Market Research on Online Shopping

The purpose of this study is to analyze the growth of online shopping in the Indian market in the last 4 years. The study broadly classifies online shoppers across various age groups, income categories, education qualification and job profile. A sample of 50 respondents were taken into consideration from Mumbai. Statistical techniques was applied to trace the respondents views about online shopping and demographic characteristics such as age, gender and occupation.

Introduction

Fashion and lifestyle are the most searched for categories globally and India is no exception. It is one of the fastest growing segments in the e-commerce business, in India and in more mature markets abroad. In fact, experts say apparel is the largest-selling category in the online retail bouquet in the US and UK. Online shopping in India which is at a nascent stage is poised to witness significant growth in the next few years, with the industry likely to touch $34.2 billion by 2015. Online shopping in India is gaining momentum every day. According to Google’s latest survey online shopping in India grew by 128% in the year from 2012-2013 and expected to grow the same in coming years.

As per an Industry Research report on Indian Online Retail Market Analysis (www.rncos.com, 2012), It is estimated that the online retail market will grow at a compound annual rate of around 39% during 2013 to 2016. It is estimated, that around 27 million in India are active mobile Internet users. Currently 4 percent are buying products, through mobiles and in next four years time, it can go up to 20 percent.. Take the Gurgaon-based Jabong.com for instance. In the five months since its launch, the site is the most trafficked e-com site in India (as per Google.com traffic stats) beating superstars such as Flipkart.com.

Establishing a store on the Internet, allows for retailers to expand their market and reach out to consumers who may not otherwise visit the physical store. The convenience of online shopping is the main attraction for the consumers. Unique online payment systems offer easy and safe purchasing from other individuals. Electronic consumers exhibit different buying behaviors such as; cart abandonment. The benefits of shopping online also come with potential risks and dangers that consumers must be aware of. In the future, we can expect online stores to improve their technology tremendously, allowing for an easier and a more realistic shopping experience.

Some of the common reasons listed for the growth of online shopping sites include assortment under one virtual ‘roof ‘ (Jabong lists products of more than 400 brands); ease of comparison – which helps you browse through thousands of products in no time and compare prices across brands; home delivery and a great return policy and reliable customer service. The significant growth in online activity in India reflects that the evolving nature of the market and the Indian consumer. Opportunity in e-commerce are huge because of a large population base, changing consumer lifestyle and lack of infrastructure for bigger brick and mortar stores. With new ecommerce sites coming up every day it is important that as a consumer one should protect himself from online fraud. Also since shopping from the comfort of home is fun one should consider making maximum use of it. Online shopping has many benefits including comfort, numerous coupons, heavy discounts and offers.

The only qualm that first-time buyers have is this: what if the top or dress I see online doesn’t look good on me? The e-com sites are addressing this with a lot of seriousness — by making sure the displays on their sites are clear and can be magnified, by providing size charts and international sizing guides, and by putting in place customer-friendly return policies. If you don’t like what you get, you can return it free and get your money back, unlike in the offline retail sector where you get in-store vouchers. This is a huge confidence booster for buyers.The sharp spike in online shopping volumes last year ‘is being described as the tipping point for e-commerce in the country.

Review of Literature

Method

1) Research Design

The design we have chosen for our research is “Cross Sectional Descriptive Research”. This form of research method involves observation of all of a population, or a representative subset, at one specific point in time. Like in our project, we have taken a minority of the Indian consumer population as a representative subset and studied them at the current point of time to prove the recent growth of online shopping in the country.

2) Research Technique

The technique we have used for our research is Surveys. Keeping in mind our topic and the audience, survey was the best suited research technique. A simple, well framed and precise questionnaire was handed out to the respondents to fill. The questionnaire is attached alongwith.

3) Sample

The sample size taken was 50. The 3 main factors that we have considered in the sample selection are 1) Age 2) Gender 3) Occupation-Working, Non-working. We divided the sample size into 2 main age brackets; the first being individuals from the age of 18-35 and the second age bracket from the age of 35-50. The sample of 50 respondents were middle class (or above), upwardly mobile, urban Mumbai residents.

Data Analysis and Interpretation

Results and Discussions

Conclusion

Limitations and Suggestions

Bibliography

‘ Online shopping in India could touch $34 bn by 2015’- Firstpost.com ‘Indian Online Retail Market Analysis’- www.rncos.com (Industry Research Solutions) Online Shopping in India rises despite slump- Business Standard 2.2 Million Internet Users in Urban India Actively Buy Online-Times of India The Great Indian Online Shopping Guide-www.technovalley.in

Online spending by Indian consumers up: Survey: Deccan Herald Non-metros spur online shopping growth in 2012- NDTV Profit
Survey: 70% Rise in online shoppers across India- BizReport
Online Shopping is not yet popular in India- openmarkets.in
Online shopping in India could touch $34 billion by 2015-Financial Express Online shopping vs instore shopping-Essay, studymode.com
Online shopping: A Study- www.onlineshoppingpaper.blogspot.in Beyond buying: Motivations behind consumers’ online shopping cart use. Journal of Business Research.

Online shopping Market and Forecasts, Feb 2013- www.reportlinker.com