In music and books online retailing has been very disruptive for traditional B&M players and also in categories such as electronics and appearel e-commerce turnover is growing fast. However, market share of online players in food is still very low.
Considering food, online retailing seems to be a far way off. Food id generally purchased after in-depth evaluation of its freshness, which is considered to be a major parameter of food quality. Being a perishable item , consumers generally prefer to buy it from traditional stores. However online purchase can be made foe items that have a reasonable shelf life (this may include frozen food too). The medicine market comprises of secondary market , the choice of drug being dependant on the recommendation of a medical practitioner. Under such a circumstance it may not provoke online purchase except for some otc drugs.
Competition among retailers has been tougher. A retailer without a significant competitive advantage doesn’t stand a chance. Superstores are battling each other on every major corner, while On-line retailers are stealing customers from stores. Some consumers are using stores as showrooms where they can touch and feel the merchandise, and then making their purchases at lower cost online at sites. Online retailing at deep discounts is even making inroads into major consumer purchases such as jewelry.