Re: 4th blog for E-Business (12DCP-123)

International brands and Companies are looking e-commerce as a complementary to their main business. To expand geographically with ease, e-commerce is providing a very good platform to enter the new markets.

 

For instance, Reebok is trying to open new stores in India to meet the demand that is going to increase in the market segment of mid-teens for its products. They are planning to open 50-100 stores per year. To meet the excess demand, Reebok says, "We are looking at other opportunities and giving e-commerce a serious thought. We're doing a fairly decent e-commerce business right now through some of the largest portals in India. That has made us look at the possibility of starting our own e-commerce platform in India. "

 

Although FDI reforms in India are not extended to E-commerce yet, due to improvements in logistics, delivery to most of the places in India is possible in just two-days now.

 

The companies have to re-look at the extent of penetration through their physical stores and the territory that can be covered through other channels like e-sales.

 

E-commerce channel is helping businesses to rationalize on the number of physical stores to maintain and also on the assortment of products that they have to maintain within each store.

 

With increased cost of maintaining physical stores and also the complexity of regulations to get a single license brand in India, International brands are relying on E-commerce mostly.

 

 

Source: http://www.business-standard.com/article/companies/plan-to-start-our-own-e-commerce-platform-to-tap-india-erick-haskell-113111800222_1.html

Vaibhav Agrawal

12DCP-123

+91-7840085066