A PROJECT REPORT ON

“IMPACT OF E-COMMERCE ON SALES OF

CONSUMER ELECTRONICS IN INDIA”

SUBMITTED BY
VEDANT CHINTA
UID: 174008
TYBMS SEMESTER V (CMS 0509)

PROJECT GUIDE
Ms. SONI GEORGE THARAKAN

ST. XAVIER’S COLLEGE (AUTONOMOUS)

5, MAHAPALIKA MARG,
MUMBAI, MAHARASHTRA, 400001

1
 CERTIFICATE

This is to certify that, Mr. Vedant Chinta , a third-year student of

Bachelor of Management Studies of St. Xavier’s College
(Autonomous) – Mumbai, has completed the project on ‘The impact
of e-commerce on sales of consumer electronics in India’ submitted
during the academic year 2019-20.

__________________ _________________ _________________

Prof. Soni G Tharakan Prof. Rajendra Shinde External Examiner
Project Guide Principal

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DECLARATION

I hereby declare that this project titles, “The impact of e-commerce on sales
of consumer electronic in India” submitted by me to the department of
Management Studies of St. Xavier’s College - Autonomous, Mumbai is an
authentic record of the work undertaken by me completed during the academic
year 2019 - 2020. All information in this report has been obtained and
presented in accordance with the academic rules and is authentic to the best of
my knowledge.
This project has so far not been submitted to any university or institution for
the award of any degree of fellowship and has not been published anytime
before.

Vedant Chinta
TYBMS
UID: 174008

3
ACKNOWLEDGMENT

I would like to express deep gratitude to Professor Soni George, Head of

BMS Department, St. Xavier‘s College, my research supervisor and guide, for
her patient guidance, enthusiastic encouragement and useful critiques of this
research work.
I would also like to extend thanks to all the respondents of this study for
patiently filling in the questionnaire with their valuable inputs.
Finally, I wish to thank my parents and my friends for their support and
encouragement throughout the study.

Table of Contents

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DECLARATION..............................................................................................................3
EXECUTIVE SUMMARY.................................................................................................6
RESEARCH METHODOLGY............................................................................................7
INTRODUCTION..........................................................................................................10
FIGURES & FACTS OF E-COMMERCE..........................................................................12
The Three S's of Ecommerce......................................................................................15
ADVANTAGES OF ONLINE SHOPPING........................................................................15
DRAWBACKS OF ONLINE SHOPPING..........................................................................16
ELECTRONICS INDUSTRY............................................................................................17
GLOBAL MARKET...................................................................................................17
ELECTRONIC SECTOR IN INDIA.....................................................................21
IMPACT OF ONLINE ELECTRONIC SECTOR ON INDIAN ECONOMY.............................24
GOVERNMENT INITIATIVES TOWARDS ELECTRONIC SECTOR....................................26
4 P’s OF MARKETING USED BY E-COMMERCE PLATFORMS PROVIDING ELECTRONICS.
...................................................................................................................................27
THE FACTORS THAT INFLUENCES CONSUMER TO PURCHASE ELECTRONIC GOODS
ONLINE.......................................................................................................................28
PROBLEMS FACED BY ONLINE CONSUMERS IN ELECTRONICS SECTOR......................30
CASE STUDY – Amazon’s focus on online sales for consumer electronics.................32
PRIMARY RESEARCH..................................................................................................36
UNIVARIATE ANALYSIS -................................................................................36
MAJOR FINDINGS.......................................................................................................49
LIMITATIONS..............................................................................................................51
CONCLUSIONS............................................................................................................52
REFERRENCES ……………………………………………………………………53
APPENDIX………………………………………………………………………….54

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EXECUTIVE SUMMARY
This research aims to study an overview of the E-commerce sector in India
and to provide accurate statistics of this sector.
Further this paper also provides quite an information on the three S’s of e-
commerce and the advantages and disadvantages of doing online shopping.
This paper aims to provide market analysis of Electronic sector globally and
the presence of it in India by offering insights of this industry and its products.
The study focuses on the online shopping of electronic goods and its impact
on the Indian economy followed by the measures taken by the government in
order to boost this sector.
This paper also shed light on the 4Ps of Marketing Mix- Product, Promotion,
Price and Place and how it is utilised as a marketing tool by the e-commerce
platforms providing electronic gadgets.
It mitigates the problems faced by online consumers while purchasing e-
gadgets online comprising of lack of information on the product sheets,
unnecessary number of requirements while ordering, delayed deliveries, slow
working of website and bad policies for return of the product.
It includes a case study on how Amazon being an e-commerce company works
online and process in order to earn money through e-commerce business.
This research aims to study the consumer perception in the case of electronics
products among the age group of 15 – 40+ in the Mumbai.The tools of
analysis for this study were usage of Univariate Summary Tables to give an
overview of the responses from the questionnaire.
Results of the analysed study state that out of the surveyed respondents,
around 28.6% % tend to purchase e-gadgets online only once in a year
followed by 27.1% to purchase only once in 3 months and equal percentage to
purchase once in 6 months.
Out of the total responses it was observed that Consumer electronics were
ranked 1st by the respondents being the most preferred category of electronic
while purchasing online. Further, small gadgets like headsets, pen drive etc
were given 2nd preference.

The study contains some constraints that include a limited sample size, that is,
only 70 respondents were surveyed for the study. The survey does not
manifest an equal number of representation of both the genders and that there
are 38 Male respondents while there are 32 female respondents.

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There can be non-authenticity of the responses recorded in the responses given
by the respondents since they were not self-monitored by the researcher as the
questionnaires were circulated through Google Forms

RESEARCH METHODOLGY

This research aims to collect detailed information about the perception of

consumers on grounds of age group, annual income and gender that is used to
formulate towards online purchasing of electronic products. It is an
undertaking in this research paper to make an experimental study by
evaluating and critically examining the significant statistical collection from
primary and associated information from secondary sources. The purpose of
the study is to explore the approach of males and females towards purchasing
electronic products on e-commerce platforms. Differences in the respondents‘
attitudes and buying behaviours based on their gender while purchasing varied
categories of products through online mediums will also be explained in the
study.
The research design of the research study is definitive and analytical research.
Definitive research is a fact-finding examination. Definitive research helps in
defining the characteristics of an individual, situation, age group describing
the state of interest. In this research paper, the aim is to understand the
perception of consumer towards online purchasing of electronic items from
different online mediums. For the research study the sample size is 100.
Selection of it was made based on accessibility sampling, but sample selection
was established on random basis. Primary data is the material about the results
of the examination. A questionnaire is a set of questions framed in order to
obtain information from the respondents.

RESEARCH OBJECTIVES
To carry out a market analysis on Indian e-commerce sector.
To carry out a quantitative study amongst consumers of both the genders -
males as well as females of ages between 15 to more than 40 in the Mumbai
locality with a sight to understand the e-commerce buying behaviour of
consumers for electronic goods.
To determine the factor influencing consumers attitude towards online
shopping.

