DeSSETATION on hr

8/19/2019 DeSSETATION on hr

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THE INDIAN RETAIL SCENE

India is the country having the most unorganied retail mar"et Traditionally it is a family’s

livelihood, !ith their shop in the front and house at the $ac", !hile they run the retail $usiness

'ore than 445 retailers function in less than -00 s%uare feet of shopping space Glo$al retail

consultants 6/) Technopa" have once estimated that organied retailing in India is e&pected to

touch Rs 7-,000 crore in the year *00-(02 The Indian retail sector is estimated at around Rs

400,000 crore, of !hich the organied sector accounts for a mere * per cent indicating a huge

potential mar"et opportunity that is lying in the !aiting for the consumer(savvy organied

retailer

Purchasing po!er of Indian ur$an consumer is gro!ing and $randed merchandise in categoriesli"e )pparels, osmetics, /hoes, 9atches, #everages, 3ood and even :e!ellery, are slo!ly

$ecoming lifestyle products that are !idely accepted $y the ur$an Indian consumer Indian

retailers need to advantage of this gro!th and aiming to gro!, diversify and introduce ne!

formats have to pay more attention to the $rand $uilding process The emphasis here is on retail

as a $rand rather than retailers selling $rands The focus should $e on $randing the retail $usiness

itself In their preparation to face fierce competitive pressure, Indian retailers must come to

recognie the value of $uilding their o!n stores as $rands to reinforce their mar"eting

positioning, to communicate %uality as !ell as value for money /ustaina$le competitive

advantage !ill $e dependent on translating core values com$ining products, image and

reputation into a coherent retail $rand strategy

There is no dou$t that the Indian retail scene is $ooming ) num$er of large corporate houses,

Tatas, Rahe;as, Piramals, Goen"aIs have already made their foray into this arena, !ith $eauty

and health stores, supermar"ets, self(service music stores, ne!age $oo" stores, every(day(lo!(

price stores, computers and peripherals stores, office e%uipment stores and home


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STRATEGIES, TRENDS AND OORTUNITIES

Retailing in India is gradually inching its !ay to!ard $ecoming the ne&t $oom industry The

!hole concept of shopping has altered in terms of format and consumer $uying $ehavior,

ushering in a revolution in shopping in India 'odern retail has entered India as seen in

spra!ling shopping centres, multi(storied malls and huge comple&es offer shopping,

entertainment and food all under one roof The Indian retailing sector is at an infle&ion point

!here the gro!th of organied retailing and gro!th in the consumption $y the Indian population

is going to ta"e a higher gro!th tra;ectory The Indian population is !itnessing a significant

change in its demographics ) large young !or"ing population !ith median age of *+ years,

nuclear families in ur$an areas, along !ith increasing !or"ing!omen population and emerging

opportunities in the services sector are going to $e the "ey gro!th drivers of the organied retail

sector in India

GRO!TH O" RETAIL SECTOR IN INDIA

Retail and real estate are the t!o $ooming sectors of India in the present times )nd if industry

e&perts are to $e $elieved, the prospects of $oth the sectors are mutually dependent on each

other Retail, one of Indian largest industries, has presently emerged as one of the most dynamic

and fast paced industries of our times !ith several players entering the mar"et )ccounting for

over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in

India is gradually inching its !ay to!ard $ecoming the ne&t $oom industry

)s the contemporary retail sector in India is reflected in spra!ling shopping centers,

multiple&( malls and huge comple&es offer shopping, entertainment and food all under one

roof, the concept of shopping has altered in terms of format and consumer $uying $ehavior,

ushering in a revolution in shopping in India This has also contri$uted to large(scale

investments in the real estate sector !ith ma;or national and glo$al players investing in

developing the infrastructure and construction of the retailing $usiness The trends that are

driving the gro!th of the retail sector in India are

• =o! share of organied retailing

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• 3alling real estate prices

• Increase in disposa$le income and customer aspiration

• Increase in e&penditure for lu&ury items >?)RT@

)nother credi$le factor in the prospects of the retail sector in India is the increase in the

young !or"ing population In India, hefty pay pac"ets, nuclear families in ur$an areas, along

!ith increasing !or"ing(!omen population and emerging opportunities in the services sector

These "ey factors have $een the gro!th drivers of the organied retail sector in India !hich

no! $oast of retailing almost all the preferences of life ( )pparel A )ccessories, )ppliances,

Blectronics, osmetics and Toiletries, ?ome A Cffice Products, Travel and =eisure and many

more 9ith this the retail sector in India is !itnessing re;uvenation as traditional mar"ets

ma"e !ay for ne! formats such as departmental stores, hypermar"ets, supermar"ets and

specialty stores

The retailing configuration in India is fast developing as shopping malls are increasingly

$ecoming familiar in large cities 9hen it comes to development of retail space specially the

malls, the Tier II cities are no longer $ehind in the race If development plans till *00 is

studied it sho!s the pro;ection of **0 shopping malls, !ith 174 malls in metros and the

remaining 81 in the Tier II cities The government of states li"e Delhi and ational apitalRegion >R@ are very up$eat a$out permitting the use of land for commercial development

thus increasing the availa$ility of land for retail spaceE thus ma"ing R render to -05 of the

malls in India

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India is $eing seen as a potential goldmine for retail investors from over the !orld and latest

research has rated India as the top destination for retailers for an attractive emerging retail

mar"et India’s vast middle class and its almost untapped retail industry are "ey attractions for

glo$al retail giants !anting to enter ne!er mar"ets Bven though India has !ell over - million

retail outlets, the country sorely lac"s anything that can resem$le a retailing industry in the

modern sense of the term This presents international retailing specialists !ith a great

opportunity The organied retail sector is e&pected to gro! stronger than GDP gro!th in the

ne&t five years driven $y changing lifestyles, $urgeoning income and favora$le demographic

outline

INDUSTR# E$OLUTION

• Traditionally retailing in India can $e traced to

• The emergence of the neigh$orhood is 6iranas stores catering to the convenience of the

consumers

• Bra of government support for rural retailF Indigenous franchise model of store chains run

$y 6hadi A illage Industries ommission

• 1480s e&perienced slo! change as India $egan to open up economy

• Te&tiles sector !ith companies li"e #om$ay Dyeing, RaymondHs, / 6umarHs and Grasim

first sa! the emergence of retail chains

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• =ater Titan successfully created an organied retailing concept and esta$lished a series of

sho!rooms for its premium !atches

• The latter half of the 1440s sa! a fresh !ave of entrants !ith a shift from 'anufactures

to Pure Retailers

• 3or eg 3ood 9orld, /u$hi"sha and ilgiris in food and 3'GE Planet ' and 'usic

9orld in musicE ross!ord and 3ountainhead in $oo"s

• Post 144- on!ards sa! an emergence of shopping centers

• 'ainly in ur$an areas, !ith facilities li"e car par"ing

• Targeted to provide a complete destination e&perience for all segments of society

• Bmergence of hyper and super mar"ets trying to provide customer !ith 7 ’s ( alue,

ariety and olume

• B&panding target consumer segmentF The /achet revolution ( e&ample of reaching to the

$ottom of the pyramid

• )t year end of *000 the sie of the Indian organied retail industry is estimated at Rs

17,000 crore

RETAILING "OR%AT IN INDIA

%alls&

The largest form of organied retailing today =ocated mainly in metro cities, in pro&imity to

ur$an outs"irts Ranges from 20,000 s% ft to ,00,000 s% ft and a$ove They lend an ideal

shopping e&perience !ith an amalgamation of product, service and entertainment, all under a

common roof B&amples include /hoppers /top, Piramyd, and Pantaloon

S'ecialty Stores&

hains such as the #angalore $ased 6ids 6emp, the 'um$ai $oo"s retailer ross!ord, RPGHs

'usic 9orld and the Times GroupHs music chain Planet ', are focusing on specific mar"et2


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segments and have esta$lished themselves strongly in their sectors

Discount Stores&(

)s the name suggests, discount stores or factory outlets, offer discounts on the 'RP through

selling in $ul" reaching economies of scale or e&cess stoc" left over at the season The product

category can range from a variety of perisha$le< non(perisha$le goods

De'art(ent Stores&)

=arge stores ranging from *0000(-0000 s% ft, catering to a variety of consumer needs3urther classified into localied departments such as clothing, toys, home, groceries, etc

Departmental /tores are e&pected to ta"e over the apparel $usiness from e&clusive $rand

sho!rooms )mong these, the $iggest success is 6 Rahe;aHs /hoppers /top, !hich started in

