To analyze the choice & suitability of single ("Click" or "Brick") or multiple ("Click") & ("Brick") retailaing formats

Abstract

Abstract E-commerce for consumers (B2C) continues to increase in dollar volume, the current recession not withstanding . Worldwide retail sales though remain relatively low as a percentage of Internet sales though the concept of E-tailing has really caught on post 1995 when retailers and markets saw the viability of the business model as exemplified by Amazaon.com and others . Since then E-tailing has come a long way in terms of technological advancements and customer friendliness and acceptance. Numerous and interrelated motivations objectives and obstacles factor in the choice of a retailer to choose a pure-play online retailing model and for conventional retailers to open an online channel. This presents a complex decision problem before the aspiring e-trailer . Some of the internal factors like choosing an appropriate target segment robust web architecture customer friendly interface integration of marketing with development can be managed through careful planning prior to venturing onto the online retail market others however like the excess competition weak distribution networks low bandwidths are a consequence of the nascent nature of the industry and will get resolved only as the industry matures. The industry however present many advantages to the retailer and is consistent with the changing lifestyles of consumers for whom time is a scarce commodity and who cherish convenience. The Internet has provided a whole new way of selling to such consumers and retailer can no longer afford to ignore the channel. However the online retail channel has also brought about some tectonic shifts in the retail paradigms. The empowerment of the customer is complete with e-tailing and geographical boundaries no longer constrain retailers. Size no longer matters as the Davids masquerade as Goliaths in cyberspace. However the e-tailing story has not been rosy all the way . Numerous aspiring and high profile E- tailors like boo.com have flattered to deceive and their collapse has shaken investor confidence in the model. As the e-tailing market matures players have found out that many of the old retailing rules apply to e-tailing just as well. High levels of customer services or distribution efficiencies are as valued by online customers as by offline. Security of data and especially online payment mechanism are sensitive issues peculiar to the industry. The fledgling industry has to grapple with regulations or lack thereof the business. The challenge now is to prove the commercial viability of the online model . The has led to the click and Brick model. Offline retailers are hooking up onto cyberspace leveraging their strong existing brands and distribution networks to operationalize the e-tailing model better. Pure play e-tailors have found that there are lots of synergies to be derived with offline retailers to leverage their physical presence. Choices based on the experiences of their predecessors and e-tailing will take its rightful place as another viable retail channel. The leg between the bleeding edge and Indian industry has proved to be beneficial to the Indian industry as they learn from western experiences and try to design an e-tailing model tailored to the needs and profile of the Indian customer.