Evolution of e-commerce in India: a study on the effect on retail industry and the implications of public policy

Abstract

There has been a massive change in the retail landscape in India in the past few decades. Just observing it from a consumer journey perspective, initially there were small stores which could cater to multiple consumer needs, did not have any specific brands, just fulfilling daily requirements at the nearest store in reasonable price. However in around a decade that changed into organized shops which catered to a segment of the consumer needs, along with some brands that consumers started preferring. This gave way to shopping centers and malls, where you’d find a range of such specific shops, which gave the consumer the convenience of buying everything under 1 roof but still being able to differentiate what to get where. The rise of hypermarkets was next where all daily needs could be fulfilled, but these had a better store organization and a wider variety of products to cater to all the needs. Then came online retailing, which again started with individual stores / large chains offering their products online / sometimes just displaying the product catalogue online. With the entrance of online marketplaces and e-commerce websites, online market started to boom with thousands of offline retailers being able to sell their products online. With online retailing consumers started to feel another level of convenience, and with time the demand of faster, quicker, easier delivery and check out have risen. This study goes on to explore the journey of retail in India, specifically the changes due to online retail, how it has changed throughout the years, and how it has had an effect on the overall retail landscape of the country. Later we also see how government policies have had an impact on online retail and how is it expected to change in the future.