Team-BHP > Shifting gears


Reply
  Search this Thread
2,220,449 views
Old 8th October 2014, 15:37   #1996
BANNED
 
Join Date: Mar 2007
Location: Kolhapur
Posts: 1,717
Thanked: 1,901 Times
Infractions: 0/1 (7)
re: The "Online Shopping" Thread

Quote:
Originally Posted by binand View Post
- Charge entry fee (adjusted against final purchase) to the store, to cover overheads.
No one will come to his store
Quote:
Originally Posted by binand View Post
- Make sure that the customer orders from HIS online store (say, by way of a discount code).
But he still has more expenses than a pure online store, so he cannot provide the same prices as a pure online store.
Quote:
Originally Posted by binand View Post
- Provide the same benefits as ordering online. If the customer is in HIS store already, why does she need to go online to order? Provide home delivery and COD. Or easy returns.
Customer goes online because it may be cheaper. And a B & M cannot provide the same cheaper price because he has to pay for prime real estate, lot of sales guys in the shop and other overheads which the pure online store does not have.


Quote:
Originally Posted by binand View Post
The one thing the store owner ought not do is to gang up against online stores,
Why not?
Quote:
Originally Posted by binand View Post
run crying to the government and courts or otherwise interfere with the online store's business.
I agree govt should not interfere, but he can go running to the manufacturer.

Last edited by Samurai : 8th October 2014 at 19:24.
carboy is offline  
Old 8th October 2014, 15:51   #1997
Senior - BHPian
 
GrammarNazi's Avatar
 
Join Date: Apr 2013
Location: Bangalore
Posts: 1,419
Thanked: 3,490 Times

Someone here mentioned he supplies b2b with a 25-30% margin which Flipkart sells at a loss by giving ~50% discount.

IMO this should seriously be considered and Competition Commission of India should prevent this.

Why? Just because you have a fat VC funding doesn't mean you follow such practices to kill competition and capture the market.

Even as a customer the FK sale made me feel horrible, I was really just looking for some good deals, not a charity where people grabbed whatever they got (for unreasonably cheap prices) and ran away. Many even offered re-sell packaged stuff somewhere else (FB groups etc) for commissions.

IMO Chances of such stuff happening at a brick & mortar store are MUCH lower (and even they'd cater to customers - not resellers).

Shopping is alot about the experience and the sense of occasion, online shopping needs to be more 'humanized', failing which I doubt it'd take off like people make it out.

Last edited by GrammarNazi : 8th October 2014 at 15:55.
GrammarNazi is offline  
Old 8th October 2014, 15:53   #1998
BHPian
 
Join Date: Jun 2012
Location: Traveller
Posts: 149
Thanked: 285 Times
re: The "Online Shopping" Thread

Love it or hate it, but E-tailing will change how we shop.

When Big bazaar entered any market, they also moved many small retailers, by their efficiency.

Now E-tailing will do the same to other retailers online or offline.

In India there was time when everyone started a Cybercafe, now you see the reality, very few left.

Markets are dynamic, and wish everyone should play the Marketing Game once, it is just like cricket.

http://www.amazon.com/The-Marketing-.../dp/0072513802

Regarding the USA or anywhere, if I need Coke or anything to house I will buy it in advance from Walmart at the cheapest price available. But if I need Coke right now, then I will enter a Gas station and purchase it a higher mark up. Its the same for everyone, anywhere, in any situation, if you need it now - pay more. This is also relevant for Offline and E-tailing.

Another point, see the products listed in first pic at Snapdeal as hourly deals. You will notice that they are not top seller, or choice at which all will like to buy at the MRP price (or MSP), so are made favorable by a price correction. All shops offline or online do it, to clear inventory.

It also provides an opportunity for people to upgrade, from a lesser valuable product.

We cheered when Big bazaar came in, and we also cheered when Amazon came in, hey it is all about efficiency.

Mr. Kishore Biyani questions rationale of investments in E- commerce space.


- See more at: http://indianexpress.com/article/bus....jzrQmS9S.dpuf link
Attached Thumbnails
The Online Shopping Thread-tb.jpg  

ritz3645 is offline  
Old 8th October 2014, 16:03   #1999
BHPian
 
Join Date: Jul 2011
Location: Mumbai
Posts: 250
Thanked: 488 Times
re: The "Online Shopping" Thread

Quote:
Originally Posted by ritz3645 View Post
Love it or hate it, but E-tailing will change how we shop.

When Big bazaar entered any market, they also moved many small retailers, by their efficiency.

Now E-tailing will do the same to other retailers online or offline.

In India there was time when everyone started a Cybercafe, now you see the reality, very few left.

