Friday, 10 October 2014

E-shopping grows in India; Catching mind-boggling pace this festive season


Every other revolutionary idea comes with a baggage. Sometimes, certain drawbacks of those ideas remain veiled behind the glitzy appearance of the entity itself. The path-breaking online business idea of purchasing through the World Wide Web or www has broken down the physical barriers between the sellers and the buyers, making every other item available to people from all over the world at the click of a mouse. Internet has made a massive expansion and a technology boom has unleashed upon the world since 2000. In countries like India though the trend of online shopping took some time to develop, its growth pace is getting unimaginable with each passing day.

Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from sellers over the Internet.

While the paragraphs ahead will shed light on how E-shopping volumes have grown in India and how its pace this festive season is mind-boggling one, we will also discuss the merits and demerits of this revolutionary idea. What is mind-boggling is the all time record of online shopping estimated to cross Rs.10,000 Crore during this Diwali season alone. The online retailing is seeing the biggest flip ever in the history. This trend will not only continue but it will grow unimaginably according to many market analysts.

A few days back I was chatting with some industry experts and became surprised to learn that presently this market estimated at Rs. 12,000 Crore and could cross Rs. 1,00,000 Crores a year in India over the next three to four years.

As per Associated Chambers of Commerce and Industries, Indian e-commerce industry expected to spend around 500 to 1,000 million USD in the same period on Infrastructure, Logistics and warehousing, leading to a cumulative spend of 950 to 1900 million USD till 2017-2020.

e-shop store warehouse

India online shopping may increase by 350 percent during Diwali festival time as against the jump of 200% in August-September. As a result of this shopping malls have started feeling jittery as the footfall in malls is likely to go down by 50-55 percent. With no government regulations existing to check a level playing retail market, the situation is quite indifferent.

This festive season, shopping on ground appears to have taken a back seat. With abundance of choices people are avoiding the usual hassle of traffic and queues at shopping malls along with the convenience, rising fuel price, security reasons and online discounts are keeping a large section of the consumers indoors.

The Associated Chambers of Commerce and Industries survey shows besides major cities like Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun but even smaller cities are fast coming in grip of the online shopping fever.

Market analysis show Delhi-NCR has recorded the highest decline in footfalls at city malls. Shopping spirit in malls is lowest among residents of Delhi-NCR (49.5%), followed by Ahmedabad (48.2%), Chennai (46%), Mumbai (42%) and Hyderabad (39%). Around 250-300 malls came up in the country in the last two years but 80-85% of the spaces in these malls still lie vacant as per various surveys.

The online shopping has not only proved harsh for big shopping malls but even the traditional markets here are also facing the brunt of this phenomenon. Needless to say what the small time shopkeepers are experiencing or would experience in the coming time.

It is also learnt that there is more than a five-fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, and foot-wear being available at a cheaper rates and delivered at the doorstep within days of order. Buyers are turning internet savvy because of the fast and simple payment and delivery service.

There is a growing feeling among the retailers that this season the ‘first online Diwali’ may be observed with practically every item needed for the festival is up on the net for a grab. With services like click and collect growing in popularity, retailers are also adding to the options available, enabling their customers to shop online with convenience of collecting in store. 

In fact a whole new audience connected practically round the clock through their smart phones, tablets and other mobile devices which are leading to a gradual evolution of e-commerce into mobile commerce.

While there are some disadvantages of online shopping where you get delivered something, which is a distant-cry from what you were expecting it; likewise online shopping does not offer the liberty to bargain and we are bound to buy the item in the quoted price. Quality of products sometimes varies from that shown and delivered is also an issue. Many times description of the product varies from the product. As a result you might end up with inferior quality product. Returning an item is difficult in online shopping. Although seller accepts sells return, they usually want the item within a short period and you also have to pay for the shipping charges. One also needs to guard of to whom to share your debit/credit card and bank account numbers. There have been incidences when people duped and cheated monetarily while trying to grab a product at un-imaginable low prices.

On the other side of the coin there are some products which you don't want to buy publicly. You can buy any kind of product from online web store anonymously to keep your desired privacy.

Well what ever be it, e-commerce is bound to emerge in the coming time. The only thing is the government should make and make fast adequate regulations for e-shop sellers for a level playing field with the traditional market sellers thus making sure the market does not lose its balance.

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