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A Regional operational conference Project Report on

“Impact of e-commerce”

Submitted by

MR.RAJESH HEMRAJANI & TEAM

A study conducted

At

Lifestyle International Pvt Ltd.

Inorbit mall, Pune-411006.

(2014-15)

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ACKNOWLEDGEMENT

In this project we have made an honest and dedicated attempt to make the research

material as authentic as it could. And we earnestly hope that it provides useful and

workable information to any person reading it.

During this span of one month in which the project reached its completion,

There were a few people whom we would like to mention of and without whose help

The project would have never seen the light of the day.

We would like to thank our RO Team for providing us an opportunity to make this

project report, our Mentors to show the path on which we walked and finally to all our

team members for all their sincere efforts to make this project complete and present

today.

We dedicate this project to people who are working in retail and mainly in Brick and

Mortar format.

Thanking you

Pune Inorbit Team

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TABLE OF CONTENTS

SR. NO CONTENTS PAGE NO

1

EXECUTIVE SUMMARY 4

2

INTRODUCTION 5-12

3 REVIEW OF LITERATURE 13-15

4 OBJECTIVE & SCOPE OF THE PROJECT

16-19

5

THEROTRICAL PERSPECTIVE 20-29

6

RESEARCH METHODOLOGY 30-33

7

DATA ANALYSIS & INTERPRETATION 34-43

8

FINDINGS 44-45

9

RECOMMENDATION 46-47

10

CONCLUSION 48-50

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EXECUTIVE SUMMERY

This research project is about E-commerce. Started with a vision to provide a study on

impact of E-commerce on Brick and Mortar.

This information can further be given to sales force of the company. This information

can be converted into training needs assessment and methodologies. A proper training

manual can be prepared and a structured format can be developed. The major

objective of the project is to develop a strategies to maintain a sustainability in the

market with higher p[profitability.

Then,we started to identify the present status of E-commerce industry. by collecting

data from different sources like employees, websites. Like this collected the

secondary data from all such sources and for the primary data a survey was conducted

to gather information from the customers as what they know about the different

elements involved in identifying the market potential. Also what they want in their

products and their expectations from Online and brick and mortar retail format.

In research design, type of research is exploratory. In the sample design the sample

universe is finite. The sample universe is Pune area.Sampling technique used is

probability sampling technique. It is also known as random sampling the sample size

is 100. The data collection tool used is Questionnaire method

The objective of the project was to the Study the “Impact of E-commerce on Brick

and Mortar. The major focus is on capturing the insights about the customers.. In this

research the researcher has tried to find out the market behavior This has helped to

find out what is the market potential is available for E-commerce and Brick and

mortar. Questionnaire technique the data was collected in Pune region. And the

researcher has also tried to recommend some of the important factors that are Brick

and mortarcan do to sustain.

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INTRODUCTION

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OVERVIEW OF THE INDUSTRY

Retailers in India have taken a long time to realize the impact of e-players on

their business. Traditional retailers under significant pressure with many are seeing as

much as a 50% drop in foot falls at their stores.

Internet penetration across the world:-

Indian e-commerce sales in 2014 is $2.3 billion which is 0.4% of total retail &

expected to reach $32 billion which cover up 3% of total retail.

At present internet is growing at an annualized rate of 34% and now has 3

billion users worldwide. Due increased reliance of www, e-commerce will continue to

grow in next few decades.

One survey pegs that by 2015 India will have 30 million online buyers and

consumers adapting to e-commerce sites compared with the 2.5 million online buyers

at present.

India is the third largest internet market in the world with more than 243 million

users. As per BCG (Boston consultancy group) more than 580 million people in India

to use internet by 2018.70-80% of them are accessing the web on mobile phones.

Below shown is the image of globally contribution e-commerce industry.

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Impact of e-commerce has mainly affected on four perspectives:-

1) Impact of e-commerce on Indian economy

2) Impact of e-commerce on market

3) Impact of e-commerce on customers

4) Impact of e-commerce on brick and mortar business model

1) Impact of e-commerce on Indian economy-

Indian e-commerce has grown at a compounded annual growth rate (CAGR) of 30%

since FY09, and is expected to be $18 billion (around Rs 1, 116, 00 crore) opportunity

by FY15. May reach $70 billion by 2020.

High growth rate on rising internet population, over 300 million middle class

populations, increasing mobile penetration and low levels of e-commerce activity.

