Emerging Trends of Online Shopping Retails by Branded Retailers

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Transcript of Emerging Trends of Online Shopping Retails by Branded Retailers

A PROJECT REPORT ON EMERGING TRENDS OF ONLINE RETAIL BY BRANDED RETAILERS

Submitted to: INC, NOIDA

FACULTY GUIDEMRS. SWATI SINGH

SUBMITTED BYADITYA PARASHER & ANUSHI GUPTA

ACKNOWEDGEMENTThere are so many people whom we need to thanks for this project for their helping hand to finalize the project. Firstly, we would like to extend my gratitude to our faculty guide Mrs. Swati Singh. We are also thankful for her support and advice, moreover her valuable time that we had taken. Heartily thanks to our parents for always being with us. It is because of their support that we always set out for creativity. Last but not least, we would also like to thanks all those people who spare their valuable time in filling the Questionnaire. Thanks again to all of you.

Aditya Parasher Anushi Gupta

Table of contentsTOPIC1. 2.

PAGES4 5 6 7 8 13 20 21 22 23 24 25

EXECUTIVE SUMMARY RESEARCH OBJECTIVES

3. HYPOTHESIS4. RESEARCH METHODOLOGY

5. INTRODUCTION OF INDUSTRY6. ANALYSIS AND INTERPRETATION

7. FINDING8. LIMITATION OF STUDY 9. CONCLUSION 10. ANNEXURES

a. BIBLIOGRAPHY b. QUESTIONNAIRES

EXECUTIVE SUMMARYOnline shopping is the process consumers go through to purchase products or services over the Internet. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-andmortar retailer or in a shopping mall. Online shopping has spread into every corner of life, linking people to the culture of capitalism in frequent and daily ways.In general, shopping has always catered to middle class and upper class women. Shopping is fragmented and pyramid-shaped. This research is conducted to study the emerging trends of online shopping retails by branded retailers. This report includes the various factors which are taken into consideration by the consumers for purchasing through a retail store or for online shopping. This research also takes into consideration the factors which forms the basis of comparison made by the customers for online shopping vis--vis shopping through a retail store. The main focus of this study revolves around women as a buyer.

RESEARCH OBJECTIVES

Primary ObjectivesTo study the emerging trends of online shopping retails by branded retailers.

Secondary ObjectivesTo study and throw some light on the various aspects of online shopping which are as follows: 1. 2. 3. 4. 5. Most demanded products Reliability Convenience Store Brand Vs Online Brand Retail outlet Vs Online shopping

HYPOTHESIS

Working women are savvier to online shopping than housewives. The customers are not biased towards shopping modes. Young generation is moving towards online shopping Women are more resistant to buy online because of the touch and feel factor. .

RESEARCH METHODOLOGY

RESEARCH DESIGN:Descriptive Research

DATA COLLECTION METHODS USED:1) Primary data: Personal Interaction, Questionnaire 2) Secondary data: a) Internet

SAMPLING TECHNIQUE:Sampling Design: Convenience sampling Universe: Girls and women Sampling Unit: The sampling unit was limited to NCR, Noida SAMPLE SIZE: 30

ANALYSIS AND INTERPRETATION OF DATA:Questionnaire analysis is done on the basis of the response given by the respondents. Tools of analysis: a) Pie charts b) Bar diagrams c) Percentages

INTRODUCTION OF INDUSTRY

Online shopping is a type of electronic commerce used for business-to-business (B2B) and business-to-consumer (B2C) transactions. The term "Webshop" also refers to a place of business where web development, web hosting and other types of web related activities take place (Web refers to the World Wide Web and "shop" has a colloquial meaning used to describe the place where one's occupation is carried out). The metaphor of an online catalog is also used, by analogy with mail order catalogs. All types of stores have retail web sites, including those that do and do not also have physical storefronts and paper catalogs. In 1990 Tim Berners-Lee created the first World Wide Web server and browser.In 1992 Charles Stack created the first online book store, Book Stacks Unlimited (aka Books.com), two years before Jeff Bezos started Amazon. In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. In 1995 Amazon expanded its online shopping, and in 1996 eBay appeared. Online shopping lets us buy what we want, when we want, at our convenience, and helps us to imagine ourselves buying, owning, and having positive outcomes by the goods available out there on the web. For some, shopping has become a way of identifying oneself in today's culture by what we purchase and how we use those purchases. Online shopping has always been middle to high class commodity since its first arrival on the internet in society. In order to shop online, one must be able to have access to a computer, a bank account and a debit card. Shopping has evolved with the growth of technology. According to research found in the Journal of Electronic Commerce, if we focus on the demographic characteristics of the in-home shopper, in general, the higher the level of education, income, and occupation of the head of the household, the more favourable the perception of nonstore shopping. An influential factor in consumer attitude towards non-store shopping is exposure to technology, since it has been demonstrated that increased exposure to technology increases the probability of developing favourable attitudes towards new shopping channels. Online shoppers commonly use credit card to make payments, however some systems enable users to create accounts and pay by alternative means, such as:

Debit card Various types of electronic money Cash on delivery (C.O.D., offered by very few online stores) etc..

