1 author: Sachin Shahaji Suryawanshi

Bharati Vidyapeeth Deemed University

11 PUBLICATIONS 1 CITATION
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2022

According to Brain and Company, "A 5% improvement in customer

retention rates will result in a 25% to 100% increase in profits
across a wide range of industries," so the last thing businesses can
afford is not to lose any of their customers

Abstract
Introduction: After globalization, the retail structure in India has changed enormously.
Therefore, retail has been divided into non-organized and organized retail. In organized
retail, a new term of electronic or online retail is emerging due to the increasing penetration
of the internet in India (number of internet users over 2.5 billion). It is estimated that the e-
commerce market will represent 2.5% of India's GDP by 2030, increasing 15 times to $300
billion. This has attracted the attention of investors and entrepreneurs and has led to
intense competition in e-retail. Hence, the online retail industry in India is more focused on
retaining and attracting customers. According to Brain and Company, even a 5% increase in
customer retention improves customer retention by 25% to 100%. of profits in many
industries. Therefore, losing one of their customers is the last thing companies can afford. It
is therefore important to build the bond between customers and organizations for long-
term coexistence. Customer relationship management plays a major role in retaining and
winning customers.

Scholarcy Synopsis
The importance of customer relationship management in the Indian
retail industry.

After globalization, the retail structure in India has changed enormously.

With the changing environment customers are becoming more demanding, well-informed
and need more attention.
India's online retail market has grown rapidly in 5 years, from revenue of around Rs.
15 billion in 200708 to Rs.
139 billion in 2012-13.
This 9-fold development is result of rising internet penetration and changing lifestyles.
India's demographics as the world's largest youth population is expected to result in 300
million new online shoppers over the 15 years, making online retail the largest online
segment.

Findings
According to Brain and Company, even a 5% increase in customer retention improves
customer retention by 25% to 100%. of profits in many industries

According to Brain and Company, "A 5% improvement in customer retention rates will
result in a 25% to 100% increase in profits across a wide range of industries," so the last
thing businesses can afford is not to lose any of their customers

Demographic Factors : Major India have most Youth Population(Census 2011, about 500
million Indian are under age of 25), Working Population is 15-54years age(Census 2011,
more than 50% of Indian total population falls under this group), Rising disposable income
Household disposable income is expected to increase by 5.1% annually between 2005 and
2025 (see Chart 1.5), Rapid urbanization and Need for convenience in terms of time and
energy are major reason for growth of Online retailing in India

It is expected to grow by more than 50% from 2012 to 2017 and have potential to attract
more than one lakhs franchise in next five years (KPMG in Indian Analysis)

Scholarcy Highlights
 After globalization, the retail structure in India has changed enormously
 With the changing environment customers are becoming more demanding, well-
informed and need more attention. This has forced firms or online retailers to move
from a product-focused business strategy to a customer-centric business strategy
 According to Brain and Company, "A 5% improvement in customer retention rates will
result in a 25% to 100% increase in profits across a wide range of industries," so the last
thing businesses can afford is not to lose any of their customers
 In 2007, several online retail websites were launched, allowing the segment to grow
with the entry of new companies looking to differentiate themselves by improving the
customer experience and building a strong market presence
 India's online retail market has grown rapidly in 5 years, from revenue of around Rs. 15
billion in 200708 to Rs. 139 billion in 2012-13, resulting in a compound annual growth
rate led by 56 percent (CAGR). This 9-fold development is result of rising internet
penetration and changing lifestyles as per Goldman Sachs report. He added that India's
demographics as the world's largest youth population is expected to result in 300
 million new online shoppers over the 15 years, making online retail the largest online
segment
 Demographic Factors : Major India have most Youth Population(Census 2011, about
500 million Indian are under age of 25), Working Population is 15-54years age(Census
2011, more than 50% of Indian total population falls under this group), Rising
disposable income Household disposable income is expected to increase by 5.1%
annually between 2005 and 2025, Rapid urbanization and Need for convenience in
terms of time and energy are major reason for growth of Online retailing in India

Scholarcy Summary

A REVIEW PAPER ON FUTURE OF ONLINE RETAILING AND E-CRM IN INDIAN

CONTEXT
Dr Rahul Navanath Manjare BVDU, Abhijit Kadam Institute of Management & Social
Sciences, Solapur.