E-commerce contributes only 0.6% of the country’s GDP vs 1-3% for other countries,

with only 12% of India’s online population transacting online vs 64% for the US and

over 50% for China,” said Atul Soni and Nitin Mohta in the report.

The nature of Indian e-commerce is also different. Travel has the lion’s share of 71% of

Indian e-commerce, but e-tailing has grown the fastest, at a 59% CAGR between FY09-

13E, to reach 16% market share.

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Overview of contribution of e-commerce to Indian GDP -

Year

% of gross domestic

product

2009

0.13%

2010

0.12%

2011

0.14%

2012

0.15%

2013

0.16%

2014*

0.18%

2015*

0.18%

2016*

0.2%

2017*

0.21%

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2) Impact of e-commerce on market-

Market share of E-commerce companies in India :-

E-commerce business in India is expected to reach around $50-70 billion by

2020 on the back of a fast growing internet-connected population and

improvement in related infrastructure like payment and delivery systems.

The size of India’s e-commerce market in 2013 was around $13 billion,

according to a joint report of KPMG and Internet and Mobile Association of

India (IAMAI). The online travel segment contributed over 70 percent of the

total consumer e-commerce transactions last year.

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E-commerce industry Category wise distribution (2014)

“Consumer mentality and shopping patterns are changing very fast. Online

shopping is going to become main stream in the coming five-six years.

Smart phones would be the biggest online shopping driver in the coming

years.

“Over half a billion Indians will switch to smart phones in the next five-six

years. That’s going to be a big driver of e-commerce in India,”

Online shopping is becoming increasingly popular in smaller cities.“Tier-II

and Tier-III cities are opening up very rapidly. By 2020, e-commerce will

penetrate everywhere, whether it is smaller cities or rural areas,”

Sachin and Binny Bansal co-founded Flipkart in 2007,they claim the company

now controls nearly one-third of India’s online retail business and has over 1

crore (10 million) registered users.“By 2020, Flipkart target is to be a $20

billion company. E-commerce companies are investing a lot on technologies,

especially on mobiles and the supply chain,”

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3) Impact of e-commerce on customers

Due to enormous benefits of e-commerce customers skewed towards e-commerce.

Brick and mortar stores have faced 50% drop in their footfalls.

The age-wise analysis revealed that 35 per cent of online shoppers are aged between

18 years and 25 years, 55 per cent between 26 years and 35 years, 8 per cent in the

age group of 36-45 years, while only 2 per cent are in the age group of 45-60 years.

Besides, 65 per cent of online shoppers are male while 35 per cent are female. With

India poised to become youngster, with about 64% of the population by 2020 in the

age group of 15-35, the potential of e-commerce is all set to rise.

4) Impact of E-Commerce on brick and mortar business model

Traditional business has been impacted because of following reasons which brick and

mortar business model are not offering to customers-

Non-Cash Payment − E-Commerce enables use of credit cards, debit cards, smart cards,

electronic fund transfer via bank's website and other modes of electronics payment.

24x7 Service availability − E-commerce automates business of enterprises and services

provided by them to customers are available anytime, anywhere. Here 24x7 refers to 24

hours of each seven days of a week.

Advertising / Marketing − E-commerce increases the reach of advertising of products

and services of businesses. It helps in better marketing management of products /

services.

Improved Sales − Using E-Commerce, orders for the products can be generated

anytime, anywhere without any human intervention. By this way, dependencies to buy a

product reduce at large and sales increases.

Support − E-Commerce provides various ways to provide pre sales and post sales

assistance to provide better services to customers.

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Inventory Management − Using E-Commerce, inventory management of products

becomes automated. Reports get generated instantly when required. Product inventory

management becomes very efficient and easy to maintain.

Communication improvement − E-Commerce provides ways for faster, efficient,

reliable communication with customers and partners.

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REVIEW OF LITERATURE

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REVIEW OF LITERATURE

An understanding of impact of e-commerce as a discipline is increasingly important in

modern business. A glance at any business newspaper or business news web page will

indicate that e-commerce companies are doing big business and are taking place all

the time [Roberts, Wallace, Moles 2003, 2010]. Competitive pressure has been

identified through numerous studies as an important determinant of IT adoption,

whether it is EDI diffusion [Banerjee &Golhar, 1993; Ramamurthy et al., 1999;

Webster, 1995], adoption of IT innovations [Gatignon& Robertson, 1989; Grover,

1993], degree of computerization [Dasgupta et al., 1999] or e-business adoption [Zhu

et al., 2002]. Outstanding planning and execution are essential for a successful

business.