'um$ai and no! has more than seven large stores >over 70,000 s% ft@ across India and even

has its o!n in store $rand for clothes called /top

Hy'er (arts *Su'er(ar+ets&)

=arge self(service outlets, catering to varied shopper needs are termed as /upermar"ets These

are located in or near residential high streets These stores today contri$ute to 705 of all food

A grocery organied retail sales /uper 'ar"ets can further $e classified in to mini

supermar"ets typically 1,000 s% ft to *,000 s% ft and large supermar"ets ranging from of 7,-00

s% ft to -,000 s% ft having a strong focus on food A grocery and personal sales

Conenience Stores&)

These are relatively small stores +00(*,000 s% feet located near residential areas They stoc"

a limited range of high(turnover convenience products and are usually open for e&tended

periods during the day, seven days a !ee" Prices are slightly higher due to the convenience

premium


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%-Os&

'ulti #rand outlets, also "no!n as ategory 6illers, offer several $rands across a single

product category These usually do !ell in $usy mar"et places and 'etros

INDIAS NU%-ER O" DO%ESTIC GROCER# CHAINS AND EARL# "OREIGN

ENTRANTS

RECENT TRENDS

• Retailing in India is !itnessing a huge revamping e&ercise as can $e seen in the graph

• India is rated the fifth most attractive emerging retail mar"etF a potential goldmine

• Bstimated to $e ./ *00 $illion, of !hich organied retailing >ie modern trade@ ma"es

up 7 percent or ./ 2+ $illion

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• )s per a report $y 6P'G the annual gro!th of department stores is estimated at *+5

• Ran"ed second in a Glo$al Retail Development Inde& of 70 developing countries dra!n

up $y )T 6earney

• 'ultiple drivers leading to a consumption $oomF

o 3avora$le demographics

o Gro!th in income

o Increasing population of !omen

o Raising aspirationsF alue added goods sales

• 3ood and apparel retailing "ey drivers of gro!th

• Crganied retailing in India has $een largely an ur$an

• Phenomenon !ith affluent classes and gro!ing num$er of dou$le(income households

• 'ore successful in cities in the south and !est of India Reasons range from differences

in consumer $uying $ehavior to cost of real estate and ta&ation la!s

• Rural mar"ets emerging as a huge opportunity for retailers reflected in the share of the

rural mar"et across most categories of consumption

IT is e&perimenting !ith retailing through its e(houpal and houpal /agar is

rural hypermar"ets

?== is using its Pro;ect /ha"ti initiative is leveraging !omen self(help groups is

to e&plore the rural mar"et

'ahamaa is leveraging technology and net!or" mar"eting concepts to act as an

aggregator and serve the rural mar"ets

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• IT is a tool that has $een used $y retailers ranging from )maoncom to e#ay to radically

change $uying $ehavior across the glo$e

• B(tailing is slo!ly ma"ing its presence felt

RETAIL SALES IN INDIA

CHALLENGES / OORTUNITIES

Retailing has seen such a transformation over the past decade that its very definition has

undergone a sea change o longer can a manufacturer rely on sales to ta"e place $y ensuring

mere availa$ility of his product Today, retailing is a$out so much more than mere

merchandising Its a$out casting customers in a story, reflecting their desires and aspirations, and

forging long(lasting relationships )s the Indian consumer evolves they e&pects more and more

at each and every time !hen they steps into a store Retail today has changed from selling a

product or a service to selling a hope, an aspiration and a$ove all an e&perience that a consumer !ould li"e to repeat

3or manufacturers and service providers the emerging opportunities in ur$an mar"ets seem to lie

in capturing and delivering $etter value to the customers through retail 3or instance, in hennai

avin6are is =ime=ite, 'arico 6aya /"in linic and )pollo ?ospitals, )pollo Pharmacies are

e&amples, to name a fe!, !here manufacturers


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manufactured products and services !ith those of others to generate value hitherto un"no!n The

last mile connect seems to $e increasingly lively and e&periential )lso, manufacturers and

service providers face an e&ploding rural mar"et yet only marginally tapped due to difficulties in

rural retailing Cnly innovative concepts and models may survive the test of time and

investments

?o!ever, manufacturers and service providers !ill also increasingly face a host of specialist

retailers, !ho are characteried $y use of modern management techni%ues, $ac"ed !ith

seemingly unlimited financial resources Crganied retail appears inevita$le

Retailing in India is currently estimated to $e a ./ *00 $illion industry, of !hich organied

retailing ma"es up a paltry 7 percent or ./ 2+ $illion #y *010, organied retail is pro;ected to

reach ./ *7 $illion 3or retail industry in India, things have never loo"ed $etter and $righterhallenges to the manufacturers and service providers !ould a$ound !hen mar"et po!er shifts

to organied retail

conclusion

The retail sector has played a phenomenal role throughout the !orld in increasing productivity of

consumer goods and services It is also the second largest industry in ./ in terms of num$ers of

employees and esta$lishments There is no denying the fact that most of the developed

economies are very much relying on their retail sector as a locomotive of gro!th The India

Retail Industry is the largest among all the industries, accounting for over 10 per cent of the

country’s GDP and around 8 per cent of the employment The Retail Industry in India has come

forth as one of the most dynamic and fast paced industries !ith several players entering the

mar"et #ut all of them have not yet tasted success $ecause of the heavy initial investments that

are re%uired to $rea" even !ith other companies and compete !ith them The India Retail

Industry is gradually inching its !ay to!ards $ecoming the ne&t $oom industry

1.0 Introduction to Online sector

India has an internet user $ase of a$out *+7* million as of :anuary *01+Despite $eing third

largest user$ase in !orld, the penetration of Internet is lo! compared to mar"ets li"e the .nited

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/tates, .nited 6ingdom or 3rance $ut is gro!ing at a much faster rate, adding around 2 million

ne! entrants every month The industry consensus is that gro!th is at an inflection point

In India, cash on delivery is the most preferred payment method, accumulating -5 of the e(

retail activities ?o!ever, CD may harm e(commerce $usiness in India in the long run andthere is a need to ma"e a shift to!ards online payment mechanisms Demand for international

consumer products >including long(tail items@ is gro!ing much faster than in(country supply

from authoried distri$utors and e(commerce offerings

)s of 1 *01-, si& Indian /tartup companyF

• 3lip"art

• /napdeal

• In'o$i

• ui"r

• Claa$s

• Paytm >Cne4@, have managed to enter the #illion(Dollar clu$

%ar+et sie and 2ro3t4

IndiaHs e(commerce mar"et !as !orth a$out 78 $illion in *004, it !ent up to 1*2 $illion in

*017 In *017, the e(retail segment !as !orth ./*7 $illion )$out 05 of IndiaHs e(commerce

mar"et is travel related )ccording to Google India, there !ere 7- million online shoppers in

India in *01+ 1 and is e&pected to cross 100 million mar" $y end of year *012 )GR vis(J(vis

a glo$al gro!th rate of 8K105 Blectronics and )pparel are the $iggest categories in terms of

sales

6ey drivers in Indian e(commerce areF

• #urgeoning $road$and Internet su$scri$ers, 7G penetration, and recent introduction

of +G in fe! cities

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• B&plosive gro!th of /martphone users, soon to $e !orldHs second largest smartphone

user$ase

• Rising standards of living as result of fast decline in poverty rate

• )vaila$ility of much !ider product range >including long tail and Direct Imports@

compared to !hat is availa$le at $ric" and mortar retailers

• ompetitive prices compared to $ric" and mortar retail driven $y disintermediation and

reduced inventory and real estate costs

• Increased usage of online classified sites, !ith more consumer $uying and selling second(

hand goods

• Bvolution of 'illion(Dollar startups

li"e :a$ongcom, /aavn, 'a"emytrip, #oo"mysho!, Lomato Btc

IndiaHs retail market is estimated at +0 $illion in *011 and is e&pected to gro! to 2- #n $y

*012 and 8-0 #n $y *0*0, K estimated )GR of 5 )ccording to 3orrester, the e(commerce

mar"et in India is set to gro! the fastest !ithin the )sia(Pacific Region at a )GR of over -5

$et!een *01*K12

)s per MIndia Goes DigitalM,a report $y )vendus apital, a leading Indian Investment #an"

specialiing in digital media and technology sector, the Indian e(commerce mar"et is estimated at