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SAMPLING PLAN:
1. Characteristics Of Population:
- Extent: Mumbai Region
- Elements: Men and Women
- Time: October 2019 to November 2019
2. Target Group: Men and Women in the age group of 15 – 40+
3. Sample Size: 70 Respondents
4. Research Tool: Structured Questionnaire

SAMPLING METHOD:
Given the time and financial constraints, I chose Stratified Random Sampling
but with unequal number of representation from each age group. The initial
phase of data collection was qualitative. Its exploratory nature was intended to
provide descriptive information that would contribute to the development of
the study‘s quantitative part two. A total number of 70 men and women were
surveyed – 38 belonging to the gender male and 32 belonging to female.

SOURCES OF DATA
SECONDARY
Information from various sources was collected and were studied. Research
papers, articles and reports were referred to, thoroughly throughout the course
of this research study for the framework of the secondary report as well as to
better the study of the primary survey conducted for the purpose of this
research.
PRIMARY
The information has been collected straight from the respondents over a
structured questionnaire. Research was conducted by approaching men and
women from different age group and then examining their responses. The
questionnaire was created using secondary data collected through online
search of suitable website, article, journals and reports. The structured
questionnaires were piloted to assure proper draft in terms of data being
apprehend. Errors were identified and were immediately revised. Valid
opinions from the respondents were taken into deliberation.

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DATA COLLECTION AND ANALYSIS
After all the changes and corrections were made to the final questionnaire in
consultation with research mentor, the questionnaire was publicized to the
respondents over Google Forms. A few on-field alterations were made based
on the discretion of the researcher in order to avoid faults in the questionnaire
responses. The data was finally composed in MS Excel. From this data,
summary tables and code sheets were prepared.

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INTRODUCTION
The impact of e-commerce on shopping, business collaborations, procurement
and customer services is so climactic that most of the organizations are
affected. Online shopping is developing all businesses functional areas and the
significant tasks, right from advertising to pay bills. The essence of
competition is also intensely changing due to new companies providing
online, the diversity of e-commerce associated products and services and new
business models. E-commerce provides unprecedented opportunities for many
companies to grow worldwide at a limited cost, to boost the market share and
to lower the costs. In this research paper main focus is on the leading
applications of E-Commerce in the sector of e-gadgets and the issues
associated to its successful exertion and to its failures, and what services are
required for its support.
Also, this research paper will establish the impact of online shopping on
numerous functional areas of organizations. Online purchasing is buying and
selling of the goods and services or transferring data or funds over an
electronic network, mainly on the internet. These transactions in businesses
occur business-to-business (B2B), business-to consumer (B2C), consumer-to-
consumer(C2C) or consumer-to-business (C2B). The perks of Online
Shopping for electronics comprises it’s around the clock availability, a wider
selection of goods, speed of access, accessibility and global reach. Its
anticipated downsides include sometimes the limited customer service and not
being able to touch or see a product prior to its purchase, and the required wait
time for product shipping.
The research paper aims to merge the key themes that have mounted from the
new areas of e-commerce and to deliver an understanding of its importance
and application to management. The internet is being advanced rapidly since
past two decades with a pertinent digital economy that is been driven by
information technology as well being developed worldwide. Firms try to
promote enhance pictures of products and services through their website.
Therefore, thorough product information and better quality service attract
more and more people to change their consumer behaviour to rely more on
online shopping for electronics from the traditional mode. On the other hand,
many companies have realized that the transformation of consumer behaviour
is an unavoidable trend, and thus improve their marketing strategy.
Recent research’s have indicated that the online shopping particularly in
(B2C) business to consumer has risen and has become more popular to several
people. There are numerous reasons for such a rapid developing of online

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shopping which are mainly due to the benefits that are provided by the
internet. First of all, online shopping offers a different kind of convenience to
the consumers. Obviously, consumers are not require to go out looking for the
product/ goods information as the internet helps them to search from online
sites, as well as it also helps to evaluate between each site in order to get the
cheapest price for product. Furthermore, the internet can enrich consumer user
products more efficiently and effectively than other channels to satisfy the
needs of the consumer.
Due to the developed internet technology, internet payment recently has
become the prevalent way of purchasing goods from the e-commerce
platforms. Internet payment increases consumptive efficiency and at the same
time its virtual property reduces internet security. Even online shopping has
been rapidly developed in the consumer goods industry, but there is still a
huge difference between traditional shopping and online consumer shopping.
Referred to sales in the consumer goods industry in India , the online sales
engaged at a very low percentage rate, which could be caused by many
reasons although the most important is that the advantages exist in both-
traditional shops and online market both of them having specific
characteristics. For example, the traditional shopkeeper can provide
convenience in parking and shopping and also it allows customers to come
read and check the quality of electronic goods before the purchase and the
after sales service is more directly to customers. However, the traditional
mode has a limited number of goods in store and the selling cost is most of the
times higher than an online store. By comparison, we can figure out that
limitations of the traditional stores are more likely as the advantages of an
online store whereas in contrast, the weakness of an online store seems to be
an advantage for a traditional store. The expansions of the usage by every
individual has become main contributors to the development of e-commerce
shopping.
The role of electronic-commerce has bought a revolution in recent times. The
internet era majorly contributes to the development of e-commerce as now a
days thousands of companies are offering goods and services online. Earlier
people did shopping for gadgets only when there was a necessity or some
function. But in recent times, internet shopping has made place in the life of
people. Shopping which was earlier based on needs is now shifted to mood
based. Market experts predicts that e-commerce is showing the growth in all
the commerce pie and is also expected to increase in near future. As now
shopping is so handy that just an application away purchase of product can be
done. As things are turning so much convenient, it becomes important to
understand the perception of the customer while he/she is making a purchase
online.

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FIGURES & FACTS OF E-COMMERCE

The e-commerce has transformed the way business is done in India. The
Indian e-commerce market is expected to grow to US$ 200 billion by 2026
from US$ 38.5 billion as of 2017. Much growth of the industry has been
triggered by increasing internet and smartphone penetration. The ongoing
digital transformation in the country is expected to increase India’s total
internet user base to 829 million by 2021 from 604.21 million as of December
2018.  India’s internet economy is expected to double from US$125 billion as
of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.
India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017
to US$ 120 billion in 2020, growing at an annual rate of 51 per cent, the
highest in the world.

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Market Size
Propelled by rising smartphone penetration, the launch of 4G networks and
increasing consumer wealth, the Indian e-commerce market is expected to
grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017 Online retail
sales in India are expected to grow by 31 per cent to touch US$ 32.70 billion
in 2018, led by Flipkart, Amazon India and Paytm Mall.
During 2018, electronics is currently the biggest contributor to online retail
sales in India with a share of 48 per cent, followed closely by apparel at 29 per
cent.

