Online commerce might be doing well in India. But it still is a potential that has not yet been realized. The reason for this, fundamentally, is very simple. It's just not trustworthy enough to consider spending money online.
Online is convenient, it offers price comparison, ease of purchase and saves time. Having said that, its plagued by counterfeits, theft, damaged delivery, incorrect specifications and price manipulation. To add to it, there are frauds in the form of incorrect reviews, no customer support or accountability.
Some products are probably worth buying online since they sometimes are sold online exclusively. While others are commoditized and are of low price and hence do not have the risk of being counterfeit. But trust is still an issue. I share an example of headphone purchase. I had been to a Sony showroom and enquired the price for a headphone model. I told the sales rep that the same was available for a discount only. He said that firstly, the parent company had not offered any discount to retailers. Secondly, it might just be a counterfeit. He then proceeded to show me a two headphones and asked me which one was genuine. Frankly, at a glance they both looked the same and could have passed as two pieces of the same model unless he had mentioned that one of them was a fake. He identified the fake one for me and showed me the cues to its fakeness ... low quality hinges, ear pad quality, minor design variation and finish. And we haven't even spoken about the quality of hardware inside or the quality of sound. I asked him how he got the fake piece. He said that one customer walked in with that piece saying it had an issue and wanted the company to repair or replace it. He was shocked to know that the purchase he made on Amazon was fake. People don't realize that the products sold on Amazon are mostly from sellers and Amazon has limited control over what is being sold.
Ever other user has either himself faced an bad experience or knows someone who as. In such a scenario, they would rather purchase something online only when -
- Its on a discount
- Is offered by manufacturer
- Is low in price
- they know it would not be faked
Again, these are perceptions. All four points can be deceptive.
A regular brick and mortar shop is real, accessible, providing competitive rate and are (many a times) open to bargaining. More important, you can check before you buy and you can bring it back if faced with any issue. In many cases, they handle the warranty issues for the customer too.
I think the future must be a combination of online and offline experience. Purchasing a product online and picking it up from the local story near your area. online stores like Croma Retail and Reliance Digital are already following these practices and although not very popular, I think this will be a more trustworthy way to go and also ensure that brick and mortar shops do not go out of business.
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