The Associated Chambers of Commerce & Industry of India (ASSOCHAM), which tracks and predicts commercial activities within the country has predicted that online shopping will rule to roost this Diwali. As per their estimations, more than Rs 10,000 crore worth of online shopping would be done this Diwali, which is 350% more than previous year.
As per their recent study, August-September period of 2014 witnessed 200% jump in online shopping, compared to the same period last year; which may jump to 350% in the next month due to Diwali shopping spree. Sales of mobile phones have been the primary cause of this exponential increase in online sales. As per the report, mobile sales have jumped more than 100% in the last year.
Overall, the online commerce market is pegged at Rs 12,000 crore, which will increase to Rs 1,00,000 crore in the next 2-3 years.
The Downfall: Less Footfalls In Shopping Malls
It is said that somebody’s gain is always somebody’s loss. The law of demand and supply advocates this saying with economic proof.
With the hype and buzz generated by online sales, not to forget flash sales and big billion day sales, the flip side of this whole online shopping frenzy is less footfalls in shopping malls all over the country.
The sharpest fall in shopping mall traffic has been registered in New Delhi-NCR region where 49.2% less traffic originated compared to last year. Closely following is Ahmedabad, where 48.2% less traffic came to visit shopping malls, as majority of shoppers are now choosing ecommerce platform with better deals, low prices and ease of shopping.
Chennai witnessed 46%, Mumbai 42% and Hyderabad 39% less footfalls in shopping malls. Assocham has been clear in their study that the less footfalls in shopping malls is a direct result of increasing online shopping and adaptation of ecommerce as a preferred mode of shopping among teenagers and young professionals.
The research was done in urban locations as well as semi-urban cities in India: Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun and the results clearly mention that more and more shoppers are not preferring online medium, compared to offline.
As per the research conducted in these cities, “more and more choices online, about 55% of both men and 45% women using their smartphones, tablets, laptops and desktops to purchase products online”, points out the paper. “At least five out of two orders are through mobile phones”.
How far will it go?
Recently Flipkart conducted a special sale for one day, which left several customers disappointed and angry as complains of price rigging and poor website access flooded the social media. Consumer biggies such as LG and Sony have already declared war against ecommerce portals as they are gearing up to sue such ecommerce companies which advertise extremely low prices to attract more traffic to their website. Even the Government of India has stated that they will initiate enquiry against the complaints lodged by disgruntled customers and electronics companies.
Online shopping is certainly the big thing right now, especially during the festive season. But unethical business practices (either offline or online) won’t take them too far. It would be interesting to observe how ecommerce companies now cope with the high expectations which has been generated. And how business ethics and consumer trust take their course.
What is your take..
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This is happening around the globe. Online shopping is growing at a fast speed. A lot of consumers are realising the benefits of online shopping. Online shopping sites compete to give their market superb online shopping experience. They went beyond promos and discounts and coupons. One site http://cashbackmall.co.uk gives money to its visitors who refer their friends to the site. You can even withdraw your money to your bank account and spend it not just on the site or the merchant’s site but anywhere you please. Online shopping is evolving!
In this age most young professionals look for instant gratification and answers. Even delay of a day is now not acceptable even if it is due to very genuine reasons.
This is the reason why even if you give products practically for free there are hardly any loyal customers since what they are looking for is the best even if in the real world scenario it may not be possible.
The same happened with Flipkart on their Big Billion Day Sale. They put themselves out there to give their customers more satisfaction and also attract more footfalls. But instead they become the butt of jokes all over the internet due to a situation which was almost impossible to contain.
In the current scenario to attract more customers companies will loose out on repeat customers who generate more business due to a previous good experience and online shopping which has a very bright future in today’s Indian economy may start to dwindle.
I really feel there should be fine balance between e-tailing sites and brick and mortar stores as that will benefit both the customer’s and the shops.