GD topic: Effect of E-commerce on the retail market

E-comers is also known as electronic comers these sites are the online trading sites. there is a number of the e-comers company nowadays, massively competing with the retail market. India known as a big market in the world and this is the reason much western e-commerce company is now investing a huge amount of money to develop their marketplace in India. Peoples are now rapidly switching towards e comers and mostly the youngsters, a report from the Internet and Mobile Association of India and market research firm IMRB International has revealed that the number of Internet users in India is 450 million. This number was 432 million in December 2016. Generally, products are much cheaper in online store then offline due to various discount. This market strategy in now creating customer attraction. Many retail stores are in fear of losing the customer due to a huge discount which they can’t provide.

Many business-schools have included this topic in their Group Discussion (GD) round for MBA admission 2017-19. You need to know the key points of discussion on the issue. Let’s start today’s GD topic: Effect of E-commerce on the retail market

 

E-comers seems harmful

  • E – Comers is a global platform and competing with them is not possible for the local market.
  • Recently, many of the E-commerce companies have adopted the unrealistic pricing to sell their goods into the market and to attract a large customer base. Under this unrealistic pricing, the e-tailers are selling their goods at unexpected high discounts than in any retail store. This is definitely hurting the sale of the retailers who are investing and not meeting their sales target.
  • Flipkart, an Indian E-commerce giant offered unrealistic discounts on the Flipkart’s Big Billion Day sale and claimed the business of Rs. 600 crores on that day.
  • Snapdeal also announced a similar sale. These types of unrealistic offers at heavy discounts attract a large mass of people and thereby contribute in the revenue generation of the company.
  • The e-commerce companies do not have any physical store as available with the normal retailers where the customers can go and ask for the repair or replacement, the customers sometimes have to face loss also.
  • The unrealistic pricing is benefitting the organization and the customers who get the products at a very low price due to heavy discounts. But when the whole system is considered, it is eating up the cash flow into the Indian physical market. With the kind of prices E-commerce Company is offering, it is impossible for retailers to compete.

 

E-comers is not harmful for the economy

  • E – comers is not harmful for Indian economy because in India the retail market is more dominating then online market about 90% of the product are trading in the offline store.
  • E- Comers has more product option then the offline market in a one pace. E – Comers platform provides different brands and their comparison which is very useful to choose the right product.
  • No doubt E – Comers site are adopting massive discount pricing on their product but ultimately this is beneficial for the common peoples.
  • E-comers sites are now very safe and providing reliable product replacement guaranty. E comer’s site provides delivery of the product on the door step of your home this is a time saving factor.
  • Transaction one comers site are traceable which is a factor can grow our national economy. In the offline market, there is a chance that the retailer may hide the tax but in the online market, this is not possible.

 

Conclusion

Growth of e-comers is not a problem now in India due to 90% of trade is still depends on offline. The excess of everything is harmful so it will be better to set a proper regulation on e-comers. The controlled e-commerce market will provide a boost to our economy in future.

 

 

 

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