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"E-TAILING (Electronic Retailing) IN INDIA" Masters of Business

Administration Session (2020-2022) Department of Management studies

Article · December 2021

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 A
PROJECT REPORT
On
“E-TAILING (Electronic Retailing) IN INDIA”
Submitted in partial fulfillment of the degree of

Masters of Business Administration

Session (2020-2022)

SUBMITTED TO: SUBMITTED BY:

Dr. Saroj Mishra Vishal Kumar Gupta
Assistant Professor MBA 1st year
Department of management studies Roll No. – 201161030

Department of Management studies

Rajiv Gandhi Institute of Petroleum Technology
Jais, Amethi, Uttar Pradesh, 229304

1
 ACKNOWLEDGEMENT

I am very much thankful to Dr. Saroj Mishra (PROJECT GUIDE) for giving
me opportunity and his guidance which helps me throughout preparing this
report. He has also provided me a valuable suggestions and excellence
guidance about this project which proved very helpful to me to utilize my
theoretical knowledge in practical field.

I am thankful to Department of Management Studies, RGIPT for putting me

to this valuable exposure into the field of Research Methodology.

I would also like to thanks my family for motivating me and supporting me at

every part of my life.

At last I am also thankful to my friends, who have given me their constructive

advice, educative suggestion, encouragement, co-operation and motivation
to prepare this report.

(VISHAL KUMAR GUPTA)

2
 PREFACE

The title of my project is “E-RETAILING”

This project report is on how computers have evolved from the earlier
twentieth century till today. It contains E-Retailing and E-Commerce. This
report also contain why e-tailing become an essential need in today’s world
and how they are influencing our life. It also tells about the business uses of
e-tailing. And what is the scope and uses of e-tailing.

(VISHAL KUMAR GUPTA)

3
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.

NO..
1 INTRODUCTION TO E-RETAILING 5
2 E-TAILING IN INDIA 6
3 E-TAILERS IN INDIA 8
4 Indian E-tailing Market Size 10
5 India's E-tailing Growth and Success Stories 12
6 Key factors contributing to growth story of E- 13
Commerce in India
7 Market Segment by Sector 14
8 Retail (offline) V/S E-tail(online) 15
9 The Process of E-Retail 16
10 AIDA in E-Retailing 17
11 Marketing mix in E-Retailing 17
12 Benefits E-Retailing 18
13 Amazon india. 19
14 Flipkart.com 20
15 Impact of COVID-19 on online shopping in 21
India
16 Conclusion 23
17 References 24

4
 INTRODUCTION TO E-RETAILING

❖ The idea of selling retail products using electronic media, especially

the internet, is known as e-retailing (also spelled e-Retailing, e-
Tailing, etc.). Electronic retailing, a concept that has been used in
internet discussions since 1995, appears to be an almost unavoidable
addition to e-mail, e-business, and e-commerce, among other words.
The terms "e-retail" and "e-commerce" are interchangeable.

❖ Retail involves the selling of products and services from individuals or

companies to end consumers.

❖ In India, the retail industry has risen to prominence. It has contributed

to a steady increase in the country's economy. In India, the e-tailing
or e-retailing industry has blossomed, and a large number of
business professionals have begun to venture into the e-tailing
domain with great enthusiasm.

5
 E-Tailing in India

E- Tailing has been around in India for over a decade. In the late 1990s and
early 2000s, a number of new players emerged. However, the majority of
them did not make it through the dotcom boom and bust of 2000. The second
wave of e-tailing, which began in 2007, saw the arrival of many game-
changing players who fueled the growth of e-tailing through innovation as
well as the evolution of business models The market is at an inflection point
today, with players vying for leadership positions, specialist players hitting
their stride, ecosystem elements beginning to fall into place, and investors
reaffirming their confidence in the business.

“According to a survey, the country's fast-growing e-commerce market will

reach USD 84 billion in 2021, up from USD 24 billion in 2017. This is due to
healthy growth in the organized retail sector.