Rs *8,-00 rore >27 $illion@ for the year *011 Cnline travel constitutes a sia$le portion

>85@ of this mar"et today Cnline travel mar"et in India is e&pected to gro! at a rate of **5

over the ne&t + years and reach Rs -+,800 rore >1** $illion@ in sie $y *01- Indian e(tailing

industry is estimated at Rs 7,200 crore >./800 mn@ in *011 and estimated to gro! to Rs -7,000

rore >118 $illion@ in *01-

Cverall e(commerce mar"et is e&pected to reach Rs 1,0,800 crores >./*+ $illion@ $y the year

*01- !ith $oth online travel and e(tailing contri$uting e%ually )nother $ig segment in e(

commerce is mo$ile


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Though the sector has !itnessed tremendous gro!th and is e&pected to gro!, a lot of e(

commerce ventures have faced tremendous pressure to ensure cash flo!s #ut it has not !or"ed

out for all the e(commerce !e$sites 'any of them li"e Dhingana, Roc"in, /eventy ''

amongst others had to close do!n or change their $usiness models to survive

I3R)/TR.T.RB

There are many hosting companies !or"ing in India $ut most of them are not suita$le for

eommerce hosting purpose, $ecause they are providing much less secure and threat protected

shared hosting eommerce demand highly secure, sta$le an protected hosting y$er security

issues of e(commerce $usiness in India !ould $e re%uired to $e managed $y Indian e(commerce

sta"eholders in the near future In fact, Indian government is planning to introduce cy$er security

$reach disclosure norms in India very soon Recently Target corporation suffered a cy$er attac" that has put it under litigation threat in multiple ;urisdictions Trends are changing !ith some of

eommerce companies starting to offer /aa/ for hoting !e$stores !ith minimal one time costs

There could $e various methods of ecommerce mar"eting such as $log, forums, search

engines and some online advertising sites li"e Google ad!ords and )droll

India has got its o!n version y$er 'onday "no!n as Great Cnline /hopping 3estival !hich

started in Decem$er *01*, !hen Google India partnered !ith e(commerce companies

including 3lip"art, ?ome/hop18, /napdeal, Indiatimes shopping and 'a"emytrip My$er

'ondayM is a term coined in the ./) for the 'onday coming after #lac" 3riday, !hich is the

3riday after Than"sgiving Day 'ost recent GC/3 Great Cnline /hopping 3estival !as held

during Dec 10 to 1*, *01+

In early :une *017, )maoncom launched their )maon India mar"etplace !ithout any

mar"eting campaignsIn :uly, )maon had said it !ill invest * $illion >Rs 1*,000 crore@ in India

to e&pand $usiness, after its largest Indian rival 3lip"art announced 1 $illion in funding

3.DIG

)s of *01*, most of the e(commerce companies are yet to start ma"ing money ?o!ever, due to

their gro!th prospects, many venture capital firms such as )ccel Partners have invested

considera$ly In one of the $iggest fund raising, 3lip"artcom, till ovem$er *01+, has raised

a$out ./D *7 $illion Bntertainment tic"eting !e$site #oo"'y/ho!com raised 100 crores₹

investment $y )ccel Partners

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Cn 10 :uly *017, 3lip"art announced it had received *00 million from e&isting investors Tiger

Glo$al, aspers, )ccel Partners, and ICI apital e! investors ma"ing up the additional

120 million include Dragoneer Investment Group, 'organ /tanley 9ealth

'anagement, /ofina, ulcan Inc and more from Tiger Glo$al

/napdeal ( ./D -0 million in 17 )pril

In 3e$ruary *01+, online fashion retailer 'yntracom raised -0 million from a group of

investors led $y Prem;i Invest, the investment company floated $y )im Prem;i, hairman

of 9ipro 'ay *01+ also !itnessed an ac%uisition of 'yntra $y 3lip"art reportedly for *,000₹

crores ?o!ever, cy$er la! and e(commerce due diligence are still $eing ignored $y investors

and financial institutions !hile investing in India

In Ccto$er *01+, 6artRoc"et, an Indian e(commerce platform, announced granting of a /eries )round led $y technology investor irvana enture )dvisors and -00 /tartups, together !ith

To"yo($ased #eenos, previously "no!n as etpricecom

Re2ulatory iolations and un5air 'ractices

=egal issues of e(commerce in India are generally ignored $y e(commerce !e$sites This may

change in the near future as foreign companies and e(commerce portals !ould $e re%uired to

register in India and comply !ith Indian la!s B(ommerce !e$sites dealing !ith nutraceuticals,

#itcoin, )yurvedic products, online pharmacies, online payment, online po"er, etc are violating

la!s of India

Bnforcement directorate >BD@ of India has already initiated legal actions against companies

dealing !ith #itcoins in India Ta& lia$ility of foreign companies li"e Google, 3ace$oo", etc is

also under consideration in India

/imilarly, illegal online sales of prescri$ed drugs $y illegal online pharmacies of India are also

under scrutiny of regulatory authorities of India

'yntra, 3lip"art and many more e(commerce !e$sites are under regulatory scanner of BD of

India for violating Indian la!s and policies ./($ased transport application provider .$er Inc

has also $een %uestioned $y the service ta& department of India In :anuary, *01-, the 6erala

ommercial Ta&es Department imposed a fine of IR -+crore on 3lip"art, :a$ong, ector e(

commerce, and Ro$emall )pparels, for doing illegal $usiness in the state

1-

http://en.wikipedia.org/wiki/Flipkarthttp://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Sofinahttp://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Snapdealhttp://en.wikipedia.org/wiki/Myntra.comhttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/KartRockethttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Flipkarthttp://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Managementhttp://en.wikipedia.org/wiki/Sofinahttp://en.wikipedia.org/wiki/Vulcan_Inc.http://en.wikipedia.org/wiki/Snapdealhttp://en.wikipedia.org/wiki/Myntra.comhttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/KartRockethttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Crore


16/45

The 3ederation of Pu$lishers’ and #oo"sellers’ )ssociations in India >3P#)I@ has also

%uestioned the predatory pricing tactics adopted $y various e(commerce !e$sites in India The

onfederation of )ll India Traders >)IT@ has also decided to approach the ompetition

ommission of India to oppose the predatory pricing tactics of Indian e(commerce !e$sites

Demands for introducing suita$le provisions to regulate ta&ation, anti competitive practices and

predatory pricing of Indian and foreign e(commerce !e$sites have also $een raised

1.6 Introduction to t4e to'ic

9hen products offer $y a firm to the customer !hose attri$utes are un"no!n, customer can

purchase that product on the $asis of e&perience of others !ho have used that product or

e&perienced it themselves 9e investigate the learning process of customers at the time of

purchase ne! product and factors !hich affect $uying decision of the customers onsumer can

often confronted !ith ne! products !hose $enefits and costs are not fully "no!n to them

onsumers can learn a$out the $y trying itE ho!ever, $y doing so, they $ear the ris" that the

e&perience !ill $e negative Instead, consumers can !ait and o$serve !hether other customer

li"e the product

9hat Is /ho!rooming and 9e$roomingN

)ccording to techopedia, sho!rooming can $e defined as the follo!ingF

M/ho!rooming is !hen a shopper visits a store to chec" out a product $ut then purchases the

product online from home This occurs $ecause, !hile many people still prefer seeing and

touching the merchandise they $uy, many items are availa$le at lo!er prices through online

vendors )s such, local stores essentially $ecome sho!rooms for online shoppersM

)nd, here is a definition of !e$rooming $y Dr Gary Bd!ards from BmpathicaF

M9e$rooming is the opposite $ehavior to Hsho!roomingH 9ith sho!rooming, retailers are faced!ith the challenge of customers coming into the store to $ro!se and test products, only to

su$se%uently go home and actually complete their purchase online >often through a competitor@

9e$rooming, on the other hand, is !hen consumers research products online $efore going into

the store for a final evaluation and purchaseM

12

http://en.wikipedia.org/wiki/Predatory_pricinghttp://www.shopify.in/blog/www.techopedia.com/definition/28277/showroominghttp://www.bizreport.com/2013/05/how-webrooming-is-taking-over-ecommerce.htmlhttp://en.wikipedia.org/wiki/Predatory_pricinghttp://www.shopify.in/blog/www.techopedia.com/definition/28277/showroominghttp://www.bizreport.com/2013/05/how-webrooming-is-taking-over-ecommerce.html


