Development of eCommerce in India

PREAMBLE

Mrs. Garde

By Dr. Vasudha Garde

Prin. D. G. Karve Chair in Economics, Commerce and Banking

BMCC (Autonomous), Pune

Rapid economic growth in India, post-1991, has brought about a fundamental change in India’s consumers, making India the second-largest consumer market and world’s fifth largest global destination in retail space. Government has taken initiatives to improve retail industry in India and has permitted 100 percent Foreign Direct Investment (FDI) in online retail of goods and services. Consequently, e-commerce expanded steadily in India, and has created a revolution in retail industry.  Digital transformation of retail business has seen various channels creating a shopping platform, providing customized shopping experience using data analytic tools and adopting innovative payment methods. IKEA: The Virtual Experience of Designing Your Home’s Interior and Amazon: New Shopping Experience with Cashier less Stores are examples of retailing through digital transformation. Online retail has become a popular way for consumers to purchase goods and services due to its convenience, accessibility, and cost-effectiveness. The global online retail market is projected to continue growing in the coming years, and it is essential for retailers to understand the factors that influence consumer behaviour and preferences to remain competitive in the market. In the post-liberalization era, Indian retail market has shown steady growth and has created vast employment opportunities.

Retail sector, is a service sector, comprising of individuals and companies engaged in distribution /selling of finished products (goods and / or services) to end user consumers, through multiple channels of distribution, to earn profit. Retailers satisfy demand identified through a supply chain and are the final link between manufacturers and consumers. Multi-channel retailers may have both a website and a physical store which are independent of each other, however, through the newer, omni-channel approach it is possible to join customer touch points to provide a consistent customer experience. Retail businesses conducted online and/or offline include general retailers (individuals/ family managed), departmental stores, supermarkets, grocery stores, warehouse retailers, discount retailer, extreme discount stores, off-price / used goods store, drug stores, specialty retailers, convenience retailer and service-related businesses like beauty salons, e-commerce stores, mobile retailer, internet retailer and rental places.  Retail outlets are generally differentiated based on products they offer and way it is offered.

In a market economy, consumer is sovereign and wields tremendous power of choice while purchasing goods/services. It is observed that savvy shoppers spend a lot of time researching their purchases and like to consider the entire customer experience while purchasing products. Further, to attract customers, businesses in a monopolistically competitive retailing industry- witnessing huge competition and product differentiation-need to undertake persuasive marketing, with differentiated offers and make products available at lowest rates. Besides retailers also need to address challenges like consumers preferring multi-channel buying experiences, customers switching between retailers and online/in-store channels creating a unique retailing problem, consumers expecting a seamless online / offline experience, attracting customer loyalty, requiring expensive marketing infrastructure. Over time, it is customer behaviour and expectations that will ultimately drive brands to invest in technology to embrace this integrated omni-channel retailing medium.

A lot of research has been undertaken to investigate the current trends and understand the factors that influence consumer behaviour and preferences in online retail. As the importance of the online channel becomes increasingly greater for organizations, there is greater need for determining the consumers’ key drivers in choosing this as an alternative channel for shopping. It is important for the seller to explore the factors that influence consumer decision-making in online retail, analyse the impact of website design on consumer behaviour, investigate the role of social media in shaping consumer behaviour, examine the relationship between price and consumer behaviour and for online retailers to improve their service delivery and meet customer needs and preferences.

Covid-19 has impacted retail sector due to lowered consumer sentiments. Liquidity in retail businesses which is driven by seasonal inflow of cash has therefore been hampered due to the crisis and currently retailers are aiming at just staying afloat financially. Discretionary categories products, like hypermarkets and consumer durables / IT product stores are hit hard, mass merchandise stores are slightly hit; however, small grocery (kirana) shops would most likely continue as before!  However, survival plan involving suitable policy measures, exemptions, incentives, and support from government and incorporating safety guidelines for consumer is essential for recovery of retail business.  Although, consumers are critical to the value chain for  initial revival of the retail sector, however, revival strategy for a retail business will need varied approach based on the dynamics of, as also, impact on, different segments (retail segment; supply chain and inventory; fund flow and working capital and shopper behavior) of the business.

The recent pandemic has become revolutionary for retail sector with emergence of combination of offline and online retailing business. Shopping experience would become an important aspect of decision-making by consumers while making purchases, thus making retailers, conscious of providing very good service so as to fulfil experiential shopping expectations of shoppers. Growth of digital technology has resulted in exponential growth of e-retail business and will further enhance user experience.

Retail is and will always be a competitive segment and is affected by economic and social trends, technological factors, demographic changes, changing consumer preferences, environmental issues related to packaging, waste reduction, renewable energy and several other legal concerns. While addressing these issues and other challenges, retailers can however, follow the omni-channel approach, which is an integrated and holistic approach, to provide smooth and seamless communication to customers through all channels; create new opportunities to build brand loyalty among their customers; use suitable know-how and tools and innovative ways to keep shoppers - both existing and potential - coming back for more, by providing a seamless shopping experience to customers!

The appreciation for the title will remain incomplete if we won’t value the economy inhabitant in the souls of such teachers such as Dr. Suneeta Harishchandra Nirmale madam! 

Transformation

The Transformation of computer technology AI to Gen AI

Dr. Nirmale

By Dr. Suneeta Harishandra Nirmale

Head, Department of English,

Head Department of Languages, BMCC, Pune.

EDITORIAL

Artificial intelligence, in its broadest sense, is an intelligence exhibited by machines, particularly computer systems. It is the current field of research in computer science. It develops and studies methods and softwares those enable machines to perceive their environment. It also has the capacity to use learning and intelligence to take actions that maximize their chances of achieving defined goals. Such machines may be called AIs.

Nowadays everyone relies on technology. Humans are using electronic gadgets extensively. As the use of smartphones, laptops, tablets and cars etc. are unavoidable in human practices. All these gadgets have proven their power and intelligence that evolved through AI. One of the functions or best practice people are doing today is computing, it is a miracle of modern technology. The meritorious thing is the use of AI in all aspects of human life. This function required power; strength which is acquired through the devices on individual level of experiences. AI has been known for the last few years as an explosion of information. Not only it is working as image processing computing measure, but it also has advancement related to the Gen AI. This is the machine (hardware and software) used now days for text processing, voice processing and multi model use cases, as said by Rajesh Narayanan, vice president of engineering at Qualcomm, quoted by Swati Bharadwaj in her article on "On-device AI is cheaper and faster than