IMPLEMENTATION OF E-COMMERCE IN TIER II & TIER III CITIES:

CHALLENEGS & OPPORTUNITIES

PREPARED BY: PRASHANT VERMA BBA – LOGISTICS MANAGEMENT

PRESENTED AT INTERNATIONAL CONFERENCE ON

MANAGEMENT OF INFRASTRUCTURE(ICMA)

OUTLINE OF PRESENTATION

Introduction E- History To E-Future Objectives Research Methodology Opportunities Challenges Finding Suggestions

INTRODUCTION

E-commerce refers to the use of electronic means and technologies to conduct commerce (sale, purchase, transfer, or exchange of products, services, and/or information), including within business, business-to-business, and business-to-consumer interactions (Whinston, Choi, & Stahl, 1997).

E-commerce has revolutionized the entire process of business & given us to the new dimensions to explore an existing traditional market.

INTRODUCTION (CONT’D)

Tier II Cities

Tier II cities basically smaller cities, statistically one million in population and are usually regional hubs such as state capitals or industrialized centres. Some examples include Pune, Cochin, Mangalore, and Dehra Dun.

Tier III Cities

Tier III includes minor cities like Nasik, Baroda, Trichy, Madurai, etc. Tier III consist of cities with a population of less than a million. (Nair, 2007)

E-HISTORY To E-FUTURE

Earlier we trade-in by using Barter system, Haats ,Mandis, Fairs(Melas).

As the time evolved , PDS & mom & pop Store came into picture.

In India Raymond , Bata Shoe & Reliance Vimal were first to enter into organized retail

The present valuation of E-commerce market in India is $17 billion (2013-2014). (ET,2014)

In coming future expected worth of e-commerce industry will be around $45 billion till 2020.(ET, 2015)

OBJECTIVES

The Main objective of the study is :-

• To identify issues & challenges that might come up while implementing e-commerce in tier II & tier III cities

Sub Objectives are :-

• To identify Internet Related Issues while Implementing E-Commerce and the level of scope of success of E-commerce in Non- Metro.

• It also studies the awareness and preparedness of the consumers regarding E-commerce.

RESEARCH METHODLOGY

Research Design :- This is an exploratory study which tries to identify the variables which would might help or hinder the growth.

Literature review was also conducted to explore different dimensions of e-commerce.

Data collected was qualitatively analyze to come to conclusion.

OPPORTUNITIES

Age factor - Young generation plays a very pivotal role in building & growing brand value by using it. Young generation is account for 60% of online retail transaction.

Working women - Population of working women has increased from 26% in 2001 to 36% in 2014

Socio-economic factor - Quality of living increase. E.g.. Traditional to Organise retail

Income factor - Constant economic growth has fuelled the increase in personal income in India.

CHALLENGES

Payment issue - About 60% of the online user abandon their in-cart purchase .

Securities issues - Online retail website is more vulnerable to Scam, fraud & hacking.

Legal issues - IPR & ETA should be followed while using implementing e-commerce

Internet connectivity - According to World Bank low & middle income countries such as India, for every 10% increase in broadband penetration could increase GDP by 1.4%.

Logistics Issue - The logistics challenge in India is not just limited to lack of standardization in postal addresses

Payment gateway have high failure rate. - A long & confusing checkout process, deviate many prospected customer from buying online.

FINDINGS

India is the largest untapped e-commerce market in the world.

This study will help in retailers to understand the customer perspective with exploring opportunity & challenges and bracing themselves up as they were enter into this territory which is showing a lot of promise.

Major E-commerce giants have shifted his focus to tier II & tier III cities because a lot of traffic & transactions are expected to come.

SUGGESTIONS

In India, internet bandwidth is very low as compare to other nations. Internet connectivity & bandwidth should be provided at reasonable rate with appreciable speed.

Awareness program or awareness advertisement should be carryout in order to aware customer

Goods collection centre should be setup at initial stage when there is no proper transportation facility available in tier II & tier III.