Factors contributing to the substantial growth of Indian E commerce and impact of E commerce on customer buying behavior’

By

E-Commerce is not a new buzzword for Indian customers but in the last 4-5 years Indian e-commerce market witnessed exponential growth like never before and this seems to be just a mere beginning. E-Commerce implies sales and purchase of goods and services online, or funds transfer over an electronic network, mainly internet. These transactions could be on any nature:
·         Business-to-business
·         Business-to-consumer
·         Consumer-to-consumer (OLX etc.)
·         Consumer-to-business.
From development of first online selling system developed by Michael Aldrich in 1979 to global e-commerce sales reaching around US$ 2842 million, e-commerce has came so far. Indian Brand Equity Foundation (IBEF) estimates Indian e-commerce to be worth US$ 188 billion by 2026 [An estimated US$ 12 billion market (in terms of Gross Merchandise Value), 2016]. Considering increasing mobile penetration, low internet charges and changing consumer buying patterns this seems to be an achievable figure. Indian e-commerce market sales are lead by consumer electronics followed by apparels segment. Electronics is currently the largest segment in e-commerce in India with a share of 47 per cent and is expected to grow at a CAGR of 43 per cent by 2020. The apparel segment has the second highest share of 31 per cent in the e-commerce retail industry. Products like food and groceries which were not considered a commodity to be traded online has also made their space in the recent past and are expected to grow in future as well and this growth is not confined to metropolitan or tier-1 cities, in fact a whole lot of e-commerce sales come from tier-2 and tier-3 cities. Easy access to information also contributed a lot to the growth of e-commerce market.
Key Factors that contributes positively to the growth of E-Commerce
·         Low acquisition cost
·         Convenience
·         Value added Services: cash on delivery, easy returns, refunds
·         Low data access costs
·         Increasing no. of internet users
In the beginning factors like changing customer dynamics and internet penetration were believed to be the core reason for the emergence and substantial growth of Indian e-commerce. But over the time, e-commerce became so impactful that now it is altering consumer buying behavior. E-commerce seems to grow for sure but the growth factors may not be the same as before. Traditional brick and mortar model seems to be losing the stage. It won’t go away, but its total share in overall sales will fall down for sure. E-commerce, being in its nascent stage grew slowly in the first few years but, both, the growth and pace of growth has been outstanding in the last few years and will only go up.
Morgan Stanley report stated that two third of the e-commerce sales growth happened because of new customer rest happened due to rise in purchases by the existing customers. Currently, there are 1-1.2 million transactions per day in e-commerce retailing and it seems to be only growing in the years to come.

Comments

Post a Comment

Popular posts from this blog

Teacher As: Critical Pedagogue

By
Education is not only a process of cognitive development. It is a process of overall development of the child. The whole teaching learning process consist with three important components i.e student, teacher and curriculum. In the process of curriculum construction, evaluation and feedbacks are an important aspect to redesign the curriculum. Evaluation cannot be made on the basis of academic achievement of the students. Teacher should play an important role in the construction of curriculum as well as transaction of curriculum. Thus there is a need that teacher should take initiative to evaluate the whole education system as a Critical pedagogue. It is an ability to evaluate our teaching and the practices prevailing in existing education system critically in relation to methods and practices adopted by the teacher to teach concern pedagogical subjects. Ira Shor defines “ Critical pedagogy is habits of thought, reading, writing and speaking which go beneath surface meaning, first impr...
Read more

ROLE CONFLICT PROBLEM AMONG WORKING WOMEN

By
Women of India have marked their significant presence in the world in various fields. They have been given the status of power and prestige in India.    Indian women has got much more significance in today’s developing times. Where until lately, they were shadowed by patriarchal dominance, the contemporary women in India have moved beyond all social boundaries to emerge as triumphant leaders of tomorrow. Not only has She taken up courageous roles in society, her own individuality as a ‘woman’ has now got an improvised meaning. The world has changed for females in India now. The daughters are pursuing successful ambitions in the male dominated corporate scenario and mothers are taking up flextime jobs to showcase their exceptional managerial talent. Today, our women have stepped out to become bread earners of the family. Although the trend is yet developing in India, The IT-BPO sector is becoming a female dominated industry in India with a significant number of capable a...
Read more

Rights and obligations of Issuer, Participant and Beneficial owner under the Depository Act, 1996

By
As per section 17 of depository Act the rights and obligations of the depositories, participants and the issuers whose securities are dealt with by a depository shall be specified by the regulations. Under the Depository Act, 1996 depository means a company formed and registered under the Companies Act, 1956, and which has been granted a certificate of registration by SEBI under sub-section (1A) of Section 12 of the Securities and Exchange Board of India Act, 1992 ). (Section 2(1) (e)) Work of Depository- The word ‘depositary’ is defined as “the party of the institution (company) receiving a deposit. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. It acts as a trustee of the owner since the securities are entrusted with him in trust. He is also the agent of the owner of the securities. Thus...
Read more