Market Expansion Strategies for Online Retail in India

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MARKET EXPANSION STRATEGIES FOR ONLINE RETAILERS IN INDIA

INDEX

1. Introduction
2. Theoretical Review
3. Review and Research
4. New Developments
5. Conclusion and Recommendations
6. References

INTRODUCTION
ON-LINE RETAILING
Electronic retailing to consumers (or B2C) was first developed on a large scale in the 198Os. The area is advancing at a rapid rate with retail organizations realizing the growing importance of the sale of products through these new distribution channels. Electronic diver systems do not necessarily require direct human interaction and, as such, they offer specific advantages. In principle, quality can be assured, the costs are lower, there is consumer convenience of access, and distribution can be wider than normal retail channels. The key underlying reasons behind electronic retailing are: consumer time poverty, consumers wanting to have more control over time and place of transaction, the technology convergence allowing change to take place and growing experience of the benefits of the medium. The different categories of this major growth area fall into two distinct system ‘passive or interactive:

1 Passive Systems. These are non-interactive one-way media, where the retailer can decide upon the content and timing of messages. They include all forms of one-way communication media such as shopping pages, or clubs on television, or one-way cable systems. The success of the Quality Value Convenience Network (QVC), using such an approach, is discussed below. This form of selling includes video catalogues or electronic media which demonstrate the product in use or provide further information.

2 Interactive Systems. This type of electronic retailing allows for two-way interaction and includes the Internet or promotional touch-screen booths and kiosks for items such as airline or holiday bookings. Some systems can demonstrate the product in use and, in the case of touch-screens, give printouts or allow further enquiries from the database. A feature of both systems is that a credit card can, be used in order to secure the sale.

The retailers that undertake electronic commerce can be classified in three main ways.

1 Virtual retailers: these have no shops or stores or physical presence in the high street, malls or out-of-town locations. They trade exclusively on the Internet or on television and have to find new ways of attracting custom and serving consumer needs. Examples of these are Amazon.com and lastminute.com.

2 Two-channel retailers: these are established ‘retailers with stores that have developed an electronic retailing capability as a major or minor aspect of their business. Tesco can be regarded as a two-channel retailer.

3 Multi-channel retailers: these are established retailers which service customer needs in a number of ways, including shops, telephone ordering, the Internet, catalogues, and TV. Examples would include Little woods and Boots UK and Ireland. As well as 1400 UK’ stores, Boots has mother-and-baby catalogues, the Wellbeing digital TV channel — although its introduction has been postponed — and transactional and information websites, handbag.com as well as wellbeing.com.

Although many observers originally felt that electronic retailing would be dominated by new virtual retailers, it now seems likely that the c-commerce market will be made up of all three categories of retailer. THEORETICAL REVIEW

E-retailing, most commonly known as e-tailing is nothing but shopping through the Internet and other media forms. There are many things that are common between direct retail stores and online retail stores. Both have the process of billing of the customers and have to maintain a relationship with the suppliers.

Bottlenecks Faced By Online Retailing in India
Problems with the Payment System
People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them....
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