Studying in US gave me opportunity to see the other side of world. The place from where all technology and concepts are exported to all over the world. As I come from India, I can see many things back home which are direct replica of systems in US. This created many questions in my mind. The systems which look very practical and obvious in US are not at all practical in India. But still companies refer best practices from abroad and implement in India without any modification.
Online retail. One of the biggest thing in US. Online retailers are selling billions of dollars worth of goods. Selling every possible things that can be sold. Many people want to replicate the model in India. They are banking on the calculations that if 400 Millions US citizens can buy Billions of dollars worth goods online, 1 Billion Indian citizens few years down the line will buy goods worth hundreds of billions. But the situation is different as I see. Here buying online very helpful and convenient. The stores are miles away and you need to drive down to store to buy the goods. Most of the stores store standard furniture, standard designs. So online retail is all about convenience and comfort for customer. When Indian online retailers are selling online they have to keep in mind that customer will always check online and buy local. Customer want’s to touch and use the product before he buys it. So people will buy online only if its having large price difference some reward point deals, some bonus point redemption deals. Many will disagree and say online site revenues are growing rapidly but you have to look at what is sold. Rail tickets, air tickets, hotel reservations, car bookings, music CDs, Standard Electronics and list almost ends here. These products need not be handled or checked before you get them. Will you ever buy shoes online. Or will you ever buy a clothing online I guess not.
For India model should be hybrid, I think online retailers should appoint franchisees in local markets, stores that will be used only to display products as car showrooms. One piece of everything that is to be offered. Once customer visits, reviews and decides to buy the product then it gets transferred to online model. Showroom owners gets some commission and online retailer sales the actual product. This will not only help the transition in mindset but will also give customer confidence in website and products that it sells. Current model is targeting only gen next. People who are comfortable buying online but hybrid model will allow all customers to participate in online buying. Also Biggest worry in India is quality and whom to contact if there is any problem. Customers are afraid to order from unheard websites as they suspect frauds this makes entry very difficult. Hybrid model will help in solving this problem.
There are many things similar in the retail industry which I observed. I will post about them at later date.
Signing off
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The Hybrid model advocated by you seems practical and the only possible alternative in India. Good show. Keep Posting!
ReplyDeleteFantastic idea, Nikhil. When I was a child we would look in the Sears Roebuck catalog (a big, thick paper book) and place our order, then go downtown LA to pick it up. And if we didn't like the item, we could get in another line and return it right there. Meanwhile we would get some popcorn and maybe buy something else upstairs, but usually not.
ReplyDeletecheck online and buy local, yeah thats exactly what happens here.
ReplyDeleteI had heard @ some appareals store here trying that out. They were selling printed shirts. I forgot the name but I think it didnt work out very well.
Focusing on the starting note you used; the copy paste part, I think it just doesn't happen in business techniques but also in business etiquttes. Nekc tie for an example, it started out as a slick and nifty replacement for a muffler or a stole they must wear in cold climates. In India its just totally impractical but still we have almost same formalwear code as there.
and yes we have centralised ACs here too but Indians work in much warmer workplaces, indoors or out.
and this copying is also getting in media lately. Had it been limited to so called 'Inspiration' in our music and movies, then it was no big worry. But not news networks...making and selling news isn't going to help society much