The heavy discounts on online retail has once made the multi-nation giants to literally ban warranty or after sales services to check the fall in price of these commodities, they even went ahead to issue consumer advisory mails to refrain them from purchasing online. But the tide is with on-line marketing, the recent trends of exclusive e-commerce launch is the exact opposite in the nature of what these giants had done earlier. They now have come to the terms that rather then ignoring India's potential as an e-commerce market, their benefit lies in adopting the change. And there comes "Digital Sales Presence"
So what is the "Digital Sales Presence"? The digital sales presence is the expansion of sales network of these giants over the digital space, ie- online. Amongst the market place and inventory led model, India fits best for the first one, and these adopting players are now consciously tying up their retailers with the e-commerce players, as for instance Sony has tied up with Snapdeal, and more such development will happen in the near future. This new strategy will enable the stakeholders to have larger, untapped consumer base, but at the cost of marginal decrease in profit per unit.
But what about the Brick & Mortar retailers, is this just the beginning of their downfall. Because obviously they would find themselves at constrained margin levels or even that quantum may further decrease. So what should be their answer to this?
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