Markets are dynamic, and wish everyone should play the Marketing Game once, it is just like cricket.

http://www.amazon.com/The-Marketing-.../dp/0072513802

Regarding the USA or anywhere, if I need Coke or anything to house I will buy it in advance from Walmart at the cheapest price available. But if I need Coke right now, then I will enter a Gas station and purchase it a higher mark up. Its the same for everyone, anywhere, in any situation, if you need it now - pay more. This is also relevant for Offline and E-tailing.

Another point, see the products listed in first pic at Snapdeal as hourly deals. You will notice that they are not top seller, or choice at which all will like to buy at the MRP price (or MSP), so are made favorable by a price correction. All shops offline or online do it, to clear inventory.

It also provides an opportunity for people to upgrade, from a lesser valuable product.

We cheered when Big bazaar came in, and we also cheered when Amazon came in, hey it is all about efficiency.

Mr. Kishore Biyani questions rationale of investments in E- commerce space.


- See more at: http://indianexpress.com/article/bus....jzrQmS9S.dpuf link
+100. You have summed it up perfectly. These Brick and Mortar retailers cannot control the market. Big Bazaar had also tried getting onto the online platform but that did not quite take off with the consumers. So now, when someone else does it better than them, they are crying foul! What a baby!
trek is offline  
Old 8th October 2014, 20:58   #2000
BHPian
 
Join Date: Apr 2014
Location: Account closed
Posts: 315
Thanked: 983 Times
re: The "Online Shopping" Thread

Quote:
Originally Posted by Saanil View Post
I know as a consumer, getting low prices is good for me but selling stuff worth Rs100 for Rs80 is not good in the long term - this is just my opinion.
Quote:
Originally Posted by Saanil View Post
What I intend to say is that prices of all quantities should not keep on decreasing.

During the sale I saw a very frightening side of consumerism - buying stuff which one does not need.
Why should prices not keep on decreasing .. or have we become so cynical that we resist such a thing? There are so scores of sectors / products that have become consistently cheaper over the years (in inflation adjusted terms) and both buyers and sellers are doing just fine. Stuff worth Rs 100 cannot be indefinitely sold at Rs 80 - in which case the pricing was wrong to start with or the seller is not interested in making a profit; as long as no coercion or fraud is involved I don't believe its anyone's business to mind market pricing (with a small exception of predatory pricing that I'll write a few words on later below).

Consumerism may be frightening, I agree (that's the basis for my Rs 1 lakh T-72 joke which I'm sure many will want to buy) - but living responsibly means doing everything in moderation and knowing one's limits, be it alcohol or spending.

Quote:
Originally Posted by GrammarNazi View Post
IMO this should seriously be considered and Competition Commission of India should prevent this.

Why? Just because you have a fat VC funding doesn't mean you follow such practices to kill competition and capture the market.
Predatory pricing in India by definition applies only to firms in a dominant position and in addition requires the presence of an intention to kill competition. As such there is no way CCI can investigate this (flipkart sale). As a strategy it is very difficult to implement (even for dominant players, leave aside new entrants) and leaving aside niche products or goods where entry barriers are high, predatory pricing has never been successful so as to warrant regulatory intervention. On the contrary history is actually replete with examples of firms who attempted lower-than-cost pricing to gain market share but failed (PCL Computers, Air Deccan, etc.) Competition law generally favours concrete short term benefits to consumers over uncertain long term pitfalls and therefore takes a lenient view on circumstances where pricing is predatory. In the USA, there has not been a single case where regulatory prosecution for predatory pricing has succeeded in a court in over 20 years!!

Quote:
Originally Posted by GrammarNazi View Post
Even as a customer the FK sale made me feel horrible, I was really just looking for some good deals, not a charity where people grabbed whatever they got (for unreasonably cheap prices) and ran away.
Why feel horrible? FK is not into charity, they are sellers for profit; if they succeeded (without coercion or fraud) in influencing responsible adult men and women sitting on computer terminals thousands of km away to buy all kinds of rubbish that they don't need, kudos to them. Personally I did not find Flipkart offering much of a discount on the stuff I wanted and in any event we all know the steal deals were more of a marketing gimmick so even the bogey of mobs of buyers going insane and buying Rs 10k phones and tablets for Rs 1k did not materialise.

Quote:
Originally Posted by GrammarNazi View Post
IMO Chances of such stuff happening at a brick & mortar store are MUCH lower (and even they'd cater to customers - not resellers).
Speaking from my own experience I believe the chances of being cheated, hustled or missold at a Brick and Mortar shop are much higher than online. Such shops thrive on limited access to information, feeling of an obligation to buy something once you enter, no access to comparison of products and narrow range of inventory. For all its faults I am more comfortable shopping online, especially now that the product delivery of online portals is more mature and options like COD are available. Frankly if there was some way to order perishables and food online I'd go for it.

