100 per cent FDI in Single Brand Retail: What's in there for Retail n eRetail

For Retail

First n foremost expected positive outcome will be it will give huge boost in foreign investment. Few experts from industry believe single brand retailing can contribute half a percent of total FDI in next 5 years. Big Brands like Addidas, Nike, Louis Vuitton and Gucci   IKEA, M&S and few other foreign retail giants seem to be among definite starters as they already have significant sourcing from in-country suppliers. Many more luxury brands are expected to sneak in with big plans. It may generate lot of investment and job opportunities. Despite of all positive sentiments many believes there are certain regulations that will never allow to achive such big results that are expected. One clause says that these big giants have to procure 30% of their raw material from Indian SMEs.

Decision taken in interest of Indian SMEs and small entrepreneurs but are Indian SMEs are fully ready for the same is gonna be big ask? Or these big giants will prefer this step also a consideration.

For eRetail

In 2011 alone, investors poured $350 million (Rs 1750 Cr apprx.)  into 57 internet startups - that's more than the collective dotcom investment of the past four years, according to VCCEdge, an Indian online deal platform. Some $3 billion worth of e-commerce was transacted in 2011, says IAMAI. And, according to Helion Venture Partners, $20 billion worth of e-commerce will be done in five to seven years, with 12-15% of shopping going online in this period. Till date, however, the Indian Railways website for booking tickets is easily the most successful e-commerce model. Launched in 2002, irctc.co.in sold just 27 tickets online on its first day. Today, it sells 4 lakh. According to Verisign, an internet registry, about 2.6 million dotcom and 'dotin' companies are registered out of India. Along with this Indian internet users no is going to 30 Million by 2015. Certainly with 30% year on year growth rate eRetail seems to be most promising. If retailers get investment and out of that 10-15% get diverted to online retail, surely there will be boost in growth.

All in all it’s a big positive step for retail. There are certain clause to be amended smartly.  It also indicate that soon multi-brand retail will get 100% FDI as well. Which surly will open doors for even bigger success in Indian retail and agrarian practitioners.


-Nikhil Kunwar

Internet Retail Seems to be Most Promising Industry in India

Indian online industry will be more than its double fold from its current stand. The market size of online retail industry in India is likely to touch Rs 7,000 crore by 2015 with the increasing internet reach across India, a survey said. Currently, the online retail market stands at Rs 2,000 crore and is growing at an annual rate of 35%, industry chamber Assocham said.

India is set to become the third largest nation of internet users in the next two years. Metros are leading the way to make it India front runner across globe. Among big cities, consumers in Mumbai topped the chart in online shopping followed by Ahmedabad and Delhi. 

Booming economy, higher disposable income & changing life-style where coming generation are falling in the early adopter category for accepting new technology, making favorable environment for eRetail in India.

Young shoppers need option to buy any time with a feature where they can compare features & prices. Online retail is a perfect medium for such customers.

No waiting, no fuel expanses and time saving are the main reasons that makes Mumbaikars top online shoppers. In Metros internet penetration is good and people have less time and more disposable income, so metros are leading the way.

Facilities like free shipping, product ratings/ reviews, multiple payment options, product demonstration videos and free return policy largely influence the purchasing decision of consumers shopping online.

Nikhil Kunwar

Hoping Good Response in Emerging Categories of e-retail- FMCG

Now buy FMCG products online

Online Retail in India moving towards High Risk High potential categories like FMCG. Though Categories like Apparel & electronics struggling for survival but still companies like Dabur, Himalaya Herbal Healthcare, Neutrogena, Oriflame, Amul, Future Group, Aditya Birla Retail, REI Agro and Carrefour, have a strong belief they will be able to expand their reach through the internet.  Dabur already have started selling personal care products from their online site- http://www.uveda.retailmart.com

"FMCG companies and retailers have started using the online medium not only for brand promotion but also for sales. It is a difficult category to break into in terms of online sales, but many players are making aggressive efforts to do so," Wirefoot India Technology (an online retail consultancy firm) MD and CEO Ankur Dinesh Garg shared his view in his recent interview.

