Introduction

The Indian retail industry has emerged as one of the most dynamic and fast-
paced industries due to the entry of several new players. It accounts for over 10
per cent of the countrys Gross Domestic Product (GDP) and around 8 per cent
of the employment. India is the worlds fifth-largest global destination in the retail
space.
Market Size
Indias retail market is expected to nearly double to US$ 1 trillion by 2020 from
US$ 600 billion in 2015#, driven by income growth, urbanisation and attitudinal
shifts. While the overall retail market is expected to grow at 12 per cent per
annum, modern trade would expand twice as fast at 20 per cent per annum and
traditional trade at 10 per cent#.
Indias Business to Business (B2B) e-commerce market is expected to reach
US$ 700 billion by 2020.## Online retail is expected to be at par with the physical
stores in the next five years.
India is expected to become the worlds fastest growing e-commerce market,
driven by robust investment in the sector and rapid increase in the number of
internet users. Various agencies have high expectations about growth of Indian
e-commerce markets. Indian e-commerce sales are expected to reach US$ 120
billion! by 2020 from US$ 30 billion in FY2016.Further, India's e-commerce
market is expected to reach US$ 220 billion in terms of gross merchandise value
(GMV) and 530 million shoppers by 2025, led by faster speeds on reliable
telecom networks, faster adoption of online services and better variety as well as
convenience@.
Indias direct selling industry is expected to reach a size of Rs 23,654 crore (US$
3.51 billion) by FY2019-20, as per a joint report by India Direct Selling
Association (IDSA) and PHD.
Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity
inflows totaling US$ 537.61 million during April 2000March 2016, according to
the Department of Industrial Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including consumer
electronics and home appliances, many companies have invested in the Indian
retail space in the past few months.
International Finance Corporation (IFC), the investment arm of The World Bank, plans to invest up
to Rs 134 crore (US$ 19.86 million) in Kishore Biyani's Future Consumer Enterprises Ltd, which is
expected to aid the company in driving its growth plans.
Amazon India has opened six new fulfillment centres across Chennai, Coimbatore, Delhi, Jaipur
and Mumbai, which will open up 5.5 million square feet of storage space for sellers on the
marketplace who use the Fulfilled by Amazon service.
IKEA, the worlds largest furniture retailer, plans to invest Rs 10,500 crore (US$ 1.56 billion) to set
up 25 stores across India and hire over 15,000 permanent employees and 37,500 temporary
employees to assist in running its stores.
Amazon Inc. has announced that the company would invest an additional US$ 3 billion in India
operations, thereby taking its committed investment in the country to over US$ 5 billion.
 Aditya Birla Fashion and Retail Limited (ABFRL) has announced that it will acquire exclusive online
and offline rights of Forever 21, an American fast fashion brand, in the Indian market.
Massimo Dutti, a premium fashion brand from Spain offering sophisticated womenswear,
menswear, footwear and accessories, has entered India by opening its first store at the Select
Citywalk mall in New Delhi.
Lenskart, India's largest online eyewear retailer, has raised Rs 400 crore (US$ 59.3 million) in
series D round of funding led by World Bank's investment arm International Finance Corporation
(IFC), which will be used to enhance its technology, supply chain, lens manufacturing, and expand
the reach of its high-quality eyewear products across Tier-3 and Tier-4 cities of India.
Neil Barrett, one of the leading Italian fashion brands, has forayed into the Indian market by
establishing its retail presence through an exclusive partnership with Fervour, a multi-brand
boutique that stocks international designer brands.
New York-based designer brand Kate Spade will be launched in India later this year and will set up
a network of stand-alone stores across major cities, thus becoming one more global brand entering
the Indian retail space after the Government of India relaxed single brand retail norms recently.
KartRocket, a Delhi based e-commerce enabler has completed its US$ 8 million funding round by
raising US$ 2 million from a Japanese investor, which will be used to enhance Kraftly, a mobile-first
online-to-offline marketplace targeting small sellers, individuals and home-based entrepreneurs in
India in product categories such as apparel and accessories.
PurpleTalkInc, a US based mobile solutions company, has invested US$ 1 million in Nukkad Shops,
a Hyderabad based uber-local commerce platform that helps neighbourhood retail stores take their
businesses online through a mobile app.
Mumbai-based baby care and kids products e-tailer, Hopscotch.in, has raised US$ 13 million in a
Series C round of funding from Facebook co-founder Mr Eduardo Saverin, which will help the firm
in growth and expansion of its technology platform.
Gurgaon-based e-commerce firm Shopclues has raised US$ 150 million from Singapore
government's GIC and its existing investors Tiger Global and Nexus Venture Partners, at a
valuation of US$ 1.1 billion, thereby becoming the latest among several e-commerce companies
from India reaching a billion dollar valuation.
Amazon India expanded its logistics footprint three times to more than 2,100 cities and towns in
2015, as Amazon.com invested more than US$ 700 million in its India operations since July 2014.
Adidas AG, reknowned for its Adidas and Reebok sports brands, has become the first foreign
sports company to get government approval to open 100 per cent foreign-owned stores in India.
Walmart India plans to add 50 more cash-and-carry stores in India over the next four to five years.
Aeropostale, an American teen fashion retailer, has chosen to enter India over China, and expects
India to be among its top three markets over the next four years with revenue target of Rs 500
crore (US$ 74.12 million).
Opinio, a hyperlocal delivery start-up, has raised US$ 7 million in a Series-A funding from Gurgaon-
based e-commerce fulfilment service firm Delhivery along with investment from Sands Capital and
Accel Partners.
Textile major Arvind Limited has announced a partnership with Sephora, owned by LVMH Moet
Hennessy Louis Vuitton, a French luxury conglomerate, in order to enter into the beauty and
cosmetics segment.
 Mobile wallet company MobiKwik has partnered with Jabong.com to provide mobile payment
services to Jabongs customers.
DataWind partnered with HomeShop18 to expand its retail footprint in the country. Under the
partnership, HomeShop18 and DataWind would jointly launch special sales programmes across
broadcast, mobile and internet media to provide greater access to the latters tablet range.
FashionAndYou has opened three distribution hubs in Surat, Mumbai and Bengaluru to accelerate
deliveries.
Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 370.6 million) in a fruit and
vegetable processing unit, an integrated meat processing unit, and a modern shopping mall in
Hyderabad, Telangana.
Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and the fourth-largest
supermarket retailer in the country, acquired Total hypermarkets owned by Jubilant Retail.
With an aim to strengthen its advertising segment, Flipkart acquired mobile ad network AdiQuity,
which has a history of mobile innovations and valuable experience in the ad space.
US-based Pizza chain Sbarro plans an almost threefold increase in its store count from the current
17 to 50 over the next two years through multiple business models.

Government Initiatives
The Government of India has taken various initiatives to improve the retail
industry in India.
Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of
goods and services through the automatic route, thereby providing clarity on the existing
businesses of e-commerce companies operating in India.
The Government of Andhra Pradesh signed pactsworth Rs 1,500 crore (US$ 222.36 million) in a
wide range of sectors including retail and steel and gas with Walmart India, Future Group, Arvind
Lifestyle Brands Ltd and Spencers Retail, during the Partnership Summit in Visakhapatnam, while
also unveiling a retail policy aimed to attract retail businesses to invest in the state.
The Ministry of Urban Development has come out with a Smart National Common Mobility Card
(NCMC) model to enable seamless travel by metros and other transport systems across the
country, as well as retail purchases.
IKEA, the worlds largest furniture retailer, bought its first piece of land in India in Hyderabad, the
joint capital of Telangana and Andhra Pradesh, for building a retail store. IKEAs retail outlets have
a standard design and each location entails an investment of around Rs 500600 crore (US$ 74
89 million).
The Government of India has accepted the changes proposed by RajyaSabha select committee to
the bill introducing Goods and Services Tax (GST). Implementation of GST is expected to enable
easier movement of goods across the country, thereby improving retail operations for pan-India
retailers.
The Government has approved a proposal to scrap the distinctions among different types of
overseas investments by shifting to a single composite limit, which means portfolio investment up
to 49 per cent will not require government approval nor will it have to comply with sectoral
conditions as long as it does not result in a transfer of ownership and/or control of Indian entities to
 foreigners. As a result, foreign investments are expected to be increase, especially in the attractive
retail sector.

Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever
increasing choice of products at the lowest rates. E-commerce is probably
creating the biggest revolution in the retail industry, and this trend would continue
in the years to come. Retailers should leverage the digital retail channels (e-
commerce), which would enable them to spend less money on real estate while
reaching out to more customers in tier-2 and tier-3 cities.
Both organised and unorganised retail companies have to work together to
ensure better prospects for the overall retail industry, while generating new
benefits for their customers.
Nevertheless, the long-term outlook for the industry is positive, supported by
rising incomes, favourable demographics, entry of foreign players, and increasing
urbanisation.
Exchange Rate Used: INR 1 = US$ 0.0148 as on July 11, 2016
References: Media Reports, Press Releases, Deloitte report, Department of
Industrial Policy and Promotion website, Union Budget 201516

Sector's High Growth Potential is Attracting Investors

India has occupied a remarkable position in global retail rankings; the country has high market potential,
low economic risk, and moderate political risk
Indias net retail sales are quite significant among emerging and developed nations; the country is ranked
third (after China and Brazil)
Overall, given its high growth potential, India compares favourably with global peers among foreign
investors
With investment of around US$ 511.76 billion, the first half of 2016 witnessed the highest annual private
equity (PE) in the retail sector, since 2008.
Retail Industry in India
Latest update: February, 2017
Rising Prominence of Online Retail
Online retail business is the next generation format which has high potential
for growth in the near future. After conquering physical stores, retailers are
now foraying into the domain of e-retailing
E-commerce is expected to be the next major area supporting retail growth
in India. The industry is projected to touch US$ 100 billion by 2020 growing
from US$ 30 billion in 2016
With growth in the e-commerce industry, online retail is estimated to reach
US$ 70 billion by 2020 from US$ 3 billion in 2014
India remains an underdeveloped retail ecommerce market, with
digital commerce accounting for only a small piece of the countrys
total retail sales. However, strong growth is expected over the
coming years as increasing numbers of consumers go online for the
first time, largely through smartphones, as explored in a new
eMarketer report, India Retail Ecommerce 2016: The Relentless
Rise in Mobile Sales (eMarketer PRO customers only).

eMarketer estimates retail ecommerce sales in India will reach

$23.39 billion (INR1.500 trillion) this year, an increase of 75.8%
over 2015. The forecast period will see strong growth over the next
few years, with sales hitting $79.41 billion (INR5.092 trillion) in
2020.

