The Great Indian

Middle Class Needs a

Different E-RetailingIndia has an internet user base of about 243.2 million as of January 2014. Despite being third largest user base in world, the penetration

of Internet is low compared to markets like the United States, United Kingdom or France but is growing at a much faster rate, adding around 6

million new entrants every month.1

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The Indian middle class, who are target the consumers for

many companies, is expected to swell up to 267 million people

in the next five years, up 67 percent from the current levels,

thus providing a great market opportunity for firms, according to NCAER.

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A report by National Council for Applied Economic Research’s

(NCAER) Centre for Macro Consumer Research said by 2015-

16, India would be a country of 53.3 million middle class

households, translating into 267 million people falling in the

category.

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Besides, the growth in the number of middle class

households will translate into huge demand for the

products such as cars, televisions, computers, air-

conditioners, microwave ovens and credit cards,.

The report said a typical Indian middle class

household spends about 50 percent of the total

income on daily expenses such as groceries etc., withthe remaining goes into savings..

E-Commerce has the potential to

create personalized experience for

the shopper even though good

analytics is required to understand

its power.

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E-Commerce market is expected to reach

Rs 1, 07,800 crores (US$24 billion) by the

year 2015 with both online travel and e-

tailing contributing equally. Another big

segment in E-Commerce is mobile/DTH

recharge with nearly 1 million transactions

daily by operator websites.

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E=Commerce is advancing at a fast

pace, and many online E-Commerce

websites are entering the Web every

day. The competition is continuously

increasing.

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Products are not sold directly to customers but

marketed to make customers get attracted. Still it is

found that companies are treating online customers

with a certain level of ignorance, which will

eventually lead into the loss of customers.

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There are many challenges that the

current E-Commerce shopping portals are

facing. Just go through them, innovated

methods have to be adopted.

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The Great New Way of E-Shopping

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Unlike US, UK and other European

countries India is not homogenous

country and retailing even for e-

commerce business has to be

different.

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Incipient concept to address these issues and

additionally to get middle-income people to

come into the fold.

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Now let us visually examine the incipient way

of shopping under the e-commerce retailing.

Indian middle-income segment of people

conventionally wanted to do shopping in their

favorite stores partly due to sentimental

annexation and the close rapport relished

with the shopkeepers.

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Therefore, it is arduous to break this

custom and make them purchase

through faceless computers or I

Phones.

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To perpetuate this tradition, the

shopkeepers will become the

members of the incipiently composed

E-Commerce portal and perpetuate to

patronize their customers with

personalized accommodation.

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The scope for this format of e-commerce retailing is

tremendous and covers predominantly jewelry

shops, textiles, and even grocery stores.

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Customers who authenticate into this

website will have a congenial feeling of

visiting their favorite shops and will

perpetuate to get same personalized

accommodation.

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The website will open in a central

reception centre where the customers will

be guided to their favorite/ preferred

shop.

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Customers can shop in popular shops

situated in sundry geographical

locations spread all over India from

Kashmir to Kanyakumari.

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Under this unique e-shopping, the sundry

quandaries faced by the subsisting players

will be solved. Estimated sales will double

in years time.

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The detailed execution document prepared

will particularize of structuring this unique e-

marketing project.

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This incipient e-retailing project doesn’t

require colossal investments, stocking

space unlike the subsisting online

marketing companies rather investment will

be more on human capital.

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More accentuation will be on after sales

accommodation and customer gratification

by coordinating with member stores.

Member stores will have access to the

customers spread all over India through this

incipient e-retailing project.

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The middle-class society of the people will

have the same gratification of purchasing

products and accommodations online, in

the same way like physically purchasing.

Considering the recent development

in the retail industry, which is

dominated by e-commerce business,

has substantially contributed to the

magnification in the retail industry.

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However, I find there are some

quandaries faced by this e-commerce

business, such as customers’

adhesion, logistical issues, storage,

and warehousing quandaries.

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In India supermarkets, hypermarkets may not be

as prosperous as that of E- Shopping that may

bring in much needed organised retail.

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Mohan M Gobal Chartered Accountant, Founder “Asian College of

Political Management”