Charufinal Dissertation Upload

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Dissertation Report

Towards partial fulfilment of the requirements of the Post Graduate D iploma in Communications

Mudra Institute of Communications, Ahmedabad

DRIVERS AND BARRIERS FOR ONLINE

SHOPPING OF APPARELS IN INDIA

Submitted By

Charu Chopra | 2009-015-A

Dissertation Guide

Dr. Shubhra Gaur (Professor, MICA)

Mudra Institute of Communications, Ahmedabad

Shela, Ahmedabad 380 058, Gujarat, INDIA

Phone: + 91 02717 237946 to 51 | Fax: + 91 02717 237945


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EXECUT I E SUMMARY

The

issert

ti

ealt

ith fi

i

g

t Driv

rs

nd B

rri

rs f

r the Online Shopping of

pp

rels

in Indi . Many st

ies have

een ndertakendebating the r s anda n fe-shopping but none

had focused speciallyonapparel purchasing online in the Indiane-market.

As the internet consumers are increasing in thenation so is theawareness about e-shopping. Even

though there is substantial e-shopping in thedomainof travel andmoviebookings, digital products,

etc. but theareaofonlineapparel shopping in India is under-developedandnot studiedwell.

Thus this researchhadopenedupa topicwhichhadnot beendebatedas yet andwas aimedat helping

strengthen some retailers belief in the success ofonlineapparel shopping in India.

The researchwent througha lot of steps toultimatelyarriveat thecongregationof theobjectives. In

thecourseof this study, the Indianonline spacewas analyzed, views ofpeopleonapparel retail online

were recorded and analyzed, and a host of conclusions were presented. The original objective of

finding thedrivers andbarriers ofonlineapparel buying in India fulfilled througha sample set from

the

CR region in theage groupof

-45years. Starkdifferences werealso seen in the way males

and females perceive shopping anddeal with the limitations and features ofonline retail.

The studywas divided into

sub-studies:

y Study

dealt with the secondary research with the aim of finding out about the internet

market in India. Theother findings from this phasewere thewebsiteattributepreferences of

consumers. The results from this phase were used to create the discussion guides for the

ualitative research tobedone in thenext phase

y Study dealt with ualitative research for finding out barriers anddrivers specific tobuyingofapparels online. This phasealso included finding out the shopping behavioronlineandhow

it changes in caseofapparels andwith thedifference in gender. The results from this phase

wereused forcreating the uestionnaire for uantitative study

y Study ! was the " uantitative analysis of a set of about 50 statements that were ranked byrespondents ona likert scale.

#

n thebasis of thedatacollecteda factoranalysis was done to

find thekeybarriers anddrivers foronline shopping

$

ased on the various findings across the!

sub-studies results were obtained and corroborated, a

collation of results was done to build a model that would help understand the various internal andexternal factors that auserconsiders beforeplanning topurchaseapparels online.


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Suggestions on how an online apparel store must be for being successful were given based on the

researchers journey through the dissertation. The proposed model for judging online purchase

behaviorhas beenpresented in the report.

This researchcanbebeneficial tovendors whoplan toup-haul or start onlineapparel stores as it gives

acomprehensive list of factors toconsider fordrawing up a structureof business plan foranonline

apparel store.


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ACKNOW LEDGMENTS

I would like toexpress mydeepest gratitude tomy guide, Dr. ShubhraGaur, whoverykindly took

timeout ofherbusy schedule to guideme inmydissertation.%

erexperience, support and guidance

havebeenof invaluablehelp in thecourseof this disserta tion.

I would like toalso thank all my friends, familyand respondents for giving mevaluablematerial and

guidance from time to time.

And of course, a special thanks to my parents. Thank you, Mom and Dad, for the love, care and

obviously for introducing me to this fascinating world of online-retail which inspired this piece of

workand for those in-numerous times you stoodbyme likemypillars .


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CONTENTS

Executive Summary................................................................................................................................................................... 2

Acknowledgments ...................................................................................................................................................................... 4

Contents .......................................................................................................................................................................................... 5

Introduction ................................................................................................................................ ................................................... 9

FlowofDissertation.............................................................................................................................................................. 9

ELectronicCommercial Activities in India ..............................................................................................................10

e-Tailing ...................................................................................................................................................................................11

Is E-Retail the futureofRetail? .....................................................................................................................................11

Does GenderhaveanEffect onOnlinepurchasing&

abits?..............................................................................12

TheChallenges................................................................................................................................ ......................................12

Apparel Shopping in India ...............................................................................................................................................14

LiteratureReview................................................................................................................................ ......................................15

Factors That Affect OnlineConsumer'

ehaviour.....................................................................................................15

The Price Factor..............................................................................................................................................................15

TheTrust Factor..............................................................................................................................................................16

TheConvenience Factor..............................................................................................................................................17

KnowledgeGap Identification .............................................................................................................................................19

Objectives andKey InformationAreas............................................................................................................................20

Objective(

..............................................................................................................................................................................20

Key Informationareas...................................................................................................................................................20

Objective)

..............................................................................................................................................................................20

Key Informationareas...................................................................................................................................................20

ExpectedOutcome...............................................................................................................................................................21

Methodology ...............................................................................................................................................................................22

ResearchDesign................................ ...................................................................................................................................22

Phase0

: SecondaryResearch.....................................................................................................................................22

Phase1

: PrimaryResearch- Qualitative ................................................................................................................22

Phase2

: PrimaryResearch- Quantitative .............................................................................................................22

Sampling Plan & Sample Size........................................................................................................................................23

Target Population ............................................................................................................................................................23

Total numberof respondents......................................................................................................................................23

Sample split .......................................................................................................................................................................24

Research Study ................................ .........................................................................................................................................25

Study 1 (Secondary Research) ................................................................................................................................ ....25

SecondaryResearch................................................................................................................................ .......................25


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Results of Study 3 ...........................................................................................................................................................29

In-Depth InterviewGuidelines ..................................................................................................................................30

Study4

(QualitativeResearch)................................ .......................................................................................................33

Qualitative Investigation ..............................................................................................................................................33

Findings andAnalysis of Study5

............................................................................................................................39

Results of St udy6

.........................................................................................................................................................42

Study7

(QuantitativeResearch) .....................................................................................................................................42

Quantitative Investigation ...........................................................................................................................................42

Findings AndAnalysis of Study8

...........................................................................................................................47

Results of Study9

...........................................................................................................................................................48

DiscussionandModel development ................................................................................................................................ .50

Conclusions from SecondaryResearch ................................ ......................................................................................50

Conclusions from PrimaryResearch ...........................................................................................................................50Model Development ...........................................................................................................................................................51

External factors ................................................................................................................................ ................................51

Internal factors .................................................................................................................................................................52

The@

usiness PerformanceModel ForOnlineApparel Stores .........................................................................55

Recommendations.....................................................................................................................................................................56

Conclusion ...................................................................................................................................................................................57

Limitations And Scope For FutureWork........................................................................................................................59

References................................ ....................................................................................................................................................60

Appendix ......................................................................................................................Error! Bookmark not defined.

AppendixA

: In-Depth InterviewGuideline ..............................................Error! Bookmark not defined.

Nonbuyer...........................................................................................................Error! Bookmark not defined.

Buyer................................ ....................................................................................Error! Bookmark not defined.

AppendixB

: In-Depth InterviewTranscripts ..........................................Error! Bookmark not defined.

AppendixC

: Quantitative Questionnaire ....................................................Error! Bookmark not defined.

