ELECTRONIC RETAILING

Group Members: Lija Manzoorul Nishad Ravishankar Rinil

INTRODUCTION
The e-retailing is the concept of selling retail goods using electronic media, in particular, the internet. The term coined in early 1995 seems an almost in evitable addition to e-mail, e-business and e-commerce. E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g., Amazon did for Books & CDs, etc.

The online retailing require lots of displays and specification of products to make the viewers have a personal feel of the product and its quality as he gets while physically present in a shop.

e-Retailing is synonymous to B2C business model that executes a transaction between businessman and the final consumer. Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of products, information and service through virtual stores on the web, usually designed around an electronic catalogue format and auction sites.

Essentials of E-Retailing

Attractive business-to-consumer (B2C) e-commerce portal

Right revenue model Penetration of the Internet

Advantages of E-Retailing
The electronic channel gives the existing brick-store retailers an opportunity to reach new markets. For the existing retailers, it is an extension to leverage their skills and grow revenues and profits without creating an altogether new business. E-Retailing overcomes some limitations of the traditional formats, for instance the customers can shop from the comfort of their homes.

 The e-commerce software that also traces the customers activities on the Net enables e-retailers to gain valuable insights into their customers shopping behavior The e-retail channels transcend all barriers of time and space. The retailers server must be on 24*7. An order can come from any customer living any place at any time of the day.

Shortcomings of e-retailing
It lacks an emotional shopping experience that the customer can get in a personal shopping store. It being container of intangible merchandise (i.e., virtual display of merchandise) does not provide sensory support to the customer, these the customer cannot hold, small, feel, or try the product. On line customers are reluctant to part with their credit card details on net, fearing they may be misused. It arises security issues. The customers are not yet convinced about the foolproof status of this method, especially in Indian environment. It is lacking in family shopping experience which the Indian customers enjoy at the weekends, and particularly during festive seasons and marriage marketing.

Success factors for e-retailing

The important factors are: Strong Branding Unique Merchandising Competitive Pricing Better CRM Better Distribution Efficiency Soothing Website Design Transparency in Services.

Challenges of E-Retailing
Unproven Business Models Requirement to Change Business Process

Channel Conflicts

Legal Issues Security and Privacy

E-catalogue
E-Catalogue is a database of products with prices and available stock It is a form of non-store retailing in which retail units inform prospective clients about their merchandise or service through mails. Catalogue retailing is of two types: general merchandisecatalogue and specialty-catalogue retailing. Catalogues are differentiated in to two based on their target audience : consumer and business to business.

Advantages of catalogue retailing

Customers can shop when it is convenient for him. Saves resources on account of time and travelling cost. Relevant product information is available in detail. There is space for unlimited product display. Catalogue hallows for low overheads and reduced cost of sales. The marketer has total control of the selling process. Modern direct marketing techniques allow prospective clients to be targeted based on their known interests.

Web Market Characteristics

Technology Infrastructure Channel Integration

Information Intensity

Technology Infrastructure
Web Opens a new space for retailing Customers can visit virtual stores, browse through product offerings, and place orders as they do in traditional stores Web technology supports market features inexpensively, such as 24x7 availability, fewer/no geographic boundaries, interactive two-way communication, search facilitation and information/knowledge sharing

 The availability of information gathered through customer interaction allows marketers to produce business intelligence to better support their customers Developing and employing new technologies and applications may provide marketers with new business opportunities and advantage

Channel Integration
The powerful integrated environment of the Web can affect the marketplace in many ways Consumer orders can be automatically processed and routed to suppliers Information channels are integrated, with information flowing both ways between vendors and customers

 Compared to information push from marketers to customers through traditional media such as television, the Web is a "pull" medium where customers purposely search for desired information.

The integrated Web channel also facilitates consumer interaction and favors interaction marketing

Information Intensity
The Web is a truly information-intensive environment Vast amounts of information can be collected, integrated, processed, presented, and accessed through the Web by both marketers and consumers Marketers now can track detailed information for all e-tailing consumer interactions, not just select samples

Comparison of web and traditional retail markets

Web Market
Technology is a determinant for market development and business strategies Integrated

Traditional Market
Serves as a supportive tool

Channels

Separate

Market Information

Intensive

Limited

Practices in Online retailing

1) Go to the buyers
Quickly and cost effectively gain access to and capture qualified customers 2) Optimize Home page Design Your home page allow visitors quick access to purchase options 3) Content Partnerships 4) Excellent Store Locator 5) Good Customer support options

Consumerism
Activities of consumers and other consumer organizations aimed at protecting rights of the consumers. Countervailing activities against maxim of caveat emptor.

Ethical and green consumers

Consumer whose purchase is influenced by ethical believes such as animal welfare, etc Eg. Body soap Green consumers are in line with environmental movements

Environmentalism
Protection of the environment resulting from: -Production -Distribution -Marketing activities Retailers responses to environmental concern: 1. Related to product: eg. Safeway 2. Related to retail operations

Cont.
Retailers environmental initiatives: 3Rs Reusing Recycling Reducing

Ways:
Recycle paper, plastic, aluminum, ink cartridges. Reuse packing materials and cardboard boxes. Use double-sided printing when possible. Reduce paper transactions by going digital for bill payment, vendor ordering, invoices, online banking, email and faxing directly from your computer. Keep up with regular maintenance of all mechanical equipment.

Cont.
Eliminate disposable cups, plates and utensils in the break room. Replace with permanent dishware. Switch to rechargeable batteries. Large office supply stores even have collection centers for recycling dead rechargeable batteries. Use eco-friendly cleaning products that are biodegradable and non-toxic. Purchase energy-efficient PCs, printers, and other equipment with the Energy Star label. Donate or recycle old computers and equipment.

Ethical sourcing
Ensuring that products sold by retailers do not exploit workers in other countries. Two strands: 1.ETI 2.fair trade

Cont
ETI Tripartite alliance Main provisions are: -Employment is freely chosen -Safe working conditions -No child labor -No discrimination -No extra working hours

Cont
Fair trade Paying producers fair price to cover their basic needs and provide margin for investment. Also paid with advance payment when requested. In return producers need to ensure that there activities are sustainable Many organizations carry fair trademark- coffee, tea, honey, mango, sugar

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