Investments/ Developments
Some of the major developments in the Indian e-commerce sector are as
follows:

 Flipkart, after getting acquired by Walmart for US$ 16 billion, is

expected to launch more offline retail stores in India to promote private
labels in segments such as fashion and electronics. In September 2018,
Flipkart acquired Israel based analytics start-up Upstream Commerce
that will help the firm to price and position its products in an efficient
way.
 Paytm has launched its bank - Paytm Payment Bank. Paytm bank is
India's first bank with zero charges on online transactions, no
minimum balance requirement and free virtual debit card
 Google is also planning to enter into the E-commerce space soon and
India is expected to be its first market.
 Reliance retail is going to launch online retail. It has already launched
its food and grocery app for beta testing among its employees.

13
  E-commerce industry in India witnessed 21 private equity and venture
capital deals worth US$ 2.1 billion in 2017 and 40 deals worth US$
1,129 million in the first half of 2018.
 Google and Tata Trust have collaborated for the project ‘Internet
Saathi’ to improve internet penetration among rural women in India.

Government initiatives
Since 2014, the Government of India has announced various initiatives
namely, Digital India, Make in India, Start-up India, Skill India and
Innovation Fund. The timely and effective implementation of such programs
will likely support the e-commerce growth in the country. Some of the major
initiatives taken by the government to promote the e-commerce sector in India
are as follows:

 In order to increase the participation of foreign players in the e-

commerce field, the Indian Government hiked the limit of foreign
direct investment (FDI) in the E-commerce marketplace model for up
to 100 per cent (in B2B models).
 The heavy investment of Government of India in rolling out the fibre
network for 5G will help boost ecommerce in India
 In the Union Budget of 2018-19, government has allocated Rs 8,000
crore (US$ 1.24 billion) to BharatNet Project, to provide broadband
services to 150,000 gram panchayats
 As of August 2018, the government is working on the second draft of
e-commerce policy, incorporating inputs from various industry
stakeholders.

Achievements
Following are the achievements of the government in the past four years:

 Under the Digital India movement, government launched various

initiatives like Udaan, Umang, Start-up India Portal etc.
 Under the project ‘Internet Saathi’, the government has influenced over
16 million women in India and reached 166,000 villages
 Udaan, a B2B online trade platform that connect small and medium
size manufacturers and wholesalers with online retailers and also
provide them logistics, payments and technology support, has sellers in
over 80 cities of India and delivers to over 500 cities.
 According to the UN’s eGovernance index, India has jumped 11
positions to 107 in 2016 from 2018 in 2014.
 The government introduced Bharat Interface for Money (BHIM), a
simple mobile based platform for digital payments.

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The e-commerce industry been directly impacting the micro, small & medium
enterprises (MSME) in India by providing means of financing, technology and
training and has a favourable cascading effect on other industries as well. The
Indian e-commerce industry has been on an upward growth trajectory and is
expected to surpass the US to become the second largest e-commerce market
in the world by 2034.  Technology enabled innovations like digital payments,
hyper-local logistics, analytics driven customer engagement and digital
advertisements will likely support the growth in the sector. The growth in e-
commerce sector will also boost employment, increase revenues from export,
increase tax collection by ex-chequers, and provide better products and
services to customers in the long-term.

The Three S's of Ecommerce

1. Storage Space:

Some Ecommerce site builders put a cap on your sales, so choosing

one offers you the inventory space and bandwidth to fit your needs.
The best Ecommerce platform will let your online shop sell online
without limitations.

2. Safety Protocols:

Choose a program that offers fraud protection and Secure Socket Layer
(SSL) encryption. This is for the protection of you and your customers.
SSL technology makes it possible to send online payments securely
and is a must-have on all Ecommerce sites.

3. Site Design:

Your Ecommerce solution should have a user-friendly interface. The

best Ecommerce sites and functions of each tool should be clear and it
should be easy to select your desired options. Also, remember the
needs of your customers. Imagine that you're shopping your own
online store. Well-designed menus, filters, and sorting options will
minimize the amount of time it takes to find a product and purchase it.
Consider also the "look" of your site. Many Ecommerce site builders
offer professionally-designed templates that are both pleasing to the
eye and can improve a customer's overall shopping experience. Just
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 like in a physical store, a cluttered and disorganized e shop display will
leave customers frustrated and empty-handed, whereas a streamlined
and enjoyable buying process will encourage purchasing.

Advantages of online shopping: -

 Online shops give us the opportunity to shop 24/7, and also reward
us with a no pollution shopping experience.
 Cheap deal and better prices are available online, because products
come to you direct from the manufacturer or seller without
middleman being involved.
 You can shop from retailers in other parts of the country, or even
the world, all without being limited by geography. The choices
online are amazing.
 Many times, when we opt for conventional shopping, we tend to
spend a lot more than planned. There are other outside expenses on
things like eating out, transportation, and let's not forget impulse
buys. So there are less expenditure incurred in online shopping.
 Comparing and researching products and their prices is so much
easier online.
 No crowd is their when you prefer to do shop online.

Drawbacks of online shopping:-

 If an item comes damaged or not as described, you will want to

return the item or be refunded your money. Depending on where
you purchased your item, there can be different policies for refunds
and returns;
 Unlike buying at retail stores, you are able to use the product
instantly after you buy it, which can be satisfying. However, online
shopping requires patience to wait for the item to arrive at your
door step about 2 to 3 days or even longer depending on the
location you've ordered it from.
 Lack of touch-feel-try creates concerns over the quality of the
product on offer.
 Customers have to be careful in revealing their personal
information. Some of the e-retailers are unreliable.

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ELECTRONICS INDUSTRY

GLOBAL MARKET:

REVENUE

Globally, revenue in Electronics segments amounts to US $340,194m in 2019

and is expected to reach at $528,559 by 2023.

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USERS

In this Electronics sector, the number of users is expected to amount to

2,668.4m by 2023.

ARPU

The average revenue per user (ARPU) in the electronic segment amounts to
US $194.28 in 2019 and is estimated to reach US $198.08 by 2023.

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SALES CHANNELS

In the Electronics Segment, currently 33% of the total market revenue in this
sector is generated through online and 47% of total market revenue will be
generated through online sales by 2023

USERS BY AGE

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In the year 2019 a share of 34.7% of users of consumer electronics is 25-34
years old.

USERS BY GENDER

In the year 2019 a share of 66.0% of users is male and 34.0% of users is
female.

USERS BY INCOME

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In the year 2019, a share of 37.4% of users of electronics is in the low income
group, 33.3% of users in medium income group and 29.3% of users in high
income group.

ELECTRONIC SECTOR IN INDIA

Industry Insights-

The India consumer electronics market size was worth USD 32.5 billion in
2016 and is expected to grow further over the forecast period. India provides a
worldwide opportunity for short to medium-term growth in consumer
electronics spending. Minimal penetration rates, as against other upcoming
markets, portray a better prospect to sell to first-time buying households, along
with replacement devices to the middle class.