Using the Internet for transactions and coordination can save time and money on

delivery of goods by using rich information flows to simplify and streamline the flows

of physical goods in the supply chain [Dedrick& Kraemer, 2002; Sturgeon, 2002].

Subsequently Indian e-commerce has grown at a swift pace in the last 5 years from

around 15 billion revenues in 2007-2008 to 139 billion in 2012-2013, translating into

a compound annual growth rate [CAGR] of over 56 percent [CRISIL, 2014].

Information is power

This is one of the most widely accepted statements and applies for every aspect of

human activity. Internet is an unlimited pull of information and benefits anyone who

use it properly.

According to Porter and Miller (1985) information gives competitive advantage to a

company in three different ways:

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A) By changing industry structure and changing the rules of competition

B) By providing companies with new ways to outperform their

competitors.

C) By creating new businesses, even from within a company’s existing

operations.

The authors continue by discussing the strategic significance that information

technology has obtained for companies by affecting the value chain. Thus the

technological and economic activities that company performs to do business. Not only

in transforms the value chain, but also transforms the product or service that the

company offers. Additionally, authors suggest five ways for information technology

to be successfully implemented in business processes. This can be done by:

A) Accessing the intensity of information.

B) Determining the role that information technology will have in the industry

structure.

C) Understanding the ways that it can create competitive advantage for their

companies.

D) Investigating the possibilities of new ideas.

E) Developing strategic plan to take advantage of information technology.

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OBJECTIVE AND SCOPE OF THE PROJECT

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OBJECTIVE

To study the impact of e-commerce on Indian economy, markets, customers.

To assess impact of e-commerce on brick and mortar business.

To study future of e-commerce industry in India.

To develop how to overcome competency of e-commerce against brick and

mortar business.

To assess factors driving the growth of e-commerce.

To assess current efforts taken by e-commerce firms to sustain into

competitive market.

To study & evaluate penetration of e-commerce into Indian market.

Tostudy & evaluatethe customers preferenceof shopping.

To study challenges & opportunities of e-commerce.

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SCOPE

The scope of study is as wide as an ocean and thereby the implementation hurdles.

When one thinks of impact of e-commerce business through final goal remains the

same as that of traditional business, but the way in which they function in order to

improve the performance is different. As information sharing is the major part of the

corporate industries, networking has given boos to e-commerce business. This change

in view-point has opened door for new opportunities.

This study is helpful in exploratory research accordingly development of a

strategies and future forecasting of brick and mortar business.

This research provides powerful, real time brick and mortar business to help

improve service standards of retail stores and come up with new strategies to

be sustained into market.

It helps the brick and mortar business to do lot work on customer loyalty

program and customer engagement activity.

It helps to improve new method of selling for brick and mortar business.

It would help to focus on the productivity of sales force. The sales force would

be able to work in proper direction. A well-educated sales force would

develop. The sales force then will be able to provide information to the

consumer and guide them. This would add to the profitability of the company.

This study will give tremendous benefits to brick and mortar companies a new

way to create awareness among customers about the benefits of shopping

experience through physical stores.

This study will mainly help in how brick and mortar companies can enhance

their focus on logistics department, presence over market & service standards

to compete with e-commerce.

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This research is very much useful to get the lifetime value of your customers

based upon their acquisition source and increase your expenditures on source

that generate the best customers over lifetime.

It helps to determine whether online competitors can significantly harm your

business by providing some of the value you currently offer customers in the

traditional way.

It helps the managers to improve the business by enhancing their

functionalities as compared with their competitiors.

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THEORITICAL PERSPECTIVE

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THEORITICAL PERSPECTIVE

SWOT ANALYSIS

STRENGTH:-

24/7 business.

Industry condition- Very high potential but is at its nascent stage lot of scope

for growth

High growth rate (Recently claimed to have doubled every quarter)

Has confidence of their investors

Not heavily dependent on courier services. Own their delivery network

Customer services & exception warehouse delivery system.

Variety of payment option, making it convenient for customers to order.

Concentration on customer satisfaction, logistics and distribution.

