Is Traditional Retailing Overshadowed By E Tailing Marketing Essay

Today, the usage of the cyberspace is non merely limited to online chatting, societal networking and web surfboarding but, it has now penetrated into the concern field every bit good. Corporations and concern individuals, who used to carry on their concerns on the footing of traditional brick-and-mortar model, are now switching towards e-commerce. This research is fundamentally conducted to estimate the tendency of how the online retailing has evolved in the past few old ages and predict the future chances of on-line retailing in comparing to traditional retailing. The motivation behind this research is to find whether or non on-line concern is presenting any menace to the brick-and-mortar companies or have any potency of deteriorating their market portion in close hereafter, maintaining in position the consumers penchants. For this intent, three major beginnings of informations will be analyzed to make decisions: literature reappraisal of articles found on the cyberspace, a study questionnaire to garner the responses of consumer in the local market, and a focal point group.

Keywords: Retailing, E-tailing, development of e-tailing

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Electronic retailing which involves the merchandising of goods and services to the consumer market via the cyberspace is besides called e-tailing in the concern to consumer ( B2C ) market. The outgrowth of this electronic retail market has been rapid. Businesss that operate on physical shop forepart are now get downing on-line operations with web based store front. Reason being, they are confronting huge competition from those enterprisers who are coming up with new concern thoughts and selling them on the cyberspace therefore, capturing considerable market portion rapidly as compared to traditional retailing patterns. Both the consumers and sellers are towards electronic commercialism because of its built-in benefits. For consumers, the web can supply entree to a broad scope of merchandises and services with low cost, extended and trim information, at-home convenience for merchandise comparings. Sellers can profit from new retail theoretical accounts, increased gross revenues, and enhanced consumer relationships.


The electronic retail market is emerging at a rapid gait, spread outing range in footings of people and location, and assortment of information. The web offers benefits for both sellers and consumers. For consumers, the Web can supply entree to a broad scope of merchandises and services with low cost, extended and trim information, at-home convenience for merchandise comparings, enhanced interactivity, and ease the formation of practical communities ( Internet users with common involvements ) . Sellers can profit from lower existent estate-related disbursals, improved market research, new retail theoretical accounts, increased gross revenues, and enhanced consumer relationships. During the past few old ages legion e-tailing startups have appeared, seeking new market chances. ( Wang, Fang ; Head, Milena ; Archer, Norm, 2002 )

In today ‘s dynamic and fast growth universe, one the most cherished trade good is clip. Therefore, the major lending factors that drive the manner in which consumers make determination of where to shop are convenience and easiness. It was a research conducted by the British Council of Shopping Centers to measure the growing of cyberspace shopping in Britain and to find the manner in which the web is impacting the purchase tendencies of people. Their ignition point was that people who expect to pass 40 hours making Christmas shopping ; they could make the same online in merely few hours. The research took this stance and estimated that by the twelvemonth 2015, on-line gross revenues will about 11 % of retail gross revenues in Britain. Music and picture sector was seen as the most purchased merchandises on-line and it was expected that its gross revenues would be about 50 % of entire retail disbursement. This will do the emerging online retail merchants to take a major ball of the market portion from physical retail merchants. No Doubt, they have to conflict it out with on-line shopping web sites and supplement their physical gross revenues with internet gross revenues. ( Jen Syrkiewicz, 2008 )

Minutess related to digital media were expected to be more than one hundred billion dollars in the twelvemonth 2006 in the USA. The proportion of minutess conducted electronically represents about 10 % of the full local market. It indicates that the online shopping in the USA is towards a lifting tendency. Approximately 33 % of the population who shop online, use search engines to seek the inside informations of the merchandise or service they are interested in. One of the pulling characteristics of the online shopping is that people prefer word of oral cavity when it comes to the choice of a peculiar web site or a company for the intent of on-line shopping. ( Charlie Stack, 2006 )

A study was conducted harmonizing to which 85 % of the people used the cyberspace to do a purchase online, which is an indicant that the online shopping tendency is bettering twenty-four hours by twenty-four hours. The study besides claims that at least 50 % of the people around the Earth are actively take parting in on-line shopping. The figure of on-line shoppers around the Earth has increased from 627 million to about 875 million in the last two old ages. It is found that people chiefly from Korea, Germany, UK, Japan, and USA are really fond of on-line shopping. Keeping in position the lifting tendency of on-line shopping, several fabrication houses are modeling their selling schemes in such a manner that will pull more and more clients online.

