Shops lose business due to emerging online shopping trends

Online selling booming and affecting the sales of physical stores in this festive season by giving more blockbuster offers.

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Pantaloons store displaying festive offers at Elements Mall
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Attractive offers driving people towards e-commerce websites
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Blockbuster deal on the online website Flipkart


Bangalore, October 17, 2017: Increase in online sale of electronics and clothing this festive season leads to a slump in the sales at physical stores.
“The heavy discounts given by the online shopping websites lure customers into buy products online,” said Store Manager of Croma, Kalayana Nagar.   

Shop owners consider online shopping sites as their biggest competitor and holders of huge market shares. “Online sites like Amazon and Flipkart are our biggest competitors. We have to incur huge losses to compete with them. But, at times, the discounts affect the quality of the products and that is one factor physical shopping is still in operation,” says Store Manager of Croma, Kalayana Nagar.

Store Managers often face criticism from customers for not selling products at the same price as online websites.
“Almost every customer who walks in asks why we aren’t selling products at cheaper rates as online sites. We can only give 10 per cent discount, more than that we cannot afford. And if we go online with our products, we have to share the profit margin with many intermediaries, which is risky for our business,” says Shiva Owner of, gadget accessory store.
He says that during last festive season they had earned about Rs 4,00,000, while this year it is Rs 2,00,000.

Clothing brands like Pantaloons, which also has an online website, is witnessing a slump in sales due to websites selling items at cheap prices.
“I prefer shopping online because it saves my time and also there is always a discount at some or the other website. Adding to it, I find more variety in products at online sites which is hard to find at physical stores.” said Puja Reddy who prefers shopping online.

“Websites like Myntra, Amazon and Flipkart are our competition. Many a times, customers show us the same product online at a cheaper price and question us. Even we have an online portal under our brand but very few people know about it,” says Syed Ahmed, Store Manager of Pantaloons.

 “Physical shopping can be stressful for many people due to traffic and parking issues, deadlines at work and family responsibilities. Online shopping is providing a virtual platform to busy people, where they can shop in cool comfort of their residence avoiding strenuous driving in busy traffic. Many prudent online shopping portals are offering excellent discounts for quality products and services with return of their products if customers are not satisfied,” said Seshadri Sesha Bhattar, Business administration Professor at North Eastern Regional Institute of Management.

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