Changing Dimension of Marketing

With e-retailers giving into online marketing; offline retailers still prefer going the conventional way in their marketing strategies.
Changing Dimension of Marketing

The e-commerce industry has made significant inroads in the country and a recent study by RCI-Octane India e-Marketing Report 2013 highlighted that nearly a quarter of the retailers have gone online, and a significant number of existing traditional brick and mortar players are also looking to build their presence here.

The retailers that participated in this industry report include Aditya Birla Retail, Reliance Fresh, Future Group, Shoppers Stop and ITC, and it highlighted various trends relating to consumer behaviour online and the growth prospects.

‘On the Move’ Consumer

No doubt traditional retail dominates the sector, but a growing number of students and young executives are eager to shop online, coupled with the growing importance of the social media. And, retailers are utilising various strategies to grab the attention of these browsers and their promotional budgets for online activities have also shown a significant jump over the past few years.

However, this report highlighted that customer retention online has been rather difficult vis-a-vis traditional retail channels. It also pointed out that while e-mail marketing is the preferred tool to reach potential online consumers, but conversion ratios are still are very low.  In contrast, offline retailers have a range of in-store promotional activities and offers which are still viewed as more successful.

Slow and steady rise

Currently, there are only a dozen odd e-commerce players that have revenues in excess of Rs 100 crore in the last fisal and even fewer, with sales of Rs 500 crore or more.   And, while e-retail currently constitutes less than about one per cent of the nearly $ 450 billion annual retail turnover, but with the country’s internet base expanding quickly, the future for this sector appears bright.

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