CHAPTER 1

EXECUTIVE SUMMARY

1
 Executive Summary

The Indian retail market has undergone a significant transformation

with the rapid growth of e-commerce over the past decade. This
study explores the impact of online shopping platforms like Amazon,
Flipkart, and emerging players on traditional brick-and-mortar retail
businesses in India.

E-commerce has expanded consumer access to a wider range of

products, competitive pricing, and convenience, reshaping shopping
habits across urban and rural areas. Factors such as increased internet
penetration, the proliferation of smartphones, secure online payment
systems, and government initiatives like "Digital India" have
accelerated the growth of the online retail sector.

Traditional retail, particularly small and unorganized businesses, has

faced challenges due to the shift in consumer behavior. However, the
market is also seeing trends like the rise of "omnichannel" strategies,
where physical stores integrate digital platforms to enhance customer
experience. Large retailers are increasingly adopting hybrid models
to remain competitive.

While e-commerce has introduced new opportunities such as broader

market reach and lower operating costs, it has also intensified
competition and pressured profit margins. The impact has been
mixed: while some traditional players have struggled, others have
adapted successfully by embracing technology.

The overall finding suggests that e-commerce is not replacing

traditional retail but reshaping it, leading to a more dynamic,
competitive, and consumer-driven marketplace in India. Strategic
collaboration between online and offline models is expected to define
the future of the retail industry.

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 CHAPTER 2:
INTRODUCTION

3
 Chapter 2: INTRODUCTION

Impact of E-commerce on retail market in India

The retail sector has been significantly impacted by the growth of e-

commerce. Online merchants are posing a serious threat to traditional
brick-and-mortar shops since their sales are expanding considerably
more quickly than those of physical businesses. Online sales increased
by 44 percent in 2020, since in sales dropped by 14%, according to a
survey by Digital Commerce 360. Convenience is one of the main
factors driving e-commerce growth. Consumers can now use their PCs
or mobile devices to shop anytime, anyplace. As a result, there has been
a change in consumer behaviour, with more consumers favouring
online shopping over going to physical businesses. The accessibility of
a greater choice of products is another element promoting the
expansion of e-commerce. Internet shops may provide a considerably
wider range of products than physical retailers because they are not
constrained by physical area.

BACKGROUND OF THE STUDY

Retail is the direct sale of goods to a buyer who wants to utilise them
from a particular point of purchase. The single purchase point could be
a physical retail location, an online store, or a catalogue. The main goal
of retail is to draw customers in through visual merchandising and
advertising. Maintaining inventory, keeping shelves stocked, and
collecting payments are all necessary. Yet merchants are more than just
venues to buy things; they give producers a market so they can pay
attention to making their goods. Retailers are dependent on a
framework that provides them with goods to sell to customers.
Relations with companies that are part of the retailer's supply chain
must be built in order to purchase inventory and guarantee they have
the goods they wish to sell. Retailers, wholesalers, manufacturers, and

4
consumers make up the retail distribution network (end-user). While
the merchant is linked to the wholesaler, the wholesaler is tied to the
manufacturer directly. E-commerce, commonly referred to as
electronic commerce, is the term used to describe the exchange of
money and data for the purpose of transacting business through the
internet. The term "ecommerce" is frequently applied to the online sale
of tangible goods; however, it may also refer to any form of business
deal made possible by the internet. Ecommerce, as opposed to e-
business, is the term used exclusively to describe the exchange of
products and services online. On August 11, 1994, a man used his web
page Net Market, the American retail platform, to sell a Disc by the
band Sting to a friend, starting the history of e-commerce. This is the
first instance of a customer making a purchase from a company over
the World Wide Web, or "ecommerce" as it is now generally known.
Since then, internet shops and marketplaces have developed to make it
simpler to find and buy things. Ecommerce has benefited independent
contractors, small enterprises, and big businesses alike by allowing
them to offer their products and services on a size that was not feasible
with conventional offline shopping. In the upcoming years, the
worldwide e-retail market is anticipated to expand significantly. Total
e-commerce sales are anticipated to exceed $5.5 trillion in the year
2022 and continue to increase, surpassing $8 trillion by 2026. Together
with e-commerce, the word "e-business" is also often used to describe
how businesses have grown electronically with the aid of the internet,
enabling them to reach a larger audience and boosting sales. The terms
"e-commerce" and "e-business," which are used interchangeably, lack
a clear definition. E-commerce, which concentrate on external
activities whereas E-business concentrates on both internal and outside
operations, is actually a subset of E-business. E-commerce affects
many different domains in both positive and negative ways. The secret
to achieving success in e-commerce is to simultaneously lessen the
drawbacks and boost the advantages (Dahiya, 2017). Competition has
grown, which is one of the major effects of electronic commerce just
on retail sector. Electronic commerce has made it simpler for
newcomers to break into the retail
5
market and compete with existing firms, claims a McKinsey &
Company report. Retailers are under pressure to enhance their product
offers and consumer experiences as a result of growing competition. E-
commerce has also brought about modifications in customer behaviour.
Customers are growing at ease making purchases online and are more
inclined to conduct online product research before doing so. This has
caused consumers to spend more money with internet shops instead of
traditional brick and mortar stores. E-commerce has significantly
impacted traditional retail stores, which are still in operation. An e-
Marketer analysis claims that while e-commerce has increased,
traditional retail shop foot traffic has decreased. Due to this, several
retailers have been compelled to close their locations or concentrate on
internet sales. Retailers have started to appreciate the need of omni
channel strategy as e-commerce has grown in popularity. Retailers that
provide both online and in store deals have a competitive advantage,
claims a PwC study. Customers today need a seamless interaction
across every channel, and businesses that can provide it will succeed
more often. Electronic commerce has made it possible for them to break
into the retail sector.
As e-commerce has grown, it has become simpler for small enterprises
to connect with customers competing with bigger shops. The number
of small enterprises adopting e-commerce to make their products
available has increased as a result of this. The retail business has been
significantly impacted by e-commerce. Small businesses now have
more chances thanks to the increased competition, altered consumer
behaviour, and loss in foot traffic to conventional retail establishments.
Electronic commerce on the retail sector will probably continue to
change as it expands. India's population is renowned for having a great
potential for expansion. Consumer spending is significantly
responsible for retail growth. For permanent and online services to gain
more market share, technology is essential. Each retail industry should
think about the obstacles to market expansion. To register diverse
competitors, fixed-line shops must use the survey's suggested
technique. In order to foster confidence among its varied consumer

6
base and increase GDP, India must expand its retail industry, whether
it operates online or off. This conceptual analysis examines changes in
consumer behaviour brought on by online purchases, sometimes known
as conversions. It also outlines particular tactics that must be used to
boost sales in brick-and-mortar establishments. Throughout the coming
years, strategy can aid merchants in growing their revenues. As a result,
both online and offline shops may come to the conclusion that in order
to increase their business and speed up economic growth, they need
concentrate on creating solid partnerships with
manufacturers (Maiya, 2020).

