E-retail to become Rs. 7,200 crore industry by 2015 | SupportBiz

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E-retail to become Rs. 7,200 crore industry by 2015

 
The industry came together at the E-retail Congress 2013 to understand the buying behaviour of the new-age consumer, and to formulate a new order retail distribution framework.

The  conference also opened up a new  dimension for   existing e-retailers, some of them the industry’s most influential business leaders and decision makers, and led them to challenge current thinking.  Latest innovations in the retail industry were also unveiled at the conference.

The event also witnessed the launch of e-Retail report 2013, which highlighted  some concrete  facts about the e-retail industry. One of the most important highlights of the report was that Indian e-retail is surging ahead at the rate of 40%  per annum, and the industry will reach the size of Rs. 7,200 crore  by 2015.

Param Parmeshwaram, Chairman,  Sulekha.com, shared his viewpoints on the status of e-commerce in India, saying, “The definition of e-commerce is very broad.   On the online platform, the availability of products, pricing, and several other things need to  be integrated  in the best possible manner. Advertising alone cannot make any product successful. It can only act as a catalyst for getting more success  among the consumers. Negative publicity has a strong, viral effect. This cannot be ignored, and any negative expression on an online platform has to be handled very carefully. There must be a well-defined policy to react  to any such development.”

Sulekha has 1,50,000  merchants listed on its online platform,   a majority of them representing micro and small-sized business.

Emphasizing on offering convenience to the online consumer, Manu Kumar Jain, Founder  and MD, jabong.com, said, “In metros and big cities, online retail is redefining  retail habits, providing flexibility and convenience.  However, in Tier 2  and Tier 3 cities, it has offered accessibility to  customers who have  purchasing power and aspiration  to buy  lifestyle brands, but do not have access to such brands. Ultimately, e-commerce is all about providing convenience to the customers and simplifying their lives.”

'Indian e-commerce has taken  very good shape, and we are witnessing great customer traction. Overall, the industry is going through a consolidation phase, which is building up and improvising the whole eco-system. I am glad to see that Franchise India has taken up  this initiative to bring  all the stakeholders together to define the future," said Atrash Aman, COO,  homeshop18.com.

“Indian retailers are moving to the omni-channel, which represents  a seamless customer experience across all available shopping channels, using a combination of mobile and social networks, brick-and mortar and online portal and whatever innovative channel one can integrate into the mix. A survey of around 500 people in India  revealed that 24%  of Indians  shop online once a month, and the product which is the most picked  by them is apparel.”

Gaurav Myra, Chairman,  Franchise India, said,“An average Indian is spending between Rs. 500  and Rs. 2,000 in one go on online retail. This  is considered to be the appropriate price range to take the advantage of free shipping, coupons and deals available. The maximum online buying is that of apparel, which accounts for 17%  of the online market.”

Accessories have emerged as the second biggest product category, with 15%  market share. The other categories which are doing well are consumer durables with 13%,  books with 12%,  jewellery with 11%,  footwear with 10%,  beauty and healthcare products with 8%,  home  and furnishing products with 7%, and gifts  and flowers with 5%.