Wallet (Prepaid) feature is introduced to make online shopping easy and

increase the customer’s switching cost.

Low barriers and overhead cost.

Direct customer communication.

WEAKNESS:-

Still not operationally profitable. Allegro’s analysis states that in the year

ended March 2014, Snapdeal reported a loss of Rs. 264.6 Cr. On revenue of

Rs. 168 Cr. Flipakrt shows a loss of Rs. 281.7 Cr. On sales of Rs. 1180 Cr, for

the year ended March 2013.

CoD(Cash on delivery) option is not as successful as anticipated

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The size of business is still very small as compare to foreign counterparts. This

might create problems if entry of foreign competitors is allowed in the Indian

market.

It takes time to build confidence among the customers.

Average transaction value is low as the customers prefer traditional stores for

expensive purchases.

Customers are not yet comfortable with the concept of online payment.

Indians are still believes in touch and buy concept.

Coordination with suppliers and courier is tough.

Price biasing to maintain the margin. (e.g.: Low price for the best seller book

and more price for the least wanted).

OPPORTUNITY:-

M-commerce is the next development in the related market to reach higher

customer base.

Increasing internet penetration and high speed mobile internet connection

opens up interesting opportunities for expansion.

Spending behavior of the new generation is favorable.

Targeting the younger customer base through social media.

Favorable regulation by Government.

No FDI in B2C internet market. Hence, sheltered from foreign competition.

Already working towards customer delight and it will obtain customer loyalty

gradually.

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THREAT:-

Indian customers are not yet comfortable with the concept of online

payment.

There is too much competition in every product category by different sets of

players, in addition to fight for market share among competitors of comparable

sizes.

Early starters in M-commerce field can poach the customers.

100% FDI in B2B internet market and pressure on government by Amazon

for similar steps in B2c Internet market.

Entry of Google in online E-books and movies market.

Competitors capturing alternative market through innovative strategy ( e.g.

Build a Bazaar by infibeam)

In capabilities to manage certain costs like delivery cost, bank charges etc.

Chance of hacking: security issues.

Future legislations.

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PEST ANALYSIS FRAMEWORK

Political:-

Government support for increasing internet penetration in India.

Tax benefits to corporate.

2012 increasing stock holding % for foreign investors in companies.

Resistance against foreign retailers.

Economical:-

Booming Indian economy.

Increasing spending power.

Base of internet users multiplied by 10 to 11 times in last 6 years.

Social:-

Better comfort level and trust in online shopping.

High priority on time and convenience.

Improving uses of broadband and high computer literacy.

Technological:-

Advent of mobile shopping.

Increasing penetration rate of Broadband and wireless internet.

Better manage E-commerce sites for ease privacy and advancements in net

banking.

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7 P’s OF E-COMMERCE

Product:-

Appearance- the ease in the websites interface even for the first visitor.

Quality- checking of the product before packing( Visual test).

Packing- different packing( e.g. bubble pack for electronic items)

Brands- all brands integrated in one websites.

Warranty- one year warranty for the manufacturer’s side.

Service & support- guarantee delivery of undamaged product or else

replacement in 30 days.

Price:-

Special discount

As shipping is within India the shipping cost reduces.

Seasonal discount.

Free shipping.

For expensive products transit cost is born by company.

Place:-

Tie ups with local vendors and courier firms (thereby avoiding octroi charges).

Company owned warehouse in major cities near airport.

If the couriers can’t deliver to the location the product is shipped through

government post.

Promotion:-

SEO and SEM

Word of mouth marketing.

TVC lately to encourage non- online shoppers.

More online marketing like FB, Twitter, LinkedIn.

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Ad-spend are growing by e-commerce companies year on year at 50% rate.

49,000 Cr estimated Ad-spend across all media in 2015 & Rs.500 Cr likely

Ad-spend by e-commerce players in the present IPL 8.Below is the list of

information of Ad-spend through e-commerce companies.

E-commerce Players Ad-spend (2014)

Flipkart Rs.160-170 Cr

Snapdeal Rs.170-180 Cr

Amazon Rs.140-150 Cr

Physical Evidence:

Different packaging for different product to ensure safe delivery.

Company name goes with the online cart.

Design and packaging is common so customers can relate it to the company.

People:-

Service people, sales clerks, delivery drivers, managers, complaints

departments, accounting, warranty people, technical people, all work for the

customer ease, customer satisfaction and customer delight.

