The E-Presence of newbies.
By Shreshth
( Editor Derik Times)
Xiaomi - About 40 minutes. That is all it took for Chinese mobile maker Xiaomi to sell 95,000 Mi3 phones in India through ecommerce site Flipkart in six flash sales, signaling the growing power of online retail in the country.
Why. E-commerce in India, with its over 250 million internet users and 900 million mobile subscribers, is only going to expand further. Indian companies have stopped using the traditional retail route because the overhead costs gets passed onto the customer.
Future Impact. Realising this, even traditionally offline retailers such as Aditya Birla-led Madura Garments and Kishore Biyani's Big Bazaar are choosing to enter the online terrain. About 30% of Madura Garments sales come from online sales via sites such as Flipkart and Jabong.
Gujarat-based Arvind Limited, which markets brands such as Arrow, Lee, Wrangler and Tommy Hilfiger in India, has started its online venture Creyate. The site lets users customize shirts and jeans online. However, many brands are shying away from setting up their own online distribution channels. Some who entered the online segment years ago are reviving their web strategy. Mobile retailers entered the online space eight years ago but re-launched its online platform last year.
How Firms are shifting to the E-World of commercializing
The Tatas, Biyanis and Birlas have already made investments of over $2 billion (Rs 12,000 crore) each in retail. They can garner enough cash pile to take over online players such as Flipkart and Amazon.The Tatas-led Croma set up its online store CromaRetail.com two years ago. It now earns revenue of Rs 1.5 to Rs 2 crore per week. Ecommerce is also a factor in the offline expansion strategy in India's $518 billion (Rs 31.5 lakh crore) retail sector. Aditya Birla-led Madura Garments, which owns brands such as Louis Philippe and Van Heusen, has launched TrendIn, an ecommerce portal that supplies across India. Even small traders are now ordering on this channel.
Online retailing, both direct and through marketplaces, is expected to touch Rs 50,000 crore by 2016, according to ratings agency Crisil.
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