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“NCRD’S STERLING INSTITUE OF MANAGEMENT STUDIES” “RETAIL MANAGEMENT” ASSIGNMENT – 4 SUBMITTED BY – OMKAR AVINASH VICHARE - 37

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NCRDS STERLING INSTITUE OF MANAGEMENT STUDIES

RETAIL MANAGEMENT

ASSIGNMENT 4

SUBMITTED BY OMKAR AVINASH VICHARE - 37 VIKRANT ASHOK PATEL - 22 PAYAL MEHTA - ONLINE RETAILING / E RETAILING IN INDIAN

INTRODUCTION TO ONLINE RETAILING:-

The fact that world is fast dwindling into a universal community for the reason that of Internet and other communication mediums is not completely reflective in the Indian context. While developed and fast developing countries have understood the influence of Internet, India is still ignorant and trying to deal with up with the technological developments. The retail industry campaign has been repainted by Internet and the rules of the game in retailing are fast altering. The western culture has affected each and every aspect of our Indian Society. The life is becoming fast not only in metros but also in the normal cities. The number of nuclear families is increasing and both husband and wife are working, as they have less time to go to the market for purchasing every now and then. Some other reasons like these, say shortage of time, traffic jams, late working hours, versatility of plastic money and above all the approach of internet at the door step of whosoever desires it. Online retailers have improved their service and consumers have found it convenient. There is been transformation in payment mode as well. From advance payment it is moved to cash on delivery (COD). Even in case of delivery pattern is changed. From fixed delivery timings it is moved on to convenient delivery timings at the choice of the customer. India has opened the doors for foreign direct investment in retail.

Indian market is dominated by unorganized players but there is potential in the area of retail players as well. Entry of bigger players such as Big Bazaar, More etc. to even in the rural areas is paved the way of growth in its sector. There is been rise in the increase of Indian middle class people due to rapid economic growth. Though the population of using Internet in India is low in terms of by and large percentage of total population but, in total numbers it is very high. This gives enormous opportunities for various ecommerce sites to get in touch with this segment. The population accessing in India is the age group from 1845. Irrespective of this fact online retailing forms a meagre 0.08%of the entire Indian retail markets. Market players have to be more positive, revolutionizing and pioneering in their approach and offering to make serious inroads. In the current market, bulk of online sales is in a range of items. This market in India needs to leap to the next level.

PRESENT SCENARIO OF E - RETAILING IN INDIA:-

Currently the retail industry in India is accelerating. It is not widely accepted as the way it is accepted in Asian counterparts. India is excited to grow to be a most important player in the retail market. Since India is a developing nation, it is still not prepared for it. And they are leaving no stone unturned to become the best in retail Industry. Also India with a high on cross culture factor, it allows different companies bringing in variety of products Targeting different consumer segments. According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail. There are many factors contributing to the boom in this sector. Some of them are increased consumerism with the ability to afford luxury items. Even there is increase in the spending power of Indians. Indians are travelling abroad and they are exposed to different cultures, their way of living, their style and thereby more brands. Worldwide retailers eye the Indian market because in our culture there is lots of give And take for marriages, festivals and other important events. Hence its imperative for people to spend on gifts as a part a nd parcel of life irrespective of caste and creed and economic status. As there is no limitation to the spending power, Cities like Chandigarh, Coimbatore, Pune, Kolkata, Ahmadabad, Nagpur, Cochin, Hyderabad etc. has fine market for about all product or service which offers a good proposal for a brand to penetrate Indian market.

1. TRAVELING SECTOR - 76 %2. E- TAILING SECTOR - 8 %3. FINANCIAL SERVICES SECTOR - 8 %4. OTHER SECTORS - 6 %5. DOWNLOADS SECTORS - 2 %

RECENT TRENDS IN MARKETING STRATEGIES APPLICABLE AMONG INDIANCONSUMER:-

ONLINE SHOPPING:Currently, the most suitable marketing strategies applicable is internet marketing because it has been seen that the Indian consumers are buying products through online for example ; greeting cards, clothes, CDs/VCDs/DVDs, cassettes, books, magazines, medicine and educational material. The Popularonline shops/companies in India include:

CELEBRITY INFLUENCE:This is an important tool which is able to influence Indian consumer buying behaviour. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. Their activities and movements are being closely watched and imitated. It is not surprising therefore that using celebrities in advertisements has become common practice. In India especially, it is not difficult to look for the reasons as to why companies are increasingly using celebrities. Consumers like advertisements more if they are admirers of the celebrities in the advertisements.

QUALITY ORINTED OUTLET:Indian consumers looking for quality choose expensive brands as they feel that price is an indicator of quality. However, in the absence of well-known brands in selected product range, consumers are likely to take cues from well-established retail outlets hoping that these outlets carry quality products. FREEBIES:Indian consumer buying behaviour is influenced by freebies. Freebies are consumer products given free as gifts for purchasing selected products above a certain value. TVs, washing machines, refrigerators, and readymade clothes are some of the product categories in which freebies are given to Indian consumers. ECOFRIENDLY PRODUCTS:The environmental awareness in India has started affecting marketing of products based upon their eco-friendliness. In general, Indian consumers are likely to buy environmentally responsible products and packs. The future key for marketing could be to select more ethical and ecological responsible products and packaging, which is also convenient for consumers, thus, balancing environmental concerns with commercial considerations. Consumers in India are taking lead in prompting manufacturers to adopt technologies to produce eco-friendly products.