Dissertation Report..................................................................................................................................... D

Submitted By........................................................................................................................................D

Dissertation Guide...............................................................................................................................D

Executive Summary.....................................................................................................................................E

Acknowledgments .......................................................................................................................................F

Contents ........................................................................................................................................................4

Introduction..................................................................................................................................................G

Flow ofDissertation ................................................................................................................................G

ELectronic Commercial Activities in India ..........................................................................................G

e-Tailing ....................................................................................................................................................G

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Results of Study 3 ................................................................................................................................I

ResultDiscussion and Model development.............................................................................................I

Conclusions from Secondary Research ................................................................................................I

Conclusions from Primary Research ....................................................................................................I

Model Development................................................................................................................................I

External factors ...................................................................................................................................I

Internal factors ....................................................................................................................................I

The Business Performance Model For Online Apparel Stores..........................................................I

Recommendations .......................................................................................................................................I

Conclusion ....................................................................................................................................................I

Limitations And Scope For Future Work.................................................................................................I

References ....................................................................................................................................................I

Appendix .......................................................................................................................................................

I

Appendix 1: In-Depth Interview Guideline..........................................................................................

I

Non buyer .............................................................................................................................................I

Buyer .....................................................................................................................................................I

Appendix 2: In- Depth Interview Transcripts .....................................................................................I

Appendix 3: Quantitative Questionnaire .............................................................................................I



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INTRODUCTION

FLO W OF D ISS ERTATION

Literature Review forKnowledge GapIdentification

Development of

Objectives andIdentification of KeyResearch Areas

Development ofHypothesis

Designing of Methodology,Sampling Plan and Sample SizeSplitDivision of the Research into 3 sub-studies

Study 1: Secondary Research Study2: Qualitative Research Study 3: Quantitative Research

Indian Market Study and TrendAnalysis

Study of Challenges faced

Literature on Website AttributePreferences

Development of DiscussionGuidelines Based on Findings

Launch of Questionnaire andgathering of responses

Factor Analysis on the DataCollected

Determining Drivers and Barriersof Online Shopping

Discussion Guidelines Finalizedand Interviews conducted

Why people purchase clothesonline

Why people dont purchaseclothes online

What do people prefer and loathein a website for apparels

Traditional shopping procedureand how it differs online

Development of Questionnairebased on factors culled out

Analysis of Other results: apparel

specific drivers and barriers,

shopping procedure, shoppinghabits

Analysis of Other results: websitepreference attributes, role of

ender

Result Collation and Final Analysis Of Insights and Findings

Suggestions and Recommendations based on Research

Premise Selection for Model Structure and Model Development


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ELECTRONIC COMMERCIALAC TI P ITIE S IN IND IA

Based on a report by Internet and Mobile Association of India (IAMAI) and IMRB International,

electronic retail or e retail is a term for any type of business or commercial transaction that deals

with the transmission of information across the Web. It covers an assortment of different types of

businesses, from customer based retail stores, through auction stores, to business exchange sites

between corporations.

E retail allows customers to electronically swap goods & services with no constraint of time and

distance. In the upcoming time the limits between "conservative" & "digital" retail will get fuzzyas

newercompanies moveparts of their services onto theWeb.

According to the report, wayofdoing business has been refining over thecenturies. Before the

evolutionofcurrency, it was a straightforward swapwhere stuffcouldbebartered, say grains for

cows. Theadvancement ofmoneybrought along with itself the initiativeofabazaar. Inabazaar,

Retail is definedby:

y Producty Costy Placey Promotions.

All these parts take part vitally for a transaction to ensue. Diverse combinations of the 4Ps fix on

diverse retail formats. After themarket came in tobeing, therewas a realisation that peoplewill shell

out additional currency in the event that they could transport products at customers doorsteps. A

slight alterationonCost & Place led to theexpediencyof getting products at theirhomes. This idea

thrilled thecustomers andhence, the ideaofQ

awkers came intobeing.

(Source: Internet R nd MobileS

ssociR

tion of IndiR

(IS

MS

I)R

nd IMT

B InternR

tionR

l, E-T

etR

il report for the yearU V V

8-V

7)

As the Postal Services were introduced, thepeople selling goods hogged the opportunityand began

sending mails withdepictionof their items. This gave rise to theOrderCatalogs. This in turn lay the

foundation stone forTele-shopping networks which also benefited from the advancement in media

vehicles. The newest form of retail can now beexecuted over the net. Web is a non-tangible space

wherepeoplewhowant to sell andpeople whowant tobuycan reachout toeachother in a market

andcan facilitatepurchasing of goods and services. People from farawaynations, speaking multiple

dialects etc. Can come and interact on this medium that has no limits and bounds in reference to

space. DistributionChannel has began toassumenew intending to theB-TO-C & C-TO-CeMarketer.

The Physical way of bartering is now digital exchange, products are now becoming digital and are


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showcased via online sites. As you can now pay over the net through banking cards, the end-

transactionhas alsobeendigitalized.

Anadditional imperative P for the seller, Promotions, gathered significance, in theabsenceofnose

to nose interactions between the buying and selling parties. The spotlight of online endorsement is

theenormous covenants, discount as well as expedienceofferedby theeMarketers.

TheB-TO-C/C-TO-CE-Retail canbeunderstoodas retailing ofmerchandizeandother services on

theNet. It canbe stated safely, that the internet has becomeaplatform for theexchangeandbuying

of services andproducts as well as making payments for themby thepeoplewhouse them.

The retail business in Indiahas gone through the following stages:

E-TA ILING

According to IAMAI definition, e-Tailing is the net edition of Retailing. In other words these are

online shops whereacustomercanpick fromavarietyofproducts ranging fromApparels todevices

tomusic to shoes as well as furnitureandeven jewe lry.

IS E-RETAILTH E FUTUREOF RETA IL?

As the economy of India grows, retailing over the web is expected to grow along-side it. As the

internet is gaining favourers as amedium forcommerce, a lot ofnewandoldcompanies are shifting

base online and gaining out of the process. This growth in adoption and usage will also fuel

Barter System

Monetry Transactions

Street Vendors

Mail order Cataloguing

Teleshopping

e-Commerce/ e-Tailing


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augmented demands for customization and will eventually lead to regionalization of content.

Though, today, it still seems pretty far-fetched.

DO ES GENDERHAVE AN EFF EC TON ON LINE PURCHASI NG HABITS?

A lot ofworkhas alreadybeendone in thedevelopednations onhow the two genders differ in their

usageandunderstanding of internet as amedium for tradeandbusiness. It is important tounderstand

this context and difference in the way they react to activities online, as most of the online stores

wouldbe replicas of thephysical stores whichhaveaclear target andcannot be generalized forboth

genders.

Evenwith shopping inphysical stores, it is commonlyknown that women like to shopwhereas men

donot show such inclinations towards shopping as ahobbyorpleasurableactivity. Whilemenhave

in researches beenproven tobe thinkers andcontemplators, womenhavebeen shownmore straight-

forwardand relinquishes of theprocess ofbuying stuff.

THE CHALLENGES

In this era, where InformationTechnologyhas penetrateddeep into the lives of thecommonpeople,

e-shopping forms an imperativemeans ofbusiness. The internet revolutionhas brought aparadigm

shift in theway things aredone. Thekey to success is howwell someone integrates this medium into

their business model (IAMAI Report,W

008). At the same time e-shopping presents several

problems irrespective of the product type. The most persistent challenge is the transaction security

(informationdisclosure)as well as privacyand issues whichwere found tobe significant obstacles to

the adoption of online banking (Chen & Barnes,W

008). According to Ha & Co gh ill,W

00 8 ,

informationdisclosure refers to

the dissemination of information about the goods/ service, business (contact number, registration

status) as well as transaction processes, including delivery, payment, warranty, refund, exchange

and return

And security refers to

the provision of a secure system for data as well as payment online. Privacy includes the

collection, use as well as storage of personal and financial details in a confidential manner

Furthermore, this anxiety over security issues is aggravated by the lackof awareness amongst the

peopleabout the securitynorms ofe-transactions. Such frauds arecalled identity thefts andaccount for


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32 percent of total complaints by the American customers as rep orted by the Fed eral Trade

Commission (Lopes, 2008).