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7 C’s OF E-COMMERCE

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STP OF E-COMMERCE

SEGMENTATION:-

A) Customer persona:

Economical customers.

Bargain customers.

Big spenders.

Evangelists.

Highly engaged, infrequent purchasers.

B) Behavioral:

On site engagement.

Chanel preference

Device preference

Email engagement.

Abandoned baskets.

C) Customer life cycle stage

New customers

One time purchaser

Repeat customers

Loyal customers

Churning customers.

Lost customers.

D) Purchase history

Share of wallet

In-store or online preference

Purchase frequency

Average basket size

Product or category interests.

Buying cycle.

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E) Demographic:

Gender

Age

Geographic location

Size of wallet

TARGET:-

E-commerce concentrates on more psychographic, which helps deciding

where to display ads online.

They target online shoppers and people who don’t online shop ( TVC to

encourage them)

Digital natives, families with children & busy professionals

POSITIONING:-

Customer delight ( low price, free shipping, replacement)

No kidding no worries

Online megastore

One stop solution

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RESEARCH METHODOLOGY

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INTRODUCTION-

This report is based on primary data& secondary data. However secondary data

collection was given more importance since it is overhearing factor in study of impact

of e-commerce. One of the most important users of research methodology is that it

helps in identifying the problem, collecting, analyzing the required information data

and providing an alternative solution to the problem .It also helps in collecting the

vital information that is required by the top management to assist them for the better

decision making both day to day decision and critical ones.

COLLECTION OF DATA PRIMARY & SECONDARY –

Data source

Primary Secondary

Questionnaires

Survey

Observation

Experimental

Internal

External

Published data Internet

Printed Electronic data

Sale records

Marketing

activities

Feedback

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DATA COLLECTION-

Data sources:

Primary data: Research is based on secondary data. Primary data can be used only

for the reference. Research has been done by primary data collection, and primary

data has been collected by interacting with various people, and it was constructed in a

manner of getting maximum information from the customers.

Data tools:

1. The study was conducted based on questionnaires to collect the necessary

data: question were asked and the necessary information was filled on the

basis of the respondent answer.

2. The questionnaires are in the structured form, the research study was done

with the structured personal interview.

SAMPLING-

Sampling procedure:

The sample was selected of them who are the household consumers/working

people(M/F). It was also collected through personal visits to persons, by formal and

informal talks and through filling up the questionnaire prepared. The data has been

analyzed by using mathematical/Statistical tool.

Sample size:

The sample size of our project is limited to 100 respondents.

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Sample plan:-

Type of research Descriptive

Sample universe Pune region

Sample frame Potential customers of Pune region- Vimannagar,

Yerwada, Pimpri-chinchwad, Hadapsar,

Kharadi,Wagholietc.

Sampling unit Household consumers & working people (M/F)

Sample size 100

Sample design Simple random

Data collection method Primary data

Data analysis method Bar graph

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DATA INTERPREATION & ANALYSIS

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Que1. What kind of shopping do you prefer?

Malls Online Both

48% 33% 29%

Interpretation:

According to above figures, it shows that the people prefers for shopping from Malls

47%, from online 27%, and 24%from both.

48%

33% 29%

0%

10%

20%

30%

40%

50%

60%

Malls Online Both

Shopping Preference

Malls Online Both

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Que2. Preferences:-

ONLINEDEPT. STORE

a) Flip kart a) Lifestyle

b) Snap deal b) Central

c) Amazon c) Shoppers stop

d) Myntra d) Pantaloons

e) Yepme e) Westside

f) Jabong f) Others

Interpretation:

According to above figures, it shows that the people shopping from departmental

stores are on 51 % it includes Central on 26%, Lifestyle is on 15%, AND SHOPPERS

IS ON 10%.

31 % shoppers shopping from online and it includes Flipkart 14%, Snapdeal on 8%

and Amazon on 9%.

The people shops from both is on 18%

26%

15%

10% 14%

8% 9%

18%

0%

5%

10%

15%

20%

25%

30%

Central

Lifestyle

shoppers

Flipkart

Snapdeal

Amazon

Both

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Que.3 How often do you purchase through online?

a) Once a week c) Once a month

b) Once in two weeks e) rarely

Once a week 0%

Once in two weeks 35%

Once a Month 22%

Rarely 43%

Interpretation:

According to above figures, it shows that the people prefers for shopping from online

35% people once in two weeks, 22% people are once in a month, 43 % people shops

rarely and no one shops on a weekly from online.

