E-Commerce in India Out Smarts Brick and Mortar Stores

BENAGLURU: Recently, hundred businessmen together purchased Mercedes-Benz , and woman from the country side are buying designer wear. And we have already seen the booming online “kirana” stores. It’s the end of season sale and the great Indian customer is thronging the E-commerce market in a large scale like never before.

From summer dresses to kitchenware to bikes and cars, online markets handle everything. Placing an order is a matter of minutes and to receive, it barely takes a week to the most. An exclusive partnership between E-commerce portals and designers make the small town customers included and special. Not so long ago, the designers harbored a great mistrust for designers and now that myth is shattered. Surveys show a rising market in small towns due to the feasibility, cash on delivery, easy return and excellent delivery system from the portals.

Tarun Tahlani, who recently started up an e-commerce store, says that there is a very hungry market in Tier I and Tier II cities. Even the E-com giants like Jabong and Amazon get over 50 percent of their designer wear orders from cities other than the eight metros. According to a KPMG study, around 70 per cent of luxury handbag player Judith Leiber's customers now come from Tier II and III cities.

Other interesting factor to note is that, many towns from states like Gujarat, Kerala and Punjab are flushed with money that is coming from NRIs which implies that this easy money is directly being invested in luxury products other than real estate and gold. Another study shows that one half of country’s ultra-high-net worth individuals are living in cities other than metros.

Clearly, E-commerce is going to define the future of India and can out-smart the brick and mortar stores. Also this growing market reflects on the prosperity spreading g beyond the metros.

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