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Growth in the India consumer electronics market can be attributed to increases
in demand from households, changing lifestyles of individuals, easier access to
credit, and rising disposable incomes. Intentional reduction by the
Government in the import bill, coupled with government and corporate
spending is anticipated to complement the positive demand in this market. The
India consumer electronics sector has attracted several strong investments in
the form of merger & acquisition policies practiced by key participants of the
global market and other FDI inflows.
As per the Make in India initiative, Electronic Development Fund Policy has
been approved, with the intention of rationalizing a transposed duty structure.
Another effort, such as the Modified Special Incentive Package Scheme (M-
SIPS) has been introduced to provide a capex subsidy of nearly 15 – 20
percent. Consumer electronics manufacturers are set to elevate investments in
production, distribution, and R&D in the next few years. With rising presence
of organized retail, the market has experienced the emergence of modern,
durable retail chains, which include e-retailers such as E Zone, Reliance
Digital, Tata Croma, etc.
High production in the Indian electronics market can be attributed to paced up
demand for advanced computers, mobile phones, TVs, and defence -related
electronics. The situation in this market mandates manufacturers to keep
themselves updated with the latest technology, since it is eye-catching to
typical consumers, and technological features play an apex role while selling
to higher-income classes. The consumer electronics sector has witnessed the
highest share in the total production of electronic goods in India.
Under the Union Budget for the financial year 2017, the government exempted
certain components and parts, subparts for the production of set-top boxes for
TV and internet and broadband modems. The introduction of artificial

22
intelligence (AI) is set to project a bright future for the consumer, as well as
industrial electronics in India.
India is likely to emerge as a potential future manufacturing hub for the
region, provided the government shows adequate support and focus towards
this sector. Specific factors anticipated to push the manufacturing in India are
inclusive of, reduction in borrowing costs, export incentives, reduction of
customs duties on raw materials and components, and improvement in the ease
of doing business.

Product Insights
The increasing per capita income, burgeoning middle class and increasing
standard of living in the country is catering to a rise in demand for television
sets. Promotion and advertisement activities carried out by leading industry
participants such as Samsung has positively augmented the market growth,
and this trend is expected to continue over the forecast period.
Cable digitalization is also expected to cater to a rise in demand for televisions
in India. Platforms for special interests, local channels in regional languages,
as well as capacity to support a wide range of channels due to digitalization of
cable network has spurred a rise in demand for televisions. Also, the
introduction of novel TV sets by key industry participants such as Sony and
Samsung are expected to contribute to an overall rise in demand for televisions
over the forecast period.
Rapid urbanization coupled with increasing disposable income in the country
has contributed to a rise in demand for refrigerators. Due to the versatile and
advanced refrigerators available in the market, the Indian consumers are
replacing their existing and old refrigerators with new ones. In addition to this
scenario, refrigerator selling retailers are adopting competitive strategies such
as teaming up with financial institutes to provide easy financing options to sell
their products. Such trends are expected to favour market growth over the
forecast period.
The Indian refrigeration industry is characterized by increasing supply, novel
product launches and regulatory support from the government. Companies
adopt competitive pricing techniques to gain market share. The increasing
penetration of refrigerators in rural areas is a key industry scenario.
Set-top boxes are used in connection with television sets. The set top box is
used to translate the signal received from satellites and to further convert it to
television content. India witnessed a rapid shift from analogue signals to a set-
top box in the recent past owing to the superior benefits of the set-top box as
well as government policies. This rapid change towards set-top box is
expected to continue over the forecast period.

23
Set-top boxes offer inherent benefits such as better clarity of picture, ability to
display a large number of channels, digital video recording as well as video on
demand. The government of India issued regulations aimed at digitalization of
the entire cable TV network in the country. These inherent advantages coupled
with the rising sales of television sets in the country has benefitted the set-top
box demand in the country.

IMPACT OF ONLINE ELECTRONIC SECTOR ON INDIAN

ECONOMY

Along with strong Gross Domestic Product (GDP) growth, approximately one
sixth of the world's population and a growing per capita income, India has
been on the forefront of consumer demand. While demand has been increasing
across all sectors, the demand for electronic products has registered significant
growth in the last decade. The domestic Indian market for electronic products
is estimated to be USD 64 billion in Financial Year (FY) 2015-16.

The total electronics equipment production of India in 2015 was estimated at

USD 1,861 trillion. Over the years, production bases have shifted from the US
and the European Union (EU) to Asia, whose share in global production has

24
increased to over 60%. However, India only represents 1.5% of the world's
electronic hardware production.

In its current state, the major issue plaguing the Indian electronics hardware
industry is that approximately 58% of the local demand for electronic products
and components are being fulfilled by imports. Even amongst the items which
are domestically manufactured, local value addition is very small. This
discrepancy is mainly caused due to the inverted duty structure on hardware
for electronics, the nascent components ecosystem in India, the high-cost of
finance, infrastructure deficiency and proximity to developed production
countries such as China, Taiwan, etc.

However, the Indian government has recently realised the potential of the
electronics industry in terms of its importance to GDP growth and providing
employment. The National Policy on Electronics (NPE), Make in India and
Digital India are significant steps towards supporting the manufacture of
electronics hardware in India.

The NPE proposes the set-up of over 200 electronic manufacturing clusters.
The government has showed its strong intention towards achieving zero
dependency on imports for meeting the electronics hardware demand through
policies such as Modified Special Incentive Package Scheme (M-SIPS),
Electronics Development Fund (EDF), Preferential Market Access (PMA),
etc. These initiatives will facilitate growth in local manufacturing of
electronics hardware over the coming years.

Electronic hardware production in India has grown to approximately USD 33

billion in FY 2015-16 while simultaneously, imports have increased
considerably to USD 37 billion. India also exported electronic goods
amounting to USD 6 billion. With favourable demand side conditions, the
Indian market is poised to grow considerably within the next 5-10 years.
Realising its potential for economic growth, the Government of India (GOI)
had given a high priority to the manufacturing of electronics and IT hardware
which has the potential to generate domestic wealth and employment apart
from enabling a cyber-secure ecosystem. In the past, efforts such as 100%
Foreign Direct Investment (FDI) permitted under the automatic route, no
industrial license requirement, payment of technical know-how fees and
royalty for technology transfers have facilitated the rapid growth of the
electronics hardware manufacturing sector.

However, these efforts have not led to a substantial impact; partly because
India is a signatory to the Information Technology Agreement (ITA-1) which
has resulted in a zero duty regime on the import of goods covered under the
agreement. India has also executed Free Trade Agreements (FTAs) and

25
Preferential Trade Agreements (PTA) with several countries/trading blocks
which enabled the zero duty import of items not covered under the ITA. Other
hampering factors include the lack of reliable power, high cost of finance,
poor logistics and infrastructure, weak component manufacturing bases, lack
of targeted and proactive R&D in collaboration with the industry, etc.
However, with the advent of NPE, Make in India, Digital India and other
initiatives, the GOI has shown its intent towards facilitating electronic
manufacturing in India.

GOVERNMENT INITIATIVES TOWARDS ELECTRONIC

SECTOR

Indian electronics and technology sector has a potential to contribute no less

than a fourth or 25% to India’s GDP, with $1 trillion of opportunity in next
five to seven years that include $400 billion of hardware, $350 billion of
software and $250 billion of telecom and Internet of Things. These sector
could potentially contribute 25% of India’s GDP.

