using a mobile app, an internet store, or both.

To remain competitive, retailers need to offer

an experience across all channels that lives up to these standards. Retailers are therefore
required to offer customers an uniform shopping experience irrespective of the platform they
select. Clients ought to be able to return items bought online and pick them up in person, for
instance, or buy items online and pick them up in person. For the delight and loyalty of the
customer, this smooth connection between the various channels is essential. Over the past
2 years, the COVID-19 epidemic has led to shifts in customer tastes, routines, and attitudes.
This has a big effect on how consumers purchase and use products and services. Modern
business tactics are now being used by multinational retailers to seize fresh retail prospects.
The distinction between online and traditional consumption channels is no longer made by
consumers. Large corporations are experimenting with various strategies to create flawless
retail experiences which are integrated among all channels as a result. Retailers are
experimenting with income models to enhance their consumer value offer by utilising both
well-established e-commerce platforms and conventional methods. The results indicate that
e-commerce has caused a change in consumer behaviour, with more people choosing to
purchase online due to its ease, accessibility, and affordable prices.

1.3 Chapter planning

Chapter 1: Introduction

Chapter 2: Literature Review and research gap

Chapter 3: Objective of the study and Research methodology

Chapter 4: Data Analysis and findings

Chapter 5: Conclusion and recommendation and Limitation of the study

11
larger. New generations are expanding in wealthy nations, buying things online as they move
during their peak spending years ( Americo & Veronico, 2018).

This research compiles these modifications by examining questionnaire information acquired

from 2500 American purchasers, chronicles the significant variations in in-store and online
grocery shopping conduct, presents potential reasons for these changes, and suggests
pertinent managerial consequences in both the near and distant future. It is imperative to
document this awareness as pandemics and significant crises that necessitate comparable
behaviours are expected to recur. The results shed light on a number of trends and areas of
focus, including the removal of non-core assets, increased emphasis on asset selection,
redefining the role of physical stores, the use of ESG factors in property and investment
management, and the use of customer engagement as a tenant selection factor. A number of
ramifications for the rising street and urban retail environment are also highlighted by their
findings. The emergence and evolution of digital technology has accelerated the evolution of
the retail industry during the past few decades. Due to the electronic commerce revolution
and its ongoing growth, almost the entire world has seen changes in consumer behaviour, the
structure of retail, and the transformation of the high street. The retail platforms supported by
digital innovation had to fast adapt in particular owing to the COVID-19 epidemic, and it is
anticipated that this transition will continue to be supported as customers and businesses
adjust to new norms (Nanda, Xu, & Zhang, 2021).

The findings in the first chapter indicate that rise in wholesale profits makes e-commerce
lucrative for manufacturers. The first two chapters demonstrate how growing consumer
surplus is a result of e-commerce, and how the impact on merchants' earnings is tied to their
online strategy. For customers, e-commerce makes it possible to make purchases from
anywhere and at any time. Furthermore, they can save time buying online and compare online
offers easily. The firms can develop online strategies to try to obtain more profits thanks to
the online distribution channel. In some countries such as France, a large part of online sales
in the food market are not made with deliveries but by going to a click and drive store where
consumers buy online and then pick up their order by car in a dedicated warehouse or the
dedicated parking of a supermarket ( Bonnet, 2022).

The e-commerce industry in India is encountering numerous challenges due to issues with
infrastructure and computer illiteracy. A significant proportion of customers residing in rural
regions lack sufficient understanding about computers and the internet. Additionally, some

14
urban customers do not have access to credit facilities, which has restricted the online buying
and selling of goods to the tech-savvy urban population. Nevertheless, Indian marketers can
achieve success in international markets by focusing on the fundamentals of a good website.
E-commerce is a technological revolution that is currently in high demand. E-commerce
offers many benefits that improve customer happiness and consumer locational opportunism
while also allowing the business to improve its competitive advantage. E-commerce has
made significant strides in the fashion clothing and accessory sector over the past ten years.
Many businesses seek to develop, formulate, and restructure their plans. Customer
relationships are rapidly replacing the traditional impact of manufacturing. E-commerce
offers opportunity to both major and small clothes shops (Kumar & Bagai, 2018-2019).