The hereafter of retail shopping is frequently threatened by the germinating telecommunications engineering that enables people to shop in practical shopping environments from assorted locations. It is because of the rapid evolvement of the cyberspace in the recent old ages that concern minutess are conducted on the cyberspace electronically. No affair people were provided with catalogues and telecasting advertizements which was some kind of non-store shopping, but in on-line shopping consumers are provided with multiple picks, lower monetary values, convenience, and more dynamic artworks on the cyberspace.

Making a purchase over the cyberspace is merely one of the several activities that e-commerce enables, and it is known in the market as “ Online Shopping ” , Cyber Shopping ” or Internet Shopping ” . Merchants or retail merchants, who used to sell their goods and services via traditional shop forepart, are now prosecuting in electronic retailing. Companies like or pure-play companies, sell their merchandises merely via the electronic media and do non possess any physical shop forepart. In order to vie, traditional retail merchants are now traveling towards web based store retailing instead than trusting merely on brick-and-mortar shops. Because, online shopping tendency is presenting a serious inquiry to the endurance of brick-and-mortar companies, it is a major concern for the traditional retail merchants in the approaching hereafter. ( Nielsen Company, 2008 )

The outgrowth of the cyberspace shopping along with increasing estimations of gross revenues growing has brought into inquiry the impact of electronic retailing on traditional store-based shopping. During the old ages 1997 and 1998, analysts belonging to assorted industries estimated that gross revenues related to e-commerce showed an addition of 300 % to 600 % from between $ 1.5 billion and $ 2.5 billion to $ 5 billion and $ 15 billion. In a study conducted by Jupiter communications in 2002 showed that on-line gross revenues, at the lower terminal, were about 1.4 % of entire retail gross revenues. Much of the available literature on the impact of cyberspace retailing shows that the mentality for store-based shopping is inexorable, opposing e-tailing in a conflict against traditional retailing. ( Meegan K. Massagli, 2008 )

Online shopping would convey a displacement in the shopping form of people with the transition of clip. Peoples will travel towards online shopping because it offers the benefit to shop from any distant location at the individual chink of the mouse. He farther predicts that the retail merchants who own and operate traditional physical shops should see about diversifying their operations over the cyberspace to vie in the market. Because, with the outgrowth of cyberspace shopping, the pattern of traveling to the vicinity shop or shopping promenade to purchase some necessity or even a luxury, is about to take a displacement towards on-line buying. ( Wadsworth Kent, 1997 )

Nielsen Company conducted a study in 2008 sing the online shopping tendency, it found out the popular merchandises that people purchased over the cyberspace. It includes books, vesture, accoutrements and places, pictures, DVDs and games, and air hose tickets. It was observed that the per centum of people purchasing books online was well increased from 34 % to 41 % in the past two old ages. Besides, a big addition was observed in people purchasing apparels and apparel online from 20 % to 36 % .

The fast turning popularity of on-line shopping is non merely a regional phenomenon but is genuinely a planetary phenomenon. Peoples who shop online can be found all over the universe, but the major concentration of on-line shopping can be jot down in a sequence in footings of use of cyberspace for shopping. South Korea is on top where about 99 % of the cyberspace users have shopped online. German, UK and Nipponese users fall in the close second. US users are a spot loath in doing on-line purchase in the sense that they have an analytical mentality and come at figure eight. Whereas, people who are far behind in cyberspace shopping or are slow adoptive parents come from Egypt, where 67 % of the people who use cyberspace have ne’er made a purchase over the cyberspace. Followed by Pakistan ( 60 % ) and the Philippines ( 55 % ) . ( Nielsen Company, 2008 )

A study conducted by the manager of Management Horizons Europe ( MHE ) in 2000 sing the tendencies of on-line shopping in UK. The findings showed that the cyberspace shopping was turning at a rapid gait as 40 % more consumers were shopping online at the twelvemonth beginning. About 3.5 million online purchases were made in the summer one-fourth as compared to 2.5 million in the last Christmas one-fourth in 1999. This research concluded that the consumers in UK were progressively towards the e-commerce activities. ( Robin Bevan, 2000 )

The cyberspace shopping tendency is seeable non merely in books, vesture and air hose industry, but it has been implemented in nutrient industry every bit good. In 1999, a grocer launched an online web site named Peapod. Peoples can see this site and order the food market merchandises they want. Selected points were drawn from a close supermarket ironss and the order was fulfilled. Consumers could order anything they want including frozen nutrients besides. Another similar web site was launched which was meant merely for frozen nutrients. It was a Seattle based company that offered frozen nutrients via practical market and fulfilled bringing through logistics installation. Consumers can shop for their favourite frozen points right from their places. ( Sharon Wishnow, 2000 )

A research sing the Asia-Pacific online shopping forms, tendency and future growing, was conducted by Master Card Worldwide Insights in the twelvemonth 2008. The major findings of the research are as follows:

Shoping via the cyberspace is a turning tendency in the part, where about 63 % of study respondents answered that they shop online at least on occasion.

