A of the consumers. Need for the study:

A Study on Changing Trends
in Online Shopping of Consumers in Apparel Segment of Hyderabad

 

 Objectives of the Study

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1. To study the
preferences of the consumers in apparel segment of online shopping.

2.To study the
driving factors of consumers who shop online.

3. To evaluate the
various modes of payments used by consumers online.

4. To evaluate the
scope and challenges of fashion in apparel in Hyderabad.

5. To provide suggestions to improve the
online buying experience of the consumers.

 

Need for the study: The
study mainly focuses on customers from Hyderabad. This study helps to identify
the popularity of online shopping, need for virtual markets, their role in
influencing the consumer behaviour and patterns, merits and de-merits of
e-marketing and major players in online retailing.

 

Scope of the Study: The
study is confined only to online users from Hyderabad. This study has been
conducted to analyse the changing trends in online shopping in the apparel
segment, and the preferences of the consumers in online shopping and the
changes happening in this sector over the past few years.

 

Research Methodology

Sources of data: The method of study involves
collection of data from primary and secondary sources.

Ø  Primary
Data

Structured
questionnaires were distributed to customers who shop online.

 100 questionnaires were circulated widely
through direct mail and contact.

 

Ø  Secondary
Data

For the purpose of analyzing the effect of consumer
behavior, secondary data has been collected from various websites, journals and
books

Sampling Design

1.    Sampling frame: individuals between 15 years
to 60 years.

2.    Sampling unit: Individuals in Hyderabad using
online shopping.

3.    Sample size: 100 respondents

4.    Sampling method: Random sampling.

 

Limitations of the study

1.   
The study is
limited only to apparel sector

2.   
The study
was confined to Hyderabad only.

3.   
 

 

REVIEW
OF LITERATURE

According to Bhatnagar,
Misra and Rao (2000), they analysed how demographics, vendor/service/ product
characteristics, and website quality influence the consumers, their attitude
towards online shopping and consequently their online buying behaviour. They
report that the convenience the Internet affords and the risk perceived by the
consumers are related to the two dependent variables (attitudes and behaviour)
positively and negatively, respectively.

According  to Sultan and Henrichs (2000), they studied
and concluded that the consumer’s willingness to and preference for adopting
the Internet as his or her shopping medium was also positively related to
income, household size, and innovativeness.

According to Miyazaki
and Fernandez (2001), perceived risk affected consumer online purchasing
behavior negatively. They also found that Internet experience is negatively
related to the existence of concerns regarding the privacy and security of
online purchase and the perceived risks of conducting online purchases.

According to Schiffman,
Scherman, & Long (2003) in their study researched that yet individual
attitudes do not, by themselves, influence one’s intention and/or behaviour.
Instead that intention or behaviour is a result of a variety of attitudes that
the consumer has about a variety of issues relevant to the situation at hand,
in this case online buying.

 Shergill and Chen (2005) conducted a study on
‘Web-Based Shopping: Consumer’s Attitudes Towards Online Shopping in New
Zealand’ The model included several indicators belonging to four major
categories; the value of the product, the shopping experience, the quality of
service offered by the website and the risk perceptions of Internet retail
shopping. The study concluded that regular web buyers were much more satisfied
with all website variables than trial web buyers.

Sorce et al. (2005)
found that younger consumers searched for more products online and they were
more likely to agree that online shopping was more convenient. This study was
conducted on behaviour of youth in Malaysia.

 Wang, Liu and Cheng (2008) conducted a study
on the Influencing Factors of Online Shopping and documented that consumers
think it to be risky to make online payments. The consumers were also expecting
a higher level of privacy in online shopping. This study was conducted in China
and the Chinese consumer’s experience with the internet and computer skill was
also found a factor influencing the consumer behaviour.

Norazah Suki and
Norbayah Suki (2009) conducted a study on ‘Cellular Phone Users’ Willingness to
Shop Online’. The study suggested that marketers should propose more on
attractive promotion such as advertisements or discounts through the web.

Chowdhury and Ahmad
(2011) conducted a study on ‘factors affecting consumer participation in online
shopping in Malaysia’. The major focus of the study was to describe the
relationship between independent variables and dependent variable using
Pearson’s correlation method. The limitation of this study was that it only
used four variables (ability, benevolence, integrity, and trust) in explaining
the consumer participation but did not take other important variables into
account (e.g., cost switching vendors and the presence of third party. The
study provides a useful insight on the significant role of trust in students
for online shopping.

 Yulihasri, Islam and Daud (2011) conducted a
study on ‘Factors that Influence Customer’s Buying Intention on Shopping
Online’. The variables that were tested included usefulness of internet
shopping, ease of use, compatibility, privacy, security, normative beliefs,
self-efficacy, attitude and student’s buying intention. Pearson correlation
analysis provided statistical information about the relationship of each
independent variable with dependent variables. It was studied that web
advertising favourably influences the purchasing of a company’s products.

Karim (2013)
conducted a study on online shopping behaviour of customers and documented that
online vendors can assure their consumers for transaction security and avoid
long delays in completing online orders and the hassle of returning goods for
better online shopping experience.