17/45

/ho!rooming s 9e$rooming

.p until recently, there !as a lot of gloom and doom tal" a$out ho! sho!rooming !as eating

into the profits of retailers, and that there !as nothing they could do to com$at its impact

?o!ever, retailers have fought $ac" and employed several means to offset sho!roomingHs

impact, and the result has $een the rise of !e$rooming

)ccording to a ?arris poll in the ./, 245 of people !e$room, !hile only +25 sho!room

/ome of the primary reasons for this have $een offline retailers understanding the importance of

omni(channel selling, resulting in the adoption of an ecommerce storefront, in addition to a focus

on providing a $etter in(store customer e&perience 9hether thatHs through tactics li"e

"no!ledga$le sales staff, in(store pic"(ups of online orders, in(store 9i(3i, or smartphone

discounts nudging shoppers to $uy in(store, !e$rooming is creating !aves in retail

) good %uestion to as" is !hat is it e&actly that ma"es customers !ant to come in(store to ma"e

or complete a purchaseN =uc"ily for us, a report $y 'erchant 9arehouse had some great insights

to help us $etter understand the trend )ccording to them, hereHs a fe! reasons customers !ould

!e$room over sho!roomF

• +5 donHt !ant to pay for shippings

• *75 didnHt !ant to !ait for the product to delivered

• +25 li"e to go to a store to touch and feel a product $efore they $uy

• 725 !ill as" the store to price match a $etter price found online

• 75 li"e the option of $eing a$le to return the item to the store if needed

In the ne&t section, IHll loo" at ho! retailers can turn those pain points into opportunities for their

retail store and $olster their $usiness !ith an online presence for a complete e&perience

9hat Retailers eed to Do

/o !ith all the changes in consumer shopping $ehaviours, IHve compiles a list of the top three

things that you as a retailer can do to "eep up in order to ta"e advantage of $oth sho!rooming

1

http://www.belfasttelegraph.co.uk/business/news/business-view-shops-paying-price-of-showrooming-trend-30290574.htmlhttp://www.businessinsider.com/reverse-showrooming-bricks-and-mortar-retailers-fight-back-2-2014-2http://www.shopify.com/omni-channelhttp://www.adweek.com/news/advertising-branding/study-shows-prevalence-consumer-webrooming-157576http://www.belfasttelegraph.co.uk/business/news/business-view-shops-paying-price-of-showrooming-trend-30290574.htmlhttp://www.businessinsider.com/reverse-showrooming-bricks-and-mortar-retailers-fight-back-2-2014-2http://www.shopify.com/omni-channelhttp://www.adweek.com/news/advertising-branding/study-shows-prevalence-consumer-webrooming-157576


18/45

and !e$rooming trends in an effort to $uild $etter customer relationships and ultimately increase

your $ottom line

17 Go O(ni)C4annelF )ccording to Retail TouchpointHs glo$al survey of customers, 205

$elieve that multiple retail channels including !e$, social, mo$ile, and physical retail !ill $e thenorm for most stores If you !ant to "eep up !ith those e&pectations, /hopify ma"es it really

easy !ith our ecommerce and PC/ soft!are

)lso, as a $onus incentive -25 of their respondents said they !ould spend more money at

physical retail stores if those locations ena$led shoppers to $ro!se through their merchandise

online first

07 En2a2e Custo(ers 3it4 Great Serice and Incenties F ?uman interaction is still a vitaldriver $ehind !hy consumers in certain cases still prefer to purchase products in(store versus

online

3or e&ample, a *01* ielsen poll indicated that 245 of its respondents thought in(store

purchases !ere Mmost relia$le,M and 285 said it !as the MeasiestM and the Mmost convenientM !ay

to shop Retailers can ta"e advantage of this $y increasing interaction $et!een sales staff and

customers and ma"ing it easier than ever to return, e&change, or refund products

RE$IE! O" LITERATURE

0.1 Introduction

The gro!th of m(commerce has impacted dramatically on retailers and consumers The

developments !ithin m(commerce is su$;ect to t!o ma;or technological advancesE the

gro!th surge of smartphones and instant high speed mo$ile internet access >L?)G et

18

http://www.businessinsider.com/this-is-the-future-of-retail-according-to-shoppers-infographic-2012-9http://www.shopify.com/pos/softwarehttp://www.shopify.com/pos/softwarehttp://www.shopify.com/pos/demohttp://www.amiba.net/resources/showroominghttp://www.businessinsider.com/this-is-the-future-of-retail-according-to-shoppers-infographic-2012-9http://www.shopify.com/pos/softwarehttp://www.shopify.com/pos/softwarehttp://www.shopify.com/pos/demohttp://www.amiba.net/resources/showrooming


19/45

al, *017@ 'o$ile technology is influencing consumers in(store e&perience, their ‟

shopper purchase process and their involvement in stores Research $y Blliott >*017@,

Pantano >*017@ and Bllen >*01+@ all confirm that the gro!th of m(commerce is redefining

retailers operations ?eadland >*017@ esta$lishes that this is as a result of an increase in

smartphone holders and smartphone usage, !ith digitally connected consumers

accounting for +05 of all consumers ) report pu$lished $y e'ar"eter >a@ >*01+@

foresees a 125 increase on e( commerce sales this year and a 725 increase of retail

salesE these are minuscule in comparison to the anticipated increase of 2+85 in m(

commerce There are many routes consumers can ta"e in order to complete their

purchasing ;ourney These include omni( channel retailing, online retailing and shopping

through their digital device 'any retailers initially struggled to compete in this

technologically driven mar"et, ho!ever !ith the introduction of smartphone applications,mo$ile mar"eting, R codes and i#eacons, physical retailers have the a$ility to gain a

competitive advantage $y incorporating smartphones into innovative ideas

0.0 Consu(er S4o''in2 E8'erience

e!ell >*017@ states that technology is esta$lishing ne! opportunities for interactive

technologies to create entertainment and shopping e&perience Research $y Pantano

>*017@ e&plains that u$i%uitous retailing is $ecoming an integral part of retailer s‟

innovations #agdare and :ain >*017@ states customer e&perience is changing and

contemporary retailing is evolving 'any retailers have created a customer e&perience

rather than an e&change process )ccording to Deloitte >*01+@, $y *012 smartphones in

relation to consumer shopping e&perience could impact 1-(185 of in(store salesE this is

!orth an estimated O7-(O+7 $illion Research illustrates innovation has $ecome essential

for firms to gain a $etter position in the mar"et Innovative firms have moved a!ay from

the traditional retailing and integrated more innovative techni%ues >Gonle, *01+@

Today retailers can $e seen integrating technology into stores to create a differential

advantage !ith technology and online capa$ilities )nalysis of this topic identifies that

there are many factors retailers must consider to create effective in store technological

e&periences Investigation of this research identifies the demand for retailers to connect

!ith mo$ile(savvy consumers Research $y :ay /ang >*017@ portrays the hedonic aspect

of retail is $ecoming a critical factor !ithin retailer s decisions of technology adoption‟

)s a result of changing consumers, 3raer >*01+@ demonstrates retailers must have the

14


20/45

a$ility to seamlessly create a shopping e&perience $y merging online and offline

environments

0.0.1 O(ni)c4annel Retailin2

Rig$y >*011@ reveals that retailers $elieve consumers !ill never disappear, ho!ever he

illuminates that the surge of omni(channel retailing is changing consumers shopping

o$;ectives The a$ove research illustrates that retailers have the a$ility to impress many

target mar"ets $y integrating technological interfaces )s a result of technologically

savvy consumers, retailers have no! integrated omni(channel strategies as part of a

necessity for retail success Research conducted $y #erthiaume >*017@ determines

developing omni( channel technologies such as social media and mo$ile are redefining a

typical Qstore’ C’#rien >*01+@ defends #erthiaume indicating that the !orld of omni(

channel has diminished traditional styles of retailing :ais!al >*01+@ further enhances C‟#rien and #erthiaume s research $y displaying that omni(channel strategies allo!‟

retailers to engage !ith consumers, !hilst enhancing in(store e&perience In contrast to

the a$ove researchers, ?eadland >*017@ has suggested that omni(channels are non(

e&istent, rather retailers understanding consumer’s $ehaviours in relation to emotions and

their infrastructural nature 9al"er /mith >*017@ specifies that retailing is no longer fi&ed

to physical stores or !e$sites )s a result of gro!ing technology retailing e&perience no!

moves !ith the consumer as a result of mo$ile technology integration 3urther research