According to a study by Deloitte India and the Retail Association of India,

India's consumer businesses benefit from a fast-growing economy and
strong demographics.”

These factors will accelerate India's retail market growth, making it the third
largest in Asia and the fourth largest in the world, according to the study.
According to the study, India's retail market is projected to expand to USD
1.2 trillion by 2021, up from USD 795 billion in 2017.

6
"Furthermore, as the country's internet penetration rises and more foreign
retailers set up shop in India, the organized retail market's share is projected
to rise from 12% in 2017 to 22-25% by 2021."

Rising online shopping, mobile use, and internet penetration across semi-
urban and rural segments, according to the study titled 'Unravelling the
Indian Consumer,' would help boost sales.

"India continues to hold a good position in terms of market potential, and it is

on track to become the world's third largest consumer market by 2021, with
revenues expected to reach close to USD 1.2 trillion," said Anil Talreja,
Partner, Deloitte India.

Given its positive retail and consumer outlook, India is expected to see
redefining developments in the consumer sector that will form the retail
industry's future, according to the survey.

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 E-Retailers in India

Companies HeadQuarters Founder

Flipkart India Sachin & Binni Bansal

Amazon U.S.A Jeff bezos

Paytm India Vijay shekhar Sharma

Shop clues India Radhika & Sandip Agrawal

Snapdeal India Kunal Bahl & Rohit Bansal

EBay U.S.A Pierre Omidyar

Myntra India Mukesh Bansal

Tata CliQ India Tata Group

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As of May 2020, India's Internet user base was projected to be about 504
million, or approximately 40% of the population. By the end of 2019, this
figure is estimated to reach 627 million. Despite having the world's second-
largest user base, just behind China (650 million, 48 percent of population),
e-commerce penetration is low in comparison to markets such as the United
States (266 million, 84 percent), or France (54 million, 81 percent), but it is
increasing. Every month, about 6 million new people join. The general
consensus in the industry is that growth is nearing an inflection point.

In India, Cash on delivery is the most common payment form, accounting for
75% of all e-commerce transactions. Demand for foreign consumer goods
(including long-tail items) is outpacing supply from licenced distributors and
e-commerce platforms in the region. Long tail business strategy helps
businesses to make huge profits by selling small quantities of hard-to-find
goods to a large number of customers. Rather than selling large quantities
of a small number of common products.

Indian E-tailing Market Size

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 Indian Retail E-tailing Market Size from 2017 to 2023 (in billion U.S. dollars)

According to Google India Research, by 2021 India is expected to generate

$100 billion online retail revenue out of which $35 billion will be through
fashion e-commerce. Online apparel sales are set to grow four times in
coming years

10
Number of digital buyers in India from 2014 to 2020
(in millions)

Number of digital buyers in India from 2014 to 2020

11
 India's E-tailing Growth and Success Stories

Flipkart-

Flipkart, which was established in 2007, is one of India's most popular E-

Commerce startups. It began with online bookselling and has since
expanded to include clothing, electronic devices, household goods, and
other retail options. It was the first to release a mobile app.

Snapdeal –

Launched in 2010, the business has seen phenomenal growth in just two
years, with annual growth of nearly 600 percent. Money Saver began as an
offline coupon company, but later expanded to sell a variety of products,
ranging from clothing and books to gadgets and appliances.

Amazon India-

In June 2013, Amazon India began operations in India. It included a diverse

selection of books, movies, and television shows. It now has a sizable market
share in the online market.

Paytm -

One97's flagship brand, Paytm, is India's largest digital products and mobile
commerce platform, inspired and guided by a dedication to excellent
customer service. Paytm's RBI-approved semi-closed wallet is also a
common payment solution for E-Commerce merchants.