0%

35%

22%

43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Once a week Once in two

weeks

Once a Month Rarely

Once a week

Once in two weeks

Once a Month

Rarely

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Que 4. How often do you purchase through Retail stores or malls?

a) Once a week b) Once in two weeks c) Once a month d) rarely

Once a week 0%

Once in two weeks 55%

Once a Month 15%

Rarely 30%

Interpretation:

According to above figures, it shows that the people prefers for shops from retail

stores, 55% people shops once in two weeks , 15% shops once in a month, 30% rarely

shops and no people found who shops once in a week.

0%

55%

15%

30%

0%

10%

20%

30%

40%

50%

60%

Once a week Once in two

weeks

Once a Month Rarely

Once a week

Once in two weeks

Once a Month

Rarely

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Que 5. Which are the factors influence you to shop through online?

a) Delivery c) Low price or Discount offers e)

Availability of product

b) Busy lifestyle d) Various options or alternatives f) Ease of

shopping

Delivery 15%

Busy Lifestyle 20%

low price or discount price 55%

Various options or alternatives 10%

Availability of products 0%

Ease of shopping 0%

Interpretation:

According to above figures, it shows that the factors influence for shopping through

online, major is price and discount it on 55%, and follows by busy lifestyle is on 20%.

15% 20%

55%

10% 0% 0%

0%

10%

20%

30%

40%

50%

60%

Delivery Busy Lifestyle low price or

discount price

Various

options or

alternatives

Availability of

products

Ease of

shopping

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Que6. What are the factors influence you to shop through retail stores?

a) Salesman advise c) Payment facility e) Quality of

product

b) Look & feel d) Loyalty systems (cards, points) f) Shopping

experience

Salesman Advise 30%

Look & feel 45%

Payment facility 0%

Loyalty system 0%

Quality of product 10%

Shopping Experience 15%

Interpretation:

According to above figures, it shows that the factors influence for shopping through

retail, major is 45% on look and feel and 30 % on salesman advise.

30%

45%

0% 0% 10% 15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Salesman Advise

Look & feel

Payment facility

Loyalty system

Quality of product

Shopping Experience

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Que. 7 Do you trust on online shopping or retail store shopping?

a) Online shopping b) Retail store shopping

Online shopping 35%

Retail store shopping 65%

Interpretation:

According to above figures it shows that, 65% people trust on retail shopping and

35% people trust on online shopping.

35%

65%

0%

10%

20%

30%

40%

50%

60%

70%

Online shopping Retail store shopping

Online shopping

Retail store shopping

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Que8. If a product is priced equal both online & at the retail store through which

option you would like to shop?

a) Online b) Retail store or malls

Online 30%

Retail store or Mall 70%

Interpretation:

According to above figures it states that, if a product price is equal in online as well as

in retail stores 70% people prefer to buy from retail stores.

30%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Online Retail store or Mall

Online

Retail store or Mall

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Que9. According to you what would be the most effective way to attract customers for

a new brand launch?

a) Online b) Retail store or malls

Interpretation:

According to above figures it states that, the most effective way to attract customers

for a new brand is launch 53% people says from retail stores or mall and 47% people

says from online.

47%

53%

44%

45%

46%

47%

48%

49%

50%

51%

52%

53%

54%

Online Retail store or Mall

Online

Retail store or Mall

Online 47%

Retail store or Mall 53%

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FINDINGS

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FINDINGS

By research it shows that males are doing more shopping through online

compare to females.

Age groups between 26 to 35 do more shopping through online.

The maximum people prefer to do shopping from malls as compare to online.

People prefers to shop through online in which 35% people shops once in two

weeks, 22% people shops once in a month, 43 % people shops rarely and no

one shops once in a week through online.

People prefers to shop through retail stores in which 55% people shops once

in two weeks , 15% shops once in a month, 30% rarely shops and no people

found who shops once in a week.

The factors influence for shopping through online is mainly because of price

and discount offer which is on 55% and follows by busy lifestyle is on 20%.

The factors influence for shopping through Physical format, major is 45%

because of look and feel factor and 30 % due to salesman advice/assistance.

65% people trust on retail shopping while 35% trust on online shopping.

