A Project Report on

“A STUDY ON THE IMPACT OF E-COMMERCE ONRETAILERS/

RETAIL MARKET”

Submitted to

Osmania University, Hyderabad-500007

In partial fulfillment of the requirements
For the award of the degree of

Bachelor of Commerce (Generals)

Submitted By

1. B DILIP CHOWDHARY -2085-19-401-030

2. HARISH J -2085-19-401-031
3. V SRI PRANAV -2085-19-401-035
4. G SURYA MOHAN - 2085 19 406 101

Under the Guidance of

Ms. Anuradha Duvvuri

Associate Professor

Department of Commerce (GENERALS)

Avinash Degree College, Kukatpally
Hyderabad -500 072

2019-2022
INTERNAL GUIDE EXTERNAL GUIDE
CERTIFICATE
 Avinash Degree College,
ACC Towers, Plot No. 21, 22, 53 & 54 Ushamullapudi Road,
Behind South India Shopping Mall, A.S. Raju Nagar,
Kukatpally Housing Board Colony, Kukatpally, Hyderabad,
Telangana 500072

Date:

CERTIFICATE

This is to certify that the project work entitled “A STUDY ON THE IMPACT OF E-
COMMERCE ON RETAILERS/ RETAIL MARKET”, is the bona fide work done
by B DILIP CHOWDHARY (Roll No: 2085-19-401-030), HARISH J (Roll No:
2085-19-401-031), V SRI PRANAV (Roll No: 2085-19-401-035), G SURYA
MOHAN (Roll No: 2085-19-406-101), as a part of their curriculum in the
Department of Commerce (GENERALS), Avinash Degree College, Kukatpally,
Hyderabad-500072.This work has been carried out under my guidance.

Project Guide
 Avinash Degree College,
ACC Towers, Plot No. 21, 22, 53 & 54, Ushamullapudi
Road, Behind South India Shopping Mall, A.S. Raju Nagar,
Kukatpally Housing Board Colony, Kukatpally, Hyderabad,
Telangana 500072

Date:

CERTIFICATE

This is to certify that the project entitled “A STUDY ON THE IMPACT OF E-

COMMERCE ON RETAILERS/ RETAIL MARKET”, submitted to the Osmania
University, in partial fulfillment of the requirements for the award of the Degree of
Bachelor of Commerce (GENERALS), and is a bona fide record of original project
work done by B DILIP CHOWDHARY (Roll No: 2085-19-401-030), HARISH J
(Roll No: 2085-19-401-031), V SRI PRANAV (Roll No: 2085-19-401-035), G
SURYA MOHAN (Roll No: 2085-19-406-101), during the period of March -2022 to
June -2022 their study in the UG Department of Commerce Avinash Degree College,
Hyderabad, Telangana- 500007. Under my supervision and guidance, the project has
not previously formed the basis for the award of any Degree, Diploma, Associate
ship, fellowship, or other similar title to any other candidate of any University. The
Project represents entirely Group work of the candidates.

Ms. M. Pooja Huggahalli Ms. P. Satyavathi

GUIDE EXTERNAL EXAMINER HEAD OF DEPARTMENT PRINCIPAL

 DECLARATION

Date:

I, B DILIP CHOWDHARY (Reg.No: 2085-19-401-030) along with HARISH J

(Reg.No: 2085-19-401-031), V SRI PRANAV (Reg.No: 2085-19-401-035), G SURYA

MOHAN (Reg.No: 2085-19-406-101) hereby declare that the project entitled A STUDY

ON THE IMPACT OF E-COMMERCE ON RETAILERS/ RETAIL MARKET,

submitted to the Osmania University, in partial fulfillment of the requirements for the

award of the Degree of Bachelor of Commerce is a bona fide record of original project

work done by us during the period of March -2022 to June-2022 under the supervision

and guidance of Ms. Anuradha Duvvuri and it has not formed the basis for the award of

any Degree, Diploma, Associateship, Fellowship or other similar title to any other

candidate of any University.

B DILIP CHOWDHARY

HARISH J

V SRI PRANAV

G SURYA MOHAN
ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT

This project is the end of our journey in obtaining our Commerce Degree. At the end of our
project, it is a pleasant task to express our thanks to all those who contributed in many ways
to the success of this study and made it an unforgettable experience for us.
We sincerely record our thanks to Mr. AVINASH BRAHMADEVARA the Chairman
and Mr. B. SANTHOSH Director of Operations of Avinash Degree College, Kukatpally, and
other members of the management committee for encouraging me to take up this UG
program in this reputed Institution.
We are grateful to our Principal Ms. P. SATYAVATHI for providing us the
opportunity and platform to work on the project and providing all the necessary facilities for
the successful completion of this work.

We express our humble gratitude to the Head of the Department Ms. M. POOJA
HUGGAHALLI for guiding, supporting, and inspiring us during our project work.

We are happy to express our gratitude to our Project Guide Ms. ANURADHA DUVVURI,

Parents, friends, respondents and the almighty.

B DILIP CHOWDHARY

HARISH J

V SRI PRANAV

G SURYA MOHAN
CONTENTS
 CONTENTS

Certificate i
Declaration ii

Acknowledgement iii

Contents iv
List of Tables v

List of Figures vi

Chapter Title Page No.

I INTRODUCTION 1-4

II REVIEW OF LITERATURE 5-11

III INDUSTRY PROFILE /CONCEPT OF THE TOPIC 12-48

IV ANALYSIS AND INTERPRETATION OF DATA 49-78

V FINDINGS, SUGGESTIONS AND CONCLUSION 79-83

BIBLIOGRAPHY

APPENDICES I
LIST OF TABLES
 LIST OF TABLES

Table Title Page

No. No.
3.1 E-commerce websites data 28

3.2 Retail companies and their info 37

LIST OF FIGURES
 LIST OF FIGURES

Figure Title Page

No. No.
4.1 Age group 50
4.2 Gender 51
4.3 How often do you shop online? 52
4.4 How often do you shop offline? 53

4.5 Which commodities do you prefer to shop online? 54

4.6 Which commodities do you prefer to shop offline? 55
4.7 Which e-commerce platform do you prefer to purchase any products? 56
4.8 Which retail store do you prefer to purchase any product? 57
4.9 How much do you spend on online shopping every month? 58
4.10 How much do you spend on shopping offline retail store every month? 59
4.11 Do you use internet to get information before purchasing any product? 60
4.12 Which source of information would you prefer before purchasing any product? 61
4.13 How is the quality of the product purchased online? 62
4.14 How is the quality of product purchased offline retail store? 63
4.15 Are you convenient conducting online purchase? 64
4.16 On what parameters do you prefer online shopping rather than retail store? 65
4.17 What is the biggest challenge you face with shopping online? 66
4.18 What is the biggest challenge you face with shopping offline retail store? 67
4.19 Where do you find better/best discounts? 68
4.20 Why do you prefer shopping at local shops or retail markets? 69
4.21 Why do you prefer shopping online? 70
4.22 How likely are you to recommend online shopping to other shoppers? 71
4.23 Do you agree that e-commerce as commercial means has its advantages over the 72
traditional commercial methods?
4.24 Do you agree that e-commerce can provide an alternative marketing channel by 73
eliminating middlemen?
4.25 which facility makes a traditional retail market better than e-commerce market? 74
4.26 Is e-commerce killing the traditional retail markets? 75
4.27 How do you rate e-commerce in India? 76
4.28 How do you rate traditional retail market in India? 77
4.29 Which one do you prefer? 78
OBJECTIVE OF THE STUDY:

 The main objective of the study is

1. To highlight the growth of E-Commerce.

2. To focus on how E-Commerce is derailing the traditional retail market.

RESEARCH METHODOLOGY:

 The present study is based on both primary and secondary data

 The primary data has been collected through the survey. The survey is based on

thestructured questionnaire, statistical tools and simple percentage method.

 The secondary data has been collected through different websites, journals,

magazinesand newspapers.

SAMPLE SIZE – 100 respondents

SAMPLE UNIT – random sample unit
STATISTICAL TOOL – Simple percentage

LIMITATIONS OF THE STUDY:

 The study is mainly concentrated on E-Commerce impact on retailers.

 The sample of the size is limited to time and resources.

 The information is collected valid until there is no change in the technology

andinnovation.

