A study of growing trend of online shopping in India

“A study of growing trend of online shopping in India

Dr. Sangita Bharuka * Dr. Nidhi Babel*

Abstract

 

Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. The English entrepreneur Michael Aldrich invented online shopping in 1979.

The major reasons for conducting this study are to find out the factors affecting the women consumers to buy online, to find out which type of goods women generally purchase online, and to find out which type of shopping is more satisfactory to them. The research work is conducted by taking three hypotheses: Traditional shopping is more satisfactory to women customers, Women customers are not much aware about online shopping and the future of online shopping is bright in India.

The research work has two limitations: Primary data is collected with special reference to Indore city and the research is completely focused on women customers.

The primary data was collected by a structured questionnaire with a sample size of 50, which resulted in the finding that only 60% of women shop online. 70% of them started purchasing online from last one year. Regular online women shoppers in India are lesser, mostly like to shop online occasionally. Primarily, Indian women customers like to shop for online clothing & cosmetics and after that household items. The products they are least they like to purchase is footwear. 60% respondents are still more satisfied with traditional shopping, so more efforts should be made in to bring satisfaction to online buyers. Online shopping will have a great future in India, 90% respondents would like to shop online in future.

The craze of E-shopping is increased to a great extent in Indian women. 43% of working women in India spent about 5 million dollars on e-shopping up to last year. Probably in the next 3 years the figures will be approximately 5 times i.e. it will cross 3 billion dollars. According to the data of the Indian E-Commerce industry, up to the last financial year, online shopping in India was worth approximately 2 billion dollars. From the total online shopping in India (2 billion dollars), the Indian women purchased worth 0.51 billion dollars i.e. 26%.

Though online shopping seems to have a good future in India but still 40% of the total respondents don’t like to shop online. Thus there is a need to take steps for making them aware about online shopping, to educate them about online shopping and to bolster their confidence.

The first hypothesis proved true as 60% of respondents are still more satisfied with traditional shopping. The second hypothesis partly proved true because the research work showed that many Indian women are enthusiastically shop online but many are still not interested. The third hypothesis also proved true as 90% of respondents like to shop online in future, which shows the brightness of future of online shopping in India.

Introduction

Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Alternative names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an online retailer’s mobile optimized online site or app.

An online shop evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. In the case where a business buys from another business, the process is called business-to-business (B2B) online shopping. Retail success is no longer all about physical stores. This is evident because of the increase in retailers now offering online store interfaces for consumers. With the growth of online shopping, comes a wealth

of new market footprint coverage opportunities for stores that can appropriately cater to offshore market demands and service requirements.

History

English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. He believed that videotex, the modified domestic TV technology with a simple menu-driven human–computer interface, was a ‘new, universally applicable, participative communication medium — the first since the invention of the telephone.’ This enabled ‘closed’ corporate information systems to be opened to ‘outside’ correspondents not just for transaction processing but also for e-messaging and information retrieval and dissemination, later known as e-business. His definition of the new mass communications medium as ‘participative’ [interactive, many-to-many] was fundamentally different from the traditional definitions of mass communication and mass media and a precursor to the social networking on the Internet 25 years later.

In March 1980 he went on to launch Redifon’s Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected on-line to the corporate systems and allow business transactions to be completed electronically in real-time.

During the 1980s he designed, manufactured, sold, installed, maintained and supported many online shopping systems, using videotext technology. These systems which also provided voice response and handprint processing pre-date the Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were installed mainly in the UK by large corporations.

The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut, Netscape’s SSL v2 encryption standard for secure data transfer, and Internship’s first online shopping system. Immediately after, Amazon.com launched its online shopping site in 1995 and eBay was also introduced in 1995.

Reasons for selecting the Topic

 

 

  • To study the factors affecting the women consumers to buy online.

 

  • To find out which type of goods women generally purchase online.

 

  • To find out which type of shopping is more satisfactory to them.

 

Objectives

To study women customer online purchasing power.

To find out the ratio of women online purchasing with total online purchase in India. To find out which type of shopping is more satisfactory to them.

To forecast the future of online shopping in India. (With special reference to women customer)

 

Hypothesis

Traditional shopping is more satisfactory to women customers. Women customers are not much aware about online shopping. Future of online shopping is bright in India.

Scope of Research

This study helps to know the online buying behavior of women customer.

This study helps to know which type of goods women customers generally purchase online. To study the factors affecting the women consumers to buy online.

This study helps to know the interest of women to shop online in future.

Secondary Data

Out of the total 150 million Internet users in the country, around 60 million women in India are now online and use the Internet to manage their day-to-day life, according to a new report by Google India.

The craze of E-shopping is increased to a great extent in Indian women. 43% of working women in India spent about 5 million dollars on e-shopping up to last year. Probably in next 3 years the figures will be approximately 5 times i.e. it will cross 3 billion dollars. According to data of Indian E-Commerce industry, up to last financial year online shopping in India was approximately 2 billion dollars. From the total online shopping in India (2 billion dollars), the Indian women purchased worth 51.1 crore dollars i.e. 26%.

Key Findings

From the information obtained from sample size it is very clear that only 60% women customers in India shop online, which means that still many women customers are not aware or do not know how to shop online.

Women who are shopping online, 70% of them started purchasing online from last one year. This shows the increasing attraction & awareness of online shopping in them and represents the possibilities of bright future of online shopping in India.

Regular online women shoppers in India are lesser.

Mostly Indian women customer like to shop online clothing & cosmetics and after that Household items and least they like to purchase is foot wears.

60% respondents are still more satisfied with traditional shopping, so more efforts should be made in this segment.

Online shopping will have a great future in India, 90% respondents like to shop online in future. also it is seen that number of women entrepreneur  are engaging in selling their fashion products is increase. thanks to online store builder by which you can create online store easily without having knowledge of coding.

The craze of online shopping is increasing day by day (especially with reference to women customers), 26% of total online shopping in India is done by women customers.

 

Suggestions

Though online shopping seems to have a good future in India but still 40% of total respondents don’t

 

like to shop online thus there is a need to take steps for making them aware about online
shopping, to educate them about online shopping & to fetch their confidence.

 

The percentage of regular online shoppers are less than as compared to occasional buyers, so steps should be taken by online companies to convert the occasional buyers in to regular shoppers.

Area of advertisements should be broadening to add more & more customers.

It’s the need of time that customers should change their attitude and accepts the   benefits of

online shopping.

Companies who are offering products or services online should be aware of quality of their product or services so that their goodwill would be maintained.

Government should also take some measures to promote online shopping.

 

Testing of Hypotheses

The first hypothesis proved true as 60% of respondents are still more satisfied with traditional shopping.

The second hypothesis partly proved true because the research work showed that many Indian women are enthusiastically shop online but many are still not interested.

The third hypotheses also proved true as 90% of respondents like to shop online in future, which shows the brightness of future of online shopping in India.

 

Research by: Dr. Sangita Bharuka * Dr. Nidhi Babel**