$y Deloitte >*01+@ discovers that consumers no! e&pect more from retailers in order to

enhance their in store e&perience

0.0.0 Lo3 Ener2y -luetoot4*-eacons

onsumers in(store e&perience has dramatically changed as a result of mo$ile internet‟

devices >'IDs@ onsumers readily use their 'IDs and their accompanying soft!are in

order to enhance their shopping e&perience >/paid A 3lint, *01+@ )nalyses of the a$ove

research ;ustifies that it is not enough for retailers to purely sell their products and

services, they must create an e&perience for consumers in order to compete in a tough

technological mar"et This is further reinforced $y #alasescu >*017@E stating retailers

need the a$ility to stand up against competitionS Taylor >*01+@ reinforces the a$ove

research $y concluding that consumer e&perience is shifting due to mo$ile technology

*0


21/45

?e found that retail stores have attempted to com$at the ne! mo$ile era $y incorporating

devices e%uipped !ith #luetooth =o! Bnergy >#=B@ technology >$eacons@ into their

physical stores In contrast to the a$ove research /aettler >*01+@ founded that 805 of

signals received in accordance to the $eacons are inaccurate /aettler >*01+@ confirms

targeting capa$ilities are !ithin the most reoccurring pro$lems mar"eters faces on‟

mo$ile interfaces /aettler >*01+@ esta$lishes that although i#eacon technology is an

effective source for retailers, it is $eing implemented in less than 15 of retailers This is

as a result of consumer readiness and lac" of information on technological interfaces

>Blliott, *017@ In contrast to these limitations portrayed $y Blliott >*017@ and /aettler

>*01+@ retailers should $e a!are that i#eacons are relatively cheap 9hiteside >*01+@

indicates that one of the ma;or advantages of the i#eacon is the e&tensive platforms it

performs through, as it is availa$le on almost every leading smartphone ?o!ever,9hiteside >*01+@ further concludes i#eacons can disclose pro$lematic features as many

retailers are a!are of data protection and opt against accepting the terms and conditions

of consumers personal data onsumers can turn off their $luetooth conse%uently

re;ecting retailer s messages or advertisements‟

0.6 Consu(ers S4o''in2 rocess

?avas >*017@ and Bllen >*01+@ $oth support the a$ove research conducted $y /paid A

3lint >*01+@, ?avas >*017@ has demonstrated that for many of us the internet has $ecome

an integral part of consumers shopping process Research $y Bllen >*01+@ reinforces‟

?avas >*017@ $y stating that shoppers are $ecoming 'o$ile 3irst This reveals‟

consumers incorporate mo$ile technology in their purchase decision ;ourney Research

indicates consumers are !illing to move $et!een technology, environments and

communities in order to complete their tas"s This is a result of social media platforms

and online $ro!sing for cheaper alternatives onsumers have $ecome less loyal to

retailers due to multiple shopping channels onsumers are no! more focused on value

and are !illing to $ro!se to satisfy their needs In contrast, Pantano >*01*@ implies that

technology usage !ithin retailers is limited due to consumers readiness and acceptance‟

of ne! innovative technologies It also has a ma;or dependency on consumer s s"ills and‟

a$ilities In contrast to the a$ove findings, studies sho! that +75 of consumers are loyal

to retailers Research portrays these consumers are less li"ely to $ro!se or $uy online

?o!ever Goodall >*011@ depicts these consumers are of an older age =iao(Troth >*01*@

*1


22/45

signals this is a result of Generation U consumers $eing reliant on technology

onse%uently it is important for retailers to change to meet demands in order to retain

and gain a greater consumer $ase 9ilson >*01+@ suggests online and mo$ile value !ithin

Ireland !ill reach V-4 $illion in the retailing sector This is a 17+5 increase since *017

0.6.1 Connected consu(er

?eadland >*017@ proposes consumers have adapted to the ne! !orld of shoppingE she

suggests that consumers particularly !omen incorporate technological platforms !hen

shopping The digitally connected consumer has risen a staggering 105 from 705 to

+05 over the last t!o years Research $y Goodall >*011@ has proven that -5 of

shoppers are comforta$le shopping around and $ro!sing the internet for $etter value

Research conducted $y I#I/ sho!s an increase of 825 per year in online revenue

>'etrics, *01+@ /tudies sho! that only a third of shoppers try clothes on in(store They $ro!se stores and search online in order to find cheaper alternatives >hanging 9ays,

*017@ These results sho! that retailers need to $e innovative !ith their ideas in order to

gain and retain consumers

0.6.0 S4o3roo(in2 s. !e9roo(in2 )s research $y ?avas >*017@ clarifies, technology has $ecome an integral part of

consumerHs shopping process /ho!rooming has $ecome a shopping phenomenon over

recent yearsE this is a process $y !hich consumers incorporate their phone to ma"e

comparisons online !hilst shopping in store /ho!rooming #oom >*017@ indicates that

there !as a ma;or sho!rooming increase $et!een *01* and *017 !ith sho!roomers

almost dou$ling It is "no!n to retailers as the sho!rooming $oomS !ith participants

increasing $y 1-85 from *01* to *017 )s a result retailer s sales dropped, research $y‟

'iller >*01+@ indicates that +-5 of consumers !ill purchase online rather than in store

for as little as a *-5 saving ?o!ever a staggering 205 of consumers !ill $uy online for

a saving as lo! as -5 )n article pu$lished $y It all adds up >*01+@ verifies that 705 of

all online purchases are as a result of sho!rooming ?o!ever, #a"er >*017@ signifies that

retailers need to !or" !ith ne! trends as opposed to seeing it as a threat The gro!th of

technological interfaces allo!s the transition of online and offline $ecome more fluid

Retailers should target their online consumers $y offering incentives in order to change

their shopping process ?o!ever, further analyses of sho!roomers indicate that

consumers are moving from this !ay of shopping and adopting the !e$rooming lifestyle

**


23/45

9e$rooming is $ro!sing for products online and then going into physical stores to

purchase products rather than purchasing online >u;anic A Goldstein, *01+@ 'erchant

9arehouse >*01+@ reveals that more consumers are adopting !e$rooming over

sho!rooming Research identifies that males predominantly !e$room as opposed to

sho!room Results of a survey conducted $y 'erchant 9arehouse reveals -5 of males

!e$room as opposed to 275 of females ?o!ever, although retailers have $een ma;orly

impacted as a result of online capa$ilities, the gro!th of !e$rooming identifies an

opportunity for $ric"s(and(mortar stores The introduction of !e$rooming has seen

sho!roomers participation decrease )s previously discussed -5 of males no! interact

in !e$rooming this is in comparison to -75 that involve sho!rooming in their

purchases It is also evident in female shoppers !ith 275 engaging in !e$rooming and a

mere +05 engaging in sho!rooming >'erchant 9arehouse, *01+@

0.: Consu(er Inole(ent The introduction of the onsumer A /hopper :ourney >A/:, *011@ 3rame!or" $y BR

Burope enhances the clarity of the follo!ing author s research This frame!or" is‟

defined as The mapping of the $ehavior and decisions of a group of

consumers*01*@ has indicated technology is changingE

reshaping consumer s $ehaviours and e&pectations #odhani >*01*@ suggests retailers‟

need to $ring online capa$ilities into stores to further involve consumers in order to

increase opportunities and sales Research $y 'iller >*01*@ supports #odhani >*01*@ $y

implying retail environments are no! $ecoming an e&tension of the online !orld

/impson A =o$augh >*01+@ identifies that digital technology influences 725 of retail

sales This is e&pected to increase $y a massive -05 $efore the end of *01+ onsumers

are increasingly using digital advances !ithin their shopping ;ourney /martphone

devices alone account for 145 of retailers overall sales In order for retailers to compete

in a competitive mar"et they need the a$ility to integrate innovative ideas into their stores

in order to further involve participation of consumers in(store The article pu$lished $y It

all adds up >*01+@ further specifies that 785 of consumers are !illing to share their

mo$ile details !ith retailers in order to receive $etter deals Research $y 'W"i >*01*@

sho!s that consumer involvement may disrupt service efficiency as no t!o consumers

re%uire identical service

*7


24/45

0.:.1 %o9ile %ar+etin2 Research $y :ones >*01+@ enlightens ?avas >*017@ identifying that technology has

created challenges for consumers Theorists such as Bllen >*01+@, e!ell >*017@, Pantano

