View of GROWING ONLINE INDUSTRY IN INDIA-A GLIMPSE

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Vol.03, Issue 05, May 2018, Available Online:www.ajeee.co.in/index.php/AJEEE

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GROWING ONLINE INDUSTRY IN INDIA-A GLIMPSE Dr. Ona Ladiwal

Associate Professor, SKIT, Jaipur

Creativity and Innovation is the great way to success in this digital age. In this era there is no need to involve fixed cost in initial stage. The whole world is now converted in a single market with the help of technology. The way of innovation in business means doing something diverse, smarter or better that will make an optimistic difference in terms of worth, quality or productivity by using promising or proved technologies of the world. The technology changes the strategy and ways of doing business. Currently online shopping, digital marketing, social networking, digital communication and cloud computing etc are the best examples of change which came through the wave of information technology. These days accurate business planning, effective marketing, global sales, systematic management, real time monitoring, instant customer support and long term business growth cannot be achieved at the optimum level without support of IT.In this article we are going to discuss about various online market places like fashion,food which gives a immense opportunity to newly emerge entrepreneurs.

1 ONLINE MARKET PLACES IN INDIA In India there is a huge scope of E-traders to set up their new ventures. In Indian there are 450 million internet users in 2017.There are various market places like Amazon,Flipcart,Snapdeal,Limeroad,Paty m,Swiggy,Ubereats,Zomato,Food Panda present in the market.the growth of this market is unbelievable. Statistics shows that in 2009 the worth of indian ecommerce market was 3.9$ billon where as in approx. 100 million in 2016.

The main sector in online ecommerce market are online travel accounts. Beside this fashion and apparel category also contributed.

The digitalization and E-commerce market payers change the whole scenario of country .There are five major big changes in 2017.which are as follows-

1) Flipcart is the market leader in 2017 by the virtue of its all initatives like it introduce Express program for the faster delivery of goods. Flipkart Global was launched to allow its sellers to export their products to over 190 countries.

2) Amazon setup its fulfillment center in Telangna. Company is investing more and more money for the fast business model in India. Amazon offers direct access to retail customers across 10 countries like Canada, France, Japan, the UK, and the US. Amazon has also built the Service Partner Network (SPN) to help sellers in listing, cataloguing, running ads,

logistics and warehousing, accounts and reconciliation.

3) Growth of Online grocery market –Big Basket Play a crucial role.In the grocery segment they create a remarkable achievement.Grofers also play a important role,Grofers is also an grocery delivery service .It was incorporated in December 2013 .Currently Grofers is successfully served in 13 cities across India.

4) Swiggy,Uber eats plays a big role in food Industry .They are not only satisfy the taste bites of people at home but also provide job to various people.They are making restaurants profitable as now they are serving people in morning, afternoon and evening. Swiggy was enthused by the thought of providing a whole food ordering and delivery solution from the best locality restaurants to the urban foodie.

5) Beside this alibaba and other places are moving ahead with their stratagies.

2 MARKETING IN DIGITAL ERA

E-marketing provides rich resources for buyers ,sellers and learners.

Opportunities range from virtual marketplace like-Amazon and ebay to a series of online directions where organizations can get their product and services .The transaction are not only B 2C but it is also B2B which provide sellers a vast scope to sell their products on fixed cost as well as on auction.The

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2 branding of the products are also important for creating image of company.

There are various ways of marketing products through Digitalization-E-mail marketing Internet marketing Mobile Marketing Social Media Marketing

In contemporary environment people are using one or more ways of digital marketing too to reach end user.In E-mail marketing we can send news letters,dedicated e-mails to the customers .where as in with the help of SEO,Blog marketing and per click marketing

We can make our product popular.In mobile marketing we use SMS marketing,Mobile banner ads as an effective tool of marketing.

These days social media marketing is very important tool used by E- commerce Vendors. As we know various social media markets are used like Facebook, Twitter, Pinterist, Instagram in which a marketer publish blogs and advertisements related to their product.

Twitter emerged as the favorite campaigns platform for BJP,AAP and other several political leaders in elections.it charges companies based on engagements and followes.

3 ONLINE SELLERS CHALLENGES IN INDIA

As we are aware that ecommerce is an upcoming and most demanding entrepreneurial desire of every new business person . To become successful in any business one should understand the e-commerce challenges in India.