 The result is based on the assumption that the respondents have given the

accurateinformation.

3
CHAPTER – 1

INTRODUCTION

1
INTRODUCTION
The fact that the world is fast shrinking into a global village because of internet and other

communication mediums is not completely reflective in the Indian context. While developed

and fast developing countries have understood the power of internet, India still has a long

way to catch up. Internet has brought nearly the entire world just a click away from us. The

retail industry model has been repainted by internet and the rules of the game in retailing are

fast changing. The western culture has affected each and every aspect of our society. The life

is becoming fast not only in the metros but also in the normal cities. The numbers of nuclear

families are increasing and both husband and wife are working, as they have less time to go

to the market for purchasing everything now and then. Some reasons are shortage of time,

traffic jams, late working hours, versatility of plastic money and above all the approach of

internet at the doorstep of whosever desires it. Online retailers have improved their services

and are providing more and more convenient facilities to the customers. From advance

payment options they moved to payment on delivery, from fixed delivery timings to desired

delivery timings of the customer, from spot payment to EMI options, from limited varieties of

goods to a worldwide category goods. So, after seeing these advantages of online shopping

most of the people choose the concept of E-Commerce. That’s the reason behind the

popularity of E-Commerce in India and also several web-based shopping portals/sites come

into the picture.

2
OBJECTIVE OF THE STUDY:

 The main objective of the study is

1. To highlight the growth of E-Commerce.

2. To focus on how E-Commerce is derailing the traditional retail market.

RESEARCH METHODOLOGY:

 The present study is based on both primary and secondary data

 The primary data has been collected through the survey. The survey is based on the

structured questionnaire, statistical tools and simple percentage method.

 The secondary data has been collected through different websites, journals, magazines

and newspapers.

LIMITATIONS OF THE STUDY:

 The study is mainly concentrated on E-Commerce impact on retailers.

 The sample of the size is limited to time and resources.

 The information is collected valid until there is no change in the technology and

innovation.

 The result is based on the assumption that the respondents have given the accurate

information.

SAMPLE SIZE – 100 respondents

SAMPLE ANALYSIS – simple and random analysis

3
CHAPTERIZATION:

CHAPTER TITLE

1 INTRODUCTION

2 REVIEW OF LITERATURE

3 COMPANY PROFILE AND CONCEPT OF THE STUDY

4 DATA ANALYSIS AND INTERPRETATION

5 FINDINGS,CONCLUSION AND SUGGESTIONS

4
 CHAPTER – 2

REVIEW OF LITERATURE

5
 In 2010, Sinha in his study identified that in this type of E-Commerce, consumer may

use Internet for different purposes like putting up the product characteristics, over

viewing the price charges, choosing the product or service, selecting the way of paying,

deciding delivery options.

 In 2012, Goele. S and Chanana. N., in their examination makes referred that a portion

of the ventures like Travel and the travel industry, electronic, equipment items, and attire

will blast in the coming future with the assistance of web-based business. A portion of the

variables which will add to this development are M-trade, substitution ensures, distinctive

instalment modes, coordination, and shipment choices, item quality norms, client care

administrations.

 In 2013, Mitra in her study features the significance of online business, expressing

that this will be future for buying and shopping. The public authority needs to give help

with lawful structure to that business could enlarge up their points of view and work with

new trend setting innovations and strategic policies, alongside got exchanges.

 In 2014, Gupta in her paper “E-Commerce: Role of e-commerce in today's business”,

presents a comprehensive definition of e-commerce while differentiating it from e-

business models that is, B2B, B2C, B2G, C2C, narratively analysing the pros and cons of

each.

 In 2015, Mishra and Kotkar, trace the timeline and development of B2C e-commerce

in “A Study on Current Status of E-Commerce in India: A Comparative Analysis of

Flipkart and Amazon” with its inception in the mid 1990s through the advent of

matrimonial and job portals. However, due to limited internet accessibility, weak online

payment systems and lack of awareness, the progress was very slow. The Indian B2C e-

6
commerce industry got a major boost in mid 2000s with t Das he expansion of online

services to travel and hotel bookings which continue to be major contributors even

today.

 In 2015, Satyendra Arya and Avinash Raj, in their study suggested that for retailers in

India, online shopping is gaining recognition as it provides many benefits for them. In the

next 5 years, online retailing in India will strengthen even further; however, long standing

sustainability directly depends on factors like change in the market, innovations and

interactivity by market players.

 In 2015, Das & Ara observe in “Growth of E-Commerce in India” that though online

travel and hotel bookings still control the lion’s share of e-commerce market, their share

has comparatively fallen over the years due to the recent augmentation and consequent

rise of e-tailing services. There has been a tremendous surge in the volume of investment

in this sector. With the e-commerce markets in the west reaching their saturation,

investors see tremendous potential in the Indian market, in the light of which, many start-

ups have received funding from venture capitalists and private equity firms. China's

Alibaba Group and affiliate Ant Financial became the largest shareholders of One97

Communications, the parent of Indian e-tailer Paytm, by investing $680 million, in 2015.

 In 2016, Rina also elaborates the different applications of e-commerce in “Challenges

and Future Scope of E-commerce in India”, at the same time, defining the degree to

which they are operational in the country.

 In 2016, B.Maheshwara, in his article inferred that web-based business is beneficial

for everyone who gives us wide variety of items and administrations with loads of data

and appealing pictures at doorsteps. It gives accommodations to clients and enables the

venture to extend their business over web. In any case, internet business has awful effect

7
on disconnected retailers since client’s purchases on low cost from online shops because

of which they additionally need to bring down their costs and doesn’t get any benefits.

 In 2017, Menal Dahiya in her study on “E-Commerce and its Impacts on Market and

Retailers in India” concludes that E-Commerce is very good for us who provides us wide

variety of products and services with a lot of information and attractive pictures at an

affordable price at our premises. But e-commerce has ill effects on the local retailers as

they need to sacrifice their profits to meet the prices on online stores.

 In 2017, Madhurima Khosla and Harish Kumar, in their analytic review “Growth of

E-commerce" mentioned that the paper provides insight into the evolution of e-commerce

in India, while understanding the nitty gritties of its different aspects, with special

emphasis on B2C e-commerce: which has shown tremendous growth in the recent years

due to increased consumer awareness, investor trust and technological proliferation. The

objective was to review the literature available on e-commerce, so as to trace its

development in the Indian Economy while isolating its relevant advantages and

limitations. The study has also produced certain trends and factors which shall propel

further growth in the e-commerce market in India. A sustainable business practice would

be to promote e-commerce and m-commerce as complements rather than substitutes to

traditional business.

 In 2018, Dr.K.R.Dhanalakshmi and S.Shayena, concluded that E-Commerce has good

impact on market like reduce the cost of advertisement as many customers can be

attracted through internet and new brand can be developed, can maintain a good

relationship with customers, but e-commerce has a bad impact on offline retailers because

customer buy products on low price from online stores due to which the retailers lose

their stability.

8
 In 2018, Chandan Kumar in his study on “E-Commerce and Its Impact on Markets &

Retailers: An overview” suggested that e-commerce is just the process of buying and

selling products by electronic means such as by mobile application and the internet. E-

commerce has hugely increased in popularity over the last decades, and in ways, it’s

replacing traditional bricks and mortar stores. Thus, e-commerce has a major impact on

the markets and retail industry in a variety of ways. E-commerce will eliminate mediation

process as producers can sell direct to customers.

 In 2018, Mahipal, D. in his study discusses diverse phases of internet from year 1995

to existing era. Additionally, the study concludes that there will be marvellous progress in

upcoming years provided there is security in legal context and e-commerce so that

domestic and international trade could enlarge.

 In 2018, Kumar, N., in his paper comments about remarkable growth in e-commerce

is predictable to rise 4 times by year 2021 in comparison to 2015. Most important

contributors to this growth are going to be internet users and smart phones, increase in

awareness amongst common public, superior internet services, digitalization of maximum

of the initiatives with the support by government, entry of business players and foreign

investors, advanced payment choices available to consumers nonetheless Government

essential to take steps to deliver suitable legal framework and minimalise problems in

development.