Dr Pravin Mane BVDU, Institute of Management & Entrepreneurship Development, Pune.

Dr Sucheta Kanchi BVDU, Institute of Management & Entrepreneurship Development, Pune.

Dr Sachin Suryawansi BVDU, Abhijit Kadam Institute of Management & Social Sciences,
Solapur.

Dr Nilesh Mate BVDU, Institute of Management & Entrepreneurship Development, Pune

Introduction
There is no area of business that has not been touched by globalization. The structure of
retail has undergone tremendous changes and has subsequently been categorized into
organized and unorganized retail.

In 2007, several online retail websites were launched, allowing the segment to grow with
the entry of new companies looking to differentiate themselves by improving the customer
experience and building a strong market presence.

India's online retail market has grown rapidly in 5 years, from revenue of around Rs. 15
billion in 200708 to Rs. 139 billion in 2012-13, resulting in a compound annual growth rate
led by 56 percent (CAGR)

This 9-fold development is result of rising internet penetration and changing lifestyles as
per Goldman Sachs report.

He added that India's demographics as the world's largest youth population is expected to
result in 300 million new online shoppers over the 15 years, making online retail the largest
online segment.
Chart 1.5 : Annual disposable income per household Source: Ernst & Young LLP Report on
Re-birth of E-commerce in India,2012

Technological Factors
Internet Penetration and low cost of smarts phone are major reasons.

In Asia India rank second after China in Internet uses.

Reject PC prices and rising disposable incomes make PC purchases affordable for most
people.

Broadband connection and Launch of 3G with declining internet tariffs have acted like
catalysts for its growth.

2014 Availability of high-quality, high-speed broadband to all village panchayats via fiber
optic.

2020 Target 600 million broadband connections Target for a minimum download speed of
2 Mbps.

The growing popularity of tablets can be seen in the fact that more than 8,000 of them are
sold every day.

The tablet market is expected to record sales of 1 million units and a whopping 23 units by
2013

Findings
According to Brain and Company, even a 5% increase in customer retention improves
customer retention by 25% to 100%. of profits in many industries.

According to Brain and Company, even a 5% increase in customer retention improves

customer retention by 25% to 100%.

According to Brain and Company, "A 5% improvement in customer retention rates will
result in a 25% to 100% increase in profits across a wide range of industries," so the last
thing businesses can afford is not to lose any of their customers.

Demographic Factors : Major India have most Youth Population(Census 2011, about 500
million Indian are under age of 25), Working Population is 15-54years age(Census 2011,
more than 50% of Indian total population falls under this group), Rising disposable income
Household disposable income is expected to increase by 5.1% annually between 2005 and
2025, Rapid urbanization and Need for convenience in terms of time and energy are major
reason for growth of Online retailing in India.

It is expected to grow by more than 50% from 2012 to 2017 and have potential to attract
more than one lakhs franchise in five years (KPMG in Indian Analysis)
Socio-Cultural Factors
With changing environment customers beliefs, lifestyle, personality and attitude have gone
through tremendous changes.

More Indians increasing time spent online, acceptance of credit and debit card transaction,
becoming more brand and stylish consciousness has leveraged the growth of online
retailing in India.

In 2000, there were around 5.5 million Internet users.

At the end of 2011, there were 121 million internet users.

300 million more people will utilise the internet by 2015 Broadband subscribers expecte d
to reach 100 million in 2014 and 150 million in 2020.

Number of credit and debit cards in India 4.2 million and 0.3 million in 1999, respectively.

The average time an Indian consumer spends online per month in 2006 was 12.9 hours.

Number of users making 3 million online transactions in 2007.

The number of credit and debit cards in India grew to 18 million and 228 million in July
2011.

Forecast to boom to 21 hours in Predicted boost upto 38 million by 2015