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Auto Accessories Garage is among the quickest rising on-line retailers of automotive elements and equipment. Not surprisingly, e-commerce penetration was lowest among retailers of quick-moving shopper goods at just 1.9 % of sales. In the aggregate, the 132 FMCG retailers accounted for over half of Top 250 firms and more than two-thirds of Top 250 retail income. As many globally minded retailers have already realized on the ground, competing in opposition to effectively-entrenched home gamers is difficult. In case of attire and accessories, although, the image appears to be somewhat different with traditional retailers forming solely a fifth of the seller base.
We imagine that is reflective of the stage of on-line penetration of the completely different classes —books were the first objects to sell on-line in India and is comparatively extra mature; in contrast, online gross sales of attire and equipment continues to be very new with lots of the vendors selling on-line for less than 2 years,” mentioned the report.
Despite their number and dimension, the European (2.6 %) and North American (3.1 p.c) retailers posted the bottom composite growth charges in 2013. Retailers headquartered in rising markets accounted for almost all of the Fastest 50 in 2013 (29 firms). They prefer quick response and instant gratification, and retailers will cater to that.
For instance, for Flipkart, 30-40% of its distributors are pureplay on-line retailers, whereas 50% are traditional retailers now promoting on-line, mentioned Ankit Nagori , senior vice-president, Flipkart. Competition to be among the Top 250 is keen at the backside of the listing as most retailers usually are not mega-sized firms. The 145 Top 250 firms with e-commerce operations generated 6.2 p.c of their combined retail revenue online in 2013. Consumers exterior of tier I cities are driving the expansion of on-line retail in India.
At … Read more