Despite the strong growth rate, retail ecommerce will account for
just 2.5% of total retail sales in 2016 and 5.0% by 2020. That puts
India well behind China, where retail ecommerce will constitute
18.4% of total sales in 2016. eMarketer expects the annual growth
rate of total retail sales will easily remain in the double digits
between 2016 and 2020.

While Western markets, along with China, have seen slowdowns in

their economies, India is expected to experience healthy GDP
growth due in part to infrastructure investment and ongoing
economic reforms. In addition, India has a massive population with
a relatively young median age. As this cohort joins the labor force,
they will also add to the countrys new, expanding consumer class.
India differs from most developed markets, where consumers are
making the shift from desktop to mobile for shopping online; those
in the country instead have skipped the desktop phase altogether.
They are increasingly accessing the web for the first time via
smartphone, and therefore have shown a willingness to make
purchases on their mobile devices.

Indias status as a mobile-first market is reflected in its retail

mcommerce figures. eMarketer estimates that retail mcommerce
sales will total $15.27 billion (INR979.16 billion) this year, up
96.3% from 2015. Growth will be markedly high throughout the
forecast period, declining to a still-impressive 25.7% by 2020 when
mcommerce sales will hit $63.53 billion (INR4.073 trillion).

Mobiles share of ecommerce will continue to grow over the new

few years, accounting for 65.3% of all retail ecommerce this year
and 80.0% in 2020. The implementation of robust 4G networks by
mobile carriers (which is already underway) will drive increasing
digital purchases made via smartphone. In addition, the declining
costs of 4G devices and service plans will make it much easier for
consumers to research, browse and buy on smartphones.
The number of digital shoppersthose who browse or research
products online but who havent necessarily completed a
transactionwill also see their ranks grow over the coming years.
eMarketer estimates that digital shoppers in India will total 159.6
million in 2016, a figure equal to 53.6% of internet users. By 2020,
more than three-quarters of internet users, or 352.0 million people,
will be digital shoppers.

The number of digital buyersthose who complete a transaction

digitallywill also see a strong increase over the forecast period. In
2016, 130.4 million people in India will make at least one purchase
digitally, which is equivalent to 43.8% of internet users. Digital
buyers will number 329.1 million by 2020, when 70.7% of internet
users will have made a purchase online

PROJECT REPORT
 On Market size and growth[edit]
India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013.
In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is
travel related.[7] According to Google India, there were 35 million online shoppers in India in 2014 Q1
and is expected to cross 100 million mark by end of year 2016.[8] CAGR vis--vis a global growth rate
of 810%. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-
commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that
online travel accounts for 61% of the e-commerce market.[9]
By 2020, 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]
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016
and $850 billion by 2020, estimated CAGR of 10%..[citation needed] According to Forrester, the e-
commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over
57% between 201216.[11]
As per "India Goes Digital",[12] a report by Avendus Capital, the Indian e-commerce market is
estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable
portion (87%) of this market today. Online travel market in India had a growth rate of 22% over the
next 4 years and reach Rs 54,800 crore ($12.2 billion) in size by 2015. Indian e-tailing industry is
estimated at Rs 3,600 crore (US$800 million) in 2011 and estimated to grow to Rs 53,000 crore ($11.8
billion) in 2015.
Overall e-commerce market had reached Rs 1,07,800 crores (US$24 billion) by the year 2015 with
both online travel and e-tailing contributing equally. Another big segment in e-commerce is
mobile/DTH recharge with nearly 1 million transactions daily by operator websites. [citation needed]
A new sector in e-commerce is online medicine, selling complementary and alternative medicine or
prescription medicine online. There are no dedicated online pharmacy laws in India and it is
permissible to sell prescription medicine online with a legitimate license.[citation needed]
Online sales of luxury products like jewellery also increased over the years. Most of the retail brands
have also started entering into the market and they expect at least 20% sales through online in next 2
3 years.[13]

Closures[edit]
Though the sector has witnessed tremendous growth and is expected to grow, many e-commerce
ventures have faced tremendous pressure to ensure cash flows. But it has not worked out for all the e-
commerce websites. Many of them like Dhingana, Rock.in, Seventy MM amongst others had to close
down [14] or change their business models to survive.[15]

Infrastructure[edit]
There are many hosting companies working in India but most[citation needed] of them are not suitable for
eCommerce hosting purpose, because they are providing much less secure and threat protected shared
hosting. eCommerce demand highly secure, stable and protected hosting.[citation needed] Trends are changing
with some of eCommerce companies starting to offer SaaS for hosting web stores with minimal one
time costs.
India has got its own version of Cyber Monday known as Great Online Shopping Festival which
started in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber Monday"
is a term coined in the USA for the Monday coming after Black Friday, which is the Friday
after Thanksgiving Day.[16] Most recent GOSF Great Online Shopping Festival was held during Dec 10
to 12, 2014.
In early June 2013, Amazon.com launched their Amazon India marketplace without any marketing
campaigns. In July 2014, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India to
expand business, after its largest Indian rival Flipkart announced $1 billion in funding. In June 2016,
Amazon agreed to invest another $3 billion to further pressure rivals Flipkart & Snapdeal[17] Amazon
has also entered grocery segment with its Kirana now in bangalore and is also planning to enter in
various other cities like Delhi, Mumbai and Chennai and faces stiff competition with Indian startups. [18]
E-retailing uses internet as a medium for customers to shop for the goods or services. It
can be either pure-plays or bricks-and-clicks. Pure-play uses internet as primary means
of retailing while bricks-and-clicks uses the internet as an addition to the physical store.

Now a day retailers have started offering almost everything under the sun on internet.
From products like groceries to services like online gaming and jobs, e-retailing covers
all frontiers.

Unfortunately, India has lagged in e-retail growth story due to low density of internet
connections, lower penetration of credit cards and customer anxiety in using new
technologies.

During the dotcom boom Ecommerce was the sunrise industry, the one that would
change the face of the world. While E-bay and Amazon the twin pillars of Ecommerce in
US did bring about paradigm shift in USA, the tech pundits in India are still a bit iffy
about Ecommerce in India.

History of ecommerce is unthinkable without Amazon and Ebay which were among the
first Internet companies to allow electronic transactions. Thanks to their founders we now
have a handsome ecommerce sector and enjoy the buying and selling advantages of the
Internet. Currently there are 5 largest and most famous worldwide Internet retailers:
Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the
most popular categories of products sold in the World Wide Web are music, books,
computers, office supplies and other consumer electronics.
E-tailing began to work for some major corporations and smaller entrepreneurs as early
as 1997 when Dell Computer reported multimillion dollar orders taken at its Web site.
The success of Amazon.com hastened the arrival of Barnes and Noble's e-tail site.
Concerns about secure order-taking receded.

1997 was also the year in which Auto-by-Tel reported that they had sold their millionth
car over the Web, and Commerce Net/Nielsen Media reported that 10 million people had
made purchases on the Web.
Amazon.com, Inc. is one of the most famous ecommerce companies and is located in
Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first
American ecommerce companies to sell products over the Internet. After the dot-com
collapse Amazon lost its position as a successful business model, however, in 2003 the
company made its first annual profit which was the first step to the further development.

At the outset Amazon.com was considered as an online bookstore, but in time it extended
a variety of goods by adding electronics, software, DVDs, video games, music CDs,
MP3s, apparel, footwear, health products, etc. The original name of the company was
Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename
his business "Amazon" after the world's most voluminous river. In 1999 Jeff Bezos was
entitled as the Person of the Year by Time Magazine in recognition of the company's
success. Although the company's main headquarters is located in the USA, WA, Amazon
has set up separate websites in other economically developed countries such as the
United Kingdom, Canada, France, Germany, Japan, and China. The company supports
and operates retail web sites for many famous businesses, including Marks & Spencer,
Lacoste, the NBA, Bebe Stores, Target, etc.

Amazon is one of the first ecommerce businesses to establish an affiliate marketing

program, and nowadays the company gets about 40% of its sales from affiliates and third
party sellers who list and sell goods on the web site. In 2008 Amazon penetrated into the
cinema and is currently sponsoring the film "The Stolen Child" with 20th Century Fox.
According to the research conducted in 2008, the domain Amazon.com attracted about
615 million customers every year. The most popular feature of the web site is the review
system, i.e. the ability for visitors to submit their reviews and rate any product on a rating
scale from one to five stars. Amazon.com is also well-known for its clear and user-
friendly advanced search facility which enables visitors to search for keywords in the full
text of many books in the database.

One more company which has contributed much to the process of ecommerce
development is Dell Inc., an American company located in Texas, which stands third in
computer sales within the industry behind Hewlett-Packard and Acer.

Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of
1997 was the first company to record a million dollars in online sales. The company's
unique strategy of selling goods over the World Wide Web with no retail outlets and no
middlemen has been admired by a lot of customers and imitated by a great number of
ecommerce businesses. The key factor of Dell's success is that Dell.com enables
customers to choose and to control, i.e. visitors can browse the site and assemble PCs
piece by piece choosing each single component based on their budget and requirements.
According to statistics, approximately half of the company's profit comes from the web
site.

