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Presented Paper at National conference on EMERGING TRENDS IN RETAILING INDUSTRY titled E-TAILING BENEFITS, HURDLES AND FUTURE at SNR Institute of Management Sciences, SNR Sons College (Autonomous), Coimbatore-641006.

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  1. 1. E-TAILING - BENEFITS, PROBLEMS AND THE FUTURE<br /> Presented by S. Syed Nizamudeen., B.E.,<br />On behalf of<br />U. Syed Aktharsha., MBA. M.PhilAssociate ProfessorJamal Institute of ManagementJamal Mohamed College (Autonomous)Tiruchirappalli<br />
  2. 2. INTRODUCTION<br />E-tailing or e-commerce can be described as transactions that are conducted over an electronic network, where the buyer and merchant are not at the same physical location.<br />For example plastic card transactions via the internet. <br />E Tailing or E RE-tailing market is only about 1150 Crore INR-survey conducted by (IMRB).<br />
  3. 3. TOP TEN E-RETAILERS<br /><br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /><br />
  4. 4. GROWTH DRIVERS<br />The need to save time by urban India<br />Internet<br />Changing demographics (youthful India)<br />Changing lifestyles and exposure to the developed markets<br />The soaring real estate costs in India.<br />
  5. 5. BARRIERS TO GROWTH <br />High cost of customer acquisition in India<br />Less popularity for high margin goods like apparel because of touch and feel factor<br />Fear of using credit cards as Indians feel that “what you see may not be what you get”<br />Problem with complaint resolution, especially after receipt of wrong goods or delayed delivery. <br />
  6. 6. THE REAL ISSUES <br />The Indian Retail industry has always thrived on personalization<br />They sense the customer’s mood, remember customer’s preferences and budget – which no CRM software can claim to do. Some issues to be considered are:<br />Customer is the King<br />Supply Chain<br />New Business Models<br />Comparison Shopping and Customer Reviews<br />
  7. 7. 4 P’S AND E-TAILING<br />Product:Psychology of buyer and types of goods make difference in shopping at real places or shopping online. <br />Open retail stores for goods that you can sell on line easily. E.g. Amazon did for Books & CDs <br />Place: To establish retail stores there is a need for heavy expenditure. <br />Instead open e-tailing store on Internet with support of warehouse located at cheap place in your town<br />
  8. 8. Price:Working capital costs are less so on line stores can reduce prices when compared to living retail stores. <br />That’s how one can attract many customers to buy on line with incentive schemes and home delivery<br />Promotion:E-tailer needs to promote heavily to get customers from real world.<br />Building trust and security are most necessary<br />
  9. 9. POPULARITY OF E-TAILING<br />No real estate costs<br />Easy and comfortable<br />Better interaction with the customers<br />Mass Media<br />Benefits:<br />Much wider choice at fingertips<br />Price discrimination<br />Customized product placements<br />
  10. 10. HURDLES in e-tailing<br />In India , Internet is unlikely to gather a sizable slice of market<br />Cities like Mumbai or New Delhi might not be a haven for an e-tailer<br />Low penetration of credit cards and the lack of popularity of debit cards<br />Mounting competitive pressures<br />Shopping is still a touch--feel--hear experience<br />
  11. 11. Inadequate information provided when the customers discerns it<br />E-tailer has no 100 % access to customers.Limited only to on line users -Not all customers have access to the web<br />Ease of use is a problem, as the web design is still complex<br />Trust, security and privacy concerns prevail<br />
  12. 12. What kind of retailing model is going to deliver the goods in the Indian scenario? <br />Collaborative commerce (e-commerce): <br />An e-tailer may collaborate with some manufacturers and suppliers which reduces the distribution cost<br />Create economic value:E-tailers should create economic value for the customer rather than a curiosity value<br />
  13. 13. CONCLUSION<br />E-tailing is a new industry in India<br />Most growth drivers are in India’s favor<br />Demographics<br /> Economy<br /> Changing lifestyle<br /> Exposure to new ideas<br />It is thus important to create a sustainable eco system for E-tailing, which is at an inflection point<br />
  14. 14. Thank you…<br />Contact<br />Website :<br />Email :<br />