Anotherdeterrent in the success ofe- shopping is lateandpoor delivery systems. A goodnumberof

complaints are lodged against slow, inefficient delivery where many customers have received

dysfunctional products. Many of them failed to receive their order in spite of having made their

payments.

An add itiona l shortcoming of e-shopping is the lack of customer central experience as is felt in

brickand mortar stores. This is an imperative factor for Indian e-customers whoarepartial to their

family stores andcrowded shopping streets as it gives themadistinctive shopping experiencewhich

onlinepurchasing cannot match.

Akeyadvantageofe-shopping is saving time. Peopleat thepresent time find it easy shopping online,as the items arehome-delivered togetherwith the facility to shop24x7 . Convenienceappears tobe

abig attraction as most online shoppers find the crowded high streets too stressful (Bhattacharjee,

2008). Wehaveproved these results empirically in the laterparts of this study. Onlinepurchasing is a

big attraction for theNRIs, theapparel and gifting business onlinehas maximumNRI customers.

A lot of studies goon toprove that despitea lot of badexperiences, people still gobackandmake

purchases over the net as they still feel that it has more positives to offer than negatives (Ha &

Coghill, 2008).

Compared tocountries like UnitedKingdom, United States, Australia, Canada and others, India is

still in its nascent stageofe-shopping. Thoughonlinepurchasing has witnessed growth in Indiabut

it is still not persistent like theWest and the growth is also limited tocertainareas likeonlinemovie

bookings andpossibly this evidently shows that maximumviolations were related tocatalogue sales

(45%)whileothers suchas e-purchaseofcars, clothing, anddigital products co nstituted X 7%.

Countrywise researchput United States, CanadaandUnitedKingdomas the top threeorganization

locations against which complaints had been lodged. This data proves that problems like

unsatisfactory servicedeliveryarenot confined toaparticular regionbut are generic toe-marketing

anywhere in the globe.

Themain hindrance in creating an online clothing market is the need for customers to touch and

feel andexamine theclothings fit and size (Gupta, 2008). Even thoughwebsites maymakeefforts

tobeas descriptiveas possiblebut if themindset andpsychologyof Indians is not revolutionized, the

apparel e-market can neverbe as s uccessful as in theWest.


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Thereare two types ofe-marketers, wholeandpartial. Theones whobelong to thecategoryofwhole

are not into in-store shopping business and are engaged in e-business only, such as eBay, Sasta

shopping. The partial e-marketers are those who have both an e-customer base and a non e-

customercustomerbase suchas, FutureBazaar, Pantaloons, Sifymall andmanymore. Leading retail

stores suchas Globus, Shoppers Stophavenil e-customerbases as theybelieve that theodds against

the success ofe-shopping ofapparels in Indiaarehigh.

APP AREL SHO PP IN G IN IND IA

Retailers in Indian, sensing theopportunity in theonline space, arenow jumping onto themoving train alongside

theirexisting physical storemodels whileemulating the strategy followedbyWal-Mart.

However it is not roses all theway. Many major retailers such as Shoppers Stop , Globus are still

focused on in-store customers as they have not succeeded much with the online model so far.

Pantaloo ns has o nlya small e-customer basewhile Shoppers StopandGlobus have littleor noe-

customerbase. It shows huge transitionchallenges, traditional mindsets of Indian shoppers andmany

moreas possible impediments in setting up theironlinepurchasing portals. Anotherpossible reason is

the critical size the internet consumers must reach in India before apparel purchasing can be a

popularmedium .


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LITERATURE R EVIE W

In a research, Teo et al. (2004) has related behavioural uncertainty and the specificity of assets to

transaction cost as positive influencers; while expedience and economic utility have been related

negatively to transaction cost in his study on customers in United States of America and China.

Dependability as a factor has a negative relation to transaction cost for United States of America

customers but that is not the case for customers in China. Similarly, the factor transaction cost has

been positively related to the customers willingness to purchase online for customers in United

States of America as well as in China. According to the research sited above, United States of

America customers are more sensitive to low product uncertainty, behavioural uncertainty, rigid

asset specifications, dependability, and are more inclined to expedience and economic utility than

theircounterparts inChina.

Theprevious literaturehas beenpreviewed inorder to find that what Spec ificConsumer Attributes

andOnlineBehavior need tobe identified. In theprocess, we gainedknowledgeof factors that are

ofhigh importance for theonlinecustomer.

FACTORS THATAFFEC T ONLINECONSUMERBEHAVIOUR

Price is a factor that is used in order to stimulate the customer and it has also been used as a

communicator, bargaining tool, andas acompetitivemeasure. Thecustomers on theotherhanduse

price for comparing products, judging value for money, and product quality (Brassington & Pettitt,

2000).

Trust has traditionally been considered to be a concern for the emotional basis of the customers

mind. Thecustomers focus on their safety needs and look to satisfy thembeforemaking anypurchase

(Brassington & Pettitt, 2000).

Convenience is considered tobeabenefit by thecustomerand is perceivedas apositive factor for

making purchases over the World Wide Web. It is therefore a motivator for online retail.

(Constantinides, 2004).

THE PRICE FACTOR

TheWorldWideWebhas given thecustomers acommon ground to gatherandcompare informationlikeproduct informationandprice. The technological advancements andpioneering business ideas of

the World Wide Web enable sellers to differentiate between buyers and enables buyers to

differentiate between vendors. Earlier, however, prices were set by negotiations after the

examination of the product (Kotler & Keller, 2008). The World Wide Web, in modern times,


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facilitates a scenario where comparisons can be done with ease, without having to know several

digital attributes and facilitates dealing with several vendors at the same time. For theprice sensitive

customer, internet is a good prospect, while another set of customers focus on being able to find

uniqueproducts whichhave specialized features and might be difficult topurchase offline and

forwhich, therefore, theymayevenco nsider thehigherprices as secondary.

However the internet allows onlydigital attributes tobeevaluatedby thecostumer, whereas offline

the non-digital attributes, (for which a physical scrutiny of the product is essential) can be

experienced (Lal & Sarvary,Y

` `

). This couldevenpersuade impulsive shoppers to grow tobemore

cautious about the merchandise as it can only be inspected digitally. In addition, when

purchasing online, extra costs such as freight charge, customs or extended delivery time can

manipulate the online customers pronouncement to reconsider the dea l even though the price is

small.

THETRUST FACTOR

Monsuwet al. (2004) stated that as theWorldWideWeb is acomparativelynewwayof retail, it is

tricky for the customers and for that reason perceived by the customer as precarious. They

additionally identify the salesperson to be a hushed source of t rust for the customer, and that the

customer is reliant on the salespersons proficiency. But since the salesperson has been made

impassive in online purchasing, the authors dispute that the foundation of customer trust has

vanished. They furtherelucidat e that thecustomer is not able toverify thequalityofanarticle, nor is

he able to scrutinize the safety of the safety measures when revealing delicate data. The authors,

consequently, conclude that if an elevated level of security and confidentiality is communicated to

thecustomer the result wouldhaveanaffirmativeeffect oncustomer trust and the intent topurchase

online.

Ifwe gobywhat Luhmann ( Y

79)says, witha sociological point ofexaminationon theconjectureof

trust, thereare3modes ofmaintaining prospects for theprospective-acquaintance, confidenceand

trust. Toexperience trust, acquaintanceandconfidenceought tohavebeenestablished. On theother

hand, trust is onlyessential when there is ahighapparent risk, suchas for the periodof apurchase

transactionorananalogous action.

An organization should show the customer that it is proficient in managing information and

sustaining thecustomer s ubsequent toapurchase. If it is able toachieve this, thecustomer is more

prone to "keep in trust relatedWorldWideWebbehaviors likepurchasing, cooperating, and sharing

information" (McKnight & Chervany, 2001-2002).


