Impact of growth in E-retailing on general consumer market
E-commerce in recent times has been growing rapidly across the world. According to Report of Digital–Commerce. Industry sources indicate that this growth can be sustained over a longer period of time as e- commerce will continue to reach new geographies and encompass new markets. E-commerce means sale or purchase of goods and services conducted over network of computers or TV channels by methods specifically designed for the purpose. Even though goods and services are ordered electronically, payments or delivery of goods and services need not be conducted online. E-commerce transaction can be between businesses, households, individuals, governments and other public or private organizations. There are numerous types of e- commerce transactions that occur online ranging from sale of clothes, shoes, books etc. to services such as airline tickets or making hotel bookings etc.
The growing e-commerce industry can have a positive spillover effect on associated industries such as logistics, online advertising, media and IT/ITES. Currently e-commerce accounts for 15-20 percent of the total revenue for some of the big logistics companies. The revenue for logistics industry from inventory based consumer e-commerce alone may grow by 70 times to USD 2.6 Billion (INR 14,300 crores) by 2020. Currently, the inventory based consumer e-commerce model alone provides direct employment to approximately 40,000 people and is estimated to create 1 million direct and another 0.5 million indirect jobs by 2020. Low entry barriers have attracted many young and enterprising individuals to try their hand at entrepreneurship. Major domestic e-commerce companies are Flipkart, Snapdeal, Fashionandyou, Myntra, inkfruit, Dealsandyou, Homeshop18 etc.
Although many factors support the growth of e-commerce in India, the fledgling industry is faced with significant hurdles with respect to infrastructure, governance and regulation. Low internet penetration of 11 percent impedes the growth of e-commerce by limiting the internet access to a broader segment of the population. Poor last mile connectivity due to missing links in supply chain infrastructure is limiting the access to far flung areas where a significant portion of the population resides. High dropout rates of 25-30 percent on payment gateways, consumer trust deficit and slow adoption of online payments are compelling e-commerce companies to rely on costlier payment methods such as Cash on Delivery (COD).
Impact of growth in Supermalls on General Consumer Market
The consumer decision- making process is a complex phenomenon. The purchase of goods or services includes a number of factors that could affect each decision. Decision making is more complex and even more important for consumers today than in the past. Consumers are attracted by advertising, news articles, and direct mailings that provide an abundance of information, much of it with mixed messages.
In addition, increases in the number and variety of goods, stores, and shopping malls, and the availability of multi component products and electronic purchasing capabilities have broadened the sphere for consumer choice and have complicated decision making. With certain decision-making traits that combine to form a consumer's decision-making styles Understanding buying behavior pattern in shopping malls is not enough without understanding the composition and origin of the customer. Today most of the small town customers are attracted by the different things. So. that most of the Indian shopping malls don’t know what they want and loses their credibility and loyalty in customers. Shopping malls contribute to business more significantly than traditional markets, which are viewed as a simple convergence of supply and demand. Shopping malls attract buyers and sellers, and attract customers, providing enough time to make choices as well as a...
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