Design of Online Shopping

Why does electronic shopping exist? For customers it is not only because of the high level of convenience, but also because of the broader selection; competitive pricing and greater access to information. For organizations it increases their customer value and the building of sustainable capabilities, next to the increased profits. Online stores are usually available 24 hours a day, and many consumers have Internet access both at work and at home. A visit to a conventional retail store requires travel and must take place during business hours. Searching or browsing an online catalog can be faster than browsing the aisles of a physical store. Consumers with dial-up Internet connections rather than broadband have much longer load times for content-rich web sites and have a considerably slower online shopping experience. In most cases, merchandise must be shipped to the consumer, introducing a significant delay and potentially uncertainty about whether or not the item was actually in stock at the time of purchase. Bricks and clicks stores offer the ability to buy online but pick up in a nearby store. Many stores give the consumer the delivery company's tracking number for their package when shipped, so they can check its status online and know exactly when it will arrive. For efficiency reasons, online stores generally do not ship products immediately upon receiving an order. Orders are only filled during warehouse operating hours, and there may be a delay of anywhere from a few minutes to a few days to a few weeks before instock items are actually packaged and shipped. Many retailers inform customers how long they can expect to wait before receiving a package, and whether or not they generally have a fulfillment backlog. A quick response time is sometimes an important factor in consumers' choice of merchant.

ANALYSIS AND INTERPRETATION OF THE QUESTIONNAIRES

1. Trend of purchasing among Indian women

90 80 70 60 50 40 30 20 10 0

P urchasing

Retail

O nline

Both

As the graph shows 90% of the indian women still belive in shopping through retail store. Where as 10% of women shope online as well as through retail store

2. Purchasing of the product from the internet , at least for once

n o On e p rch g lin u asin yes

0

1 0

20

30

4 0

5 0

6 0

70

As per the graph Only 60% of the women have done shopping through online for once. And 40% of the respondents have never experienced online shopping.

3. Product generally purchased online

40 20 0 P roducts P urchas edGa ents E rm lectronic S C kin are Any other Item s P roducts

As per the graph 40% of the women prefer to purchase electronic item from internet 20% skin care product 30% garments 20% others which include books, rakhies, cakes etc.

4. People usually prefer to purchase

P roducts P urchas ed

40%

40%

New products online R epeat orders B oth

20%

As per the graph 40% of the women prefer to purchase new products from internet 20% would like give repeat orders 40% would go for both

5. Comfortable Shopping

100 80 60 40 20 0 R etail C fortnes om s Online C fortnes om s

As per the graph 90% of the women are more comfortable purchase products from a retail store Only 10% more comfortable with online shopping as they are more savvier to computers or internet.

6. Convincing information

30% R etail Online 70%

As per the graph While 30% of the women believe that information provided on internet is more convincing than provided by the retailers, 70% believe that they can be convinced more easily by the information provided by the retailers.

7. Reliable information

10 0 8 0 6 0 4 0 2 0 0 5 % Online

9% 5

R bility elia

R il eta

As the graph shows 5% of the respondents believe that information provided on internet is more reliable than provided by the retailers, While 95% believe that they can be rely only on the information provided by the retailers.

Convenient Shopping

7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 R il eta Online percentag of e respondents

As per the graph While 30% of the women found that shopping through internet is more convenient than going to a retail outlet 70% believe that shopping through a retailer is more convenient.

Image of the brand becomes better when purchased through-

90 80 70 60 50 40 30 20 10 0 retail online percentag of e respondents

As per the graph 10% of the women says that image of the brand becomes better when the product is purchased through internet. 90% which is the majority of the respondents says that if the product is purchased through a retail outlet, it enhances the image of the brand.

Next preference for shopping

60 50 40 30 20 10 0 Retail Online

next preference

As per the graph 40% of the women says that their next shopping preference would be through retail, 60% of the respondents would like to do online shopping.