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THECONVENIENCE FACTOR

Convenience is whatever thing that is anticipated to save timeandnuisanceaccording to theDanish

National Encyclopedia. Auxiliarydefinitions of thenotionofconvenienceare:

y Theeminenceofbeing apt toones comfort, purposeorneedsy Individual comfort orbenefity Something that helps in increasing comfort or saves workat aappropriateor satisfying t ime

(Lexico Publishing Group [LLC], 2008)

Onlinepurchasing as a innovativemedium forbusiness creates anumberofdiverseadvantages. One

of these is that it is thought-out tobemoreexpedient to shoponlinecompared to the long-established

wayof shopping. Theattributes ofconvenience that online shopping presents are:

y Lessereffort:y Being enabled to shopat homey Time reductiony Being able to shopat whichever timeof theday

Azjen (as cited in Kim & Park, 1991) makes aclai m that online shopping provideexpediency

forcustomers suchas time savings andexploration convenienceas compared to thecustomaryway

of shopping. Kim and Park (1991) also dispute that if online shopping is alleged asconvenient for thecustomer, the customer ought toperceive adefinite amount of forbearancewith

accessing theWorldWideWeband withcarrying out theactivities with shopping online. The less

complication the customer perceives in dealing with the World Wide Web, the more consideration

thecustomerhas forentering theWorldWideWeband searching for information.

Supporting, the authors establish that there is an optimistic relationship linking the time spent, the

intent to shop online and the outlook towards the World Wide Web. Consequently, Kim and Park

(1993)come to theconclusion that the customers that trust the World Wide Web to beeffortlessly

accessible and used, would expend more time online, seek out information and also shop more

online. Consequently, the customers that perceive World Wide Web information exploration as

uncomplicatedwould thinkof it as moreconvenient. They furthermoreconclude that the information

online must be easy to stumble on and therefore, the retailer ought to build up effective search

paraphernaliawhichwouldenhance theprofessedbehavioral control for thecustomers online. Kim


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and Park (2004) dispute that the apparent acceptance of the World Wide Web is one of the

determinant customers considerwhen theydecideonconvenience.

Swaminathan et al. (2008) state that the customers individuality plays an imperative role in the

customer's choice to shop online. The authors then classify the hence called convenient leaning

customeras themost prospectiveonlinepurchaseer inviewof t he fact that they give significance to

theexpediencyof shopping at homeas a great motivation forpurchase.


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KNOW LEDGEGA P IDENT IF IC ATION

Many studies havebeenundertakendebating thepros andaconofe-shopping but nonehas focused

specially on apparel purchasing online in the Indian e-market. As the internet consumers are

increasing in the nation so is the awareness about e-shopping. Even though there is substantia l e-

shopping in thedomain of travel and movie bookings, digital products, etc. but the area of online

apparel shopping in India is under-developedand not studiedwell. Brands like Pantaloons andBig

Bazaarare in theprocess ofcontinually improving theironlinepurchasing portals andmight surface

theway forother retail brands whohavenot yet explored the e-shopping domain. Thus this research

opened up a topic which has not been debated as yet and was aimed at helping strengthen some

retailers belief in the success ofonlineapparel shopping in India.

The researchwas narrowed down to the Indian apparel industry and the study provided aconceptualmodel whichmight helpcertainbrands in launching theironlineportals.

Inviewof theabove, the following was covered through thecourseof the study:

y The cha llenges facing online purchasing, espec ially Indian online apparel shopping and theirproposedanswers

y Comparative analysis highlighting the wide disparity in the online purchasing culture inIndiaanddevelopednations

y Analyzing thecurrent apparel onlinepurchasing business in India y Studying thecurrent customerprofileofan Indianonlineapparel shoppery Conceptua l model and recommendation s for the marketers planning to start/upscale

onlineportals

Several hypotheses havebeen taken for the same, whichwill be tested empirically. The hypotheses

havebeenchosen such that whenvalidated, they shouldact as suggestions tobrands tohelp them in

planning a launchof theironlineportals.


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OBJECT IV ES AND KE Y INFORMAT ION AREAS

OBJEC TIVE 1

To determine the factors and attributes which influence online apparel purchasing behavior of

customers in India

KEY INFORMATIONAREAS

y What are theonlinepurchasing habits ofcustomers in India?y What are thecurrent onlineapparel consumption trends in India?y What are thekeydrivers forapparel purchasing online?y What are thekeybarriers forapparel purchasing online?y What are theperceiveddifferences inbrickandmortar format andonline retail ofapparels?y Are thepresent apparel retail websites customers friendly?y Is thereacurrent model ofapparel retail that canbeadoptedor replicated in India?y Does proximity to physical apparel retail outlets have a negative correlation with online

apparel purchasing?

OBJEC TIVE 2

Todetermine thecurrent characteristics andcustomerprofileofonlineapparel purchasers in India

KEY INFORMATIONAREAS

y Whats thedifference in theonlineapparel purchasing habits with respect toage group?y Whats thedifference inonlineapparel purchasing habits with respect to gender?y Dopurchasing habits ofworking professionals differ fromhouse-wives?


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EXPECTEDOUTCOME

y Profiling of the Indiancustomerwhocurrentlypurchases apparels fromonline storesy Profiling of thedrivers andbarriers foronlineapparel shopping in Indiay Suggestivemodel foranonlineapparel retail business (ifany emerges)


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METHODOLOGY

RE SEARCHDE SI GN

PHASE1: SECONDARYRESEARCH

The secondary researchwas conducted tounderstand

y The Indiane- retail industry, its trends, statistics andchallanges facedy WebsiteAttribute Preferences:

PHASE2: PRIMARYRESEARCH- QUALITATIVE

Basedon the trendand findings that will beunearthed in secondary research, a list of factors tobe

probed in-depthwill becreated. All theareas that emergeas important for the topicof researchwill

beencompassed intoa guideline forqualitative research.

Tools tobeused:

y In-depth InterviewsPHASE3: PRIMARYRESEARCH- QUANTITATIVE

In the quantitative research the findings of the qualitative research will be validated using a

questionnaire.

The following table includes all the threephases.

Informationarea Research

Method

ResearchTool TypeofAnalysis

Online purchasing habits of customers

in India

Secondary

research

Industry reports

and trends study

Trendanalysis

Current characteristics and customer

profile of online apparel purchasers in

India

Secondary

research

Industry reports

and trends study

Present apparel retail websites

customer friendliness analysis

(WebsiteAttribute Preferences)

Primary

research +

Secondary

Research

Qualitative: In-

depth interviews

Qualitative: to arrive

at factors tobe looked

at for questionnaire

design and model


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development

Perceived differences in brick andmortar format and online retail of

apparels

Primaryresearch Qualitative:

In-depth

interviews

Effect of gender on online purchasing

habits

Primary

research

Qualitative: FGDs

and in-depth

interviews

Correlation of gender

and purchasing

characteristics

Key drivers and barriers for apparel

purchasing online

Primary

research

Quantitative:

Questionnaire

Factor analysis to

arrive at key barriers

anddrivers

SAM PLING PLA N & SAMPLE SIZE

TARGET POPULATION

y Males and females agedbetween20-45yearsy Belonging to SECA1, A2andB1y Shopping enthusiastsy Age group: 20+y Geographical area: NCR region

TOTALNUMBEROF RESPONDENTS

y According to thedesignof themethodology, the total numberof respondents as expected ismentioned below. The expected sample split has been shown as a table subsequently.

Quantitative: 300

y In-depth interview: 20


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SAMPLE SPLIT

Methodology Tool Category Age-group No. ofRespondents

Qualitative In-depth Interview

User

20-30 2+2

31-40 2+1

40+ 2+1

Non-user

20-30 2+2

31-40 2+1

40+ 2+1

Quantitative

Questionnaire

User

20-30 30

31-40 30

40+ 30

Non-user

20-30 70

31-40 70

40+ 70


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RESEARCH STUDY

STUDY 1 (SECONDARY RESEARCH)

Objectiveof the study:As mentioned in themethodology section, the secondary researchwas done

tounderstand the following

y The Indiane- retail industryy and tounderstandwebsiteattributepreferences

Market Research Studies and existing Literature was reviewed and snapshots of the research are

mentionedbelow. The results andanalysis of the research follow subsequently.

SECONDARYRESEARCH

According to a report by Ernst & Young for IBEF (2010), the readymades and western outfits

market is growing at 40-45%annually, as themarket flourishes with international brands and fresh

entrants inwardbound to this segment creating an5billion rupees market for thequality grooming

section. The precedent few years have seen the sector align itself with global trends with retailing

organizations like Shoppers stop and Crosswords entering the fray to entice the middle class.

However, it is ball parked that this segment should grow toabout Rs. 3billion in thecoming three

years.

Online Penetration 18% (2010)

Percentage of online

purchasers

7% (2010)

Averageonline spending $71USDpercapita in2010

Average online tenure

(years)

3.5

No. of listed retail

companies

37

Top 3 domestic

companies based on

PantaloonRetail: $2.1billionUSD


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revenues Shoppers Stop: $305millionUSD

Vishal Retail: $292millionUSD

Outlook - Indias organized retail market size is estimated to be

$16.1 billion USD in 2010 and expected to have robust

growth rateof12-15percent for thenext fiveyears.

- India online retail market was valued at $0.23 billion

USD in2010and is forecast to reach $1.1billionUSDby

2014.

Source: Report byErnst & Young for IBEF (2010)

ON LINE MARKET

According toa recent report on the Internet in India [I CubeReport, 2010]publishedby the Internet

& MobileAssociationof India (AIMAI)and IMRB International, internet consumers in India reached

forty sixmillion in September2010and recordeda riseof41%over September2008. Out of these,

active internet co nsumers weres 32millionandmaximumconsumers were in theagebracket of18-

24years. An active internet user is a term used to define those people who access the internet at least

once a month.

The number ofconsumers of online purchasing which is a subset of internet consumers in India is

also growing as rapidly. The same IAMAI report states that the total online transactions are at Rs.

7,080crore (approx $1.75billion) for2008-09.Thebusiness has been forecasted to growby30% to

reachRs, 9,210crore (approx $2.15billion)by2010-11

(Source: http://trak.in/tags/business/2010/10/09/india-online-ecommerce-report).

The trendmentionedabove is alsovalidatedbyAssochamNewDelhi which is the apex tradebody in

India. In its report it has estimated online purchasing in India at Rs.5,600 crore ($1.36 billion) in

2008-09, recording an increase of 150% over and above Rs.2200 crores in 2008-09. The trend of

rising use of internet shopping has been more noticeable in metropolitans like Delhi and Mumbai

wherebothcustomers and retailers arenowequallynet-savvyand find themediummoreconvenient

andeasy forconducting business online, resulting ine-retail transactions augment byat least 140% ina single year. Not only have the metropolitans witnessed an increase in the number of online

shoppers. The IAMAI survey reveals that small cities are also witnessing increase in their online

purchasing activities.


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THE CHALLENGES

Co

nfidenti

ality

of tra

nsac

tio

ns,a

nd substa

ntia

tio

no

fa

ll par

ties, is imp

erativ

efor

ach

ieving

the level of trust that will allow suche -transactions to flourish.

Today, when InformationTechnologyhas becomeapart andparcel of the lifeofcommonpeople, e-

shopping forms an imperativemedium forbusiness. Thekey to success of theonlinechannel is how

well integrated this medium is withourbusiness model (IAMAI Report, 2008). In the samebreath,

e-shopping alsoposes several problems irrespectiveofproduct type. Themost persistent challenge is

the transactional security (pertaining to informationdisclosure)andprivacy. These issues havebeen

found tobe the significant obstacles to theadoptionofonline retailing (Chen & Barnes, 2008).

Theanxietyover security issues is further fuelled by the lackof awareness amongst peopleon the

securitynorms ofe-transactions. Such frauds areknownas identity (Lopes, 2008).

According to a survey conducted jointly by PayPal Inc. and Jupiter Research LLC, 62% of

respondents were reported saying they felt more secure shopping online if theydidnot have to type

theircredit card information, and17% said they spec ificallyhunted for websites that accept PayPal

and other reliablepayment means. In the absence of such security, the interests of the retailer, the

customer, as well as the thecredit institutioncannot bemet.

CO NSUMPTION TRENDS

Taking thehint from the rise inonlinepurchasing in India, several big retailers likeRelianceRetail

and Future Group (Pantaloon)have begun building up significant online footprints in tandemwith

their in-store or brick-and-mortar models, emulating the highly successful online-offline modelimplemented by Wal-Mart. Retailers like Reliance and Future Group have ambitious growth plans

and financial backing for setting upanonlinechannel tocash-inon the fast evolving e-retail market.

However many major retailers such as Shoppers Stop and Globus are still focusing on in-store

costumers as theydidnt have much success with theironline models as yet. Pantaloons has a very

small online customerbase while Shoppers Stopand Globus are still struggling with littleor noe-

customerbase. It poses huge transitional challenges to the traditional mindsets of the Indian shoppers

and formanymore retailers whoareplanning to set up theironlinepurchasing portals.

Another possibility is that internet consumers in India havent reached a critical size necessary

before apparel purchasing online can be a popular medium. According to Fabmalls CEO KVaitheeswaran, The internet penetration has to be first increased which is expected to reach 100

million in thenext twoyears. The industry is growing at the rateof30-40percent year-on-yearand

there is hugepotential forall brands


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DE SIRABLE WEBSITE ATTRIBUTE S

With the goal of proposing taxonomy of web-site features, and in that way aiding professionals intheirefforts toboost e retail and sales figures, the studyexploredonline shoppers preferences for18

different web-site features. These eighteen features werea subset of the23web-site attributes that

had been originally suggested byBlake and Neuendorf (2004) to provide readers a framework for

web-site appeal and assessment across different nations. The present study chose these specific

features among others as theyappeared topertain to several realms suggested in past studies to be

imperative to customers preference for aB-TO-C web-site. Later work byBlake, Neuendorf and

Valderserri (2008) evidently pointed out the merit of charting a broad range of features as they

existedacross awide selectionofweb-stores. Whenanessential set ofpreferredweb-siteattributes

is established, it timeandagainacts as ayardstick forpractitioners to gaugewhat customers value

ina niceweb-site, andas aheuristic for researchers to guide them in theirprospective investigative

endeavors.

y Theordering process is easy tomakeuseofy The goods I am looking forareeasy to locatey Thewebsite is newanddifferenty Product pricey Myassociates and relatives havebeenhappy tohave shopped therey

Reputeand trustworthiness of theorganizationon theweb

y It is enjoyable tovisity Low/nochargeondeliveryandhandlingy It has engaging graphics plus displaysy Provides merchandise information, including frequentlyaskedquestionsy A goodplace for finding bargainsy prompt customer service response timey I hear regarding it on radio, TVand innewspapery A returnprocedure that is easy tocomprehendandusey Price incentives (coupons, prospective saleproducts, frequent shopperprogram, etc.)