Quote:
Originally Posted by GrammarNazi View Post
Shopping is alot about the experience and the sense of occasion, online shopping needs to be more 'humanized', failing which I doubt it'd take off like people make it out.
Perhaps you are referring to luxury goods, or very close trusted physical shops but for most other items, online retailing (and wholesaling) has already changed the way we shop... in the overwhelming majority of cases, for the better. For the most part, it is permits easy comparison of prices (air tickets, phones, shoes), allows us to buy hard-to-get products (like a size 11 shoe), shop from international sources (Aliexpress, newegg), shop at leisure (at 11 pm), avoid annoyances like parking, rude staff and checkout queues. It has already taken off in a big way. If physical shopowners cannot presently compete with flipkart or amazon they should find some business where they can.

Last edited by Kumar R : 8th October 2014 at 21:04.
Kumar R is offline  
Old 8th October 2014, 21:03   #2001
Senior - BHPian
 
F150's Avatar
 
Join Date: May 2011
Location: PUNE
Posts: 1,730
Thanked: 869 Times
re: The "Online Shopping" Thread

Quote:
Originally Posted by deetjohn View Post
I got a SMS sometime back saying the Moto E will be delivered today before 7 PM by one Mr. Nelson.
Quote:
Originally Posted by Gannu_1 View Post
Woot! Even I got an SMS saying the phone will be delivered today before 7 PM!

I think I'll keep the Moto E and pass her my Lumia 920.
Quote:
Originally Posted by carboy View Post
I got my Moto E yesterday afternoon - so roughly within 30 hours of ordering.
Received an SMS that my MOTO E has been shipped and the delivery date is set as 10th OCTOBER for both my MOTO E and Redmi 1 S.
F150 is offline  
Old 8th October 2014, 21:15   #2002
Team-BHP Support
 
Gannu_1's Avatar
 
Join Date: Apr 2013
Location: Madras
Posts: 7,169
Thanked: 20,185 Times
re: The "Online Shopping" Thread

Got mine today! Super quick delivery.

The Online Shopping Thread-wp_20141008_21_23_05_pro.jpg

Turned it on and works just fine. Got to apply a scratch guard before handing it over to the wife.
Gannu_1 is offline  
Old 8th October 2014, 21:44   #2003
BANNED
 
Join Date: Mar 2007
Location: Kolhapur
Posts: 1,717
Thanked: 1,901 Times
Infractions: 0/1 (7)
re: The "Online Shopping" Thread

Quote:
Originally Posted by Gannu_1 View Post
Got to apply a scratch guard before handing it over to the wife.
It has Gorilla Glass which is more scratch proof than any scratch guard.
carboy is offline  
Old 8th October 2014, 21:51   #2004
Team-BHP Support
 
Gannu_1's Avatar
 
Join Date: Apr 2013
Location: Madras
Posts: 7,169
Thanked: 20,185 Times
re: The "Online Shopping" Thread

Quote:
Originally Posted by carboy View Post
It has Gorilla Glass which is more scratch proof than any scratch guard.
I know that but my friend has managed to scratch his Lumia 925 with a bunch of keys in his pocket.
Gannu_1 is offline  
Old 8th October 2014, 22:38   #2005
Senior - BHPian
 
deetjohn's Avatar
 
Join Date: Sep 2006
Location: Kochi
Posts: 4,530
Thanked: 10,580 Times
re: The "Online Shopping" Thread

Got the Moto E by noon. Everything looks good.

Have also ordered the Amzer cover and screen guard from Amazon.
deetjohn is offline  
Old 8th October 2014, 23:14   #2006
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Liverpool/Delhi
Posts: 5,439
Thanked: 7,539 Times
re: The "Online Shopping" Thread

My Redmi 1S was delivered today morning. No glitches at all. Pretty fast delivery.
drmohitg is offline  
Old 8th October 2014, 23:19   #2007
BHPian
 
srikant's Avatar
 
Join Date: Jul 2008
Location: Bengaluru
Posts: 488
Thanked: 12 Times
re: The "Online Shopping" Thread

Got my MI3 yesterday, thanks to Senior BHPian KLUBCLASS. It was pretty quick delivery. He had ordered it on COD on the 6th Oct noon and i got the delivery on 7th morning itself at home.
srikant is offline  
Old 8th October 2014, 23:30   #2008
BANNED
 
Join Date: Nov 2008
Location: New Delhi
Posts: 768
Thanked: 349 Times
re: The "Online Shopping" Thread

What i would like to understand how Flipkart , Snapdeal etc are able to sell goods wherein OEM's of the sold products refuse to honor warranty saying they are illegal imports in India . I know for sure among many JBL doesnot honour warranaty on goods bought online except there own store .This means these online firms are looting tax departments as these products they sell at such low prices first reduce sales of legal manufactured/imported goods in india and second do not pay any taxes to government .

