- INRDeals research: How online shopping has took the market away from brick & mortar stores
INRDeals research: How online shopping has took the market away from brick & mortar stores
From the past few years the pattern of shopping has completely changed. There was a time when people used to go to the local stores check out their product, bargain on it and then buy it. But now it seems like a whole nightmare for the offline retailers that how one word "convenience" changed the whole pattern of shopping nowadays.
The last couple of years have seen an outstanding transformation in India’s landscape. The e-commerce wave has taken the Indian retail sector by storm. The successful Indian
e-commerce ventures, their business and commercial models have captivated the imagination of the new, progressive India. No one had ever imagined that people would buy almost every type of stuff online because it makes sense that customers would want to put their hands on these products before buying. From hardware stuff (nails, power tools), to daily essentials like churan, food items, all type of electronics and other stuff that people usually preferred to get from the brick and mortar stores.
For a long time, the concept of brick-and-mortar retail seemed pretty simple:
“Get people in the store, get product out the door.”
Now, it’s not so simple. Today, every retailer faces the challenge of serving a customer that’s more informed, connected, and empowered than ever before.
Consumers today are increasingly able and willing to shop online and from their mobile devices.
The Game changer factors for on-line stores:
Indian e-commerce sector is bound to grow in a big way due to the huge investments being made, and due to number of factors mentioned below:
- Online marketplaces and webstores keep on trading all day, every day. This means customers can shop whenever it is convenient for them, as the online stores offer their services for many more hours per day than a physical store.
- Having the products delivered straight to their door, within a few days and even at a time to suit the customer, has made online shopping even more attractive. Most of the online stores also offer this service without any charges.
- The main reasons for increasing online shopping is undoubtedly the high discounts, exchange offers, usually during the festive seasons like the recent “Big Billion Days” by Flipkart, “Unbox Diwali” by Snapdeal, and “The Great Indian Festival” by Amazon.
- The wide variety of choices all seen on one screen, the option to pay through digital wallets or cash on delivery, and the good logistics services all stand as reasons for increasing popularity of online shopping.
- M-commerce, i.e., shopping through smart phones has proven to be a game changer in online sales. E-tailers like Snapdeal, Flipkart and Amazon get over 70% of their traffic from the mobile device. The growing use of mobile phones for shopping increases the interaction between consumers and e-tailers as buyers are able to spend more time on shopping sites—including when they are on the move.
- A huge reason general customers have decided to shop online is because online return policies are often more attractive than the return policies they usually find in a regular store. Many online stores have 30 days return policy in which the defected product is collected from the customer’s place and after verification a new product is delivered to the customer.
- Social media has played a vital role in bridging the gap between the customer and the online stores. One third of the shoppers’ buying decisions are influenced by the social media such Facebook and Instagram.
What are the popular products consumers are buying online these days?
- Software, books and music are the best selling products online.
- Computer, hardware, Electronics are at number two.
- Apparel, footwear, jewelry and home décor are at number three.
Recently, Flipkart has announced that it is planning to set up offline stores in order to reach out people in the areas where the online stores are not accessible.
So what other predictions can be made about ecommerce in the coming years? Here are a few of them:
- A major shift in department stores will see hundreds of brick and mortar locations shuttered in favor of online shopping and discount retail outlets.
- Social commerce will take center stage as the leading way to convert customers.
- Online product reviews and ratings will become the backbone with sales.
- Twitter and Facebook will roll out new online stores that allow you to make purchases directly from the site.