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y Previous experience with online purchasing (if any) What happened? Their experience-Tofindout about shopping experiences online

y Why theyhave never bought online? Possible reasons: Security, Inertia, someother reason-To findout barriers that respondents face in shopping online

y Awareness about sales promotions, other schemes runby the storey General likes anddislikes about onlinepurchasing. Badexperiences (ifany)

BUYER

y daily scheduley

If they have visited any online apparel shopping stores- to ascertain if they are the rightrespondent

y Whereandhow they gainedknowledgeof theonline-storesy What influences the respondent to go to that particular site- to findout possiblemotivatorsy Details of first purchase? Typeofproduct, valueof transaction, ifany Subsequent purchase,

the Time spent on that transaction will help in ascertaining purchasing habits of the

respondent

y merits and demerits of the online retail stores they have visited - To know what therespondent feels about anonline store.

y overall experienceof shopping forapparels onliney Unfulfilledexpectations from theonlinepurchasing experiencey Experiences with the above mentioned stores, with respect to delivery, response and

feedback.

IN-DEPTH INTERVIEWGUIDELINES

This part of the secondary researchwill help inunderstanding theexperience, perceived risk,

preferredwebsiteattributes andeffect of gender

INTERNETUSAGE

y Sincewhenhaveyoubeenusing the internet?y What all doyoudoonline?


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DIFFERENCES INON LIN EAN D PHY SICAL STORE(S)AND SHO PPING

EX PERIENCE

PREFERRED PURCHASEM ED IUM

y Fromwheredoyoumakepurchases?y What has yourexperiencebeen like?y Whats thedifference in shopping on this mediumvs. shopping online?y Whichone is betterandWhy?

WEBSITE ATTRIBUTE S P REFERENCE

EA SE- OF-U SE

y Navigationof thewebsite is easy.y Website is customizab le tomywant.y The interactions with thewebsiteare lucidandexplicable.y Thewebsite is supple to interact with.y Thewebsite is uncomplicated touse.

USEFULNESS

y The time taken for theonlinepurchasing process on this websitey Easeofpurchaseonlineon this website.y Usefulness of thewebsite inpurchasing theproducts or services they sell.

AT TITUDETOWARDS ON LINE PURCHASING

y Whether the ideaofusing this website topurchaseaproduct of service is appealingy How is theexperienceofpurchasing aproduct or serviceon this websitey Online intention topurchase

FEE LING S & EMOTION S

y Whydopeople shop?


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PAR TSTUDY2 (Q UA LITAT IVE RESEARCH)

Objectiveof study: this part of the research had two motives. The first one was to figure out the

motivating factors that buyers see in theexisting websites and the secondonewas to figureout what

deters non-buyers from taking that path. Eventually, these findings wereclubbed together todevelop

aquestionnaireandvalidatewhat was foundhere.

QUALITATIVE INVESTIGATION

SHO PPING PROCEDURE

not certain that an online shop can replicate the shopping familiarity, but perhaps we can

construct a kind of familiarity that encompasses some indispensable elements of that experience. It

would be enthralling to see.

Sameer, 3a

, Faridabad

am a man, I work hard & the last thing that I ever ev er ever require to do in my free time is shop

for clothes so perhaps I would use it no! I cant even shop for clothes online (sport, now thats a

different matter). My spouse does all of that & herein lies the problem with general & fashion

clothing experience.

b

ajesh, 44, Noida

Females love to shop, not because we like spending funds, but as other females like to shop. We

get to see what other females are purchasing, trends, fashions & things like how much funds other

females have. Secondly, when the spouse does purchase his clothing online, we will order 5 dresses,

purchase 1 & send the other 4 back. I do know that this is replicated in plenty of households

Vandana, 4 c , Noida

Shopping on the net increases the risk of being indignantly let down by your purchases as

you are able to try on the garments there & then without having to lose sleep about whether

the size is exact or whether the style & color go well with you. All in all, online shopping is an

appalling idea!

Deepika, 24, Noida

To me online shopping is staying indoors in front of a PC screen & rousing all of society

to get lazy habits. Going out to purchase clothes for example provides a chance to meet up

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with a mate, have a nice chat & at the same time walk around. Fresh air & exercise come in to

deed through this while with e-shopping it is not a lot fun to see friends.

Astik, 19, Delhi

In India, e-retailing is a little bit complicated. Shopping is an outing here. It is not

essentiallyanunpleasant task.

Santosh, 36, Gurgaon

ISSUE S WITH ON LINE APPARELWEBSITE S

Hereare someof theuser responses:

Issues have chiefly been with badly designed or dawdling online stores.

Anita, 4d

, Noida

Lack of direct dealings & things like phishing assaults & scams that can be seen online.

Chetan, 3e

, Delhi

If something is holding back e-retail it is the pitiable delivery services which only reach your

house when we are all at work.

.I have been debited seven times even one time when I have bought one item. Check your credit

card bill carefully. You may, like me, start to speculate if the reduction in purchase cost is significant

with all the trouble which can be associated with web shopping

f

omy,g

h

, Noida

Lack of a trial room,

f

amesh,e

3, Delhi

"Buying online things like a white shirt, which is more of a commoditized product, is fine. But,

then one ought to not expect an Indian to purchase a designer suit or a sari."

Atul Pradhan, executive directorof KPMi

India

I am petite and a kind of "in-between size", so I must try everything on in-store. I've seldom

bought any apparel item for myself without trying it on first.

Astha,e

6, Noida


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I would likely not be a target as I would see having to return something that didn't fit by shipping

it back is more of a pain than taking a trip to a store and trying something on. A answer for me

would be a situation where I found something and could order it the next time around online as I do

know it works for me.

Suneet, 34, Delhi

WHATATTRIBUT ES P UL LYO UON LINE

A product range that is comprehensiveA Web-site that is simple to find, simple to navigate,

fascinating & innovative An order fulfilment method that delivers the right goods speedily

Prices that are competitive & that bear comparison to competitors

A surety that payment transaction is secure through the use of encryption.

The availability of an order tracking systems that will permit the customer to check on the

progress at any given time.

Web shopping is great! It lets me purchase things from the United States which I can't get here! I

can purchase books which go unreleased in India, I can purchase CDs which go unreleased over

here (or in case you find them as an import, they are one times the cost), & I can purchase DVD's of

movies that are relatively new! superstore shopping over the Web can plausibly replace 10 cars

going to the store with just one delivery van - shrinking both traffic and pollution.

Angad,p

3,q

urgaon

A backup customer support facility that is conversant about customer needs & the product range

of the business - & who resolves issues promptly & effectively.

Pulkit,p

8, Noida

I tend to purchase clothing from online retailers that also have a brick & mortar parts, so

returns, when needed, are simple. I can return them at the store. Usually I will reorder something

that doesn't fit and/or return the item at the store for a refund. There is one place I do shop for

clothing that doesnt have a retail store. With the shoe e-tailers I frequent, we offer free shipping

both ways. This is imperative. I also prefer places that offer upgraded shipping options at no extra

cost.

Suneeta, 3r

,q

urgaon


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If one is purchasing lingere online, then the net site must be interactive for the finish user,

product information ought to be useful & straightforward to navigate & most importantly, th e site

can/should be custom-made.

Nupur,s s

, Noida

One other thing that helps me "pull the trigger" - saving the basket even if I am not logged in to

my account. Its lovely to come back to a site a day later & see my stuff there. That usually

encourages me to purchase it.

Jaya,s

t

, Noida

ON LINE V/S OFFLINE

I also like to purchase online as I don't must deal with traffic & parking.

Sometimes the item I'm looking for isn't at my local store but online.& now that gas is more

pricey, you save on gas costs. Not to mention the time costs of actually driving to, parking & then

going in to the store with a myriad of other people.

Vinayak,u v

, Delhi

I time and again discover a better option in my size online & earlier or better sales on brands

that I'm liking.

