E-Retailing – A perception & changing trend of central India’s customers.
Volumn 2

E-Retailing – A perception & changing trend of central India’s customers.

Dr. Hemant L. Babhulkar

Asst. Prof.

Dr. Panjabrao Deshmukh Institute of Management Technology and Research

Department of Dhanwate National College

Congress Nagar, Nagpur (Mah) INDIA 440012

Cell: 09422823583/09404950725

E-mail: hemant_hlb@rediffmail.com


Days are for Online shopping over the Internet. The B to B sphere Outside of specialized niche areas like information technology and other information-based products, B to C business is relatively developed over the period. One principle that holds true in the market space is that before online marketers can effectively respond to Indian consumer demand, they must understand their buying pattern and adaptability of technology. Internet marketers should revisit traditional models of consumer behavior, examine their underlying assumptions, and explore their validity in the new Internet context.

Online retail can change human behavior and human interactions to a very large extent. Online shopping behavior is one major example to point out the trends in this direction. This study is of a very exploratory nature and it intends to establish the differences between different profession of the customer and their frequency of purchases with their mindset for the same. One question which will run as a theme throughout the course of this paper is, Branded clothes provide more value than unbranded clothes.

Keywords: E-Retailing, Internet, Online Shopping, behavior of young customer, Central India


  • 27 % new customers of Nagpur recently join for online shopping.
  • India’s retail market is reached at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 10%.According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012–16. By “Asia Pacific Online Retail Forecast.
  • On 13th Oct 2015, Flipkart sale 10 Lacks Products in 10 Hrs on day one.

The above three statements point towards one direction, online shopping has arrived and it is here to stay. The Internet provides both firms and consumers with new methods for communication. For instance, the Internet provides consumers with access to rich new information sources and with the potential to make better-informed decisions.

In this study several aspects of consumer shopping pattern will be explored. Internet shoppers are classified into three broad categories: Active shoppers i.e. consumers who shop on a very regular basis (at least one in Month). Auction/ bargain huntersi.e. customers who are frequently search the auction sites. (Once in a year) Inactive shoppers  i.e. consumer who shop on a very irregular basis and remain inactive for long stretches of time (More than one year).

This study explores the factors that are associated with successful online shopping. Other issues or disadvantage that are explored here are – the factors that attract the online shoppers. Since online shopping is definitely expanding and can be classified as a universal phenomenon, I am interested to find out the buying habit of Nagpur’s customer with their traditional pattern

Rationale of the study

Indian economy was liberalised on 24th July, 1991 as part of bailout deal with the International Monetary Fund to overcome the severe Balance of Payment crisis faced by India at that time. As soon as the country border was opened for trade, foreign direct investment and portfolio investment as a result of liberalisation, the retail sector in the country got a boost. Application of internet in the marketing and selling process further added to the growing trend in the country. Yet, as compared to the global scenario, India is lagging behind in adopting and practicing e-retailing. There are many factors responsible for this backwardness. And Nagpur, being   economically technologically not so developed as compared to other parts in India, is perceived to have little idea about e-retailing. But, here is the twist that in reality, the youth section of Nagpur has been emerging as a tremendous and highly promising market for e-retailing- as reported by the CEOs of any online retail marketers. Even then, a greater share of population in Nagpur is still hesitant to adopt the e- retailing practice.


  • To study the perception of Nagpur’s customer toward an online retail.
  • To know the main reason for choosing online shopping.


The developing countries like India are going through a huge shift from old cultural and social era to 21st century new edge where the developed countries have already started taking the benefits of e-retailing for their routine businesses. The citizens of developed countries have also accepted this transformation. But India is still far from this transformation.

In India, the accelerated growth in modern retail is expected to continue for next few years. With consumer demand and business potential, there is a rapid growth in online retail outlets. India’s copious ‘Young’ population and high domestic consumption have manifested favorably to the growth of the sector. According to Schultz, D.E. (1996) and others, the market of 21st century will be dominated by multimedia and multi-channel, with customers having a wide range of media and channel options to obtain goods and services. The factors responsible for the development of online retail sector in India can be broadly summarized as:-

a) Liberalisation of the Indian economy has led to opening up of online market for consumer goods and has helped the Multinational Corporation like e-bay.com and Amazon.com etc. to make significant inroads into this vast consumer market by offering a wide range of choices to the Indian consumers.

b) The Internet Revolution is making the Indian consumer more accessible to growing influences of domestic and foreign retail chains. As India continues to get strongly integrated with the world economy, riding the waves of globalization, the online retail sector is bound to take big leaps in years to come.

c) There is a shift in Consumer Demand for foreign brands.

d) Rising in Income and improvements in easy accessibility are enlarging consumer markets and accelerating the convergence of consumer tastes.

e) Availability of low-priced smart phones and 2G/ 3G/4G networks has enabled internet access everywhere, even in the rural areas.

f) Rise of the middle-class people who have less  time and are more prone to do everything on their smart phones, even shopping, is enhancing e- retailing.

g) Free home delivery, deals, discounts, and offers of such have given a boost to this industry.

In 2014, nearly 75% (2.1 billion) of all internet users in the world (2.8 billion) live in the top 20 countries. The remaining 25% (0.7 billion) is distributed among the other 178 countries, each representing less than 1% of total internet users. China, the country with largest share of world internet users (642 million in 2014), represents nearly 21.97% of total, and has more internet users than the next three countries combined (United States, India, and Japan) while India shares only 8.33% of world internet users which is depicted in Annexure 4. Among the top 10 countries, India is the one with the highest yearly growth rate of internet users (14%) but also with the lowest penetration rate of 19.19%. China has internet penetration rate of 46.03%. At the opposite end of the range, United States, Germany, France, U.K., and Canada have the highest penetration rate, over 80% of population in these countries has an internet connection.