DIFFERENT MARKETS AND RETAILERS IN INDIA

Markets
 Physical Markets– Physical Market is a market where customers
come physically in the market and face-to-face interact with the
seller and buys the product and service in the exchange of money.
Examples of physical markets are shopping malls, department
stores etc.
 Non-Physical Markets/Virtual Markets- Non-Physical Market is
the market in which customers does not go physically to the seller
and do not interact face-to-face. Customer buys the product on
internet and exchange the money electronically. Examples of
these markets are Flip kart, Amazon, eBay etc.
 Auction Market- Auction market is the market in which the goods
are sold to the highest bidder and lower bidders are ignored.
 Market for Intermediate Goods- In these market raw materials are
sold by using them final product is made.
 Black Market- In these market illegal goods like drugs, weapons,
and alcohol is sold which is supervised by illegal sellers.
 Knowledge Market- In this market Information and knowledge-
based products are sold.
 Financial Market- In this market liquid assets or money is
exchanged. There are three types of financial markets: Stock
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 market, in which stocks are exchanged; Bond market, in which
Debt securities is exchanged in the form of the bond; Foreign
exchange market, in which currency exchanges and it is also
called currency market.

Retailers
 Department Store– Departmental store is a store which is a
combination of multiple small stores under one company which
offers a wide variety of products. It adds value for the customers
due to offer a wide variety of products at a place.
 Supermarkets– Supermarkets generally sell food and beverages
but now due to customers need it also sell fashion, electronic
related items. It has a good buying power that why it sells at low
prices.
 Warehouse Retailers– Warehouse retailers are situated at the
place where the premises rent is very low so that they can store,
display and sell large amount of products
 Specialty Retailers– Specialty Retailers sell a special service or
product and provide expert knowledge and good service to
customers. They add values by adding accessories and related
products in the same outlet.
 E-tailer– E-Tailers are those sellers who provide the facility to
customers to buy the product through internet and offers home
delivery using which they can reach to customers within a big
geographic area and can supply goods to them. They have low
rent and overhead that’s why they offer competitive prices.
 Convenience Retailer– These retailers are available in residential
areas and sells limited products at a premium price because they
add value of convenience.
 Discount Retailer– Discount retailers are those retailers which
offer discounts on less fashionable brands by taking it from the
suppliers and resell the product till end of line and return the left
products at the discounted price to the supplier.

8
E-COMMERCE GROWTH IN INDIA

Overview of E-commerce Industry:

The e-commerce sector in India has witnessed exponential growth
over the past decade, transforming the retail landscape. As per the
Internet and Mobile Association of India (IAMAI), the Indian e-
commerce market is projected to reach a valuation of USD 200 billion
by 2026, registering a compound annual growth rate (CAGR) of 25%
from 2021 (IAMAI, 2021). This growth is attributed to factors such as
increased internet penetration, smartphone accessibility, and the
digitization of businesses across various sectors.

Growth Trends and Market Size:

Recent statistics indicate a significant surge in online shopping
activities. In 2021 alone, e-commerce transactions amounted to
approximately 4.9 billion, reflecting a 55% increase from the previous
year (IAMAI, 2021). The market size expansion is notable across
various segments, including electronics, fashion, groceries, and
consumer goods, reflecting the diverse consumer base and evolving
preferences.

Major Players and Market Dynamics:

The e-commerce market in India is dominated by key players such as
Flipkart, Amazon, and Reliance Retail's JioMart. These platforms have
revolutionized retail through innovative business models, extensive
product offerings, and competitive pricing strategies (NASSCOM,
2022). Additionally, the emergence of niche e-commerce players
specializing in categories like health, beauty and organic products has
contributed to the market's diversification. The dynamism within the e-
commerce industry reflects the evolving consumer behaviour,
technological advancements, and market competition, making it a
pivotal driver in reshaping the retail landscape in India.

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TRADITIONAL RETAIL LANDSCAPE IN INDIA

Historical Perspective:
Traditional retail in India has a rich historical legacy deeply
rooted in local markets, bazaars, and small-scale establishments. These
traditional markets have been the cornerstone of Indian commerce for
centuries, embodying cultural diversity and community-centric trade
practices (Chakraborty, 2018). The sector has been characterized by
small family-owned businesses, kirana stores, and local vendors
operating within close-knit neighbourhoods.

Characteristics of Traditional Retail Markets:

The traditional retail landscape in India is characterized by its
personalized service, proximity to consumers, and an intimate
understanding of local preferences. Kirana stores, for instance, play a
vital role in fulfilling the daily needs of consumers and often establish
strong relationships built on trust and familiarity (KPMG, 2022).
Additionally, these markets foster employment opportunities at the
grassroots level, contributing significantly to the socio-economic fabric
of the country.

Challenges and Strengths:

However, the traditional retail sector faces numerous challenges
amidst the rise of e-commerce. Challenges include limited access to
technology, inventory management complexities, and competition
from larger e-commerce entities offering competitive pricing and
convenience (Kaur & Singh, 2022). Nonetheless, the sector's strengths
lie in its adaptability, localized understanding, and the social fabric
it weaves within communities. The traditional retail landscape in India
holds intrinsic value, deeply entrenched in cultural practices and
community relationships, presenting a unique set of challenges and
strengths in the face of e-commerce expansion.

