Indian Retail Industry
Indian Retail Industry
Indian Retail Industry is the 5th largest of the world. Comparing organized and unorganized areas retail industry is fastest growing in India. Esepically for the last few years.
The high growth of Indian Retail Industry is due to huge amount of investments and breaking up traditional marketing sector. This growth is giving for Indian Retail Industry for further growth in Retail sector.
Now a days,Because of the increasing technical boom E-Shopping growth is increasing in India. And also one of the main reason Internet facilities also available in urban and rural areas.Other reason Growth in Credit Card Industry and also other online transaction methods.
The major focus area in Indian Retail Industry is supply chain management. In outside India retail sector is highly depending on the system supply chain. However development in the supply chain in Indian Retail sector is quite slow.
Other area that needs attention for growing Indian Retail Sector is including duty and tax structure,infrastructure , rising land prices and effective trend forecasting. Trend forecasting needs to be done in the country especially in the segments of cosmetics, apparel and footwear for this will help the retail companies to curtail their expenses substantially.
The chains in the Indian sectors needs to be changed frequently their stocks and also provides home delivery facilities. If all these area are implemented,then the growth of Indian Retail will increase fatly.
Why Indians are fear about the Online Shopping?
In India E-commerces has been very slow track compare to other countries in olden days. Because earlier days lack of Internet accessing knowledge and also lack of Internet facilities.
Some of the reasons which are working against the E-Shopping industry.
- Product demo is not available.
- Bargaining is not possible.
- Delay in product delivery
- In security of creditable of shopping portal
- Not sure of product quality
- Low retail management skills.
Why People are choosing Retail Industry?
Online shopping is most convince for customers. And also it will give better deals for their money.
It has more advantages some of them are.
- Saves time and efforts
- Convenience of shopping at home
- Wide range / variety of products are available
- Get details / demo of the products
- We can compare various of products
Indian Internet Retail- The Internet Retail Vision 2010
The Indian Online Retail is a rich segment waiting to be exploited. Internet is a potent medium that can serve as a unique platform for the growth of retail brands in India. The medium holds many virtues favorable for the retail industry including a higher customer penetration, increased visibility, and convenient operations.
- Mail-order companies: 50+ years in remotely dealing with consumers
- Advantages due to existing client base and infrastructure (logistics, CRM, etc
- Pure players with only limited access to clients
- Online marketing (not performance marketing) helped players to keep brand awareness
- "Old" players: processes and IT are not matching "online" requirements
- Brands/manufacturers learning to keep direct contact to consumer (flag-ship store approach in internet)
- Leading to higher pressure on retail sector, as brand focus in moving from retail-brand to manufacturer-brand
- Key advantages for new players: speed, user-driven, IT-enabled, new shopping experience, outsourcing infrastructure, etc.
- Performance marketing as a driving factor for "new" players
- Tesco in UK (successful)
- Wehkamp in Netherlands (successful)
- Vente privee in france (successful)
- Quelle in Germany (failed)
e-Commerce Industry Opposes New Indian Online Security Rules
A decision by India’s central bank to mandate another level of authentication for card use for online transactions will deter such transactions in the country, according to an association of India’s e-commerce industry. The Reserve Bank of India (RBI) told banks in February that it would require that online credit and debit card transactions have an additional level of authentication using information that is not visible on the card. The new rules come into force on Aug. 1.
To make a transaction, a user is currently required to enter his name, card number, card expiry date and card verification value (CVV), the three digits printed on the signature strip on the back of the card. Banks are also required to have a system of online alerts to the card holder for online card transactions for a value of 5,000 Indian rupees (US$102) or above, the RBI said.
The addition of a new security password will add a new layer of complexity for people wanting to do business online, Mehul Gupta, associate vice president of IAMAI (Internet & Mobile Association of India) said on Wednesday. Card holders have not been informed by their banks about the requirement for another level of authentication, which will lead to fewer transactions getting completed online once the new rules come into force, Gupta said.
Customers are already finding it difficult to complete transactions, because of the poor Internet connectivity in India, and the inadequate infrastructure of payment gateways, IAMAI said in a paper. Additional authentication requirements will result in a high failure rate of transactions, and increase customer inconvenience, IAMAI added.
Online card fraud accounts for only 0.16 percent of the country’s 92 billion rupees e-commerce industry in India, according to IAMAI estimates. Most of that fraud is through cards that were not issued in India, and which are not covered under the new rules, Gupta said.
IAMAI has asked the RBI to delay implementation of its order, to give time to merchants and banks to improve their capabilities to handle the new authentication mechanism, and also to give customers sufficient time to get acquainted with it.
"Online card fraud, given its current miniscule scale, should ideally be seen as a business risk that merchants are free to take or not to take," IAMAI said. In the e-commerce environment in India, the risk arising from non-payment or fraud is borne by the merchant site and not the banks or the card companies, it added.
Article Source: www.networkworld.com
E-Commerce Industry in India
E-commerce industry has touched 9210 crore, online classifieds: 820 crores, online travel: 7000 crores (30% jump from Rs 7,080 crore in ’07) as per the survey conducted by the IAMAI and IMRB
- Online Travel Industry: growth rate of 30% to Rs 7,000 crore by end FY08 (from 5500 crores in ‘07)
- Online Classifieds: reached Rs 820 crore by end FY08
- Online retailing/auction (eTailing): Rs 1,105 crore industries by end FY08 (from Rs 850 crore in FY07.
- Digital downloads (i.e. downloading from Internet to mobiles using wap phones or web) and paid content (research/exclusive videos/articles etc) for the rest of 285 crores.
Source: IAMAI and IMRB Analysis Report
The major triggers of e-commerce in India were:
- Saves time and efforts
- Convenience of shopping at home
- Wide variety / range of products are available
- Good discounts / lower prices
- Get detailed information of the product
- You can compare various models / brands
Some of the major barriers at present were:
- Not sure of product quality
- Cannot bargain/Negotiate
- Not sure of security of transactions / Credit card misuse
- Need to touch and feel the product
- Significant discounts are not there
- Have to wait for delivery
Article Source: www.pluggd.in
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