The online retail industry in India is strangely silent. The overall online pie is still very small. Roughly speaking, Indian consumers are not shopping online. The suppliers of the retailer, or see the online channel as a drop in the bucket. New online merchants are slowly emerging - but the Indian e-commerce is not just seem to hit his stride. What does this mean? Online trading is not for the Indian market? They are the cultural preferences of Indian customers so unique thatE-commerce will never be a mainstream status? Even if the current situation paints a very bleak picture for e-commerce in India, I remember the time when we went on vacation in Florida, only to discover that the area was hit by about a Category 3 hurricane. By standing on the balcony of the hotel room, I felt an uneasy calm. Wind was calm, but I felt something big was coming. Two years later, I'm at the beginning of another perfect storm - a stormthat will change the face of online shopping in India.
It is no secret that retailers pass through a major organization in India. Some might argue that this opens up interesting possibilities for consumers in a retail store, which would further impact the adoption of online shopping in a shop in a negative way. Fair argument, however, like to tell me some specific reasons why I believe that a reverse phenomenon is inevitable - the organizationPhysical retail fuel an explosive growth of online e-commerce in India.
Why the slow adoption of eCommerce India?
Before examining the factors that will be a player in the explosive growth of e-commerce is important, because not so far taken in India to look for eCommerce. Although it is some debate on this issue, for me, the more fundamental reason that still do not see enough most of the value proposition of the Indian consumer in online shopping. You can notguilt, because in recent years, a lot of horror stories, not the right products, it is to get products in time, back to slow, despite the problems and processes of using online shopping. On the other hand, can not completely blame the store, in the case of third party logistics partners that are not yet sufficient size and state of the art automation have made consistently set the valueService levels. These questions really point to the absence of a mature eco-system through the value chain of electronic commerce. The organization is a significant increase in retail sales this eco-system, to help build confidence among consumers, so as to give ease in shopping online.
organization of retail eCommerce ecosystem cure
First, as the retail trade in India, the entire infrastructure of supply chain is organizedsee a significant improvement. This is a direct and positive impact on the online channel. Today, the online supply chain infrastructure is virtually non-existent. Traders use of ad hoc means to replenish stocks and to meet customer orders. This leads to significant "out of stock situations, the impacts of all online customer experience. According to present a solid infrastructure of supply chain, retailers will be able to fulfill orders online for the foreseeableWay.
Secondly, retailers organized for the normalization of producers and partners to promote the execution. If we look at categories such as clothing, one of the biggest reasons consumers do not like to shop online is that they do not know what they can achieve in terms of size, quality and fit. However, as the standardization of the qualities and attributes that consumers feel more secure to buy products online without the "touch and feel" of physicalProduct.
Another factor, an important role to play in building this eco-system is the automation technology throughout the value chain. For retailers nationwide to maintain a competitive cost structure, which will push manufacturers and suppliers of sophisticated technology integration, so you can better manage the flow of goods to offer the entire value chain. Online merchants will benefit directly from this complex technology as it is able tomeet customer orders in a predictable way.
Finally, national retailers have to focus on large quantities of inventory in their distribution centers to their stores across India Service. warehouse is equipped with an inevitable risk of over-prediction. Under these conditions, excess inventory, point of sale to liquidate the assets must be free of capital and goods flows into the season fresh in stores. The Internet is a great channel for the evacuation strategyThe online retailers can offer deep discounts to clear inventory before you get ready for the next shopping season. In the United States, the various online retailers such as Overstock.com to the business model of purchasing goods from store retailers throughout Germany, and offers deep clearance prices for customers built.
A look at the Supply Chain & Fulfillment
The above factors contribute to the adoption of e-commerce from the Social FundChannel much more reliable. However, the role of the online channel is not over. With the organization created in retail, new business models online that will help both online and offline sales. In Sears, we have used this "Web Sales with" give it a name. Over 70% of retail sales in the category high return in the United States are affected by a type of Internet search. There are companies that provide online comparison shopping services (such as Shopping.com)Discussions on special offers (eg Fatwallet.com) and comments (eg CNET.com), Local Store Promotions (ShopLocal.com), etc. All these services are part of the online eco-system that provides information to consumers fingertips , so you do not have to save sifting through 100s of print ads, or rely on word of mouth to determine where you can purchase the new Xbox 360 console. Since organized retailing in India, we are developing similar aggregation of online and retail services focusedthat not only help customers make informed purchasing decisions, but also the online channel in the middle of retailers online and offline.
The confluence of these factors is the stage for a perfect storm that the role of the online channel in the minds of the Indian buyer will be relisted.
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