I am from india and working on the what are the factors driving to change the Retail industry in india and whether it' suitable to our context?
Hi Phani,
Broadly the four factors that drive Indian retail industry
1. Increasing income (dual income in nuclear families),2. Urbanization, 3. Robust usage of Web & technology and finally macro policies of govt (FDI,GST,infrastrcture improvement.. ).
Definitely Customer Loyalty can be changed to Ecommerce but in future....As per my view, Indian consumers are skeptical when it comes to nature of buying. Only 40% of retailers are having strong consumer database.
Hope it provide some insights for u on the subject.
Rgds,Sandeep
NOT in near future atleast.
Reasons
a) Resistance to use internet for any purchases from various demographics of consumers
b) The Culture of convenience store is so deep rooted that consumers still have total faith in the Brick n mortar stores.
c) There is no credit system on online retail store so, consumer may flirt with online portals but may not shift the loyalty.
d) India is one of the most complicated market I must say with respect to buying behavior. so online retail has not yet cracked it.
Hi Pasumarthy ji,
Yes,it seems to be possible. According to a recent study conducted by ASSOCHAM, consumers were expected to splurge about Rs 52,000 crore) on online shopping during festive season(beginning with Navratras, Durga Puja, Dussehra, Diwali and Christmas ) in the year 2015, translating into 40-45 per cent sales increase for e-commerce players. In fact, consumers spent Rs 30,000 crore in the year 2014 during festive season. The consumers are wooed by heavy discountsand combo offers. The customer is connected 24x7 through smartphones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce. Hence, customers are fast moving towards online buying.
The Internet World Stats estimates for November 2015 indicate 3,345,832,772 verified Internet users in the world. This corresponds to an Internet penetration rate of 46.1%. In other words, nearly half of all the people in the world have access to the Internet. India is one of the outstanding country for its innovation and new technologies, e-commerce will be increased rapidly in India too.
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