{"id":1988,"date":"2014-11-20T12:34:00","date_gmt":"2014-11-20T12:34:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=1988"},"modified":"2022-09-02T12:37:55","modified_gmt":"2022-09-02T12:37:55","slug":"booming-e-tail-sounds-death-knell-for-electronic-retailers-across-the-country","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/booming-e-tail-sounds-death-knell-for-electronic-retailers-across-the-country\/","title":{"rendered":"Booming e-tail sounds death knell for electronic retailers across the country"},"content":{"rendered":"\n<p> <i>Rahul Wadke\/Rajesh Kurup, The Hindu Businessline<br>\n              Mumbai, 20 November 2014<\/i><\/p>\n<div class=\"row\">\n              <div class=\"col-sm-4\"><p> <img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/09\/booming-etail-electronics.jpg\" class=\"img-fluid d-block lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/p><\/div> \n                <div class=\"col-sm-8\"><p>Till a couple of months ago, Peshwa Acharya used to call up Shailesh \n                Bhai, owner of a nondescript electronics shop Maruti Infosystem \n                at Lamington Road here to buy mobile phones or laptops.<\/p>\n              <p>He would get discounts as high as 12 per cent and home delivery.<\/p>\n              <p>But of late, he makes nearly half of his purchases through e-commerce \n                sites; the reason: transparency in pricing, array of choices, \n                convenience of buying and even higher discounts.<\/p><\/div><\/div>\n              <p>&#8220;People like me will move over completely to online buying \n                as India is now leapfrogging to e-tailing much faster than expected,&#8221; \n                said Acharya, the founder of focused marketing firm &#8216;Think \n                As Consumer.&#8217;<\/p>\n              <p>This has already sounded the death knell for traditional electronic \n                retailers in areas such as Lamington Road in Mumbai, Nehru Place \n                in Delhi, Canning Street in Kolkata and Ritchie Street in Chennai.<\/p>\n              <p><b>Plummeting sales<\/b><br>\n              <\/p>\n              <p>Vendors lamented that their sales have dropped by more than 35-40 \n                per cent during the past three months as online market firms went \n                on a marketing blitz.<\/p>\n              <p>&#8220;Our bottomline is being hit badly, and sales are dipping \n                by the day. How these companies (online firms) manage to sell \n                below dealer prices is not clear. If this continues, we (retailers) \n                will have to close shop in the next five years,&#8221; Chintan \n                Zangda, owner of Computer Section in Mumbai, said.<\/p>\n              <p>&#8220;Our only recourse is to approach the Competition Commission \n                of India, for violation of the Competition Act,&#8221; he added.<\/p>\n              <p>There are an estimated one lakh small retailers in the consumer \n                durables, information technology and telecom retail space in India, \n                which is worth Rs. 50,000 crore.<\/p>\n              <p>The plight of retailers elsewhere is similar. &#8220;I am thinking \n                of quitting this and getting into something else,&#8221; Basavraj, \n                a computer trader from Bangalore said, adding his turnover has \n                plummeted to about Rs. 1 crore today from Rs. 5 crore earlier.<\/p>\n              <p><b>Grim scenario<\/b><br>\n              <\/p>\n              <p><b>E-commerce firms are flush with cash from multiple rounds \n                of investor funding and are battling for market share. Here, discounted \n                price is the prime differentiator, said Devangshu Dutta, Chief \n                Executive of consulting firm Third Eyesight.<\/b><\/p>\n              <p>&#8220;In our marketplace, products are sold in compliance with \n                the laws of the land. We clearly tell our sellers to sell products \n                in accordance with applicable laws,&#8221; a spokesperson for India&#8217;s \n                largest online retailer Flipkart said.<\/p>\n              <p>&#8220;All authorised dealers and middlemen can sell their products \n                on online platforms,&#8221; is what Flipkart has to say on the \n                conflict between retailers and online marketers.<\/p>\n              <p>For online firms, however, business is not as easy as it seems.<\/p>\n              <p><b>&#8220;All the major e-tailers are not just acquiring customers \n                at high costs, there is also a huge customer churn and little \n                loyalty or stickiness,&#8221; Dutta added.<\/b><\/p>\n              <p>All said, e-commerce is a reality that cannot be wished away, \n                at least by retailers.<\/p>\n              <p><i>(Published in <a href=\"http:\/\/www.thehindubusinessline.com\/features\/smartbuy\/booming-etail-sounds-death-knell-for-electronic-retailers-across-the-country\/article6618701.ece\" target=\"_blank\" rel=\"noopener\">The \n                Hindu Businessline<\/a>)<\/i> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rahul Wadke\/Rajesh Kurup, The Hindu Businessline Mumbai, 20 November 2014 Till a couple of months ago, Peshwa Acharya used to call up Shailesh Bhai, owner of a nondescript electronics shop Maruti Infosystem at Lamington Road here to buy mobile phones or laptops. He would get discounts as high as 12 per cent and home delivery. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1988","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Booming e-tail sounds death knell for electronic retailers across the country - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/booming-e-tail-sounds-death-knell-for-electronic-retailers-across-the-country\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Booming e-tail sounds death knell for electronic retailers across the country - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Rahul Wadke\/Rajesh Kurup, The Hindu Businessline Mumbai, 20 November 2014 Till a couple of months ago, Peshwa Acharya used to call up Shailesh Bhai, owner of a nondescript electronics shop Maruti Infosystem at Lamington Road here to buy mobile phones or laptops. 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