India’s Love Affair with Online Shopping – Are Offline Retailers Doomed?

An unexpected off day consisting of a series of postponed plans and a small shopping session at an online store made me write this article. This is, in no way, related to all my legal work relating to e-commerce. However, this is related to the concerns of the offline retailers (here, let's call them "Retailers"), the advantages of buying things online from e-commerce sites (in short, let's call them "E-tailers") and my choice – as a user.

Stats and Trends

According to a Forbes June article, the e-commerce market in India has grown from merely 17 billion USD in 2014 to 23 billion USD in 2015 alone. The same study speculates that in 2016, the market will grow up to 38 billion USD and in 2020, it is expected to be valued at 120 billion USD. Now all these figures, the current trend of youngsters buying everything online, the minimal policy that existed in the e-commerce sector – they all lead to the retailers going severely against any kind of online platform and, continuously appealing to the Government to make the sector more regulated. From tax authorities to other departments – they all have tried to somehow confuse or at least, create hurdles for the e-tailers. Then came the policy changes. And even with the policy change, the e-tailers are doing great, in Indian market. Amazon and Flipkart have shown huge increase in revenues and a sharp fall in percentage loss over the 2014-15 period. With their success, the retailers’ agitation has increased exponentially. Although, the e-tailers involving foreign fund would have to be very careful in structuring their business now, but let’s not discuss that here. The other day, I was talking to a shop owner, who also happens to be a family friend. He was telling me how he used to have at least Rs. 1000-1200 margin over each dress he sold and now, if he asks for too much, the buyers say that they have seen the same dress on some website at a cheaper price.

How My Journey with E-tailers Began

I don’t know about others, but I remember the start of my love affair with online shopping very clearly. I remember in my childhood my parents did order something online and they were conned (like it was very natural in those days) and that was it. I had this racket against online shopping, going on in my head. But, I was actually looking for a Dan Brown book, back in 2009, and I could not find it in the stores nearby. That’s when I turned to Flipkart. Yes, with buying the Lost Symbol from Flipkart, my journey with e-commerce started. Soon enough, I started buying books from them frequently. It was hassle free and I could browse through thousands of books sitting comfortably near my collection of books – it seemed like a great option. Book shopping turned into gadget shopping. My Mom gave me the responsibility to buy a phone for Dad which she’d gift him on his birthday. And that was my ticket. I ordered it through Flipkart and bingo! Their timing was impeccable! And thankfully, there was no rock inside the box (I was expecting it to be a rock)!! So, even though shaky, my confidence in e-commerce sites were increasing. Today, I end up buying all my gadgets either from Flipkart or from Amazon. And they have never disappointed me – till date.

Clothes – A Much Later Addition

Everybody told me how it was not a good idea to buy clothes online. I rigorously believed in it as well. I am a hardcore shopper and I used to do a lot of window shopping before fixating my eyes on a piece. But, what I didn’t like was the crowd. If you have ever shopped in Kolkata, you’d know the crowd before the Bengali New Year, before Durga Puja and also during Christmas. So, mostly throughout the year the places are crowded. I am a part of the crowd too, wouldn’t deny that. But, boy did I hate being pushed and being stood in a line just for trials!! It all started with the Jabong ad that I saw on TV. One fine day, I ordered something just to try – and it did fit. Bam! That was it! Jabong, Myntra!! They both became my new shopping destinations. Then, Flipkart launched their fashion store and my list only got longer. But sadly, Amazon fashion could never impress me. And till date, I avoid Amazon when it comes to fashion.

And Ultimately, Furniture

When the construction work for our office space was underway, I was worried about something completely different – furniture and décor. I am a perfectionist when it comes to interior design. And I didn’t want anyone else to work on my first office either. But what gave me a headache was the thought of buying so many different things from so many different stores. What if I don’t find the thing I am looking for? And Pepperfry came to my rescue. Over a period of three months, they delivered everything I needed and I was so happy with my choice. I even turned my elder brother into their customer even though he was initially against it!!

Making Life Easier

The busier I became, the easier it seemed to me to turn to online stores. Whenever I was in Bangalore, or Mumbai – even if I needed something, I was not worried about not finding the right product, or not knowing the ideal place to shop – hair or skin care products, clothes, books, accessories, furniture – everything was delivered to my doorstep (just like my food orders). It just made life seem easier. And I didn’t have to buy the overpriced things from snob stores (I thought!). For me, e-commerce is something that gives me a lot of options. But most importantly, it saves my time enormously. I don’t have to rely on one store or one brand. There’s a sea of options. And the return and refund process have actually been life-saving – to say the least! And since a lot of manufacturers sell their products directly in these sites, we can always say hello to discounts. A lot of people say there’s no future to e-commerce if there’s no discount. But when you are eliminating at least five intermediaries and directly addressing the customers, isn’t it very easy to give discounts? The discounts are more like the margins that are kept back by distributors, wholesalers, shop owners etc. etc.

The Changing Attitude?

I meet so many start-ups these days who are either operating, or are planning to operate in the e-com sector. Then I meet so many traditional buyers who are slowly getting a hang of the e-commerce ways. From medicine to mosquito nets, from chappals to chocolates, everything is delivered to our door-step – thanks to these guys. And every day, I see new people turning their head towards this – or at least comparing these sites before relying on the brick and mortar stores blindly. And the retailers are also changing their strategy – they are also trying their luck by launching their online stores – going with the flow, you see!

But, the Feel of a Shop Can Never Be Lost!

But somehow, in spite of this constant love affair with time saving ‘Online Shopping’, I have found my way back to the stores. With Flipkart, Myntra and Jabong’s delivery getting slower with every passing day, and with no confidence in Amazon fashion, I’ve finally gone back to my good old ways – to some extent, at least. While I still save my time and money with my bit of online fashion (which is quite a lot), I make it a point to visit a store or two as well. Then there are all those shopping sprees that my friends and I go for, whenever in Mumbai! No online shopping could replace the fun!!

Why Not Co-exist?

And somehow, all these have made me believe that retailers and e-tailers could easily co-exist in this market. The market is so huge and nobody would ever stop feeling the need to buy things (whatever it is). The things may change. But the demand will be there. So, there’s no point in being insecure. And people will still visit a store and the sites. Just because Big Basket is selling grocery, doesn’t mean you have stopped going to the grocery store altogether. It just means that you visit both and often buy the things you don’t even need from Big Basket just because they look pretty, and then come and buy the staples from your local store.

Act Smart, Retailers

Retailers – please don’t worry. Become an online seller instead. Run your store. Run your e-store as well. No matter how much you want the regulators to favour you, time saving means have a way of finding their place in today’s world. So, don’t try to go against the flow. Adapt with the flow. The buyers are going to need much more than good ads and images. They would need to feel the fabric. They would need to walk in those shoes. They would need to see if the wood is perfect. They would want to check out the expiry dates in the medicine before buying. The possibility is endless. And so, embrace this new trend and steer it in your direction. Because, at the end of the day, it is about survival of the smartest, in the industry.

However, if you tend to fool your customers way too much (profit-making doesn’t count, though) without keeping up the fashion quotient, then you might very well be prepared for a dreadful time ahead. As the e-tailers do make everything transparent. And as time is already against you, you might not want to fall behind in any other aspect. Because even though stores will be stores, remember, you do have a very tough competition ahead. Be as adaptive as the cockroach and nothing can stop you from surviving. ;)