The Growth of Online Shopping

THE GROWTH OF ONLINE SHOPPING MENTORED BY- MR SUHAIL ANWAR NIFT, NEW DELHI CREDITS- VAISHALI RAI SEMESTER III BACHELOR OF FASHION TECHNOLOGY NIFT, NEW DELHI 2011-2015 DATE- 21 AUGUST, 2012 CERTIFICATE â€Å"This is to certify that this Report titled â€Å"THE GROWTH OF ONLINE SHOPPING† is based on my, original research work, conducted under the guidance of Mr. Suhail Anwar towards partial fulfillment of the requirement for award of the Bachelor Programme – Technology, of the National Institute of Fashion Technology, New Delhi Center. †Signature of Researcher Vaishali Rai BFT-III NIFT, New Delhi Signature of Mentor Mr. Suhail Anwar NIFT, New Delhi ACKNOWLEDGEMENTS Any accomplishment requires the effort of many people and there are no exceptions. The report being submitted today is a result of collective effort. Although the report has been solely prepared by me with the purpose of fulfilling the requirements of the course of BF-Tech (Bachelor of Fashion Technology ), there are many helping hands behind it who have guided me on my way. My sincere gratitude goes to Mr.Suhail Anwar, my mentor for the project, for providing me with his valuable knowledge and guidelines so as to bring out this report in a proper manner. I would like to express my gratitude towards my parents for their kind co-operation and encouragement which helped me in completion of this report. Lastly, I would like to say that this report has been prepared by me and any mistake/error in the report is solely my responsibility. Vaishali Rai BFT-III NIFT, New Delhi CONTENTS 1. INTRODUCTION 2. CURRENT ONLINE SHOPPING SCENARIO . EXISTING TRENDS IN ONLINE SHOPPING- GLOBAL AND INDIA 4. WHAT THE FURURE HAS IN STORE 5. REFRENCES INTRODUCTION When it comes to today’s Gen Z, apparently the internet generation (and the most lazy gen of all), almost everything right from food to things in our bedroom is somewhere or the other the result of the tech savvy and internet friendly behavi or of ours. A click and we have the dominoes pizza sizzling hot on our doorstep, a click and we have the latest gadget in our hands†¦ what else do we need?Dad’s credit card of course but that is not a problem at all. It’s like a new trend has started, the â€Å"CLICK has gone WILD† and online shopping†¦ wilder!!! A report by Forrester, a leading research agency indicates that online shopping has recently seen an upsurge in its realm owing to easy access to Internet, the global IT boom which has facilitated an exemplary growth of all IT – related infrastructure, and the ridiculously busy schedules which leave us too drained to take the trouble of driving to a store to buy what we need.While it’s still nice to stop by a store to touch and see products, the convenience of online shopping can’t be beat. To be precise there are quite a few reasons behind this upsurge, which are mentioned below- * The e-tailing sites have been pumped wit h cash for expansion, and there’s now a frantic race afoot to try and scale up as quickly as possible. * The reasons for this surprising consumerism are also attributed to several socio-economic reasons including high disposable incomes and greater focus on status and reflection of the private label of all consumer goods. Increase in number of people using internet and their growing belief in it due to consumer friendly security gateways etc. * The modern infrastructure and the ease of technology offered is also one of the biggest reasons for the growth of this trend. Of course, India, home to people who are huge fans of sales, discounts, etc has the gaining popularity of the coupon sites sharing the task of popularizing the growth of online shopping trend in the country. CURRENT ONLINE SHOPPING SCENARIO- MARKET AND THE CONSUMERSThe biggest hindrances to online shopping in the past were the high incidence of identity theft, lack of consumer-friendly site interface, and the do t-com bust. But despite these drawbacks, with the help of computer programmers' improved software and increased security, investors and businesses rebuilt and redefined online marketing. Today, online stores are in the millions, with shops catering to both businesses and direct consumers. * Currently Europe is the largest market for online shoppers in the world. And when it comes to nations, US and UK top the charts. Wherein when it’s the fastest growing regions of online shopping, the APAC region is gaining high popularity, both in terms of market and the consumers. Recently, it was reported that Asians, particularly Indians and Chinese, are changing their way of shopping and are