 In 2019, Pallavi Sahu, Priti Dubey, V.K Sahu, in their journal “Growth of e-

commerce in India” stated that doubling the online sales in the last five years, the e-

commerce sector in India has started to take shape and is expected to continue the

phenomenal growth. The speed of the growth in E-commerce in India is remarkable.

Factors such as increased smart phone usage, convenient and economic internet access,

and busy schedules of working professionals etc., have led to the growth of E-commerce.

9
 In 2019, Dr.J.V.Bhalerao, in his journal concluded that potential for business has

grown globally as Internet has become important part of business. The research finding

revealed that risk related to product, monetary risk, risk related to delivery has

noteworthy impact on online shopping attitude. While customers were not much

influenced by time risk. There is insufficient research on ways to get success in online

business. Further research should focus on website technical features and promotional

strategies that will improve trust in using online website. Researcher should focus into

how this mobile technology; internet growth will affect future shopping way and to

understand whether traditional shopping will remain favourable method of shopping in

next few decades.

 In 2021, Hasan Beyari, in his article “Recent e-commerce trends and learning for e-

commerce system development from a quality perspective” mentioned that the year 2020

has seen unprecedented changes to the economies of nearly every country in the world.

These changes have triggered rapid growth of online commerce. This is due to the social

distancing norms, movement and trade restrictions imposed in various countries.

 In 2021, Bhojraj Yashwant Shewale, in his conference paper concluded that there are

great deals of new things occurring in ecommerce. Innovation and individuals are

continually developing, and since ecommerce unites everything, we are continually going

to be looking toward what's to come. E-Commerce has made the shopping easy. The E-

Commerce Industry in India is growing rapidly despites many challenges. E-commerce

industry is one of the largest growing industries in India at present. The sale of

ecommerce industry is expected to grow by almost 4 times by 2021 than the sales of

2015. This unprecedented growth in E-Commerce is due to increase in smart phones and

internet users, 3G/4G internet services, awareness in public, government initiative of

digitalization, advanced shipping and payment options, entry of foreign e-business

10
players etc. Government should take steps to provide a proper legal framework so that

hurdles in the growth of e-commerce are reduced to minimum.

 In 2021, Susmitha Kunchaparthi her article reviewed and deliberated disparagingly

COVID-19 outbreak, we are primarily interested in how corona virus spread and affects

the e-commerce globally. Awareness almost this topic can countersign better information

in people and deliberation to how ecommerce, business, and economies of countries

effected by corona virus. How e-commerce provides alternative way to people to meet

their demands. E-commerce enhanced by COVID-19. How it impacted e-commerce will

be encouraging other researchers to investigate more deeply in this area such as

ecommerce trends how changed by corona and future trends.

11
 CHAPTER – 3

COMPANY PROFILE

AND CONCEPT OF THE STUDY

12
Commerce:

Commerce includes all those activities which play a key role in the transfer of goods from

their place of production (producers) to their place of final consumption (consumers).

In simpler terms, commerce can be defined as all functions connected with the buying and

selling of goods and services. In other words, commerce deals with the movement of goods

from the men who produce them (the producers or the manufactures) to the men who

ultimately consume them (the ultimate consumers).

FIG-3.1: COMMERCE – BYJU’S-https://byjus.com/commerce/

Commerce – History and Evolution:

In historic time, commerce started with the emergence of barter system, when goods were

exchanged for goods. The major problem of barter system was “double coincidence of wants

for example”, if a person wants to build a house and need help of labour and he can offer pots

then the labour must have desire of pots as the transaction cannot take place. The present

13
system of Commerce has not emerged overnight but it is the result of an evolutionary

process.

Commerce is a branch of business which is concerned with exchange and distribution of

goods and services. It comprises of Trade and Auxiliaries to trade. Present day Commerce is

a complex system which includes traders at National level, i.e., wholesalers and retailers and

traders at international level, i.e., export and import. It also includes various auxiliaries or

aids to trade such as transportation, insurance, banking communication, advertisement etc.

The major breakthrough in the commerce came with the following developments:

1. Indigenous banking system

2. Rise of intermediaries

3. Transport

4. Trading communities

5. Merchant corporations

1. Indigenous Banking System:

Indigenous bankers are private firms or individuals, who operate as banks, receive deposits

and give loans like banks, and are different from money lenders as money lender only lends

money, they do not accept deposits but indigenous banks accept deposits as well as lends

money.

2. Rise of Intermediaries:

Intermediaries are the middlemen between surplus units and deficit units or buyer and seller.

There are two types of intermediaries:

1. Financial intermediaries

2. Trading communities or trading intermediaries.

3. Transport:

14
Transport or transportation is the movement of humans, animals and goods from one location

to another. Various Modes of transport are – Land transport, Air transport, Water transport,

Cable, pipeline transport, Space.

4. Trading Communities:

Trading communities are middle men or link between manufacturer and consumer.

There are mainly four types of market intermediaries or trading communities:

1. Agent/broker

2. Distributors

3. Wholesaler

4. Retailer.

i. Agent/Brokers- Agents and brokers sell goods or services on commission.

ii. Distributors- Distributors are generally privately owned and operated companies, selected

by manufacturer. They buy different types of products and sell in a particular geographical

area, example North India distributor.

iii. Wholesaler- Wholesale trade refers to the trade in which goods are sold in large

quantities. The person who carries on wholesale trade is known as wholesaler. Wholesaler

Buys the goods directly from the manufacturer in bulk and sells them in small lots to the

retailer. A wholesaler acts as a middleman between the manufacturer and the retailer.

iv. Retailer- Retail trade is the last link in the distribution chain. It refers to sale of goods in

small lots to the final consumers. A retailer buys goods from a wholesaler and sell them to the

consumer. Retailing need not necessarily be carried on in a shop or store. Retailing includes

selling goods door to door, on television, on telephone on internet.

A retailer may be defined as a dealer in goods and services who purchases from a

manufacturer or wholesaler and sells to the ultimate consumers. The person who carries on

retail trade is called a retailer.

15
5. Merchant Corporations:

These are Financial Institutions which provide business loans and acts as underwriter.

Major roles of Merchant corporations are:

(a) Promotional activities – In India, merchant bankers acts as promoter and conduct

feasibility study.

(b) Advice in project management – They advise regarding the location of the project,

preparation of project report, etc.

(c) Providing finance – Merchant corporations help in providing domestic as well as

international finance.

(d) Brokers in stock exchange – They buy and sell shares in stock exchange on behalf of the

client.

(e) Advise in modernization and expansion – They help and guide companies for

modernisation and expansion.

Commerce – functions and role:

Commerce performs the function of removing hindrances in the smooth flow of goods from

the producers and consumers and thus linking the producers and consumers. It removes the

hindrances of person (through traders), place (through transportation), risk (through

insurance), time (through warehousing and storage), financing (through banking), and

knowledge (through salesmanship, advertising, etc.,) arising in connection with the

distribution of goods and services until they reach the consumers.

The functions and role of commerce are discussed as under:

(i) Linking Producers and Consumers through Traders:

The producers and the consumers of goods are not always situated in the same locality. Thus,

the producer is not able to have direct contact with the consumers to sell his products. There

is a need of persons who could buy products from the producers and sell them to the ultimate

16
consumers. Traders have emerged to serve as a link between the producers and the

consumers. Wholesalers, retailers and mercantile agents operate to remove the hindrance of

person.

(ii) Removing the Hindrance of Place:

Goods may be produced at a place where advantages of location other than the market are

available. The barrier of distance between the place of production and the market where these

products can be sold is removed by different means of transport. Besides transport, the

services of insurance to cover the risk of loss during transit and storage, and packaging to

protect goods against damage and pilferage, are also aimed at removing the hindrance of

place.

(iii) Removing the Hindrance of Storage:

Goods, in modern times, are produced in anticipation of demand and as such they are to be

stored till the demand for the same comes up. The function of storage is performed by

warehouses which remove the hindrance of time by balancing the time lag between

production and consumption, thus creating time utility. During the process of storage,

insurance plays its role by providing a cover against the risk of loss or damage through theft

or fire.

(iv) Covering the Risks in Trade:

There are a number of risks in any business activity. These can be covered with the help of

insurance companies. Insurance companies undertake to make good the loss by receiving a

small amount of premium in advance as consideration.

