Case Study of E-Commerce
1. Introduction
The e-commerce has transformed the way business is done in India. The Indian e-commerce market is
expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much growth of the
industry has been triggered by increasing internet and smartphone penetration. The ongoing digital
transformation in the country is expected to increase India’s total internet user base to 829 million by
2021 from 445.96 million in2017. India’s internet economy is expected to double from US$125 billion as
of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce. India’s E-commerce revenue is
expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51
per cent, the highest in the world.
2. Consumer Behaviour
It is found that since online marketing is a new concept it is taking time for people to trust these sorts
of shopping activities. At present people feel that there are major security concerns in online transactions
and do not feel comfortable doing the shopping online. They feel that there are high risks of fraud and
hoax in online business. Online advertising is just beginning to root itself in the business world of INDIA
because of which not all the products are available. Even famous brands place only selective items online
and hence there are fewer choices available on the internet. Since it’s a new concept people are still not
totally used to it because of which they feel uncomfortable shopping online. They feel that the product
would be tampered with and the quality wouldn’t be the same. India is a developing country where major
chunk of its population live in rural areas and hence do not have access to the internet. By this a major
portion of the target market is lost. People in India prefer going to the malls and looking, touching various
items before purchasing them. They are not quite willing to give up on shopping physically so even if
they have access to the internet.
Below are major Changes which we observer in consumer behaviour with e-commerce
Less time to spend in traveling to places and shopping
Increase in expenditure for luxury items
Increased availability of global products making Indian customer conscious of quality along with
price
3. Marketing Methodologies
The global E-commerce market is still in the evolving phase. With the adaptation of technology in the
developing economies customers are now becoming more comfortable with online shopping. Changing
government regulations and entry of some biggies like Amzaon, Flipkart, Ebay, Snapdeal and Alibaba,
various other start-ups is driving growth in the industry. Indian government has allowed 100% FDI in
marketplace setup which will help the companies in their expansion and further penetration in the current
market.
4. Marketing Mix
