A MINOR PROJECT REPORT

ON
STUDY ON PROMOTIONAL STRATGIES OF
NYKAA COSMETICS

SU BM I T TE D I N P A R T I A L F U L FI L L M EN T O F T H E
R EQ U I R E M E N T
B A C H E LO R O F C O M M ER C E ( H O N O U R S ) [ B . C O M ( H ) ]

SU B MI T T E D B Y : V A N SH I K A
E N RO L L M E N T N O . : 0 1 7 9 0 2 8 8 8 2 2
U N D E R T H E G U I D AN C E : Ms M A N D EE P K A U R

SH R I G U R U T EG H BA H AD U R I N T I T U T E OF
MA N A G E M EN T A N D I N F O RM A T I O N TE C H N O L OG Y
A f f i l i a t e d t o G u r u G o v i nd Si n g h I n d a r p r a s t h a U ni v e r s i t y
(2022-2025)
 DECLARATION
I hereby declare that the project work on “STUDY ON PROMOTIONAL
STRATERGY ON NYKAA COSMETICS” Submitted to the Guru Gobind Singh
University is a record of an original work done by me under the guidance of
Ms. Mandeep Kaur , Sri Guru Tegh Bahadur Institute of Management , and
Informational Technology.

Place: Delhi Signature of the scholar

Date: Name: Vanshika
Enrollment number: 01790288822
 CERTIFICATE
This is to certify that I, Vanshika, enrollment no. 01790288822 Bachelor of
Commerce [Honours] student of Shri Guru Tegh Bahadur Institute of
Management and Information Technology has done project work on “Study on
promotional stratergy on nykaa cosmetics” under the guidance of Ms.
Mandeep Kaur.
………………………………………………
[Signature of Project inCharge]
Ms.Inderpreet Kaur

………………………………
[Signature of guide ]
Ms.Mandeep Kaur
…………………………………
Place: Delhi [Signature of the Scholar]
Date: Name: Vanshika
Enrollment no: 01790288822
 ACKNOWLEDGEMENT
A lot of effort has gone into this minor project report and for that I would like
to thank all those who have contributed in completing this project. Also, I am
highly indebted and extremely thankful to Ms. Mandeep kaur, Faculty
Member who was my guide. The strong interest evinced by her has helped me
in dealing with the problems I faced during the course of project work. I
express my profound sense of gratitude to them for their timely help and
coorperation in completing the project. Lastly, I would like to thank my entire
beloved family and friends for providing me monetary as well as non-monetary
support, as and when required without which this project would not have
completed on time. Their trust and patience is now coming out in the form of
the project.

Place: Delhi Signature of the scholar

Date: Name: Vanshika
Enrollment number: 01790288822
INDEX
S.NO. DESCRIPTION PAGE
NO.
1
DECLARATION

2
CERTIFICATE

3
ACKNOWLEDGEMENT

4
CHAPTER 1 :
INTRODUCTION OF TOPIC
1.1 INTRODUCTION TO ONLINE
SHOPPING
1.2 INTERNET USAGE IN INDIA
1.3 RETAILING
1.4 FACTORS INFLUENCING CONSUMER
TO SHOP ONLINE
1.5 INTRODUCTION TO E COMMERCE

CHAPTER 2:
INTRODUCTION OF
COMPANY
2.1 INDUSTRY PROFILE

2.2 HISTORY OF RETAILING

2.3 THE DEVELOPMENT OF RETAIL STORE

2.4 INDIAN RETAILING INDUSTRY

2.5 MEANING OF RETAIL

 2.6 FACTORS DRIVING THE GROWTH OF
RETAIL SECTOR

2.7 RECENT TRENDS IN RETAILING

2.8 LEADING ONLINE WEBSITES IN INDIA

6
CHAPTER 3:
RESEARCH METHODOLOGY

7
CHAPTER 4:
FINDINGS AND DISCUSSION

8
CHAPTER 5:
CONCLUSION

9
BIBLIOGRAPHY
 CHAPTER 1
INTRODUCTION OF TOPIC
INTRODUCTION

The Internet, as a mean for both firms and individuals to

c o n d u c t b u s i n e s s, i s n o w a d a y s of the most widely used non-store
formats. With popular trends and demands the concept o f t h e
Internet as the way forward to increase profit margins,
c o m p a n i e s n e w a n d o l d a r e creating websites here and there. The
significance for retailers to having a web site is informational and
t r a n s a c t i o n a l i n n a t u r e , a s t h e w e b s i t e c a n b e u s e d f o r ad
vertising and direct marketing; sales; customer support and public
relations .It has been m o r e t h a n a d e c a d e s i n c e b u s i n e s s - t o -
c o n s u m e r E - c o m m e r c e fi r s t e v o l v e d . Sc h o l a r s a n d p r a c t i o n a r s
of electronic commerce constantly strive to gain an improved insight intoconsu
mer behaviour in cyberspace .Internet is changing the way consumers
shop and buy goods and services, and has rapidly devolved into
a global phenomenon. Many companies have started using the Internet
with the aim of cutting marketing costs, there by reducing the price of
their products and services in order to stay ahead in highly competitive
markets. Companies also use the Internet to convey, communicate and
disseminate information, to sell the product, to take feedback and also
to conduct satisfaction surveys with customers. Customers use the
Internet not only to buy the product online but also to compare
prices, product features and after sale service facilities t h e y w i l l r e c e i v e i f
t h e y p u r c h a s e t h e p ro d u c t f ro m a p a r t i c u l a r s t o r e . M a n y e x p e r t s
a r e optimistic about the prospect of online business .A brand is the idea or
image of a specific product or service that consumers connect with, by
identifying the name, logo, slogan, or design of the company who
owns the idea or image. Branding is when that idea or image is
marketed so that it is recognizable by more and more people,
and identified with a certain service or product when there are many other
companies offering the same service or product. Advertising
professionals work on branding not only to build brand recognition, but
also to build good reputations and a set of standards to which the c o m p a n y
s h o u l d s t r i v e t o m a i n t a i n o r s u r p a s s . Br a n d i n g i s a n i m p o r t a n t
p a r t o f I n t e r n e t commerce, as branding allows companies to build their
reputations as well as expand beyond t h e o r i g i n a l p r o d u c t a n d s e r v i c e ,
a n d a d d t o t h e re v e n u e g e n e r a t e d b y t h e o r i g i n a l br a n d . Initially,
Branding was adopted to differentiate one person's cattle from another's by
means of a distinctive symbol burned into the animal's skin with a hot iron
stamp, and was subsequently used in business, marketing and advertising.
C u s t o m er p er c e p t io n i s a m a r k e t in g c o n c e p t t h a t e n c o m p a s s e s
a c u s t o m e r' s i m p r e s s io n , awareness and/or consciousness about a
company or its offerings. Customer perception is typically affected by
advertising, reviews, public relations, social media, personal experiences and
other channels .Consumer behaviour is the study of individuals, groups,
or organizations and the processes they use to select, secure, and
dispose of products, services, experiences, or ideas to satisfy n e e d s
a n d t h e im p ac t s t h a t t h e s e p r o c e s s e s h a v e o n t h e c o n s u m e r
a n d s o c i et y . I t b l e n d s e l e m e n t s f r o m p s y c h o lo g y , s o c i o lo g y ,
s o c i a l a n t h r o p o lo g y an d e c o n o m ic s . I t a t t e m p t s t o u n d e r s t a n d
t h e d e c is io n - m a k i n g p ro c e s s e s o f b u y e r s , b o t h i n d i v id u a l l y a n d
in groups.
I t s t u d i e s c h a ra c t er i s t i c s o f in d i v i d u a l c o n s u m e r s u c h a s
d em o g ra p h i c s a n d b e h a v i o u r a l variables in an attempt to
understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general. Customer behaviour study is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and buyer.
Research has shown that consumer behaviour is difficult to predict, even
for experts in the field. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyers . A greater
importance is also placed on consumer retention, c
u s t o m e r r e l a t i o n s h i p management, personalisation,
customisation and one-to-one marketing. Social functions can be
categorized into social choice and welfare functions

The ultimate goal of most businesses is to increase sales and income.

Ideally, you want to attract new customers to your products and
encourage repeat purchases. Brand awareness refers to how aware
customers and potential customers are of your business and its
products .Brand Awareness is the extent to which a brand is
recognized by potential customers, and is correctly associated with a
particular product. Expressed usually as a percentage of target
market, brand awareness is the primary goal of advertising in the
early months or years of a product's introduction .Brand awareness is the
extent to which the consumer associates the brand with the product he
desires to buy. It is the brand recall and the brand
r e c o g n i t i o n o f t h e c o m p a n y t o t h e consumers. Brand recall is the
ability of the consumer to recollect the brand with reference to the product
whereas brand recognition is the potential of the consumer to
retrieve the past knowledge of the brand when enquired about the
brand or shown an image of the brand logo.

1.1 INTRODUCTION TO ONLINE SHOPPING

Online shopping is the process whereby consumers directly buy goods,

services etc. from a s e l l e r i n t e r a c t i v e l y i n r e a l - t i m e w i t h o u t a n
i n t e r m e d i a r y s e r v i c e o v e r t h e i n te r n e t . O n l i n e shopping is the
process of buying goods and services from merchants who sell on the Internet
.Since the emergence of the World Wide Web, merchants have sought to sell
their products to people who surf the internet . Shoppers can visit web stores
stores from the comfort of their homes and shop as they sit in front of the
computer .Consumers buy a variety of items from online stores. In
fact, people can purchase just about anything from companies that
provide their products online . Books ,clothing , household appliances
toys, hardware, software, and health insurance are just some of the hundreds of
products consumers can buy from an online store .Many people choose to
conduct shopping online because of the convenience. For example
,when a person shops at a brick-and-mortar store, he has to drive to the
store, find a parking place , and walk throughtout the stores until
she locates the products she needs. After finding the items she wants to
purchase, she may often need to stand in long lines at the cash register.D e s p i t e
t h e c o n v e n i e n c e o f o n l i n e s h o p p in g , n o t e v e r y o n e c h o o s e s t o
p u rc h a s e i t e m s a n d services online. Some people like the idea of physically
going to a store and experiencing the shopping process. They like to touch
the merchandise, try on clothing, and be around other people . Online
shopping does not permit shoppers to touch products or have any social
interaction. It also doesn't allow them to take the merchandise home the same
day they buy it. Online shopping allows browsing through endless
possibilities, and even offers merchandise t h a t ' s u n a v a il a b l e i n
stores. If someone is searching for a niche product that may
not be distributed locally they are sure to find what they are
l o o k i n g f o r o n t h e i n t e r n e t . Wh a t s e v e n m o r e u s e f u l i s t h e
ability to compare items, similar or not, online. He can search
t h r o u g h mu l t i p l e s t o r e s a t t h e s a me t i m e , c o mp a r i n g
m a t e r i a l q u a l i t y , s i z e s a n d p r i c i n g simultaneously.Shopp
ing via the internet eliminates the need to sift through a store's
products with potential buys like pants ,shirts , belts , and shoes all
smugs over one arm .

1.2 INTERNET USAGE IN INDIA

Internet in India report says that India’s internet user base has gone
well above 100 million – that’s just fewer than 10% of the population.
India’s internet user base was growth was very sluggish until 2007-08,
but has picked up rapidly thereafter.

Graph 1.2.1: Internet usage in yearly basis

At about 150 million Internet users, India now has 3rd largest Internet
population in the world after China (at 575m) and the US (at 275m). At
150 million total Internet users, the Internet penetration in India remains
at 12 per cent vs. 43 per cent in China and 80 per cent in the US .However,
the low penetration means that India presents unmatchable growth
opportunity for the Internet sector in coming years. In our view, India
will likely see golden period of the Internet sector between 2013
to 2018 with incredible growth opportunity and secular growth
adoption for E-Commerce, Internet advertising, social media, search,
online content, andservices relating to E-Commerce and Internet advertising
.Here is the India Internet outlook for 2013, the first year for this golden period.

Internet penetration will reach 15%. Expect India to add 30 million new Internet
users in 2013 and total Internet population to touch 180mm. This
implies a 20% growth in the Internet population.

Time spend online will rise and directionally become comparable to

US and China .As per research estimates, an Internet user in India on average
is spending 13 hour per w e e k a n d t h i s n u m b e r w i l l l i k e l y r e a c h 1 6
h o u r s p e r w e e k . T h e i n c r e m e n t a l t i m e spend online will largely be
spent on social media, photo/video sharing, E-Commerce ,and
utilities/banking/bill payments.

Mobile Internet users to touch 100M. India has nearly 950 million
mobile subscribers and close to 50 million or fewer than 6 per cent of
these mobile subscribers
accessI n t e r n e t v i a m o b i l e h a n d s e t s . A n d e s t i m a t e t h a t
i n 2 0 1 3 t h e m o b i l e I n t e r n e t penetration will go up from close
to 6 per cent to 10 per cent and India could double its mobile Internet
population in 2013 at 100 million estimated mobile Internet users by
end of 2013.
Internet usage will likely grow faster for female and from home. So far
India
Internetu s a g e i s h e a v i l y s c r e w e d t o w a r d s m a l e g e n d e r a n d
f r o m w o r k a n d e d u c a t i o n a l establishments. In 2013, Internet
usage will grow much faster for female and from h o me a c c e s s . T h i s
acceleration will likely happen due to overall Internet adoption
moving to masses.

E-Commerce will likely touch $900M in 2013. As per the estimates, in 2012
India E-C o m m e r c e r e a c h e d $ 5 5 0 m i l l i o n i n g r o s s r e v e n u e a n d w e
e x p e c t E - Co m m e r c e t o touch $900 million in gross revenue by end of
2013.

Majority of E-Commerce growth will come from emerging cities. While, top 8
cities in India may remain at 45 per cent to 65 per cent of total E-
Commerce for various E-Commerce companies, we believe that higher
growth delta for E-Commerce in 2013w i l l c o m e f r o m e m e r g i n g
c i t i e s . We d e f i n e e m e r g i n g c i t i e s a s t h e c i t i e s o t h e r t h a n Top-40
cities in India e.g. Bhatinda in Punjab or Kota in Rajasthan.

Internet advertising will be the fastest growing sub-sector of the India Internet.
As per the estimates, India Internet advertising generated $300 million
in revenue in 2012a n d c a n d o u b l e i n 2 0 1 3 t o r e a c h $ 6 0 0 m i l l i o n .
A l s o b e l i e v e t h a t l o t s o f I n t e r n e t advertising growth will come due to
the rise in social media, mobile Internet, and non-
search and content driven online ad formats such as lead
g e n e r a t i o n , a f f i l i a t e marketing, and email marketing etc.

Fu n d i n g e n v i r o n m e n t f o r t h e I n t e r n e t s t a r t -
u p s t o r e m a i n c h a l l e n g i n g i n 2 0 1 3 .Funding environment for the
Internet start-ups to remain challenging in 2013 in India .In last 17 years,
India has created less than $5 billion in Internet market capitalization
vs. $600 billion by US Internet sector and $250 billion by Chinese Internet
sector. Lot many Internet companies have to become a lot bigger for the
funding environment to ease off.

ECommerce will likely see emergence of disruptive busi

n e s s m o d e l s a n d consolidation. E-Commerce companies that are
focusing on fundamental issues will likely disrupt the E-Commerce
industry in 2013. On one hand, the fundamental issues a r e t h e i s s u e s t h a t
m a t t e r f o r i mp r o v i n g c u s t o m e r e x p e r i e n c e s a n d t h e s t a t e o f t h e
ecosystem, on other hand focusing on fundamentals of business vs.
throwing money at the problem will become absolutely imperative.
Majority of the inventory led E-Commerce business models will likely
either merge with each other or take a niche vertical position.

Start-up culture and ecosystem to become more widespread. In our

view, the start-up culture and start up ecosystem are becoming more
widespread. The seed and angel rounds are no longer limited to
Mumbai, Delhi or Bangalore and emergence of start-u p i s n o l o n g e r
l i mi t e d t o I I T s o r b i g c i t i e s . W h i l e , I n d i a h a s l o n g w a y t o g o v s
. having a true Silicon Valley start-up culture, ecosystem and support
system, India is headed in that direction. Founding a start-up immediately
after graduation or leaving are warding corporate job to join a start-up, or
find or become an angel investor is
nol o n g e r u n c o m mo n . W h i l e , t h e 2 0 1 3 I n t e r n e t f u n d i n g e n v i r o n
m e n t w i l l l i k e l y b e challenging, the overall Internet start-up
ecosystem will become stronger and more ubiquitous.

1.3 RETAILING
R e t a i l i n g i s s e l l in g o f m e r c h a n d i se a n d c e r t a i n s e r v i c e s t o t h e
consumer. Retailing began several thousand years ago.

The activities involved in the selling of goods to ultimat

e c o n s u m e r s f o r p e rs o n a l
or household consumption. It is extremely competitive, and the
failure rate of retail establishments is relatively high. Price is the most
important arena of c o m p e t i t i o n , b u t o t h e r f a c t o r s i n c lu d e
c o n v e n i e n c e o f l o c a t i o n , s e l e c t i o n a n d d i s p l a y o f merchandise,
attractiveness of the establishment, and reputation. The diversity of
retailing is e v i d e n t i n t h e ma n y f o r m s i t n o w t a k e s , i n c l u d i n g
v e n d i n g m a c h i n e s , d o o r- t o - d o o r a n d t e l e p h o n e s a l e s , d i r e c t -
m a i l m a r k e t i n g , t h e I n t e r n e t , d i s c o u n t h o u s e s , s p e c i a l t y s t o re s ,
department stores, supermarkets, and consumer cooperatives .Whatever
form it takes, however, the essence of good retailing remains the same:
attractive ,appropriate merchandise offered for sale in an attractive, eye-
catching manner at a reasonable price at a convenient
location.I t o r d i n a r i l y i n v o l v e s t h e s e l l i n g o f i n d i v i d u a l u n i t
s o r s m a l l l o t s t o l a r g e n u m b e r s o f customers by a business set
up for that specific purpose. In the broadest sense, retailing
can be said to have begun the first time one item of value was bartered for anot
her. In the morer e s t r i c t e d s e n s e o f a s p e c i a l i z e d , f u l l -
t i me c o m m e r c i a l a c t i v i t y , r e t a i l i n g b e g a n s e v e r a l t h o u s a n d y e a
rs ago when peddlers first began hawking their wares and
 w h e n t h e f i r s t marketplaces were formed .As with most other
business activities, retailing is extremely competitive, and the
mortality rate of retail establishments is relatively high. The basic competition
is price competition, but t h i s i s m o d e r a t e d s o m e w h a t b y s u c h n o n -
p r i c e f o r m s o f c o m p e t i t i o n a s c o n v e n i e n c e o f location, selection and
display of merchandise, attractiveness of the retail establishment itself ,and
intangible factors such as reputation in the community. Competition for sales
has led to a blurring of traditional product lines in retailing, and many
establishments offer a much wider variety of merchandise than their basic
classification would indicate (e.g., drugstores may carry food, clothing,
office supplies, hardware, etc.).

1.4 Factors influencing consumer to shop online

Though there are several factors that influence consumers to shop online, but
there are mainly four factors which influence consumer to shop online
after reading literature in the field on consumer attitudes towards online
shopping and these factors are discussed below in brief.

1 Convenience
Convenience factor refers that it is easy to browse or search the information
through online
ise a s i e r t h a n t h e t r a d i t i o n a l r e t a i l s h o p p i n g . T h r o u g h o n l i n e , c o
n s u m e r s c a n e a s i l y s e a r c h product catalogue but if the consumer look gen
erally for the same product or item in at r a d i t i o n a l s t o r e m a n u a l l y i t i
s d i f f i c u l t t o v i s i t p h y s i c a l l y a n d t i m e c o n s u m i n g a l s o . Co
nvenience has always been a prime factor for consumers to shop
online. According to the Robinson, Riley, Rettie and Wilsonz (2007)
the major motivation for online purchasing is convince in terms of shop at
any time and having bundles of items delivered at door step. Rohm
and Swaminathan’s (2004) claims in “typology of online shoppers
into”: Convenience s h o p p e r s , b a l a n c e d b u y e r s , v a r i e t y s e e k e r s
a n d s t o r e - o ri e n t e d s h o p p e r s , b a s e d u p o n
t h e i r present shopping motivation. Through online purchase consumers can ea
sily compare the price than the traditional purchase. So price comparison is
also another convenience factor of online shopping

2 Time saving
T i m e s a v i n g s i s o n e o f mo s t i n f l u e n c i n g f a c t o r s o f o n l i n e
s h o p p i n g . B r o w se o r s e a r c h a n online catalogue can save time and
patience. People can save time and can reduce effort
bys h o p p i n g o n l i n e . O n e p o s s i b l e e x p l a n a t i o n t h a t o n l i n e s
h o p p i n g s a v e s t i m e d u r i n g t h e purchasing of goods and it can elimin
ate the traveling time required to go to the traditionalstore. On the other side,
some respondent think that it is also time taken for delivery of goods or services
over online shopping .U n e x p e c t e d l y t i m e s a v i n g i s n o t t h e
m o t i v a t i n g f a c t o r f o r t h e c o n s u m e r s t o s h o p o n l i n e (Corbett,
2001) because it takes time receiving goods or delivery. But time
saving
factor can be seen through different dimensions i.e. “person living in Florida c
an shop at Harod’s inLondon (through the web) in less time than it takes
to visit the local Burdines department store”. So the importance of
the time saving factor cannot be neglected as motivation behind
o n l i n e p u r c h a s i n g . A d d i t i o n a l l y G o l d s m i t h a n d Br i d g e s ( 2 0 0 0 )
e m p h a s i z e t h a t t h e r e i s a discrimination between online shopper
and non-online shoppers, online shoppers are more w o rr i e d a b o u t
convenience, time saving and selection whereas non online
s h o p p e r s a r e worried about security, privacy and on time delivery.

3 Website design/features
Website design and online shopping activity is one of the
v i t a l i n f l u e n c i n g f a c t o r s o f onlineshopping. Website design,
website reliability/fulfilment, website customer service and website
security/privacy are the most attractive features which influence the perception
of the consumer of online buying Shergill & Chen (2005). Kamariah and
Salwani (2005) claims the h i g h e r w e b s i t e q u a l i t y , t h e h i g h e r
c o n s u m e r i n t e n d s t o s h o p f r o m i n te rn e t . We b d e s i g n quality has
important impacts on consumer choice of electronic stores, stated by
Liang and L a i ( 2 0 0 0 ) . W e b s i t e d e s i g n o n e o f t h e i m p o r t a n t
f a c t o r m o t i v a t i n g c o n s u m e r s f o r o n l i n e shopping. Website design
features can be considered as a motivational factor that can create
positive or negative feelings with a website. If website is designed
with quality features it can guide the customers for successful
transactions and attract the customers to revisit the website again.
However, worse quality website features can also hamper
o n l i n e s h o p p i n g . A c c o r d i n g t o Liang and Lai (2000), web design
quality or website features has direct impact on user to shop online

4 Security
Security is another dominant factor which affects consumers to shop
online. However many i n t e r n e t u s e r s a v o i d o n l i n e s h o p p i n g
b e c a u s e o f c r e d i t c a r d f r a u d , p r i v a c y f a c t o r s , n o n - delivery risk,
post purchase service and so on. But transaction security on the online shopping
has received attention. Safe and secured transaction of money and
credit card
informationi n c r e a s e s t r u s t a n d d e c r e a s e s t r a n s a c t i o n r i s k . I
n 1995, UK has introduced Fraud freeelectronic shopping
and later on Europe and Singapore introduced secured el
ectronictransaction (SET). According to Bhatnagar and G
h o s e ( 2 0 0 4 ) S e c u r i t y i s o n e o f t h e attributewhich limits buying on
the web as they claim that there is a large segment of internet shoppers who
don’t like to buy online because of their thinking about the security of
their sensitive information

1.5 INTRODUCTION TO ECOMMERCE

Electronic commerce, commonly known as ecommerce, is a type of
industry where buying and selling of product or service is conducted over
electronic systems such as the Internet
ando t h e r c o m p u t e r n e t w o r k s . E l e c t ro n i c c o m me rc e d r a w s o n t e c
h n o l o g i e s s u c h a s m o b i l e commerce, electronic funds transfer,
supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management
systems,a n d a u t o m a t e d d a t a c o l l e c t i o n s y s t e m s . M o d e r n e l e c t r o n
i c c o m me r c e t y p i c a l l y u s e s t h e W o r l d W i d e W e b a t l e a s t a t o
ne point in the transaction's life-
c y c l e , a l t h o u g h i t m a y encompass a wider range of technologies
such as e-mail, mobile devices social media, and telephones as well.
Electronic commerce is generally considered to be the sales
a s p e c t o f e - b u s i n e s s . I t a l s o consists of the exchange of data to
facilitate the financing and payment aspects of business transactions .E-
commerce can be divided into:

E-
tailing or "virtual storefronts" on websites with online catalogu
e s , s o m e t i m e s gathered into a "virtual mall"

The gathering and use of demographic data through Web contacts and social
media

Electronic Data Interchange (EDI), the business-to-business exchange of data

E - m a i l a n d f a x a n d t h e i r u s e a s me d i a f o r r e a c h i n g p r o s p e c t i v e
a n d e s t a b l i s h e d customers (for example, with newsletters)
Business-to-business/ Business-to-Customer buying and selling

The security of business transactions etc…

CHAPTER 2
INTRODUCTION OF COMPANY
2.1 INDUSTRY PROFILE

RETAIL INDUSTRY
India is the second fastest growing economy in the world. It is third
largest economy in the w o r l d i n t e rm s o f G D P a n d f o u r t h l a r g e s t
e c o n o my i n t e r ms o f Pu r c h a s i n g P o w e r P a r i t y . I n d i a p r e s e n t s a
h u g e o p p o r t u n i t y t o t h e w o r l d a t a g e , t o u s e a s a h u b . St a n d i n g
o n t h e threshold of a retail revolution and witnessing a fast changing retail
landscape, India is all set t o e x p e r i e n c e t h e p h e n o m e n o n o f g l o b a l
v i l l a g e . I n d i a i s t h e “ p r o mi s e d l a n d ” f o r g l o b a l b r a n d s
and Indian retailers A “Vibrant economy”. India tops in the list of emerging mar
ketfor global retailer and India’s retail sector is expanding
and modernizing rapidly in line with I n d i a ’ s e c o n o m i c g r o w t h .
T h e f u t u r e i s p r om i s i n g ; t h e m a r k e t i s g r o w i n g , g o v e r n m e n t
p o l i c i e s a r e b e c o m i n g more favourable and emerging technologies are
facilitating operations .Retailing in India is gradually inching its way
toward becoming the next boom industry. The whole concept of
shopping has altered in terms of format and consumer buying
behaviour ,u s h e r i n g i n a r e v o l u t i o n i n s h o p p i n g i n I n d i a . M o d e r n
retail has entered India as seen insprawling shopping
centers m u l t i - s t o r i e s m a l l s a n d h u g e c o m p l e x e s o f f e r
s h o p p i n g , entertainment and food all under one roof. The Indian
retailing sector is at an inflexion pointwhere the growth of organized
r e t a i l i n g a n d g r o w t h i n t h e c o n s u m p t i o n b y t h e I n d i a n pop
ulation is going to take a higher growth trajectory. The Indian population is
witnessing a significant change in its demographics. A large young
working population with median age of 24 years nuclear
families i n u r b a n a r e a s , a l o n g w i t h i n c r e a s i n g w o r k i n g -
w o m e n population and emerging opportunities in the services sector are going
to be the key growthd ri v e r s o f t h e r e t a i l s e c t o r i n I n d i a . Re t a i l i n g
i n In d i a i s e v o l v in g r a p i d l y , w i t h c o n s u m e r spending growing by
unprecedented rates and with increasing no of global players investing
in this sector. Organized retail in India is undergoing a metamorphosis
and is expected to scale up to meet global standards over the next
f i v e y e a r s . I n d i a ’ s r e t a i l m a r k e t h a s experienced enormous
growth over the past decade. The most significant period of growth for t h e
sector was between year 2000 & 2006, when the sector
revenues increased by about93.5% translating to an average
a n n u a l g r o w t h o f 1 3 . 3 % .T h e s e c t o r s g r o w t h w a s p a r t l y a r e
flection of the impressive Indian economic growth and overall
r i s e i n i n c o m e l e v e l o f c o n s u me rs . A p p a r e l s a n d c o n s u m e r
d u ra b l e s a r e t h e f a s t e s t g r o w i n g v e r t i c a l i n t h e r e t a i l sector.
Mobile phone as a product category has witnessed the highest growth in the
consumer demand amongst all retail products offerings with increasing
penetration of telecommunication in towns and villages. The
telecommunication sector has been adding on a n a v e r a g e 5 m i l l i o n
n e w u s e r s e v e r y m o n t h . Th e o t h e r p r o d u c t c a t e g o r i e s a r e
gaining traction predominantly in the urban
a r e a s a n d e m e r g i n g c i t i e s , w i t h i n c re a s i n g a v e r a g e income and
spending power of young urban India.

2.2 History of Retailing

Store; commonly a shop or stall for the retail sale of commodities, but
also a place where wholesale supplies are kept, exhibited, or sold.
Retailing—the sale of merchandise to the c o n s u m e r — i s o n e o f t h e
oldest businesses in the world and was practiced in pre historic
times .Total retail sales, which include retail stores and eating establishments,
topped $2.7 trillion in
the United States in 1998. Currently, there are over 1.5
m i l l i o n r e t a i l e s t a b l i s h m e n t s employing over 19.8 million
people. Most are small. One third of all retail establishment shave no
paid employees; about 43% have fewer than 10 employees. Larger
stores, with over $500,000 in annual sales, account for three quarters of all
retail sales. The 50 largest retailers control about one fifth of the market,
and stores with ten or more branches account for 95%of all department
store sales, 56% of all drugstore sales, half of all shoe sales, and
57% of all grocery store sales.

2.3 The Development of Retail Stores

The earliest form of retail merchandising was probably the exchange
of food and weapons ;l a t e r c a m e t r a d e r s a n d p e d d l e r s , a n d b y
3 0 0 0 B C s h o p s h a d b e c o m e c o m m o n . D u r i n g t h e Greek and
Roman period, stores, including many specialty shops, developed in
the form of open booths, attracting large cosmopolitan crowds. After
the decline of the Roman Empire, barter became more important, but
by the 14th cent. Retail trade again assumed importance.Merchants, who in
early times were viewed with suspicion, rose in the social scale.
Smalls t o r e s , e a c h c a r r y i n g i t s s p e c i a l l i n e o f g o o d s , r e a c h e d
t h e i r p e a k i n t h e 1 8 t h c e n t . T h e wholesale business developed,
and traveling salesmen and standard prices came into general use .In
the United States the general store preceded the single-line store and is
still common in small rural communities. In late 19th cent, the
department store came into being—a large-scale general store or a
combination of single-line stores in which each line of merchandise is
operated as a separate department. Such stores provide
the convenience of easy accessibility to a large variety of goods.
Modern department stores have been vital to the development
of shopping centres and malls, huge retail developments that contain a
wide variety of stores and services .Retail concerns that do business
principally through the mail are called mail-order houses. In the
United States among the first and largest were Montgomery Ward
(founded 1872) and Sears, Roebuck, & Company (founded 1886),
which sold their goods to rural residents by means of annual catalogues.
Both later developed warehouses and retail stores in many urban
c o m m u n i t i e s ; M o n t g o m e r y W a r d c l o s e d i n 2 0 0 1 , a n d Se a r s w a s
m e r g e d w i t h K m a r t t o b e c a me a su b s i d i a r y o f t h e s e a r s
h o l d i n g s . Holdings Corporation in 2005. Many mail-order houses now also
depend on orders placed over the telephone and via the Internet.
Development of the World Wide Web on the Internet has given rise to
companies, such as Nykaa .com, that sell goods exclusively through an
Internet site, or on-line "store," shipping purchases by mail or other carriers
.Chain stores, though known in earlier times, first developed their modern form
in 1859, when the Great Atlantic and Pacific Tea Company (A&P)
standardized the quality and price of all merchandise sold in its stores
. Through c e n t r a l m a n a g e m e n t , q u a n t i t y p u r c h a s i n g
, standardization of business methods, and limited individual service,
the chains are often able to sell their goods well below prices charged
by independent stores. Chain stores were once typified by five-and-
ten-cent stores (e.g., F. W. Woolworth Company, which operated such
stores until 1998), but the most common forms now are discount superstores
(e.g., Wal Martsee Walton, Sam), bakeries, tobacco stores, drugstores,
groceries, and department stores .Consumers' cooperative stores
(see cooperative movement) have been established in Europe and
the United States. Discounting merchandise became widespread after
World War II, and stores specializing in discounted merchandise have
become the fastest growing segment of the retail industry. The
"discount club," where shoppers must pay a fee to become members
and name-brand products are sold at a discount (often packaged in
multiples or very large containers), became popular in the 1990s

2.4 Indian Retailing Industry

India represents an economic opportunity both as a global base and as a
domestic market. The real GDP is expected to grow at 8-10 percent per annum
in the next five years and consuming class with annual Household incomes
above Rs . 90,000 is expected to rise from about 370m i l l i o n i n 2 0 0 6 -
07 to 620 million in 2011-12. India’s vast middle class and its
a l m o s t untapped retail industry are key attractions for global retail
giants wanting to enter
newer markets.T h e R e t a i l S e c t o r o f I n d i a n E c o n o m y i s g
o i n g t h r o u g h t h e p h a s e o f t r e m e n d o u s transformation. The
retail sector of Indian economy is categorized into two segments such
as organized retail sector and unorganized retail sector with the latter holding
the larger share of the retail market. At present the organized retail sector is
catching up very fast. The impact of the alterations in the format of the
retail sector changed the lifestyle of the Indian consumers drastically.
The evident increase in consumerist activity is colossal which has already
chipped out a money making recess for the retail sector of Indian economy. The
debate over the future of India's retail sector has arisen because people are
questioning whether the public land used for these malls, the ultimate
symbol of consumerism, is being put to good use. The crucial sectors
of the economy are on a self-trajectory. The IT industry,
telecommunication industry and many other industries have seen
unprecedented growth during the last couple of years .But one industry
that has caught the eye of the common man at almost every turning on
the r o a d i s t h e B o o m i n g R e t a i l I n d u s t r y . T h e r e i s a h u e
a n d c r y o v e r t h e e n t r y o f p r i v a t e organized retailers’ entry
in Indian retail industry. The sector faced quite a few hurdles such a s
controversy over the involvement of FDI in Multi-Brand Retail
and the national
w i d e protest by small traders against the bigger fishes .Instances are : Entry of
reliance fresh andR PG Sp e n c e r ’ s w h ic h f a c e d n a t i o n w i d e p r o t e s t s .
C r i t i c s a r g u e t h e y h a v e d o n e n o t h i n g t o change many people's lives
.I n f a c t , b e c a u s e t h e m a l l s a r e o f f e r i n g a t t r a c t i v e p r i c e s , t h e y
a r e s q u e e z i n g o u t t h e s m a l l traders who can no longer afford to compete
- thereby sharpening the divide between the rich and poor in India. But
according to report of ICRIER, organized and unorganized retail will
not only coexist but also grow substantially. the reason is the retail
sector is growing on an overall basis hence the benefit of this growth
will go to both the sectors and both sectors will progress though the
share of organized sector will gradually increase . With the onset of a
globalized economy in India, the Indian consumer's psyche has been
changed. People have become aware of the value of money . nowdays
the Indian consumers are well versed with the concepts about quality of
products and services. These demands are the visible impacts of the Retail
Sector of Indian Economy. Despite the protests of the local Bania the
mighty W is finally here. Wal-Mart will be setting malls in India in
association with Sunil Mittal Bahrti Group; other international big
players like Carrefour, Tesco and Auchan have also shown interest in
the industry

2.5 Meaning of Retail

The word retail is derived from the French word retailer,

meaning to cut a piece off or
t o break bulk. In simple terms, it implies a first-
hand transaction with the customer. Retailingcan be defined as the buying
and selling of goods and services. It can also be defined as the timely
delivery of goods and services demanded by consumers at prices that
are competitive and affordable. Retailing involves a direct interface with the
customer and the coordination
of business activities from end to end- right from the concept or design stage of
a product or o f f e r i n g , t o i t s d e l i v e r y a n d p o s t -
d e l i v e r y s e r v i c e t o t h e c u s t o m e r . T h e i n d u s t r y h a s contribut
ed to the economic growth of many countries and is undoubtedly one
of the fastest changing and dynamic industries in the world today

FDI Norms

Regulatory controls on FDI have been relaxed considerably in recent

years. Currently the government allows 51% FDI in single brand retailing
and 100% in cash-n-carry business .H o w ev e r , t h e g o v e r n m e n t ’ s p l a n t o
f u r t h e r o p e n u p t h e r e t a i l s e c t o r h a s h i t t h e r o a d b l o c k after
facing strong political opposition and nationwide protests by small
traders against the proposal to allow FDI in multibrand retailing.

ONLINE SHOPPING
Online shopping is the process whereby consumers directly buy goods,
services etc. from aseller interactively in real-time without an intermediary
service over the internet

Online History of Shopping

History of Online Shopping starts not so long ago. Tim
B e r n e r s - L e e c r e a t e d " T h e W o r l d Wide Web Browser" in 1990.
In1994 few other developments took place. Online bank, thefirst of its
kind opened this year. Another development was opening of online
pizza shop by pizza hut.
I n t h e s a me y e a r N e t s c a p e i n t r o d u c e d S SL e n c r y p t i o n t o e n a b l e
encryption over the datatransferred online. This later became
t h e n e c e s s i t y o f o n l i n e s h o p p i n g . I n 1 9 9 5 , N y k a a started
operation, one of the largest online shopping mall now. Then in
1996 eBay started itsonline shopping portal.1998 witnessed use of electronic
postage stamps, where people can download and print postalstamps after paying
nominal fee. In 1999 the first online shop in UK launched

2.6 Factors driving the growth of Retail sector:-

Indian economy is growing at the rate of 8%, indicating a prosperous

future. The consistent economic growth resulted in a decent rise in
income level of the middle class.
Thethickeningo f t h e p o c k e t o f t h e c o n s u m e r r e s u l
t e d i n a r e v o l u t i o n o f t h e r e t a i l i n d u s t r y . Man
yInternational brands have entered the market. With the growth in
organized retailing ,unorganized retailers have brought drastic changes
in their business models, many factor are responsible for the growth of
retail sector. These are:

1) INCREASING DISPOSABLE INCOME: Rising disposable incomes

in middleclass and lower middle class with increase in employment
opportunities for young adults in IT & IT enabled sectors are the major
cause of retail growth in India. 2) INCREASING NO. OF DUAL INCOME
NUCLEAR FAMILIES: In India,
hefty pay packets, nuclear family along with increasing working women populat
ion and dualincome in family are the factors contributing to prosperous retail
sector.3) CHANGING LIFESTYLE AND CONSUMER BEHAVIOR:
Due to increasing w o r k i n g p o p u l a t io n , c o m f o r t a b l e l i f e , t r a v e l
a n d l e i s u r e a r e g i v e n i m p o r t a n c e . T h e s e k e y factors are growth
drivers of retail sector in India which now boast of retailing almost all
the preferences of life – apparel and accessories, Appliances, Electronics, cosm
etics & Toiletscries etc.4 ) E X P E RI M E N T A T I O N W I T H F O R M A T S:
Due to competition in the market, retailing is still evolving and
t h e s e c t o r i s w i t n e s s i n g a s e r i e s o f e x p e r i m e n t s w i t h n e w formats
being tested out.5) STORE DESIGN: Shopping malls and super markets
are growing at a very faster rate. Improvements in infrastructure and
enhanced availability of retail space, store design are t h e f a c t o r s
increasing the share of organized retail and thereby
c o n t r i b u t i n g t o g r o w t h o f Indian retail sector.

2.7 Recent Trends in Retailing

Retailing in India is witnessing a huge revamping exercise as can be seen in the

graph.

India is rated the fifth most attractive emerging retail market: a potential
goldmine.

E s t i m a t e d t o b e U S$ 2 0 0 b i l l i o n , o f w h i c h o r g a n i z e d r e t a i l i n g
( i . e . m o d e r n t r a d e ) makes up 3 per cent or US$ 6.4 billion.

A s p e r a r e p o r t b y K P M G t h e a n n u a l g r o w t h o f de p a r t m e n t
s t o r e s i s e s t i m a t e d a t 24%.

Ranked second in a Global Retail Development Index of 30

developing countries drawn up by AT Kearney. Multiple drivers leading to a
consumption boom:

Favourable demographics

Growth in income

Increasing population of women

Raising aspirations: Value added goods sales.

Food and apparel retailing key drivers of growth.

Organized retailing in India has been largely an urban.

Phenomenon with affluent classes and growing numb

e r o f d o u b l e - i n c o m e households.

ore successful in cities in the south and west of India. Re

a s o n s r a n g e f r o m differences in consumer buying behaviour to cost of real
estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected in

the share of the rural market across most categories of consumption.
ITC is experimenting with retailing through its e-Choupal and Choupal
Sagarrural hypermarkets.

HLL is using its Project Shakti initiative leveraging women self-help

groups to explore the rural market.

Mahamaza is leveraging technology and network marketing concepts

to act as an aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from

N y k a a . c o m t o e B a y t o radically change buying behaviour across the
globe.

2.8 Leading online websites in India

Online shopping has become a popular trend in India now. People

have been enjoying the c o n v e n i e n c e o f h a v i n g t h e i r o r d e r s h i p p e d
r i g h t t o t h e i r d o or s t e p . B u t p e o p l e o f t e n g e t confused in selection
of reliable sites as there are a plethora of sites, and everyone claims
to be reliable. But in actual only few are up to the mark. Thus to facilitate you,
here is our pick of leading 10 online shopping sites.

eBay.in
 Is o n e o f I n d i a ' s l e a d i n g o n l i n e m a r k e t p l a c e . I t is a n o n l i n e
m a r k e t p l a c e w h e r e anyone can trade practically anything. It is a
platform for the sale of goods and services by ad i v e r s e c o m m u n i t y
o f i n d i v i d u a l s a n d b u s i n e s s e s . e Ba y u s e r s t r a d e i n m o r e t h a n
5 0 ,0 0 0 categories including collectibles, antiques, sports memorabilia,
computers, IT and office,
art,a n t i q u e s , t o y s , d o l l s , s t a m p s , c o m i c s , m a g a z i n e s , m u s i c , p o t
t e r y , g l a s s , p h o t o g r a p h y ,electronics, jewellery and gemstones, claims the
company.
Fashion and You

Is an invitation-only online destination. It features the

best International &In d i a n d e s i g n e r b r a n d s i n l u x u r y , h i -
f a s h i o n a n d l i f e s t y l e e x p e r i e n c e s f o r m e n , w o m e n , children and
your home.

Nykaa .com
 Is an online chopping site that lets users shop various items including
books ,mobile accessories, cameras, game consoles, MP3 players,
home and kitchen appliances and m u c h m o r e , o n l i n e a t d i s c o u n t e d
p r i c e s . I t o f f e r s m u l t i p l e m e t h o d s t o m a k e p a y m e n t s f o r order:
credit card, debit card, net Banking, e-gift voucher and cash on
delivery. The order is generally delivered within 3-4 working days.

MyGrahak.com
 Is s a i d t o b e I n d i a ' s l a r g e s t o n l i n e Su p e r ma r k e t . I t s e l l s a w i d e
r a n g e o f products like FMCG, Food, Non Food, Grocery, Rice, Gourmets
and others. Attractive offers are also available for shopping online at
MyGrahak.com

Futurebazaar.com
Is one of India's largest online retailers and is part of Future Group owner of
brands like Big Bazaar, Pantaloons & Central. It offers a wide range in cameras,
consumer durables, home decor, home entertainment, appliances and
electronics, mobile.