(v) Financing of Economic Activities:

Both businessmen and consumers may face the problem of finance. This problem is solved

by the banks and other financial institutions. Businessmen need funds for meeting their

working capital requirements. Banks help them by granting loans, cash credit and overdraft

17
facilities. Consumers also need funds to purchase luxury items such as – car, T.V.,

refrigerator, etc. Banks help the consumers by offering consumer loans.

(vi) Providing Information through Advertising:

A producer may find it difficult to bring to the knowledge of the prospective consumers the

utility and the distinctive features of his products. Advertising and salesmanship help to

remove the hindrance of knowledge on the part of the prospective buyers. It brings to their

notice the utility of the goods and services offered.

18
E-commerce:

E-commerce is also known as electronic commerce. It is the activity of electronically buying

and selling of products on online service or over the internet. E-commerce relies on

technologies such as mobile commerce, electronic funds transfer, supply chain management,

etc. E-commerce is in turn driven by the technological advances of the semiconductor

industry and is the largest sector of the electronics industry. In India, the information

technology act, 2000 governs the basic applicability of e-commerce.

 E-commerce businesses may also employ some of the following:

 Online shopping for retail sales direct to consumers via web sites and mobile apps,

and conversational commerce via live chat, chatbots ,and voice assistants;

 Providing or participating in online marketplaces, which process third-party business-

to-consumer (B2C) or consumer-to-consumer (C2C) sales;

 Business-to-business (B2B) buying and selling;

 Gathering and using demographic data through web contacts and social media;

 B2B electronic data interchange;

 Marketing to prospective and established customers by e-mail or fax (for example,

with newsletters);

 Engaging in pretail for launching new products and services;

 Online financial exchanges for currency exchanges or trading purposes.

19
 FIG-3.2: E-COMMERCE - https://co-well.vn/en/tech-blog/why-is-ecommerce-important-

for-your-business/

Types of E-commerce:

Generally, there are six main models of e-commerce that a business can be categorized into

1. B2C (Business to consumer)

2. B2B (Business to business)

3. C2C (customer to customer)

4. C2B (Customer to business)

5. B2A (Business to administration)

6. C2A (Customer to administration)

1. B2C: B2C e-commerce confines to transactions made between a business and a

customer. B2C is one of the most popular sales models in the e-commerce context.

Example: when you buy shoes from an online shoe retailer, it’s a business to customer

transaction.

2.B2B: Unlike B2C, B2B e-commerce confines to sales made between businesses, such as

a manufacturer and a wholesaler or retailer. B2B is not consumer facing and happens only

between businesses.

3.C2C: C2C is one of the earliest forms of e-commerce. customer to customer relates to the

sale of products or services between customers. This includes C2C selling relationship, such

as those seen on eBay or amazon

4. C2B: C2B reverses the traditional e-commerce model, means individual customers make

their products or services available for business buyers.

Example: the iStock photo business model in which stock photos are available online for

purchase directly from different photographers.

20
5.B2A: B2A covers the transactions made between made between online business and

administration.

Example: the products/services related to legal documents, social security, etc.

6. C2A: C2A is similar to B2A, but customers sell online products or services to an

administration. C2A might include online consulting for education, online tax preparation,

etc.

HISTORY OF E-COMMERCE:

E-Commerce was introduced about 40 years ago in its earliest form.

E-commerce Timeline:

1969: CompuServe is founded

1979: Michael Aldrich invents electronic shopping.

1982: Boston computer exchange launches.

1992: Book stacks unlimited launches as first online book marketplace.

1994: Netscape navigator launches as a web browser.

1995: Amazon launch.

1998: PayPal launches as an ecommerce payment system.

1999: Alibaba launches.

2000: Google introduces Google Awards as an online advertising tool.

2004: Shopify launches.

2005: Amazon introduces Amazon prime membership.

: Etsy launches.

2009: Big commerce launches.

2011: Google wallet introduced as a digital payment method.

: Facebook rolls out sponsored stories as a form of early advertising.

: Stripe launches.

21
2014: Apple pay introduced as a mobile payment method.

: Jet.com launches.

2017: Shoppable Instagram is introduced.

: Cyber Monday sales exceed $6.5B.

2020: Covid-19 drives e-commerce growth.

FIG-3.3: TIMELINE OF E-COMMERCE - https://visual.ly/community/Infographics/social-

media/history-ecommerce

22
Advantages of E-commerce:

1. Faster buying for customers.

2. Companies can easily reach new customers.

3. Lower operational costs.

4. Personalized experiences.

5. Affordable advertising and marketing.

6. Flexibility for customers.

7. Product and price comparison.

8. Faster response to buyer/market demands.

9. Several payment modes.

Disadvantages of E-commerce:

1. Limited interactions with customers.

2. Technology breakdowns can impact ability to sell.

3. No ability to test or try on.

4. E-commerce is highly competitive.

5. Shipping times can be lengthy.

23
 E-Commerce Joints In India:

1.Amazon: Amazon is said to have an audience reach of 89%

in India, according to Statista. True to the overall statistics that

the primary e-commerce category in India is electronics, the

FIG-3.4: Amazon logo audience interest in Amazon leans towards this category. However,

they also provide a range of other products in categories including Echo and Alexa, Amazon

prime digital media, men's and women's fashion, home, groceries, sports, automotive and

more.

2. Flipkart: Flipkart is an Indian e-commerce success story,

putting up great competition against the international heavy

weights. Founded in 2007 in India, Flipkart is a purely

online variety store that in 2018, sold 77% of itself to

Walmart for USD $16 Billion. Following the same trends as

FIG-3.5: Flipkart logo Amazon, Flipkart is the most popular amongst its customers

for goods in the electronic category. However, it also stocks a wide variety of products,

including TV’s and appliances, fashion, furniture, sports, books and more.

3. Alibaba: Alibaba is an internationally recognized major player

in the e-commerce market, founded in china in 1999. Owned by

Alibaba Group holding, a massive multinational company that

specializes in all things online from e-commerce to online retail,

24
FIG-3.6: Alibaba logo internet and technology. Alibaba is a force in the international e-

commerce space. Aliababa has a similar product category as Flipkart

4.Snapdeal: Another Indian founded e-commerce gaint,

Snapdeal is an online variety shopping platform that has

gained much attention from customers and investors alike.

Snapdeal launched in 2010, the largest category shopped

FIG-3.7: Snapdeal logo from it is electronics, the online store also offers other

product categories including home and kitchen, fashion, toys, beauty, health, books and more.

5.Myntra: Myntra is a pure play e-commerce site launched out

of India in 2007, which has since gone on to become one of the

premier fashion, home and lifestyle e-commerce sites in the

country. Its 2014 sale to Flipkart, in addition to the acquisition of

competitor Jabong.com has helped it to grow even further. As a

FIG-3.8: Myntra logo fashion retailer, Myntra stocks a range of goods from a wide

variety of international and local brands, covering menswear, womenswear, kidswear and

home.

6.IndiaMart: IndiaMart is the largest online business to

business marketplace in the country, founded in 1999 to connect

buyers and suppliers. Today, IndiaMart has around 60% market

share of the online B2B classifieds sector in India. IndiaMart

FIG-3.9: Indiamart logo connects manufacturers, suppliers, exporters, allowing them to

promote and expose their products to one another via the platform.

25
 7.BookMyShow: BookMyShow India is the

number one online ticket vendor in India. Since

opening its doors in 2007, it has grown to

provide ticketing services in five countries

including United Arab Emirates, Srilanka , The

FIG-3.10: Bookmyshow logo West Indies and Indonesia. Covering movies,

events, plays, sports, activities and ticket to monuments, as well as selling fan merchandise,

BMS is India’s one stop show to book entertainment.