In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500
list and 8th on its annual Top 20 list of the most successful and admired companies in the
USA in recognition of the company's business model.
Following major events took place related to every year since the birth of e-retailing-
1997
Dell becomes first company to hit $1 million in annual online sales
Netflix begins operations, changing the way people rent movies

1998
PayPal launches its alternative payment service; eBay acquires PayPal in 2002
 Google, the future king of search, debuts
Yahoo launches selling platform Yahoo Stores
Annual online retail sales hit $8 billion

1999
Zappos launches web-only shoe store emphasizing customer service; in 2008,
annual sales top $1 billion
Internet Retailer magazine debuts in March
Online grocery service Webvan starts its engines
Global Sports, which becomes GSI Commerce in 2002, debuts fully outsourced e-
commerce platform
Levi gets hands slapped by retailers for selling direct to consumers, kills its web
site
e-Toys.com among first online retailers to jump into Internet IPO boom
Heavy-hitter Furniture Brands International says furniture doesnt fit the web;
housewares/home furnishings retailers rack up $3.9 billion in web sales in 2007
Victorias Secret debuts site with an online video viewed by 1 million on Day One
Weekly web sales top $1 billion for first time in December 1999
Annual online retail sales skyrocket 100% to $16 billion.

2000
Amazon.com and Toys R US announce 10-year agreement for cobranded
online store
Disgruntled customers file class action suit against ToysRUs.com for
failing to meet Christmas delivery
In Q4, quarterly e-commerce sales exceed 1% of total retail sales
Wal-Mart introduces buy online/pick up in store program
E-Toys crashes repeatedly during December; shoppers looking to buy file
class action lawsuit
 2000 (The Dot Com Investment Bust)

Garden.com throws in the trowel

Pets.com winds up in the litter
Hyped fashion retailer Boo.com closes its closet
The Internet falls out of favor with Wall Street, but not Main Street:
online retail sales soar 81.3 % to $29 billion
Internet grocery service Webvan runs out of gas
One-hour delivery service Kozmo.com crashes
E-Toys.com shuts its toy chest
Despite ongoing dot-com investment implosion, annual online retail
sales leap 48.3% to $43 billion

2001
Branded retailers account for 2% of all merchandise sold on eBay
Amazon.com blazes a trail, launching a mobile commerce site
Court shuts down free music-sharing site Napster; site relaunches
in 2003
as paid service

2002
Number of web users who have bought online crosses 50% mark; 52.4%
aged 14+ bought on the web in 2002.
Annual online retail sales up 25.6% to $54 billion.
2003
Apple launches iTunes store for digital music downloads.
Social network MySpace launches, followed by rival Facebook in 2004.
 Congress passes the CAN-SPAM Act, setting rules for marketing e-mail
Annual online retail sales jump 29.6% to $70 billion.

2004
Credit card companies create PCI data security standards
Internet Retailer debuts Top 300 Guide, which will become the Top 500
Guide
Annual online retail sales up 25% to $87.5 billion

2005
One million Valentines Day shoppers crash Hallmark.com multiple times
Streamlined Sales Tax Project launches, stepping up pressure for retailers
to collect sales tax on online sales
First Internet Retailer Conference and Exhibition
YouTube launches; its massive popularity inspires e-retailers to take
another look at online video
Vendor Bazaar voice launches customer reviews with first client,
Golfsmith; customer reviews soon gain widespread popularity
J.C. Penney becomes first retail chain to hit $1 billion in online sales
Web 2.0 takes hold as more retailers incorporate user-generated content
and new Technologies that make sites more interactive
Annual online retail sales jump 25%-again-to $109.4 billion.

2006
Google debuts Google Checkout to compete with the likes of PayPal
Web-only Newegg hits $1 billion in sales only five years after launch
Annual online retail sales up 25%-yet again-to $136.2 billion
 ZA-Smaller players drive online sales growth: 1-100 in the Internet
Retailer Top 500 Guide grow 19%; 401-500 grow 23%.

2007
Apple debuts the I-Phone with full web browsing and downloadable apps,
advancing m-commerce
Nike CEO says he woke up to potential of e-commerce, charts new
course to achieve full potential of the web
Apparel sales exceed computer sales online for the first time
Not-so-merry Christmas: Amazon.com, Macys.com, Overstock.com and
Yahoo Stores crash during the holiday crush
Annual online retail sales growth slips a bit, up 21.8% to $165.9 billion.

2008
Amazon.com surpasses eBay in most monthly unique visitors
Levi is back selling online; manufacturers account for 14% of sales of Top 500
online retailers.
Amazon.com introduces TextBuyIt, enabling consumers to buy products via text
Messages
Number of smart phone users nears 25 million and 3G wireless broadband
subscribers surpasses 70 million; both technologies dramatically improve mobile
web browsing
The Friday after Thanksgiving, Sears.com down for 2 hours and 45 minutes due
to popularity of online promotions
Google Sites generate 85 billion searches, Yahoo Sites only 25 billion and
Microsoft Sites 10 billion
As the economy tanks, the heyday of 20%-plus e-commerce growth ends: annual
online retail sales up only 6%

2009
 Amazon.com and Overstock.com lose New York online sales tax battle.
India's e-commerce market was worth about $3.9 billion in 2009.

2015
Amazon has gone from clocking $1 billion to $2.7 billion in gross sales.
Flipkart notched up a 400% growth the year before, when it's GMV(gross
merchandise value) zoomed from $1 billion to $4 billion,
Gurgaon-based Snapdeal, on the other hand, has registered an almost 50%
knock-down in sales numbers after similar highs it touched exactly a year
ago. The company said as of June, its GMV run rate was more than $2.5
billion.

India differs from most developed markets, where consumers are making the shift from
desktop to mobile for shopping online; those in the country instead have skipped the
desktop phase altogether. They are increasingly accessing the web for the first time via
smartphone, and therefore have shown a willingness to make purchases on their mobile
devices.

India had an internet user base of about 354 million as of June 2015 and is expected to
cross 500 million in 2016. Despite being the second-largest userbase in world, only
behind China (650 million, 48% of population), the penetration of e-commerce is low
compared to markets like the United States (266 million, 84%), or France (54 M, 81%),
but is growing at an unprecedented rate, adding around 6 million new entrants every
month. The industry consensus is that growth is at an inflection point.
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows
totaling US$ 537.61 million during April 2000March 2016, according to the Department
of Industrial Policies and Promotion (DIPP).
In India, cash on delivery is the most preferred payment method, accumulating 75% of
the e-retail activities. Demand for international consumer products (including long-
tail items) is growing much faster than in-country supply from authorised distributors and
e-commerce offerings.
In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal, Amazon
India, and Paytm.
With the rising need for consumer goods in different sectors including consumer
electronics and home appliances, many companies have invested in the Indian retail
space in the past few months.
 SCOPE OF E-RETAILING
IN INDIA

Submitted in partial fulfillment of the degree of

Bachelor of Business Administration
(Computer Aided Management)
Session (2016-2017)

SUBMITTED TO: SUBMITTED BY:

MRS.MONIKA KASTURIA SHIVANI GUPTA

(LECTURER, BBA DEPARTMENT) BBA (CAM)-6th SEM.

ROLL NO.-26069

D.A.V CENTENARY, FARIDABAD

(AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY)
ACKNOWLEDGEMENT

Acknowledgement is not only a ritual but also an expression of indebtedness

to all those who have helped in the preparation process of the project. One of
the most pleasant aspects is collecting the necessary information and
compiling it is the opportunity to thank those who actively contributed to it.

I would like to express my sincere appreciation to Mrs. Monika kasturia her

kind help, guidance, support and encouragement throughout my project.

This project will help me to curve my personality in the best manner, which
is needed for professional career. Infect this project is the mirror of my
aspiration.

(SHIVANI GUPTA)

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-
retailing become an essential need in todays world and how they are influencing our life.
It also tells about the business uses of e-retailing. And what is the scope and uses of e-
retailing.

(SHIVANI GUPTA)

TABLE OF CONTENTS
CHAPTER TITLE PAGE NO.
NO.

1. INTRODUCTION TO THE TOPIC

2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
DATA COLLECTION
LIMITATION OF THE STUDY

4. DATA ANALYSIS & INTERPRETATION

6. CONCLUSION & RECOMMENDATION

7. BIBLIOGRAPHY
 CHAPTER -1

INTRODUCTION
TO
THE TOPIC

E-RETAILING
 A new business tool to capture the existing market

RETAIL

The word retail is derived from the French word retailer, which means to cut off a piece
or to break bulk. A retailer may be defined as a dealer or trader who repeatedly sells
goods in small quantities. It is the sale of goods or commodities in small quantities
directly to consumers. It also means to sell in small quantities directly to consumers.

According to PHILIP KOTLER-

Retailing includes all the activities involved in selling goods or services to the final
consumers for personal use. A Retailer or Retail store is any business enterprises whole
sales volumes comes primarily from retailing

E-RETAILING
E-Retailing is the sale of goods and services through the use of technology such as
computer and Internet to the world. Electronic retailing, or e-tailing, can include
business-to-business and business-to-consumer sales. E-tailing revenue can come
from the sale of products and services, through subscriptions to website content, or
through advertising.

E-Retailing stores sell online promotion only for goods that can be sold easily online,
e.g., Amazon did for Books & CDs, etc. The online retailing require lots of displays and
specification of products to make the viewers have a personal feel of the product and its
quality as he gets while physically present in a shop.

E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to
customer) business model that executes a transaction between businessman and the final
consumer. E-Retailers can be pure play businesses like amazon.com or businesses that
have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-
commerce. Thus, e-commerce is the master domain defining the e-retailing operation.

Opportunities Provided By E-Retailing-

E-Retailing opens up many doors for companies.

E-Retailing provides a greater range of people to sell the products to.

This can lead to increase in profits and a decrease in costs.

The web site can also lead to opportunities of better and cheaper products to sell
thought globalisation.

Major E-Retailers In India

 Flipkart.com

Infibeam.com

Myntra.com

E-bay.com

India times shopping

Rediff.com

jaldi.com

fabmart.com

tsnshop.com

satyamonline.com
 Benefits Of E-Tailing:-
It reduces the space occupied by retail outlets in the real world.

