Are the E Commerce companies hurting the offline stores business?

Are the E Commerce companies hurting the offline stores business?


Flipkart through its Big Billion Day Sale has not only drawn customer’s attraction and set new milestone in online shopping. In protest many offline traders association has criticized such sales and requested commerce ministry to regulate the E commerce companies. But, we need to see that this threat is real or it is just propaganda against E commerce companies.

Yes:

-A supplier has to balance the demands between online and offline trade. If such online sales become a common phenomenon then the equilibrium of supply to different retail chains get distorted.

-The limits of discounts offered by online companies cannot be matched by offline traders. So, it is against the healthy competition spirit of the market.

-Also, cases of defective product delivery by E commerce companies have been on rise. This practice not only shatters customer confidence but also impacts brand value of that product’s company.

-Offline traders have to pay sales tax, VAT etc. but there is no uniform tax policy for these companies. This results in revenue loss to government as well.

No:

-Most E Commerce companies are online market places where any offline retailer can sell their products to a larger customer base. This will increase sales of offline retailers.

-Customers find online shopping more comfortable, plus they have more options to choose from. So, naturally they will go for E commerce companies for shopping.

-India is moving rapidly towards digitalization. This has created vast opportunity for the E commerce companies. In fact offline retail stores should take it as an opportunity to expand their customer base.

-Even offline stores use discounts option to increase their sales figure. Though the demand for regulating discounts limit is legitimate but it should be applicable for both offline and online companies.

Conclusion:

E commerce is rapidly expanding in Indian market. Government can regulate it, but it cannot put restrictions on it as demanded by many offline traders. Also, the future belongs to E commerce as internet penetration is increasing in India. Offline stores have to come to online platform in long run to save themselves from extinction. The most important aspect in this scenario is that customers have an upper hand in choosing their shopping option and they have emerged as the true winner.
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    Discussion

  • RE: Are the E Commerce companies hurting the offline stores business? -harsiya banu (12/09/16)
  • Are the E Commerce companies hurting the offline stores business?


    Flipkart through its Big Billion Day Sale has not only drawn customer’s attraction and set new milestone in online shopping. In protest many offline traders association has criticized such sales and requested commerce ministry to regulate the E commerce companies. But, we need to see that this threat is real or it is just propaganda against E commerce companies.

    Yes:

    -A supplier has to balance the demands between online and offline trade. If such online sales become a common phenomenon then the equilibrium of supply to different retail chains get distorted.

    -The limits of discounts offered by online companies cannot be matched by offline traders. So, it is against the healthy competition spirit of the market.

    -Also, cases of defective product delivery by E commerce companies have been on rise. This practice not only shatters customer confidence but also impacts brand value of that product’s company.

    -Offline traders have to pay sales tax, VAT etc. but there is no uniform tax policy for these companies. This results in revenue loss to government as well.

    No:

    -Most E Commerce companies are online market places where any offline retailer can sell their products to a larger customer base. This will increase sales of offline retailers.

    -Customers find online shopping more comfortable, plus they have more options to choose from. So, naturally they will go for E commerce companies for shopping.

    -India is moving rapidly towards digitalization. This has created vast opportunity for the E commerce companies. In fact offline retail stores should take it as an opportunity to expand their customer base.

    -Even offline stores use discounts option to increase their sales figure. Though the demand for regulating discounts limit is legitimate but it should be applicable for both offline and online companies.

    Conclusion:

    E commerce is rapidly expanding in Indian market. Government can regulate it, but it cannot put restrictions on it as demanded by many offline traders. Also, the future belongs to E commerce as internet penetration is increasing in India. Offline stores have to come to online platform in long run to save themselves from extinction. The most important aspect in this scenario is that customers have an upper hand in choosing their shopping option and they have emerged as the true winner.
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  • RE: Are the E Commerce companies hurting the offline stores business? -Debakar Patro (12/07/14)
  • In my opinion the effect of E-commerce business on Offline store will be there but the % will be less.. Because these effect E-Commerce is being used by the city people only. In India around 30% people are living in cities and rest all living in tier 2 and tier 3 cities and small and big towns and villages..So in this case out of 30% of city people 10 to 12% of people are being scheduled busy life..for those king of people this helps a lot..The rest of the people like touch and feel the product and want spend their weekend in Shopping malls...
    The government should take necessary steps to regulate the pricing...In future when entire India will be full fledged digitized then this effect will be der..
  • RE: Are the E Commerce companies hurting the offline stores business? -lakshay (12/01/14)
  • nop, e commerce wont effect offline stores as going out to shop with friends n family has its own charm. offline stores gives a wide variety of product, we can try apparels and in case we want to exchange anything it becomes easy, where as returning or exchanging products online is a cumbersome process.. Online shopping is playing a major role but offline shopping has its own charm which is irreplacable.
  • RE: Are the E Commerce companies hurting the offline stores business? -ankit (11/30/14)
  • E-commerce is definitely a great advantage to present generation, as everyone can make purchases from home. they could have items suiting their taste and return it if not liked.

    But this will never hurt offline business as no one will order their daily grocery items from online stores, which could have a possibility of shipping delay.

  • RE: Are the E Commerce companies hurting the offline stores business? -Mukul (11/28/14)
  • Yes and No. It depends upon which industry and which section of businessmen we are talking about. If we are talking about clothing or gadget industries, then yes it is hurting their business as it has become so easy for people to choose from a high range of products and get them at a very low cost as compared to offline showrooms. But if we talk about grocery stores or wedding card industries, it is not having much effect on offline retail stores due to many reasons like even with better logistics, e-retail companies take 1-2 days to deliver products or there are some things which can not be brought by just looking at mere pictures like wedding cards.
  • RE: Are the E Commerce companies hurting the offline stores business? -Sharad (11/28/14)
  • Basically in india out of our 125crore people there are 75-80% people uses mobile phones and out which 50% uses mobiles having internet schemes. So online shopping is new trade in india and it should save the time for corporate world people but what about the people living in village??I think there is effect of e commerce in urban areas not in rural. Ovreall there is effect on offline store business but there should be an alternative for offline business like online market. In village still there is not so much effect on offline market but people are modernized due to internet and slowly they should know the uses of e commerce and will start shops online.
  • RE: Are the E Commerce companies hurting the offline stores business? -Tarun Kumar Bhardwaj (11/01/14)
  • No in my loint of view e commerce companies are not hurting offline market because offline market is wide spread in all over india in the towns, villages, and other rural areas where many poor people lives and internet facilities are still not available in those areas. people of india also like to have an enjoyment in the offline markets from old eras, today also there are many offline markets like animal fair in pushker which can't go online even after 50years in india, and in the end we all are indians, we have our own, ancient, most diversified and cultural civiliziation, so in india online market can never hurt offline markets and it is our traditional style.
  • RE: Are the E Commerce companies hurting the offline stores business? -lata (10/31/14)
  • I think e-commerce companies like amezon ,flipkart are not hurting offline stores. Because in india many pople prefer to go outside for shopping mostly girles… and 60% of the Indian women have a favorite hobey of shopping ….this e-commerce companies are for the person who could not get time for shopping. In our india it is like fun to go with relatives and do the shopping and I think this not going to affect offline stores.
  • RE: Are the E Commerce companies hurting the offline stores business? -shubham kumar sahu (10/16/14)
  • Online shopping is becoming more lucrative n satisfactory day by day. They are offering wide range of products and services under one click only, these online shopping business is responsible for not only hurting also for eating up the offline customers.
  • RE: Are the E Commerce companies hurting the offline stores business? -ankit (10/15/14)
  • e commerce is the new generation choice to handle all the services through online but it also effect the habit of working hard.
  • RE: Are the E Commerce companies hurting the offline stores business? -Deepa Kaushik (10/12/14)
  • The E-Commerce companies have spread their wings throughout India. They have found their way in and expected an exponential growth here. Though they have done well in their assessment, yet it is doubtful to call them a threat for the offline markets. The physical stores can never lose their charm in India where people love to spend time out for shopping.

    The E-Commerce companies have flourished well among those who are into the MNC culture, who could hardly find time out for their personal life. A person who lacks personal and social circle with his busy workaholic schedule can hardly find time for activities like shopping. The emergence of E-Commerce and online trading have proven to be a boon for such people. But, the ratio of population into the MNCs are still meager as compared to the total population of the country.

    Even when we categorise people as per their age, we can get a clear majority vote for offline stores from every group, though they might have thwir own reasons. For youth the local markets are a placr to hang out with friends, for middle age this is the place where they can analyse the quality of the products before buying, and for aged, their lack of internet knowledge leaves them with the only scope of offline trading.

    People might be rich, middle class or poor, the offline stores provide a satisfactory transaction with plenty time yo be spent with friends and loved ones. As of now, the E-Commerce companies haven't even approached the vicinity to threat the offline stores. And as far as India is concerned, we cannot expect any impact on the local markets and offline stores due to the online trading in the near future
  • RE: Are the E Commerce companies hurting the offline stores business? -christy a george (10/11/14)
  • India's huge demographic dividend with less that 10% of total population under internet coverage gives huge potential for ecommerce sites like flipkart amazon etc. Realizing the same these companies have invested heavily in india. Flipkart's Big billion day was one such initiative it reached the aimed target within 10 hours of sale. Many of the people are getting attracted towards online retail market. But the existing market for offline retail trade is very high that nearly all indians depend on offline market. So as of now online markets are not hurting the offline retailers.
    But they should devise new ways to ensure that they can exist as time progress through different ways. Also flipkarts experience suggests that government will be soon coming with restrictions on online markets to ensure a fair play for customers and offline players.

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