If a product is price equal in online as well as in retail stores 70% customers

prefer to shop through retail stores.

The most effective way to attract customers for a new brand launch in which

53% customers suggest on retail stores or mall while 47% people suggest on

online.

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CONCLUSION

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CONCLUSION

The penetration of the internet in firms is high; however the use of e-business is still

limited.

E-commerce business is attracting customers only because of price discount but still

brick and mortar model has wide scope to work on their service standards to reach

up to their customer satisfaction level.

Brick and mortar business has to come up with a click and mortar model to sustain

long enough into the market & to overcome competition.

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RECOMMENDATION OF THE STUDY

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RECOMMENDATION

Great retailers can boost of many advantage such as brand consistency, high customer

awareness and rewarding relationships.

Retailers need to create more awareness among customers about benefits of

buying products through stores. For example by more focusing on service

standards.

Get into click and mortar business model.

By offering a niche product.

Mainly focus on size availability of merchandise on floor. For that we can

collect a database of size requirement by customers from each store and should

be operated by central warehouse to deliver the right product to the right

customer within a limited period of time to overcome loss opportunities.

Enhance customer engagement plans. This type of engagement activities will

be completely different from the simplistic “likes” buttons and vanity badges

currently seen in many ecommerce sites. It has to be more value-driven

engagement plans.

Open up the new stores across cities.

To create separate shopping experience zone for customers we can place a

kiosk on the shop floor to give digitalization feels to customers.

Empowering sales people with product knowledge.

Work on web-sites, social media marketing plan and mobile app. For example,

by displaying of season collection on social media channel we can sell

products also through web-sites or mobile apps. As well as we can place a

highlighter on web-sites and on mobile apps “TO GET EXCLUSIVE

COLLECTION VISIT OUR STORE”.

By differentiating our offerings by adopting different styles for online and

offline selling. Such as on e-commerce there should be limited options display

and create customer awareness that if they want to browse more collection

they need to visit retail stores.

As retailer to overcome competency we can come up with a click and mortar

business model.

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There is a trend of digitalize market and customers are looking for use of

digital medium in their shopping. For that we can provide i-pad to each

concept in which there would be enormous information of exclusive season

collection.

Turn every shopping assistant into a personal shopper who remains socially

connected with the customer even after the sale. For example Apple which

markets its associates as “geniuses” able to offer expert guidance, and Whole

Foods, which also boasts its reputation as having a knowledgeable employee

force.

Encourage shoppers to involve their peers and friends in the process of making

in-store purchasing decisions by leveraging mobile devices. Most people are

hesitant to make choices. Socializing decision-making opens a three-way

conversation between the customer, her friends, and the sales associate. To

clarify, this doesn’t mean a two-way communication such as a shopper making

a phone call to ask a friend whether to purchase something. The customer and

the sales associate need to converse and simultaneously engage remote friends

via new forms of interactions on mobile devices.

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ANNEXTURE

Area: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Age: _ _ _ _ _ _

Occupation: _ _ _ _ _ _ _ _ _ _ _ _ _ _ Sex: _ _ _ _ _ _

1) What kind of shopping do you prefer?

a) Malls b) Online

2) Preferences :-

ONLINEDEPT. STORE

g) Flip kart a) Lifestyle

h) Snap deal b) Central

i) Amazon c) Shoppers stop

j) Myntra d) Pantaloons

k) Yepme e) Westside

l) Jabong f) Others

3) How often do you purchase through online?

c) Once a week c) Once a month

d) Once in two weeks e) rarely

4) How often do you purchase through Retail stores or malls?

a) Once a week c) Once a month

b) Once in two weeks d) rarely

5) Which are the factors influence you to shop through online?

c) Delivery c) Low price or Discount offers e) Availability of

product

d) Busy lifestyle d) Various options or alternatives f) Ease of shopping

6) What are the factors influence you to shop through retail stores?

c) Salesman advise c) Payment facility e) Quality of product

d) Look & feel d) Loyalty systems (cards, points) f) Shopping

experience

7) Do you trust on online shopping or retail store shopping?

b) Online shopping b) Retail store shopping

8) If a product is priced equal both online & at the retail store through which option

you would like to shop?

b) Online b) Retail store or malls

9) According to you what would be the most effective way to attract customers for a

new brand launch?

b) Online b) Retail store or malls

52 | P a g e

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