Also CCI probe is justified . What will happen if Amazon decides to offer 50% off MRP for say 1month..6month...1year , they have the resource to do it !It will literally wipe out market .What Flipkart is doing is just blowing VC funding improve market cap then probably list or being sold to global major . the owners cash out .

In delhi we have a Sadar Bazar wherein you can buy FMCG goods at nearly 35-25% min Discount , Jockey at about 30% etc . I mean we all know majority of cost is marketing , sales , branding .The product cost is always much lower than i guess the lowest we are able to buy it .So be it Brick and Mortar , Online everyone is here to do business. The business goals are always different for few .Like Amazon is very low on profitability but Alibaba is not . Flipkart wants to grow may be then sell out . The brick and mortar stores are often individual driven shops and are bothered about lower stocks , higher profits . I know for sure there is block of 6mobile shops side by side where i stay and they fix prices (Now what can CCI do in this) !

Last edited by Trust_In_Thrust : 8th October 2014 at 23:40.
Trust_In_Thrust is offline  
Old 8th October 2014, 23:35   #2009
BHPian
 
jaaz's Avatar
 
Join Date: Jul 2009
Location: Earth
Posts: 660
Thanked: 636 Times
re: The "Online Shopping" Thread

Bhpians - If you leave apart the Flipkart debacle, Which Online Store do you feel good and uncluttered ? The price changing strategy is also evident on Snapdeal on regular basis. Apart from Flipkart, Snapdeal & Amazon are there any other sites that are good and reliable for shopping Online ?
jaaz is offline  
Old 9th October 2014, 00:27   #2010
BHPian
 
Join Date: Jun 2012
Location: Traveller
Posts: 149
Thanked: 285 Times
re: The "Online Shopping" Thread

Quote:
Originally Posted by Trust_In_Thrust View Post
1) What i would like to understand how Flipkart , Snapdeal etc are able to sell goods wherein OEM's of the sold products refuse to honor warranty saying they are illegal imports in India .

2)This means these online firms are looting tax departments as these products they sell at such low prices first reduce sales of legal manufactured/imported goods in india and second do not pay any taxes to government.

3)Also CCI probe is justified . What will happen if Amazon decides to offer 50% off MRP for say 1month..6month...1year , they have the resource to do it !It will literally wipe out market .What Flipkart is doing is just blowing VC funding improve market cap then probably list or being sold to global major . the owners cash out .

4)In delhi we have a Sadar Bazar wherein you can buy FMCG goods at nearly 35-25% min Discount , Jockey at about 30% etc . I mean we all know majority of cost is marketing , sales , branding .The product cost is always much lower than i guess the lowest we are able to buy it .So be it Brick and Mortar , Online everyone is here to do business. The business goals are always different for few .Like Amazon is very low on profitability but Alibaba is not . Flipkart wants to grow may be then sell out . The brick and mortar stores are often individual driven shops and are bothered about lower stocks , higher profits . I know for sure there is block of 6mobile shops side by side where i stay and they fix prices (Now what can CCI do in this) !

Dear Trust, I see all answer in your post itself.

So some people do offer more discount in Sadar Bazar, why as it promotes more sale, bigger ticket size, and customers get a good deal, win win for all.

What if a retailer from my city complaint against it to say Jockey or HLL. On the contrary companies are more than eager to dump stock. Stock dumping is the name of the game, Companies want to sell what they have not what the retailer wants.

1) First Online is a new channel or a new medium for any company to sell. Many companies require you to register products or call up their call center, which is centralized and not dependent on the dealers decision to serve or not. I think JBL India dealership is in South, and can have its own procedure.

2) Tax department can only be looted by an undeclared or under invoiced import. BTW we are talking 40 feet containers used in import (FK sold 25000 TV) and the Custom and excise dept have big targets to complete. Also Electronic goods like Flat TV are rarely made in India. ( Assumption correct me if I am wrong).

3) CCI probe have no idea, but am sure the IT dept will be scanning all online stores, as normally they do with all high foot fall business.

4) We do agree of majority in cost is marketing , sales , branding.
When I was a Kid there was a mad rush for plantation companies to list on stock exchange. You know the types of buy mango tree/teak tree and 20 years down the line be a millionaire. I do not see a single company now of that batch.

Now what happens in 20 years, is a good guess.
ritz3645 is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks