Brick and mortar vs ecom

Agenda

• What is Brick and Mortar model?

• When and where brick and mortar model is used?

• Pros and Cons of offline/traditional store

• E-commerce & E-Business

• When and Where online model is used?

• Pros and Cons of online store.

• Online Model Vs. Brick Mortar

• Facts and figures

• Case Study

• Conclusion

What is Brick and Mortar Model?

• A traditional "street-side" business

• Face to face with customers.

• Physical presence (rather than virtual or online) such as bricks and mortar.

• Example: The local grocery store

3

When and where brick and mortar model is used?

• Where online retail services are not available

– e.g. small cities.

• People are not in touch with technology

• When products are of lesser amount Consumer does not want to pay delivery charges.

• Needs the product on urgent basis

• Customer wants to check the product before buying and does not trust online retailers.

Pros and Cons of offline/traditional store

ProsNumerous optionsFace to face communicationTouch and feel productDirect and less confusionEasy to get or return the product

ConsNot all stores accept all modes of payment.Parking issues.Price issues.Wait in queue at the cash counter

When and Where online model is used?

• Short of time

• Discounts for branded products

• Ready to wait for the product to get delivered

• Quick decision of buying

– compare the prices, quality of variety of products

Pros and Cons of online store

Pros

Convenience.

Better prices.

Variety of products.

Discounts.

Send gifts

Fewer expenses

Comparison of prices

Compulsive shopping

Buy old or unused items at low prices

Cons

Physical feel of items missing

Out of stock problem.

Delivery risk.

Mishandling while shipping.

Shipping charges.

Online IS issue.

Online fraud.

Dull shopping experience.

Spyware on your PCs

Online connectivity issues.

E-commerce Growth

<1% of the total retail market in India

The Indian E-commerce market

scale was evaluated around $16

Billion in 2013 and is expected to

reach $56 Billion by the fall

of 2023

The growth rate has touched 85% mark till now and in next ten years, it is projected to acquire 6.5% of the total retail market if India.

Clicks v/s Bricks

• E-commerce sales have grown to about 6% of total retail sales (excluding gasoline and food services)

• Brick and mortar retailers still control between 94% and 97% of total retail sales.

Clicks v/s Bricks

Brick-and-mortar stores account for the bulk of India's $600-billion retail market, a majority of which is unorganized.

E-commerce's share is still a minuscule 3-4%.

Clicks v/s Bricks

11

Clicks v/s Bricks

Click’s aren’t hurting bricks ,for now

Brick and mortar model stores are feeling heat from e-commerce players only in few categories, but that does not mean they can

become complacent.

Dell using Online model

Dell using Traditional model

Conclusion

Thank you for your patience…