It gives quick and easy access to a shopping space at any time and from any place
where there is access to internet.

It saves time of the customer that is spent on travelling to a shopping place in real
world.

It creates a new platform for goods from different parts of the world which could
be imported by placing an order.

Problems with E-Retailing:-

The lack of full disclosure with regards to the total cost of purchase is one of the
concerns of online shopping.

Privacy of personal information is a significant issue for some consumers Many

consumers wish to avoid spam and telemarketing which could resultfrom
supplying contact information to an online merchant.

Language Problem as Most internet retail shops use English as their mode of
communication. English may not be comprehensible to the majority of the Indian
population

Essentials of E-Retailing:-

Electronic retailing or e-tailing, as it is generally being called now, is the direct sale
of products, information and service through virtual stores on the web, usually
designed around an electronic catalogue format and auction sites. There are
thousands of storefronts or e-commerce sites on the Internet that are extensions of
existing retailers or start-ups. Penetration of computers and proliferation of the
Internet has given rise to many new forms of businesses, such as business process
outsourcing, call centre based customer relationship management, medical
 transcription, remotely managed educational and medical services and of course,
electronic retailing.

There are certain essential ingredients for an electronic retailing business to be

successful. One must consider these components well in advance before setting up
an electronic storefront. These essential components are:

Attractive business-to-consumer (B2C) e-commerce portal

Right revenue model
Penetration of the Internet

E-Catalog- It is a database of products with prices and available stock.

Shopping Cart- The customers select their goodies and fill shopping cart.
Finally, as in a real store, at the time of checkout, the system calculates the price
to be paid for the products.

A payment gateway -Customer makes payments through his/her credit card or e-

cash. The payment mechanism must be fully secure.
ROLE OF E-RETAILING
E-Retailing can be categorized into two types:
Passive systems: In this system,a retailer decides the content and timing
of messages and includes all forms of one way communication media
Support Services in E-Retailing:-

The electronic retail business requires support services, as a prerequisite for

successful operations. These services are required to support the business, online or
offline, throughout the complete transaction-processing phases. The following are the
essential support services:

Communication backbone
Payment mechanism
Order fulfillment
Future of E-retailing in India
There are divergent views on the future of e-retailing in India. Some experts are of
the opinion that the giant, big brand retailers would dominate the small ones due
to their wider investment capacities. It would be next to impossible for the small
retailers and the kiranas to prove their existence in the battlefield of online
retailing. Another viewpoint is that there would be an exponential growth in the
online retailing business in India
CHAPTER-2

REVIEW OF
LITERATURE
 HISTORY OF E-REATILING

History of e-retailing dates back to the invention of the very old notion of "sell and buy",
electricity, cables, computers, modems, and the Internet. Ecommerce became possible in
1991 when the Internet was opened to commercial use. Since that date thousands of
businesses have taken up residence at web sites.

At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for
users to exchange business information and do electronic transactions. The ability to use
these technologies appeared in the late 1970s and allowed business companies and
organizations to send commercial documentation electronically.

Although the Internet began to advance in popularity among the general public in 1994, it
took approximately four years to develop the security protocols (for example, HTTP) and
DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a
great number of business companies in the United States and Western Europe represented
their services in the World Wide Web. At this time the meaning of the word ecommerce
was changed. People began to define the term ecommerce as the process of purchasing of
available goods and services over the Internet using secure connections and electronic
payment services. Although the dot-com collapse in 2000 led to unfortunate results and
many of ecommerce companies disappeared, the "brick and mortar" retailers recognized
the advantages of electronic commerce and began to add such capabilities to their web
sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains,
Albertsons and Safeway, began to use ecommerce to enable their customers to buy
groceries online). By the end of 2001, the largest form of ecommerce, Business-to-
Business (B2B) model, had around $700 billion in transactions.

E-tailing began to work for some major corporations and smaller entrepreneurs as early
as 1997 when Dell Computer reported multimillion dollar orders taken at its Web site.
The success of Amazon.com hastened the arrival of Barnes and Noble's e-tail site.
Concerns about secure order-taking receded.

1997 was also the year in which Auto-by-Tel reported that they had sold their millionth
car over the Web, and Commerce Net/Nielsen Media reported that 10 million people had
made purchases on the Web.

E-retailing uses internet as a medium for customers to shop for the goods or services. It
can be either pure-plays or bricks-and-clicks. Pure-play uses internet as primary means
of retailing while bricks-and-clicks uses the internet as an addition to the physical store.

Now a day retailers have started offering almost everything under the sun on internet.
From products like groceries to services like online gaming and jobs, e-retailing covers
all frontiers.

Unfortunately, India has lagged in e-retail growth story due to low density of internet
connections, lower penetration of credit cards and customer anxiety in using new
technologies.

During the dotcom boom Ecommerce was the sunrise industry, the one that would
change the face of the world. While E-bay and Amazon the twin pillars of Ecommerce in
US did bring about paradigm shift in USA, the tech pundits in India are still a bit iffy
about Ecommerce in India.

Today the Internet might be viewed as a huge market potentially capable of covering the
population of the whole world. This is why electronic commerce or E-Commerce is so
attractive for many traditional businesses-Commerce consists of the buying and selling of
products or services over electronic systems such as the Internet and other computer
networks. The amount of trade conducted electronically has grown dramatically since the
large introduction of the Internet. A wide variety of commerce is conducted in this way,
including things such as electronic funds transfer, supply chain management, e-
marketing, online marketing, online transaction processing, electronic data interchange,
automated inventory management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web in at least some point in
the transactions lifecycle.
Ecommerce has a great deal of advantages over "brick and mortar" stores and mail order
catalogs. Consumers can easily search through a large database of products and services.
They can see actual prices, build an order over several days and email it as a "wish list"
hoping that someone will pay for their selected goods. Customers can compare prices
with a click of the mouse and buy the selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its search engines
provide a way to be found by customers without expensive advertising campaign. Even
small online shops can reach global markets. Web technology also allows to track
customer preferences and to deliver individually-tailored marketing.

History of ecommerce is unthinkable without Amazon and Ebay which were among the
first Internet companies to allow electronic transactions. Thanks to their founders we now
have a handsome ecommerce sector and enjoy the buying and selling advantages of the
Internet. Currently there are 5 largest and most famous worldwide Internet retailers:
Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the
most popular categories of products sold in the World Wide Web are music, books,
computers, office supplies and other consumer electronics.

Amazon.com, Inc. is one of the most famous ecommerce companies and is located in
Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first
American ecommerce companies to sell products over the Internet. After the dot-com
collapse Amazon lost its position as a successful business model, however, in 2003 the
company made its first annual profit which was the first step to the further development.

At the outset Amazon.com was considered as an online bookstore, but in time it extended
a variety of goods by adding electronics, software, DVDs, video games, music CDs,
MP3s, apparel, footwear, health products, etc. The original name of the company was
Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename
his business "Amazon" after the world's most voluminous river. In 1999 Jeff Bezos was
entitled as the Person of the Year by Time Magazine in recognition of the company's
success. Although the company's main headquarters is located in the USA, WA, Amazon
has set up separate websites in other economically developed countries such as the
United Kingdom, Canada, France, Germany, Japan, and China. The company supports
and operates retail web sites for many famous businesses, including Marks & Spencer,
Lacoste, the NBA, Bebe Stores, Target, etc.

Amazon is one of the first ecommerce businesses to establish an affiliate marketing

program, and nowadays the company gets about 40% of its sales from affiliates and third
party sellers who list and sell goods on the web site. In 2008 Amazon penetrated into the
cinema and is currently sponsoring the film "The Stolen Child" with 20th Century Fox.

According to the research conducted in 2008, the domain Amazon.com attracted about
615 million customers every year. The most popular feature of the web site is the review
system, i.e. the ability for visitors to submit their reviews and rate any product on a rating
scale from one to five stars. Amazon.com is also well-known for its clear and user-
friendly advanced search facility which enables visitors to search for keywords in the full
text of many books in the database.

One more company which has contributed much to the process of ecommerce
development is Dell Inc., an American company located in Texas, which stands third in
computer sales within the industry behind Hewlett-Packard and Acer.

Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of
1997 was the first company to record a million dollars in online sales. The company's
unique strategy of selling goods over the World Wide Web with no retail outlets and no
middlemen has been admired by a lot of customers and imitated by a great number of
ecommerce businesses. The key factor of Dell's success is that Dell.com enables
customers to choose and to control, i.e. visitors can browse the site and assemble PCs
piece by piece choosing each single component based on their budget and requirements.
According to statistics, approximately half of the company's profit comes from the web
site.

In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500
list and 8th on its annual Top 20 list of the most successful and admired companies in the
USA in recognition of the company's business model.

History of ecommerce is a history of a new, virtual world which is evolving according to

the customer advantage. It is a world which we are all building together brick by brick,
laying a secure foundation for the future generations.