REASON FOR GROWTH OF E RETAILING IN INDIA:4 Reasons E-Retailing Is Set To Boom in India E-Commerce is one of the most exciting spaces for todays global online community, and Indias young start up economy is along for a ride. In the less than three months of 2011, Indian VCs have already invested over $50 million in seven e-commerce companies, a 400 per cent increase over the same period last year. However, e-commerce in India has a long road ahead, and e-commerce infrastructure and best practices are in their infancy. Indias 7 to 9 per cent Internet penetration lags far behind the 30 to 40 per cent China and Brazil enjoy, and while Indias estimated 100 million Internet users still comprise the third largest online population, the total Indian e-commerce market was approximately 3 per cent of the U.S. market last year ($6.7 billion versus $227.6 billion). Within these great challenges lie great opportunities, and the maturation of Indias e-commerce ecosystem is no different.A recent report by the Internet and Mobile Association of India reveals that Indias e-commerce market is growing at an average rate of 70 per cent annually, andhas grown over 500 percent in the past three years alone. Here are four reasons that e-commerce is set to boom in India, after years of false starts:

1. Critical mass of Internet users:With more than 100 million Internet users, the country is beginning to achieve a critical mass of users who are familiar with web services. In addition, over the past few years, relatively sophisticated online travel agents (OTAs), such as Make My Trip which started turning these initial Web users into Web consumers have dominated Indian e-commerce. While these OTAs have accounted for up to 80 per cent of Indian e-commerce in the past, industry giants such as eBay and the new crop of e-trailers expect to participate more heavily in this conversion of Web users to Web consumers, with an estimated 70 per cent growth in Indian e-commerce for 2011.2. Rising middle class with disposable income:Throughout Indias short history, the country has been a land of haves and have-nots. However, with the rise of small and medium enterprises, foreign direct investment, and Indias own powerful multinational corporations creating millions of new jobs, a new generation of globally-minded Indian consumers has been created. These consumers are spread across the country. Furthermore, access to many global and domestic brands is limited to major metropolitan regions, such as Delhi, Mumbai, and Bangalore. Therefore, this growing middle class is increasingly turning to e-commerce as the primary outlet for sophisticated consumer products and services.

3. Payment gateways & logistics:One of the largest challenges to e-commerce in India is the lack of infrastructure to support new businesses. Logistics companies have been notoriously unreliable, and complex interstate regulations mean that interstate logistics and paperwork is more like international customs. Additionally, Indians have an aversion to credit cards only an estimated 2 percent of the nation has a credit card. However, the new breed of domestic logistics companies recognize the importance of reliable delivery and technology investment, and a number of new payment gateway companies such as CCAvenue have sprung up to service the growing e-commerce ecosystem. Alternative payment methods such as net banking and cash on delivery are now mandatory offerings for leading e-commerce platforms and can drive as much as 75 per cent or more of transactions, and sophisticated technical integrations make the experience seamless.

4. User Experience: Of course, the primary driver for e-commerce anywhere is the user experience. Customers prefer a trusted relationship with an e-commerce brand, and the conveniences and reliability of e-commerce businesses have to outweigh the benefits of traditional retail outlets. Because there have been a relatively small number of successful consumer Internet companies in India, there has been less competitive pressure to force implementation of global best practices. However, as the number of e-commerce companies has grown, companies have started to place more emphasis on investing in the user experience. Best practices that have driven e-commerce globally are now a key focus of successful Internet companies, including merchandising, customer service, user interface design, and guaranteed delivery and return policy. In this competitive drive to differentiate via user experience, the ultimate winner is the Indian online consumer.GRAPHICAL REPRESENTATON OF GROWTH OF E- COMMERCE IN INDIA:-

EXPECTED TARGET PREDECTIONS IN ASIAN COUNTRIES

GROWTH OF E-RETAILING WITH RESPECT TO AGE, ECONOMIC GROWTH, INCOME AND EDUCATIONE- RETAILING :-AGE, ECONOMIC GROWTH,INCOME AND EDUCATION :-

1.India has an internet user base of about 250.2 million as of June 2014. The penetration of e-commerce is low compared to markets like the UnitedStates and the UnitedKingdom but is growing at a much faster rate with a large number of new entries.1.Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers.

2.Unique to India (and potentially to other developing countries)cashondelivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run and there is a need to make a shift towards online payment mechanisms.

2.Busy lifestyles, urban traffic congestion and lack of time for offline shopping Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs Increased usage of online classified sites, with more consumer buying and selling second-hand goods Evolution of the online marketplace model with sites like Jabong.com.

3.India's E-commerce market was worth about $3.8 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail market was worth US$ 2.3 billion. About 70% of India's e-commerce market is travel related. India has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis--vis a global growth rate of 810%. Electronics and Apparel are the biggest categories in terms of sales.3.Online Travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs. 54,800 Crore ($12.2 Billion) in size by 2015.

4.Due to increasing demand of e-commerce which is making our life easier and time saving.4.Due to this there is business opportunities in Logistics, it helps in increase in employment opportunities.

5.Educational growth play important role in the growth of the E-Commerce sector as people are able to use and understand the technological changes and the adaptability becomes easy.

Trust On E-commerce A Big Question:-

Risk of Losing Money: No. There is no risk of losing money unless we buy from the fake side. We should buy the mobiles from the trusted site so that there will be no risk of losing money.

Default of product risk:- Not at all. There is no risk at all because this are the products which this online sites buy directly from manufacturer so there no product risk.

Good Services:- Now a days we get delivery of products less than 2 or 3 days with good packing and without damage to the product within less time.

Fear of non-delivery of product order:- Yes there is fear but it is only when we buy that product from fake sides.

After sales services and convenient product return policy:- Because of the competition now a days the online sites like eBay or Flipkart are giving good sales services like when the product is defective then they immediately return the product and give new one.

Others experience:- After the study and the opinions by the people they are more convenient to do online shopping. Less time, reduced cost, discounts etc.