E-Retail: a new age platform for traditional retailers and resellers

Electronic Retailing (E-Retail) has seen a tremendous growth over the recent years due to accessibility of computers and internet by the masses. According to a research report by CRISIL, Indian E-commerce growth is expected to grow by 50–55 percent per year with revenues of Rs. 504 billion in 2015–16. Moreover, the changing dynamics of the consumer market from traditional shopping in retail outlets to retail websites has given ample opportunities for many companies to setup their own venture within a very short span of time. A true indication of positive growth of the economy, but not for offline or traditional retailers and resellers. The E-Retail market growth in India is estimated at Rs. 5,513 crore in Financial Year (FY13) with a robust Compound Annual Growth Rate (CAGR) of 30.5% (FY08-FY13). Thesize of the e-retail industry is poised to be 10 to 20 billion by 2017–2020 according to the Internet and Mobile Association of India research (IAMAI). In recent days of heavy online offers and discounts extended by major E-Retail companies, (Flipkart, Amazon, Snapdeal) the retailers and resellers are facing tough competition in the current Internet era. This paper is an attempt to find probable solutions and reasons, which would help the traditional retailers and resellers to join the Internet market where existing players provide a platform to transform and extend traditional business to a mass market presence.