>*01*, *017@ and Blliott >*017@ imply that consumers are no! using technological

interfaces to engage !ith retailers, it is vital that retailers ensure essential incentives toincrease consumers in(store involvement ?amstra >*01+@ esta$lishes that consumers !ho

receive in store $eacon messages are 14 times more li"ely to interact !ith this particular

product )lthough 145 of consumers have admitted that their shopping process !ithin

retail stores has decreased as a result of mo$ile technology, **5 have increased their in(

store engagement >:ones, *01+@ These results confirm that retailers have the a$ility to

use online capa$ilities to their advantage Gro!th in mo$ile technology has seen the

surge of uic" Response >R@ codes and in(store apps These mo$ile interfaces allo!

consumers in stores to interact !ith online capa$ilities :ay /ang >*01+@ indicates that as

a result of the gro!th splurge retailers should engage in mo$ile mar"eting in order to

$uild sustaina$le and profita$le relationships !ith mo$ile(savvy consumers :ais!al

>*01+@ displays that early adopting retailers can ta"e advantage of e&ecuting campaigns

that is in the hands of consumers :ais!al >*01+@ reveals that !hilst 405 of retailers use a

mo$ile platform to advertise, retailers lac" engagement as only +85 are actively using

mo$ile connections to $ecome involved !ith their consumers

*+* /martphone )pplications /paid A 3lint >*01+@ have identified that consumer shopping patterns have $een fostered $y soft!are applications that assist consumers !ith

a variety of shopping processes These applications are also a motivational tool for

retailers in order to change point(of(sale displays Research illustrates that retailers

should incorporate and customise in store apps in order to meet and e&ceed customer

needs and e&pectations In order to increase consumer involvement it is not enough for

retailers to simply have a presence onlineE they must merge online and mo$ile together to

impact on in store involvement >#rin"er, =o$augh A Paul, *01*@ In contrast to the

a$ove, a report pu$lished $y e'ar"eter >$@ >*01+@ suggests that although mo$ile

applications is !here users spend most of their time, consumers use mo$ile phone

!e$sites to purchaseE8a('le& ./ retailer 'acys has incorporated a ne! feature onto their mo$ile app in

order to enhance consumer involvement !hilst in store The ne! indoor GP/ feature

offers directions to consumersE it provides turn($y(turn directions in 'acy s massive‟

*+


25/45

U flagship store This app created $y 'eridian also allo!s consumers to Receive

$rand offers $ased on !here they are located !ithin the store >3iegerman, *01*@

0.; Conclusion

Research $y many theorists including Bllen >*01+@, Pantano >*017@, Blliott >*017@ and e!ell >*017@ has proven that mo$ile commerce is constantly developing !hich has a

ma;or impact on $oth consumers and retailers The a$ove theorists identify that mo$ile

technologies have reshaped and redefined consumer s shopper ;ourney in terms of ‟

e&perience, purchase process and involvement Reports pu$lished from organisations

such as Deloitte and e'ar"eter have further reinforced the a$ove authors as they provide

statistical figures enhanceing the research found onsumers e&pectations are‟

developing along !ith mo$ile commerce, ho!ever it has $een identified $y Pantano

>*01*@ that consumers may not $e a!are of online capa$ilities due to lac" of

technological "no!ledge Therefore it is important for retailers to consider the simplicity

of technology implementation in stores This !ill enhance the overall positivity of

consumer e&perience, purchase process and product involvement !hilst using

technological interfaces

RESEARCH METHODOLOGY

6.1 O9*01+@, Blliott >*017@, ?eadland >*017@, e!ell

>*017@ and Pantano >*017@ shopping is dramatically changing consumers $uying $ehaviour

6ourouthanassis A Giaglis >*01*@ define mo$ile commerce as services that are availa$le !hilst

consumers are on the move Research conducted $y )u$rey and :udge >*01*@ has indicated that

technology is changing and reshaping consumer’s $ehaviors and e&pectations There is pressure

*-


26/45

on retailers to create effective in store e&periences for the shopper as consumers are !ell

informed as to the capa$ilities of retailers, as a result of ne! social technology platforms e!ell

>*017@ also states that changes in technology are progressively lin"ing in !ith consumers as

retailers are a!are that physical conditions in( store impact on sales #urdett and 'ader >*01+@

support the a$ove research $y stating that consumers no! integrate technology such as their

online shopping e&perience in order to effortlessly compare products in(store !ith products

online

6.6 Hy'ot4eses

?1oX There is no significant difference $et!een easiness in reach A trial, trust factor, visit

personally in store, monetary factor, "no!ledge factor, accounta$ility factor on the $asis of

%ualification?*oX There is no significant difference $et!een easiness in reach A trial, trust factor, visit


profession

?7oX There is no significant difference $et!een easiness in reach A trial, trust factor, visit


gender

6.: Researc4 rocess

The research process has four distinct yet interrelated steps for research analysis it has a logical

and hierarchical orderingF

Determination of information research pro$lem

Development of appropriate research design

B&ecution of research design

ommunication of results

Bach step is vie!ed as a separate process that includes a com$ination of tas", step and specific procedure The steps underta"e are logical, o$;ective, systematic, relia$le, valid, impersonal and

on(going

E8'loratory Researc4

The method I used for e&ploratory research !as

*2


27/45

Primary Data

ri(ary Data

e! data gathered to help solve the pro$lem at hand )s compared to secondary data !hich is

previously gathered data )n e&ample is information gathered $y a %uestionnaire ualitative or

%uantitative data that are ne!ly collected in the course of research, onsists of

original information that comes from people and includes information gathered from

surveys, focus groups, independent o$servations and test results Data gathered $y the

researcher in the act of conducting research

This is contrasted to secondary data, !hich entails the use of data gathered $y someone other

than the researcher information that is o$tained directly from first(hand sources $y means of

surveys, o$servation or e&perimentation Primary data is $asically collected $y getting

%uestionnaire filled $y the respondents

Descri'tie Researc4

/TBP/ in the descriptive researchF

/tatement of the pro$lem

Identification of information needed to solve the pro$lem

/election or development of instruments for gathering the information

Identification of target population and determination of sampling Plan

Design of procedure for information collection

ollection of information

)nalysis of information

Generaliations and


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Res'ondent error

The respondents selected to $e intervie!ed !ere not al!ays availa$le and !illing to cooperate

also in most cases the respondents !ere found to not have the "no!ledge, opinion, attitudes or

facts re%uired additionally uninformed response errors and response styles also led to survey

error

Sa('lin2 error

I have ta"en the sample sie of 12* people among them to find those !ho have $ro!sed onlineand purchased from store, !hich cannot determine the $uying preference of the total population

The sample has $een dra!n from only IT6 A 6.6 only

*4


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DATA ANAL#SIS

Data analysis is a practice in !hich ra! data is ordered and organied so that useful information

can $e e&tracted from it The process of organiing and thin"ing a$out data is "ey to

understanding !hat the data contains and does not contain There are a variety of !ays in !hich

people can approach data analysis, and it is notoriously easy to manipulate data during the

analysis phase to push certain conclusions or agendas 3or this reason, it is important to pay

attention !hen data analysis is presented, and to thin" critically a$out the data and the

conclusions !hich !ere dra!n

Ra! data can ta"e a variety of forms, including measurements, survey responses, and

o$servations In its ra! form, this information can $e incredi$ly useful, $ut also over!helming

Cver the course of the data analysis process, the ra! data is ordered in a !ay !hich !ill $e

useful 3or e&ample, survey results may $e tallied, so that people can see at a glance ho! many

people ans!ered the survey, and ho! people responded to specific %uestions There are various

tools and techni%ues availa$le for the analysis of primary data collected through structured

%uestionnaire #ased on the o$;ectives of the study various tools and techni%ues have $een used

for the analysis of collected data In the present study, )C), factor analysis and t(test have

$een employed !ith the help of /P// 120

Results and "indin2s

Research provides relevant data to help solve mar"eting challenges that a $usiness !ill most

li"ely face((an integral part of the $usiness planning process In fact, strategies such as mar"et

70


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segmentation >identifying specific groups !ithin a mar"et@ and product differentiation >creating

an identity for a product or service that separates it from those of the competitors@ are impossi$le

to develop !ithout mar"et research

DE%OGRAHIC

1.)mong the sample of 12* respondents 2 !ere male and rest 82 !ere female!hich as sho!n

$y follo!ing ta$leF

GENDER ercenta2e

'ale +5

3emale -75

0. 3rom the sample of 12* respondents, 7* !ere undergraduate, +* !ere graduate and rest 88

!ere post graduates or higher as sho!n $elo!F

=uali5ication ercenta2e.ndergraduate 0>?