FutureBazaar.com is selling personal care & child care products online. "We are experimenting at the moment with a limited number of FMCGs. The category offers a good opportunity in terms of consumer’s frequency and repeat orders online," FutureBazaar.Com President Kashyap Deorah said in an interview.

In India internet industry contributes 3.2% to GDP which is almost equal to world’s average, but if you look at fraction to online retail out of it, it lowest in the world. In such scenario categories like electronics and apparel not able to give the sustainable boost to business, I will be big challenge to make their way categories like FMCG.

At the same time the way online retail is growing in India, it will definitely give some positive result 2 years down line. Big companies investing big to develop online channel to reach their consumers and it’s been a right time to do so. Once FDI will be open in multi brand retail this channel would become more lucrative and sustainable.

Nikhil Kunwar

Internet Industry Contributes 3.2% to GDP

With the evolution of ICT worldwide, the Internet becoming a strong and far reaching platform for every business. Slowly and gradually Internet becoming a substantial contributor to GDP across globe. India too witnessing good growth in internet industry. Below graph shows how internet industry is contributing to GDP in fast growing & developed nations-

Per cent contribution to GDP by Internet Industry

- The Internet has 3.4 % share of total GDP of the 13 countries that were studied. The share of the Internet in India with respect to its GDP is 3.2%, fairly close to the global average but still lower than it.

- Private consumption online is driven by purchase of goods and services by consumers through the Internet. India and China have the lowest Private consumption among the 13 countries.

- Trade Balance is the (total export of goods, services and internet equipment along with B2C and B2B e-commerce) minus (internet related imports). The impact of the internet in India was powered by strong exports and contributed 47% to the Internet’s share in India’s GDP. 

- The spending by the government is the Public expenditure in the chart and you will see that the government spending accounts for only 5% of the Internet generated GDP

Though private consumption is very less in India which means still Indians are not shopping and transacting much online but still strong in internet industry against other countries. India has managed to achieve a growth rate previously unseen anywhere in the world and get almost 200 new Internet industry related patents every year.

The challenge for us now, is to capitalize on the human resources available with us and of course, Investment in infrastructure development is a must for to fully realize our growth potential.

Nikhil Kunwar

Tablet PCs Supporting m-commerce to Become Next Big Thing

Biggest challenge for e-commerce is user experience. When it comes to mobile commerce it goes even micro. At the same time m-commerce seems to be more promising as it is more mobile in nature. Now tablet PCs making it even more promising. Recent research Internet Retailer shows that 1% of surveyed shoppers say mobile is their primary source of online shopping. Though the no is less but it is next big thing for sure.

HP Dream Screen

Apple has launched iPad 2, iphone 4, Motorola coming with their tab with name of Xoom, Blackberry has launched Play book meanwhile HP has also brought their tab Dream Screen. There are companies that are developing apps for these latest gadgets only. 7-10 inches screen give a better user experience then a smartphone. Better reach of internet and 3G services surely make it more attractive.

India e-commerce industry is around of Rs 20,000 Cr and growing at 20-25% year on year growth rate. I think India is a good potential market where disposable income is higher and appetite to buy online is growing day by day. Indian customer becoming more n more tech savvy. Yes, it will take time to become m-commerce big thing but the pace m-commerce is growing and at the same time latest technology and infrastructure is supporting it, it has huge potential to be next big thing in e-commerce space.

Shoppers Shops More on Tablets than Smartphones

ebay on Tab

Shoppers browsing a mobile commerce site on a tablet, such as an iPad, are more likely to make a purchase than those shopping via a smartphone, finds new research from The E-tailing Group Inc.

Of the 996 consumers surveyed online, 68% of tablets owners say they used the devices to make a purchase compared with 48% of smartphone owners. Of those tablet owners, 25% of made at least six purchases in the six months prior to the February survey versus 16% of smartphone owners.

More tablet owners also made at least one purchase in the survey period. Of tablet owners, only 22% say they did not make a purchase, compared with 36% of smartphone owners.