1) Inadequate Market Research- It is seen in today’s business era that everyone is interested to do online business but they have lack of knowledge about what to sell and who to sell. So they invested their money in such product which are not sellable and unique from other sellers. To become successful e-tailor one must understand the top selling products. So he can multiply money in initial phases of business

2) Pricing-Every market place charges their commission for selling products on their site. It also include some penalties, shipping charges, packaging charges. So it is challenge in front of seller that how could he satisfy customer and earn money .Although he need to pay all charges.

As sometimes various sellers are also selling same products on different sites so sellers should also face price war. The best strategy to overcome this problem is to keep customers happy by supplying quality products and always innovate new products.

3) Working Capital-In this business there is huge requirement of working capital. Sellers are required to keep all products available at all time.

Customers requires products as soon as they purchase .Every site want that product should be ship with express delivery. So it is essential for sellers to update and keep their inventory.

4) Customer Dissatisfaction-The major another challenge faced by commerce retailer is that they are not able to satisfy customers at all parts. So when customer return product it is a cost for a seller as he need to bear shipping cost and return charges.

5) Search Engine Optimization-It is essential for ecommerce vendor to understand the various techniques of SEO to promote their products. It’s not easy to make the product visible as customers don’t come on their own. We have to market hostilely both online and offline. It is sensible to devote time and money in SEO, not too costly social media ads and Google advert, Instagram, YouTube, content marketing etc. to rise our online existence and to build a robust base of faithful customers 6) The other most challenge in front of

ecommerce industry is that many customers want to touch and feel the product before purchasing .Especially in clothing and footwear section .So for particular some sections customer want to go to retail shop and gain the experience of the product. Beside this many Indian customer still have fear of online money transaction.

Security and credit card fraud is a biggest challenge for online payment transaction. As a result, consumers also distress their inability to recognize scams and scammers, meaning that your website has to be extraordinarily safe and tested for most consumers to belief using it.

The another challenge that in India most of customers are technologically

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3 sound so they are still not understand the pros of digitalization and profits of online shopping.

Ecommerce sellers are not only selling and serving for Indian customers but through the help of ebay and amazon.com they are serving for USA ,Australia ,UK ,Japan and many more countries. The biggest challenge is the reverse shipping cost .As if customer don’t like product they no but in interested to bearing reverse shipping cost.It is finally a loss for a seller.

3.1 Food Industry online

The online market places give a great platform to food Industry. It is observed in various reports that this make changes in dietary habits of people. This is the era of digitalization in which various pros and a con has been observed of new techniques.

3.2 Swiggy-Change the dynamics of food Industry

Swiggy is just four year old company and now it is one of the most successful company in India .It provides employment to various people and open door to new restaurant to get famous very soon.This company was started in 2014 with only six delivery boys.In the next year it expand to 7 more cites in India.In 2016 it reaches more than million orders per month.In 2018 it is now raise $100 fund from one of the biggest firm of china .Now it is getting more than 14 million orders per month.

Swiggy is now expanded to 24 cities in India. Today, Swiggy is the leading food ordering and delivery platform in India. The advanced technology, huge and quick delivery service, and excellent consumer effort at Swiggy allowed a host of aids that includes lightning fast deliveries, live order tracking and no limitations on order amount, all while having the desire of loving their favorite meal wherever they like it.

Zomato- This is founded in 2008 and its headquateris in Gurgaon. It is coverd 24 countries and expending in allover world. Approx 5000 employees are employed in Zomato. There are various kinds of services are provided by zomato which are as follows-

1) Restaurant Search & Discovery

2) Online Ordering

3) Table Reservations &

Management

4) POS Systems, Subscription Services.

Its biggest marketis India, as well as the UAE, Indonesia and three other Asian markets. Zomato raise funded from various companies like Alipay Singapore Holding Ltd ..Zomato has various programs like

1)Zomato Gold-Zomato launched its premium subscription program Zomato Gold in India in November 2017, after piloting it in Portugal and the UAE.

Zomato Gold crossed 26000 subscribers within the first seven-eight hours^[35] and instantly became a hit amongst the users in India

3.3 Uber Eats

Uber Technologies Inc. is a multi- dimensional company and serve in areas of is a taxi cab, two wheeler sharing, and online food market place.