The paper examines how this technological advancement aids in understanding consumer
behaviour and has significantly stimulated the online retail sector. The retail sector has
developed over time and demonstrated a willingness to adopt new technology in its
workplace practices. Technology advancements in hardware, software, and
telecommunications have offered marketers tools for managing the online retail ecosystem.
Modern software development is assisting marketers in efficiently managing their corporate
operations. Acceptance of technology not only improves methods of client contact but also
aids businesses in formulating their marketing and sales strategies (Kate, 2019).

2,500 U.S. individuals were polled about their retail grocery purchasing habits throughout the
pandemic. The results of the survey reveal that buyers now have higher hopes for in-store
protection; they have decreased store visits often; they spend less time travelling to and from
stores; they spend more money per shopping trip. The expansion of transactions across
various e-commerce grocery platforms coincided with the growth in in-store expenditure,
creating ideal competition in the newly growing online food retail sector. This kind of ideal
competition is uncommon in the monopolistic ecommerce sector as a whole, and it gives
platforms new options to reform and jointly construct a viable online food retailing sector
(Chen, Wang , xu, & Schwartz, 2020).

The retail sector is incredibly significant and vast. When it comes to employment and
turnover, it is typically the largest sector of the economy. About 12% of the non-farm
workers in the United States worked in the retail sector, which in 2003 generated revenues of
US$ 3.7 trillion, or 34% of the nation's GDP. 37 This was more than the total number of
workers employed in US manufacturing. This increased investment in technology has raised

15
entry barriers in the retail sector and led to huge scale advantages for big enterprises. There
are also scale economies in purchasing. A larger merchant can use its purchasing power to
negotiate better terms and tailored services with vendors, including cross-border logistical
solutions (Nolan, Zhang , & Liu, 2007).

(Dholakia, Xiao, Dholakia, & Mundorf, 2000) concentrated on five effort-intensive features of
these shopping sprees: value comparison, time required for shopping, product details other
than cost, interpersonal relationship, and access to the store. This allowed us to contrast
physical and e-shopping in terms of their indulgent values for various categories of consumer
products and services. For ease of use, we refer to physical shopping as p-shopping and
electronic shopping as e-shopping. They have solely examined the possible effects of retail
electronic commerce on consumers' actual travel. Yet, the logistic of the supply chain for
retailers are also impacted by e-commerce. E-commerce promotes the placement of supply
facilities in lowland areas with convenient shipping access rather than large shopping malls.
Also, delivery vehicles travel to the neighbourhood rather than individual customers visiting
the establishments. The gap between the decreased customer travels and the increased
delivery trips brought on by e-commerce in a particular location would therefore be the total
number of trips avoided. During the busy Christmas season, e-commerce provides advantages
in terms of accessibility and time savings. As a result, the accessibility of online shopping
throughout the holiday season may help to reduce traffic congestion brought on by buyers in
commercial areas. In both the p-shopping and e-shopping modes, they scored these five
aspects of purchasing for each class of consumer goods.

Retailers must understand the multi-channel shopping habits of today's consumers in order to
meet changing and evolving customer expectations and requests. Customers around the world
now have the advantage over sellers and demand buying experience wherever, anytime, and
through any distribution platform thanks to smartphones, tablets, and essentially
"unrestricted" access to the Internet from the convenience of their homes, places of
employment, or while shopping in-person or on the go. (Maheshwari, 2013)

Retail business is a set of actions intended to raise consumer satisfaction, or the perception
that a good or service has lived up to expectations. Its significance varies depending on the
product, industry, and client; for example, damaged or defective goods can be exchanged.
This research has been conducted to determine the relationship between retail client service

16
and the sales of the local shop. Reviewing various retail services provided by Indian shops is
the goal. Also, the study aims to determine consumer satisfaction levels with regard to retail
services and the effects of those services on sales. The conclusion was drawn that, Retail
stores are part of the service sector and provide both goods and services. As a result, retail
good management not only shares the traits of good product quality but also possess unique
qualities in terms of service quality. Although the services provided by the shop are subpar,
planning and process execution need to be improved. Retail stores use these services to
increase sales and foster client loyalty so that they can compete on a global scale. The shop
should draw young people who shop for both themselves and their families. In addition, the
shop needs to focus on drawing in a variety of clients (Kotni, 2011).

Manufacturers and retailers are responding to the "new normal" consumer mode, which is
leading to adjustments and improvements in shopper marketing. Manufacturers as well as
retailers can manage current products and introduce new products more effectively and
efficiently by inventing and/or embracing innovations in customer marketing methods.
Substantial advancements in manufacturer and retailer shopper marketing strategies are being
shaped by significant developments in technology, the economy, regulation, and
globalisation. Recent advancements in consumer marketing include those related to
multichannel marketing, measurement, organisation, store atmosphere and style, in-store
merchandising, and digital marketing activities. The main managerial hurdles to attaining a
manufacturer-retailer-shopper win-win-win solution are closing the manufacturer-retailer
collaboration gap, surmounting management obstacles, and resolving consumer welfare and
concerns. The following seven major unresearched issues related to the shopping cycle are
based on plausible future scenarios and our speculation of changes in the environment and
shopper marketing practises: new insight generation through non-traditional discoveries, the
interaction effects of rational and emotional drivers, individual and environmental factors on
shopper behaviour (Shankar, Inman, Mantrala, Kelley, & Rizley, 2011).

The author concluded that mobile marketing, which entails two- or multi-way interaction and
promotion of a deal between a business and its clients utilising a mobile channel, device, or
software, is becoming more and more significant in the marketplace. They put out a
conceptual structure which includes the mobile, the user, and the retailer as three essential
entities. The framework covered a number of linked topics, including competition, important
retailer mobile marketing initiatives, key consumer segments, drivers and inhibitors of mobile

17
adoption, and key mobile properties. Also, they discussed effective retailer mobile marketing
techniques, underlined the organisational and customer problems around this issue, and
outlined potential future research directions (Venkatesh, Shankar, Hofacker, & Naik, 2010).

This study's goal is to ascertain how merchants will be impacted as the rise in e-commerce
rises. Many businesses started out in the retail industry by establishing their own websites
that featured a variety of services and alluring consumer incentives. The platform operates as
a coalition that makes use of all the goods provided by little shops in big malls. It includes
apparel, footwear, installation supplies, furniture, jewellery, and cuisine. An online store that
satisfies the requirements was the outcome. The survey finds that as internet buying patterns
grow, there are less steps taken to visit brick and mortar stores (Maiya, 2020).

E-commerce has influenced how industry dynamics have changed, with online retailers
getting a larger market share and traditional stores finding it difficult to adjust. Traditional
brick-and-mortar retail establishments have been significantly impacted by e-commerce,
which has resulted in decreasing foot traffic, lowered sales, and greater competition from
online retailers. The survey also discovered that traditional shops can succeed by leveraging
their strong existence, providing distinctive in-store experiences, and using technology to
improve the customer experience. For decision-makers, industry professionals, and
academics interested in the fate of the retail business, the study's findings are significant. This
study intends to enlighten ongoing discussions on the prospects for the sector and to give
insight into the best approaches for adjusting to the shifting retail landscape by putting light
on the effects of electronic commerce on physical retail outlets (Mahmood, 2023).

This study links industry features with elements brought on by the evolving external
environment to examine how Ecommerce has affected the Gems sector and Jewellery
sector industry. The Market-Based Vision (MBV), Resource-Based View (RBV), and Margin
Requirement Economics are combined to achieve this purpose, and this "new lens" is then
used to examine the effects of Ecommerce on the G&J Industry and concentrate on its
characteristics. This article also fills a knowledge gap since very little known about how
Ecommerce affects Small and Medium Businesses in the Gems and Jewellery market. While
analysing the changes to the external environment brought on by e-commerce, these impacts
and the consequent organizational and strategic implications serve as the analysis's analytical
unit. Linking the various theories and concepts and looking into their applicability to the G&J
business represents one of the efforts made in relation to these issues. Regardless of whether

18
they directly engage in Ecommerce or not, industry participants must grasp how these
fundamental elements interact. This paper incorporates these factors in order to give the
essential theoretical basis, suggest potential outcomes, and offer insights into how small and
medium enterprises in the G&J business might successfully engage in E-commerce
regardless their restricted financial capabilities (Rossberger, 2013).

The primary goal of the study is to detect patterns in customer shopping behaviour. By this
type of analysis, the company may determine which customers need to be contacted in order
to market the appropriate product to the appropriate consumer. A public dataset that can be
downloaded from the Dunnhumby website serves as the primary transaction database for the
implementation phase. In the initial stage, loyalty customer transactions from the previous
three months were used, and the datasets were cleaned using a Python script that will be
covered in greater detail in the research. Market basket analysis is one of the often used
applications. The Association rule, on the contrary hand, is a rule-based method that may be
used to uncover common themes in huge datasets. This falls under unsupervised machine
learning techniques. The two main models, which fall under the Association rule, are
Information filtering and Cooperative filtering models. Using Software Machine Learning
Studio, the researcher created two user interfaces for this study. Both Python and R Studio
scripts were used in the implementation procedure. The research project's end results include
the implementation of a personalised promotion strategy and, finally, a machine learning
model (Wijayasekara & Asanka, 2021).

2.1Research gap

The researcher have not yet explore the traditional retail market and e-commerce over last 8
to 10 years. The researcher has focused on a particular sector while doing their research.

19
3. Objective of the study

 To explore the condition of traditional retail usage and e-commerce usage in last 10
years.
 To find out total revenue of traditional retail market and e-commerce.
 To analyse the impact of e-commerce on traditional retail industry.

20
 4. Research methodology

Research design: Descriptive data as it describes the particular set of measurements. It is

frequently more acceptable to employ descriptive data analysis rather than explanatory data
analysis when working with secondary data (data that has already been gathered and is
available for analysis). One explanation for this is because secondary data is frequently
gathered to answer a specific research topic or for a particular goal, and the data might not
have been gathered in a fashion that enables thorough investigation of the correlations
between variables. For instance, secondary data from a government survey may give precise
information on a population's demographics but may not have enough details to establish the
causality of two variables. Descriptive data analysis is a good option for secondary data since
it may give a fast summary of the information and point out any trends or patterns that could
be present. This may be helpful for additional study or for exploratory data analysis.
Explanatory data analysis, on the other hand, necessitates a deeper comprehension of the data
and the connections between variables. It frequently entails the creation of hypotheses, the
discovery of causal linkages, and the statistical testing of these relationships. This kind of
analysis is better suited for the collecting of primary data, where the analyst has complete
control over the data collection and can structure the study to address certain research issues.
In conclusion, descriptive data analysis is frequently more suited when dealing with
secondary data because it may quickly summarise the data and assist find patterns or trends.
Explanatory analysis of the data is better suited to primary data collection, in which the
researcher has complete control over the data collection and may structure the study to
address certain research issues.

Type of research: Quantitative data is frequently utilised in secondary data research, which
examines data that has already been gathered and compiled by another person. Instances of
quantitative data sources which are suitable for secondary data analysis are given below:

Surveys: A lot of businesses carry out surveys to gather quantitative information on a range
of subjects, including consumer behaviour, market trends, and societal issues. To learn more
about people's beliefs, attitudes, and behaviours, this data can be studied.

21
Government data: A broad variety of quantitative data on subjects including demography,
growth figures, healthcare outcomes, and crime rates is gathered and published by
government agencies. This data can be used by researchers to examine patterns and trends
throughout time.

Business data: Organizations frequently gather and maintain quantitative information about
their customers, finances, and operations. This information may be utilized to assess
corporate performance, spot patterns, and guide decisions.

Academic research: Using surveys, experiments, and other techniques, researchers in a

variety of disciplines, including psychology, sociology, and economics, collect quantitative
data. These data can be examined to evaluate theories, test hypotheses, and provide new
knowledge.

Therefore, quantitative data through secondary information can be a useful tool for academics
because they offer a wealth of data that can be evaluated to learn more about a variety of
phenomena.

Type of data: Secondary data

Data which was gathered and examined by a different individual for a reason other than the
current study topic is referred to as secondary data. Researchers may find secondary data to
be a useful resource since it gives them access to a variety of sources of data and can be
gathered more cheaply and quickly than primary data. Researchers can use secondary data as
a great resource to develop new knowledge and find answers to open-ended issues. To make
sure they are suitable for their study objectives, researchers must carefully assess the quality
and dependability of secondary data sources.

Population sample is not there as the research is done on the basis of secondary data.

Data’s are shown in the form of bar chart, pie cart, and graph so we can interpret the data
easily.

Data have been collected from Statista and IBEF because it shows accurate data.

22
 5. Data analysis and Findings

Table 1: Total usage in India

Year Retail industry (percentage) E-commerce (percentage)

2012 97 0.6
2013 95 1
2014 93 1.7
2015 90 4.4
2016 88 5.9
2017 85 10.5
2018 82 12.5
2019 80 15.7
2020 80 18.9
2021 76 21.7

Figure 1: Total usage of retail industry in India

23
 Retail Industry (percentage)
120

100
97 95 93 90
80 88 85 82 80 80
76
60

40

20

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Figure 2: Total usage of e-commerce in India

25
E-commerce (percentage) 21.7
20 18.9
15.7
15
12.5
10.5
10
5.9
5 4.4

1 1.7
0.6
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

This data shows the total usage of retail industry and e-commerce. So according to the data
retail industry is gradually decreasing as the user are more preferring ecommerce and e-
commerce is increasing with the increase of internet users. Now the users are preferring to
buy from home as it is also less time consuming and easy returns are also available. We can
see from the graph that retail industry is decreasing slowly but the increase of e-commerce is
fast. Here we can see the impact of e-commerce on retail industry.

24
 6. Conclusion

In conclusion, organizations must be creative in their attempts to adjust and compete

effectively because the online shopping's effect on the traditional retail industry is evident.
The secret to success in the electronic commerce industry is the capacity to deliver a
remarkable customer experience and make decisions based on data. Businesses that remain
ahead of the curve and innovate new technology and tactics will thrive as emerging trends
like electronic commerce and personalised buying experiences continue to drive growth. E-
commerce has a bright future, and companies who set themselves up for expansion now will
gain in the long run.

The retail sector has been greatly impacted by the growth of e-commerce, which has also
changed how people shop and make purchases. This study attempts to investigate how e-
commerce has affected the retail sector, including consumer behaviour changes, competition
in the market, and the general retail environment.

A literature evaluation of pertinent studies is part of the study's mixed-methods approach,

which also includes data analysis of market reports and statistics. The results indicate that e-
commerce has caused a change in consumer behaviour, with more people choosing to
purchase online due to its ease, accessibility, and affordable prices. Brick-and-mortar stores
have therefore had to modify their approaches in order to stay competitive, with many
incorporating electronic commerce into their corporate structures.

People have begun to favour modern lifestyles, but it doesn't imply we should give up our
ancient habits. There are some products we still like to get from a close neighbourhood shop.
Traditional retail will always have a position in the market. Nowadays, there are kirana shops
everywhere. Hence, rather than looking for a real 24-hour store, you will most likely shop
there if we need anything right away. For instance, if you observe people purchasing milk,
they almost always do it from a nearby kirana store. There is fierce competition among
markets today, and it has gotten even fiercer with the digitalization and modernization of
markets.

Over the past 2 years, the COVID-19 epidemic has led to shifts in customer tastes, routines,
and attitudes. This has a big effect on how consumers purchase and use products and
services. Modern business tactics are now being used by multinational retailers to seize fresh
retail prospects. The distinction between online and traditional consumption channels is no

32
longer made by consumers. Large corporations are experimenting with various strategies to
create flawless retail experiences which are integrated among all channels as a result.
Retailers are experimenting with income models to enhance their consumer value offer by
utilising both well-established e-commerce platforms and conventional methods. With a
number of new trends emerging that will influence the sector, the development of electronic
commerce is bright. The development of social commerce, which allows customers to make
direct product purchases through social media sites like Facebook and Instagram, is one of
these trends. Youngsters, who are more inclined than older consumers to make purchase of
goods through social media, are particularly fond of this trend.