1989
- Peapod brings the grocery store to the home PC
1992
-U.S. Supreme Court upholds 1967 ruling, effectively freeing web retailers from
collecting sales tax in states where they have no physical presence
-Phone-based 1-800-Flowers plants itself on the web
1994
-A department store comes to the Internet: J.C. Penney
-Jerry and Davids Guide to the World Wide Web is renamed Yahoo
-Netscape unveils SSL encryption, enhancing web security
-The future king of e-commerce, Amazon.com, launches
-Auction Web launches a site soon to be rechristened eBay
1997
-Dell becomes first company to hit $1 million in annual online sales
-Netflix begins operations, changing the way people rent movies
 1998
-PayPal launches its alternative payment service; eBay acquires PayPal in 2002
-Google, the future king of search, debuts
-Yahoo launches selling platform Yahoo Stores
-Annual online retail sales hit $8 billion
1999
-Zappos launches web-only shoe store emphasizing customer service; in 2008,
annual sales top $1 billion
-Internet Retailer magazine debuts in March
-Online grocery service Webvan starts its engines
-Global Sports, which becomes GSI Commerce in 2002, debuts fully outsourced
e-commerce platform
-Levi gets hands slapped by retailers for selling direct to consumers, kills its web
site
-eToys.com among first online retailers to jump into Internet IPO boom
-Heavy-hitter Furniture Brands International says furniture doesnt fit the web;
housewares/home furnishings retailers rack up $3.9 billion in web sales in 2007
-Victorias Secret debuts site with an online video viewed by 1 million on Day
One
-Weekly web sales top $1 billion for first time in December 1999
-Annual online retail sales skyrocket 100% to $16 billion
2000
-Amazon.com and Toys R Us announce 10-year agreement for cobranded online
store
-Disgruntled customers file class action suit against ToysRUs.com for failing to
meet Christmas delivery
-In Q4, quarterly e-commerce sales exceed 1% of total retail sales
-Wal-Mart introduces buy online/pick up in store program
-eToys crashes repeatedly during December; shoppers looking to buy file class
action lawsuit
2000 (The Dot Com Investment Bust)
 -Garden.com throws in the trowel
-Pets.com winds up in the litter
-Hyped fashion retailer Boo.com closes its closet
-The Internet falls out of favor with Wall Street, but not Main Street: online retail
sales soar 81.3 % to $29 billion
-Internet grocery service Webvan runs out of gas
-One-hour delivery service Kozmo.com crashes
-eToys.com shuts its toy chest
-Despite ongoing dot-com investment implosion, annual online retail sales leap
48.3% to $43 billion
2001
-Branded retailers account for 2% of all merchandise sold on eBay
-Amazon.com blazes a trail, launching a mobile commerce site
-Court shuts down free music-sharing site Napster; site relaunches in 2003 as paid
service
-Amazon.com posts first net profit in Q4, proving pure-plays can play
2002
-Number of web users who have bought online crosses 50% mark; 52.4% aged
14+ bought on the web in 2002
-Annual online retail sales up 25.6% to $54 billion
2003
-Apple launches iTunes store for digital music downloads
-Social network MySpace launches, followed by rival Facebook in 2004
-Congress passes the CAN-SPAM Act, setting rules for marketing e-mail
-Annual online retail sales jump 29.6% to $70 billion
2004
-Credit card companies create PCI data security standards
-Internet Retailer debuts Top 300 Guide, which will become the Top 500 Guide
-Annual online retail sales up 25% to $87.5 billion
2005
-One million Valentines Day shoppers crash Hallmark.com multiple times
 -Streamlined Sales Tax Project launches, stepping up pressure for retailers to
collect sales
tax on online sales
-First Internet Retailer Conference and Exhibition
-YouTube launches; its massive popularity inspires e-retailers to take another look
at online video
-Vendor Bazaarvoice launches customer reviews with first client, Golfsmith;
customer reviews soon gain widespread popularity
-J.C. Penney becomes first retail chain to hit $1 billion in online sales
-Web 2.0 takes hold as more retailers incorporate user-generated content and new
technologies that make sites more interactive
-Annual online retail sales jump 25%-again-to $109.4 billion
2006
-Google debuts Google Checkout to compete with the likes of PayPal
-Web-only Newegg hits $1 billion in sales only five years after launch
-Annual online retail sales up 25%-yet again-to $136.2 billion
ZA-Smaller players drive online sales growth: 1-100 in the Internet Retailer Top
500 Guide
grow 19%; 401-500 grow 23%
2007
-Apple debuts the iPhone with full web browsing and downloadable apps,
advancing m-commerce
-Nike CEO says he woke up to potential of e-commerce, charts new course to
achieve full potential of the web
-Apparel sales exceed computer sales online for the first time
-Not-so-merry Christmas: Amazon.com, Macys.com, Overstock.com and Yahoo
Stores crash during the holiday crush
-Annual online retail sales growth slips a bit, up 21.8% to $165.9 billion
2008
-Amazon.com surpasses eBay in most monthly unique visitors
 -Levi is back selling online; manufacturers account for 14% of sales of Top 500
online retailers
-Amazon.com introduces TextBuyIt, enabling consumers to buy products via text
messages
-Number of smartphone users nears 25 million and 3G wireless broadband
subscribers
surpasses 70 million; both technologies dramatically improve mobile web
browsing
-The Friday after Thanksgiving, Sears.com down for 2 hours and 45 minutes due
to popularity of online promotions
-Google Sites generate 85 billion searches, Yahoo Sites only 25 billion and
Microsoft Sites 10 billion
-As the economy tanks, the heyday of 20%-plus e-commerce growth ends: annual
online retail sales up only 6%
2009
-Amazon.com and Overstock.com lose New York online sales tax battle

History of online retail

The growth of online shopping since 1995: what happened when, how many of us were
online, and where we could shop.
The Internet has changed the way we shop. Even those of us who do not regularly buy
online use search online for prices, product specifications and availability before heading
to the high street.
Retailers in the UK recognise that the internet is transforming the way that customers
shop, re-shaping the high street as a result. Many of us now shop from our homes and on
the move unrestricted by store opening times.
Research by IMRG suggests over 60 per cent of smartphone shoppers are planning to do
their Christmas shopping by phone. Many of these shoppers admit to showrooming, a
technique that involves browsing high street stores to find the product they like and then
by buying via a smartphone or tablet computer at whichever online retailer offers the best
price.
Only 20 years ago most of us were oblivious to the existence of the internet as a place to
shop. Tesco and Asda dabbled with home shopping services via the computer in the mid-
1980s, but it was not until the invention of the World Wide Web by Tim Berners-Lee that
widespread consumer use of the Internet became a possibility.

The growth of internet users worldwide

Below is a chart showing how the number of internet users has increased from 16 million
in 1995 to almost 3 billion in 2013.

E-commerce in India
From Wikipedia, the free encyclopedia
India had an internet user base of about 354 million as of June 2015[1] and is expected to cross 500
million in 2016.[2] Despite being the second-largest userbase in world, only behind China (650 million,
48% of population), the penetration of e-commerce is low compared to markets like the United
States (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding
around 6 million new entrants every month.[3] The industry consensus is that growth is at an inflection
point.[4]
In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities.[5] Demand for international consumer products (including long-tail items) is growing much
faster than in-country supply from authorised distributors and e-commerce offerings.
In 2015, the largest e-commerce companies in India were Flipkart, Snapdeal, Amazon India,
and Paytm.[6]

Market size and growth[edit]

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013.
In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is
travel related.[7] According to Google India, there were 35 million online shoppers in India in 2014 Q1
and is expected to cross 100 million mark by end of year 2016.[8] CAGR vis--vis a global growth rate
of 810%. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-
commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that
online travel accounts for 61% of the e-commerce market.[9]
By 2020, 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]
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016
and $850 billion by 2020, estimated CAGR of 10%..[citation needed] According to Forrester, the e-
commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over
57% between 201216.[11]
As per "India Goes Digital",[12] a report by Avendus Capital, the Indian e-commerce market is
estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable
portion (87%) of this market today. Online travel market in India had a growth rate of 22% over the
next 4 years and reach Rs 54,800 crore ($12.2 billion) in size by 2015. Indian e-tailing industry is
estimated at Rs 3,600 crore (US$800 million) in 2011 and estimated to grow to Rs 53,000 crore ($11.8
billion) in 2015.
Overall e-commerce market had reached Rs 1,07,800 crores (US$24 billion) by the year 2015 with
both online travel and e-tailing contributing equally. Another big segment in e-commerce is
mobile/DTH recharge with nearly 1 million transactions daily by operator websites. [citation needed]
A new sector in e-commerce is online medicine, selling complementary and alternative medicine or
prescription medicine online. There are no dedicated online pharmacy laws in India and it is
permissible to sell prescription medicine online with a legitimate license.[citation needed]
Online sales of luxury products like jewellery also increased over the years. Most of the retail brands
have also started entering into the market and they expect at least 20% sales through online in next 2
3 years.[13]

Closures[edit]
Though the sector has witnessed tremendous growth and is expected to grow, many e-commerce
ventures have faced tremendous pressure to ensure cash flows. But it has not worked out for all the e-
commerce websites. Many of them like Dhingana, Rock.in, Seventy MM amongst others had to close
down [14] or change their business models to survive.[15]

Infrastructure[edit]
There are many hosting companies working in India but most[citation needed] of them are not suitable for
eCommerce hosting purpose, because they are providing much less secure and threat protected shared
hosting. eCommerce demand highly secure, stable and protected hosting.[citation needed] Trends are changing
with some of eCommerce companies starting to offer SaaS for hosting web stores with minimal one
time costs.
India has got its own version of Cyber Monday known as Great Online Shopping Festival which
started in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber Monday"
is a term coined in the USA for the Monday coming after Black Friday, which is the Friday
after Thanksgiving Day.[16] Most recent GOSF Great Online Shopping Festival was held during Dec 10
to 12, 2014.
In early June 2013, Amazon.com launched their Amazon India marketplace without any marketing
campaigns. In July 2014, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India to
expand business, after its largest Indian rival Flipkart announced $1 billion in funding. In June 2016,
Amazon agreed to invest another $3 billion to further pressure rivals Flipkart & Snapdeal[17] Amazon
has also entered grocery segment with its Kirana now in bangalore and is also planning to enter in
various other cities like Delhi, Mumbai and Chennai and faces stiff competition with Indian startups. [18]
 CHAPTER 3

RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

Research methodology is not only the application of the research methods but also the
comparison of the logic behind the methods that is being used in this context of research
study and explain why particular methods or techniques are used and why others are not
being used. Research methodology is the to systematically solve the research problem .In
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them are studied in order to have a clear view of the study.

Research methodology is the way to systematically solve the research

problem. It may be understand as a science of studying how research is
done scientifically. In it I study the various steps that are generally adopted by a
researcher in his research problem along with the logic behind them. It is
necessary f o r t h e researcher to know not only the research method but also the
methodology.

