COMPREHENSIVE STUDY OF APPAREL E-RETAILING IN INDIA

Abstract

Online retail accounts for over 10 per cent of India’s GDP. Fuelled by increasing customer base, rising disposable income, changing lifestyles and growing absorptive power of the domestic market, online retail sector is likely to grow at a much faster pace of 45-50 per cent per annum. The e-commerce sector in India is certainly a beneficiary of the growth of the Indian economy, but it is also a key cause and catalyst of that growth, and will remain so for at least 15 years. Considering that modern e-retail will have a positive, multiplier effect not only on the economy, but also on employment, direct and indirect government revenue, industrial output, urban and rural development, strengthening of infrastructure, etc, it would be fair to expect the government to play a supporting role. It is interesting to note that the bulk of the retail development in India has taken place through self-motivated efforts of the Indian retail industry, with no external support from government agencies or for that matter, industry lobbying of retailers. Online shopping has seen a lot of traction in the last 12-18 months. India has almost 130 million online users at present, out of which as many as 10% are engaging in online transactions. The online user base is expected to cross 300 million in the next 2 – 3 years and a larger percentage of people are expected to transact online by 2015. This large base will provide vast scope for e-commerce businesses to establish themselves in India. The e-commerce industry is growing at a rapid pace and changing the dynamics of the retail industry. In the coming years, e-commerce is expected to contribute close to 8-10% of the total retail segment in India. This growth is bound to continue provided e-commerce companies focus on innovating, building strong technology infrastructure and delivering the best customer experience