Online shopping is driven by cyberspace incursion, income degrees and cultural factors.

Handsome growing in online shopping is expected in China, India and Thailand.

E-commerce related gross revenues in Asia are estimated to turn at an one-year rate of 23.3 % , making $ 168 billion in 2011. It is expected that China will catch the US market in footings on cyberspace minutess this twelvemonth.

The research was tailored in a manner to estimate the purchase behaviour of people in different parts of Asia-Pacific. Among the major parts, more than 50 % of the respondents had security issues with cyberspace shopping, more than 40 % preferred to look the merchandise physically. These were the two major hinderances in instance of online shopping that came frontward as a consequence of this study. Apart from this, general perceptual experience about cyberspace shopping in the part revealed that 71 % of the users perceive on-line shopping to be more convenient, with 62 % of the respondents claiming that online shopping is much easier than shopping via offline catalogue and telephone. ( MasterCard, Inc, 2008 )

A recent study on the United States e-commerce gross revenues estimations shows that online retail disbursement is near $ 34 billion for the first one-fourth, which is 10 % greater than last twelvemonth ‘s one-fourth. Major high spots from Quarter 1 are: ( Score Com Inc. , 2010 )

Growth in the first one-fourth was preponderantly driven by upper-income consumers, with disbursement among the $ 100,000+ household income section up 14 per centum.

Pure drama ( online-only ) retail merchants continued to derive e-commerce disbursement market portion from multichannel retail merchants.

Larger online retail merchants continued to bring forth higher growing rates than smaller retail merchants, but the smaller retail merchants are eventually get downing to see positive growing one time once more.

It can be observed from the above mentioned facts that online shopping/retailing is deriving impulse with the transition of clip. Peoples are progressively purchasing assorted merchandises and services online because of the easiness and convenience of the cyberspace shopping over the shop based shopping. Therefore, 0nline shopping tendencies are demoing a consistent rise due to the great response from people. In approaching old ages, the Numberss proposing the development of the online shopping tendencies are expected to lift alarmingly.


Our research methodological analysis comprises of questionnaire study and focal point group. Quantitative facet of the research is gauged through questionnaire consequences and qualitative facets are analyzed through focal point group findings. We collected a sum of 120 study responses from people belonging to pupil, employee and concern profession. In our focal point group, we selected family consumers, adolescents, homemakers, and few on the job adult females. Focus group was conducted to obtain direct information sing the sentiments of different people about cyberspace shopping in Pakistan that can non be quantified but should be analyzed in order to estimate the impact of qualitative facets on this shopping g tendency. The focal point group was conducted at Cafe Coffee Day Zamzama on 10th November 2010. And the questionnaires were circulated through electronic mail.

Analysis OF DATA


Questionnaire responses showed that out of 120 respondents, 44 % of male respondents and 19 % of female respondents prefer on-line shopping. Reasons given by them for preferring on-line shopping was convenience, clip economy, and recognition installation. 20 % of males and 17 % of females did non prefer shopping over the cyberspace because they prefer to look at the merchandise physically and besides because of security issues over the cyberspace such as recognition card information larceny and information hacking. Peoples from different age groups were surveyed and it is observed that largely people in age group 21-30 store online, more than 50 % of the study population is in this age group and it prefer on-line shopping because of diverse assortment, convenience, clip economy, and recognition installation.

When surveyed people from different professions, it is observed that pupils and employees make on-line purchases the most, 32 % and 26 % severally. Because cyberspace allows them to shop while sitting at their topographic point, order online and supply convenience, clip economy, and recognition installation. Most popular merchandises or services that are purchased online in Pakistan are Airline tickets, books, apparels, jewellery, tickers, package, games, and electronic contraptions.

Frequency of shopping online is besides gauged by inquiring people who prefer on-line shopping how many times they do internet shopping. The consequences showed that out of 75 people who opt for online shopping, 47 people at least bought something online one time a month, 16 people make an on-line purchase twice a month, and 8 people make on-line purchases on hebdomadal footing. The overall market image of on-line shoppers vs. retail shoppers came out be 37 % people non preferring online shopping due to security concerns and deficiency of touch and feel, while approximately 63 % of the people prefer shopping over the cyberspace. It can be assumed that the major proportion of the population is following cyberspace as a agency of shopping in Pakistan.


The hazards associated with giving out recognition card Numberss and personal information was voiced. They were based on the experiences of some close friends, and intelligence they had read about recognition card frauds. However, none of them had of all time experience recognition card fraud. Peoples by and large shopped online due to convenience ; to salvage clip and conveyance, due to handiness of book and non worrying whether a book was in stock.