Scenario of E-retailing in India is depicted through the following figure

Figure 1: Total retail sales and retail e-commerce sales in India 2013-2018

In the above figure, we see that till 2015 the share of retail

e-commerce sales has not touched even 1% of the total retail sales in the country, hence indicating the slow rate of increase of e-commerce retailing or e-retailing in India.

But the rate is anticipated to increase continuously. Retailing in India is one of the pillars of its economy and accounts for about 22% of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. With the increase in computer literacy rate, vast availability of cheap smart phones, internet penetration into the Indian retail market and change in socio-economic-demographic conditions in the various segments of Indian society, Indian retail industry is moving into a new direction. This can be depicted through the

Following figure- Figure 2: Internet User Base in India 2003-2019

Research Methodology

The study is based on primary data collected through a structured questionnaire. A questionnaire was filled up after interaction and explaining the objectives of the study. The survey was conducted with the sample size of 100 respondents, out of which 38 are students followed by 25 employees, 20 self employed, 15 Housewife’s and 2 others

The data was collected in their premises, where they are free to share the actual facts and willing to respond to the questions. The data has been collected from Nagpur city with different age group and profile of customers who are already having the experience of online shopping. Information gathered from primary data is tabulated and formation of graph was analyzed through MS Excel.

Data Analysis:

From the selected sample 38 % people who having their age less than 25 Yrs. It is the tendency of youth for latest fashion always move out for maximum options and 44 % whose age in between 25-35 Yrs, young people who are busy to build the carrier and spending more than 12 hours for making their carrier bright are lacking with the time preferring the Online shopping for their purchases. Near to 60 % respondent are having their household income more than 1 lack per month.

Graph 1 shows that 27% respondents are recently enter in this online shopping and 33% respondents are doing online shopping from last 6 months. It means recently the online shopping fever entered in Nagpur market, may be the one of the reason is that, aggressive promotions are doing by the Internet marketer. And only 11% respondents are doing online shopping from more than last 2 yrs. It is come to know that recently Nagpur’s customers are attracted for online shopping. It’s a good sign for the Internet marketer to focus on this target market.

Graph 2 shows that discount influence the customers towards the online shopping 34 % responded are attract to do the online shopping mainly housewife’s and student group attract more with the bumper sale or discount offers. Recently it seen that Amazon, Flipkart, eBay like online traders offers the schemes in every interval to attract the customers, with the figure of NDTV News with the online sale of Flipkart on 13th Oct 2015, more than 10 Lacks products are sold out in just 10 Hrs. It concluded that Nagpur’s peoples are attracted more with the discounts & offers. 32% respondent are choosing the online shopping just due to time constraints, these 32% respondents are mainly employee, who are working in private organization and always carry the pressure of maximum work load and results. Self employed people are suffering from corporate competition and need to engage maximum times in their enterprises. Youth always searching for the latest fashion and with the figure of 23% respondent it is clear that just for the reason of latest fashion, they are selected online shopping. Big Brands normally selling their products through cut down the Inter-mediator’s margin and sell out through direct vendor. It is also help to Big brand to clear their dead stock or non demanded products.

Graph 3: One of the major universal drawbacks of online service is their disclamation mark that “May be actual product varied with the shown picture”, online marketer always keep all rights with them and that’s why Nagpur’s 46 % respondent say that they having fear of not getting the delivery of ordered product and may be varied with order product and 21% respondent says that actual description, quality and other features may not up-to the marks. But, all online traders continuously promoting about the quality assurance and free return back guarantee. It’s tendency of Nagpur’s customers, personal feel of products help them to create the demand and boost the quality assurance because picture not sufficient to crate the faith of quality of product that why maximum customer only go with branded products while on Online shopping.

Graph 4: shows that 57% respondent believes that branded products add values in their lifestyle and this is one of the main reasons for online shopping. All big online stores offers branded product with reasonable price and frequently offering discount and Mahasale offers. With the avoidance of the Inter-mediatory, the cost of selling expenses is reduced and the same cost transfer to the customer in one or two level of distribution. Mostly Online retailer purchase fresh or clearance sale products in quantity direct from company. In this case online retailer transfer the price benefit to the customer and other point of view customer also get branded products is very cheap rates. 


This study tried to explain and evaluate the latest marketing and technological phenomenon called as the Internet shopping (E-Retailing). As mentioned in the introduction of this paper, the entire scope of consumer behavior and marketing research has to change and forge a new direction to put this new issue in its proper perspective. The answer for the question; Will the traditional consumer behavior theory and research are altered? Yes it is a big ‘Yes’. The simple pointer towards this is the almost complete redundancy of purchasing journals just due to the simple fact that they are available free of charge on the Internet. It will be quite interesting to observe whether the cross cultural differences between different profile and age group of the customers. Though this work it is clear the fever of online shopping is also enter in the Nagpur and maximum peoples are like to purchase or made his purchases through E-Retail even they have fear about quality assurance & standard services not deliver by courier people. I am one, who always faces that rude courier boy, when he comes to deliver the product. Universal E-Retail theory accepted in Nagpur Market also, discounts & time constraint is main reasons for going with online shopping.


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