Retailigence

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Online Retail Trends

Posted by retailigence on February 11, 2012

The increase in the number online shoppers has taken the industry analysts by surprise. Traditionally online shopping was done more for travelling, but with the passage of time, the scope of online has considerably widened. Nowadays, be it music to electronic products, perfumes to razors, undergarments to suits, a provision is there to shop for all these products online.

The benefits of online shopping far outweigh the cons. The main advantage has been that with the passage of time, online transactions have become more secure. Online shopping sites have done extensive sales promotion activity which has resulted in an overall increase in shoppers. One can find product like underwear, lens, hukka etc etc on internet very easily. The websites are highly interactive and user friendly such that now it is much easier working through a website rather than negotiating with the salesman. One added advantage of online shopping is that you do not need to find any parking space for your car in the virtual world.

One thing which is of vital importance is that the concept of online retailing is fast catching up in rural India. It should not be forgotten that nearly 65% of the Indian population resides in villages. Another thing is that people who are into online shopping are highly brand conscious. And as the phenomenon of online retailing is growing, more and more companies are looking to hire which translates into more employment opportunities. Across border buying is on the rise in recent times. The unmarried person is always more keen to experiment with technology and in India the marriage age is continuously getting delayed. These two facts taken together encourage the online shopping trends. This is one main reason why hordes of online shopping sites which have come up recently. The Indians love discounts and keeping this in mind some sites have started offering collective decision making and collective buying, which results in bigger discounts for customers. Companies need to spend heavily on infrastructure to keep pace with the changing trends. As the industry is still on its growth trajectory, large scale consolidations are still not on the horizon.

In a world where it is generally believed that women are more involved in shopping than men, it is surprising to note that more number of men are hooked to online shopping than females. And treating this to be of vital importance various websites like Menzkart.com have come up which addresses primarily the needs of men. Keeping the online shopping trends in mind, every major company, be it Jockey, Calvin Klein or Gillette is trying its best to make its online presence felt.

There are two very interesting facts which need to be mentioned here:

1. Nearly half of the online users depend heavily on social networking sites to make their online purchase decision and

2. A portion of the users spend nearly 1/10th of the monthly income on making an online purchase every month.

With the advent of broadband connections and internet penetration the number of users has increased geometrically and this will create an opportunity to have big user base and they will make online retailing a big market. This sector will experience a big boom in coming years and it has been predicted that online retail business will be the biggest threat to traditional retail other than FDI.

E-tailers or online retailers in turn have two major advantages when we talk of online shopping:

1. It helps in mass customization and

2. It helps in niche marketing.

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