Research study on Failure of Online Retailing Marketing

Research study on Failure of Online Retailing Marketing

This Research study Failure Online Retailing Marketing discussed about Research and objective, Problem statement and research rationale.

Online Retailing Marketing - Introduction 

In the current competitive business scenario technology is changing the future direction of businesses and their reach. With advancement in the internet technology in lieu of more and more accessibility for the internet among common people shopping habits of the consumers have changed quiet dramatically and shopping behavior has seen immense changes which are of great importance for the retail marketers in India (Huang, 2009). As per the online retail study conducted by Technopak in 2012 regarding estimation of total size of online retail industry in India it has been estimated that total size for the retail industry would reach to $76 billion by year 2021.

E-tailing counts for only 6% of the entire e-commerce business in India and total size of the online retailing in India in year 2012 is just $0.6 billion which is quite low considering the size and growth of online retail markets around the globe (Kuanchin et al, 2005). Despite of very good growth in the number of internet users in India in recent time not a very healthy trend for online shopping has been witnessed in Indian retail segment. As per the data from IAMAI total internet user count would reach to approx 200 million in year 2010 for India while not only 5% of this population is making regular online shopping.

Most of the internet using population in India comprises of the young brigade which includes more than 25% people from the age range of 18-25 years while 46% of the people are into the age range of 26-35 years. Looking at the demographics of the people using internet in India possibility for online retail market expansion are quite healthy and marketers should focus the entire marketing plan for the retail marketing around the youth consumers in India which have access to internet in large number (Kumar, 2009).

In the current age entire market for the retail consumers is dominated by the brick and mortar model in India where in traditional brick and mortar model of retail sector is responsible for 93% of the total share and corporatized mortar & brick segment for the retail is responsible for 6.9% of the total market (Elliot and Fowell, 2010). Online retail segment in India is quite undeveloped and does not have dominance at all with a minimal share of 0.1% of the entire retail market in India.

With the expected changes in the online retail market in India share for the online retail markets would grow from 0.1% to 5.3% by the end of 2021 (Mehta, 2005). But online retail markets would not be able to replace the traditional brick & mortar model but they would be just a supportive channel to the corporatized brick & mortar model and their share would be coming through the decline in the total market share from the corporatized brick & mortar model in India (Chen and Macredie, 2005). Still the growth of online retail markets in India is not up to the mark as compared against the other developed and developing markets like Russia and UK where in online retail sector has very high penetration in comparison to Indian markets.

Research study Failure Online Retailing Marketing

Some of the key motivations for the online marketers and consumers to adopt online shopping habits include increasing number of internet users in India and professional development of infrastructure for accessing information through internet (Jain & Kumar, 1997). Major hurdles which are faced by the consumers and marketers into online retail segment include threat of security for online transactions, lack of technology and resistance for the traditional consumer behavior.

1.2 Research and objective

The research for online retail market penetration in India would be having the below objectives:

  • To explore reasons which restrict consumers in India to adopt online shopping habits
  • To explore ways out through which experience for online shopping consumers can be enhanced to increase the online retailing penetration
  • To analyze the future trends for the online retail market in Indian retail segment

The present research context explores the failure of the online retail market in India as e-tailing markets in India have not grown up to the level which they were expected to attain in lieu of high number of internet users in India. Present research would be focused on exploring the reasons which restricts the online shopping habits for the Indian consumers. Further research would dwell into the consumer behavior towards the online retailing customers in India and would recommend the ways out through which experience for the Indian retail consumer can be enhanced in the e-tailing (King and Liou, 2004). Present research would take help of the both primary as well as secondary research methods by collecting the data pertaining to the online retailing.

Secondary data would be collected through the literature review and other sources pertaining to the online retail market in India. While primary data collection for the research would be done through survey conducted and interviews with the consumers so as to know the hurdles which consumes face while adopting the online shopping habits. Research would take help of the statistical analysis in order to analyze the data collected through primary research while secondary data analysis would be done through content analysis method.

1.3 Problem statement and research rationale

Problems statement for the current research framework constitute the issues which consumers are facing in order to adopt the online shopping habits in the retail markets. Further marketers in retail segment are adopting various new ideas in order to attract the consumers towards online retail segment but due to the hurdles faced by consumers marketers are not able to generate revenue through the consumer segment. Overall market share for the online retail segment in India is very minimal which needs to be enhanced through adoption of innovative marketing strategy in the online retail segment.

Rationale for the present research work is to understand the consumer behavior in the retail segment so as to explore reason for not adopting online retail shopping habits. Further marketers would be motivated in order to adopt the innovative marketing strategy so as to increase the penetration of the online retail markets so that overall penetration for online markets can be increased from 0.1% to the significant amount.

1.4 Scope and definition

Scope for the current research project would be extended from the analysis of the online retail markets in India retail segment to the probable reasons which are hampering the growth of online retail segment. Framework for the improvement of the online retail segment in Indian retail segment would be explored and recommendations would be forwarded based on the analysis & data collection pertaining to the online retail marketing trends in the Indian retail segment. Further future trends for the online retail markets in India would be analyzed for further analyzing trends and changes which would take place in the overall retail market.

Current research work can be defined as the cause and impact analysis for the failure of online retail marketing model among the Indian consumers as compared with the other markets around the world where online retail market penetration is quite high. The current research framework would provide the tactics in order to enhance the online retail experience for the Indian retail segment.

1.5 Target audience

Target audience for the present research work would include the scholars in the field of online marketing, Indian consumers for online retail and marketers in the online retail segment. For the scholars in the Indian retail segment the major usage for the current research work would be using the work as literature review and as reference for their further usage. For the Indian consumers this research would reveal the facts about the online retail segment and would highlight their reasons to avoid online shopping habits. For online marketers the current research would provide the key recommendations after studying the consumer behavior towards the online shopping habits. These recommendations would help them to implement the destination marketing tactics and improve the overall customer experience.

1.6 Work plan

The entire research work for the current project would be undertaken in the four main stages which can be given as below:

Stage-I: In the first stage literature review would be carried out in order to gather secondary data pertaining to the online retail marketing in India and key consumer behavior trends for the online shopping.

Stage-II: Second stage for the current research project would include the research methodology section which would provide outline on the methodology to conduct the present research by defining proper research objective and methods for analysis.

Stage-III: Third stage for the research would include collection of data through various resources and analyzing the data through statistical and non statistical tools.

Stage-IV: Final stage for the research would forward the probable recommendations for the online marketers and organizations working towards online retail segment so as to improve on overall consumer segment.