E-Wave in retail marketing

Electronic Wave as A Sustainable Strategy on Retail Business- An Empirical Study Dr. K Nagendrababu1 Girisha M C2 Associate Professor, Department of Studies In Commerce, University of Mysore, Mysuru1 Research Scholar, DOS In Commerce, University of Mysore. Mysuru2 Abstract- The electronic wave spreading their contribution on every field of human activities, there is no exceptional cases in this global world. Every human expecting faster results in every events of life. Replacement of human contribution in different activities by Automation. But automation destroying traditional aspects of human life and giving birth to Webmasters, media brokers. This results gradual decline of retail shops in local market. The electronic strategies playing vital role in organized retail sectors, these strategies creating huge gap for unorganized retail shops, and struggling to stable in current market. This research article made an attempt to analyze the impact of electronic technology (e-wave) as a sustainable strategy for unorganized retail shops in Mysore city. Key Words: e–wave, strategies, unorganized retail shops, Automation, Introduction - Since the early 1990s Online retailing is growing at an astonishing rate, with online activities now accounting for around one quarter of the total business activities. Entrepreneurs who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online. However new startups need to think carefully and weigh all the advantages and disadvantages - backed by good market research. When India was eventually forced to open up its economy to the world Indian business people have been trying to tread the smooth balancing in protecting domestic economy from global competition The e commerce made easy flow of products and services to the end user but this made it removal of human activities in this process this leads to unemployment. The profit of physical stores drastically declined and leading to close of physical stores. Government must throw light on regulation for e-commerce business and bring it into customer friendly user. Once again we go to experience by becoming the victim of a version of British era colonialism. The electronic wave spreading their contribution on every field of human activities, there is no exceptional cases in this global world. Every humans expecting faster results in every events of life. Replacement of human contribution in different activities by Automation. But automation destroying traditional aspects of human life and giving birth to Webmasters, media brokers. This results gradual decline of retail shops in local market. The global retail business competition pulling back the local retailers and huge decline in footsteps to physical retail shops. Indian retail business experiencing declining stage. Majority of these group expecting sustainable developments by immediate regulations for online trade companies. If this continues for few years it’s difficult to find retail shops in retail market and huge young entrepreneurs become jobless. Retail Business in India Since the early 1990s the tremendous growth of organized retail in India, the retail sector was facing transition phase. This transition period affected on conventional retailers and consumers. Once electronic wave start covering every activities of business the retail business faced lot of challenges to sustain in market. E-retailing moving faster in Indian market. Now reports show 50-60% growth of e- retailing in India. Local market retailers experiencing number of challenges to sustain in this technological era. Some of the traditional or conventional retailers stepping back from the inclusion of online activities and struggling to survive in market. Some of conventional retailers have hope and trust on old loyal customers those who are far from village and interior geographical areas. India started its retail journey since ancient time. (sources- MarketingLesson.in) Literature review Burt, S. et all,. (2003) “E-commerce and the retail process” a review” in this article the researcher made conceptual study and found three important aspects. (a)Most retailers are now moving for ecommerce itself because it helps in cost reduction and operations to compete better. (b)Retailers are seeing the reactions of consumers for ecommerce. (c) If retailers are really trying to retain consumers they have to maintain much larger floor space. And researcher explained e-commerce mechanism is a process of innovation in retail business. Grandon et all,. (2004)“Electronic commerce adoption: an empirical study of small and medium US businesses” researcher investigated and explained that e commerce is beneficial for both sellers as well as buyers. Such that sellers may have large numbers of potential consumers and buyers can have large variety at single place. It is also studied that ecommerce not only support large companies but also SME’s (Small and Medium Enterprises). The data collected from top managers and SMEs by using electronic survey. The researcher hypothesized the casual link between perceived strategic value of E-commerce and adoption. Ganapathi, R. (2015). “A Study on Factors Affecting Online Shopping Behavior of Consumers in Chennai” researcher conducted a survey through random sampling method in Chennai city in the year 2014-15. Tjis study has been conducted to examine the socio- economic status of consumers of online shopping. This study found that majority of consumers belongs to Male gender and most of them belongs to the age group of 31 to 40 years. This exploratory factor analysis shows that convenience, features of websites, security and time savings are the major factors for online shopping. Jayakrishnan S Nair (2015) “E- retailing in India: Opportunities and challenges”. in this research article researcher explained major challenges and opportunities for Indian retail business. The major opportunities are (1) Increase in the number of internet users, (2) Smart phone revolution and mobile internet, (3) Rapid growth of net banking and use of debit and credit cards. These are the major