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Posted in Community :

Business & Strategy

 
Industry : Consumer Durables Functional Area : India
Keywords :

e-commerce

b to c

Activity:  2 comments  75 views  last activity : 10 12 2010 16:58:16 +0000
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I was wondering if there is a scope for direct B to C channel in India? The idea is to establish a new brand of consumer durables and market it directly to the customer (bypassing the strong distributors).

The specific questions I have is, what is the net penetration in India, Rural = ? Urban = ?

Was there any previous attempt by someone to do exactly this?

What was the outcome?

Here in the US or Europe, it is a growing market challenging the traditional distributor channel. The companies which were in the forefront who did not adopt to this new trend either died or taken over by their long time rivals. Those who adopted early, though did enjoy the fruit of their investment early on, did succeed later.

 
2 comments on "What is the face of e-commerce in India"
  Commented by  Mohideen Ahmed, Global operations manager    | 10 12 2010 16:58:16 +0000
Hi Saurabh, Thanks for your comment. Understanding India, I am an Indian who lived very less in India besides annual vacations. Understanding India is a big issue today to the entire west including my company.
Coming to main questions. I am talking abt direct B to C marketing of almost everything that can be used in the house hold. Traditionally (and understandingly), there is a lot of premium taken away by distributors who carry a lot of risk in this business. But, by doing some changes in value chain, it is possible to go directly to the customers. The idea is to cater to the whole country and only net is not an option but among all the options available net should be considered the most important. Thats why I posted this question because, I want to know the consumer taste in india. Are they shopping increasingly online? or they still prefer to visit to the shop and feel the product before buying?
Your comments will be very useful as, I am exploring an interesting topic for my MBA thesis. Have you bought something online in the last one year? what was it? how was the service?

Is there some online place where I can put such a survey?

Thank you once again.
  Commented by  Saurabh Awasthi, SBU/Profit Center Head, ONGC    | 10 12 2010 11:26:34 +0000
 The future of e-commerce in India is very bright. The government of India has given tax exemption to those companies which export Information Technology. The government has launched the special policies for call countries. So it a good time to invest. But make sure you understand the Indian market before launching a product. There is a huge difference between the urban and rural needs and usage.  
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