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IMPACT OF E-COMMERCE ON MARKETS AND
RETAILERS

Impact on Markets

 Promotion of Products- Through Ecommerce product can be

promoted in an interesting way and with lots of information
directly to the customers which reduces the cost of offline
promotion because internet can interact a lot of customers and
save amount of cost of advertisements can be used in different
areas of business.
 Customer Service- Customer service can be enhanced because
customers can search detailed information about product or
marketplace which offers the product and can compare the prices
of different market places.
 Brand Image- New business men can establish their brands on
internet by using attractive images at an affordable price.
 Advertisement- Traditionally the advertisements were one- way
to attract customers and let them know about the new product or
market place but now through e-commerce advertisements are
two-way in which customer can browse the market place and
product, can compare the prices and also can ask questions to the
online retailers.
 Customization- Customized products can be made available
according to the needs of customers. It will make a good place of
business in market and new customers will be attracted.
 Order Making Process- Traditionally to take orders from
customers, intermediaries are used which takes a lot of time and
expenses but with e-commerce the order taking is so easy which
reduces a lot of time and expenses and they can make more sales.
 Customer Value- Traditionally attaining a big value from the
customers was the main interest. Only customers were attracted
and it was the biggest target but now sellers make long term

11
 relationships with customers to attain long term value by offering
them special discounts.

Impact on Retailers

 Turnover- Due to e-commerce the turnover of offline retailers has

reduced which is a warning signal for the enterprise.
 Profit Margin- On the arrival of online shops in the market offline
retailers are suffering from pricing. To survive in market, they
have to sell product in law prices which covers only their
operational costs and they do not get any profit margin.
 Discount- Offline retailers sell their products at discounted rates
because online stores offer heavy discount to the customers and
to stay in the market and to attract the customers they have to sell
the products at discounts.
 Variety of Stocks- Variety of goods is offered by online stores to
which offline retailers cannot compete because at the end of year
the left-over stock can give a huge loss to the retailer.
 Customer Services- Offline retailers are providing different
services at which online stores fails. Repair and goods of
services, home delivery and after sales services also like online
shops.
 Window Shopping- Low prices offered by online stores leads to
window shopping by customers at physical stores and they buy
product online. Due to which they have prospective customer’s
more than actual customers.
 Advertisement- Offline retailers focus only on the advertisements
so that they can attract customers and increase their sales. They
do not leave a single chance to advertise.

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 Figure 1: Impact of e-commerce websites on offline retailers in
terms of different aspects.

Negative Trend on offline Retailers in Terms of the Aspects

Increase in window shopping trend

Advertisements

More variety of stocks

Increase in Discounts

Decrease inTurnover

0 5 10 15 20 25 30 35 40 45 50

Yes No

This paper concludes that e-commerce is very good for us who

provides us wide variety of products and services with lots of
information and attractive pictures at an affordable price at our
doorstep. It provides convenience to customers and allows the
enterprise to expand their business over internet. E commerce have
good impact on markets like reduce the cost of advertisements as many
customers can attract through internet, new brand can be developed,
can maintain a good relationship with customers and can make
customized products according to customer’s needs. But e-commerce
has bad impact on offline retailers because customers buy on low price
from online shops due to which they also have to lower their price and
does not get any profit, retailers cannot maintain a large stock like
online shops have stores because it will cost a huge loss to them. They
13
have to spend more money in offline advertisements to attract
customers. Along with the impacts e-commerce also offers some
limitation in terms of markets and retailers that is website cost, to create
and maintain a website a lot of money is required; infrastructure cost,
to fulfil the orders online retailers have to maintain a large stock in a
big warehouse which costs a lot; security and fraud, due to popularity
of online shops criminal elements are also attracted to them who can
hack the personal information and can misuse them; customer trust, it
is difficult for customers to trust a new brand without looking, touching
and face-to face interaction.

14
CHAPTER 3:
OVERVIEW

15
 CHAPTER 3: OVERVIEW

The rise of e-commerce in India has significantly impacted the retail

market, driven by increased internet penetration, smartphone usage,
and favourable government policies. The Indian e-commerce market is
projected to grow from USD 112.93 billion in 2024 to USD 299.01
billion by 2029, at a compound annual growth rate (CAGR) of 21.5%.
Major Drivers of E-commerce Growth
1. Internet and Smartphone Penetration: India's internet users reached
over 850 million in 2022, with significant growth in rural areas. This
widespread connectivity has facilitated the rise of e-commerce
platforms
2. Government Policies: Policies such as 100% Foreign Direct
Investment (FDI) in B2B e-commerce and initiatives like Digital India
have created a supportive environment for e-commerce growth
3. COVID-19 Pandemic: The pandemic accelerated the shift towards
online shopping as lockdowns and mobility restrictions pushed more
consumers and businesses to adopt digital platforms.
Impact on Traditional Retail
E-commerce has transformed the traditional retail landscape in several
ways:
1. Market Penetration: E-commerce is expanding rapidly, particularly in
tier-2 and tier-3 cities, which accounted for over 60% of all orders in
2022. This shift challenges brick-and-mortar stores in these regions.
2. Competition and Innovation: The competition from e-commerce
platforms like Amazon and Flipkart has forced traditional retailers to
innovate, often adopting omni-channel strategies to integrate online
and offline shopping experiences.

16
3. Consumer Behaviour: The convenience, variety, and often lower
prices offered by e-commerce have altered consumer preferences,
leading to a decline in foot traffic in physical stores.
Key Players
 Flipkart: Dominates the Indian market with a significant share in
the apparel segment through its acquisition of Myntra. It has also
diversified into areas like health and travel.
 Amazon: Continues to invest heavily in India, aiming to digitize
small businesses and expand its logistics network.
 Emerging Platforms: Companies like Meesho, which focus on
social commerce, are also growing, particularly among users in
smaller cities and towns.