26
27
E-commerce Started in Founder Monthly Revenue

platform visitors

1.Amazon 1994 Jeff Bezos 322.54 M 38606.4 cr (2020)

2.Flipkart 2007 Binny Bansal 242.62 M 43615 cr (2019)

Sachin Bansal

3.Alibaba 1999 Jack Ma 175.95 M 71728.9 cr (2021)

4.Snapdeal 2010 Kunal Bahl 56.41 M 925 cr (2019)

Rohit Bansal

5.Myntra 2007 Mukesh Bansal 48.03 M 2466.6 cr (2021)

Ashutosh Lawaria

Vineet Saxena

6.IndiaMart 1996 Dinesh Agarwal 47.23 M 403.5 cr (2018)

7.BookMyShow 1999 Ashish Hemrajani 43.25 M 563 cr (2020)

Parikshit Dar

Rajesh Balpande

8.Nykaa 2012 falguni Nayar 20.84 M 2440 cr (2021)

9.FirstCry 2010 Supam Maheshwari 16.94 M 897 cr (2020)

Sanket Hattimattur

Prashant Jadhav

Amitava Saha

10.1mg 2015 Prashant Tandon 14.62 M 357.9 cr (2020)

Vikas Chauhan

Gaurav Agarwal

Table no-3.1: e-commerce websites data

28
Retail:

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale

to business or institutional customers. A retailer purchases goods in large quantities from

manufacturers, directly

through a wholesaler and then

sells in smaller quantities to

consumers for a profit.

Retailers are the final link in

the supply chain from

producers to consumers.

Retail markets and shops

have a very ancient history FIG-3.11- RETAIL-https://www.freshworks.com/crm/industries/retail/

over the centuries, retail shops were transformed from little more than “rude booths” to

shopping malls of the modern era. Most modern retailers typically make a variety of strategic

level decisions including the type of stores, the market to be served, the optimal product

assortment, customer services, supporting services and the stores overall market positioning.

Retail shops occurs in a diverse range of types and in many different contexts – from strip

shopping centres in residential streets through to large indoor shopping malls, shopping

streets may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or

full roof to create a more comfortable shopping environment protecting customers from

weather conditions such as extreme temperatures, winds or rains.

29
Types of Retails (Retail types):

Retail comes in many shapes and sizes; each one comes with its own pros and cons.

Depending on the type of business, one retail model may be a better fit than others. The

following are some types of retails.

1. Independent Retailer

2. Existing Retail business

3. Franchise

4. Dealership

5. Network marketing.

 Independent Retailer: An independent retailer is someone who builds his/her

business from the ground up. Usually, the owner does it all, but he/she may have

assistants or hire someone.

 Existing Retail business: An existing retail business is a retail business that is up and

running. Typically, someone inherits or buys an existing business and takes over its

ownership and responsibilities.

 Franchise: A franchise is an existing business plan, including a trademark name. If a

retailer wants to become a part of franchise, they are granted permission to use the

elements of the franchise business.

 Dealership: A dealership is a cross between a franchise and an independent retailer.

A retailer that works with a dealership has the license to sell a brand of products.

 Network Marketing: Network marketing or multi-level marketing is a business

model where the selling of products depends on the people in the network. On the one

30
 hand, a person sells products but at the same time other sales people are being

recruited to sell the same goods.

History Of Retail:

Barter system is considered as the oldest form of doing business. Then is it haats,

mandis and melas which were the retail formats that have been part of Indian

landscape in the medieval period. For centuries, most merchandise was sold in these

retail formats at the local market place that operated weekly by displaying their

products. At the time of independence in 1947, India was in poverty with low per

captia income. Retail was more focused on fulfilling basic necessities rather than

luxury items. Accordingly kirana stores formed the basis for the emergence of retail in

India.

The evolution of PDS (Public Distribution System) of grains in

India having its origin in the rationing system introduced by the British during

worldwar-II. The economy began to open up in the 1980’s resulting in the change of

retailing. Bombay Dyeing, S Kumar’s and Raymonds are the companies that came

with retail chains in textile sector. Later Titan launched retail showrooms in the

organized retail sector.

 Stages of evolution of retail in India :

1. Pre economic reforms stage (before 1990)

2. Post economic reforms stage (1990-2005)

3. Retail expansion stage (2005-2010)

4. Consolidation stage (2010 onwards)

1. Pre economic reforms stage: This stage was basically dominated by manufacturers setting

up their own retail outlets. This was initiated by government establishing mother dairy, super

31
bazaars and private brands like Bombay Dyeing, Raymonds, S Kumars’s in apparel business,

established their retail outlets across the country. These were followed by Bata in footwear

and RPG groups food world in the supermarket segment.

2. post economic reforms stage: Modern retail took off in India with the liberalisation and

globalisation of India economy in the early 1990’s. Due to the initiation of this policy, Indian

markets have witnessed increase in consumer purchasing power. Shopping malls emerged in

the urban areas giving a world class experience to the customers. Eventually hypermarkets

and supermarkets emerged. Pure play retailers entered the Indian retail market. Pantaloons,

shoppers stop and lifestyle set up their chain of outlets. Subsequently international brands

made entry into India included the McDonald’s, Benetton, Levi Strauss, Adidas, Reebok and

Nike, etc.

3. Retail expansion stage: This is probably the most dynamics period of the Indian retail

industry in terms of growth. With virtually unlimited potential on desk, Reliance, Tata,

Aditya Birla and Mahindra entered the market. The FDI policy initiated by government in

2005-06 allowing single brand foreign retailers to take up to 51% stake in a joint venture with

a local firm, saw the entry of several premium brands like Gucci, Walmart, Armani, etc.

4. Consolidation stage: Organised retail in India, today holds a fraction (8%) of the market

share in India. The brick and mortar retailers have to do things to achieve scale and amid

increasing consumption and competition, there is a scramble among serious players to

increase scale through mergers and acquisitions. Last year giants like Reliance, Mahindra and

future group expanded their own online ventures to take on players like Amazon, Flipkart and

snapdeal.

32
Advantages of Retail:

1. Customers empathy

2. Greater supply options

3. Greater Business opportunities

4. Fewer complexities

5. Creates a competitive environment

Disadvantages of Retail:

1. Difficult to sell to large retailers

2. Lower profit margins

3. Impersonal

4. Competition

33
Popular retail stores in India:

1.Big Bazaar: Big Bazaar an Indian retail chain of

hypermarket, discount department stores and grocery stores.

The retail chain was founded by Kishore Biyani under his

parents organisation “future group”. Big Bazaar is also the

parent chain of food bazaar, fashion at Big bazaar, popularly

known as “FBB”. In 2020, Big Bazaar was acquire reliance

FIG-3.12: Big bazaar logo retail.

2.Max fashion: Max fashion is an emirati fashion brand

under the banner of the Mumbai based landmark group. The

brand was first launched in may 2004, in middle east in

UAE. In the year 2006, The max fashion launched its first

store in Indore, India. Max has its own private label clothing

for men, women and children along with footwear, home and

FIG-3.13: Max fashion logo accessories.

3.Reliance fresh: Reliance fresh is the convenience

store format which forms part of the retail business of

Reliance Industries of India under its subsidiary

reliance retail. Reliance fresh is a one stop for fresh

shopping, fresh saving. The various products at the

34
FIG-3.14: Reliance fresh logo stores are fresh fruits, vegetables, dairy products,

processed food, beverages and personal care products.

4.Croma: Croma is an Indian retail chain of

consumer electronic and durables run by

infinity retail, a subsidiary of the Tata group. Its

product range covers more than 500 products

across the electronics and durable

FIG-3.15: Croma logo categories

5. Shoppers stop: Shoppers stop is

an Indian department store chain,

owned by the K Raheja corporation.

FIG-3.16: Shoppers stop logo It mainly deals with clothing,

cosmetics, accessories, handbags, shoes, jewellery, fragrance, cosmetics, health and beauty

products, etc. The first store was opened in Andheri, Mumbai on 27th October 1991.

6. Kalyan jewellers: Kalyan jewellers is an Indian chain

of jewellery showrooms. Kalyan jewellers strengthened

their presence in the south Indian states of kerala, Tamil

Nadu, Karnataka, Andhra Pradesh, Telangana. The

company has also setup “My Kalyan”, a customer service

centre, offering advance booking for wedding purchases,

Kalyan gold purchase advance scheme, Gold insurance

FIG-3.17: Kalyan jewellers logo for gold ornaments, etc.

35
 7.Dmart: Dmart is an Indian Retail, retail corporation

that operates a chain of hypermarkets in India. It was

founded by Radhakishan Damani in 2002. Dmart is a one

stop supermarket chain that aims to offer customer a

wide variety range of basic home and personal products

under one roof. Dmart stores is owned and operated by

Avenue Supermarts Ltd. The company has its

FIG-3.18: Dmart logo headquarters in Mumbai.

