Dear Sir,
Apart from the existing shopping portals and exclusive portals, major offline retail chains – Videocon, Tata, Airtel, Prestige, Crossword - are launching their e-portals which could be much more than what their general outlets are. Now at this juncture, it might look as if thousands of portals are mushrooming and consumers may find it difficult to sift through the information and find the right one. But it shall not be so. After few portals come up, there always follows consolidation (they most certainly wait either for funding or for someone to gobble them up), after which is the sequential rise of aggregators bringing the best deals in one place.
There are divergent views on the future of e-tailing in India. Some experts are of the opinion that the foreign giants would dominate the smaller Indian ones due to their bigger investment capacities. Others believe Indian e-tailers do have the capacity to grow and give serious competition to the likes of Amazon and eBay, which is proved by the fact that Flipkart is still the market leader in online shopping in India even though eBay has been here much before Flipkart's birth. Myntra, Jabong, HomeShop18 and Snapdeal are all major players to be reckoned with. Proper planning, intelligent strategies and investor support will see them through the stiff competition. Acquisitions and partnerships are a given, but they need not only stem from the foreign players. To cite a few examples, Flipkart bought out electronics retailer Letsbuy for an estimated $25 million last year, Bangalore-based online fashion retailer Zovi has acquired rival firm Inkfruit and IRCTC, India's largest online transaction site, will now partner with Shop Online Trading, a subsidiary of Yebhi, to launch its online retail venture. Flipkart is looking at an IPO in the near future. Not only this, Indian e-tailers are actually looking to expand abroad as well. A case in point is designer kids' brand Kidology, which has already started export by retailing through a couple of stores in Dubai and will soon establish a presence in Abu Dhabi.
A country's prospect for online retail success is closely related to how many people use the internet and how many are comfortable purchasing or buying online. India, with its 12% of Internet penetration offers a huge market for growth potential; as around 140 million & growing population is accessing the internet each day. The number of online shoppers in India is on a sharp rise as the market along with the necessary infrastructure (banking, logistics and electronic technology) is building. Low penetration of organized retail and lack of availability of products is also facilitating e-commerce transactions in Tier 2 and Tier 3 cities witnessing a sharp increase in demand.
Please find body copy of my blog post for the last week (Week 1).
There are divergent views on the future of e-tailing in India. Some experts are of the opinion that the foreign giants would dominate the smaller Indian ones due to their bigger investment capacities. Others believe Indian e-tailers do have the capacity to grow and give serious competition to the likes of Amazon and eBay, which is proved by the fact that Flipkart is still the market leader in online shopping in India even though eBay has been here much before Flipkart's birth. Myntra, Jabong, HomeShop18 and Snapdeal are all major players to be reckoned with. Proper planning, intelligent strategies and investor support will see them through the stiff competition. Acquisitions and partnerships are a given, but they need not only stem from the foreign players. To cite a few examples, Flipkart bought out electronics retailer Letsbuy for an estimated $25 million last year, Bangalore-based online fashion retailer Zovi has acquired rival firm Inkfruit and IRCTC, India's largest online transaction site, will now partner with Shop Online Trading, a subsidiary of Yebhi, to launch its online retail venture. Flipkart is looking at an IPO in the near future. Not only this, Indian e-tailers are actually looking to expand abroad as well. A case in point is designer kids' brand Kidology, which has already started export by retailing through a couple of stores in Dubai and will soon establish a presence in Abu Dhabi.
A country's prospect for online retail success is closely related to how many people use the internet and how many are comfortable purchasing or buying online. India, with its 12% of Internet penetration offers a huge market for growth potential; as around 140 million & growing population is accessing the internet each day. The number of online shoppers in India is on a sharp rise as the market along with the necessary infrastructure (banking, logistics and electronic technology) is building. Low penetration of organized retail and lack of availability of products is also facilitating e-commerce transactions in Tier 2 and Tier 3 cities witnessing a sharp increase in demand.
Best Regards,
Stuti Gandhi
12DCP-111
No comments:
Post a Comment
Note: only a member of this blog may post a comment.