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International Journal of scientific research and management (IJSRM)

||Special Issue On e-Marketing Road Ahead Of India ||Pages|| 39-43||2013||

Website: www.ijsrm.in ISSN (e): 2321-3418

D. Baskar, Special Issue On e-Marketing Road Ahead Of India Page 39

AN EXPLORATORY STUDY ON ELECTRONIC RETAILING IN INDIA *D. Baskar

*Head of the Department, Department of Commerce (Computer Applications),

Asan Memorial College of Arts & Science, Chennai.

Abstract

The business world is changing and it is redefining itself at an inimitable pace. Internet penetration has

brought a new rebellion in every field and has brought an important source of income for small, medium and

big organizations when customers have their product or service through internet whether they are in work

place or at home. It will be used as an easy means to transact business without any harass. Electronic

retailing will set a new platform for the expansion of the business. This article analyze the growth factors,

barriers of E-tailing Market in India and concludes that there will be a prospective growth of electronic

retailing in India if more number of rural people brought under the fold of internet accessing and train them

to use the sophisticated way of shopping

Key words: Internet, Electronic retailing, Barriers, Online marketing, E-tailing

Introduction

The business world is changing and it is redefining itself at an inimitable pace. In past internet has brought a

new rebellion in every field but now days it is one of the important source of income for small, medium and

big organisations when customers have their product or service through internet whether they are in work

place or at home. Electronic retailing gives transformation from conventional physical stock up system to

classier non-store formats leads to revolution in business today. It will be used as an easy means to transact

business without any harass. Electronic retailing will set a new platform for the expansion of the business.

E-Tailing

Electronic retailing is most commonly known as E-Tailing, through which shopping can be done via Internet

and other media forms. E-tailing is retailing conducted online, over the internet. E-tailing is synonymous

with business-to-consumer (B2C) transactions. These are online shops where a customer can choose from

a variety of items like Apparel, Accessories, Mobiles/Cell Phones, Cameras, Computers, Books, Magazines,

Music CDs and DVDs, Electronic, Goods, Shoes, Furniture, Health Equipments, Flowers, etc.

Review of Literature


1. Namita Bhandari and Preeti Kaushal (2013) in their study on online consumer behaviour using factor

analysis and found the reasons for using online shopping like trust, information about the product and

services, convenience, effortless shopping

2. Nagesh (2007) describes that Indian retailing will see a sea of change in the next five years driving

consumption boom never seen in the history of any country. From a drought

situation we will see a flood of modern retail, So Indian retail will be on a steady ground of sustained

growth year after year and thereafter.

3. Mohanty & Panda (2008) opines about retailing as a sector of India occupies important place in the

socio-economic growth strategy of the country. India is witnessing retailing boom being propelled by

increasing urbanization, rising purchasing power parity (PPP) of ever growing Indias middle class,

changing demographic profiles heavily tilted young population, technological revolution, intense

globalization drive etc.

4. Akash (2009) states that Retail business in India, as anywhere else in the world, plays a crucial role in an

economy. Retail in India has the potential to add value over Rs 2,00,000 crore ($45billion)

business in the coming years generating employment for some 2.5 million people in various retail

operations and over10 million additional workforce in retail support activities including contract

production and processing, supply chain and logistics, retail real estate development and management.

5. Sahu (2010) describes that a rise in consumer confidence, improvement in profitability and aggressive

expansion plans signal better tidings for listed players in the organized retail space. Moreover, analysts

believe listed retailers could attract foreign investments by spinning off their subsidiaries into separate

companies which can provide a great opportunity for the improvement of this sector.

Need of the Study

Electronic retailing has emerged as a new avenue to consumers for shopping. Internet penetration spread

across India at a faster rate, gaining attractiveness for online buying. E-retailers intend to take advantage

on it inspite of impediment and escalated competition of e-tailing. Thus, this study is undertaken to access

the factors for growth and barriers of e-tailing in India.

Objectives of the study


1. To identify the factors for growth of E-tailing in India

2. To examine the Barriers of E-tailing Market in India

Factors for growth of E-tailing in India

No factual domain outlay

E-retailer does not require sophisticated showrooms in prime locations and they operate business through

their web sites. Thus significantly saves the domain and maintenance cost which is on the higher side for the

physical store retailers.

