E-tailing or electronic
retailing may be defined as use of internet to sell goods and services online.
India is a developing nation with strong economical growth and the companies
view it as potential destination for good business. In the era of globalization, e-tailing is
beneficial approach to tap the global markets. The Indian companies face
competition from not only the local markets but also strong global competitors
who are utilizing the technology to capture the customers worldwide. The only solution to be successful in this
global contest is embracing e-tailing.
India has seen a
phenomenal increase in the number of internet users. This can be attributed to
the penetration of broadband services both by Government and private players in
most of the parts of the country. This has given an opportunity to the retail
sector to analyze the new medium (“Internet) through which they can reach the
customer. According to the Internet and Mobile Association of India (IAMAI) and
IMRB report, the E-tailing market was worth Rs 850 crore for 2006-07 and went
on to achieve 30% growth by registering a turnover of Rs 1,105 crore in 2007-08
and is expected to show growth in future too. According to the annual report
2009-2010 of Department of
telecommunication the internet users and broadband
users are estimated to reach 40 million and 20 million respectively (source: www.dot.gov.in).
Indians have started using internet not only for checking mails and for social
networking but also for online shopping. According to an article on www.expressindia.com on Jan 28, 2008
“Indian netizens are world’s third largest online shoppers.” While online shopping globally is
growing at around 8-10%, in India the growth rate is upwards of 30 %.( Economic
Times, 17th Dec 2009).
The Indian customer has
started viewing shopping as a memorable and enjoying experience and therefore
convenience is a major factor to facilitate this. They have money but don’t
have time but also want the best brands and deals offered to them. This is the
juncture where marketers have found the clue to increase the customer base with
the help of web.
Conclusion:
The Indian online retail market is witnessing a huge
potential and it is the right time to tap this market. The marketers have to
make sincere efforts so that the right customer traffic can be diverted to the
website. The customer should be given a complete shopping experience by
enhancing the design and navigation of the website, security, and customer
support, quality of product and return back policy. This will help in
increasing loyalty of online customer.