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Key factors contributing to growth story
of E-Commerce in India

❖ August 15, 1995 VSNL launched the internet in India

❖ in 1996 Rediff.com launch, India's first cyber café(Mumbai)
❖ In 2002 Indian railway set up irctc.com
❖ In 2004 BSNL introduce broadband
❖ In 2004 Google starts India office
❖ Prices for broadband subscriptions are decreasing.
❖ The introduction of 3G/4G services has resulted in an increase in the
number of internet users in India.
❖ The changing lifestyle of urban India and its high disposable income
❖ Online shopping's convenience
❖ The acceptance of online payments is increasing.
❖ Indians are spending more time online.
❖ Government initiatives: The Indian government has announced a
number of initiatives to support E-Commerce since 2014, including
Digital India, Make in India, Start-up India, Skill India, and the
Innovation Fund. The following are some of the government's major
initiatives to promote India's E-Commerce market.
❖ In 2016, JIO became publically in India
❖ The Indian government increased the foreign direct investment (FDI)
cap in the E-Commerce marketplace model by up to 100%. (in B2B
models).

13
 Market Segment by Sector
Established sector:

The following industries have expanded to a sizeable market with

reasonable internet penetration.

❖ Online ticketing
❖ Food delivery
❖ Cabs
❖ OTAs

Large Potential sectors:

Those with a low internet penetration rate but a sizable market share

❖ Groceries
❖ Fashion
❖ E-tailing (Online Retailing)

Emerging sectors:
Low online penetration, low market size but high-growth sectors.

❖ Hyper local
❖ Medicine delivery

As of now the Indian e commerce industry will be observing how the Walmart
buyout of Flipkart drives growth of e-tail in India. It will be interesting to watch
how the American giant’s experience in logistics, supply chain management
and traditional discount retailing impacts India’s market.

14
 Retail (offline) V/S E-tail(online)

Major Retail & E-tailing Companies

Retailers E-tailers
Reliance Retail Flipkart
Walmart Amazon
Lifestyle Paytm
Shoppers stop Snapdeal
croma Myntra

15
An E-Commerce process flow can often be an area of online retail
that is overlooked. In order to maximize sales opportunities and
stay cost competitive, mapping out your E-Commerce processes
can help your business highlight key areas that may require
automation or modification, and ultimately, improve performance.

❖ Receiving orders from your E-Commerce system

❖ Processing order information
❖ Shipping

16
 AIDA in E-Retailing

Attention: Grab the visitor’s attention

Interest: Excite their curiosity about your product

Desire: Build desire for the product

Action: Get them to follow a call to action

Marketing mix in E-Retailing

Place: Convenience to the customer

Products: Customer Value and Benefits

Price: Cost to consumer, discount, offers

Promotion: Communication, advertising

People: Target Audience

Process: The systems and processes that deliver the product to the
. customer

Physical Evidence: Guarantees, Refund Policies, Membership

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 Benefits E-Retailing

Business to Customer (B2C)

❖ Convenience
❖ Competitive Pricing
❖ Customization
❖ Selection
❖ 24*7 availability
❖ Shopping anywhere
❖ Better information

Business to Business (B2B)

❖ Low capital cost

❖ Targeted marketing
❖ Mass customization
❖ Global reach
❖ Better customer service
❖ More value added services
❖ Improved cash flow
❖ Reduce inventory levels
❖ Increased operational efficiency
❖ Reduce transactional cost

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Amazon india.

Pic.1 Amazon india

Pic. 2 Products departments Pic. 3 Ordering process in amazon

19
Flipkart.com

Pic.1 Flipkart.com

Pic.2 ordering process Flipkart.com Pic.3 Flipkart.com Products category

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Impact of COVID-19 on online shopping in India

The unorganized retail sector, which comprises around 13.8 million

traditional family-run neighborhood shops, and the organized retail sector,
which accounts for less than 10% of the Indian retail industry, are vastly
different. Both organized brick-and-mortar stores and online shopping sites
fall under the organized market. Despite the boom in B2C e-commerce
sector in India, majority of Indians continue to have more faith in the
neighbourhood brick & mortar stores for shopping as they prefer touching
and feeling the products and negotiating discounts over-the-counter, before
buying. In India, a great majority of B2C ecommerce retailers, draw
customers to shop online by offering bargains such as free delivery,
discounts, buy-one-get-one-free and exchange offers. However, many
Indian shoppers known to be cost-conscious and conservative as a part of
their value system, are generally not attracted into making quick decisions
based on promotions and advertisements. Moreover, online shoppers,
many-a-times, come across problems concerning product delivery timelines
and customer support services. Customers’ perception of risk toward online
web sites is aggravated due to the inferior IT set-up used by several e-tailers,
resulting in hacking of personal information.