26
The government, as a part of ambitious Make in India initiative has facilitated
establishment of 159 electronics systems design and manufacturing (ESDM)
production units in the country last year.

It is the easiest time in Indian history to start and grow a company in India and
the government is keen on involving electronics systems design and
manufacturing (ESDM) sector in order to spur the ecosystem.

The mega Digital India scheme, will provide more impetus to the electronics

sector in the country. Digital India, with an initial outlay of Rs 1.13 lakh crore,
aims to create a connected and empowered economy with 100% tele density,
broadband for all, public Internet access program and electronic delivery of all
government services to all citizens dubbed as e-Kranti.

DeitY data reveals that 50 mobile manufacturing units have been setup in the
last 10 months with 9 million mobile phones per month production capacity
and 20,000 new jobs have been created.

The government has also set up Electronic Development Fund (EDF) and
Innovation Fund (IF) to help accelerate electronics manufacturing and spur
innovations in the country.

EDF is managed by Canara Bank Venture Fund, while IF is managed by

SIDBI.
The government has already allowed 100% FDI in medical electronics, 49%
FDI in defence (higher on a case-to-case basis) to bring momentum in
indigenous electronics manufacturing. Investment in the electronics
manufacturing sector has jumped to over six-fold to reach Rs 1.14 lakh crore
in 2015, and this reinforced the need for initiating dialogues to seize the$400
billion ‘Make in India’ opportunity.

4 P’s OF MARKETING USED BY E-COMMERCE

PLATFORMS PROVIDING ELECTRONICS.

Product:
The internet leads to faster discovery of customer needs, greater
customization of the products to the customer needs, faster product testing,
and shorter product life cycles.

27
Providing complete and relevant product information about the electronic
goods is crucial in order for the customers to get a realistic picture of the
product and to make the product offered more attractive.

Price:
Price is the most flexible element since it can be adapted quickly to the
market‘s demand. The price of the electronic appliances on the internet has
become very competitive. There are two reasons for that: one is price
transparency on the internet as it is much quicker and easier to compare
prices by visiting company‘s websites or by using price comparison sites.
The other reason is the ability to reduce costs such as store space and
employee costs. The online payment that uses mostly debit cards is seen as
an efficient, convenient and flexible payment method for both companies and
customers while purchasing

Place:
The place element of the marketing mix traditionally refers to where
these e-gadgets are distributed to customers. It is been said that the internet
has the greatest implications for place in the marketing mix because it
has a large market place.
Companies gain advantage of the low cost of advertising internationally
without the necessity of a supporting sales infrastructure in different countries.

Promotion:
The promotion element of the marketing mix refers to how marketing
communications
are used to inform customers about the organization and its electronic
products. By using promotional tools on the internet such as online offers,
frequently updated information
and direct e-mail reminders, companies can encourage customers to visit their
sites.

The Factors that Influences Consumer To

purchase electronic goods Online

Customer perception and customer behaviour helps us to understand the

challenges faced by the marketers in comprehending the consumer mind.
What exactly goes in the mind of the customer and what are the processes in

28
the mind of consumer that influences him or her in buying different products
or services. It aims to investigate factor that influence the intention of
customers while buying electronics online. Along with the development of e-
commerce, there is an extreme increase in the competition between different e-
commerce sites to attract customers and become the market leader. In order to
become the market leader, it is important to know how consumers make their
choice decision and therefore, try to gather insights about the inner psychology
and various factors that influence this process.
It implies the attitude towards buying consumer electronics online, subjective
norm, perceived behavioural control, attitude toward using online stores when
buying electronics online, and cultural environment of trust influence intention
to buy electronics in an online store. It is believed that consumer perceives
Flipkart and Amazon in their own way and take decisions based on their
perception rather than objective reality.

5.1. Product Information

The product information in case of any of the other standardized product states
or provides the knowledge about the product and also to promote the product
which is the most primary driver for consumers to purchase online. As every
detailed knowledge about the e-gadgets is mentioned and informed to the
consumers about the proper usage, climatic conditions, side-effects etc it
influences consumers. Therefore, it plays an important role for the online
provider to provide adequate information and so as to determine the
acceptability of the product for usage by the consumers.

5.2. Online Payment

Online payment refers to money that is exchanged electronically. Typically,
this involves use of computer networks, the internet and digital stored value
systems. Online payment systems are e-commerce business allowing money
transfers to be made only through the Internet to provide a better alternative
for the online consumers They are functioned as fast and secure electronics
alternative to traditional methods as cheques and money orders. Thus
nowadays the online payment is a very big hit as all the merchants and
companies are turning towards the online shopping which is thus more
convenient to the consumers as well to the business.

5.3. Convenience
Online shopping has become an important part of many people's lives.
Students and parents rely on the internet to acquire e-gadgets at affordable
prices, virtual stores allow people to shop from the comfort of their homes
without the pressure of a salesperson, and online marketplaces provide a new
and more convenient venue for the exchange of virtually all types of goods
and services. One of the major reasons that many of the people turn to online

29
shopping as it due convenience in nature and as it saves lot of time and effort
as compared to the real time shopping.

5.4. Consumer Attitude

Consumers are individuals with likes and dislikes. When the preponderance of
people in a particular group feel one way or another about a product, service,
entity, person, place or thing, it is said to be a generalized consumer attitude
that could affect the marketing of that person, product or entity in positive or
negative ways. Marketers strive to influence consumer attitude and
understanding the prevailing attitude. As consumer attitude is taken into very
vital importance so as to know the changes required in the products with
reference to the consumers, the online shoppers feels even more motivated to
purchase electronic goods online as their needs are taken into consideration.

5.5. Easy Accessibility

The one of the major importance of online shopping in electronic sector is that
due to its easy accessibility in nature. Many of the consumers turn to online
shopping only because it is very easy to use and one can make online purchase
with the click of the mouse. Even though it is easy to use it also depends on
the good and fast internet connection as in the rural areas the online shopping
is yet to tarnish as there is lack of either power shortage or lack of
connectivity.

5.6. Flexibility
The online shopping as of now is catching up and many predicts that online
shopping will be the backbone of the business and services very soon. Every
now and than consumers are adapting the online shopping features for their
particular E-products and specially as it is flexible in the sense that it is being
monitored and the work is being carried in a very well structured format. The
introduction of various features in the concept of online shopping like that of
cash on delivery, door delivery, trial and money back etc are thus adding to the
context of the online shopping.

PROBLEMS FACED BY ONLINE CONSUMERS IN

ELECTRONICS SECTOR

The tragedy of e-commerce can be measured in percentage: 75.8% (almost 8

out of 10) of online shopping carts for electronic goods are abandoned without
the purchase being completed. Deficient checkout processes are often singled

30
out as the main cause, but many other problems faced by e-commerce
consumers could be behind it.

Slow load times, poor return policies, lack of customer warranties or absurd
requirements are among the problems that make online shopping of such e-
gadgets difficult. 