Consumers may shop more on tablets than on smartphones because the experience is “more visually engaging with unparalleled convenience. In the survey, 88% of respondents rate their tablet shopping experience as somewhat to very satisfactory, compared with 73% of those using smartphones.

Top three smartphone purchases were books and magazine, made by 37% of the respondents; tickets, 31%; and clothing and accessories, 26%.

While books and magazines also were the most popular purchased by tablet owners, made by 45%, clothing and accessories was the second most popular, at 37%, followed by digital books at 30%.

The tablet offers a unique opportunity to sell to a highly qualified target audience. Tablets can be a boon to catalogers and retailers who want to offer a highly visual site or mobile app, she notes. That is exactly what Restoration Hardware did. Its new iPad app includes all 588 pages of the furnishing retailer’s current catalog, enabling users to click on a product image to get more information and complete a purchase.

While one retailer may have success with a tablet, another’s mobile store may be better suited to a smartphone. It comes down to understanding what the device is and using it accordingly. Retailers must understand how their customers like to shop before crafting a mobile strategy.

Source:- www.internetretailer.com 

Cash Vs Card: Card is winning race in emerging markets

Convenience, security and better shopping experience playing key role in making card winner over cash. Electronic payments can revolutionise the way people pay. The increasing benefits of electronic payments worldwide can be seen in their rapid growth across many emerging markets. According to the World Payments Report 2010, non-cash payments in Russia rose 66 percent between 2008 and 2009, while China (+29 percent) and South Africa (+25 percent) also posted large gains. 

While India has seen similar growth numbers in debit cards (+42% in FY2009-10 compared to the previous financial year, cards still account for less than 5 percent of consumer spending.

Why pay by card?

Increasing card usage often depends on increasing consumers’ awareness of the benefits of using them. These include:

Convenience and control: Cards allow people to shop and manage their spending without the need to carry cash. Cardholders can choose between using debit cards which gives them the security of knowing there will be no interest payments on purchases or using credit cards for greater flexibility.

• Greater security
• Time Saving
• Enables online shopping
• More payment options
• Better consumer control

Cash vs cards – The advantages of electronic payments

This table below illustrates the typical advantages that card payments offer consumers over cash. Not all card products carry the same level of functionality. 

	Cash	Debit cards	Credit cards
Budget control	Some	Yes	Some
Replaced if lost	No	Yes	Yes
Monthly statements	No	Yes	Yes
Transaction insurance protection	No	No	Yes
Card and transaction security features	No	Yes	Yes
Reward programmes	No	Yes	Yes
Revolving credit	No		Yes
SMS transaction alerts	No	Yes	Yes

India is already making rapid progress in developing electronic payments. Several industry-leading technology applications are already widely used to improve customer service and security. For example, Indian banks send SMS messages to clients after they have made an ATM withdrawal so that cardholders get confirmation that a transaction was carried out on their account. Value-added applications like this encourage more people to pay with cards.

Source-http://www.indiainfoline.com

Online Speciality Stores: e-commerce going one step ahead in India

www.nethaat.com

We have e-commerce businesses for books, flowers, electronics goods and so on. What next? Handicrafts. India is the land of handicrafts ranging from brassware to wooden crafts to paintings to zaris to traditional pottery to crockery. New Delhi-based Nethaat Softsol Pvt Ltd has launched nethaat.com, an e-commerce website focused on handicrafts, to take advantage of the demand for handicrafts in India and overseas. Launched in January, Nethaat sells a range of products from hand made earrings priced at Rs 50 to marble replicas of Taj Mahal, posters, tabletops and at the higher end, paintings worth Rs 60,000.

Nethaat hopes to do in India what Etsy, a similar business in the US, has done in that market. The New York based handicrafts e-tailer has grown from $180 million in sales in 2009 to $314 million in 2010. It’s another matter that the US e-commerce market is well developed compared to what India is currently.

www.DogSpot.in

On the similar lines DogSpot.in is coming up with a e commerce solution to cater very niche segment. DogSpot.in is looking to serve dog lovers in India, No one in India has tried to serve this segment. one website where one can get all dog accessories and essentials on a ease of a click. Gurgaon based company follows all dog shows in India to understand and reach the right target audience. Soon, for your dog you can get special service at your door step with a smile.