Enter the novel coronavirus which causes a highly infectious disease

Coronavirus disease (COVID-19) that has infected more than 4 lakh people
worldwide. Since it spreads primarily through contact with an infected person
(when they cough or sneeze) or when a person touches a surface that has
the virus on it, the best way to guard against it is to stay at home. This has
increased online shopping usage, globally. In India, it has led to a rise in the
number of FTUs or first-time-ecommerce-users in India, who had been so
far inhibited to shop online. The SARS outbreak that infected over 2700
people in 2002, too is known to have dramatically changed people’s
shopping habits as they were afraid of shopping outdoors.

21
On 25th March, 2020, BigBasket - a key online grocery player in India had
the following message “We'll be back soon! We are currently experiencing
unprecedented demand. In light of this, we are restricting access to our
website to existing customers only. Please try again in a few hours.” So
overwhelming was the response that it faced a breakdown due to a steep
increase in demand amid COVID-19.
Grofers – a rival, had a similar kind of message which said “Due to the
sudden rush, we have stopped servicing many locations, but we are working
to increase capacity and will be resuming operations shortly.” Amazon – one
of the leading ecommerce players in the country, and the world, has
announced on its site that the customers are relying on them like never
before in their social distancing and self-quarantine efforts. Hence Amazon
is temporarily prioritizing its available fulfillment and logistics capacity to
serve essentials such as household staples, packaged food, health care,
hygiene, personal safety and other high priority products. It is temporarily
going to stop taking orders for lower-priority products. Globally too Amazon
has seen a surge in orders and is raising overtime pay for associates working
in its warehouses, during the coronavirus outbreak.

This spike in B2C ecommerce in India is of course due to existing online

shoppers stocking up on essentials given the coronavirus outbreak and the
lockdown imposed by the Government (to check its spread). However it also
consists of perhaps two more segments –apart from the one that buys online,
regularly. A segment that did not shop online, given the inhibiting factors
detailed in the beginning of this article and another segment that up till now,
was either ignorant about online shopping or did not have a device or data
plan. It would be interesting to check – how many shoppers from these two
segments switch to online shopping, even after the coronavirus crises is
over.

E-commerce has been lifeblood for cities

under shutdown to fight Covid-19:
Flipkart

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 Conclusion

In general, today’s businesses must always strive to create the next best
thing that consumers will want because consumers continue to desire their
products, services etc. to continuously be better, faster, and cheaper. In this
world of new technology, businesses need to accommodate to the new types
of consumer needs and trends because it will prove to be vital to their
business’ success and survival. E-commerce is continuously progressing
and is becoming more and more important to businesses as technology
continues to advance and is something that should be taken advantage of
and implemented.

From the inception of the Internet and e-tailing, the possibilities have become
endless for both businesses and consumers. Creating more opportunities
for profit and advancements for businesses, while creating more options for
consumers. However, just like anything else, e-commerce has its
disadvantages including consumer uncertainties, but nothing that cannot be
resolved or avoided by good decision-making and business practices.

E-commerce has been lifeblood for cities under shutdown to fight Covid-19

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 References

❖ www.amazon.com
❖ www.flipkart.com/about-us
❖ https://rai.net.in/
❖ www.investopedia.com
❖ https://www.bcg.com
❖ E-commerce in India: Industry Overview, Market Size & Growth| IBEF
❖ home.kpmg
❖ LitmusWorld | Customer Experience & Employee Experience | LitmusWorld

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