Digital Channel Has Emerged As A Strong Component Of Retail Sales
Having built 11 distinct businesses from scratch, in the services sector, he has a solid grip on launching businesses, growing them and creating shareholder value. He has extensive global exposure and has participated in projects and workshops in over 35 countries across 5 continents.
Online-sales is not a new concept in India. In the past two decades, various national and international e-commerce companies have established multi-billion-dollar networks across the country. These companies have captured the market for almost every product in the country, ranging from FMCG to customer durables. The ease of shopping from the luxury of home, reliability and the variety of payment options have made online shopping a preferred mode of shopping for millions of Indians. Online shopping companies have spread their roots not only in the larger cities but also to the smaller towns and remotest villages of the country. Encouraged by the success of these multimillion business titans selling almost all the products, even individual corporates are rapidly including online sales as a part of their total retail business. The digital mode of sales has various advantages for both the companies and the customers. More and more companies are gradually including the digital mode as an integral part of their sales infrastructure.
Advantages Of The Digital Channel
The online trade has several advantages over the traditional retail. The digital channel gives companies the desired reach to the remotest parts of the country and the world even without having any physical presence. This helps them expand their horizon and increase sales without excessive investments. For customers, it brings the comfort of shopping from home. The customers can browse through a wide range of products or services within a short span of time. They can even shop on the go without worrying about the time of the day. Since companies save on the physical infrastructure, they are often able to provide discounts on the e-sales. One of the most significant advantage for the customers is the freedom to take their own time to make their purchase decisions. The availability of various payment modes like credit-debit cards, net-banking, e-wallets and cash-on-delivery make online purchase an attractive avenue for the customers. Online retail also neutralises the risk of counterfeit products being sold by the retailers. The customers can also provide immediate reviews and feedback on the e-commerce websites.
At the onset of Covid-19, when most of the customers were scared to step out of homes and visit crowded market places, the digital medium proved to be a boon for both the customers and the companies. In some instances, the digital channel even proved to be the difference between survival and failure of the business.
Complementary Or Competition
It is often a matter of debate whether the digital channel is complementary to the physical retail or does it pose a threat to it. Some experts feared that going online could cannibalise traditional retail. Another point of view is that digital channel supports the retail sales by expanding the organisation's reach to places where physical retail infrastructure is non-existent. Even at the places with shops and showrooms, the digital mode makes shopping possible for people leading fast paced life or sceptical about visiting crowded market places.
Despite the exponential rise of online retail, there is still a large section of the customer base which still believes in physical retail. This gives them the confidence of actually seeing, touching or trying the product before making the purchase decision. The ever-growing number of retail shops and showrooms proves this fact. Moreover digital platforms enable even stand-alone outlets to ride on this revolution and reach out to consumers in the catchment without having to invest in expensive websites or delivery infrastructure.
The most important point of view is that it really doesn't matter. Brands are concerned with sales as long as they come, whether retail or online.
Future Of The Digital Channel
Shopping on digital platforms is here to stay. With every passing year, more and more corporates, despite having an existing sales network, are placing their businesses online. The large e-commerce websites like Flipkart, Amazon, Snapdeal, etc have services for retailers to sell their products through online portals. Even for the companies determined to maintain individuality, the advent of cheap web-hosting sites and easy to use website building tools like Word-press and pre-fabricated ecommerce sites, has made it all possible. Majority of food joints and QSRs have tied up with food delivery apps for faster and safer delivery.
Nielsen Connected Commerce Report in 2018 reported that 98 percent Indians with internet access have made an online purchase at least once. Another report suggests that the share of online sales in total sales worldwide was 14.1 percent in 2019 and is expected to rise to 22 percent in 2022. It would be noteworthy that these numbers and predictions were made before Covid-19 burst onto the scene. In 2020, the growth numbers might already have surpassed the 2022 predictions.
Epilogue
Digital channel has emerged as a strong supplement to traditional retail. In a world shaken by the pandemic, it helped businesses and economies stay afloat. With increasing penetration of high-speed internet and smartphones, online sales are bound to grow exponentially in the years to come. The retailers without online presence are facing stiff competition from those online. The share of digital sales is increasing day by day and corporates are investing heavily on making the online shopping experience easier, pleasurable and rewarding for customers.
