It is always believed that Indian consumer are very much prone to ‘touch and feel’ factor before making a purchase. Experts used to feel certain categories online will not be revenue generating.
According to comScore, non-travel/auto/gas/food e-commerce sales represented just 7.1% of total retail sales in the US in Q2 2010. But, significantly, online sales have grown at an annualized rate of 9.7% since 2006 (vs. the 2.3% annualized decline in total retail sales over that same period, which includes the Great Recession). Indian in online retail is a Rs 1200 Crore industry, growing at 30%. However, time and again they have been proven wrong by innovative online retailers who have developed tremendous category focus. Internationally, Zappos.com did this with shoes and Bluenile.com did it with fine jewelry. If we look at domestic players flipkart.com, futurebazaar.com, trades.in, infibeam.com & timtara.com are doing good across the categories. No of players now focusing on their e-commerce arm. Gitanjali group is trying to replicate bluenile in India. Bata shoe one of the most trusted brand of India has started their online arm as well. Players like Adidas, Lifestyle and many more focusing on online sale. These are typically the products have the touch and feel.
Gradually it seems like dot com bubble is long behind us. Now its clear that the shift from malls of bricks & mortar to stores on mouse click was not a two- to three- year revolution, but a 15-20 year evolution.
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