Namrata,u w

, Noida

Convenience I get the size I want in the color I want without having to fight traffic and/or

crowds on the chance that the store has what I want in stock.

x

ahul,u

y

, Faridabad

In case you know what you wish for or are bendable about what you want then the Web has some

lovely points (cost). But in case you want to be specific (the right color or the right fit) then you

cannot replace seeing it first in a shop & you at all times know where to take it back to Why shop

in a brick & mortar store? So that I could try things on & evaluate the brand's fit & the fit of various

styles then shop online as needed & purchase products in different colors, possibly for less money &

possibly even different styles. Knowing how a brand /style fits a woman is key to making this work.

You're speaking to a former intimate apparel fitter. I do know how difficult making intimates fit is. It

is technical...

x

itu, 3w

, Meerut


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MO TIVA TIONAL FACTORS FORBUYERS

The other things that I order are things I cannot get here, reliably or at all.

For example, the

trainers I prefer are not stocked anyplace here in town. Road Runner Sports gives me free shipping,

and they ALWAYS have my shoes in stock Since i know the size I need, ordering is a breeze.

Manas,

, Delhi

I like shopping online. What a time saver, no need to go to those large ugly malls. Prices are

competitive,

Manish,

7, Noida

.I do not must 'touch' everything I order. I dont order from a place whose products are not

known to me, however. I stick amid the tried and true.

Divya,

6, Noida

If a organization mis-represent their goods or their product, it is simple to return.

I ought to note that I don't usually purchase new brands that I have seldom tried on before. I tend

to stick with the same 4-5 brands of shoes and 10 brands of clothing.

Then there is the other part - sometimes sales online are better than in-store.

The nature of my job does not constantly let me go shopping when the shops are open. Also, I

must work in areas where sometimes there is very small choice. It gives me a supple contingency to

get hold of things when in such a situation.

You go to the store, and find the ideal pair of shoes, except that they dont have the m in your size,

or in the color that you need. So I go online and make the purchase

Latika,

,

urgaon

DETERRANTS FORNON-BUYERS

WH YDO NTTHEY PURCHASEAPPARELS ON LINE

More often than not, only after I've taken the time to shop, select products, and laboriously fill

out the online purchase form, I find out that the process won't accept a foreign customer. This is

truly annoying! An example is when what I input keeps on getting bounced back and tells me to key

in my state, or even worse that they dont sell to India

Naina, 3 , Noida


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most of us require feeling the material, trying on the garments, etc before they purchase. Food

shopping through the net is great, as well as digital products since they can see from the specs what

is obtainable, but products that necessitate a personal touch will forever be better in shops...

I've some issues getting the proper sizes so if I can purchase a pair of pants with the proper

inseam, I do know they will fit and I don't must have them hemmed. Big savings in both time and

money for me

Aman, 3

, Noida

I would not shop at department stores online for clothing, but I could see some reasons to do so

if I knew what I wanted. It would be less hassle an d a positive thing to get the right size. But I'd must

know what I wanted, I think. Picking color choices from computer pics only can be tricky. I've

shopped online for things I could purchase in a store for less or at least without shipping, as I doknow it is in stock online.

Angad,

3,

urgaon

You shop online, and try to discover a pair of pants and a shirt that match, except that its hard

to tell how they will look together I dont think that Ive ever purchased clothes online, but I might

be tempted with a process like this if it provides a much greater amount of choices than local stores.

Personally if augmented reality is obtainable (with several privacy issues dealt of work) I would be

one of the FIRST to use it as I personally detest going to different clothing shops and trying 10

denims and stuff like that.

Anita, 4

, Noida

.if someone cant leave home for certain reason, he/she who would probably appreciate

something like this. I've only purchased three times on the net and would not purchase clothing - it

is costly and the freight costs are high. Also, like catalogue sales it is much of a hassle to return

products

Sameer,

7, Noida

I gave up, as the online stores were slow, customer support dire, and it is cheaper and simpler to

go to the market.

Suneet, 3

, Delhi


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FINDINGS ANDANALYSIS OF STUDY2

SHO PPING PROCEDURE

The standardprocess followed for shopping has beenexp lainedbyadiagram givenbelow .

Although, internet provides fora largenumberof search andde liberation options, thedec ision

making is tricky . Forclothes, people generallypreferad viceandcompanywhile shopping.

Similarly the evaluationphase is alsonot rep licab le.

In thehigh involvement categories, theco nsumers are still very reluctant i nmaking on line

purchases if they arenot enabled with thecompleteandexact informationabout the item. It

creates a situationwhereonly theperson selling the item is theonlyonewho holds thecomplete

details and it creates anduneven ground for retailing. The traditional way of retailing is free

from this bias.

ISSUE S WITH ON LINE APPARELWEBSITE S

Shopping is still a touch-feel-tryoccurrence-quitea lot of i ndividuals do not experience lackof

timeand shopping is till todayaconcept of going on anouting. Hence this typeof surroundings

creates anargument ofcustomer retentio n.

Comfort is mandatory. This will be theprime test sinceevenwithin the unchangedvendor; there

aredissimilarcuts, fabrics and feel. In the enhanced stores, there is someonealways checking on

how yourcollection fit so tha t theymay go rummagearound foraenhanced fit or style foryou

exc lusiveof youhaving to re-d ress andhu nt formore.

Abrick-and-mortar fitting roomhas several features that thenet spacehas still not beenable to

emulate:

y Combining: It lets thecustomer to seehowdifferent clothes look togethery Size/Fit: It lets thecustomerascertain theyarepurchasing the right sizey Feel: It lets thecustomer to "feel" the fabric

Recognition ofneed

SearchDeliberatio

nDecision Purc hase Evalu atio n


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y Personalized Stylistics: The customer sees if the garment suits his/her skin tone, hair,character

y Body shape fit:whether the garment will look lovelyon thecustomers body typey Recommendations:amateor salespersonoutside the fitting roomwill provide the feedbacky Comfort: customer would feel how tight the garment is, or whether it's allowances for

movement;

y Salesperson:active sales efforts providedby the salespersony Atmosphere: brick-and-mortar experience has sounds, music, s mells (like the smell of the

new leather), emotions;

y Feeling of security by reducing risks:customer shouldbeconfident that the item theyaregoing to trywill be theone that theywill bepurchasing & theone they 'll not need to return.

WHATATTRIBUT ES P UL LCU STOMERS ON LINE

Ifaonline retailermanages todeliverall theabove factors througha secureonline store, thenhe

wouldbeable to sell apparels onlineandwou ld encourage thecustomers brand loyalty for that

particulare-tailer. It is therefore in the interest of the e-tailer tohaveaco nsistency inproduct

range tha t theco nsumerunderstands, rather than spread ing the rangeand in turndiluting their

service. E-tailing as away of trade is here to stayand it is for to thee -tailers tomakecertain tha t

it thrives. However, this is still not acomprehensive list andwill be followedupwithmore

findings

FOREX ISTING BUYERS OF APPARELS ON LINE

y Online retailing is comfortablewhere traditional retailing is cumbersomewitha lot of stepsandefforts involved

y The internet has awider reach. Hence it solves the following purposeso Larger repositoryofproductso Varietyandvariants are largero It has a larger reachandproducts not available ina regionbecomeaccessibleo It can make available sizes and shapes that physical stores cant stock due to

limitations of spaceand supplychainconstraints


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y It is morecost-friendlyas it eliminates cost of travelling andoffers a rich sourceofdeals anddiscounts

y It is customizable foreach individual throughdatamining techniques

FORNON-BUYERS OF APPARELS O NL INE

WH YDO NTTHEYBUY APPARELS ON LINE

y Adaptation tochange in purchasing behavior is slow: Indians are still hesitant topurchaseonline and have a preference for brick & mortar models. Indians still prefer feeling the

product and spend timebeforemaking thepurchase.

y lackofability ofonlineretailers in swaying customers away from offlineapproach toonline retail channel : need of appropriate promotions and commercials, inability to

engender a brand picture, lack of appropriate usage of all viable online means like search

engines, paidads, onlineendorsements, social networking, blogs toarriveat thecustomers.