Online-sales is not a new concept in India. In the past two decades, various national and international e-commerce companies have established multi-billion-dollar networks across the country. These companies have captured the market for almost every product in the country, ranging from FMCG to customer durables. The ease of shopping from the luxury of home, reliability and the variety of payment options have made online shopping a preferred mode of shopping for millions of Indians. Online shopping companies have spread their roots not only in the larger cities but also to the smaller towns and remotest villages of the country. Encouraged by the success of these multimillion business titans selling almost all the products, even individual corporates are rapidly including online sales as a part of their total retail business. The digital mode of sales has various advantages for both the companies and the customers. More and more companies are gradually including the digital mode as an integral part of their sales infrastructure.
Advantages Of The Digital Channel
The online trade has several advantages over the traditional retail. The digital channel gives companies the desired reach to the remotest parts of the country and the world even without having any physical presence. This helps them expand their horizon and increase sales without excessive investments. For customers, it brings the comfort of shopping from home. The customers can browse through a wide range of products or services within a short span of time. They can even shop on the go without worrying about the time of the day. Since companies save on the physical infrastructure, they are often able to provide discounts on the e-sales. One of the most significant advantage for the customers is the freedom to take their own time to make their purchase decisions. The availability of various payment modes like credit-debit cards, net-banking, e-wallets and cash-on-delivery make online purchase an attractive avenue for the customers. Online retail also neutralises the risk of counterfeit products being sold by the retailers. The customers can also provide immediate reviews and feedback on the e-commerce websites.
In a world shaken by the pandemic, it helped businesses and economies stay afloat. With increasing penetration of high-speed internet
At the onset of Covid-19, when most of the customers were scared to step out of homes and visit crowded market places, the digital medium proved to be a boon for both the customers and the companies. In some instances, the digital channel even proved to be the difference between survival and failure of the business.
Complementary Or Competition
It is often a matter of debate whether the digital channel is complementary to the physical retail or does it pose a threat to it. Some experts feared that going online could cannibalise traditional retail. Another point of view is that digital channel supports the retail sales by expanding the organisation's reach to places where physical retail infrastructure is non-existent. Even at the places with shops and showrooms, the digital mode makes shopping possible for people leading fast paced life or sceptical about visiting crowded market places.
Despite the exponential rise of online retail, there is still a large section of the customer base which still believes in physical retail. This gives them the confidence of actually seeing, touching or trying the product before making the purchase decision. The ever-growing number of retail shops and showrooms proves this fact. Moreover digital platforms enable even stand-alone outlets to ride on this revolution and reach out to consumers in the catchment without having to invest in expensive websites or delivery infrastructure.
The most important point of view is that it really doesn't matter. Brands are concerned with sales as long as they come, whether retail or online.
Future Of The Digital Channel
Shopping on digital platforms is here to stay. With every passing year, more and more corporates, despite having an existing sales network, are placing their businesses online. The large e-commerce websites like Flipkart, Amazon, Snapdeal, etc have services for retailers to sell their products through online portals. Even for the companies determined to maintain individuality, the advent of cheap web-hosting sites and easy to use website building tools like Word-press and pre-fabricated ecommerce sites, has made it all possible. Majority of food joints and QSRs have tied up with food delivery apps for faster and safer delivery.
Nielsen Connected Commerce Report in 2018 reported that 98 percent Indians with internet access have made an online purchase at least once. Another report suggests that the share of online sales in total sales worldwide was 14.1 percent in 2019 and is expected to rise to 22 percent in 2022. It would be noteworthy that these numbers and predictions were made before Covid-19 burst onto the scene. In 2020, the growth numbers might already have surpassed the 2022 predictions.
Epilogue
Digital channel has emerged as a strong supplement to traditional retail. In a world shaken by the pandemic, it helped businesses and economies stay afloat. With increasing penetration of high-speed internet and smartphones, online sales are bound to grow exponentially in the years to come. The retailers without online presence are facing stiff competition from those online. The share of digital sales is increasing day by day and corporates are investing heavily on making the online shopping experience easier, pleasurable and rewarding for customers.