Homeshop18
 Is a virtual retailer operating in a multimedia environment that include
television web catalogue and print to sell high quality products and services
directly t o consumers across the country. It deals in books, movies and music,
gifts and flowers, mobiles and accessories camera and camcorders electronic
, computers and peripherals, toys and games and much more.
Myntra.com

Is an online shopping destination for fashion and lifestyle products. It

lets you shop online from the latest catalogue of original branded
products in apparel, footwear and accessories for men, women and kids
Letsbuy.com

Is an Internet retailer of branded Consumer electronics and

IT products, which claims to offer more than 9000 products from top
international and domestic brands. The company deals
in technology products like notebooks, printers, networking, digital
cameras ,storage and Consumer electronics such as LCD TVs, mobile
phones, MP3 players, gaming and home electronics.
Mydala.com

Is a platform which gets you great deals you want in your city. It claims to
offer deals each day - 40-95 per cent off on the best of restaurants,
shopping, and salons in your city
Inter firm Rivalry

Competitive rivalry is medium to high. There are numerous industry

players; however, they can be considered niche (eBay) and overly
diversified (Yahoo!) competitors of a diversified industry firm like
Nykaa . As a result, a head-to-head competition exists against Barneys
(who is backed by retail stores) and Price line (who has the highest
employee per revenue contribution in the industry) created strategic
group together with Nykaa . Adding the flame of intensified rivalry
is the high fixed and storage costs of the industry since firms needed
to stock inventory in their warehouses for ready delivery of an
order. Competitors also have little product differentiation, except for
auctioned product maybe and other exclusive rights of players to sell
supplier’s products, making customer switching costs low .Looking at the
entire book retail industry, competition is quite diverse. A consumer
could purchase books from a bricks and mortar store, which could be a large ch
ain, a non-book retail store, or a small independent store. A consumer
could also choose to buy their books o n - l i n e . W i t h t h e o n s e t o f
Internet bookstores, price is even more of a factor in
c o n s u m e r book purchasing

Buyer power

Buyer power is higher when buyers have more choices. Businesses are forced to
add value to their products and services to get loyalty. Many loyalty
programs include excellent services that customers demand on-line.
Customers want to solve their problems and many times they are more
successful on-line than on-phone. Also, we see internet savvy
businesses springing up offering more valuable goods and services at
lower costs. Now with the advent of eBay ,many people are
assuming roles as drop shippers. Individuals can have a thriving
business selling goods of larger companies without having to carry
inventory
Supplier power

Supplier power is higher when buyers have fewer choices from whom
to buy. As mentioned earlier, drop shipping has increased the amount of
suppliers available. All an individual has to do is form an agreement to sell
products for the company. The company takes care of all the logistics.
The same is true of associates programs that Nykaa .com and
google.com offer .Associates allow a webmaster to earn money by
recommending products from others. This increases supplier offerings

Threat of substitute

Threat of substitutee products or services is high when there are many

product alternatives.This is different than having many suppliers.
Examples of alternatives are exchanging
brandn a m e s , s u b st i t u t i n g c r e d i t c a r d
c a p a b i l i t i e s , a n d l o o k i n g a t b e t t e r v a l u e s f r o m c h e a p e r sources.
The internet allows this with the "global economy". We can substitute
product

CHAPTER 3
RESEARCH METHODOLOGY
Research Design

“Research means different things to different people” and the

intention behind it are
t o i n v e s t i g a t e i n n u me r a b l e d a t a , t h e o r i e s , e x p e r i e n c e s , c o n c e p t s
and law. “The proceduralf r a m e w o r k w i t h i n w h i c h t h e r e
s e a r c h i s c o n d u c t e d ” i s t h e d e f i n i t i o n o f r e s e a r c h meth
odology.The two broad and distinct approaches to social research cover the
Quantitative and Qualitative methods of
enquiry.T h e q u a n t i t a t i v e p a r a d i g m o n t h e o t h e r h a n d i n t e n d
s t o g a i n a d e e p e r u n d e r s t a n d i n g , knowledge and insight into a
particular situation or phenomenon, by providing answers to questions
of ‘how?’ rather than ‘what?’. Unlike qualitative research which
occurs in natural settings, quantitative research is where hypotheses are
established.

Data collection
The data required for understanding will be collected from various online
customers. In order to conduct the study digital survey was conducted
through facebook and e-mail. And those responses are collected in a
spreadsheet and further analysis was done. T h e
d a t a c o l l e c t i o n m e t h o d i n t h i s p a r ti c u l a r r e s e a r c h
c o m p r i s e s o f t w o f o r m s : n a m e l y primary and secondary data. One needs
to be careful while using secondary data as maybe the collected data may be
biased as the collector of that original data might have highlighted only a
partial picture or another aspect may be that data may be quite old and
also the data quality could be unknown.

Primary data
“Data collected specifically for the research project undertaken” is the
definition of primary research as provided by Saunders et.al (2003: pp.
486).Primary data is generally originated by any researcher to address
any specific problem or issue at hand, where the only drawback is that
it can be expensive and time-consuming. The various ways of gathering
primary data is through surveys, focus group and observations.

In this study, the primary data is collected through well-formed questionnaire

with the help of a digital survey. The questionnaire consists of
quantitative and qualitative multiple choice questions and the
respondents are asked to choose the one choice which suits them the
best amongst the multiple choices.
Secondary Data
Prerequisite to the collection of primary data is a careful scrutiny of
the existing secondary data (Malhotra, 2005). The Data that is collected from
existing journals, reports and statistics f r o m p r i v a t e a n d p u b l i c
i n s t i t u t i o n s a re c a l l e d S e c o n d a r y d a t a . Fo r t h i s s p e c i f i c s t u d y
t h e collection of secondary data was done primarily from marketing journals
already available on this topic. Secondary data helps the author to comprehend
the perception of Indian consumers on online shopping. Thus the study
carried out has analyzed the primary data with the rationale and
validation of the present secondary data.

Sample technique
Choosing a study sample is an important step in any
r e s e a r c h p r o j e c t s i n c e i t i s r a r e l y efficient, practical, or
ethical to study whole populations. In this study the sampling strategy
used is convenient sampling. The sample size is 100. A small part of
something intended as r e p r e s e n t a t i v e o f t h e w h o l e , o r a s u b s e t o f
a p o p u l a t i o n . I n t h i s r e s e a r c h s i m p l e r a n d o m sampling is being
used.

Data collection
The data collection would be
PRIMARY DATA: Questionnaire
SECONDARY DATA: Journals, Internet, newspaper etc.

Sample design
Online customers of Bangalore city are included under this research and tell
their satisfaction level.

Data source
Both Primary and Secondary source of data would be used .The major
type of information isused from primary data

OBJECTIVE OF STUDY
1 To find the factors that leads a website user to return to or
recommend the website Nykaa .com

2 To discover the key factors that influence online buying behaviour

of consumers in India

3 To identify who are the online shoppers in terms of demography

4 To understand the customer awareness on Nykaa .com

5 To determine the factors responsible for customer satisfaction

LIMITATIONS OF THE STUDY

No research is complete without admitting the limitations that was

faced while conducting a study which will contribute to present learning.
This study too like the others have certain constrains which has been
discussed below.

