Brick-and-mortar Retailers Need Not Fear Growing Online Shopping Wave In India

Online retail accounted for $2.3 billion, less than 1 percent, of the total retail sales in India in 2013. This figure disproves some industry observers' worry that e-commerce will bring doom to the brick-and-mortar retail market in the country. Unlike their counterparts in China and the United States, e-commerce retailers in India do not enjoy an important competitive advantage over their brick-and-mortar rivals. While online retailers do not have to deal with high rental costs, they have to pay for high IT, logistics, and storage costs. By adopting a multi-channel strategy, traditional retailers can take advantage of the growing popularity of online shopping among consumers.