THE MAJOR 6 PROBLEMS FACED ARE-

Having an excellent product is no guarantee of excellence, and the best e-
commerce know it. The following selection of problems faced by online
consumers does not relate to the product, but to the service before, during and
after the purchase (after-sale):

1.SCARCE INFORMATION ON THE PRODUCT SHEETS

It doesn’t matter if an online electronic store has the best moccasins on the
market, if your product files contain poorly written text, poor quality images
or imprecise specifications, the consumer could back down and visit the
competition. Details make all the difference, so it’s important to take care of
your product files. Bad practices are just one of the many problems faced by
online consumers.

2.NONSENSICAL REQUIREMENTS FOR COMPLETING A

PURCHASE

Many of the online consumers abandon their shopping cart when they are
forced to create an account? This is just one of many requirements that should
not be imposed on first-time customers. Amazon, for example, reports the
advantages of registering on its platform, but in no case imposes registration
on its customers.

POOR LOGISTICS AND LONG DELIVERY TIMES

Another major challenge faced by shoppers while shopping online for
consumer electronic goods is logistics. Compared to the physical store
collection of traditional retailers, e-commerce must invest in delivery to
reduce this disadvantage. However, 23% of shoppers abandon their shopping
carts for shipping reasons, proving that they are not doing too well.
Long delivery times are a serious problem for B2C trade, although in
business-to-business it can be offset by the price or volume of products. While
certain e-commerce offer same day delivery, most remain stuck in deliveries
in 2-3 days. Consumers don’t like waiting.
The situation worsens when shipping costs exceed the final price of the
shopping cart.

31
SLOW LOADING TIMES
Amazon estimated in 2012 that every second of loading caused them to lose
1.6 billion dollars, which helps to understand why this platform is so fast
today.
Most consumers search for several minutes in a category before selecting one
or more products for purchase. If navigation is not smooth, users will end up
getting tired and leaving the site, leaving behind an abandoned shopping
cart. It is not surprising, then, that this is one of the problems faced by
ecommerce consumers.

INSECURITY FOR THE CONSUMER

Investment in cybersecurity is growing year on year, due to the increasing
number of threats to governments, companies, and businesses internationally.
Far from being oblivious to this problem, ecommerce is forced to exercise
extreme caution. The processing of purchases requires the sending of sensitive
consumer information, which must be protected.
Online customers are increasingly aware of the importance of security, and
therefore demand guarantees.

In addition to using seals of quality and trust, it is important that virtual stores
use security protocols SSL (Secured Socket Layer and comply with the
standards of Payment Card Industry Data Security Standard (PCI DSS),
among other measures.

BAD RETURN POLICIES OR LACK OF BUYER WARRANTIES

The quality of a product cannot be known until the consumer examines it with
his hands, which does not present difficulties in traditional retailers. But that is
not the case with ecommerce in electronics. Most consumers are used to this
difficulty and therefore expect to find certain guarantees.

CASE STUDY – Amazon’s focus on online sales for consumer

electronics

Amazon India has more than doubled its exclusive models for televisions,
refrigerators and washing machines in the up-coming festive sales to 70
models as compared to 31 models last year and starting cross-category buy

32
back schemes whereby consumers can exchange their smartphone for any
electronics in a strategy to overtake rival Flipkart in the Diwali sales.

Amazon India sale also focuses on no-cost EMI option which increases
affordability factor for consumers after it reported almost one-third of its sales
from this method in the last Independence Day sales in August.

Amazon is growing their television sales by 158% year-on- year, while home
appliances is growing at 400%. Amazon has set up 12 fulfilment centres
dedicated to these categories and open to set up more as regional demand
increases.Amazon and Flipkart will fight headlong for the festive sales with
both having their discount offers during such season. While Flipkart is already
running an advertising campaign for television and home appliances, Amazon
also started with its campaign.

There is huge potential for television and home appliances in online and is a
focus area for Amazon. This is due to India’s growing middle-class and the
fact that we have noticed a satisfied consumer electronics buyer tend to stick
to the platform.

Amazon is going to upload product description and unboxing videos of

consumer electronics to overcome the touch-and- feel barrier. It has set up its
own studio to shoot and upload product videos and also asking the brands to
provide their videos to demystify technical terms and demonstrate the product
online.

We are trying to get offline shoppers of consumer electronics to buy online by

overcoming all the barriers to become the largest e-commerce seller in these
segments.

Online sales accounts for around 10-12% of total television sales and 4-6% for
home appliances in India.

HOW AMAZON MAKES MONEY BEING AN E-COMMERCE

COMPANY.

Amazon is the ecommerce titan the industry has been waiting for. Net sales
have been rising since 2014. In 2016, Amazon grabbed 70% of the total sales,

33
and service sales have only been growing since then. For all those wondering
is ecommerce profitable, the answer lies in Amazon’s undeniable success, so
much as that the “Amazon Effect” has even entered the lexicon of industry
analysts.

In terms of operating income, growth has been driven by high margins from
service sales. Revenue sources, AWS services and Amazon Prime
subscriptions have been rising at phenomenal rates, too.

A revenue generation model is a critical component of the ecommerce

business plan. Anybody looking to understand how to start a successful
ecommerce business needs to understand that making money is the key to
thriving and not just surviving. The ecommerce business model unlocks value
and is the key driver of value. It makes all the difference between a unicorn
and a failed startup. Scaling up to a billion dollar value is a dream come true
for many ecommerce businesses. For understanding how to do ecommerce
businesses make money, business models offer further clarity.

Whether it’s through commissions, asset sales, subscription plans, ads, usage
fees, licensing and rent or lease, getting into the unicorn circle is not just about
following a model. Ecommerce businesses like Amazon don’t follow one
model. They follow many in a hybrid way, unlocking value in the long term.
Here’s what drives ecommerce money-making ventures:

1 Fixed Subscriptions
Registered sellers host products on the ecommerce platform for a fixed rate of
subscription. Fixed closing fees are also charged by the Amazon.
2 Commissions
Based on the product category, the company charges registered sellers certain
percentage commission based on the value of the product sold. This
commission generally ranges from 5 to 20%.
3 Logistics
Logistics and shipping are addition sources of revenue for Amazon. The other
ecommerce brands like Flipkart, Snapdeal, Myntra or even Jabong earn
delivery and shipping fees.
4 Deep Discounting
Justification for deep discounting of products for online retailer like Amazon
is that discounts are being offered, in turn, by the registered seller. The
benefits of deep discounting benefits Amazon and every other ecommerce
business from Flipkart to Snapdeal and Myntra. The ecommerce brands come