The report has different direction and features, including different steps as follows:

The research process includes the following steps:

Defining the problem

Statement of research objectives
Planning the research design
Planning the sample
Collection of data
Analyzing the data
Formulation of conclusion
Preparation of the report
 OBJECTIVES OF THE STUDY

1) To understand the online retail market in India and its impact on Indian retail.
2) To analyze the opportunities for online retailing in India
3) To study the major challenges for online retailing in India.
4) Where people are interested in this modern way of shopping or that traditional
way
5) To study the growth of e-tailing in India.
6) Whether e-retailing is able to change the shopping experience of customer or
not.
7) What steps a e-retailing format companies should take to increase the
profitability.
 SCOPE OF THE STUDY

The scope of the research study is limited to online retail market, the opportunities and
challenges for the evolving online retail market in India. The study is limited to the extent
of information gather from the internet.

1) This study comprises of in-depth coverage of E-Retailing. A little bit of E-

Commerce is also covered.
2) The study looks into the online retail market and how it had impacted the Indian
retail industry.
3) This study does not focus on the wide spectrum use of e-retailing in daily life on
our social lives and businesses.
4) There is no doubt in saying that technology is changing our view of living but
side by side it has some side effects or we can say bad effects especially on our
children and society and it cant be neglected.
5) This study will help the people to learn about the substitutes available for the
same product.
6) This study explains about the factors which involve in managing the sale and
purchase over network.
 RESEARCH DESIGN

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data.

A research design is the plan of a research study. The design of a study defines the study
type.

The various types of research designs which are used in collection of data are:

Exploratory Research Design

Descriptive Research Design

Diagnostic Research Design

Experimental Research Design

RESEARCH DESIGN FOR THE PRESENT STUDY

The type of research design which is used in this study is exploratory research design
Exploratory research
Exploratory research (ER) is an examination into a subject in an attempt to gain further
insight. With ER a researcher starts with a general idea and uses research as a tool to
identify issues that could be the focus of future research
 DATA COLLECTION

The type of research design which is used in this study is exploratory research design
Depending on the source, statistical data are classified under two categories:

Primary Data: Primary data are obtained by a study specifically designed to fulfill the
data needs of the problem at hand. Such data are original in character and are generated
in large no. of survey conducted with a sample.

Secondary Data: These data are not originally collected but rather obtained from
published or unpublished source

SOURCE OF DATA COLLECTION FOR PRESENT STUDY

The source of data collection is Secondary Data.

The various sources which I used for collecting data for this study involve:
The use of internet
websites
Books
Newspaper
Magazines
These sources really help me a lot in gathering and collecting knowledge about
computers which helped me in completing my project on the topic evolution of
computers successfully.
 LIMITATION OF THE STUDY

The findings of this study are based on the expressed opinion of the respondents.

Some respondents were hesitant in providing complete information.

The sample of the respondents is not representative of the total universe.

Another limitation lies in the measurement of attitudes toward online privacy in

general. Consumers may behave differently when making purchase decisions
concerning specific Web sites or product categories.

Due to Shortage of time data is biased to some extends.

Only secondary Data is used

Information may be outdated or obsolete.

The available data may not suit the current purpose of research due to
incompleteness and generalities.

There may be difficulty in identification of source.

CHAPTER-4
 DATA ANALYSIS
&
INTERPRETATION

E-retailing

E-retailing or online is growing at faster pace in India. It has witnessed steady growth of
50-60 % over the years. E-retailing accounts for 10 % of e-commerce activities in India.

AT Kearneys 2013- Global Retail ecommerce index stated that India has unharnessed
online retail potential. The growth of online retail can add immense value to different
stake holders of Indian retail sector. The growth prospects of online retail are high in
India, but along with the growth opportunities there are challenges which need to be
addressed.

Opportunities for Online retail in India

The current business environment in India has the potential to enhance the growth of the
online retail in India. Some of the key factors that can contribute to the growth of online
retail in India include

1) Increase in the number of Internet users and online buyers

According to Google, India now have around 200 million internet users which is
expected to reach 500 million by 2018. Every year there is an estimated increase
of 5 million internet users every month. One of the key factors contributed to the
increase in internet users is the spread of broad band connectivity across the
country. In 2013, the broad band connectivity is around 15.13 million.
Government is talking initiatives to increase it by 214 million broad band
connections by 2014. This will enhance the accessibility of internet for common
people. Forresters Asia pacific retail forecast predicts that online buyer
population will reach 39 million by 2014 and 128 million by 2018 which can
stimulate the growth of online retailing in India.

2) Smart phone revolution and Mobile Internet

India is one of the markets which is witnessing growth in smart phone customers.
In 2013, there were 51 million smart phone users in India which is expected to
reach 104 million by 2014. But this Forms about 10 per cent of the total mobile
users currently. The availability of cheap smart phone can enhance the growth rate
in future. Access to 3G and 2G mobile data networks and availability of cheap
smart phones can enhance the customer transaction using mobiles. Most of the
online retailers are developing their mobile applications to enhance the shopping
experience. Amazon came up with their own 3D smart phone- Fire phone to
enhance the mobile shopping experience of their customers. If we compare the
mobile internet users we can observe increasing trend with respect to mobile
internet users. According to 2015 projection, out of 300 million internet users 200
million users will be accessing internet using mobile phones which can enhance e-
retailing opportunities in India.
3) Increase in transaction by Debit cards, Credit cards, Net and mobile banking

Retail electronic payments was around INR 33.8 lakh crore in 2013 compared
with INR 50,000 crore in 2004. Credit card payments has grown seven times
during this period and reached INR 1.2 lakh crore in 2013. In the case of Debit
card transaction there was an increase in 15 times which is valued around INR
74,300 crore in 2013. If we analyse the trend electronic transaction has increased
during 2013 which forms 57 % of banking transaction compared with 43% of
paper transaction. There was an increase in registered internet banking users in
India during 2013 which was around 35 % for public sector banks 25 % for
private sector banks and 5% for foreign banks compared with 2012. But still
Internet banking transaction forms 2-8% of total banking transactions for all
Indian banks. Mobile banking is emerging in India which witnessed a growth with
30 million users in 2013 compared 22.51 million users in 2012. From these trends
we can conclude that Indian customers are gradually changing with respect to the
way they do financial transactions. Credit, Debit cards and Net banking can
facilitate quick and convenient transaction for customers which can augment the
growth of e-retailing in India. With the emergence of secure transaction methods
like two factor authentication, One Time Passwords(OTP) and payment gateways,
consumers preference to shop and do financial transactions online has increased.
This can enhance online retailing because of enhanced security and easiness in
doing the transaction. Some of the retailers are providing the facility of cash on
delivery options (COD) to customers those who are sceptical about the secure
transactions in online platforms. This forms more than 60% of the total
ecommerce transaction in India. Banks and ecommerce sites are taking proactive
steps in enhancing on-line transactions by addressing security and other issues
with respect to online transactions.

4) Rising disposable Income and Rapid urbanization.

Annual disposable income in India is expected to increase at CAGR of 5.1% and

expected to be USD 3823 by 2015.According to 2011 Census, the urbanisation
 showed an exponential growth rate of 2.76% . We have around 337 million people
who live in urban areas in 2011. The census data shows that the no of statutory
towns increased at the rate of 6.37% during 2001-2011. There is steady increase
of urban agglomerations at the rate of 23.7% during this period. These trends can
enhance the prospects of online retailers.

Challenges for online-retailers in India

Even though India online retailing has growth prospects, there are multiple challenges for
e-retailers in India market. It includes

1) Logistics

Effective logistics play a key role in determining the operational success of e-

retailers. If we look at the India our country is large and fragmented with poor
infrastructure facilities. So timely delivery and other priority services are the
biggest challenges for online retailers in our country. Moreover cost of logistics in
India is high due to lack of adequate infrastructure. This has forced some of the
retail players like Flipkart and Amazon to build their own logistics arms. Flipkart
has e-kart logistics which takes care for their delivery process. Some of the online
retailers are tied up with logistics companies for fulfilling customer orders. One of
the biggest problems faced by logistic companies is the limited airline feet size of
logistic companies. We look at the Indian scenario we have limited fleet of freight
carriers which can hinder the priority services like same day delivery for
customers. Air fleet size comparison Courier service providers of US and India.
Another important drawback is the limited technology investments and
developments in Indian logistics sector. If we look at developed countries there is
huge investment in technologies like GPS, RFID technology to enhance the
tracking of shipment and delivery of customer orders.

2) Poor Internet speed

 One of the biggest problems India facing is the slow speed internet connection
which can affect the prospects of online retail in long run. The average internet
speed is less than 1 mbps which makes it one of the low ranked nations in global
scenario with respect to internet speed. This can affect the accessibility to
shopping sites and online transactions which will in turn reduce the customer
buying through online portals.

3) Customer Trust and Loyalty

Some of Indian online retailers lack trust among the customers. Even though we
have trusted players like Flipkart, Myntra and Jabbong, other retailers were not up
to the mark compared with other players. The entry of foreign online retailers like
Amazon has forced Indian players to enhance customer loyalty. Flipkart has
started an initiative called Flipkart first which provides same day delivery, priority
customer services, free shipments and exclusive offers.

4) Overcoming touch and feel mental barrier of Indian customers

Indian customers prefer to touch and feel products before they purchase. The
biggest challenges faced by online retailers to overcome this barrier. Online
retailers are trying to overcome this barrier by adding more specifications and
information about products. They also share customer feedbacks to enhance the
confidence of customers.

5) COD and Returns management

Cash on delivery has emerged as the preferred mode of payment by online

customers. This has created certain critical issues for online retailers. Some of the
logistics providers levy extra charges from the customers which can affect the
retail business in long run. Delay in remittances of the Cash collected by logistics
providers from customers can reduce the working capital for online retailers.
Another important issue faced by online retailers is the customer returns and how
to handle it. Some of the logistics players dont have the capacity to handle the
 returns. More over this can create an additional cost for the retailers which is an
important issue faced by online retailers. This has forced some of the retailers to
start their own logistic arm to address these issues in a better manner which can
enhance customer trust and convenience. Moreover this can provide the cost
advantage for online retailers in long run.