Inability of online retailers to impel the principles a customer can derive by shopping on

onlinechannels.

y Onlineretail stores are not up to speed :There is been few glitches in theexiting onlinestores like not-so-good front ends, web-site search options are not lovely, deficient

informationabout products as well as terms& conditions, sluggishonline stores etc

y Why not clotheso Touchand feel of thecloth is importanto Recommendationofhow it looks onme is importanto Seeing the fit is importanto Trying multiple items beforechoosing one, is importanto Exploring various colorand stylecombinations is importanto The fits, sizes and styles varywithbrands in India


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RESULTS OF STUDY2

Following the literature reviewand thequalitative research, it was noticed that themotivational as

well as concern factors specific to Apparel Purchases onlinehad surfacedconsiderablywell during

thequalitative study. Therefore, only general motivational andconcern factors linked toonline

purchasing wereprobed further throughquantitative studyandapparel purchasing relatedquestions

werenot included in thequestionnaire.

QUESTIONNAIRE GU IDE LINE S

Thequestionnairepreparedhad2parts. In the first part therewere25 statements and31 statements

were there in the second half. The respondents had to rank each statement on a5-point likert scale

(interval type scaling method.)with1as stronglyagree and5as stronglydisagree.

The second sectionof thequestionnairewas made tocollect the respondents personal information,

how long theyhavebeenusing theWorldWideWeb, how frequently theyuse it, theirexperienceof

onlinepurchasing etc. The responses were then subjected toa factoranalysis.

STUDY3(Q UANTITA TIVERE SEARCH)

Objectiveof the study: To findDrivers andBarriers ofOnline Shopping ofApparels in India

QUANTITATIVE INVESTIGATION

Total numberofRespondents: 132

Haveyoueverbought clothes online?

Yes 30 23%

No 10277%

Gender


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Male 7758%

Female 5542%

AgeGroup

less than30years 11789%

31-40years 5 4%

more than40years 10 8%

Sincewhenhaveyoubeenusing Internet

less than2years 1 1%

2 to5years 6 5%

5 to7years 2922%

more than7years 9673%

Howmanyhours adaydoyou spendOnline?

less than2hours 1411%

2 to5hours 5642%

5 to8hours 2720%

more than8hours 3527%


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STA TISTICAL TECHNIQUE USED

SPSS Version 15.0 was used for conducting a Factor analysis to find the Internet consumers'motivationandconcern factors with respect toonlinebuying ofapparels in India

FACTORANALYSIS TABLE FORDRIVE RS

variablescomponent

1 2 3 4 5 6 7

1. access tovast information 0.804

2. customizableanddetailed

information requirement 0.77

3. Internet availability throughout

theday 0.667

4. wide rangeof items available 0.665

5. abridged requisite formediators 0.595

6. deliverypricementioned 0.537

7. Merchandizeprices mentioned 0.813

8. Special deals andoffers

mentioned 0.806

9. shopper servicecontact number

mentioned 0.75

10. Websites aremodernized

frequently 0.731

11. supplementaryeye-catching

promotions 0.625

12. Websites get loaded fast 0.506

13. Nocrowds tohandle 0.797

14. No trafficcongestions 0.742

15. Noharassment ofqueues for

payment 0.732

16. Reducedwaiting time for

searching products 0.502

17. Convenient ordering process 0.751

18. Additional product ranges to

select from 0.746

19. Deliveryoforders is in good 0.715


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quality

20. Product returnoptions 0.597

21. Orders adhere todelivery time

promised 0.794

22. Moreconvenient to shopon the

Internet 0.794

23. Credit-cardownership 0.57

24. Requires lessermovement to

locate goods 0.585

25.Availabilityofproducts on theWorldWideWeb that cannot

be found locally 0.5

Total Initial EigenValues 13.267 3.187 1.82 1.53 1.374 1.087 1.065

%Rotation Sumof Squares 14.547 13.623 10.545 9.203 6.028 4.05 3.398

FactorAnalysis Table forBarriers

1. My data can be sold to

others 0.805

2. My personal information

may be shared with other

businesses without myconsent 0.787

3. Others can seize my

communication 0.694

4. My credit card possibly

will beover-charged 0.691

5. Wrong useofmypersonal

information by Internet

merchants 0.687

6. Uncomfortable giving my

credit card number on the

WorldWideWeb 0.634

7. I might get overloaded by

unwanted spam 0.656

8. Product delivery to 0.521


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someoneelse

9. I don't trust digital-

signature 0.762

10. Limited credit card

organization offer online

payment 0.612

11. I prefer indigenous

businesses 0.592

12. No familiarity with

digital-signatures 0.557

13. Cant see the actual

product 0.503

14. Product quality is tough to

evaluate 0.709

15. Higher taxes for foreign

orders 0.678

16. Limited post purchase

support 0.636

17. anxious about buying from

un-reputed firms 0.572

18. information on product

returnnot mentioned 0.508

19. Congestionofwebsite 0.691

20. Web pages are not up-to-

date 0.675

21. Unavailabilityof shipment

to purchasers from other

countries 0.647

22. Security undertaking not

mentioned 0.602

23. Cant trace the desired

product 0.573

24. Freebie itemnot useful 0.551

25. Payment methods are a

limitation 0.541

26. Slow speed of net 0.664


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connection

27. time taken for

downloading information is

long 0.602

28. Nocredit-cardownership 0.669

29. deliverance time is long 0.525

30. Complete organization

information is not disclosed 0.811

Accurateproduct information

is not available 0.803

total initial eigenvalue 17.111 2.537 1.871 1.401 1.312 1.101 1.088 1.029

% rotation sumof squares 13.194 11.273 9.911 9.005 5.943 4.512 4.318 4.231

BASIS OF DATA ANALYSES & DISC USSION S

In the study conducted, based on the responses gathered from the questionnaire (Appendix3), the

motivational factors hadaco-efficient of0.9477which surpassed the recommended valueof0.70

byNunally (1977). Thedec isive factorused for establishing the factors tobe minedwas an eigen-

value greater than equal to 1. Statements with factor-loading of more than 0.5 on that particular

factorwere judged fitting gaugeof that factor.

FINDINGS ANDANALYSIS OF STUDY3

From the FactorAnalysis (Refer toAppendix5), theDRIVERS foronline shopping ofapparels in

India (indecreasing orderof impact)are:

y EaseofAccessy Trust of Sourcey Convenient Processy Delivery Parametersy Provision for Socializationy Ability to Search y Availability


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From the FactorAnalysis (Refer toAppendix6), theBARRIERS foronline shopping ofapparels in

India (indecreasing orderof impact)are:

y Threat toprivacyy Reluctant towards changey Lowqualityofproductsy Issues of Securityy LackofTrusty Low/SlowConnection speedy Options ofmaking paymenty Lackofcomprehensiveproduct information

RESULTS OF STUDY3

Each organization is contending with the other for retaining bonus customers or the slightest for

holding on to theexisting customers. Theadvancement of ITand the spurgeof the ICT systemhas

drastically altered the local infrastructure and associated them with the global players. Briefly, the

brisk dissemination of Internet services into the business-related field has set the stage for the

surfacing ofnewerbusinesses, innovative service-offerings, and innovations inentrepreneurship. The

existing hi-tech improvement in the World Wide Web spacehas been the reason for a new way of

retail. It has cultivated the fruitionof thenewnotion: Digital Retail.

The PC savvycustomers areknownas "techno-savvy", as a result Webcustomers areamong the first

ones to embrace E-Retail. The internet provision is beneficial to the customers in countless ways,

which encompass easy accessibility to info, suggestion-based character of the Internet and internal

linking settings. These enable theconsumers to search in d

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