Morris (2013)
conducted a study on ‘More Consumers Prefer Online Shopping’ Shoppers
increasingly want what’s called a “seamless omnichannel experience,” meaning
one in which retailers allow them to combine online and brick and mortar
browsing, shopping, ordering and returning in whatever combo they would like.
With the increasing size, more demand by youth and change in the behaviour of
youth towards shopping has clearly indicated a huge market is available to the
incumbents and existing performers. And at this stage it is important to
understand the buying behaviour of Indian customers towards online shopping
which is mandatory for a great marketing strategy by the players in this
industry. The size and growth rate of this industry was never like this before.
And considering all this, the present study has made an attempt to understand
the online shopping behaviour of Indian customers.

Prof. Ashish Bhatt
(2014) in article entitled “Consumer Attitude towards Online Shopping in Selected
Regions of Gujarat” published in Journal of Marketing Management stated that
online shopping is gaining popularity among people specially the younger
generation but in today scenario to become equally popular among all age groups
e-marketing will have to cover a longer distance. As per study mode of payment
is depended upon income of the respondents. People from different age groups
are doing online shopping regularly. The attitude of consumers is changing with
the time. In a country like India, consumers are finding online shopping very
comfortable because of many variables like cash on delivery, customization or
personalization of the websites, home delivery etc.

Prashant Singh (2014)
in his article “Consumer’s Buying Behaviour towards Online Shopping A case
study of Flipkart.Com user’s in Lucknow City” published in Abhinav stated that
future of e-retailers in India looking very bright. E-retailers give consumers
the best way to save money and time through purchasing online within the range
of budget. Flipkart.com offering some of the best prices and completely
hassle-free shopping experience. The whole concept of online shopping has
altered in terms of consumer’s purchasing or buying behaviour and the success
of E-tailers in India is depending upon its popularity, its branding image, and
its unique policies.

 Upasana Kanchan, Naveen Kumar and Abhishek
Gupta (2015) in their article “A Study of Online purchase behaviour of
Customers in India” Published in ICTACT Journal on Management Studies stated
that online shopping is gaining popularity among people of young generation.
Higher income groups and educated people are purchasing more via e-retailing
websites. People have hesitations in doing online shopping due to security
concerns. At the same time people are resistant to change because of
technological complexity in making online purchase. Companies involved in
online retailing should focus on building trustworthy relationship between
producers and customers.

 

 

INDUSTRY PROFILE

Introduction Online shopping is the process whereby
consumers directly buy goods or services from a seller in real-time, without an
intermediary service, over the Internet. It is a form of electronic commerce.
The sale or purchase transaction is completed electronically and interactively
in real-time such as in Amazon.com for new books. However in some cases, an
intermediary may be present in a sale or purchase transaction such as the
transactions on eBay.com. An online shop, e-shop, e-store, internet shop, web
shop, webstore, online store, or virtual store evokes the physical analogy of
buying products or services at a bricks-and-mortar retailer or in a shopping
centre. The process is called Business-to-Consumer (B2C) online shopping. This
is the type of electronic commerce conducted by companies such as Amazon.com.
When a business buys from another business it is called Business-to-Business
(B2B) online shopping. A large percentage of electronic commerce is conducted
entirely in electronic form for virtual items such as access to premium content
on a website, but mostly electronic commerce involves the transportation of
physical items in some way. Online retailers are sometimes known as e-tailers
and online retail is sometimes known as e-tail. Almost all big retailers are
now electronically present on the World Wide Web. Online marketplaces such as
eBay and Amazon Marketplace have significantly reduced financial and
reputational barriers to entry for SMEs wishing to trade online. These
marketplaces provide web presence, marketing and payment services and, in the
case of Amazon, fulfilment. This allows SMEs to focus on their core
competencies e.g. managing supplier relationships. Moreover, SMEs have choices
online, as these marketplaces compete with each other (some retailers sell
across several marketplaces) and retailers’ own websites. They also compete
with paid search providers and others in providing marketing to SMEs. 3
Customer ratings are a key element of the marketplaces, enabling SMEs to build
a reputation at low cost relative to the offline environment. This element of
reputation may be achieved quickly (just one piece of feedback generates a
rating) and is tied to particular platforms (i.e. ratings are
non-transferable).

Advantages of Online Shopping

Online shopping is a form of electronic
commerce whereby consumers directly buy goods or services from a seller over
the Internet without an intermediary service.

  1.
Easy to Find: Finding a product online is much easier than looking for it in
the local store. You can search any product easily by using the search engine
feature of an online shopping website. But in store you have to look for it
until you find it. 

2. Products can be cheaper: Sometime a
product can be much cheaper in another country than your country. In this case
it would be wise to shop online to save some money. 

3. Save time and energy: You don’t have to
waste your time in going to store and standing in front of the crowd. 

4. Freedom of choice: Freedom of choice is
very high in online than shopping from a nearby store. In online you can choose
the product you are looking, from a vast range of products.

5. Freedom of price flexibility: You will
enjoy the freedom of price flexibility. If you don’t like the price of a
product from an online shop, you can switch to other online store to look for
cheaper price. 