At times people preferred to shop online because they were in a haste, at other times it was because they could afford to wait out the bringing clip of web sites. They besides preferred to purchase from a site they trusted which was reputable ( e.g. Liberty Books, Amazon, eBay ) . If there were no other option so, harmonizing to two participants, they had no issues about purchasing from an unknown site.

E-books were besides mentioned which are digital books and available for purchase online. They are besides perceived to be much cheaper than ordinary books, though two participants objected strongly to holding to read books on the computing machine as they preferred the comfort of a cup of java and a sofa/bed.

Delivery clip was an issue for merely some participants. Interestingly, most participants preferable online shopping because it was much cheaper than traditional shops. Some people besides mentioned some price reductions they availed particularly through utilizing recognition cards of specific Bankss.


Through the analysis of questionnaire consequences, it has been found out that 63 % of the respondents prefer on-line shopping. On the footing of our analysis of primary informations we accept the Ho that most people prefer on-line shopping because of convenience and clip salvaging properties. There is a correlativity between cyberspace shopping and the security concerns in supplying confidential information over the cyberspace, and the clip it takes to present the merchandise from the day of the month of order arrangement. Largely people in age scope 21-30 are more towards online shopping, which implies that immature coevals is molded towards e-shopping One of the most outstanding drawback of online shopping is that it does non offer physical touch, and this characteristic makes retail shopping more outstanding than e-shopping.

Peoples in Pakistan are really sensitive about the physical properties of a merchandise, so it is a cultural impact on the shopping tendency of people in Pakistan. In Pakistan the tendency of on-line shopping is in its constitution stage. Harmonizing to our research major barriers that we came across which are making fuss in set uping on-line shopping tendencies are prefer to look at physical merchandise, security concern etc. Peoples who prefer on-line shopping is due to deals/discounts offered, monetary value, assortment, clip salvaging etc. In Pakistan most sold points online are Airline Tickets, Sofwares, Books, Cell Phones and now games. PS3 has increased tendency of on-line shopping.


Security is chief ground behind people being hesitating in on-line shopping so options shall be planned consequently. Efficient anti spyware package should be provided to the consumers to guarantee protection of their personal and credential information from being hacked. Proper monitoring should be implemented by web service suppliers and internet service suppliers to assist consumers guarantee protection of any kind of online larceny or unusual activity.

Pay Order, Demand Draft Cheque figure option must be given in order to ease payment methods. Consumers should be given the flexibleness to pay for the merchandises or services they buy online through assorted payment options. Companies should invent a scheme to pull consumers by offering them to pay for the merchandise through check or even hard currency at the clip when merchandise is delivered to their topographic point. This will do on-line shopping more attractive and safe in the sense that people will non fear about losing their recognition card information over the cyberspace.

Customers shall hold test period with return back option. In order to get the better of the issue of deficiency of physical touch of the merchandise in on-line purchases, companies could invent a policy that the merchandise sold online to consumers can be returned within a hebdomad or so, if the consumers do non happen it suited or comfy. This could ease the consumers by supplying them with a opportunity of holding physical contact with the merchandise they looked for on the cyberspace.

Assorted price reductions can be offered on purchase of more than one point. Regular consumers, who shop online on regular footing, should be provided with multiple trades and offers in order to maintain their involvement alive in cyberspace shopping. Selling schemes for cyberspace shopping demand to be developed to pull more and more possible consumers.

Bargain option shall be available for all clients. There should be such a system where clients can give their monetary value and do some deal before the concluding purchase. This is a feasible scheme because in shop based retailing, people have a wont to dicker with the store individual. If such a mechanism is introduced in electronic retailing where people can dicker, it will give them a feel that online shopping is no far different from traditional shop based shopping and finally it will heighten the popularity of electronic shopping.


Having claimed that cyberspace shopping is turning at a rapid gait, research can be carried out in order to find new ways to advance cyberspace shopping.

A research could be conducted to estimate the losing characteristics of cyberspace shopping that the consumer ‘s are willing to acquire.

A research can be conducted in the field of cyber offenses and determine assorted ways to extinguish the menace of internet security.

Research can be conducted sing the psychological science of the people in the sense that what sort of merchandises they prefer to purchase in shops and so offering the same merchandises online.

A research can besides be conducted in the same mode to estimate the hereafter of cyberspace shopping in Pakistan maintaining in position the rapid evolvement of cyberspace engineering.

One of the of import facets of cyberspace shopping can be researched in the sense to estimate the extent to which traditional retailing can be transformed to pure on-line retailing. Up to what extent companies and enterprisers can revolutionise shop based shopping into cyberspace shopping.

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