The Net shopping
experience
Roopinder Singh
WHY
do people shop on the Net? To find bargains, of course. No matter what
they tell you, most of the people shop online to stretch their rupee. An
increasing number of Indians are taking to this mode of shopping and
they say that they are gainers.
Recently, a sale hosted by
Baazee.com, one of India’s biggest online shopping sites, of music
recorded by practically all big Indian and international companies,
generated much interest. Other significant players in India are
Rediff.com, Indiatimes, Fabmall, and Sify.com
Why shop online
Customers come to such
Websites for a variety of reasons—primarily because they get good
deals, especially bundled deals. Even during the process of researching
for this article, the writer bought some music because it was available
and inexpensive, especially when compared with what big stores in
Chandigarh have to offer. The variety available online also far exceeded
that in regular stores, which was another attraction, especially since a
number of uncommon titles were available. One also had the convenience
of shopping from home.
What was convenient for
the writer, however, was not convenient for Prerana, a Net-savvy
colleague. She points out that for her the whole online shopping
experience lacks something. Asserting that she is a careful shopper, she
says that physically touching stuff, browsing in the traditional sense,
gives her a kind of confidence. And this keeps her from reaching for her
credit card to shop on the Net. The only attraction that she can find in
online shopping is books. As for music, another passion, "if I walk
down the aisle of a music store, I may see what I want, whereas if I
knew what I wanted, I would consider the Net." However, she finds
browsing on the Net tedious, since the pages don’t open on slow
landline connections that most homes in India have.
The growth in the past
year has been exponential—as much as 150 per cent to 200 per cent in
India. However, online shopping accounts for about 2 per cent of the
retail economy in the US, whereas in India it is 0.1 per cent. Industry
sources feel that big western players like Amazon or eBay should be in
India within the next two years. The highest growth has been in
small-ticket items, i.e., those that are priced below Rs 300.
What sells well
Inexpensive products move
the most. In home and grooming utility products, the main items are:
toolkits, knife sets, sewing machines, drilling machines, storage
products, handy vacuum cleaners, shavers and hair dryers.
Though many people like to
have a feel of the fabric before buying it, what sells a lot are
T-shirts, shirts, women’s tops, cargos, wallets, belts and key chains.
Jewellery is also sold, but it sells only in auctions—rings and
earrings are picked up most often.
Standardised products
where discounts are offered are readily bought by customers. They
include movies, music, books and CD ROMs. Books sell well enough in
relation to products sold offline, but not when compared with the sales
in developed nations, even though shipping and handling charges in India
are fairly low.
Who buys
According to Samarjeet
Singh, a senior executive at Baazee.com, 85 per cent of the customers
are male. Up to 34 per cent buyers are 18-24 years old and 31 per cent
25-30. More than 5 per cent of the customers are above the age of 51.
Given better Internet awareness and connectivity in the metropolitan
cities, it is hardly surprising that the top five metros account for 53
per cent of the shoppers.
This profile also
partially explains the movement of high-value products, including VCD
players, FM radios, low-end home theatres, digital cameras, etc.
However, many look up prices and browse on the Net, but go to a store
for actual buying, as did a friend who bought a Bose Wave Radio. Even
though it was for $ 290 on the Net, he preferred to buy it for Rs 36,000
from Chandigarh. "Because then I would have the local
warranty," he says.
How do you buy?
Most of the Indian
Websites give you various options to place the order. You can use credit
cards, which is the most common, though drafts and even cash-on-delivery
is accepted. The number of days taken to deliver the items depends on
the mode of payment, as well as the city.
Various Indian companies
have their own flavours. Rediff, Indiatimes and Sify are portals and
e-commerce is only one of their offerings. They have large traffic and
they push their e-commerce offerings to these visitors. The depth and
width in their product lines/seller base is somewhat limited.
Rediff, Sify and
Indiatimes started with clear focus on NRIs. "Send Gifts to
India" was the first e-commerce category that such companies
started with in 1997. Then followed "remit cash", "online
pooja", "telecom cards" and more.
Baazee.com and Fabmall are
pure e-commerce players in the Indian market but with distinct business
models. Fabmall is a tightly controlled business, which has all aspects
under its control. It focuses more on offline grocery.
Baazee plays the role of a
market maker by providing a platform for sellers to sell and buyers to
buy. It offers fixed-price selling, auction selling and classified
selling as three formats. Baazee auction sales, its USP, contribute 25
per cent of the orders and 40 per cent of the value of the sales.
The online world is
opening up and customers have a new experience to look forward to, the
net shopping experience.
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