Online retail is witnessing 30% growth rate year on year. Already there is a net to net competition among the players in the domain. Between established players it would be interesting to see how these companies with speciality online stotre will position themselves.

Nikhil Kunwar

Bleed Blue

All The Best Team India for the Final Match............Wanna see World Cup in the hands of Sachin Tendulkar...!!!!!!!

4-reasons-e-commerce-is-set-to-boom-in-india-2011

E-Commerce is one of the most exciting spaces for today’s global online community, and India’s young startup economy is along for the ride. In the less than three months of 2011, Indian VCs have already invested over $50 million in seven e-commerce companies, a 400 percent increase over the same period just last year

However, e-commerce in India has a long road ahead, and e-commerce infrastructure and best practices are in their infancy. India’s 7 to 9 percent Internet penetration lags far behind the 30 to 40 percent China and Brazil enjoy, and while India’s estimated 100 million Internet users still comprise the third largest online population, the total Indian e-commerce market was approximately 3 percent of the U.S. market last year ($6.7 billion versus $227.6 billion).

Within these great challenges lie great opportunities, and the maturation of India’s e-commerce ecosystem is no different.  A recent report by the Internet and Mobile Association of India reveals that India’a e-commerce market is growing at an average rate of 70 percent annually, and has grown over 500 percent in the past three years alone.  Here are four reasons that e-commerce is set to boom in India, after years of false starts:

1. Critical mass of Internet users: With more than 100 million Internet users, the country is beginning to achieve a critical mass of users who are familiar with web services.  In addition, over the past few years, relatively sophisticated online travel agents (“OTAs”), such as MakeMyTrip – which started turning these initial Web users into Web consumers – have dominated Indian e-commerce. While these OTAs have accounted for up to 80 percent of Indian e-commerce in the past, industry giants such as eBay and the new crop of e-tailers expect to participate more heavily in this conversion of Web users to Web consumers, with an estimated 70 percent growth in Indian e-commerce for 2011.

2. Rising middle class with disposable income: Throughout India’s short history, the country has been a land of “haves” and “have-nots”.  However, with the rise of small and medium enterprises, foreign direct investment, and India’s own powerful multinational corporations creating millions of new jobs, a new generation of globally-minded Indian consumers has been created. These consumers are spread across the country. Furthermore, access to many global and domestic brands is limited to major metropolitan regions, such as Delhi, Mumbai, and Bangalore. Therefore, this growing middle class is increasingly turning to e-commerce as the primary outlet for sophisticated consumer products and services.

3. Payment gateways & logistics: One of the largest challenges to e-commerce in India is the lack of infrastructure to support new businesses. Logistics companies have been notoriously unreliable, and complex interstate regulations mean that interstate logistics and paperwork is more like international customs. Additionally, Indians have an aversion to credit cards – only an estimated 2 percent of the nation has a credit card. However, the new breed of domestic logistics companies recognize the importance of reliable delivery and technology investment, and a number of new payment gateway companies such as CC Avenue have sprung up to service the growing e-commerce ecosystem. Alternative payment methods such as netbanking and cash on delivery are now mandatory offerings for leading e-commerce platforms and can drive as much as 75 percent or more of transactions, and sophisticated technical integrations make the experience seamless.

4. User Experience:  Of course, the primary driver for e-commerce anywhere is the user experience. Customers prefer a trusted relationship with an e-commerce brand, and the conveniences and reliability of e-commerce businesses have to outweigh the benefits of traditional retail outlets. Because there have been a relatively small number of successful consumer Internet companies in India, there has been less competitive pressure to force implementation of global best practices. However, as the number of e-commerce companies has grown, companies have started to place more emphasis on investing in the user experience. Best practices that have driven e-commerce globally are now a key focus of successful Internet companies, including merchandising, customer service, user interface design, and guaranteed delivery and return policy. In this competitive drive to differentiate via user experience, the ultimate winner is the Indian online consumer.

Courtsy- Business Insider