8. More supermarket : More Retail private Ltd is an omni

channel grocery brand which was previously known as Aditya

Birla Retail Ltd. More retail Ltd provides customers products

under its own labels. Aditya Birla Group entered the retail

industry with the acquisition of Trinethra super retail in 2007.

FIG-3.19: More supermarket logo

9. Ratnadeep retailing: Ratnadeep Retail Private Ltd is a private incorporated on 7 feb 1995.

It deals with products and services such as grocery, general merchandise, imported food

products, etc.

FIG-3.20: Ratnadeep logo

36
Company Name Started in Founder Number of locations

(stores)

1. Big Bazaar 2001 Kishore Biyani 295

2. Max Fashion 2004 Shital Mehta (CEO) 200+

3. Reliance fresh 2006 Mukesh Ambani 700+

4. Croma 2006 Avijit Mitra 300

5. Shoppers Stop 1991 K.Raheja corporation group 216

6. Kalyan jewellers 1993 T.S.Kalyanaraman 761

7. DMart 2002 Radhakishan Damani 263

8. More Supermarket 2007 Kumar Mangalam Birla 752 - Supermarts

31- Hypermarts

9. Ratnadeep 1987 Sandeep Agarwal 100+

Table no-3.2: Retail companies and their info

37
CONCEPT OF E-RETAILING:

Online retailing also known as online shopping is a form of electronic commerce which

allows consumers to buy goods and services directly from a seller over online channel.

Online retail is convenient due to its 24 hour availability, global reach, etc. Online retailing is

a subset of e-commerce and refers to the purchase and sale of goods between consumers and

retailers using the internet.

PROCESS:

Online visiting of the site

(pickup items to be purchased)

Confirming/finalising

Make the payment

Order confirmation

SMS/email update will be sent

FIG-3.21: Process of e-retailing

38
Characteristics of an e-retailer:

1. Hardwork

2. Entrepreneurial spirit

3. Careful business planning and willing to take risks

4. Need for achievement

5. Self-Confindence and passion for the business.

Benefits of e-retail to a seller:

1. Increased sales opportunities and decreased transaction costs.

2. Ability to operate 24/7

3. Ability to reach narrow market segment

4. Increased speed and accuracy of information exchange

5. Ability to maintain strong customer relationship.

Benefits of e-retailing to a buyer:

1. Wider product availability and wider buying options

2. Ability to shop 24/7 and easy comparison shopping

39
3. Quick delivery of digital products

4. Ability to create a one-on-one relationship.

FIG-3.22: Steps of launching an online retail store

40
STUDY ON LOCAL RETAILERS PROBLEMS:

Here are some challenges retailing business:

1. Lack of Technology Adoption:

The availability, feasibility and adoption of technology is the major challenge faced by the

Indian retail outlets. Technology is being used for the day to day functioning the retail out

lets like billing and payments, prevention of shrinkage, keeping record of stock, supply chain

management. But the scope of technology is wider. Other software can be used like RFID for

understanding customer preference, CRM for customer relationship management and ERP

tools for other activities of the outlets. Indian retail outlets need to adopt technology and use

different high end software for managing the functioning of retail outlets.

2. Lack of Infrastructure and Logistics:

Lack of infrastructure and logistics is the another challenge faced by organized retail

industry. Inefficient infrastructure and logistics is resulting in inefficient processes. This is

the major hindrance of the retailers as non-efficient distribution channel is very difficult to

handle and results in huge losses. Infrastructure does not have strong base in India.

Organization and Globalization are compelling companies to develop infrastructure facilities

transportation including railway system has to be more efficient. Highway has to meet global

standards. Airport capacities and power supply has to be enhanced. Warehouse facilities and

timely distribution are other areas of challenge. To fully utilize India's potential in retail

sector, these major obstacles have to be removed.

3. Scarcity of Skilled Workforce:

The Indian organized retail players spend more than 7% of the sales towards personnel cost.

Huge cost is incurred in training of the employees. The retail industry faces attrition rate as

41
high as 50% which is very high as compared to the other sectors. Industry has to pay more in

order to retain the trained man power. Store operations accounts for 70-80% of the total man

power of the organized retail sector. Unfortunately, there are very few specific courses for

retail industry. Graduates and Post graduates from the other streams are hired and are trained

in retail sector.

4. Frauds in Retail:

Retail shrinkage is one of the primary challenge that companies would have to face. Retail

shrinkage is the difference between the value of the stock as per the books and the actual

stock available in the outlet. Frauds, including vendor frauds, theft, shoplifting and

inaccuracy in supervision and administration are the challenges that are difficult to handle.

This is so even after the use of security techniques such as CCTV and POS system. As the

size of sector increases, this would increase the number of thefts, frauds and discrepancies in

the system.

5. Inefficient Supply Chain Management:

Delivering the right goods at right time at right place is very important . In India, there is lack

of efficient Supply Chain Management. In India supply chain management should be

improved and more technology need to be used to make the supply chain management

effective and reduce the inventory cost. .Savings can be used to provide extra discounts and

benefits to the customers and more money can be spent on customer retention.

6. Price War:

There is price war between different retail organizations. Every organization is trying to

provide goods at low cost and offers various lucrative promotional schemes. In such

42
situation, it is difficult to attain customer loyalty and companies keep marginal profit to

provide the goods at competitive prices.

7. Cultural Diversity:

India's huge size and socio economic and cultural diversity means there is no established

mode or consumption pattern through out the country. The manufacturers and retailers will

have to devise strategies for different sectors and segments which by itself would be

challenging.

8. Complexity in Tax Structure:

In India tax structure is very complex. This tax structure complexity is another major

challenge for Indian retail outlets. The sale tax vary from state to state while organized player

have to face multiple point control and system. In many locations, retailers have to face a

multi point octroi with the introduction of Value Added Tax (VAT )in 2005. Certain

anomalies in the existing sale tax system causing disruption in the supply chain are, however,

likely to get corrected over a period of time.

9. Escalating land and rental prices:

Huge growth of retail industry has created a huge demand for the real estate. This is leading

to increase in property prices. Starting a new store needs huge investment in purchasing a

land. This huge investment is also a challenge for the retail outlets. Rental prices are also

increasing, leading to increase in the over all costing.

43
10. Competition from Unorganized Retail:

Competition from the unorganized retail sector is the major challenge for the organized retail

outlets. Unorganized retail sector includes mom-and- pop kirana stores. These are low cost

structures normally operated by the owners and has almost negligible real estate cost, labor

cost and they have to pay no or very less taxes and are very near to the residential area or

generally in the residential areas. They also have started offers and discounts to attain

customers loyalty and providing free home delivery facilities. Kirana stores also providing

credit to the regular customers. So this is the major challenge for the retail outlets.

11. Online selling companies:

These days so many online marketing companies are coming up. These companies are

providing goods to the customer at their door step and at lesser prices when compared with

retail outlets. Online companies are providing so many lucrative offers to the customers. So

this is also a major challenge for the retail outlets.

12. Power Supply Problem:

In India Big organized retail outlets requires high volume of electricity for lighting,

airconditioning, escalators, cold storing, billing system, lifts etc. In fact in the absence of

power organized retail outlets cant survive. There is a huge problem of electricity in India.

Long power cuts are very often in India. Because of inadequate power supply retail outlets

need to invest huge money on generators for power back ups. Tariff for consumption of

power supply is also very high for retail outlets. This leads to increase in the costing of the

retail outlets.

44
13. High Cost of Operation:

Retail outlets has to incur very high cost of operation. This is on account of high labor cost,

training cost of human resource, social security to employees, high real estate cost and

rentals, air conditioning, power back ups cost, high maintenance cost, high electricity tariffs,

high taxes, investment in supply chain and logistics, investment in technology, high

investment in equipments and fixtures to give modern look to the store, CCTV's cost etc. So

retail outlets has to incur high cost of operation still they have to provide goods to the

customers at lower prices. This is a big challenge for the retail outlet.

14. Government Opposition to FDI:

Government opposition to FDI is the other major challenge for organized retail. Retail is one

of the few sectors where FDI is restricted. In the era of Globalization and liberalization the

time is not far when the retail sector has to face competition from international retailers. FDI

in retail will allow the foreign retailers to operate their functioning in India which will lead to

high competition and resulting in to low price of good in Indian market. This will make

Indian economy stronger.

