On-line shopping does not only entail shopping for FMC goods. The on-line shopping part covers everything from booking tickets on-line to buying food. To very strictly understand what on-line shopping really is, we need to first know how it is defined.
The act of purchasing products or services over the Internet
So in the strictest of terms, tele shopping will not fall under the wagon of on-line shopping. But is this whole concept of on-line shopping really relevant for India? Given that a large number of population in India still prefers to touch & feel the products that they are buying. Also there is a major trust factor involved that the consumer has with the shopkeeper. The advent of ‘Mall Culture’ has taken its time to penetrate the Indian urban market. It is yet to create an impact in Tier-II and Tier III cities. Though the malls are a structure there, shopping is still relied on the local markets. Thus, the on-line market is yet to create a strong base.
I think compared to major markets abroad, US or Europe, the on-line shopping is very new concept to us. We would be willing to purchase books or may be go as far as buying electronics, but we are still hesitant to make a major purchase like gold or even clothing for that matter.
One of the major issues I think is the security of payments. We are not completely sure of the payment getaways. Though COD is an option, the whole hassle of returning the purchase, following up, etc., is probably what stops the Indian market to rely on the on-line store.
Also, 60% of population lives outside major cities like Mumbai or Delhi and does not have access to credit or debit cards. Also, majority of the population does not have the facility to internet to be able to access the shopping portals.
Today, we have virtual stores for groceries too, but it is hard to shake the mentality of freshness not being maintained in those products. May be once a week visit to the local vegetable vendor to buy fresh products that can be visually pleasing than taking a risk of ordering a stale product on-line is an option that is majorly adhered to.
The fact that a lot of web sites do not deliver as promised is only adding to the woes and contributing to people turning back to brick and mortar stores.
However, it is estimated that the number of Indian consumers with a smart phone connected to the mobile Internet could approach 220 million within the next 10 years.
Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015.
Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015. Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year 2015 with both online travel and e-tailing contributing equally.
Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites
I think that Indian market is maturing to accept the advent of e-commerce business. What is required is a more solid infrastructure and penetration in to tier-II and tier-III cities. It is important that the Indian consumer is empowered and given options when shopping on-line rather than having to choose between limited options. A better UI for the more common websites can be initiated.
The fad is here to stay and go on to become fab!!!
Image Source:- searchengineland.com
http://www.justone.co.nz
http://www.huffingtonpost.com
ww.itimes.com
http://www.radianinfosystems.in
archive.financialexpress.com
Fact Source:-
Indian E-Commerce Stats: Online Shoppers & Avg Order Values To Double In Next 2 Years!
http://en.wikipedia.org/wiki/E-commerce_in_India
http://www.businessdictionary.com/definition/online-shopping.html
Please Note:- None of the figures stated above are based on primary research. They are estimated values taken from various websites.
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