International Agribusiness Management Institute
Anand Agricultural University
Anand-388110
Name: Patel Rikin V. Major Advisor:
Reg. No. 2040618014 Dr. Shaktiranjan Panigrahy,
2nd Sem. MBA (ABM) Asst. Prof. & Head,
Date: 7th September 2019 Department of Operations
Management
SYNOPSIS
TITLE: ONLINE SHOPPING IN INDIA
Introduction:
Online shopping or e-shopping is a form of electronic commerce which allows consumers
to buy goods or services directly from a seller over the Internet using a web browser. India
is witnessing an unprecedented economic boom in services as well as goods industry and
this economic boom is visible all around us. Companies are facing a tough competition in
this dynamic era of business. They are always looking for new avenues so that they can
increase contact with consumers; and to achieve this aim, they are letting no stone
unturned. Due to increased awareness, employment and increased per capita income of
Indian consumers, there has been an exponential rise in consumer spending. Experiencing
the convenience of avoiding travelling to shop and to time saved in bargain hunting are
adding advantage and craze for online shopping. Almost all portals offer an easy return
policy. So even apparel shopping is seen gaining momentum as buyers are no longer
worried about being stuck with the wrong size or fit of clothing. Cash on delivery is also
giving sense of security to Indian consumers. With the universal availability of Internet
connectivity, consumers save time and efforts by shopping online. The increasing use of
Internet by the younger generation in India provides an emerging prospect for online
retailers. There is a common saying about the Indian retail consumers' "can't touch, won't
buy" mentality. However, this is gradually changing with the rising trend of online
shopping.
Review of literature
Chilka and Chauhan (2018) mentioned that increased access of internet service has made
it possible to make Indian consumer purchase online and special cashback policies, 24hrs
Customer Care service, better and safer online banking services offered by online shopping
websites is a key driven of online shopping in India.
Sadekar and Pereira (2018) concluded that the five factors that were prominent to induce
customer satisfaction towards online shopping which are security, worth for money,
comparison, money saver and personalised attention.
Kumar (2016) observed that perfect indication of increasing significance of online
shopping websites or stores in the life of Indian consumers. The young population is the
main attraction of this online industry and they highly contribute fast growth of online
shopping in India.
Kumari et al. (2016) mentioned that Customer of the online shopping is agree with the
proposition and feel that time convenience, Price comparison, Information accessibility,
infinite choice of products and services, easy to access customer review, no shopping
crowds, better prices, is a most important ingredients which motivates them to buy online.
Online shopping trend in India
The Indian E-commerce industry has been on an upward growth trajectory and is expected
to surpass the US to become the second largest E-commerce market in the world by 2034.
The E-commerce market is expected to reach US$ 200 billion by 2026 from US$ 38.5
billion in 2017. (IMAI Report, 2018). India's e-commerce market has the potential to grow
than four folds to US$ 150 billion by 2022 supported by rising incomes and surge in
internet users. (IMAI Report, 2018). Online shoppers in India are expected to reach 220
million by 2025(IBEF Report, 2019). Propelled by rising smartphone penetration, the
launch of 4G networks and increasing consumer wealth, the Indian E-commerce market is
expected to grow to US$ 200 billion by 2027 from US$ 38.5billion in 2017. (IBEF Report,
2019)
Reasons for growth of online shopping in India
India has joined the bandwagon of a flourishing e-commerce business and this is pretty
evident from the sky-rocketing numbers of internet users in the recent years. E-commerce
activity in India has grown phenomenally over the years and the internet penetration
numbers have augmented tremendously. Today, India has more than 445.6 million internet
users in 2017 (IMAI report, 2018) which accounts for 44 percent of the country's
population. However, according to a recent study by Internet Mobile Association of India
(IMAI), the market is expected to reach 829 million within a few years, making India the
second largest customer base after China. The customer behaviour is changing
dramatically. People are not only using the Web to book air tickets and movie tickets but
also do not hesitate in placing orders for mobiles, laptops and other consumer electronics
and home appliances.
Factors that have contributed to its growth
Faster internet, Time saver, cheaper rates and discounts, Cash on Delivery (COD), wider
options, home delivery and return policies, increased mobile applications are factors have
played a major role in spreading online shopping within the country (Goyal, 2015).
Indian consumer changing attitudes toward online shopping
Online shopping are mainly preferred by 21 to 30 age group mainly. It clearly shows that
youngsters are more aware of new genre purchasing options and are interested in e-
shopping (Mathur & Sharma, 2014) Customer of the online shopping is agree with the
proposition and feel that time convenience, Price comparison, Information accessibility,
infinite choice of products and services, easy to access customer review, no shopping
crowds, better prices, is a most important ingredients which motivates them to buy online
(Kumari, Singh, Mishra, 2016). Special cashback policies offered by online shopping
websites is a key driven of online shopping in India (Chilka & Chauhan, 2018).
Conclusion
The retail sector has experienced a remarkable change over a period of last few decades.
The journey of consumer from kirana store shopping to e-portal experience has been
enriching. The technology has added additional flavor to this experience with a strategic
orientation. After considering all the aspects which has been discussed earlier it has been
found that the e-commerce in India is still at its early stage and it has got huge opportunities
in the upcoming future. With the help of the internet the companies like Flipkart,
amazon.in, e-bay are giving information and selling their products to the ultimate
consumers. Because of the new advent of gateway payment i.e. online payment i.e. through
debit and credit card it has become really an easy way to buy product.
Bibliography
Chilka, A., & Chauhan, S. (2018). Study on Recent Trends in Online Shopping in India.
International Journal of Scientific & Engineering Research, 9(2), 30-33.
Goyal, A. (2015). Rising Trends of Online Shopping In India. Biz and Bytes, 6(2), 125-131.
Kumar, R. (2016). The Future of Online Shopping in India. International Journal of
Advanced Research, 4(5), 1528-1544.
Kumari, N., Singh, B., & Mishra M. (2016). Consumer Behaviour in Online Market: Indian
Context. International Journal of Development Research, 6(11), 10401-10407.
Mathur, K., & Sharma, A. (2014). A Study of Online Shopping Habits of Consumers in
India. International Journal on Customer Relations, 2 (1), 23-28.
Sadekar, P., & Pereira, N. (2018). Consumer Attitude towards Online Shopping – A Case
Study. International Journal of Advanced Scientific Research and Management,
3(10), 44-51.
Web References
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2019
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