Steps Involved In E-Retailing:-

The shopping process through internet media happens in 5 steps generally.

1) Customer visit:

The customer accesses the website of the e-tailer through his/her mobile or PC or
laptop. This visit is very critical to the e-tailer because it is this visit that would
create an opportunity for a business. The simplicity of the site, the arrangements
of the products in the site and various other factors decide the first impression of
the customer.

2) Choice of product:
 Once the customer visits the site he/she would choose a product based on the
image and valid information available on the web page. This information can
include the price tag, details about the product, availability/deliverable time span
and even customer reviews on the product.

3) Payment online:

Once the customer chooses the product the next step would be to go through a
secure process of data exchange. The e-tailer may provide a unique user account
to the customer to keep the transaction safe. Payments to the product can be made
online through credit or debit card or even cash on delivery basis where the
customer pays the e-tailer when the product is delivered to him/her.

4) Product Delivery:
 Once the order is placed with the e-tailer the next process would test the
efficiency of supply chain network of the e-tailer. The delivery of the product
would be based on the availability of the product in the inventory closest to the
customers delivery address. This process may also involve shipment of the
product. There are different methods used in this process. Some e-tailers just
create a platform through a website where the business actually takes place
between the customer and a company (or business) who is a client to the e-tailer.
Here the e-tailer would just take the commission on each product sold. Typically
an e-tailer may also choose to buy products that have potential demand and then
display it on the site. In this case the e-tailer would have to take care of inventory
expenses and also the entire procurement and disbursement cycle.

5) Customer feedback:

Once the product is delivered to the customer the feedback from the customer is
very much important. This is primarily because of the absence of a real shopping
store environment. The entire experience of the customer during the process
 would be an indicator of the efficiency of e-tailing. This experience of the
customer can be accessed through proper customer service for feed backs and the
problems faced by the customer should be corrected by the e-tailer. Late delivery,
wrong product, damaged product etc can be some of the customer complaints
which the e-tailer would have to sort out.

The digital world is dramatically shaping the retail sector where constant contact with
the customer is essential. Opinions are now being shaped by bloggers, tweeters,
Facebook likes and YouTube comments. Customer is increasingly going to the
internet before going to the store. These new empowered customers have a list of
demands.

They want retailers to anticipate and service their shopping needs

They want retailers to make it convenient and easy for them to interact
They want retailers to be available when they need them
They want retailers to remember all of their interactions

Cloud, Analytics, Mobility and Social solutions from IBM are exactly what you need to
adapt to today's marketplace. Customers are responding faster to retailers that add value
through innovations and have little interest in retailers who don't meet their expectations.
The customer experience is evolving into a model with heavy emphasis on mobile, social,
analytics and cloud. The power is now shifting to consumers and this shift will continue
to reshape the retailing landscape for years to come.

THE IMPACT THESE SOLUTIONS WILL HAVE ON YOU AS A

RETAILER:

Customer Experience:
-Turn loyal customers into brand advocates who will actively build the customer
base.

Inventory & Fulfilment:

- Improve inventory optimisation and customer satisfaction
- Create access to a single pool of inventory to deliver the product when and
where the customer wants it

Associate Empowerment:
-Increase employee stature and retention while reducing turnover

Brand Development:
-Increase brand loyalty leading to greater share-of-wallet
 Differences between Online Retail & Traditional Retail Businesses

Often times, it is easy to overlook the differences between selling online through a
shopping cart and retail selling through a brick and mortar storefront. Online retail is
different from selling through a store in many ways and you should become familiar with
the differences so you can better understand the many benefits of selling online compared
to selling through a physical storefront. The obvious differences are the way the products
are displayed to customers and the way in which they enter your store to browse around.

Main Differences Between Online Retail & Physical Storefronts

Display: By shopping at a brick and mortar store the customers are able to physically
touch and handle items they are interested in buying. Online retailers are forced to
display items using only pictures, graphics and text based product descriptions.
 Expense: Typically, there are major differences in the amount of funding or startup
capital needed to open the store. Brick and mortar stores usually require a bigger budget
since you have to lease space, rent property and pay for other location expenses. Online
store owners do not usually have to worry about building leases or property expense.

Location: Online retailers are not limited to one location and have no geographical
boundaries like a traditional brick and mortar storefront has. Physical business locations
can limit the amount of customer traffic and foot traffic from shoppers, especially if they
are not in a bigger city or metro area. Online retailers have no limits and can typically
service local, national and international customers.

Communication: It can be harder to communicate with customers through an online

store compared to the face-to-face interaction customers get by shopping at a brick and
mortar store or physical business location. Online retailers may have a hard time getting
information across to the customer and must be sure to answer all possible buyer
questions through text and graphics on the site so there is no confusion during the
purchase.

Technology: Another main difference is the types and amount of technology needed to
run each type of business. Most online store owners find that their technology is
constantly changing and there is a bigger need for them to keep up and adjust as it
improves. The technology used to run brick and mortar businesses has been around for
years and rarely changes as often as it does in the online selling world.

E-Retailing Benefits Both Consumers and Marketers

Electronic retailing is a powerful marketing technique for the right product with the right
message to the right person. But what makes for the right combination? Why do consumers
respond to TV offers or shop online?

The short answer is that the consumer benefits. People respond to electronic retailing
messages because it is to their advantage to do so. It addresses their needs, either practical.

Electronic retailing, whether on TV or the Internet, is about motivation. How do you

influence someone to do something - to pick up the phone or log on to a Web site and then
make a purchase? Consumers will buy a product or service through an electronic retailing
campaign because they perceive its value or because it makes them look better or feel
better about themselves. They do this even though they cannot examine the product in
person and may have to wait four to six weeks to receive the product.

Convenience. For people who are pressed for time and do not enjoy shopping, an electronic
retailing product may take on added value because the buying transaction can be completed
without hassle, quickly and at hours when traditional retailing is unavailable.

Early access. While many electronic retailing products are available in retail stores at some
future date, the spot, infomercial or Web site offers the product now. An electronic retailing
campaign may be the only place where it is available immediately. If the product solves a
difficult problem or offers an important improvement, consumers who buy from the
electronic retailer can have the product in their hands sooner.

Innovative or unique products. Getting a new, innovative product to market through

traditional channels is expensive and time-consuming, and it requires some luck on the part
of the product's developer. Electronic retailing allows a product's developer to bypass this
process and sell directly to end-users. Consumers who see or hear an electronic retailing
campaign get access to products that may never show up in a retail store because the
developer lacked the resources to take on the massive retail industry.

Better salesmanship. Let's face it: Most products are not well-merchandised. Key sales
messages are poorly communicated or may be missing entirely. Electronic retailing often
overcomes these problems, because the medium itself - television or the Internet - allows
the person to be sold the product. They understand how it works and why. The benefits are
presented clearly and convincingly.

So what's in it for marketers? Perhaps the scales are tipped in favor of consumers,
particularly in today's e-commerce environment. But for a marketer with a new product,
electronic retailing can be a cost-effective method of testing a product's viability in the
marketplace. A successful electronic retailing campaign not only generates revenue but also
builds brand awareness and paves the way for broader distribution.

That's not to say that electronic retailing does not have its pitfalls. While the cost of entry is
low compared with the cost of mounting a traditional retail strategy, a poorly executed
electronic retailing campaign can cost hundreds of thousands of dollars. And once launch
ed, a product can be "knocked off" by an unscrupulous competitor.

For many marketers unfamiliar with electronic retailing and how it works, it is easy to hook
up with inexperienced partners and vendors that do not know how to develop .

Overall, though, the benefits outweigh the risks for many marketers. An electronic retailing
campaign is a low-overhead operation without the network of wholesalers and retailers
between the seller and the consumer. It is almost exclusively a cash business, in that
electronic retailing marketers do not have to extend credit to their buyers the way
traditional.

Most important is the control an electronic retailing campaign gives the seller. The timing
and terms of an offer, the price of a product and the content of the message all are under the
direct control of the marketer and can be adjusted quickly as conditions warrant.

The rapid growth of electronic retailing is a testament to a fundamental truth: People on

both sides of the equation benefit in tangible and meaningful ways. And that is a powerful
formula for success
 Growth of E-Retailing:

The e-Tailing category has grown from INR 1,550 Crores in the year 2009 (Jan-Dec
2009) to INR 6,454 Crores in year 2012 (Jan-Dec 2012) and it crossed the INR 10,000
crore mark in the year 2013. Its details can be seen in the pie chart:

(Source: digitalinsights.com)

Mode of payment:
Majority of the online shoppers use Debit cards/Internet banking as their preferred
mode of payment for shopping online. Payment through credit cards, follow closely at
second position and Cash on Delivery on third position.

(Source: digitalinsights.com)
 Retail E-Commerce in India a closer look

Retail category penetration has increased to 60% reach and has grown to
47.9 million unique visitors a month. The growth has come across all retail
categories and most of them show promising transactions and conversion
rates along with growth in visitors. The top retail sites in India have each
seen a growth of over 100% in the last 12 months.

(Source: digitalinsights.com)
 Amazon is the most visited retail site with most of the traffic slipt
among Amazon.com and Junglee.com.
Flipkart leads the way among the online retailers in India with 7.4
million unique visitors a month, growing at 431% annually.
Snapdeal has been close second with 6.9 million uniques.
Jabong and Myntra have been competing closely in the lifestyle
category with over 5.3 million uniques each.
HomeShop18 has over 4 million uniques a month.