34
equipped with cutting-edge analytics capabilities and dedicated resources for
comparing prices of products across stores and websites. Based on the price-
linked research, registered sellers can then peg their price. Further, sellers get
compensated for discounts offered by Amazon, leading to a win-win outcome,
besides a level playing field for even the smallest ecommerce seller.
5 Finding the Right Niche
Before building their online stores, Amazon focused on what to sell and how
to source it. Finding a successful niche is the key to mastering the markets.
Keeping a finger on the social media pulse can make sure your ecommerce
business is way above competitors. Suggested products, reviews and YouTube
videos can prove to be valuable for researching which niches to concentrate
on.
6 Tapping Social Media
Once the store is up and running, all you need to know is spread the word. For
this, social media remains a powerful marketing tool. Amazon have their own
Facebook business page. Cashing in on Instagram influencers is another key to
successful ecommerce growth.
7 Targeting the Right Audience
Leading ecommerce retailer, Amazon have been targeting the right customers.
For example, if the business is selling fitness watches, the focus is on active
people who visit the gym regularly. If diet formulas are being sold, your target
is those trying to lose weight.
8 Reinvesting Profits
As the business scales and demand grows, reinvesting profits makes sense
which is carried out by Amazon. After all, ecommerce businesses will only
sustain the growth momentum if they put money back into the business to
cater to a new influx of customers.
9 Using Marketing Collateral To Drive Traffic
The hardest part of an ecommerce business is the generation of traffic,
whereby most online retailers rely on exceptional marketing collateral to cut
through the noise and build a powerful voice and brand narrative that
resonates with customers. An effective inbound marketing campaign drives
growth. Content marketing by Amazon focuses on the customer research
journey and addresses the client’s pain points.
10 Set Up Targeted Ads
Another way the company makes money vital to their long-term growth is
through targeted ads that aim for customers and profitable niches right from

35
the start. Using product specific ads has helped the company to grow.
Remarketing ads have also served as catalysts for the growth momentum.
11 Using Multichannel Product Distribution Methods
Ecommerce businesses need to be in more than one location online to propel
growth. Growing the ecommerce business commences with diversification,
backed by clear channels of distribution is the key. Amazon focuses on
optimizing and listing products on multiple channels thus dominating the e-
commerce business. They also have registered trademarks and warranty when
products are sold through authorized resellers. Clear distribution agreements
also are in place with retailers and distributors regarding what they can and
cannot sell including quality control, measures and anti-diversion. This has
remained an awesome strategy by Amazon for growing as a brand.

12 Automate Processes
The company’s ecommerce processes are automated hence faster and easier it
has been to grow for the business. Setting up systems can be time consuming,
but it’s well worth the effort. From order fulfilment to accounting and
marketing, automation can make a huge difference to efficiency, bottom lines
and profit margins for any ecommerce startup as it has been affecting the
Amazon’s profit sheet. For instance, sales data are automated from the
ecommerce cart onto accounting software. Email follow-ups are also
automated based on customer behaviour and profiles. The more automated
processes and systems are, the more ecommerce entrepreneurs can focus on
high value growth activities for their business.

13 Invest in Search Marketing

Organic reach notwithstanding, Amazon rank products as well. So online
retailers need to be clear on search marketing strategies relating to the store
and industry keywords. Software tools, case studies, reports, metrics and data
are equally essential.

PRIMARY RESEARCH

36
UNIVARIATE ANALYSIS -
GENDER SEGREGATION

Pie Chart 1.1

Out of total respondents of 70, 38 responses (54.3%) were formulated from

Male and 32 (45.7%) were received from Female.

AGE CATEGORIES

37
Pie Chart 1.2

Out of the total respondents, majority of responses received were from the age
group 20-24 with a number of 37 responses followed by 21 responses from
the age group 15-19. In the age group of 40+ responses received were 7
further receiving 3 responses from age group 35-39. Two of the age groups
25-29 and 30-34 received equal number of responses i.e 2.

ANNUAL INCOME OF THE FAMILY

38
Pie Chart 1.3

Pie chart 1.3 shows that responses varied among the different annual income
bracket. The first income bracket was selected by most number of responses
(20) followed by (16) which lied under the last income bracket of more than
20,00,000.

OCCUPATION

39
Pie Chart 1.4

Majoirty of the responses for this survey was dominated by students with a
total number of 52 followed by working individuals with 13 responses and
self-employed individuals with 5 responses.

FREQUENCY OF PURCHASE OF ELECTRONIC PRODUCTS

40
Pie Chart 1.5

Pie Chart 1.5 indicates 28.6% i.e 20 respondents tend to purchase e-gadgets
online only once in a year followed by 27.1% i.e 19 respondents tend to
purchase electronic products online only once in 3 months and equal number
of respondents i.e 19 also tend to purchase once in 6 months. While purchase
of electronics once in a month got 12 responses.

PREFERENCE OF PRODUCTS-

41
Figure 2.1

1 2 3 4 5 Average
Rank

Consumer 23 11 13 8 15 1
Electronics(Smartphones,
TV's, Laptop, Computer)

Small Gadgets 23 26 7 5 9 2
(Earphones, Cables, Pen
drive)

Kitchen Appliances 1 14 21 31 3 4
(Toaster, Microwave)

Grooming Accessories 14 18 21 14 3 3
(Trimmer, Hair
Straightener)

White Goods 11 1 7 12 39 5
(Refrigerator, Washing
Machine)

Out of the total responses preference to purchase electronic products online,

23 respondents gave the top most preference to consumer electronics such as

42
Smartphones, TV's, Laptop, Computer, etc which they ranked 1 st. Second
highest voted while ordering online was found to be Small gadgets like
Earphones, Cables, Pen drive, etc with 26 responses having an average rank as
2nd. Grooming accessories like Trimmer, Hair Straightener, etc being their 3rd
preference followed by Kitchen appliances like Toaster, Microwave as their
second last preference when it comes to ordering online. The least preference
was given to White goods which comprises of Refrigerator, Washing
Machine, etc.

AVERAGE EXPENSES ON ELECTRONIC GOODS EVERY 6 MONTHS-

Pie Chart 1.6

Out of total of 70 responses, 67.1% i.e 47 respondents agreed on a spent of

less than Rs 30,000 for electronic goods in every 6 months. Further, 18
respondents (25.7%) chose the bracket of Rs 30,000- Rs 50,000 as an average
spent semi-annually. The next two brackets were chosen by only 2
respondents each.

PREFERENCE OF PAYMENT

43
Pie Chart 1.7

Pie Chart 1.7 indicates (35.7%) 25 respondents prefer paying through Debit
cards for e-gadgets that they purchase online followed by usage of Credit card
for the payment as (28.6%) 20 responses chose this option. Cash on Delivery
had similar number of preference responses i.e 19 as Credit card. EMI was the
least option preferred when considering the payment process.

OCCASION OF PURCHASE-

Pie Chart 1.8

The answer to this question was dominated by No occasion with 51 responses

(72.9%) when it came on purchasing electronic product on e-commerce

44
platforms. The following occasion to influence consumers to buy online was
the period of Festivals which was responded by 18 individuals (25.7%). Only
individual (1.4%) happened to prefer to buy e-gadgets online for the purpose
of gifting.

