Of this, just about Rs 5,000 crore worth of business is organised. In percentage terms, e-tailing is a mere 0.3 per cent of the total retailing business in India. Online retailing should be somewhere between Rs 500 crore and Rs 1,500 crore in the next five years. As e-commerce is a function of Internet penetration, online retailing will be extensive in countries where Internet penetration is high. That means the Scandinavian countries, the USA and Japan.
Internet is a superior alternative.
In India, it will be a mixture of e-tailing and retailing that will work. With the passage of time, companies will have to address more than one way to reach the consumers. An e-tailer would like to strip out costs in the supply chain. A website for a company is certainly an add-on. It is yet another way for a company to reach its consumers.