Evolving consumerism and changing shopping behavior of Indian consumer made Indian retail market second largest in the world. With a compounded annual growth rate of 47%, E-Commerce is booming in India. Still, there is a long way to go for an e-tailer, as the model is new to the Indian consumers and with plenty of reasons; they seem reluctant to buy online. Among many challenges, winning the trust of the customer and convincing him for adopting online shopping is bigger. The paper aimed mainly to find the new prospects for e-tailing in India by understanding the behavior of Indian consumer. The attitude of respondent with different social, economic demographic (SED) factors were identified by a structures questionnaire, arranged and analyzed through Chi-square in SPSS 23.0. This study will help existing and coming e-tailers to analyze the relation between different demographic factors and behavior of Indian consumer towards online shopping, which carries the potential to change the game in Indian retail industry.
KEYWORDS: E-tailers, Consumerism, Social Economic Demographic (SED) Factors.
Introduction Technology is in everything and everywhere. Opening many grey areas, it made lots of advancement in our life. Almost all sectors and industries today are using computer technologies to improve their business practices. A very prevalent trend of selling products online has recently started to flourish in India. A lot of e commerce companies pop upped in recent year and suddenly their presence is felt in the market. The industry has achieved these significant figures in a situation where only a very small segment of the market is buying online. On one side when people prefer online buyer contrary to it on the flip side, there is a big segment of customer who still hesitate to place an order online. There are major technical, procedural challenges in front of retailers like availability of funds, Reliable logistic and supply chain, customer service and acquisition. Along with these technical reasons, a very critical challenge is the majority of the people, who still hesitate to buy online and that become a very strong point to understand and act on.
Retail in India is undergoing a huge transformation in the way India shops and trade. The change has caught the eye of every segment and entrepreneur. The basic business model and commercial models are undergoing changes with the integration of e-commerce with them. The explosive growth in the last few years has already catapulted the biggest firms, among these many ventures past the billion-dollar territory. India might have only 300-odd million Internet users, out of its total population of 1.3 billion. But this has not stopped online commerce from establishing itself in the country. For any other industry, it takes decades of effort to have companies that are worth billion dollars. But in India, out of the nine startup unicorns, four are horizontal online marketplaces and despite the recent shutdowns and funding crunch affecting the startup ecosystem, digital commerce has established itself. The latest study by the Internet and Mobile Association of India (IAMAI, 2016) has, in fact, found that at a CAGR growth rate of about 30 percent between December 2011 and December 2015, Indian digital commerce stands at Rs 1,25,732 crore. The report estimates that it will hit Rs 2,11,005 crore this year. However, online shopping comes only after online travel, which is valued close to Rs 76,396 crore.