Consumers Attitudes towards Internet and Brick and Mortar ...
Brick and mortar vs ecom
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Transcript of Brick and mortar vs ecom
Agenda
• What is Brick and Mortar model?
• When and where brick and mortar model is used?
• Pros and Cons of offline/traditional store
• E-commerce & E-Business
• When and Where online model is used?
• Pros and Cons of online store.
• Online Model Vs. Brick Mortar
• Facts and figures
• Case Study
• Conclusion
What is Brick and Mortar Model?
• A traditional "street-side" business
• Face to face with customers.
• Physical presence (rather than virtual or online) such as bricks and mortar.
• Example: The local grocery store
3
When and where brick and mortar model is used?
• Where online retail services are not available
– e.g. small cities.
• People are not in touch with technology
• When products are of lesser amount Consumer does not want to pay delivery charges.
• Needs the product on urgent basis
• Customer wants to check the product before buying and does not trust online retailers.
Pros and Cons of offline/traditional store
ProsNumerous optionsFace to face communicationTouch and feel productDirect and less confusionEasy to get or return the product
ConsNot all stores accept all modes of payment.Parking issues.Price issues.Wait in queue at the cash counter
When and Where online model is used?
• Short of time
• Discounts for branded products
• Ready to wait for the product to get delivered
• Quick decision of buying
– compare the prices, quality of variety of products
Pros and Cons of online store
Pros
Convenience.
Better prices.
Variety of products.
Discounts.
Send gifts
Fewer expenses
Comparison of prices
Compulsive shopping
Buy old or unused items at low prices
Cons
Physical feel of items missing
Out of stock problem.
Delivery risk.
Mishandling while shipping.
Shipping charges.
Online IS issue.
Online fraud.
Dull shopping experience.
Spyware on your PCs
Online connectivity issues.
E-commerce Growth
<1% of the total retail market in India
The Indian E-commerce market
scale was evaluated around $16
Billion in 2013 and is expected to
reach $56 Billion by the fall
of 2023
The growth rate has touched 85% mark till now and in next ten years, it is projected to acquire 6.5% of the total retail market if India.
Clicks v/s Bricks
• E-commerce sales have grown to about 6% of total retail sales (excluding gasoline and food services)
• Brick and mortar retailers still control between 94% and 97% of total retail sales.
Clicks v/s Bricks
Brick-and-mortar stores account for the bulk of India's $600-billion retail market, a majority of which is unorganized.
E-commerce's share is still a minuscule 3-4%.
Click’s aren’t hurting bricks ,for now
Brick and mortar model stores are feeling heat from e-commerce players only in few categories, but that does not mean they can
become complacent.