Challenges and Future Prospects

While e-commerce is growing, challenges such as high return rates,
logistical issues, and regulatory scrutiny persist. Nonetheless, the
sector's future looks promising, with continued technological
advancements and increasing digital adoption expected to drive further
growth.
The e-commerce boom in India has revolutionized the retail market,
leading to increased competition, greater consumer choice, and the
need for traditional retailers to adapt to a rapidly changing landscape.
In recent years India has experienced a boom in internet and
smartphone penetration. As of June 2023, the number of internet
connections in India significantly increased to 895 million, driven by
the ‘Digital India’ program. Out of the total internet connections, ~55%
of connections were in urban areas, of which 97% of connections were
wireless. The smartphone base has also increased significantly and is
expected to reach 1.1 billion by 2025. This has helped India’s digital
sector, and it is expected to reach US$ 1 trillion by 2030. This rapid rise
in internet users and smartphone penetration coupled with rising
incomes has assisted the growth of India’s e-commerce sector. India’s
e-commerce sector has transformed the way business is done in India
17
and has opened various segments of commerce ranging from business-
to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer
(C2C) and consumer-to-business (C2B). Major segments such as D2C
and B2B have experienced immense growth in recent years. India’s
D2C market is expected to reach US$ 60 billion by FY27. The overall
e-commerce market is also expected to reach US$ 350 billion by 2030
and will experience 21.5% growth in 2022 and reach US$ 74.8 billion.
TRANSFORMATION OF INDIAN RETAIL INDUSTRY
In 2012, India’s Gross Domestic Product (GDP) was ~USD 1.7 trillion,
at current prices, of which private consumption constituted nearly 60%.
USD 490 billion was the size of the merchandise retail market in India,
which accounted for nearly half of private consumption. The high share
of private consumption in India’s economy, which is not expected to
change much in the coming decade, also implies that India’s retail
growth rate will mirror the country’s GDP growth rate. India’s GDP
growth, in real terms, will average nearly 6% over the next decade. This
growth will therefore translate to an increase in merchandise retail
market, from the current ~USD 490 billion, to USD 810 billion, by
2021, in real terms, and USD 1.4 trillion in nominal terms (assuming a
7% inflation rate).
There are three types of destinations that address retail sales in any
market:
1. Traditional Retail: Brick & Mortar
2. Corporatized Retail: Brick & Mortar
3. Corporatized Retail: E-tailing.
EFFECT OF E-TAILING ON TRADITIONAL RETAIL
INDUSTRY
World over, e-tailers have struggled to develop a successful business
model for Food & Grocery (F&G) e-tailing. The nature of consumer
behaviour, product perishability, and supply chain issues relating to
sourcing and storage are some of the issues due to which Food &
18
Grocery has not found a viable e-tailing route. In India, the
consumption patterns and supply chain issues pertaining to Food &
Grocery are even more complex. Consequently, e-tailing’s growth in
India will mirror the trends of more mature e-tailing markets and will
be driven by non-food categories. Another supporting fact is that while
67% of India’s total retail is comprised by Food & Grocery, only 3% of
this can be attributed to corporatized brick & mortar retail; this will at
best increase to 5% by 2021. This implies that ~95% of the Food &
Grocery market will remain with traditional retail even
a decade from now.

FUTURE SCOPE OF E-RETAILING

The dramatic shift is now occurring because e-tailing in India now
offers shoppers the flexibility and customization to recreate their
everyday life online. Even items of daily use are now seeing traction.
From what we wear to what we consume and how we shape our minds
– everything now has an online point of sale that is constantly
responsive to shoppers needs to compare, seek information, navigate
choice and seek affiliation with their network of friends and
acquaintances. No doubt, offline retailing will always draw-in its
constant stream of shoppers who are either not yet online or are still
seeking the tactile reassurance of what they are buying. Yet, this
growing shift is a signal to brand owners and retailers that being
connected to your shopper online and in a manner that makes you part
of their everyday lives, has the potential to pay off thanks to the rapid
and unstoppable evolution of India’s digitally connected shopper.

19
 CHAPTER 4:
LITERATURE REVIEW

20
 CHAPTER 4: LITERATURE REVIEW

Kelvin Cheng (2021): In his study on "Analysis of the development of

e-commerce in the retail industry in recent years", the trend of e-
commerce in the retail industry continues to increase at a rapid pace.
With the growth of retail e-commerce, it has become more important to
various stakeholders. Ecommerce will take an important role in the
retail industry; it creates a channel of international business, which
expects to become a mainstream business model. In recent years, the
effects across mobile technologies, smart phone penetration, and
Covid-19 pandemic accelerate the development of retail e-commerce.
It has been influencing economic growth and providing opportunities
for enterprises to expand, but it has also revealed many challenges and
impacts to organizations that focus on e-commerce business. This paper
mainly analyses the factors causing e-commerce development and the
economic impacts in the retail industry based on the statistical data and
relevant research study, to evaluate its implications on today’s
economic and business situations.

Jamal Hasan (2019): In her study on "E-commerce and its impact on

retail stores in Slovakia", E -commerce is the purchase and sale of
goods and services over the Internet. It assumed that despite the ever-
expanding online transaction, the retail shops would not disappear.
Various surveys have shown that customers still prefer to shop in stores
and the number of purchases is increasing. Currently, they mainly use
combinations of ecommerce and retail stores. Before the final purchase
in the store, customers prefer to find out all the necessary information
via the Internet. In the case of online shopping, customers prefer to look
at the product in a retail shop and then purchase it via e-shop. In this
paper, we decided to verify my hypothesis. The article aimed to
determine the impact of e-commerce on retail stores.

21
Maheswara (2016): In his study on "Impact of E-Commerce on Indian
Retail Sector", The Electronic Commerce, or web-based business,
industry is a standout amongst the most dynamic segments of the
economy. Electronic business, regularly known as E-business or web-
based business, is exchanging items or administrations utilizing PC
systems, for example, the Internet. Electronic trade draws on advances,
for example, versatile business electronic, production network the
executives, web marketing, online exchange handling, electronic
information exchange (EDI), stock administration frameworks, and
mechanized information gathering frameworks. Current electronic
business ordinarily utilizes the World Wide Web for something like one
a player in the exchange's life cycle, in spite of the fact that it might
likewise utilize different advancements, for example, email. Online
business is the deal or buy of products or administrations led over PC
organizes by techniques explicitly intended to receive or putting in of
requests. Despite the fact that merchandise or administrations are
requested electronically, the instalment and a definitive conveyance of
the products or administrations don't need to be directed on the web. In
this paper we learn about the effect of E-business on Indian retail
division.

Satyendra Arya et al. (2015): In their study on "An Impact of E-

Commerce Portals on Retailing in India", The Information Technology
has transformed the way of people to do the work and electronic
commerce has unleashed yet another revolution which is changing the
way businesses buy and sell products. The internet gave another boost
to e-commerce. Internet marketing or online marketing refers to
advertising and marketing efforts that use the Web and email to drive
direct sales via electronic commerce. Internet is a great medium that
can serve as a unique platform for the growth of retail brands in India.
The current web-based models for e-retailing are part of an embryonic
phase preceding an era of rapid transformation,
challenge, and opportunity in Indian retail market. It is not just the
metros that are fuelling where there is brand awareness but no
22
availability of products and services is also adding to growth. Online
retailing portals such as e-Bay.in, Snap deal. com, and Naaptol.com are
registering anywhere between 40 and 60% of their sales from rural
areas apart from the tier II and III cities. The penetration rate is quite
low in comparison to other countries worldwide; however, the number
of users is significantly high. The present scenarios of e-retailing
opportunities and its impact, its market, the viabilities and trends etc.,
have been discussed in this research paper.

Menal Dahiya, (2017): Internet assumes a vital role in our everyday

life. We use internet day by day nearly for every single work. Before e-
commerce purchasing and selling were done without internet
physically in the markets however after the landing of e-commerce in
India our life has become more Online shopping is a piece of
ecommerce which is done for the most part by the users due to e-
commerce websites in India which enables us to purchase and sell the
items as indicated by our choice at affordable price. E-commerce
website has a great deal of effects on different markets and retailers. In
this paper we will examine about the different markets and retailers and
effects of e-commerce on them.

Aparna Miglani, (2017): The purpose of this examination is to

discover the influence and development of e-commerce and its effect
on national and worldwide market. E-commerce is developing at a
quick pace over the world. It’s from the studies of developed countries
but at the same time it's creation a positive effect in terms of
development of developing countries. Due of globalization and
relaxation in imports and exports between countries, economies over
the world will witness better knowledge and data technology
development. E-commerce is likewise assuming a critical role in higher
revenue generation, improved customer base, larger measure of
employment creation in Information Technology sector in a
developing country.

23
Dr. Naveen Kumar, (2014): E-Commerce is the future of shopping. E-
commerce is likewise one of the business choices that one should
explore in future. E-Commerce is developing with quick pace
in our nation. Backed by increasing internet users' base and favourable
demographics, Indian E-Commerce Industry has registered impressive
development over the most recent couple of years.
There are tremendous opportunities of development in E-Commerce
future too. Be that as it may, there are certain challenges which need to
be addressed properly. In the present paper an attempt has been made
to contemplate the present status of talk about the future of E-
Commerce in India.

Dr Mahesh, (2016): Electronic commerce normally known as e-

commerce is exchanging items or services utilizing computer networks,
for example, the internet. E-commerce draws on technologies, for
example, mobile commerce, electronic store transfer, production
network management, internet inventory management system and
automated information collection systems. The business model of the
conventional retailers and e-commerce of e-retailing is in its capacity
to transcend physical boundaries and reach customers in a manner
different from the customary retail stores to their very entryway steps.
The developing e-commerce
in India has its greater effect on the conventional retailers. To remain
in the game, they have been chipping away at their internet strategies.
The fundamental objective of the investigation is to
the e-commerce on physical or customary retail arranges. e-Commerce
having the positive and negative influence on customary
retail business.

Need for the study

Most of the earlier studies on E-Commerce adoption were on B2C, C2C
and C2B transactions. There are very few studies that centres on B2B
in developing countries. Extensive research has been done on
ECommerce to demonstrate the tremendous benefits it offers to
24
marketing of various products and various businesses. However, online
market especially in developing countries have not completely adopted
E - Commerce solutions. Influenced factors of E-Commerce in
developing countries like India, especially in Andhra Pradesh, have not
been sufficiently researched. Previous studies that have been conducted
in the area of E-Commerce did not focus on factors influencing E-
Commerce adoption by retailers and failed to establish the relationship
between E-Commerce adoption in retailers’ point of view and
consumers’ point of view. Further, there is no research on the analysis
of factors that influence E-Commerce adoption and its impact on
Business Performance of retailers in India particularly in selected three
cities of Andhra Pradesh. Thus, there is a need for research to improve
the understanding of the factors that influences the E - Commerce
adoption by retailers and also identify the impact of E-Commerce
adoption on the Business Performance of retailers in Visakhapatnam,
Guntur and Vijayawada cities. Significance of the study Online
marketing is very important sector to the economies of all countries,
including the developing countries like India. Many companies are
already demonstrating their business strength by grasping opportunities
offered by Electronic Commerce (e commerce). With an optimized and
well-developed website or app, companies can not only achieve the
desired goals but also offer round the clock convenient services to their
customers that can boost their business (discovery design, 18th
November, 2016) Therefore the cutting edge for marketing today is
e commerce. The driving forces of e commerce have been internet,
growing standards of living, availability of wide range of products,
busy lifestyle of people, evolution of many online market places like
Amazon, Flip kart, Snap deal, Metro Wholesale, Paytm Mall, Udaan
and ShopX etc. With the rapid advancement in the internet and the
infrastructure, E-commerce is becoming more and more popular.
Due to the internet’s accessibility, thousands of retailers across India
can view the website of any product or app at any time, meaning that
for those looking to expand their businesses and reach out to a larger
audience; they have many more opportunities to do so. Compare the
25
amount of people one can reach through a website or app to the amount
they can reach through a high street store or local advertising, there’s
no reason of any retailer should not look at taking his business online
if he is looking to improve his reach (discovery design, 18th November,
2016). Thus, the arena of e-commerce covers a wide range of
applications, such as electronic marketing, customer support services,
electronic ordering and electronic payment systems. E-commerce
enhances efficiency of marketing and business activities and hence it is
perceived as a new business approach towards profitability and
extended market reach. E-commerce has gripped significant
importance in the recent years. This significance has led to vital
progress towards strategies, requirements, growth and development of
E-commerce applications. It was stated in the National Report on E-
commerce Development in India during the year 2019; the online
marketing which adopted advanced level of digital technology has
experienced annual revenue growth which is higher than those of
traditional market. This study is of great importance considering that e-
commerce has become a necessity channel in purchasing and selling
the goods and services to remain in the competitive market. Retailers
will be able to know the models and developments in products and
services, and they can be part of the future developments in the industry
by actively sharing their feedback. Also, they can enjoy the benefit by
making use of the promotional products being offered by the online
platform through various online company websites. Technological
advancement has become the strength of a dynamic economy. The
recent development of E-commerce has provided suitable ground for
improvement of the marketing performance of various businesses.
Online companies are reaping the paybacks resulting out of E-
commerce as they enlarge the geographical coverage ensuring a larger
potential marketplace into which they can sell their products and
services.