Graduate 0@?

PG or higher ;:?

6. )mong 12* respondents, 1*0 !ere students and rest +* !ere !or"ing respondents as

supported $y follo!ing ta$leF

ro5ession ercenta2e

/tudent +5

9or"ing *25

=1. !4at 5or( o5 s4o''in2 do you 're5er

71


32/45

52

110

shoppingpreference

online

in store

Inter'retation&(

1 In are research, !e find that more customer !ould li"e to purchase from the physical store

* )lmost, 285 respondents prefera$ly li"e to purchase the product from in(store /o many

reasons are their for this credi$ility of retail stores>!hich !ill discuss in ne&t parts@

7 )lmost, 7*5 respondents li"e to purchase from online shopping !e$sites li"e ;a$ong, e$ay,

flip"art, snapdeal, mytra etc They chec" out the various schemes prevailing on different

!e$sites for change in the product, price or discounts etc and $uy form online portals prefera$ly

+ It sho!s that more customer $elieve on retail stores in comparison to

the online shopping portals

=0. Do you consider yoursel5 a 9rand loyal custo(er

7*


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56

106

brand loyalty

yes

no

Inter'retation&(

1 It sho!s that 2-5 respondents do not consider themselves as $rand

loyal customer They s!itch their $rand as per their convenience depending on the cost and

$enefit $asis

* 7-5 respondents consider themselves as loyal customers !hich means

they do not get affected $y price or schemes of other $rands of the product They ;ust go and

purchase the same $rand to!ards !hich they are loyal

=6. Hae you eer 9ro3sed online and 'urc4ased 5ro( retail store

77


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116

46

ever donewebromming

yes

no

Inter'retation&(1 It is the most important factor !hich directly connected !ith the

o$;ective of the study It is called !e$rooming !hen customers $ro!se online and $uy from a

physical store thereon

* *5 respondents said UB/, they have done !e$rooming at least once

7 *85 respondents said straight C it means either these people directly

$uy from a store !ith any $ro!sing or they directly do online shopping

TEST TO CHECK WHICH FACTORS VARY WITH DEMOGRAPHIC

Oneway ANOVA by using p!"essi!n

The various factors in the ta$le are follo!ingF 31X easiness in reach A trial

3*X trust factor

37X visit personally in store

3+X monetary factor

3-X "no!ledge factor

32X accounta$ility factor

7+


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Sum of Squares df Mean Square F Sig.

COMPUTE

F1=mean(convenience,avail

aili!",!angiili!",!rial#aili!"$

%e!&een 'rous .)1* 1 .)1* 1.+- .*/

0i!in 'rous 22.*/ 11* .3)

To!al 2-.12 113

COMPUTE

F=mean(!rus!#on#re!ail#s!

ore,as!#e4erience,immidi

a!e#deliver",ersonal#a!!en!i

on$

%e!&een 'rous 1.3/ 1 1.3/ +.31 ./2+

0i!in 'rous 31.313 11* .*3

To!al 3+.1/2 113

COMPUTE

F+=mean(feel#!e#amienc

e#ofs!ore,sa!isfied#&i!#so

ing#ins!ore,visi!#urcase

ersonall"$

%e!&een 'rous .-// 1 .-// ./1 .13)

0i!in 'rous +.3* 11* .+*-

To!al */.* 113

COMPUTE

F*=mean(cas#discoun!,ri

ce#lesser#!an#online$

%e!&een 'rous 1.1+1 1 1.1+1 1.*+ .*

0i!in 'rous )2.+21 11* .-3)To!al )-.*1 113

COMPUTE

F3=mean(lac5#of#!ec#5no

&ledge,una&are#of#online#

scemes$

%e!&een 'rous .1/ 1 .1/ .1++ .-12

0i!in 'rous )2.-2 11* .-2+

To!al )-./-) 113

COMPUTE

F2=mean(un!rus!&or!iness

#of#online#re!ailing,af!ersal

es#cus!omerservice,accoun!

aili!"$

%e!&een 'rous +.)++ 1 +.)++ .*1 ./+

0i!in 'rous *-.) 11* .*13

To!al 31.113 113

Inter'retation&

1. This table reveals that there is no signicance dierence on the basis of

profession ecept in !6 i.e. accountability factor in the opinions of the

respondents2. "t shows that there is signicance dierence in the opinions of the

respondents on the basis of #ntr#stworthiness of online retailing$ after sales

% c#stomers service and acco#ntability. "t means respondents$ who are

related with dierent profession &st#dent$ wor'ing( have dierent opinion

abo#t the same above )#oted factor. "t can be d#e to the reason that

st#dents are less concerned with the acco#ntability as compared to the

wor'ing respondents.

)s there e&ist a difference hence hypothesis is re;ected

7-


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One 3ay ANO$A 9y usin2 =uali5ication

ANOVA

Sum of Squares df Mean Square F Sig.COMPUTE

F1=mean(convenience,avail

aili!",!angiili!",!rial#aili!"$

%e!&een 'rous 1.3/) .-3* 1.2 .-)

0i!in 'rous 23.-/) 11+ .3)1

To!al 2-.12 113

COMPUTE

F=mean(!rus!#on#re!ail#s!

ore,as!#e4erience,immidi

a!e#deliver",ersonal#a!!en!i

on$

%e!&een 'rous .2/ .+/1 .2*) .33

0i!in 'rous 3.3/* 11+ .*23

To!al 3+.1/2 113

COMPUTE

F+=mean(feel#!e#amienc

e#ofs!ore,sa!isfied#&i!#so

ing#ins!ore,visi!#urcase

ersonall"$

%e!&een 'rous .)1 .1*/ .+- .2-+

0i!in 'rous +.2) 11+ .+3*

To!al */.* 113

COMPUTE

F*=mean(cas#discoun!,ri

ce#lesser#!an#online$

%e!&een 'rous -.- +.) 3.22 .//3

0i!in 'rous -.31+ 11+ .-/*

To!al )-.*1 113

COMPUTE

F3=mean(lac5#of#!ec#5no

&ledge,una&are#of#online#

scemes$

%e!&een 'rous 1.22 .2++ .)+* .*+-

0i!in 'rous )3.)1 11+ .-3

To!al )-./-) 113

COMPUTE

F2=mean(un!rus!&or!iness

#of#online#re!ailing,af!ersal

es#cus!omerservice,accoun!

aili!"$

%e!&een 'rous .1) 1./1 .3/ ./)3

0i!in 'rous *).++ 11+ .*++

To!al 31.113 113

Inter'retation&

1 This ta$le reveals that there is no significance difference on the $asis of %ualification>.G,

Graduation, PG A higher@ e&cept in 3+ ie monetary factor

* It sho!s that there is significance difference on the $asis of %ualification in the perception of

the respondents It can $e due to the different level of a!areness of the respondents at different

stages of education

?ence, hypothesis is re;ected

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7 follo!ing ta$le of PC/T ?C is sho!ing !here actually this difference is e&istingF

OST HOC TEST

Mu#$ip#e C!%pais!nsMone!ar" Fac!or=mean(cas#discoun!,rice#lesser#!an#online$

Tu5e" 6S7

(8$ qualifica!ion (9$ qualifica!ion Mean 7ifference

(8:9$ S!d. Error Sig.

dimension

1.//dimension+

.// .-32*1; .*-2 .//+

+.// .+++++ .1)-3- .1)

.//dimension+

1.// :.-32*1; .*-2 .//+

+.// :.*+/) .123 ./)3

+.//dimension+

1.// :.+++++ .1)-3- .1)

.// .*+/) .123 ./)3

;. Te mean difference is significan! a! !e /./3 level.