FACTORS INFLUENCING DECISIONS OF ONLINE SHOPPING-

Figure 2.2

1 2 3 4 5 6 Average
Rank

Availability 18 20 11 8 9 4 2

45
 Offers 25 17 6 7 5 10 1

Convenienc 10 5 23 16 11 5 3
e of
Delivery

Product 6 11 13 27 9 4 4
Variety

Product 2 10 12 7 26 13 5
Replacemen
t and Refund

Less time 9 7 5 5 10 34 6
consumption

From figure 2.2 we can say that the factor that influenced the consumer’s
decision to go for online shopping of electronics was mainly due to the offers
that was provided to the customers and hence it was ranked 1 st as the factor
that influenced them with a total of 25 responses. Availability and
Convenience of Delivery were ranked 2nd and 3rd respectively as the factor that
influenced them after offers, the total responses were 20 and 23 respectively.
Further it was followed by Product Variety ranked 4th and Product
Replacement and Refund as 5th with a total of 27 and 26 respondents. The idea
of less time consumption was ranked the least.

MOST PROBLEM FACED DURING ONLINE SHOPPING-

46
Figure 2.3

1 2 3 4 5 Average
Rank

Delayed 26 9 12 8 15 1
Delivery

Product 10 18 14 16 12 2
Damage

Inadequate 9 16 25 17 3 3
quality of
product

Product 11 9 15 23 12 4
doesn’t
match the
description

Returning 14 18 4 6 28 5
of product

Out of the total respondents, the most faced problem that has occurred with the
consumers after purchasing electronic gadgets from e-commerce websites
were found to be delayed delivery which was ranked 1st by the respondents
with highest number of votes i.e 26. The second most problem faced after
delayed delivery was damaged product with 18 respondents agreeing to it.

47
Followed by inadequate quality of product and product not matching the
description were ranked 3rd and 4th respectively with 25 and 23 responses
respectively. The least faced problem according to the respondents was
returning of products.

CUSTOMER SATISFACTION FROM ONLINE SERVICE PROVIDED-

Pie Chart 1.9

From Pie chart 1.9, it is quite visible (77.1%) 54 of the respondents are
satisfied with the customer service provided by the online portals while
purchasing electronic goods and in contrast (22.9%) 16 respondents disagree
with the individuals who are satisfied.

SECURITY OF PURCHASING ONLINE

48
Pie Chart 1.10

Around 3/4th of the total responses felt secured doing online shopping of e-
gadgets which is a total of 53 respondents (75.7%). Whereas 1/4 th of the total
responses i.e 17 individuals didn’t feel secure purchasing online.

COMPLETE MOVE TO ONLINE SHOPPING PLATFORMS

Pie Chart 1.11

Out of 70 responses, 46 respondents would like to move completely from

conventional shops to online shopping of electronics (65.7%) and 24
respondents (34.3%) doesn’t want to completely change into online.

MAJOR FINDINGS
49
It was observed from the primary research that the frequency of the online
consumers to purchase e-gadgets lied under all three categories with equal
number of responses that were once in 3 months, once in 6 months and once in
a year.
Most of the respondents preferred buying Brown goods – Smartphones, TV’s
and small electronics gadgets like earphones, cables were preferred second by
consumers while doing online shopping. Online consumers prefer buying large
goods like refrigerators, washing machines the least.
Out of the total respondents, the expense bracket of less than Rs30,000 was
the most picked option as an average spent on electronic goods in every 6
months on e-commerce space followed by the next expense bracket of Rs
30,000- Rs 50,000.
Research paper respondents expressed equal preference towards Debit card,
credit card and Cash on Delivery as the payment mode while purchasing
electronics online and EMI was the least preferred as the product prices
weren’t as huge as the cost of white goods.
Consumers don’t wait for any occasion to come and then opt for online
shopping. They shop online as and when they think they require a particular
product. But 25% of the respondents preferred buying during the festive
season as they get to avail more offers.
The major reasons that influenced the consumers decisions to go for online
shopping were found to be the deep discounts and offers that these e-
commerce sites provide followed by the availability of the product most of the
times and then the convenience of delivery as consumers don’t need to go and
pick up for the order form a certain place.
It was observed that the respondents felt delayed deliveries were the major
problem that they face when purchasing online followed by the product
damage.
54 of the respondents out of 70 responses were satisfied with the customer
service provided by the online providers and also 3/4 th of the respondents felt
secured purchasing from these e-commerce sites.
Out of 70 responses, 46 of them were ready to move completely for the
purchase of electronics online and further move towards digitalisation.

The e-commerce market in India is expected to increase at CAGR of 20.09 %

from US $39 billion in the end of 2017 to US $200 billion by 2027. Out of the

50
total e-commerce retail segment, 48% of transactions is generated by the
electronics industry where in consumers prefer buying online.
In the year 2019, a share of 37.4% of users of electronics were from the low income
group, 33.3% of users from medium income group and 29.3% of users from high
income group.

The increasing per capita income, burgeoning middle class and increasing
standard of living in the Indian consumers is catering to a rise in demand for
television sets.

Rapid urbanization along with increasing disposable income in the country has
contributed to a rise in demand for refrigerators.

LIMITATIONS

51
Error due to non response by the respondent base. Selected respondents failed
to answer few questions.

Error due to random sampling, there was a failure of recording a proper

representation of all men and women across the Mumbai region.

An unequal representation of men and women was observed. The sample had
a higher representation of men than women.

An unequal representation of the age groups of men and women was observed.
The number of respondents in the 20- 24 age group is greater than the other
age groups.

Error due to non-authentic response due to misinterpretation of the question on

rank the most faced problem during online shopping, where respondents tried
to rate instead of rank.

Limited sample size of 70 respondents may not accurately represent the entire
male and female population of the Mumbai region.

CONCLUSIONS

52
With the changing dynamics of the societal families in the modern era, it is
necessary for e-commerce companies to understand the needs of their
customers and be able to target them in the right way, attract them into
purchasing the company’s products, satisfy them and in the long run, retain
them.
Companies have been successfully reaching out to their customers by
marketing their products differently through an array of marketing
mechanisms and strategies.

Increased Internet penetration, a hassle free shopping environment and high

levels of Net savvies see more and more Indians shopping online. But at the same time
the companies need to reduce the risks related to consumer incompetence by
tactics such as making purchase websites easier to navigate , and introducing
Internet kiosks, computers and other aids in stores.

The goal is not to convert all shoppers to online purchasing, but to show them it’s an
option. In addition to above, efforts need to be taken to educate the online buyers on the steps
that need to be undertaken while making an online purchase. Moreover, the feedback of an
online buyer should be captured to identify flaws in service delivery.

This can be done through online communities and blogs that serve as

advertising and marketing tools and a source of feedback for enterprises. We
found that it is a challenge for E-marketers to convert low frequency online buyers into
regular buyers through successful website design and by addressing concerns
about reliable performance.

Thus, the online retailing raises more issues than the benefits it currently
offers. The quality of products offered online and procedures for service delivery are
yet to be standardized. Till the same is done, the buyer is at a higher risk of fraud.

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REFERENCES

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