Project Edited

8/16/2019 Project Edited

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introduction

OVERVIEW OF THE INDUSTRYRetailers 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 infoot falls at their stores.Internet penetration across the world:-

Indian e-commerce sales in !0"# is $!.% billion which is 0.# of total retail & e'pected to reach$%! billion which cover up % of total retail.(t present internet is growing at an annualized rate of %# and now has % billion usersworldwide. )ue increased reliance of www* e-commerce will continue to grow in ne't fewdecades.+ne survey pegs that by !0"5 India will have %0 million online buyers and consumers adapting toe-commerce sites compared with the !.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 consultanc group! more than "#$ million people in India to use

internet % 2$&#.'$-#$ o) them are accessing the we% on mo%ile phones. Below

shown is the image o) glo%all contri%ution e-commerce industr.



Impact of e-commerce has mainly affected on four perspectives,-" Impact of e-commerce on Indian economy! Impact of e-commerce on market% Impact of e-commerce on customers# 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 /(R of %0 since

1203* and is e'pected to be $"4 billion around Rs "* ""* 00 crore opportunity by 12"5. 6ayreach $70 billion by !0!0.

8igh growth rate on rising internet population* over %00 million middle class populations*increasing mobile penetration and low levels of e-commerce activity.

9-commerce contributes only 0. of the country:s ); vs "-% for other countries* with

only "! of India:s online population transacting online vs # for the <= and over 50 for/hina*> said (tul =oni and ?itin 6ohta in the report.

The nature of Indian e-commerce is also different. Travel has the lion:s share of 7" of

Indian e-commerce* but e-tailing has grown the fastest* at a 53 /(R between 1203-"%9* toreach " market share.



*+er+iew o) contri%ution o) e-commerce to Indian G,

Year % of gross doestic

!roduct"##$ 0."%"#1# 0."!"#11 0."#"#1" 0."5"#1 0.""#1&' 0."4"#1(' 0."4"#1' 0.!"#1*' 0.!"

") Impact of e-commerce on market-/arket share o) 0-commerce companies in India :-

9-commerce business in India is e'pected to reach around $50-70 billion by !0!0 on the

back of a fast growing internet-connected population and improvement in related infrastructurelike payment and delivery systems.

The size of India:s e-commerce market in !0"% was around $"% billion* according to a @ointreport of A;6 and Internet and 6obile (ssociation of India I(6(I. The online travelsegment contributed over 70 percent of the total consumer e-commerce transactions last year.



0-commerce industr Categor wise distri%ution (2$&4!

B/onsumer mentality and shopping patterns are changing very fast. +nline shopping isgoing to become main stream in the coming five-si' years.

=mart phones would be the biggest online shopping driver in the coming years.B+ver half a billion Indians will switch to smart phones in the ne't five-si' years. That:sgoing to be a big driver of e-commerce in India*>

+nline shopping is becoming increasingly popular in smaller cities.BTier-II and Tier-IIIcities are opening up very rapidly. Cy !0!0* e-commerce will penetrate everywhere* whether it issmaller cities or rural areas*>

=achin and Cinny Cansal co-founded 1lipkart in !007*they claim the company now controlsnearly one-third of India:s online retail business and has over " crore "0 million registeredusers.BCy !0!0* 1lipkart target is to be a $!0 billion company. 9-commerce companies areinvesting a lot on technologies* especially on mobiles and the supply chain*>

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S,O.EThe scope of study is as wide as an ocean and thereby the implementation hurdles. Ehen onethinks 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 isdifferent. (s information sharing is the ma@or part of the corporate industries* networking hasgiven boos to e-commerce business. This change in view-point has opened door for newopportunities.This study is helpful in e'ploratory 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 servicestandards 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 towork in proper direction. ( well-educated sales force would develop. The sales force then will beable to provide information to the consumer and guide them. This would add to the profitabilityof the company.

This study will give tremendous benefits to brick and mortar companies a new way to createawareness among customers about the benefits of shopping e'perience through physical stores.

This study will mainly help in how brick and mortar companies can enhance their focus onlogistics department* presence over market & service standards to compete with e-commerce.

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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.

(verage transaction value is low as the customers prefer traditional stores for e'pensive purchases.

/ustomers are not yet comfortable with the concept of online payment.

Indians are still believes in touch and buy concept.