1The study was restricted to Bangalore city only

2 The study is mainly concentrated on Nykaa .com

3 The sample of the size will be limited to time and resources

4 The information will be collected valid until there is no any

technical change or any innovation

5 The result is assuming that respondents have given accurate information

DATA ANALYSIS AN INTERPRETATION
This chapter aims obtain the objective of the study by critically
analysing the qualitative
datat h r o u g h t h o r o u g h l y e x a m i n i n g t h e i n t e r v i e w e e ’ s r e s p o
n s e s a n d b e l i e f s . T h i s h a s b e e n achieved through evaluating the
most relevant responses by the participants. The data
has been analysed and discussed by comparing the comments made by the resp
ondents with theliterature review keeping in mind the research objective
of the study. Thus, the rationale of this analysis is based on the personal
answers provided by the respondents.An appropriately designed
questionnaire was used to collect the primary data for the study.The
data for 100 respondents was organized systematically in tables and graphs and
then
wass u b j e c t e d t o a n a l y s i s u s i n g a p p r o p r i a t e s t a t i s t i ca l t o o l s . T h e
re s u l t s o f t h e a n a l y s i s a r e presented in the following section in order to
assess the customer perception towards onlineshopping on Nykaa .com
in India.Here for analysing, we are considering two factors. That is:

Demographical factors

Behavioural factors
1. Gender of Respondents:

Graph 4.1: Gender wise respondents

Column1

1st Qtr 2nd Qtr

58%42%
Gender
Male Female

Analysis and Interpretation:

According to demography profile, in this study 70 % male and 30%
female respondents
are part of my target population and they help me to fulfil my questionnaire fro
m different area of Bangalore city. From these groups total
respondents are 100. So, according to the survey result, the male
respondents are more and can be told that they interested to shop
online than female, even though both of them shop online.
2. Age Group:

Analysis and Interpretation:

Below figure shows that 63% respondents are between 15-25 years old, 24%
respondents are between 25-35 years old, 12% respondents between 35-45 years
old, and 1% respondents
are between 45&above. Overall result shows that between all of them the respo
ndents who hasage limit between 15 to 35 years (63%+24%= 87%)
people are more familiar to shop online on my target population.
3. Occupation:

Graph 4.3: Occupation wise respondents

8%7%46%39%

Analysis and Interpretation:

In this survey, 46% of the respondents are salaried and 39% are
s t u d e n t s . So t h e y b o t h together made majority of respondent’s
percentage (85%). 8% are business persons and 7%are House wife.
Salaried persons and students will always look for new technologies and new
services which make them more comfort.
 CHAPTER 4
FINDINGS AND DISCUSSION
FINDINGS:
There is not much difference in gender for using online shopping.

Students and salaried persons are most frequent users of Nykaa .

Frequency of purchase for electronics, books and music, apparels and

accessories are more in Nykaa .

Word of mouth was more influential in promotion as many people

were made aware by their friends and family when customers recommend this
website to them.

Highly discounted products got out of stock quickly, since customers

purchased it as soon as they could when they see high discount on good
featured product.

The services provided by Nykaa are good and even more scope
of development is there for increasing the customer strength.

Digital marketing techniques like search engine marketing, link

s p r o v i d i n g o t h e r website and advertisement also functioned well for
promotion of this website.

Fast delivery is one of best service Nykaa is providing.

Different payment options available in Nykaa made customers

more satisfied and comfort for paying while purchasing product.

C u s t o m e r s f e e l i n g mo r e s e c u r e d w h e n p u r c h a s i n g t h r o u g h
N y k a a b e c a u s e o f different policies and services they have.

In comparison with competitors, Nykaa is charging free shipping for the

purchase of 300 plus rupees, while others free ship the service without any
barrier.

Out of stock is the main issue faced by Nykaa .

Most of customers have good experience with Nykaa while purchasing
products.

Most of them are satisfied with the services of Nykaa and so that they
succeed in retaining the customers.

Advertising is an important way to have the brand and products familiar to

consumers.

Convenience and time saving are two important factors that

c u s t o m e r l o o k i n g f o r while purchasing through online

LIMITATIONS OF THE STUDY:

Time Constraint
Customer Satisfaction is a vast concept. Time is
t o o s h o r t t o c o n d u c t t h e s t u d y i n depth and the area of the research was
vast.

Area Constraint:
As the survey is conducted in limited area there was a problem of
limited number of respondents.

Small Sample Size

As due to shortage of time, the entire population cannot be
c o v e r e d . So t h e r e i s a chance of error in sample size.
CHAPTER 5
CONCLUSION
The thorough study is based on the consumer behaviour analysis
which serves a great idea regarding consumer perception when
t h e y g o f o r o n l i n e s h o p p i n g . I n o r d e r t o s a t i s f y themselves
consumer perceive many things before buying products and they will
be satisfied if the company meet their expectation .The Overall Brand
Value of Nykaa is good, but it is facing some tough competition from
its global competitors like E bay and Nykaa . Talking about domestic
market i.e India, it is the most superior E-business portal which is
aggressively expanding & planting its roots deep into t h e I n d ia n m a r k e t &
a t t h e s a m e t im e s h if t i n g t h e m in d - s e t o f t h e p e o p l e f r o m
g o in g & shopping from physical store to online stores, which is magnificent
.Be very focused on consumers and build amazing experiences for the
customers.
 CHAPTER 6
RECOMMENDATIONS
1 Nykaa has successfully placed itself into the prospects mind making it the Ind
ia’slargest online store with huge range of products. But it still needs
to work on their core competence that is books and stationery items.

2 Delivery services can be improved mainly in rural areas by

s e l e c t i n g a p p ro p r i a t e courier service which has services in customer area
for dispatching an item.

3 Can make free delivery to all priced products.

4 Can include more coupon codes and gift vouchers for

i n c r e a s i n g t h e t r a f f i c o f t h e customers.

5 Out of stock items can made available as soon as possible and

intimate the needed customers.

6 Should look for International/ Overseas markets or Neighbouring Countries.

7 Critical mass of Internet users – Internet users in India is increasing at

increasing rate ,so Nykaa can target more & more cities i.e not only tier
1 & 2 but also tier 3 & 4cities, which will help generate stronger customer
base & more revenues.

8 Should clearing focus on the Growing Online Apparel business & it can
diversify into apparel category either organically or inorganically by acquiring
other portals.

9User Experience: Portal should continuously aim to wor

k t o i m p r o v e t h e u s e r experience by adding more & more
innovative features in the website like virtually shopping basket, virtual
trial rooms. In this competitive world to differentiate via user experience, the
ultimate winner will be the Indian online consumer.

10 Should comprehensively invest into E-CRM & online reputation

management.
BIBLIOGRAPHY
BOOKS:

1 Assael, Henry. (1984.) “Behavior and Market Action”. Boston,

Massachusetts: Kent Publishing Company,

2 Belch, G.E., & Belch, M.A. (2001). Advertising and Promotion: An integrated
Marketing Communications Perspective (5th ed.). Boston: Irwin/McGraw- Hill.

3 Cooper, Donald R. and Schindler , Pamela S. (1999), Business Research

Methods, 6Tata McGraw-Hill Publishing Company Limited, New Delhi, India.

4 Creswell, J. W. (2003). “Research Design: Qualitative, Quantitative, and

Mixed Methods Approaches”. Thousand Oaks, CA, Sage.

JOURNELS AND MAGAZINES:

Arnould, E.J. and Wallendorf, M. “Market-oriented Ethnography: Interpretation

Building and Marketing Strategy Formulation,” Journal of Marketing Research,
Vol.31 (November 1994), pp. 484–504.

ANALYSIS OF CONSUMER BEHAVIOUR ONLINE

Author: Dejan Petrovic

HOT BARGAINS:

TIPS TO FIGURE OUT TRAPS FROM THE REAL VALUE DEALS

SUSHMITA CHOUDHURY AGARWAL, ET Bureau Apr 22, 2013 (The
EconomicTimes)

WEBSITES:

www.Nykaa.com

www.commodityindia.com

www.marketoperation.com

www.nextbigwhat.com