products "rom internet

although the know that the can bu it online and the ha?e

access too because the do not want to spend their time in 9nding

the right product. /he pre"er to go to the market and bu it

because the know where the "ound it.

54(5L3!I4((ow a das "ashion o" e-retailing is increasing da b da% outh are the

mo?ers who want to tr this "acilities and in metro cities online buing is

increasing ?er rapidl. (ow the use online banking "acilit% book their

mo?ie ticket% railwa ticket% recharge their mobile online. 2ut in two tier

cities online "acilities are not popular. /he still bu railwa ticket% mo?ie

,,


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ticket with the help o" broker or personall standing in a ;ueue. 4ne

reason is that the do not belie?e on these "acilities due to some cases

o" leak o" personal data and second one is penetration o" internet user

is ?er low in two tier cities.

5onsumerNs pre"erences are changing rapidit and becoming highldi?ersi9ed. It is diWcult "or the retail stores to satis" all the needs o"

the customers. /he most o" the consumerNs want to get some attracti?e

prices% good schemes and oers on e?er purchases and a shopping

com"ort as well. /hose who are able to purchase their needs and want

"or a month in a bulk pre"ers to go to the retail chains. 1ith the help o"

online shopping "acilit retailer can "ul9ll the need and demand o" their

customers and able to pro?ide better ser?ices to their customers.

In India online shopping is still not a pre"erred wa o" shopping becausecustomers are "acing some problem regarding "raud% pri?ac% hidden

charges% on time deli?er etc. Indians are not so much technosa? that

help those who are read to cheat with the customers. 5ompanies

should need to promote or tr to tell their customers about online

shopping "acilit so that those who are aware about this the will use it

at least once and those who doNnot know the will think about using it.

5ompanies need to 9nd out that what tpe o" problem customer are

"acing while using online shopping "acilit and tr to sal?e thereproblem so that customer will 9nd it eas in comparison to other wa o"

shopping.

!lowl-!lowl time will change as the internet uses are increasing.

Future o" e retailing is bright in India and now slowl-* people are

changing their perception and accept the changes comes in the buing

process.

,@


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2I2LI4RA'6C

www.google.com

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www.wikipedia.com

http=

28861146 final project on e retailing nagendra

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