/oordination with suppliers and courier is tough.

;rice biasing to maintain the margin. e.g., Jow price for the best seller book and more price

for the least wanted.

+;;+RT<?IT2,-6-commerce is the ne't development in the related market to reach higher customer base.

Increasing internet penetration and high speed mobile internet connection opens up

interesting opportunities for e'pansion.

=pending behavior of the new generation is favorable.

Targeting the younger customer base through social media.

1avorable regulation by overnment.

?o 1)I in C!/ internet market. 8ence* sheltered from foreign competition.

(lready working towards customer delight and it will obtain customer loyalty gradually.!% D ; a g e



T8R9(T,-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 additionto fight for market share among competitors of comparable sizes.

9arly starters in 6-commerce field can poach the customers."00 1)I in C!C internet market and pressure on government by (mazon for similar stepsin C!c Internet market.

9ntry of oogle in online 9-books and movies market.

/ompetitors capturing alternative market through innovative strategy e.g. Cuild a Cazaar by infibeam

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

/hance of hacking, security issues.

1uture legislations.!# D ; a g e



.EST 4N4:YSIS FR46EWOR;

;olitical,-overnment support for increasing internet penetration in India.

Ta' benefits to corporate.

!0"! increasing stock holding for foreign investors in companies.

Resistance against foreign retailers.

9conomical,-Cooming Indian economy.

Increasing spending power.

Case of internet users multiplied by "0 to "" times in last years.

=ocial,-Cetter comfort level and trust in online shopping.

8igh priority on time and convenience.

Improving uses of broadband and high computer literacy.

Technological,-(dvent of mobile shopping.

Increasing penetration rate of Croadband and wireless internet.

Cetter manage 9-commerce sites for ease privacy and advancements in net banking.

* .<s OF E+,O66ER,E;roduct,-(ppearance- the ease in the websites interface even for the first visitor.

Luality- checking of the product before packing Kisual test.

;acking- different packing e.g. bubble pack for electronic items

Crands- all brands integrated in one websites.

Earranty- one year warranty for the manufacturer:s side.

=ervice & support- guarantee delivery of undamaged product or else replacement in %0 days.

;rice,-=pecial discount

(s shipping is within India the shipping cost reduces.

=easonal discount.

1ree shipping.

1or e'pensive products transit cost is born by company.

;lace,-

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



/ompany owned warehouse in ma@or cities near airport.

If the couriers can:t deliver to the location the product is shipped through government post.

;romotion,-=9+ and =96

Eord of mouth marketing.

TK/ lately to encourage non- online shoppers.

6ore online marketing like 1C* Twitter* JinkedIn.

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(d-spend are growing by e-commerce companies year on year at 50 rate. #3*000 /restimated (d-spend across all media in !0"5 & Rs.500 /r likely (d-spend by e-commerce

players in the present I;J 4.Celow is the list of information of (d-spend through e-commercecompanies.

E+coerce .2a/ers 4d+s!end ="#1&)

F2i!7art Rs>1#+1*# ,r

Sna!dea2 Rs>1*#+1?# ,r

4a@on Rs>1&#+1(# ,r

;hysical 9vidence,)ifferent packaging for different product to ensure safe delivery.

/ompany name goes with the online cart.

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

;eople,-=ervice people* sales clerks* delivery drivers* managers* complaints departments* accounting*warranty people* technical people* all work for the customer ease* customer satisfaction andcustomer delight.

7 C’s OF E-COMMERCE





9 )emographic,

ender

(ge

eographic location

=ize of wallet

T4RAETB+

9-commerce concentrates on more psychographic* which helps deciding where to display

ads online.

They target online shoppers and people who don:t online shop TK/ to encourage them

)igital natives* families with children & busy professionals

.OSITIONINAB+/ustomer delight low price* free shipping* replacement

?o kidding no worries

+nline megastore

+ne stop solution

1esearch methodolog

INTRODU,TION+

his report is %ased on primar data secondar data. owe+er secondar data

collection was gi+en more importance since it is o+erhearing )actor in stud o) impact o)

e-commerce. *ne o) the most important users o) research methodolog is that it helps in

identi)ing the pro%lem5 collecting5 anal6ing the re7uired in)ormation data and pro+iding

an alternati+e solution to the pro%lem .It also helps in collecting the +ital in)ormation that

is re7uired % the top management to assist them )or the %etter decision making %oth

da to da decision and critical ones.