COMPANIES IN E-RETAILING:

1) FLIPKART.COM

Flipkart.com is an e-commerce website founded by Sachin Bansal and Binny Bansal in

2007. Both are from IIT Delhi Alumni and also worked in Amazon.com.
Flipkart.com is the most popular of all Indian online shopping companies, offering
genuine products to people. They have huge stock of innumerable products like clothes,
music, electronics, books, health products, kids toys and accessories, perfumes, games,
movies, home appliances, shoes, stationeries and many more things.
The shopping website offers great advantage of faster product delivery and free shipping
Customers also enjoy the privilege of exceptional services like payment on delivery or
cash on delivery. They can also pay on a monthly basis, as EMIs. In case any customer
is not satisfied with the products, he or she can even return them and get entire payment
back. All types of Visa and Master Debit or Credit cards are accepted to initiate the online
transaction system. Dedicated delivery partners of Flipkart take the responsibility for
timely product delivery at mentioned addresses.
 2) JABONG.COM

Jabong is a fashion and lifestyle e-commerce owned by Rocket internet. Jabong retails
apparel, footwear, accessories, beauty products, fragrances, home accessories and other
fashion and lifestyle products.
The online shopping website is highly popular in offering best quality products of reputed
brands.
The online shopping website strives best to offer highest shopping satisfaction over the
internet to all customers from a wide region. They even use cutting-edge technology on
their online shopping platform to make it swift for surfing through various product pages.
In addition, highly experienced support team provides exclusive service for consumers
and tries to solve almost all problems, if any situation demands.
Jabong.com is one of the fastest growing online shopping portals offering reliable, trendy
and stylish products according to taste of reigning period and fashion concerns of people.
They are highly popular as an online shopping portal offering best prices with exclusive
discount offers.

3) MYNTRA.COM

A one-stop online shopping portal, myntra.com caters to fulfill all requirements

pertaining to lifestyle and fashion products. The company is counted in the list of online
shopping sites raging the country recently. They even offer variety of branded products
through the online shopping portal. They are primarily reasonable to make online
consumers conscious about brand value of different products of daily utility.
From its introduction into the online business world, myntra is dealing in exclusive
choices of accessories, footwear, cosmetics and apparel from more than 500 reputed
international and Indian brands. Notable among them are Biba, Adidas, Inc5, Puma, Nike,
United Colors of Benetton etc. The online shopping portal is reputed to offer more than
3000 styles of products, fitting requirements of all valued consumers.
The customer support service and process of home delivery are one of the swiftest in the
business world. They are also one of the leading Indian online shopping
companies offering guaranteed 30-day free return of goods from doorsteps of consumers
in case of unsatisfactory service.

4) SNAPDEAL.COM

Snapdeal.com started their online business platform in 2010 under the leadership of Rohit
Bansal and Kunal Bahl. Presently, they are placed at favorable positions on the list of
online shopping sites in India. They offer widest range of products lifestyle, fashion
apparel, accessories, electronics, games, eateries, chocolates, grooming, books etc., for
both men and women.
The online shopping platform has their service in more than 50 cities across India and
also has a record 15 million registered users in the country. The website features more
than 3000 brands national, international and even less famous yet offering quality
products. The online store has more than 200 categories featuring more than 250000
products listed with them. More than 25000 products are sold every day.
Snapdeal has close ties with reputed courier services that help in faster home delivery
process. They even offer free return policy of products, if they fail to meet the
expectations of customers. Unlike other Indian online shopping companies, they
initiate complete refund and even additional courier charges that the consumer bears, if
any, while returning the products in an undamaged and unused condition.
 5) AMAZON.IN

Amazon is one of the most reputed names in the world of online shopping for products
like e-books, electronics and others items.
They are committed to ensure 100% Purchase Protection for your shopping done on
Amazon in so that you can benefit from a safe and secure online ordering experience,
convenient electronic payments and cash on delivery, easy returns, Amazons customer
service with 247 support, and a globally recognized and comprehensive purchase
protection provided by Amazons A-to-Z Guarantee.
You can find this Fulfilled by Amazon badge on many product pages. This specifies that
the Orders are eligible for FREE Delivery and can be placed using Cash on Delivery. It is
being mentioned by Amazon India that the orders which contains products worth Rs 499
or more are only eligible for FREE delivery. Amazon has introduced almost all the
practical, useful and cool facilities and features on its Indian counterpart.

6) EBAY.IN

The worlds largest shopping mall on the Internet. eBay is an online marketplace, where
individuals and businesses come together to buy and sell almost anything.
You can find everything on eBay. Mobile phones, digital cameras iPods, t-shirts, shoes,
candles, furniture, jewelers, watches, handicrafts, kurtas, laptops, perfumes, computers,
microwave ovens, toys, baby products, weighing scales, and much more. There are many
ways to buy, so you can choose the format that is best for you. Make an instant purchase
for products at a fixed price with Buy It Now button. Bid using the exciting auction-style
format at the price you are willing to pay. If you are the highest bidder you get the item at
your price. If you cant find what you want, let sellers know Post a Want It Now!
You can Buy and Sell with Confidence. eBays Feedback system is very popular.
Members rate each other based on their experience during a transaction. This is the
easiest way to check a members reputation before you trade with them.

7) NAAPTOL.COM

Naaptol.com is one of the fastest growing top ecommerce sites in India. The company
was founded on 2008 under Manu Agarwal. Initially the company served as a search
engine to provide comparison of product prices and offer services for product research. A
year later, they emerged to be an online marketing platform and were able to create a
furor in the market. With plenty of items in store, like cameras, tablets, home appliances,
mobiles and others Naaptol saw a whopping turnover of more than Rs.10 crore in 2009-
10.
One of the top ecommerce websites in India, Naaptol initiates faster delivery of all
ordered products. However they charge a small amount of shipping charges, based on the
distance the parcel is addressed. Naaptol also offers alluring points to online customers
on ordering different products, which can also be utilized to get attractive discounts at
a later stage. All products are genuine. Naaptol reserves the right to declare products
eligible for return and refund in case a dissatisfied consumer takes up the case with
customer representatives of the company over telephone within 2 days of receiving their
orders.
8) YEBHI.COM
Yebhi.com is a fast growing online shopping platform that started its business venture
since 2010. They are considered to be a premium online lifestyle shopping website that
powered sales of branded footwear over top online shopping sites in India. They
attained highest success in sales of other product categories varying from accessories,
jewelry, mobiles, bags and fashion apparels.
Yebhi.com runs their own operation of warehousing that helps in fulfilling orders
completely through fastest shipping service. They are the best company to offer exclusive
choices of products for a wide genre of consumers. They are an authentic company
offering online marketing service and even deal in products from leading brands directly.
They do not sell products that do not have brand authentication.

Yebhi.com is presently one of the top e-retailing websites in India offering authentic
and dedicated support service for valuable customers. They accept payment through
online transaction mode and even initiate effective home delivery service.
 CHAPTER 5

CONCLUSION
&
SUGGESTION
 CONCLUSION

E-retailing help us to conclude that e-retailing bring advancement in India.

It also help us to increase the sales for manufacturer by direct dealing from
customers.

We can also conclude advantages and disadvantages in E-Retailing .

We can also learn the advancement of e-retailing in India

The internet has created a new avenue for organizations to leverage technology to create
new revenue streams, lower the cost of doing business, improve customer satisfaction,
and attract new customers. Objectives such as these often compel managers to collect
large amounts of customer information to aid in their strategic decision making processes.
Increasingly, consumers are concerned that their information will be disclosed to third
parties or used for purposes other than those for which it was collected. Consumer
concerns have only heightened as media coverage of consumer privacy issues has
increased over the past decade.
The research was conducted to have a perceptual study of privacy issues in E
retailing. On the basis of review of literature questionnaire was developed for the
collection of primary data. This research contributes to the emerging body of research on
privacy issues to address consumer privacy concerns involved in online transactions.
Privacy issues are very important from the point of view of customers as well as
marketer. The growth of business to consumer electronic commerce seems to be non-
stoppable. Yet, online shopping accounts very much less as compared to overall retail
revenues. For the future growth electronic marketing, barriers such as security and
privacy concerns must be torn down. The best way to get over barriers is to clearly
understand how they work and why they exist.

SUGGESTION

1. E-retailing need to manage perceptions of privacy regulation. Policy efforts to

improve privacy protection should be clearly communicated to the customers.
2. Managers should look carefully at the concept of information transparency and its
relevant items.
3. Online marketers should provide sufficient privacy policy statements in a
prominent place on the website.
4. Privacy policy should include information about what kind of information the
company is collecting in the databases, how long they keep this information etc.
5. Managers should also consider using multiple strategies to suit various audiences
with different levels of privacy concerns.
6. The company could offer assessments of risk in clear and simple terms, provide
evidence of past performance in terms of security and predictability, include
indicators of credentials or competence, and display customer feedback and/or
testimonials.
7. It is important to offer easy ways to give control to users, which increases the
likelihood that the individual will provide the information needed for
personalization.
8. It is suggested to improve and develop the legal and other measures to protect the
consumers privacy
 CHAPTER-7

BIBLOGRAPHY
 BIBLOGRAPHY

WEBSITES:-
www.eretailing.com
www.investopedia.com
www.techopedia.com
www.maaniecnology.com
www.wikipedia.com

JOURNALS:-

1. Brown, Muchira (2004). Investigating the Relationship between Internet Privacy

Concerns and Online Purchase Behavior, Journal of Electronic Commerce
Researcs, Volume 5, Issue 1, Pt. 62-70

2. Peterson, R.A., Balasubramanian, S. and Bronnenberg, B.J. (1997), Exploring

the Implications of the Internet for Consumer Marketing, Journal of the
Academy of Marketing Science, Vol. 25, No. 4, pt. 329-46.

3. Sheehan, K. B., & Hoy, M. G. (1999). Flaming, Complaining, Abstaining: How

online users respond to privacy concerns. Journal of Advertising, 28 (Fall), pt.
3751.

4. Garbarino, E., Johnson, M., 1999. The different roles of satisfaction, trust and
commitment in customer relations, Journal of Marketing, Vol 63 (2), pt 7087.

5. Cheung, C.M.K., Lee, M.K.O., 2001. Trust in internet shopping: instrument

development and validation through classical and modern approaches, Journal
of Global Information Management, vol 9 (3), pt. 2346.
NEWSPAPERS:-
1. The times of India
2. Economic times

BOOKS:-
1. Savino, William M., Protecting Online Privacy, Marketing Management, Vol.
11, No. : 49-51, 2002