Enhanced communiqu with the clientele

E-tailing business gives better communication to customers as a whole. It gives personalized interaction

with customers on individual basis for their response. Communication is an essential tool for mass clientele.

Mass Media and Universal reach

Enhanced

communiqu

with the

clientele

Effortless and

joyful

Shopping

Mass Media

and Universal

reach

No factual

domain outlay

Factors for

growth for E-tailing in

India


A supermarket has limited area of operation. It caters only to a limited number of customers of a particular

locality, but a web site can be accessed from any part of the globe and, thus increasing the potential

customers in multifold. It also serves as a good media of advertising at minimum cost covering across the

world.

Effortless and joyful shopping

A consumer prefers online shopping to save time as an alternative of shopping at malls and spend more time

for purchasing. Shopping comfortably at home through internet and getting product information easily and

joyfully is the more attraction for e-tailing business.

Barriers to growth of E-Tailing Market

Absence of Bargain

Bargain is completely absent in e-tailing business. Indian consumers have the custom of bargaining

especially the female consumers will do in every purchase and it is not possible in e-tailing business.

Offering products at significant discounted rates is also not feasible in this type of shopping and this will be

a key barrier in online shopping.

Lack of touch and feel experience of the products

Another barrier of online shopping is a customer does not have the accessibility of the product which is

offered through e-business. E-retailers should fulfill the customers expectations by delivering the products

Barriers to growth of

E-Tailing Market

Absence of Bargain

Lack of touch and feel

experience of the

products

Rising cutthroat

pressures

Rising cutthroat pressures

Lack of trust among the

customers


as per the specifications shown in the online otherwise it is hard to bring in more trustworthiness in the e-

tailing business.

Lack of trust among the customers

The online consumers are in lack of trust with the e-retailers concerning the safer and secured delivery of

product which is ordered through online. Consumers need to wait for the delivery of the products and

moreover products are not delivered as per the time stipulation. In addition to it, the online consumers also

lack confidence in payment, since they are forced to pay high rates for courier or shipping charges.

Conclusion

In India, e-tailing has the potential to grow more than hundred-fold in the next eight years to reach a value of

76 billion dollars by 2021. This would be possible if more number of rural people brought under the fold of

internet accessing and trained to use the sophisticated way of shopping. The e-retailers should also bring

confidence among the online customers by prompt delivery of goods; allowing discounts for bulk purchases,

reducing delivery charges etc. Subsequently, the Indian market will attain a different outlook.

Bibliography

1. Gurinder Singh andn Ms. Bhawana Kumar (Oct 2004) e-tailing-Sustaining a Successful Business

Model TIME, Science Tech Entrepreneur, E-zine, FICCI.

2. Haubl.G and V.Trifts, (2000), Consumer Decision Making in Online Shopping Environments: The

Effects of Interactive Aids. Marketing Science.

3. Ley.M and Weitz. D.A. (1998)Retail Management, III Edition, McGraw Hill.

4. Raisch, Wareen, (2001), The e-market place: Strategies for success in E-Commerce, New York:

McGraw-Hill.

5. Stephanie Loaiacono (June 2007)Choosing the Winners in the Click-and-Mortar Game

Investopedia, A Forbes Media Company.

6. Namita Bhandari and Preeti Kaushal (2013) Online Consumer Behavior: An Exploratory Study Global Journal of Commerce and Management perspective Vol. 2(4):98-107.

7. Akash, S.B. (2009), Opportunities and challenges of retailing Business In India-An

Explanatory Study, KAIL Journal of Management and Research, 2(1).

8. Mohanty, A.K.& Panda, J. (2008), Retailing in India: Challenges and Opportunities, The Orissa

Journal of Commerce, Vol. XXIX, NO.2, Bhubaneswar, July, pp. 69-79.

9. Nagesh, B.S (2007), Indian Retail The Way Forward, India Retail Report, An Images F & R

Research,pp.246-248,www.indiaretailing.com.

10. Sahu, R.P. (2010), Higher Sales Boost Retail, Business Standard, section II, 21.

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