E-COMMERCE

CHANGING PHASE OF RETAIL

INDIA

Abstract
Electronic commerce is a process of doing business through computer networks. A person
sitting on his chair in front of a computer can access all the facilities of the internet to buy
or sell the product. Unlike traditional commerce that is carried out physically with effort
of a person to go and get products, e-commerce has made it easier for human to reduce
physical work and to save time.

Purpose
Purpose of this report is to explain current scenario of Indian retail sector and identify the
role of E-commerce in retail management. Purpose of this report is to convey a path to
policy formulator and researchers towards importance and role of e-commerce as
changing phase of retail industry in today’s business world.
Introduction

Retail Industry in India has come forth as one of the most dynamic and fast paced
industries with several players entering the market. The India Retail Industry is gradually
inching its way towards becoming the next boom industry. Retailing is expected to
change with the rapid development of new online sales and distribution channels that
literally can be used from anywhere, anytime-from work, school, a hotel, car, or airplane.

Meaning of Retail

Retail is the sale of goods and services from individuals or businesses to the end-user.
Retailers are part of an integrated system cal led the supply chain. A retailer purchases goods
or products in large quantities from manufacturers directly or through a wholesale, and
then sells smaller quantities to the consumer for a profit Thus, retailing can be said to be
the interface between the producer and the individual consumer buying for personal
consumption.
Classification of Retail Sector:
The retail sector is mainly divided into: -

a)Organized Retailing.
b)Unorganized Retailing.

Organized retailing refers to trading activities undertaken by licensed

retailers, that is, those who are registered for sales tax, income tax, etc
Hypermarkets and retail chains, and also the privately owned large retail
businesses.

Unorganized retailing on the other hand, refers to the traditional formats of

low-cost retailing, for example, the local kirana shops, owner manned
general stores, paan/beedi
Shops, convenience stores, hand cart and pavement vendors, etc

E-COMMERCE

Retailing is expected to change with the rapid development of new online sales and
distribution channels that literally can be used from anywhere, anytime-from work,
school, a hotel, car, or airplane. Almost every retailer is re-evaluating every aspect of its
operation from customer service to advertising, merchandising to store design, and
logistics to order fulfilment. Furthermore, reacting to the pressure of retailers, suppliers
are assessing technology based solutions to drive down costs.
Kinds of E-commerce:

1.The Business to Consumer(B2C): In this kind of e-commerce, the business sells

their products to the customers or consumers through online web portals, where you
search for your desired product, scroll them, add them to the cart and then buy it through
online fund transaction method like with the use of credit/debit card or net banking. The
best example of this is Amazon, Flipkart.

2.The Consumer to Business(C2B): The process of selling and purchase of items

or products through consumers to the business via the internet, for example, the paid
survey regarding any product of any company.

3.The Business to Business(B2B): The buying and selling of goods or products

over the internet between the two businesses or company. The best example for this is the
company which provides hosting services to the websites of other companies, like, GO
Daddy, which sells the domain and other hosting services to the other companies.

4.The Consumer to Consumer(C2C): When over the internet you sell a product
which you need no longer to the needy one it is Consumer to Consumer E-Commerce.
The perfect example of this is OLX, a wide platform where you click your good which
you need no longer and give an ad of it where the buyer can contact you directly through
the contact details provided by you on the website.

Recent Trend Of E-Commerce In Retail

Sector
1. Online Sales Growth is Unstoppable:
Ecommerce sales have been growing constantly and for good reason. Online shopping is
one of the most popular online activities. With the increasing popularity of ecommerce
stores, a rising number of people are turning to online shopping.

2. Rise of Voice Commerce:

Voice shopping is growing among Internet users. The total spend on voice shopping has
also gone up. This ecommerce trend has grown in popularity mainly since 2014 when
Amazon launched their smart speaker – Echo. While voice shopping is still in its early
stages, this shows us that it will become increasingly popular in the coming years.

3. Evolving Role of Social Media in Ecommerce:

The number of social shoppers is also rapidly increasing. With the introduction of the
“Buy” button on Facebook, and Instagram Checkout, social media is playing a significant
role in the world of ecommerce.

4. QR Code Payments Make a Comeback:

One thing that’s risen together with ecommerce is mobile payments, which have become
the norm. Research shows that more than one-third of the online population used mobile
payments.
Challenges Faced by E-Commerce
Business

1. Finding the right products to sell

Anyone can launch an online store within days and start selling all sorts of products.
Amazon is taking over the ecommerce world with their massive online product catalog.
Their marketplace and fulfillment services have enabled sellers from all over the world to
easily reach paying customers.

2. Attracting the perfect customer

Online shoppers don’t shop the same way as they used to back in the day. They use their
smart phones to read product reviews while in-store and pay for purchases using all sorts
of payment methods.

3. Converting shoppers into paying customers

Driving quality traffic and nurturing leads is key if you want to close the sale. At a
certain point, you need to convert those leads in order to pay for your marketing
campaigns. Retailers must constantly optimize their efforts in converting both email leads
as well as website visitors into customers. Conversion optimization is a continuous
process.

