Vineet Gill, TNN Oct 29, 2013, 07.15AM IST GURGAON: As malls and markets complain of lower footfall, online retail stores are bucking slump and slowdown to report a healthy growth in business, an indicator of big opportunities for the fledgling concept of e-commerce in India.
A host of e-commerce firms, several of them operating out of Gurgaon, have seen growth figures soar, a trend that may seem counter-intuitive in the present economic scenario. "We have seen growth of 30-40% in terms of revenue," says Nikhil Rungta, chief business officer of Yebhi.com, an e-commerce firm with offices in Gurgaon.
Unlike 'offline retail', this relatively new model of selling through the internet finds it easier to attract customers. The online sector, according to Rungta, has also managed to understand the market better. "Online deals are more attractive to consumers because we aren't offering cash-back or vouchers, but real discounts," Rungta says.
But it's worth remembering that the key factor is an expanding consumer base. "This is a fairly nascent stage for this sector. And we're getting a lot of new customers, who have balanced things out in relation to the macroeconomic scenario," says Praveen Sinha, co-founder and managing director of Jabong.com.
Amarjeet Singh Batra, the CEO of OLX India that runs olx.in, echoes the point about new business opportunities for online retail. "We're in our growth phase and are constantly seeing new users coming to our website," he says.
But to infer that this sector as a whole has remained immune to macroeconomic highs and lows would be a mistake. "There are a lot of e-commerce companies that have shut shop in recent months because they were unable to finance their operations. However, it is wrong to assume that the total e-commerce market in India is in decline. The market continues to grow tremendously," says Tushar Ahluwalia, co-founder of StalkBuyLove.com.
