Online shopping has changed the way of simple shopping. There are so many online retailers that offer everything we need. The top 10 shopping websites have the best sales and deals. All the major e-retailers have shopping sites. If your local store does not have an item needed by you, you can find it easily on the store's website.
E-retail chains across the country are looking for professionals in different fields. The history of e-retailing is a study worth pursuing, especially if your business involves online retailing. E-retailing has now become a global event. In India, the e-retailers attained an average higher score than the mean average for all the retailers listed. It is not surprising that the online global explosion plays an important role in the success of e-retailing.
The e-retail business is all set to mushroom across the country. The e-retail sector in India is expected to witness an upward growth this year. Multi-brand retail is being actively encouraged across the country. The sector needs to hire a professional workforce that can multitask and help provide a better consumer experience. A majority of e-retail chains are hiring sharper and smarter professionals, who can aid in providing a better consumer experience.
Challenges and the Skill Sets
In e-retail, there are some basic challenges. It is known that the cost of land and real estate are very high. Also, the operating costs in terms of procurement & related factors are also considerably higher.The main point of consideration is the profit margins. It may happen later for the individual players.
Also, each product category in an individual store may end up with stiff competition from other e-retail stores. However, the total volume of sales in most stores is far from encouraging. Flipkart competes without the pressure of Amazon in India. It is only due to the firm ability that is key to fighting off Amazon and other overseas giants.
In order to face the challenges, the e-retail sector needs to improve its profitability. It can only be achieved when the sector recruits a sharper and more knowledgeable workforce. The recruited persons must be multi-skilled and well conversant with the supply chain management & procurement. The key areas that require more consideration are different categories of merchandising, supply chain and store operations management.
The e-retail business in India is all about informality, networks and relationships. Anyone who recognizes and values this fact can be trained through various programs to become an asset. There is an acute need for in-store managers who can aid a better consumer experience. There is a need for people who are well conversant with the customers’ psychology.
Role of Smartphones and E-retail in India
India is the second largest in the world in terms of mobile connections. India’s mobile economy is all set to contribute $ 400 billion to GDP by 2020. There is hardly a day that one doesn't see someone using a Smartphone. The role of Smartphones is considered very important. A majority of people say that Smartphones are necessary in their daily lives. It can range from normal communication to online shopping.
Studies by Google have revealed that people now have Smartphones as their personal shopping assistant. The most important thing that comes across is the technology that is beneficial to the consumers. More than 70% are utilizing their Smartphone for shopping today. It is a good indication that mobile shopping is a breakthrough in the e-retail. The availability of online stores is increasing in order to help customers browse through the latest products. The Smartphone sales are growing and mobile internet is all set for a higher growth in the e-retail sector.
Future of India's e-commerce business
E-commerce in India jumped by more than 80 percent in 2013. According to the country's largest e-commerce firm, Flipkart, the momentum is likely to continue for at least the next five years. The e-commerce business in India is expected to reach around $50-70 billion by 2020.
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It is due to a fast growing internet-connected population and improvement in the whole system. The Smartphones would be the biggest online shopping driver in the coming years. The concept of online shopping is becoming increasingly popular in smaller cities too.
India’s e-retail Sector and FDI
India’s e-retail sector is gaining customers as people become more comfortable with buying things online. India’s budding e-commerce market is threatened by lack of funding and confusion over regulations. Online retail still only accounts for approx $600 million (around Rs.3, 600 crore), compared with India’s $518 billion e-retail industry.
The government should relax the norms and also allow FDI (Foreign Direct Investment) for the e-retail business. A good amount of funding represents well for the bright future. It would help boost the e-commerce business.
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The buyer has become more comfortable with the online transaction. Secure e-retailing is gaining popularity and web encryption has made this a success for most shoppers. The history of e-retailing seems certain to have a happy ending in 2014.