The ta$le is sho!ing that the difference is e&isting in the undergraduate and graduate

respondents The difference can $e due to the reason that the undergraduate respondents

are less concerned !ith the discounts or price difference e&isting in the retail A online stores

7


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In&epen&en$ Sa%p#es Tes$


39/45

1?ere, I found that mostly customer prefer shopping from a physical store /tudy stated that285

respondents prefera$ly li"e to purchase the product from in(store !hich clearly supporting that

!e$rooming is an opportunity for retail stores

* )s in present scenario customer is the "ing of mar"et ustomer is not dependent on the

suppliers rather the suppliers are dependent on the customers In the study, I found that 2-5

respondents do not consider themselves as $rand loyal customer They !ait for decrease in price,

ta"ing feed$ac" from family, friends, colleague and gathering the information from ne!spaper,

email, internet, T advertisement, !ord of mouth and other sources li"e pamphlets and s!itch

!hen they !ant

7 The study states that *5 respondents said yes they have done !e$rooming at least once

!hich clearly means that even after $ro!sing from online customer prefer to $uy from a retail

store They s!itch their $rand as per their convenience depending on the cost and $enefit $asis

+ They have positive thin"ing a$out $ro!sing the products online and then $uy from a physical

store It increases opportunity for the users A retailers $oth It also helps in getting ne!

innovation in technical !orld plus shopping from an approacha$le and credi$le place Internet

Industry is a fast moving industry It is gro!ing day $y day and much revenue for the future

gro!th #ut still most of the customers !ish to $uy from a on retail stores as my respondents

have stated

- ustomer purchase decision affected $y !hich sector he or she does /tudents or !or"ing,

respondents have same opinion a$out the factor that entice to $uy from a retail store in

preference to an online store

2 Cn the $asis of gender there does not e&ist any significant difference $

and female respondents

Cn the $asis of %ualification> .G, Graduates, PG or higher@ there e&ists a significant

difference $

74


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availa$ility factor #y applying post hoc tool, I found that the difference e&isted in the opinions

of undergraduates and graduates

8 Cn the $asis of age !e found that, customers have same opinion a$out factors that may entice

purchase from a retail store instead of $uying from an online portal /o, through the help of our

study !e can say that customers still less ris" ta"er They have some $elieve in their mind to

have some assurance from the physical retail stores

RECO%%ENDATIONS

+0


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1 )dvertisement should $e done of the retail stores also and the theme of the !hole ad campaign

hould $e uni%ue and according to the target customer It must carry more relia$le information

a$out the product This helps in giving assurance to customers

* 3or targeting different "ind of sectors use different channels for creating information a$out the

ne! product and information should $e useful for every sector

7 Price should $e near to the competitor and features should $e more

+ 'ultichannel< omnichannel e&perience should $e given to the consumers $ecause consumers

are more !illing to shop through multiple shopping channels to ma"e a purchase It has $een

identified that it is vital for retailers to $e innovative !ith technological platforms in order to

increase consumers shopping e&perience ?o!ever, it has $een illustrated that some consumers

lac" technological "no!ledge, as a result the positivity of their shopping e&perience is impacted

It is !ithin the retailer’s $est interest to ma"e the transition $et!een online and offlinecapa$ilities as smooth as possi$le in order to create an indisputa$le shopping e&perience for

consumers

- The criterion set $efore conducting this research !as consumers !ithin Generation Y These

are less technologically savvy consumersE I feels that further more research should $e conducted

to supports this statement Therefore, I recommends that further research of this topic should $e

conducted on Generation U as it !ill allo! a deeper insight as to ho! Internet*01+@ founded that consumers !ere adapting to

$oomrooming This is !here$y consumers adapt $oth sho!rooming and !e$rooming and

intert!ine them in order to proceed in purchasing These is a process !ere consumers search

products online, then advance to stores in order to see the product $ut return online to ma"e the

purchase )s a result of this recent finding the author !ould further recommend that retailers

monitor ne! mar"et trends and ensure they implement effective technology strategies as opposed

to technological strategies that !ill $e o$solete in the near future

RE"ERENCE

+1


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1 6yr"os, =, *01+, #oomerooming ( #ad e!s for #ric"s and 'ortar Retailers,‟

redsnapper, vie!ed online 1+ )ugust *01+* 3raer, ', A /tiehler, # *01+, HC'I?)B= RBT)I=IGF T?B 'BRGIG C3

T?B C=IB )D C33(=IB BIRC'BTH, Glo$al onference Cn #usiness A3inance Proceedings, 4, 1, pp 2--(2-, #usiness /ource omplete, B#/Chost, vie!ed

+ :une *01+7 9olny, :, A haroensu"sai, >*01+@ 'apping customer ;ourneys in multichannel

decision(ma"ing Journal of Direct, Data and Digital Marketing Practice, 15>+@, 71(

7*2+ 'c)==I/TBR, 9 >*01+@ U.S. Patent Application 14/311,15- Rig$y, D, /ero!, B, Tager, /, A heris, ) >*01+@ /potlight on technology2 D’)vano, B, A Pilato, G >*01+@ 'ining social net!or" users opinions’ to aid $uyers’

shopping decisions !omputer" in #uman $e%a&ior 6emple, 3 >*01+@ )nalysing the changes in mo$ile technologies and ho! they have

impacted on consumer purchase $ehaviour in clothing retailers8 'alcolm, ?adley #lac" 3riday )rriving Barly, on a /aturdayS ./)Todaycom

>httpF

>httpF

Than"sgivingS hain /tore )ge >httpFdetails(holiday(omnichannel(moves(open(-(pm(than"sgiving@, ovem$er , *01+

+*


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17orporate )ttitudes and )doption Trends of 'ulti(hannel and Cmni(hannel

'ar"eting Platt Retail Institute, )pril *017 ustomer Desires vs Retailer apa$ilitiesF

'inding the Cmni(hannel ommerce GapS 3orrester Research, :anuary *01+ )vaila$le at

httpF3orrester(ne![*01+pdf >accessed ovem$er 1-, *01+@

!E-LINBS

1 httpF5*0Default

http3,,www.ama/on.com,oc,echotaggooghydr+20

%hvadid4-044*4*062%hvpos1t1%hveid%hvnetwg%hvrand1226

0-22704647667%hvpone%hvptwo%hv)mte%hvdevc%refpd8sl81t-dwhos/p8e &accessed

9ovember 14$ 2014(.

:esearch )#estionnaire Se8F a@male $@ female

A2e&

ro5ession & a@ /tudent $@ 9or"ing c@on(!or"ing

+7

http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspxhttp://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspxhttp://www.dailyfinance.com/on/just-looking-fee-customers-showrooming/http://www.upi.com/Business_News/Consumer-Corner/2013/12/08/Webrooming-beats-showrooming-this-holiday-season/UPI-%2041461386500460/http://www.upi.com/Business_News/Consumer-Corner/2013/12/08/Webrooming-beats-showrooming-this-holiday-season/UPI-%2041461386500460/http://www.crmbuyer.com/story/81323.htmlhttp://shodhganga.inflibnet.ac.in/http://www.vccircle.com/news/technology/2010/08/19/e-commerce-india-are-we-inflection-pointhttp://www.vccircle.com/news/technology/2010/08/19/e-commerce-india-are-we-inflection-pointhttp://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspxhttp://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspxhttp://www.dailyfinance.com/on/just-looking-fee-customers-showrooming/http://www.upi.com/Business_News/Consumer-Corner/2013/12/08/Webrooming-beats-showrooming-this-holiday-season/UPI-%2041461386500460/http://www.upi.com/Business_News/Consumer-Corner/2013/12/08/Webrooming-beats-showrooming-this-holiday-season/UPI-%2041461386500460/http://www.crmbuyer.com/story/81323.htmlhttp://shodhganga.inflibnet.ac.in/http://www.vccircle.com/news/technology/2010/08/19/e-commerce-india-are-we-inflection-pointhttp://www.vccircle.com/news/technology/2010/08/19/e-commerce-india-are-we-inflection-point


44/45

=uali5ication& a@ .ndergraduate $@Graduate c@ Post Graduate orhigher

1. 9hat form of shopping do you prefer in case o5 9uyin2 clot4es7a.( ;nline b.( in+store

0. Do you consider yourself a $rand loyal customer in case o5 9uyin2 clot4es7 a@ Ues $@ o

6. ?ave you ever $ro!sed online 5or 'urc4asin2 clot4es and continue to purchase from store a@ Ues $@ o

*. if yo#r answer was yes to above )#estion< rate these factors &WHEN YOU ROWSE ONL!NE UT ULT!MATELY UY "ROM #HYS!CAL STORE(

S.No

.

"ACTORS Stron2ly

disa2ree

disa2ree neutra

l

a2ree Stron2ly

a2ree

1 onvenience

* )vaila$ility

++


45/45

7 Tangi$ility>touch,color,feel@

+ Trial a$ility>sie< fitting@

- )ccounta$ility

2 Trust on retail store

Price lesser than online

4 Past e&perience

10 ash discount

11 Immediate delivery

1* Personal attention

17 .na!are of onlineschemes

Documents

DeSSETATION on hr