26
Statement of the problem

A conscious awareness of the influencing factors of E-commerce

adoption also becomes vital for retailers to suitably address the
pertinent issues and to move forward in order to identify the impact of
E-commerce on businesses performance. In addition to this, E-
commerce applications proves to be an economic affair for retailers to
run their business, support new products, develop networking, collect
information, timely and effective deliver of products and services and
to identify potential business opportunities. The present study is an
effort to analyse the factors that are influencing E-commerce adoption
by retailers and its impact on their business. Hence, the research
questions have been formed to derive answer from this research.

Objective of the study

 To explore the condition of traditional retail usage and e-

commerce usage in last 10 Years.

 To find out total revenue of traditional retail market and e-

commerce.

 To analyse the impact of e-commerce on traditional

retail industry.

27
 CHAPTER 5:
RESEARCH METHODOLOGY

28
 CHAPTER 5: RESEARCH METHODOLOGY
Research Methodology
The methodology adopted for this study is both analytical and
descriptive. It is analytical, as the information, facts, and figures are
analysed and evaluated. It is descriptive also since the study highlights
the current state of affairs in E-Commerce adoption by the retailers.
Sources of Data
The study is an empirical analysis where the perceptions of the
respondents are the key indicators of the research. On the other hands
literature review of various authors also collected from various sources.
Hence, the study deals with the both primary and secondary data.
a) Primary data: Primary Research (also called Field Research)
involves the collection of data that does not already exist. This can be
through numerous forms, including Questionnaires & Telephone
Interviews among others.
b) Secondary data: Data which was gathered and examined by a
different individual for a reason other than the current study topic is
referred to as secondary data. Researchers may find secondary data to
be a useful resource since it gives them access to a variety of sources
of data and can be gathered more cheaply and quickly than primary
data. Researchers can use secondary data as a great resource to develop
new knowledge and find answers to open-ended issues. To make sure
they are suitable for their study objectives, researchers must carefully
assess the quality and dependability of secondary data sources.
SAMPLE: A subgroup of the elements of the population selected for
participation in the study.
SAMPLING UNIT: The sampling unit in this research is all the
people of Lucknow, Gorakhpur, Delhi, Gurgaon etc
SAMPLE SIZE: The Sample Size for this study is 65.

29
 CHAPTER 6:
DATA ANALYSIS AND
INTREPRETATION

30
 CHAPTER 6: DATA ANALYSIS AND
INTREPRETATION
Population sample is not there as the research is done on the basis of
secondary data. Data are shown in the form of bar chart, pie cart, and
graph so we can interpret the data easily. Data have been collected from
Statista and IBEF because it shows accurate data.

Table 1: Total usage in India

Year Retail industry Retail industry
(percentage) (percentage)

2012 97 0.6

2013 95 1

2014 93 1.7

2015 90 4.4
2016 88 5.9

2017 85 10.5

2018 82 12.5
2019 80 15.7

2020 80 18.9
2021 76 21.7

Population sample is not there as the research is done on the basis of

secondary data. Data are shown in the form of bar chart, pie cart, and
graph so we can interpret the data easily. Data have been collected from
Statista and IBEF because it shows accurate data.

31
 Figure 2: Total usage of retail industry in India

Retail Industry (percentage)

120

100
97 95 93
90 88
80 85
82 80 80
76
60

40

20

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Figure 3: Total usage of e-commerce in India

25
E-commerce (percentage)
21.7

20 18.9

15.7
15
12.5
10.5
10
5.9
4.4
5
1.7
0.6 1
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

32
This data shows the total usage of retail industry and e-commerce. So
according to the data retail industry is gradually decreasing as the user
are more preferring ecommerce and e commerce is increasing with
the increase of internet users. Now the users are preferring to buy
from home as it is also less time consuming and easy returns are also
available. We can see from the graph that retail industry is decreasing
slowly but the increase of e-commerce is fast. Here we can see the
impact of e-commerce on retail industry.

Category wise breakup of total retail market and e-commerce

Figure 4: Category wise breakup of retail market

Retail market

8%
10%
food and grocery

10% lifestyle
electronics
others
72%

33
 Figure 5: Category wise breakup of E-commerce

E-commerce

1%
25%
30% food and grocery
lifestyle
electronics
others

44%

According to the data, retail industry is large seller of food and grocery
(72%) whereas ecommerce is small seller of food and grocery (1%). E-
commerce is the large seller of electronics (44%) whereas retail
industry sells only 10% of electronics. In case of lifestyle ecommerce
sells 25% whereas retail industry sells only 10%. We can see in most
of the sector e-commerce has taken large place except food and
groceries.

