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I nternational J ournal of scientific research and management (I J SRM)

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


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


D. Baskar, Special I ssue On e-Marketing Road Ahead Of I ndia 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 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
D. Baskar, Special I ssue On e-Marketing Road Ahead Of I ndia Page 40
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
i
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
D. Baskar, Special I ssue On e-Marketing Road Ahead Of I ndia Page 41
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

D. Baskar, Special I ssue On e-Marketing Road Ahead Of I ndia Page 42
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-
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

D. Baskar, Special I ssue On e-Marketing Road Ahead Of I ndia Page 43
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 Sin -tailing-Sustaining a Successful Business
-zine, FICCI.
2.
Effects of Interactive Ai
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Investopedia, A Forbes Media Company.
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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
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10. Sahu, R.P. (2010), Higher Sales Boost Retail, Business Standard, section II, 21.