E-TAIL vs RETAIL

Presented by
Samyukta
Overview
 RETAILING
World’s largest private industry
US$ 6.6 trillion sales annually

 INDIAN RETAILING
• Largest employer after agriculture - 8%* of population
• Highest outlet density in world - Around 12 mn outlets

• Still evolving as an industry - Long way to go

Different retail outlets

• MALLS
• GENERALISED STORES
• SPECIALIZED STORES
• FRANCHISE STORES
• DIRECT MAILING
Evolution of retail
Era Existence of

Historic/Rural Reach Weekly markets, Melas

Traditional/Pervasive Reach Convenience stores/Kiranas

Government Supported Corporatives

Modern Formats/ International Brand outlets, super & hyper marts

PROS OF RETAIL
 Small capital to start.
 Win-Win situation.
• buys, sells, gets immediate cash back and makes profit
 Face to Face interaction with customers.
 Can work on Customer Satisfaction.
 Variety in same product line.
CHALLENGES
 Real Estate Costs

 Supply Chain Inconsistency

 Poor Infrastructure

 Lack of Skilled Manpower

FUTURE OF RETAIL
 Small capital to start.
 Win-Win situation.
• buys, sells, gets immediate cash back and makes profit
 Face to Face interaction with customers.
 Can work on Customer Satisfaction.
 Variety in same product line.
 Meaning

 ETailing, from a business perspective offer an opportunity to cater to

consumers across geographies, no operational timings, unlimited
shelf space – and all this with miniscule quantity of infrastructure.

 For a country like India, this business model is a good way of

growing the consumption driven economy. 

 The top E-tailers in India are

   indiatimes.com
 fabmart.com
 rediffshopping.com
Growth Drivers
 driven by the need to save time
 2.5 billion internet users,
 Changing demographics (youthful India),
changing lifestyles and exposure to the
developed markets 
 soaring real estate costs in India 
  innovative promotions to lure customers  
Barriers
  Cost of customer acquisition is pretty
high in India 
 Goods retailed are low value items
 Absence of touch and feel factor.
 Uncomfortable with credit card shopping.
 Receipt of wrong goods or delayed
delivery. 
Focus points
1. Customer is the King
2. Supply Chain
3. Comparison Shopping and
Customer Reviews
FUTURE OF ETAIL
 With hectic life styles ETAIL is here to
stay
 Studies show that ETAIL will grow at 45-
50 percent p.a.
 80 percent of Asia Pacific region made
online transactions with an average
spending of USD 3000.