The use of machine learning and artificial intelligence to customise the purchase experience
for clients is another trend. Retailers can offer specialised advice and individualised
promotions that boost consumer happiness and loyalty by evaluating customer data. Retailers
can utilise information about a customer's past purchases to offer them tailored discounts and
promotions, for instance, if they frequently purchase goods from a specific brand.

E-commerce has also heightened rivalry within the retail sector, with new players attacking
established shops and upending the market. The report also looks at how e-commerce has
altered supply chains, logistics, and fulfilment as well as the general retail environment. The
study's conclusion is that e-commerce has had a substantial impact on the retail sector, posing
both difficulties and prospects for retailers. Retailers must keep on innovating and adapt in
order to stay competitive in this rapidly changing market. They must use data and technology
to improve the consumer experience and stay one ahead of their rivals.

33
7. Scope for further study

 The analysis are limited to India – situation would have been different if analysis is
done for the globe.
 After year 2021 data were not available on usage of traditional retail market and e-
commerce.
 In some factor after year 2020 data were not available.
 In further study more factors can be included and data can be analyse for further
years.


34
 8. Bibliography
(n.d.).

Americo, A., & Veronico, A. (2018). The Effect of E-commerce on Employment in Retail Sector.

Bonnet, C. (2022). Essays on e-commerce in the food retail industry.

Burt, S., & Sparks, L. (2003). E-commerce and the retail process: a review. Journal of Retailing and
Consumer services, 275-286.

Chen, X., Wang , Y., xu, R., & Schwartz, M. (2020). COVID-19 and Retail Grocery Management:
Insights from a Broad-based Consumer Survey.

Dahiya, M. (2017). Study on E-Commerce and it's Impacts on Market and Retailers in India.

Dholakia, N., Xiao, J. J., Dholakia, R. R., & Mundorf, N. (2000). The impact of retail ecommerce on
transportation: A conceptual framework. Research Institute for Telecommunications and
Information Marketing.

Goldmanis, M., Hortacsu, A., Syverson, C., & Emre, O. (2010). E‐Commerce and the Market Structure
of Retail Industries. The Economic Journal, 651-682.

Kate, P. H. (2019). The Role of Computer Technology in Driving Online Retail.

Kotni, V. V. (2011). Impact of retail services on retail sales. Journal of Business and Retail
Management Research .

Kumar, D. S., & Bagai, S. (2018-2019). Consumer behaviour in fashion retail industry- Role of
Ecommerce in Indian fashion retail industry. Tecnia Journal of Management Studies.

Lewis, R., & Cockrill, A. (2002). Going global—remaining local: the impact of e-commerce on small
retail firms in Wales. International Journal of Information Management, 195-209.

Maheshwari, R. (2013). Impact of Technology on Retail Industry.

Mahmood, A. (2023). The Impact of E-commerce on Traditional Brick-and-Mortar Retail Stores.

Maiya, U. (2020). IMPACT OF ONLINE SHOPPING ON RETAIL BUSINESS: A STUDY WITH REFERENCE
TO UDUPI DISTRICT. Asia Pacific Journal of Research.

Nanda, A., Xu, Y., & Zhang, F. (2021). How would the COVID-19 pandemic reshape retail real estate
and high streets through acceleration of E-commerce and digitalization? Journal of Urban
Management, 110-124.

Nolan, P., Zhang , J., & Liu, C. (2007). The Retail Industry.

Rossberger, R. J. (2013). Ecommerce in the gems and jewelry industry. Regional and Global
Dimensions of Commerce, 583-591.

Shankar, V., Inman, J. J., Mantrala, M., Kelley, E., & Rizley, R. (2011). Innovations in Shopper
Marketing: Current Insights and Future Research Issues. Journal of Retailing, 87.

Venkatesh, A., Shankar, V., Hofacker, C., & Naik, P. (2010). Mobile Marketing in the Retailing
Environment: Current Insights and Future Research Avenues. Journal of Interactive
Marketing, 24(2), 111-120.

35