D4T4 ,O::E,TION+

Data sourcesB

.riar/ dataB Research is based on secondary data. ;rimary data can be used only for thereference. Research has been done by primary data collection* and primary data has beencollected by interacting with various people* and it was constructed in a manner of gettingma'imum information from the customers.Data too2sB

". The study was conducted based on uestionnaires to collect the necessary data, uestion wereasked and the necessary information was filled on the basis of the respondent answer.

!. The uestionnaires are in the structured form* the research study was done with the structured personal interview.



S46.:INA+

Sa!2ing !rocedureB

The sample was selected of them who are the household consumersHworking people6H1. It wasalso collected through personal visits to persons* by formal and informal talks and through filling

up the uestionnaire prepared. The data has been analyzed by using mathematicalH=tatistical tool.Sa!2e si@eB

he sample si6e o) our pro8ect is limited to &$$ respondents

DATA INTERPREATION & ANALYSIS

9uestns le)t

1I?)I?=Cy research it shows that males are doing more shopping through online compare tofemales.

(ge groups between ! to %5 do more shopping through online.

The ma'imum people prefer to do shopping from malls as compare to online.

;eople prefers to shop through online in which %5 people shops once in two weeks* !! people shops once in a month* #% people shops rarely and no one shops once in a week throughonline.

;eople prefers to shop through retail stores in which 55 people shops once in two weeks *

"5 shops once in a month* %0 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 discountoffer which is on 55 and follows by busy lifestyle is on !0.

The factors influence for shopping through ;hysical format* ma@or is #5 because of lookand feel factor and %0 due to salesman adviceHassistance.

5 people trust on retail shopping while %5 trust on online shopping.

If a product is price eual in online as well as in retail stores 70 customers prefer to shopthrough retail stores.

The most effective way to attract customers for a new brand launch in which 5% customerssuggest on retail stores or mall while #7 people suggest on



,ON,:USION The penetration of the internet in rms 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 servicestandards to reach up to their customer satisfaction level.

Brick and mortar business has to come up with a click and mortar model tosustain long enough into the market & to overcome competition.

RE,O66END4TION

reat retailers can boost of many advantage such as brand consistency* high customer awarenessand rewarding relationships.Retailers need to create more awareness among customers about benefits of buying products

through stores. 1or e'ample by more focusing on service standards.et into click and mortar business model.

Cy offering a niche product.

6ainly focus on size availability of merchandise on floor. 1or that we can collect a database

of size reuirement by customers from each store and should be operated by central warehouse todeliver the right product to the right customer within a limited period of time to overcome lossopportunities.

9nhance customer engagement plans. This type of engagement activities will be completelydifferent from the simplistic Blikes> buttons and vanity badges currently seen in many ecommerce

sites. It has to be more value-driven engagement plans.+pen up the new stores across cities.

To create separate shopping e'perience zone for customers we can place a kiosk on the shopfloor to give digitalization feels to customers.

9mpowering sales people with product knowledge.

Eork on web-sites* social media marketing plan and mobile app. 1or e'ample* by displayingof season collection on social media channel we can sell products also through web-sites ormobile apps. (s well as we can place a highlighter on web-sites and on mobile apps “TO GET

EXCLUSIVE COLLECTION VISIT OUR STORE”.

Cy differentiating our offerings by adopting different styles for online and offline selling.=uch as on e-commerce there should be limited options display and create customer awarenessthat if they want to browse more collection they need to visit retail stores.

(s retailer to overcome competency we can come up with a click and mortar businessmodel.50 D ; a g e



There is a trend of digitalize market and customers are looking for use of digital medium intheir shopping. 1or that we can provide i-pad to each concept in which there would be enormousinformation of e'clusive season collection.

Turn every shopping assistant into a personal shopper who remains socially connected withthe customer even after the sale. 1or e'ample (pple which

markets its associates as Bgeniuses> able to offer e'pert guidance* and Ehole 1oods* which also boasts its reputation as having a knowledgeable employee force.9ncourage shoppers to involve their peers and friends in the process of making in-store

purchasing decisions by leveraging mobile devices. 6ost people are hesitant to make choices.=ocializing 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 salesassociate need to converse and simultaneously engage remote friends via new forms ofinteractions on mobile devices.

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Project Edited