Its head office is situated at San Francisco, California, with operations in 785 metropolitan areas worldwide.^[1]It can be log on via its websites and mobile apps. Uber has been prominent in the Uber is estimated to have 100 million worldwide users^[8] and a 69% market share in the United States.Uber eats is coming with lots of strategies for capture the virtual food market places.For this Uber Eats has entered into a strategic partnership with cafe chain Café Coffee Day to launch a network of virtual restaurants across multiple brands that will be available for delivery exclusively on Uber Eats.

3.4 Positive aspects of online market places- Efficient Food delivery process Due to the online food Industry market places the restaurant can increase their food preparing and packaging efficiency.

When any order is placed in any restaurant the chief has to prepare and package the food in efficient manner. The staff need to work hard for delivery process. It save the time of customers to come and wait to have food at restaurant.

3.5 RestoredIncome model

It give the profit model to restaurants as more orders are take place in whole day.

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4 So many people who are not able to come at restaurant they can place order and have food at home.

It increase in profits and now there is some work to restaurant at odd times.

3.6 Access to a broader market

Having a robust online presence can help you revitalize your business process and you will be able to access a larger customer base, this involves effective promotion of your services, your menu and if you are offering any discounts or offers on certain products. Even if the restaurant is not open 24/7, it’s services and products are available to customers 24/7 thereby getting access to a wide

range of customers.

3.7 Flouting the weather obstruction When there is climatic conditions fluctuate the dip in sales covered by online food market places. The customers are not able to come to the restaurant as there is bad weather outside. So online food market place provide an opportunity to restaurant and customer both to earn money and customer is delighted by delicious food at home.

3.8 Linking with Clients Digitally

Online food industry create a huge database of its customers who are purchasing again and again the products.

There are various customer base activities has also been conducted to get the valuable feedback and improve the quality of your service .We can also intimate the customer about certain offers by sending notifications in the form of push messages.

3.9 Negative aspects of online food industry- Latent Intervals

In online food orders there are considerable delay in delivery of food.This delayin food delivery is due to high traffic,fluctuation of wether,more orders on the same time. Delays can damage the brand reputation and can donate negative reaction.

3.10 Extra Employment Costs

The online market places require additional manpower and extra facilities which is increasing of the overall labor costs. If we are not reliant on on a third party delivery service agents like Swiggy,

we will require vehicles and have to tolerate with the earningcharges of preservation.They require special bags to carry the food to maintain the temperature and quality of food.

3.11 Food quality can be conceded The food quality is on stake due to the continuous never ending condition of online orders queries of food quality continuously exists. Although while all careful parameters there are chances of food get spoil. Sometime the food quality is differ from fine dining services in some restaurants

3.12 Expensive Delivery Charges

Most of the restaurants favor differential pricing due to the additional costs incurred due to the delivery of food to your doorstep. Certain restaurants have set a minimum price order for home deliveries which may or may not be favorable with the customer’s budget.

3.13 Law for Ecommerce Market Places-

According to recent news government of India is forming rules and regulations for E-Commerce Market places.It might be a provision in it regarding the discount and MRP regulations.

The role of E-Commerce market places will get higher status in upcoming years. It will capture the local retail market. According to a recent survey it will expected to develop and reach near about 1.60 trillion by 2026.

It is also expected that its growth rate will be 12 percent per annum.If we divide Indian retail sector in to organized and unorganized sector we found that unorganized retail sector contributes 91

% and organized is only 9%

There are various Indian and foreign investors which are investing money in these market places. According to Department of Industrial Policies and Promotion (DIPP) The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totaling US$1.04 billion during April 2000–June 2017.

4 CONCLUSION

The industry in India is experiencing a major renovation.The growth of online market places are in all directions like food,cloth and other facilities. If is

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5 estimated that ecommerce will be growover the $100-billion mark in the next five years, thus provide a significant role in India’s GDP.The digitalization is done more and more with the mobile application. The current focus of e- commerce companies is on increasing their reach through mobile apps for higher growth. The future of e-commerce absolutely looks optimistic and will be the result of mobile platforms, personalization, social media analytics, omni-channel service and sharing

economy business models. Online retail companies must beground-breaking and keep on proposingexclusive experiences in order to win consumers’ loyalty.

REFERENCES

1. E-Commerce , Fifth Edition: An Indian Perspective, P.T. JOSEPH, S.J.PHL Learning PVT Limited

2. Ecommerce Analytics: Analyze and Improve the Impact of Your Digital Strategy, Judah Phillips Pearson Education

3. E-Commerce, MamtaBhusry, Firewall Media,Laxmi Publication