Products are not sold directly to customers but marketed to make customers get attracted. Still it is found that companies are treating online customers with a certain level of ignorance, which will eventually lead to the loss of customers. There are many challenges that the current E-Commerce shopping portals are facing. Just go through them, innovated methods have to be adopted.

1. The Great Indian
Middle Class
Needs a
Different E-Retailing
India has an internet user base of about 243.2 million as of January
2014. Despite being third largest user base in world, the penetration
of Internet is low compared to markets like the United States, United
Kingdom or France but is growing at a much faster rate, adding around 6
million new entrants every month.
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2. 2
The Indian middle class, who are target the consumers for
many companies, is expected to swell up to 267 million people
in the next five years, up 67 percent from the current levels,
thus providing a great market opportunity for firms, according
to NCAER.

3. 3
A report by National Council for Applied Economic Research’s
(NCAER) Centre for Macro Consumer Research said by 2015-
16, India would be a country of 53.3 million middle class
households, translating into 267 million people falling in the
category.

4. 4
Besides, the growth in the number of middle class
households will translate into huge demand for the
products such as cars, televisions, computers, air-
conditioners, microwave ovens and credit cards,.
The report said a typical Indian middle class
household spends about 50 percent of the total
income on daily expenses such as groceries etc., with
the remaining goes into savings..

5. E-Commerce has the potential to
create personalized experience for
the shopper even though good
analytics is required to understand
its power.
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6. E-Commerce market is expected to reach
Rs 1, 07,800 crores (US$24 billion) by the
year 2015 with both online travel and e-
tailing contributing equally. Another big
segment in E-Commerce is mobile/DTH
recharge with nearly 1 million transactions
daily by operator websites.
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7. E=Commerce is advancing at a fast
pace, and many online E-Commerce
websites are entering the Web every
day. The competition is continuously
increasing.
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8. Products are not sold directly to customers but
marketed to make customers get attracted. Still it is
found that companies are treating online customers
with a certain level of ignorance, which will
eventually lead into the loss of customers.
8

9. There are many challenges that the
current E-Commerce shopping portals are
facing. Just go through them, innovated
methods have to be adopted.
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10. The Great New Way of E-Shopping
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11. Unlike US, UK and other European
countries India is not homogenous
country and retailing even for e-
commerce business has to be
different.
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12. Incipient concept to address these issues and
additionally to get middle-income people to
come into the fold.
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13. Now let us visually examine the incipient way
of shopping under the e-commerce retailing.
Indian middle-income segment of people
conventionally wanted to do shopping in their
favorite stores partly due to sentimental
annexation and the close rapport relished
with the shopkeepers.
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14. Therefore, it is arduous to break this
custom and make them purchase
through faceless computers or I
Phones.
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15. To perpetuate this tradition, the
shopkeepers will become the
members of the incipiently composed
E-Commerce portal and perpetuate to
patronize their customers with
personalized accommodation.
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16. The scope for this format of e-commerce retailing is
tremendous and covers predominantly jewelry
shops, textiles, and even grocery stores.
16

17. Customers who authenticate into this
website will have a congenial feeling of
visiting their favorite shops and will
perpetuate to get same personalized
accommodation.
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18. The website will open in a central
reception centre where the customers will
be guided to their favorite/ preferred
shop.
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19. Customers can shop in popular shops
situated in sundry geographical
locations spread all over India from
Kashmir to Kanyakumari.
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20. Under this unique e-shopping, the sundry
quandaries faced by the subsisting players
will be solved. Estimated sales will double
in years time.
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21. The detailed execution document prepared
will particularize of structuring this unique e-
marketing project.
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22. 22
This incipient e-retailing project doesn’t
require colossal investments, stocking
space unlike the subsisting online
marketing companies rather investment will
be more on human capital.

23. 23
More accentuation will be on after sales
accommodation and customer gratification
by coordinating with member stores.
Member stores will have access to the
customers spread all over India through this
incipient e-retailing project.

24. 24
The middle-class society of the people will
have the same gratification of purchasing
products and accommodations online, in
the same way like physically purchasing.

25. Considering the recent development
in the retail industry, which is
dominated by e-commerce business,
has substantially contributed to the
magnification in the retail industry.
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26. However, I find there are some
quandaries faced by this e-commerce
business, such as customers’
adhesion, logistical issues, storage,
and warehousing quandaries.
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27. 27
In India supermarkets, hypermarkets may not be
as prosperous as that of E- Shopping that may
bring in much needed organised retail.

28. 28
Mohan M Gobal Chartered Accountant, Founder “Asian College of
Political Management”