34
 Table 2: Total revenue of retail market v/s e-commerce

Year Retail market E-commerce (billion)

(billion)
2013 22500 16.4
2014 25500 29.5
2015 28500 52.1
2016 32400 109.2
2017 36600 163.1
2018 40100 229.2
2019 44100 343.8
2020 47100 469.1

Figure 6: Total revenue of retail market

Retail market (billion)

50000

45000

40000

35000

30000

25000

20000

15000

10000

5000

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

35
 Figure 7: Total revenue of E-commerce

e-commerce (billion)
500

450

400

350

300

250

200

150

100

50

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

According to the data, retail industry revenue is increasing gradually

but in e-commerce revenue is increasing very fast from 2016. As we
can see in year 2016 e-commerce revenue was 109.2 and increased to
163.1. The increase was 66.95%. As the ecommerce usage has
increased in this year. But we can see decent speed growth of retail
industry and not the huge change as seen in the retail market graph
compared to e-commerce graph.

36
 Table 3: Total sales

Years Retail market E-commerce

(USD Billion) 2013(USD Billion)
2013 427 16.4
2014 462 23.6
2015 503 38.5
2016 548 55.3
2017 590 65.1
2018 649 74.3
2019 703 82.1
2020 776 89

Figure 8: Total sales of retail market

Retail market(USD Billion)

900

800 776
703
700 649
590
600 548
503
500 462
427
400

300

200

100

0
2013 2014 2015 2016 2017 2018 2019 2020

37
 Figure 9: Total sales of E-commerce

E-commerce(USD Billion)
100
89
90 82.1
80 74.3
70 65.1
60 55.3
50
38.5
40
30 23.6
20 16.4

10
0
2013 2014 2015 2016 2017 2018 2019 2020

As shown in the graph, trend line shows that total sale in retail industry
is growing but will the slowly throughout but in e-commerce we can
see that total sale is growing will the high speed. As the use of internet
is increasing everyone is shifting to e-commerce and due to increase in
e-commerce, retail market is growing slowly.

Table 4: Size of market

Year Retail market E-commerce

2013 430 13
2014 534 16
2015 600 23
2016 641 32
2017 710 38.5
2018 792 52
2019 779 64
2020 705 82

38
 Figure 10: Size of retail market in India

Retail market(USD Billion)

900
800
700
600
500
400
300
200
100
0
2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 11: Size of E-commerce in India

90
E-commerce(USD Billion)
80
70
60
50
40
30
20
10
0
2013 2013 2014 2015 2016 2017 2018 2019 2020

According to data, retail industry market size was growing in starting

till 2019 but from 2020 we can see the downfall in the market size. It
was affected due to covid-19 pandemic. Due to this pandemic, we can
see lot of consumers shifting to e-commerce. Which leads to growth in
e-commerce market size. As the impact of e-commerce was shown on
retail industry not only because of internet but covid-19.
39
 1. Gender
 Male
 Female
 Prefer not to say

INTERPRETATION: The above chart shows that 55.4% out of the

total respondents are male and 44.6% out of the total respondent are
female.

2. Age
 16 - 18
 18 - 24
 25 -35
 36 – 62

INTERPRETATION: The above chart shows that 51 respondents are

under the age group of 18-24 Years ,7 are under the age group of 25-
35 Years and 5 are under the age group of 36-62 Years.
40
 3. Academic Qualification
 Graduate
 Post Graduate
 Professional
 Other:

INTERPRETATION: The above chart shows that 52.3% of the total

respondents are graduates ,40% are post graduates and the rest are
miscellaneous.

4. For how many years you are using e-commerce?

 Less than one year
 One year but less than five years
 More than five years
 Do not know/ Cannot say

INTERPRETATION: The above chart shows that 43.1% of the total

respondents are using e-commerce for more than one year but less than
five years, 36.4% are using it for more than five years, 9.1% are using
it from less than one year and the rest 12.3% are not sure.
41
5. For what purpose do you use e-commerce?
 For personal use
 For business use
 For both personal and business use

INTERPRETATION: The above chart shows that 73.8% of the total

respondents use e-commerce for their personal use, 20% respondents
use it for both personal use and business use and the rest use it for their
business use.

6. From the various types of e-commerce, what according to you has

the largest market share?
 B2B Commerce
 B2C Commerce
 B2G Commerce
 Others

INTERPRETATION: The above chart shows that 63.1% of the total

respondents consider B2C as the largest market share whereas 26.2%
respondents consider B2B and 10.8% respondents consider others.
42
 7. According to you how is e-commerce helpful to the consumer in the
e-business domain?
 Broadens consumer choice
 Encourages price transparency
 Fastens business process
 Do not know/ Cannot say

INTERPRETATION: The above chart shows that 50.8% respondents

consider that e-commerce broadens consumer choice, 24.6%
respondents consider that it encourages price transperancy,15.4%
respondents consider that it fastens business process and 9.2%
respondents are not sure about it.

43
8. According to you how e-commerce is helpful for the business
discourse?
 Effectively caters to customers’ demands
 Smoothens business by creating customer and businessman
network
 Ensures guarantee of payment
 Do not know/ Cannot say

INTERPRETATION: The above chart shows that 61.5% respondents

say that e-commerce smoothens business by creating customer and
businessman network, 26.2% respondents say that it effects caters to
customers’ demand and rest have miscellaneous views.

44
9. Do you think that the application of e-commerce has increased over
the years in India?
 Yes
 No
 Do not know/ Can not say

INTERPRETATION: The above chart shows that 93.8% respondents

think that the application of e-commerce has increased over the years
in India whereas rest are saying it has not increased or are not sure about
it.
10. Do you agree that e-commerce as commercial means has its
advantages over the traditional commercial methods?
 Agree
 Disagree
 Do not know/ Can not say

INTERPRETATION: The above chart shows that 89.2% respondents

agree that e-commerce as commercial means has its advantages over
the traditional commercial methods whereas the rest disagree or are
not sure.
45
11. Do you agree that e-commerce can provide an alternative marketing
channel by eliminating middleman?
 Agree
 Disagree
 Do not know/Cannot say

INTERPRETATION: The above chart shows that 83.1% respondents

agree that e-commerce can provide an alternative marketing channel by
eliminating middleman whereas the rest disagree or are not sure.

