Time for e-Tailers To Revisit Their Business Strategy
Date: Thursday , August 25, 2016
e-Tailing, better known as e-Commerce, may seem like a well-established slice of the shopping experience. But in an interesting turn of the event in the e-Tailing market, RedSeer Consulting, a research based advisory firm focused on achieving excellence in emerging markets, reveals that Indian e-Tailing industry is experiencing a slowdown in terms of growth compared to the growing quarters of last year. The latest report depicts that the first two quarters of 2016 saw a decreasing trend and a dip of 19 percent in the first quarter and a dip of 5-10 percent in the second quarter this year. Reasons like not easy to shop online, slow speed of internet, lack of compatible device, lack of reliability of delivery, online transactions are not safe and high prices, played an eminent role in it going south. But with the prediction of over 230 million new people coming online between 2015-2020 will need e-Tailers to have a clear strategy to induce this population to shop online.
While the e-Tailing industry is witnessing turns and twists, the online fashion is playing an eminent role and will emerge as game changers in the coming years. The big and dirty game of merger and acquisition is stronger than ever, for instance Flipkart owned Myntra acquiring Jabong. On the flip side, the valuations of many e-Tailing companies are witnessing the shadow and investors are quite worried about the future of the sector and their money they have poured into this segment. While they want e-Tailers to adopt innovative ways to engage customers rather than sit on discounts, the entrepreneurs still seem to be adopting this discount route which is turning making profit into a day dream.
On the other hand, investors\' pressure to do more with less will worsen the condition and we will further see these companies sacking people and closing their offices, rather operations for some. With new companies emerging each day, sustaining in this cut-throat competition will just become resilient. Hence it is time for e-Tailers to work towards adopting new approach and serve the purpose of their survival and offer their clients unique solutions/products with a distinctive approach.