15. Understanding customer:

These days it is very difficult to understand the customer behavior. So many factors plays an

important role in effecting te customer behaviour and loyalty such as product quality, service

quality, customer satisfaction, promotions, offers provided by other players in the market. To

attain the customer loyalty so much of efforts are required to understand the customer

behaviour and regular market survey is required.

45
16. Ever-increasing customer demand:

Ever increasing demand of the customers is also a challenge to the retail outlets. These days

because of Globalization awareness among the customers is increasing. Customers

psychology is changing and becoming more demanding. They want to pay less for more and

more. Because of high operating cost it is very difficult to meet the customer demand. So this

is also a great challenge for the retail outlets of India.

46
47
Tip for Small Business Owners
 A need for a Communist system in the economy, at least where there is no

competition and the economic decisions are taken as a whole.

 It is planned by central government authority and organized along with a top-down

administration where the planners decide decisions regarding production output

requirements and investments.

 Also, there should be government rules and regulations on these portals which restrict

them to sell products to certain minimum costs. Even if it is under the name of a

festival dhamaka or big sale on any new year or end of season sale, they can not just

sell the products at any cost, which attracts a crowd of consumers waiting to buy low-

priced products under that offer.

 The customers who are choosing to buy products online also play a key role here.

They must realise now that their money which is going to big companies should be

helping the small businesses. This could be their contribution towards the society that

they stick to the brick-and-mortar shops and make online purchases only in the

situation of high need. This will also demand some education to the young generation

about the pros and cons of online shopping, not as a consumer but from the point of

view of a businessman.

 Moreover, in this scenario, the small and medium industries should now also include

digital marketing or selling; if not, there are chances that they lose the market. They

must have an online presence.

 There are so many platforms for a quick start. They can opt for making their

application and sell the products directly. Or else, they can get the membership of

existing portals, which helps them to reach a large audience. This will be a great tip

for small business owners like retailers, wholesalers, etc.

48
 CHAPTER- 4
DATA ANALYSIS AND
INTERPRETATION

49
1.

Source: primary data

Fig-4.1: Age group

Interpretation:

Above representation shows the age group of the respondents. Out of the 100 respondents 70

are above the age 18, 11 are under the age group of 25-35, 12 are under the age group of 35-

45 and 7 are under the age group of 45-55.

50
2.

Source: primary data

Fig -4.2: gender

Interpretation:

From the above representation, out of 100 respondents, 51 are male, 48 are female and 1

belongs to other gender.

51
3.

Source: primary data

Fig-4.3: how often do you shop online?

Interpretation:

From the above representation of 100 respondents, 41 people often shop online, 33 people

shop online quite often, 24 people shop online not often and 2 people never shop online. So

we can interpret that the most of the people often shop online.

52
4.

Source: primary data

Fig-4.4: how often do you shop offline?

Interpretation:

From the above representation of 100 respondents, 44 of them often shop offline, 39 of them

quite often shop offline, 14 of them shop offline not often and 3 people never shop offline. So

we can interpret that most of the people often shop offline in retail stores too.

53
5.

Source: primary data

Fig-4.5: which commodities do you prefer to shop online?

Interpretation:

From the above graph of 100 respondents, 68 people prefer clothing and accessories to shop

online, 48 people prefer shopping electronic gadgets online, 29 people prefer shopping

cosmetics online, 25 people prefer shopping groceries online, 19 people prefer medicines, 18

prefer others and 6 people prefer furniture to shop online. So we can interpret that most of the

people prefer clothing and accessories to shop online over internet.

54
6.

Source: primary data

Fig-4.6: which commodities do you prefer to shop offline?

Interpretation:

From the above representation of 100 respondents, 68 people prefer groceries to shop offline

at retail shops, 61 people prefer shopping medicines offline, 44 people prefer shopping

furniture offline, 38 people prefer shopping cosmetics, electronic gadgets, clothing and

accessories offline and 26 prefer others. So we can interpret that most of the people

choose/prefer groceries to shop offline in a retail store.

55
7.

Source: primary data

Fig-4.7: which e-commerce platform do you prefer to purchase any products?

Interpretation:

From the above representation of 100 respondents, 67 of people choose amazon for

purchasing any product online, 14 choose flipkart, 12 people choose myntra, 7 people choose

other e-commerce platform for online purchases. So we can interpret that most of the people

prefer Amazon as e-commerce platform for online shopping due to its immense popularity

and the services provided by them.

56
8.

Source: primary data

Fig-4.8: which retail store do you prefer to purchase any product?

Interpretation:

From the above representation of 100 respondents, 48 people choose D-Mart for purchasing

any products, 20 choose Ratnadeep, 6 people choose Reliance, 4 people choose Big Bazaar,

More supermarket, Vijetha and 14 choose other retail stores for purchasing any product

offline. So we can interpret that most of the people prefer D-Mart as retail store to purchase

any product due to the availability of different products under one roof.

57
9.

Source: primary data

Fig-4.9: How much do you spend on online shopping every month?

Interpretation:

From the above bar graph of 100 respondents, 40 people spend 1000-3000 on online

shopping every month, 42 people spend less than 1000, 11 people spend 3000-6000, 5 people

spend more than 9000 and 2 people spend 6000-9000 every month on online shopping. So we

can interpret that most of the people spend less than 1000 on online shopping every month.

58
10.

Source: primary data

Fig -4.10: How much do you spend on shopping offline retail store every month?

Interpretation:

From the above bar graph of 100 respondents, 35 people spend 1000-3000 on shopping

offline every month, 25 people spend 3000-6000, 19 people spend less than 1000, 11 people

spend 6000-9000 and 10 people spend more than 9000 every month on shopping offline retail

stores. So we can interpret that most of the people spend 1000-3000 on shopping offline

every month.

59
11.

Source: primary data

Fig -4.11: Do you use internet to get information before purchasing any product?

Interpretation:

From the above representation of 100 respondents, 91 people use internet to get information

before purchasing any product and 9 do not use internet to get information before purchasing

any product.

60
12.

Source: primary data

Fig -4.12: which source of information would you prefer before purchasing any product?

Interpretation:

From the above bar chart of 100 respondents, 70 people get information through customers

reports and reviews, 16 people get information through social media and 14 get information

from advertisement before purchasing any product. So we can interpret that majority of

people get information through customer reports and reviews before purchasing any product.

61
13.

Source: primary data

Fig -4.13: How is the quality of the product purchased online?

Interpretation:

From the above representation of 100 respondents, 74 people find quality of the product

purchased online as good, 23 people find it very good while 3 people find the quality of

product cheap which is purchased online. So we can interpret that majority of people find the

quality of product purchased online as good.

62
14.

Source: primary data

Fig -4.14: How is the quality of product purchased offline retail store?

Interpretation:

From the above representation of 100 respondents, 53 people find the quality of product

purchased offline retail store as very good, 44 people find it good, 2 people can’t say and 1

people find the quality cheap for products purchased offline retail store. So we can interpret

that majority of people find the quality as very good for the products purchased on offline

retail store.

63
15.

Source: primary data

Fig-4.15: Are you convenient conducting online purchase?

Interpretation:

From the above representation of 100 respondents, 83 people are convenient in conducting

online purchase while 17 are not convenient in conducting online purchase. So we can

interpret that most of the people are convenient in conducting online purchase.

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16.

Source: primary data

Fig-4.16: On what parameters do you prefer online shopping rather than retail store?

Interpretation:

From the above bar graph of 100 respondents, 44 people choose pricing as the parameter for

online shopping rather than retail stores,25 choose product catalogue, 19 choose product

information and 12 people prefer payment experience as the parameter to shop online rather

than offline retail stores. So we can interpret that most of the people choose pricing as the

parameter for online shopping rather than retail stores.

65
17.

Source: primary data

Fig-4.17: What is the biggest challenge you face with shopping online?

Interpretation:

From the above bar graph of 100 respondents, 52 people find non-availability of products as

the biggest challenge with shopping online, 22 find flexible payment methods on certain

products as the challenge, 17 find slow checkout time as a challenge and 9 people find slow

webpage response as the biggest challenge with shopping online. So we can interpret that

majority of the people find non-availability of products as the biggest challenge with

shopping online.

66
18.