4. Retaining customers
Attracting new customers is more expensive than retaining the current ones you already
have. Retailers must implement tactics to help them get the most out of their customer
base in increase customer lifetime value.

Benefits Of E-Commerce Business

With increasing the need of ecommerce industry, every businessman is
looking to have an online store where they can sell their range of products
and services. Today, E-Commerce has revolutionized the way companies are
doing business. Now, consumers can purchase almost anything online 24*7
a day and get an ultimate shopping experience.

1.Convenience & Easiness:

For many people in the world, e-Commerce becomes one of the preferred ways of
shopping as they enjoy their online because of its easiness and convenience. They are
allowed to buy products or services from their home at any time of day or night.

2.Decreasing cost of inventory Management:

With e-commerce business, the suppliers can decrease the cost of managing their
inventory of goods that they can automate the inventory management using web-based
management system. Indirectly, they can save their operational costs.

3.Keep Eye on Consumers’ Buying Habit:

The best thing is e-commerce retailers can easily keep a constant eye on consumers’
buying habits and interests. By satisfying their needs constantly, you can improve your
ongoing relationship with them and build long-lasting relationships.

4.Competence:
For effective business transactions, e-commerce is an efficient and competence method.
Setting-up cost is extremely low as compare to expanding your business with more brick
and mortar locations. Very few licenses and permits are required to start-up an online
business than physical store. You can save your lots of money by using fewer employees
to perform operations like billing customers, managing inventory and more.

5.Allow Happy Customers to Sell Your Products:

With lots of customers’ reviews and product ratings, you can easily increase your sells as
new customers find that your products are good and effective. Make sure that you
mention your clients’ testimonials, reviews and product ratings as such things can help
your new customers to purchase your products.

6.Ability of Multi-site:
With ecommerce platform, it becomes easy for businesses to launch channel specific and
particular brand ecommerce website.

7.Eliminate Travel Time and Cost:

It is not unusual for customers to travel long distances to reach their preferred physical
store. E-commerce allows them to visit the same store virtually, with just a few mouse
clicks.

8.Provide Comparison Shopping

E-commerce facilitates comparison shopping. There are several online services that allow
customers to browse multiple e-commerce merchants and find the best prices.

CASE STUDY
Lenskart.com: Setting Its Sight on the Indian
Eyewear Market

ABSTRACT
The case “Lenskart.com: Setting Its Sight on the Indian Eyewear Market” talks
about the various business aspects that led to the rise of Lenskart as a disruptive eyewear
solutions company in India.

The case starts out by mentioning Lenskart’s early days as a start-up vertical
ecommerce company and the business practices it adopted to make buying eyewear
online popular in India’s highly fragmented eyewear market. It then describes the
different marketing and promotional strategies implemented by Lenskart to entice
customers.

The case provides the factors that pushed Lenskart to becoming an omni-channel retailer
with both an online and offline presence. Lenskart’s tie-ups and investments in start-ups
working on either products or technologies in the eyewear space are also described. The
case ends with a look into the challenges being faced by the company. How can Lenskart
sustain its position in the Indian eyewear market ?

ISSUES
These are the following issues which create hindrances in
online retail business:
1.Analyze the business aspects of an ecommerce company that provide it
with unique competitive advantages

2.Examine the nuances of the omni-channel retail strategy of an ecommerce

company.

3.Study the marketing strategy of an e-commerce company.

4.Scrutinize the challenges of an e-commerce company in a competitive

business market.

MARKETING STRATEGY OF LENSKART: -

1.Free eye check-up and trials of frames at home:
Lenskart started with a unique service to make consumers aware of their need for
spectacles. “We send our employees through two-wheelers to connect with a lot of
consumers who needed help.

2.Partnering with doctors: The company is working closely with doctors to

include eye specialists in its mission.

3.Devices to check eyesight of kids aged three-six months :

Lenskart has made accessible devices which can check the eyesight of even a three-
month old baby.

4.Acquiring the best talent: The company has acquired themost talented staff
for this work.

5.Trying frames online: The portal introduced this technology to allow

customers to check frames online, making it easier to turn curious online shoppers into
buyers.

CONCLUSION

This REPORT concludes that e-commerce is very good for us who provides us wide variety of
products and services with lots of information and attractive pictures at an affordable price at our
doorstep. It provides convenience to customers and allows the enterprise to expand their business
over internet. Ecommerce have good impact on markets like reduce the cost of advertisements as
many customers can attract through internet, new brand can be developed, can maintain a good
relationship with customers and can make customized products according to customer’s needs.
Retailers cannot maintain a large stock like online shops have stores because it will cost a huge
loss to them. They have to spend more money in offline advertisements to attract customers. A
long with the impacts e-commerce also offers some limitation in terms of markets and retailers
that is website cost, to create and maintain a website a lot of money is required, infrastructure
cost, to fulfill the orders online retailers have to maintain a large stock in a big warehouse which
costs a lot, security and fraud, due to popularity of online shops criminal elements are also
attracted to them who can hack the personal information and can misuse them; customer trust, it
is difficult for customers to trust a new brand without looking, touching and face-to face
interaction.