going online. There are more ‘High Net Worth' consumers within China than the whole of Europe put together. Japan leads the global mobile shopping sector due to the existing infrastructure for fast and innovative delivery of technology customized for personal consumption.When the rest of the w orld showed consumers cutting back on spending, some of the countries of the APAC region, such as India, China and Vietnam, showed a surprising rise in sales values to the tune of 15 percent in comparison to the rest of the world. India alone saw the growth of 18 percent in its online shopping sector. EXISTING TRENDS IN ONLINE SHOPPING- GLOBAL AND INDIA In the global markets, the move is towards online portals, while in the Asia- Pacific regions, especially India, there is an equal mix of traditional or wet markets for fresh produce, followed by the online format for lifestyle products, clothing and electronic goods.Trends in Global Online Shopping: * 92 percent of Consumers use websites to compare prices * 76 percent of Consumers use websites to access and print coupons * 75 percent of Consumers purchase at least 1 products or services per month via the Internet * 26 percent of Consumers spend at least $500 per month buying goods/services via the Internet Trends in Indian Online Sh opping: * In the next one year, at least eight out of ten Indian consumers will make online purchases At present, a little more than a quarter users reveal that they spend 11% of their monthly shopping expenditure on procurements online. * 71 percent Indians trust recommendations from family when making an online purchase decision. Recommendations from friends stand at 64 percent and online product reviews at 29 percent. * Almost 50% Indian consumers’ use and trust social media sites to help them make online purchase decisions * In the next 6 months or so, most buyers will purchase books (41%), airline tickets (40%), and electronic equipment such as TV, Cameras (36%) online. The trend observed is that while shopping, most buyers ideally shop from websites that allow them to select products from many different stores. WHAT THE FUTURE HAS IN STORE Global business-to-consumer e-commerce sales will pass the 1 trillion euro ($1. 25 trillion) mark by 2013, and the total number of I nternet users will increase to approximately 3. 5 billion from around 2. 2 billion at the end of 2011, according to a new report by the Interactive Media in Retail Group (IMRG), a U. K. online retail trade organization.The study estimates that business-to-consumer e-commerce sales in 2011 increased to 690 billion Euros ($961 billion), an increase of close to 20% from a year earlier. IMRG estimates that growth rates in countries like US and UK (currently the market giants) will be approximately 10-15% a year. But with China’s e-commerce sales growing more than 130% in 2011, it is only a matter of time before the Asian giant becomes the single largest market in the world. IMRG, is forecasting that France, Italy, Spain, Russia, Turkey and Poland will be the fastest-growing markets in Europe.It also anticipates substantial growth in Latin America, led by Brazil and Mexico, and the Middle East, led by Israel and the UAE. Online retail in India is on fire and will be on it in the n ear future. India to be the fastest growing E-Commerce Market in Asia-Pacific region and its online market is set to grow to $8. 8 Billion by 2016. According to the latest research by Forrester, a leading global research and advisory firm, the e-commerce market in India is set to grow the fastest within theAsia-Pacific Region at a CAGR of over 57% between the years 2012-16. As per the report, while compound annual growth rates in the mature e-commerce markets of Japan, South Korea, and Australia will run 11% to 12% over the next five years, in the rapidly growing markets of China and India, these growth rates will be 25% and 57%, respectively. This report brings out the fact there has been a stable rise in the sector of online shopping and this rise will continue to take place in the future also.The trend of online shopping is here to stay. REFRENCES – http://www. businessreviewindia. in/marketing/web/online-shopping-trends-in-india (Visited on 12 August, 2012) http://www. bi gcommercereviewsite. com/online-shopping-statistics-is-your-offline-business-suffering/ (Visited on 12 August, 2012) http://EzineArticles. com (Visited on 17 August, 2012) http://www. asiaonlinemarketing. com/online-potential-in-asia-pacific/ (Visited on 17 August, 2012) http://www. retailresearch. org/onlineretailing. php (Visited on 16 August, 2012)