Source: primary data

Fig-4.18: What is the biggest challenge you face with shopping offline retail store?

Interpretation:

From the above bar graph of 100 respondents, 40 people find limited products as the biggest

challenge when shopping offline, 13 people find additional charges as the biggest challenge,

28 find less discounts as the biggest challenge and 19 people find unclear product information

as the biggest challenge when shopping at offline retail stores. So we can interpret that

majority of people find limited products as the biggest challenge when shopping at offline

retail stores.

67
19.

Source: primary data

Fig-4.19: Where do you find better/best discounts?

Interpretation:

From the above representation of 100 respondents, 73 people find better discounts on online

shopping and 27 people find best discounts in traditional retail market. So we can interpret

that most of the people find better/best discounts on online shopping.

68
20.

Source: primary data

Fig-4.20: why do you prefer shopping at local shops or retail markets?

Interpretation:

From the above bar graph of 100 respondents, 32 people prefer shopping at local shops

because it is fun place to visit, 18 prefer because being around other people, 40 prefer to

experience new things, 61 prefer because to touch and see the products and 32 people prefer

shopping at local shops or retail market because of personal assistance they get. So we can

interpret that majority of people prefer shopping at local retail shop to see and touch the

product.

69
21.

Source: primary data

Fig -4.21: why do you prefer shopping online?

Interpretation:

From the above bar graph of 100 respondents, 65 people prefer shopping online because they

find it time saving, 35 people prefer because of low prices, 38 people prefer because of

convenience and 39 prefer shopping online because of great discounts that are available

online. So we can interpret that majority of the people prefer shopping online because of time

saving.

70
22.

Source: primary data

Fig -4.22: How likely are you to recommend online shopping to other shoppers?

Interpretation:

From the above representation of 100 respondents, 58 people are somewhat likely to

recommend online shopping to other shoppers, 35 people are very likely to recommend and 7

people are very unlikely to recommend online shopping to others. So we can interpret that

majority of the people are somewhat likely to recommend online shopping to other shoppers.

71
23.

Do you agree that e-commerce as commercial means has its

advantages over the traditional commercial methods?

Source: primary data

Fig-4.23: Do you agree that e-commerce as commercial means has its advantages over the

traditional commercial methods?

Interpretation:

From the above representation of 100 respondents, 33 people agree that e-commerce as

commercial means has its advantages over the traditional commercial methods, 52 are

neutral, 6 strongly disagree, 5 people disagree, 4 people strongly agree that e-commerce has

its advantages over traditional commercial methods. So we can interpret that most of the

people are neutral in case of agreeing that e-commerce as commercial means has its

advantages over the traditional commercial methods.

72
24.

Source: primary data

Fig-4.24: Do you agree that e-commerce can provide an alternative marketing channel by

eliminating middlemen?

Interpretation:

From the above representation of 100 respondents, 43 people agree that e-commerce can

provide an alternative marketing channel by eliminating middlemen, 40 people are neutral, 6

people disagree, 5 people strongly agree and 6 people strongly disagree. So we can interpret

that most of the people agree that e-commerce can provide an alternative marketing channel

by eliminating middlemen.

73
25.

Source: primary data

Fig-4.25: which facility makes a traditional retail market better than e-commerce market?

Interpretation:

From the above bar graph of 100 respondents, 31 people believe that having personal one on

one conversation makes a traditional retail market better than e-commerce, 30 people believe

that finding better price by visiting more retail shops, 27 people believe that having

bargaining power and 12 people believe that delivery timings makes a traditional retail

market (local shops) better than e-commerce. So we can interpret that most of the people

believe that having personal one on one conversation makes a traditional retail market (local

shops) better than e-commerce.

74
26.

Source: primary data

Fig-4.26: Is e-commerce killing the traditional retail markets?

Interpretation:

From the above representation of 100 respondents, 68 people agrees that e-commerce is

killing the traditional retail market and 32 people disagrees about the statement, “ e-

commerce is killing the traditional retail market”. So we can interpret that majority of the

people agrees that e-commerce is killing the traditional retail market.

75
27.

Source: primary data

Fig-4.27: How do you rate e-commerce in India?

Interpretation:

From the above bar graph of 100 respondents, 1 person rated e-commerce in India as very

bad, 2 people rated as bad, 41 people rated as moderate, 43 rated as good and 13 people rated

e-commerce in India as excellent. So we can interpret that most of the people find e-

commerce as good in India

76
28.

Source: primary data

Fig -4.28: How do you rate traditional retail market in India?

Interpretation:

From the above graph of 100 respondents, 2 people rated traditional market in India as very

bad, 2 rated as bad, 34 people rated as moderate, 47 people rated as good and 15 people rated

traditional market in India as excellent. So we can interpret that most of the people find the

traditional market in India as good.

77
29.

Source: primary data

Fig-4.29: Which one do you prefer?

Interpretation:

From the above representation of 100 respondents, 41 people prefer online market (e-

commerce) and 59 people prefer traditional retail market. So we can interpret that majority of

the people are comfortable purchasing products from retail shops. As mentioned by majority

of respondents that they are very much into retail market for various reasons.

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CHAPTER – 5

FINDINGS,

CONCLUSION AND

SUGGESTION

79
Findings:

 From the above study on “impact of e-commerce on local retail market/retailers:”we

find that the consumers are shifting their purchasing culture.

 The study also states that people often shop online and offline.

 The study also states that people prefer clothing and accessories to shop online and
groceries to shop offline.

 The study also finds that people prefer Amazon to shop online and D-Mart to shop
offline.

 The study also finds that people doesn’t spend much on online shopping when
compared to offline.

 The study also states that people are very much aware of all the sources of
information before they purchase any product.

 The study also finds that people find the quality of products purchased online as good
and the quality of products purchased offline as very good.

 The study also says that people are convenient conducting online purchase.

 The study also finds that the biggest challenge that a consumer faces shopping online
is non-availability of products and offline is limited products.

 The study also finds that people prefer shopping at local shops as they can see and
touch the products and prefer online shopping as they can save time.

 The study also states that e-commerce as commercial means has its advantages over
the traditional commercial methods.

 The study also states that e-commerce can provide an alternative marketing channel
by eliminating middlemen.

80
 The study also states that e-commerce is killing the traditional retail markets.

 The study also states the people prefer traditional retail market over e-commerce.

81
Conclusion:

For retailers in India, online shopping is gaining recognition as it has many benefits for them.

Some of these include no real estate costs, enhanced customer service, mass customization,

and global reach, niche marketing and specialized stores. In the next 5 years, online retailing

in India will strengthen even further. However, long-standing sustainability directly depends

on factors like changes in the market, innovations and interactivity by market players. Owing

to increased penetration of credit and debit cards and easy access of computing facilities to a

wider population, Internet retailing in India has witnessed a promising growth. Moreover,

bargain-hunting consumers are latching on this trend as internet retailers are known to offer

products at special discounted prices compared to store-based retailers. Consumers in the

country can now truly expect a well streamlined, efficient and world-class shopping

experience supported by the best technology. Online trading is here to stay and will be

extensively used in future. Leading online retail traders are finding out the ways to retain

profitability and long term sustainable development. Indian entrepreneurs said this latest

focus on business fundamentals points to growing maturity of the local market. In past,

everyone was looking at who the leaders will be. Now the market leaders are emerging and

no one doubts the viability of e-commerce. So, this research shows the present status of

online retailing in India and the analysis based upon the above data shows that there is a

positive impact of e-commerce portals on retailing in India.

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Suggestions:

 As people are moving towards online purchase culture, the online

websites/application must be designed as per the requirements of the customers to

avoid issues while making a purchase.

 Every retailer must go with e-retailing programme to boost their business.

 There should be government rules and regulations on portals which restrict them to
sell products to certain minimum costs. Even if it is under the name of a festival

dhamaka or big sale on any new year or end of season sale, they cannot just sell the

products at any cost, which attracts a crowd of consumers waiting to buy low-priced

products under that offer.

 The customers who are choosing to buy products online also play a key role here.

They must realize now that their money which is going to big companies should be

helping the small businesses. This could be their contribution towards the society that

they stick to the brick-and-mortar shops and make online purchases only in the

situation of high need. This will also demand some education to the young generation

about the pros and cons of online shopping, not as a consumer but from the point of

view of a businessman.

83