E-retailing is still to pick up in india. Keeping in mind organized retailing is just seen growth in recent years. But important thing to learn from the west here is that e-retailing has been used as an incremental business growth tool by small retailers and businesses to compete with large brands. In india things are looking the other way around where large retail chains are foraying into online market as an additional channel of service to increase brand power than to increase sales revenue.
Largely cost associated in setting up e-commerce infrastructure has been seen reason for manufacturers to jump into e-retailing of their own products. But with E-commerce consulting organizations jumping into to help mitigate costs and provide extended infrastructure it brings a strong argument on board for e-retailing to be given a shot for 1 financial year.
– Help in brand building
– ability to understand customer demographics
– Ability to experiment new product lines
– Existing channels can take advantage of online catalog
E-retailing is not only about setting up technology infrastructure but about creating a new channel hence it requires same dynamics as any other offline medium.
New Startups in this domain should watch out being dependent on a supplier can be very dangerous for a business model. Beware to enter this domain untill unless you have product line of 200-300 products from a repute brands to offer.