opportunities for the retail business in India on the contrary the researcher focused on the challenges for online market by retail business those are – (1) Logistics, (2) Rapid urbanization (3) Poor internet speed, (4) customer trust and loyalty, (5) Cash on delivery and return of goods management, (6) Complex Tax regime. Objectives of study the research has been conducted with the following objectives: To Understand demographic profile of retail business in Mysore City To study the effect of online trade on Traditional retail business in Mysore City To study the major challenges for conventional retail business in Mysore City. Research Design- The present study is exploratory and descriptive in nature. The data has been collected from the retail shop Owners with the help of structured questionnaire. Interview technique has been used in this study. Sampling Design- For this study sampling has to be resorted to as obtaining data from the universe might not have been possible. Present study is based on simple random sampling technique to collect primary data from the retail shops in Mysore city. The data collected from mobile shops, garments and grocery shops (Departmental stores). In this study data collected from 87 respondents who are conventional retail shops in Mysore city. The secondary data is collected from various books, journals and articles. The data analyzed and presented in master table, charts with statistical tools like percentage. Analysis Table 1.1 Data from Retail shops Mobile 30 Garments 30 Departmental store 27 Total 87 (Source- Survey Data) Inference- The table 1.1 and Fig. represents the data collection from various retail shops. In this study data collected from 30 mobile shops, 30 Readymade Garments shop and 27 departmental stores in Mysore. Table 1.2 Implementation of Technology in retail shop Yes No Mobile 12 18 Garments 10 20 Departmental store 0 27 (Source- Survey Data) Inference- The table 1.2 and Fig. represents that 12 mobile shops using both conventional method and online selling out of 30 mobile shops. In garments retail shops only 10 shops implemented online selling method and remaining are not interested in this technology. But in the case of departmental stores no one using online selling method. Table 1.3 Master table showing present status and future perspective of respondents  SL No Variables Present Status Future Perspective     Low Moderate High Low Moderate High 1 Sales 58% 19% 23% 21% 51% 28% 2 Profit Margin 49% 33% 18% 40% 39% 21% 3 Expectations For Unbelievable Discounts 13% 19% 68% 14% 27% 59% 4 Expectations About Verity Of Products 11% 21% 68% 10% 20% 70% 5 Effect Of Online Advertisement 15% 29% 56% 11% 16% 73% 6 Window Shopping 10% 31% 59% 45% 21% 34% 7 Local Media 21% 36% 43% 13% 26% 61% 8 Service Oriented 5% 27% 68% 5% 13% 82% 9 Incorporation With Technology 58% 17% 25% 14% 29% 57% 10 Competition From Modern Retail Shops 12% 24% 64% 12% 31% 57% (Source- Survey Data) Present Status of Retail Shops Future perspective of Retail Shops Findings In mobile retail shops few retailers using own applications for online selling and garments also using mobile application with an agreement of Boutique for online sales. But in case of unorganized departmental stores not willing to use any mobile applications and online selling method. Conventional retail shops (grocery) are struggling to survive in the retail market. Since 2000 the sales of unorganized retail shops decreasing drastically because of online selling method from organized retail business in every type of business in India. There is continues decrease in profit margin for retail shops. This is happening because every company offering unbelievable discounts, cash back and zero percent interest with easy EMI strategies for almost all products. These strategies affecting on unorganized retail shops. In unorganized retail shops footsteps is very much low compare to organized retail mart. Since 10 years customers using window-shopping for electronic and garments products. But in case of grocery retail shops the window shopping is not much higher compare to mobile and garments shops. In case of service after sales organized retail shops trying to reach the expectations from customers and retain them for future perspective. Unorganized retail shops are very lack in service oriented business. Rapid growth of competition from different organized retail marts directly impacting on unorganized conventional retail shops. The modern strategies from organized retail marts filling the gap of expectations from customers. Suggestions Unorganized retail shops like mobile shops, garments and grocery retail shops must create mobile application with user friendly of their own and they must convey this information for customers and retain them in business. Creation of group of unorganized retail shops can create website for online selling method with easy and affordable price to the local customer. This way retail shops can attract local customers. Most of the customers looking for online services to buy and use products. If retail shops provide this online service then retail shops can retain attract the customers. The unorganized retailers should offer attractive weekly or monthly schemes for their products and other items and promote them through leaflets or pamphlets. For the future perspective unorganized retail shops must focus on modern method of selling strategies to sustain in the market. Unorganized retail shops must focus on service related issues and improve the method to solve the grievances from customers to retain and to sustain in the market. Conclusion Electronic wave spreading over every activity of human life, there is no exception for business. In olden days companies were talking about loyal and genuine customers to buy products but now in modern electronic phenomena every customers searching for loyal and genuine seller. Customers are very cautious about easy accessible, affordable, cash back, unbelievable discounts for products and time saving in one umbrella. 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