12. Which is the most prominent domain in which e-commerce is used

in India?
 Matrimony
 Real Estate
 Stocks & shares
 Travel and tourism
 Banking Others

INTERPRETATION: The above chart shows that 40% respondents

consider stocks and shares, 30.8% respondents consider banking,
12.3% consider travel and tourism and 9.25 consider matrimony as the
most prominent domain in which e-commerce is used in India.

46
 13. What are the challenges to the implementation of e-commerce in
India?
 Slow penetration of internet
 Security concerns
 Lack of trust
 Consumers’ awareness level is low
 Other factors

INTERPRETATION: The above chart shows that 32.3% respondents

consider lack of trust as the main challenge to the implementation of e-
commerce in India

14. Do you think that the Govt. of India is doing its enough to promote
e-commerce in India.
 Yes
 No
 Do not know/Cannot say

INTERPRETATION: The above chart shows 75.4% respondents

think that the Govt. of India is doing its enough to promote e-
commerce in India whereas 12.3% respondents are not sure and
12.3% respondents does not agree with it.
47
15. What measure would you recommend for promotion of e-
commerce in India?
 Promotion of internet
 To increase the awareness level of people
 An integrated promotional approach
 Other measures

INTERPRETATION: The above chart shows the measure which

respondents recommend for promotion of e-commerce in India where
61.5% respondents recommend to increase the awareness level of
people, 16.9% respondents recommend promotion of internet, 10.8%
respondents recommend an integrated promotional approach and
10.8% respondents recommend other measures.

48
16. What according to you is the future of e-commerce in India?
 Very good
 Good
 Not so good
 Do not have a future in India
 Do not know/ Can not say

INTERPRETATION: The above chart shows the views of

respondents regarding the future of e-commerce in India where
70.8% respondents consider it very good, 24.6% respondents
consider it good and rest have miscellaneous views.

49
CONCLUSION

50
 CONCLUSION
The above survey was conducted on the topic IMPACT OF E-
COMMERCE ON RETAIL MARKET IN INDIA. The above survey
was conducted to get the views of people on e-commerce and its impact
on us as well as on the retail market. E-commerce is rapidly growing in
India and in the world, and gaining a lot of importance in every
individual life. The survey provides us a data of whether people are
considering e-commerce as a beneficial method in their life or not, its
uses in their life and whether it is a good thing or not for our future.
Every individual has their own view but for today’s world where
everything is done with the help of technology and devices, e-
commerce plays an important role as it is a time saving and fast process.
The consumers have benefitted from it but with the help of e-commerce
the markets are also gaining a lot as they can expand their business with
many more customers with this and can gain profit.

51
BIBLIOGRPAHY

52
 BIBLIOGRPAHY

 https://www.researchgate.net/publication/371379144_A_STUD
Y_ON_IMPACT_OF_ECOMMERCE_ON_INDIA's_COMMER
CE
 https://rjpn.org/ijnti/papers/IJNTI2403001.pdf.
 https://ijcrt.org/papers/IJCRT2204041.pdf
 https://www.scribd.com/document/641585896/Untitled
 https://www.scribd.com/presentation/467615974/Impact-
of-customers-Retailers-towards-E-commerce
 https://www.scribd.com/document/291775978/Impact-of-
E-commerce-on-Marketing
 https://www.scribd.com/presentation/405163902/c5538e
a-7086-4704-89d0-5abe1d67abe1-160320123109-
converted
 https://globusjournal.com/wpcontent/uploads/2020/05/G
MIT-JD193-Sindhu-Kumari-P.R-21-23.pdf
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udy_on_ECommerce_and_it's_Impacts_on_Market_and
_Retailers_in_India
 https://www.ripublication.com/acst17/acstv10n5_75.pdf
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content/uploads/2020/05/GMIT-JD193-Sindhu-Kumari-
P.R-21-23.pdf
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Publications/Documents/KPM
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53
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 Amit Saha, “The impact of online shopping upon retail
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Engineering, Technology & Management, Assam, pp.74-
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on-of-e-commerce-in-india.pdf

54
 ANNEXURE
1. Gender
 Male
 Female
 Prefer not to say

2. Age
 16 - 18
 18 - 24
 25 - 35
 36 – 62

3. Academic Qualification
 Graduate
 Post Graduate
 Professional
 Other:

4. For how many years you are using e-commerce?

 Less than one year
 One year but less than five years
 More than five years
 Do not know/ Cannot say

5. For what purpose do you use e-commerce?

 For personal use
 For business use
 For both personal and business use

6. From the various types of e-commerce, what according to you has

the largest market share?
55
  B2B Commerce
 B2C Commerce
 B2G Commerce
 Others
7. According to you how is e-commerce helpful to the consumer in
the e-business domain?
 Broadens consumer choice
 Encourages price transparency
 Fastens business process
 Do not know/ Cannot say

8. According to you how e-commerce is helpful for the business

discourse?
 Effectively caters to customers’ demands
 Smoothens business by creating customer and businessman
network
 Ensures guarantee of payment
 Do not know/ Cannot say

9. Do you think that the application of e-commerce has increased over

the years in India?
 Yes
 No
 Do not know/ Can not say

10. Do you agree that e-commerce as commercial means has its

advantages over the traditional commercial methods?
 Agree
 Disagree
 Do not know/ Can not say

11. Do you agree that e-commerce can provide an alternative

marketing channel by eliminating middleman?

56
  Agree
 Disagree
 Do not know/Cannot say
12. Which is the most prominent domain in which e-commerce is used
in India?
 Matrimony
 Real Estate
 Stocks & shares
 Travel and tourism
 Banking Others

13. What are the challenges to the implementation of e-commerce in

India?
 Slow penetration of internet
 Security concerns
 Lack of trust
 Consumers’ awareness level is low
 Other factors

14. Do you think that the Govt. of India is doing its enough to promote
e-commerce in India.
 Yes
 No
 Do not know/Cannot say

15. What measure would you recommend for promotion of e-

commerce in India?
 Promotion of internet
 To increase the awareness level of people
 An integrated promotional approach
 Other measures

57
16. What according to you is the future of e-commerce in India?
 Very good
 Good
 Not so good
 Do not have a future in India
 Do not know/ Can not say

58