Assessing the Impact of Ecommerce on the Indian Retail Sector (2017)

Ecommerce on the Indian Retail Sector  – This dissertation aims to study the impact of internet commerce on the retail sector and the changes in consumer behavior driving the same. The mode of commerce, popularly called ecommerce is gaining huge popularity with many people preferring to buy online at cheaper prices. There has been huge speculation if the promotions and offers provided by ecommerce companies are actually predatory pricing funded by the venture capitalists, and whether these levels of pricing will turn out to be more expensive as the traditional retailers are forced out to the market.

Lower level of competition always leads to higher prices. The research will focus on two companies- Amazon and Reliance retail for the purpose of study and research. The traditional retail sector needs to adapt to the fast changing landscape with a better strategy in face of high price competition from the ecommerce sector. In fact, the competition is not only price based, but the internet shopping is also quite convenient for users. The study will show the mode followed by few retailers like Asda, Boots who have adapted to this changing environment very well, with their retail offering including on-store as well as ecommerce mode.

The costs need to be worked out in a way to create similar pricing for both on-store as well as ecommerce routes. Many of such firms offering dual mode prefer to charge additional delivery charges for ecommerce mode, especially for home delivery.

While the mode of ecommerce is cheaper in terms of real estate (as there are smaller needs to retail spaces, only warehouses are sufficient), it is very subjective as to whether it’s actually cheaper than traditional commerce. This is because the ecommerce players still need to pay for the delivery costs which is likely to be higher than traditional retailers as the delivery needs to be to the customer’s doorsteps rather than to the retail shops.

Also, the cost to build and maintain the web portal cannot be ignored. There is significant investment required in the web development and maintenance, logistics costs and warehousing costs. The study will try to compare the costs of ecommerce mode versus traditional retail mode for mid-sized and big firms. The channels of logistics and supply chain is likely to be a sought after area if ecommerce were to grow more, and many more people were to order home deliveries. The growth in ecommerce is disproportionately high, and the growth in logistic capabilities may not keep pace with this, leading to problems in delivery.

Dissertation aims and objectives

• Identifying the category of people in India more willing to buy on online commerce mode, categorization may be based on gender, marital status, income, profession, education, etc.
• Identifying how much value Amazon India and Reliance retail hold in the minds of the consumer and how much of percentage shopping urban consumer do from them
• Identification of value in traditional retailing and online retailing in the minds of the customer. Which attributes of either does the consumer value and how can it help the firms in designing their strategy

• 14,000 words – 56 pages in length
• Excellent use of literature
• Excellent analysis of subject area
• Well written throughout
• Includes questionnaire
• Ideal for international business students

1 – Introduction
Background and Context
Aims and Objectives
Scope and Importance
Dissertation Structure

2 – Literature Review
Introduction to Traditional Retail and Ecommerce
Maturity versus Growth Phase In Ecommerce in Developed and Emerging Markets
Multi-Channel and Omni Channel Ecommerce
Dotcom Bust and Impact on Ecommerce Valuations
Expected Growth in Indian Ecommerce and Present Services
Market Segment Which Does More Online Shopping
Growth of Reliance Retail Stores
Amazing Growth of Amazon India
Online Shopping by Demographics
True Measure of Transaction Costs in Retail Transactions
Use of Supply Chain Management for Ecommerce Success
IT Costs Associated With Running Ecommerce Business

3 – Methodology
Research Framework
Research Philosophies
Research Approach
Research Purpose
Types of Research
Research Strategies
Surveys
Interviews
Time Horizons
Data Collection and Analysis
Interviews
Questionnaires
Secondary data
Sampling Techniques and Size
Ethical Considerations

4 – Data Presentation and Analysis
Customer Survey
Demographic Information
Management interview
Reliance Retail Interview
Amazon Interview

5 – Results and Discussions
Customer segmentation based on demographic factors
Gender Wise Segmentation
Income Wise Segmentation
Marital Status Wise Segmentation
Age Wise Segmentation
Profession Wise Segmentation
Amazon and Reliance Retail

6 – Conclusions and Recommendations
Conclusion
Recommendations
Further Research

References

Appendix
Survey Questionnaire