REASONS FOR PURCHASING THROUGH RETAIL

40 20 0strongly agree agree may/may not be disagree strongly disagree

ease of shopping 20 10 35 5 30

cash payment 5 25 10 40 15

variety &quality 40 20 0 10 20

convincing 25 35 10 10 15

time saving 0 0 35 30 35

REASONS FOR PURCHASING THROUGH INTERNET35 30 25 20 15 10 5 0ease of electronic variety & convincing time shopping payment quality saving

strongly agree agree may/may not be disagree strongly disagree

REASONS FOR NOT PURCHASING THROUGH INTERNET

strongly disagree disagree may/may not be agree strongly agreedifficult to shop electronic payment cannot be experienced nonavailability time consuming

REASONS FOR NOT PURCHASING THROUGH RETAIL1010 10 10 15 15 5 10 10 30 20

5

in g

tim e

co

bi lit y

ns

5

nav a

ila

2020

pa ym

105

strongly disagree disagree may/may not be agree strongly agree

en t

no

um

sh

15 15

ca

di f fi cu

lt to

PERSONS PUCHASING ONLINE

se a

rc h

20

not relevant

housewife professional

not relevant

old

young

FINDINGS

One third of people that shop online use a search engine to find what they are looking for and About one fourth find websites by word of mouth. Word of mouth has become a leading way by which people find shopping websites. When an online shopper has a good first experience with a certain website, sixty percent of the time they will return to that website to buy more. Electronic items and books are one of the things bought most online. However, clothes is a very popular thing bought online. In general, cosmetics, nutrition products, and groceries are increasingly being purchased online. About one fourth of travelers buy their plane tickets online because it is a quick and easy way to compare airline travel and make a purchase.

LIMITATIONS OF STUDY

People may be biased towards retail sector. People were not ready to fill in the questionnaire Many of the surveyed people did not reply all the questions. The time period given for study was very limited. The sample size was very small which is may not represent the entire population of Indian women. Many of the people did not even know the working of a computer.

CONCLUSION

According to the survey, the Indian women usually go for retail shopping instead of online shopping. The most demanding product from the internet are the electronic items. It may be a new product or a repeat product purchase. The surveyed people feel that shopping from a retail outlet is more reliable thn an online shopping. As compared to online shopping respondents are more comfortable with retail shopping as they o Are already familiar with the retail outlets situated near their houses. o Believe in touch and feel factor The image of the brand, when purchased through internet, enhances as compared to the purchasing from a retail store.

ANNEXURES

BIBLIOGRAPHY

Wiki.answers.com http://www.harrisinteractive.com/NEWS/newsletters/clientnews/2006_Newgistics.p df

QUESTIONNAIREDear respondent, The questionnaire below has been designed to study the EMERGING TRENDS IN ONLINE SHOPPING FOR THE RETAILERS in India. Kindly fill in the required information which would be used for purely academic purpose and would help me in completion of my study. 1. From where do you generally purchase garments? Retail Online Both

2. Did you ever purchase any product from internet? Yes No

3. Which products did you purchase from internet? Garments Electronic items Skin care products Accessories Any other.

4. According to you people purchase: New products online Repeat orders

Both

5. Which shopping is more comfortable to you? Retail Online

6. Which shopping is able to provide information more convincingly? Retail Online

7. Which shopping is more reliable? Retail Online

8. Which shopping is more convenient? Retail Online

9. Image of the brand becomes better when purchased through Retail Online

10. Reasons for purchasing through retail

1Ease of shopping Cash payment Variety & quality Convincing Time saving

2

3

4

5

11. Reasons for purchasing through internet

1Ease of shopping Electronic payment

2

3

4

5

Variety & quality Convincing Time saving 12. Reasons for not purchasing through internet

1Difficult to shop/search Electronic payment Cannot be experienced Non-availability Time consuming

2

3

4

5

13. Reasons for not purchasing through retail

1

2

3

4

5

Difficult to shop/search Cash payment Non-availability Time consuming 14. Given the options, which would be the preference for shopping and when? Retail (when-..) Online (when-..)

15. Do you think online shopping may be a source of information? Yes No

16. Which of the following do you know provide the online sevices?

Westside Pantaloons Stoppers Stop Any other.

17. Kindly tick the most relevant parameters to make online retailing more user friendly

1

2

3

4

5

Enlarged image Payment on delivery Product availability Sizes available Colors available 18. According to you which of the following adjectives best describe the person purchasing online? Professional/housewife (not relevant) Traditional/modern (not relevant) Young/old (not relevant)

PERSONAL DETAILS 19. People making most of the purchases through retail are aged between 15-25 25-36 37 & above

20. People making most of the purchases through online are aged between 15-25 25-36 37 & above Professional Student Others

21. Occupation Business Service