Catalogue
retailing, online shopping and dedicated television channels, alternative
retail channels are rooting well.
The biggest chunk of
business still comes from online shopping, which started soon after Internet
arrived in India.
But it is only now that
things are getting big with retailers getting on to the online platform. As the
credit-card base widens and cash on delivery becomes popular, business here
picking up.
Industry players estimate
that e-commerce (minus the travel segment) should touch Rs 1,000 crore within a
year.
With no rental and
maintenance costs, retailers find it viable to offer discounts online without
shrinking margins.
Giving competition to
Rediff and e-bay are pioneer retailers such as Pantaloon and Shoppers Stop,
with the latter planning to go online in a few months.
Future Bazaar, Pantaloon
Retail’s virtual retailing unit which started last June, is doubling its sales
month-on-month now and sales are expected to touch $20 million by the time it
completes one year of business.
Hypercity has online,
catalogue and physical retail outlets. Future Bazaar is now opening smaller
format retail centres called Big Bazaar Unlimited, where people could go through
catalogues and use kiosks to order.
HomeShop 18, another TV18
venture, is present online as well as with catalogues and now has gone a step
further. It has started a 24*7 television channel just for shopping.
Raman Gulati, VP, finance
and operations, HomeShop 18, says his venture will change the way people shop
in India.
“Convenience is just a
call away. Imagine sitting in an air-conditioned room and shopping, while
watching television,” Gulati said.
The revenues from a
channel are expected to be five times that of a online portal. Considering the
penetration of television, once the distribution is set up, the retailer can go
all out to target their consumers sitting at home.
They can offload old
inventory, advertise about new products, take showcasing and demonstrating to a
new level.
However, alternative
channels may not be able to provide the sort of experience that malls can. |