6. High satisfaction percentage: Now a days
shopping online is very reliable. The percentage of satisfaction is very
high. 

7. Buyer protection: Dependable websites like
Ebay provides buyer protection to motivate people to buy from their site. This
highly trusted websites will give your money back if any seller do not deliver
the item or deliver an item which does not match with the description.

8. Rare product: Shopping online is very
useful in buying rare products. 

9. Privacy: There are some products which you
don’t want to buy publicly. You can buy any kind of product from online web
store anonymously to maintain your desired privacy.

10. E-business: The progress of online business
is actually helping millions of people. Now people can buy and sell from their
home. People who cannot afford to buy or rent a shop, can easily open an online
store and sell items from their home. This is playing a very important role in
reducing the unemployment rate.

 

Disadvantages of Online Shopping

 1.
Delay: The main disadvantage of online shopping is, you cannot receive the
product immediately. You have to wait until the product arrives. Sometime it is
better to have an item instantly than keep waiting for it for many days. I
would prefer to buy an item instantly if the delivery time is too long.

2. Inferior product: You don’t know about the
actual quality of the product. Sometimes the description of the product might
be different than the actual product. As a result you might end up with
inferior quality product.

3. Shipping Charge: Shipping charge and
shipping delays are one of the main disadvantages of shopping online. Items are
generally cheaper in online web store. But sometime the addition of shipping
charge makes the price similar or more expensive than your nearby local store.

4. Delivery Problem: Sometime you may face
Delivery risk. Delivery risk occurs when the seller fails to deliver the
original product or delivers a damaged (inferior/duplicate) product due to
shipping problems.

5. Shopaholic: Since it is very easy to
search & purchase different items very easily and quickly from online, many
people ends up being an online shopaholic. That means they buy too many things
they actually don’t need. Online Shopaholic people thinks they are saving money
because the cost is very low when you shop from online, but sometime it’s
actually a waste because you don’t need them. 

6. Scam: As online shopping is becoming very
common the number of online scam and fraud is also increasing. This is why a
buyer should always buy from trusted websites only because trusted websites
would take care of any fraud to maintain their reputation.

7. Some items are better to buy from the real
Store: You wouldn’t like to buy any clothing products because you won’t be able
to know whether they are going to look good on you or not.

8. Return problem: Returning an item is
difficult in case of online shopping. Although seller accepts sells return,
they usually want the item within a short period of time and you also have to
pay for the shipping charges.

9. Warranty issues: Many electronic items are
sold without international warranty. So make sure you contact with the seller
to verify whether the item has international warranty or not.

10. Miscellaneous trouble: There are some
other rare disadvantages such as credit card fraud, spyware etc.

 

Data analysis and interpretation

 

Inference:

From the above pie chart, we get to know that
most number of consumers for apparel segment in Hyderabad belong to the age
group 18-25 and the second highest age group is 26-35.

 

Inference:

It can be inferred from the above pie chart
that 57% of the respondents are males

and the remaining 43% belong to the female
category.

 

Inference:

It can be
inferred that 56% of the respondents are single and the other 44% are married.

Inference:

From the above pie chart, we infer that 43%
of the respondents are Students, 42% are Self Employed while the other 14% and
1% are Employed and Retired respectively.

 

Inference:

From the above pie chart, it can be concluded
that 38% of the respondents have an income level of 25,000-50,000, 36% of the
respondents earn between 50,000-1,00,000, 13% have an income level of
1,00,000-5,00,000 and 13% of the respondents have earnings in the range of 5,00,000-10,00,000.

Inference:

From the above pie chart, we infer that 97%
of the respondents have used internet and 3% of them have not.

 

Inference:

From the above pie chart, we infer that 74%
of the respondents prefer online shopping over traditional shopping.

Inference:

From the above pie chart, we infer that 97%
of the respondents have made an online purchase in the apparel segment.

 

 

Inference:

From the above bar chart, we infer that
Myntra is the most preferred online sjopping portal followed by Amazon.

 

Inference:

From the above pie chart, we infer that 38%
of the respondents purchase online seeing the advertisements and 20% of them
are pursued by their friends.

 

Inference:

It can be inferred from the above table that
all the criteria’s are important while shopping but the most important criteria
for buying apparel online is Convenience which is preferred by most of the
respondents, and the second important criteria is Variety followed by the other
factors.

Inference:

From the above pie chart, we infer that 60%
of the respondents believe that Cash on delivery as the most trusted payment
mode for online shopping followed by Debit card.

 

Inference:

From the above pie chart, we infer that 97%of
the respondents are satisfied with online shopping so far.

 

Findings of the study

This study is conducted to find the changing
trends in online shopping in the apparel sector. This analysis was done through
statistical tools based on primary data acquired through survey conducted with
questionnaires distributed through direct contact and mail

1.  
People who
belong to the age group of 18-25 shop online more often than people of other
age groups.

2.  
Amongst the
respondents the number of male respondents is more than the female respondents.

3.  
People who
are single shop online more than married individuals.

4.  
Almost all
the respondents who shop online have access to internet except a very few who
do not have direct access to internet.

5.  
In the
survey conducted almost all the respondents have had previous experience in
shopping online and have purchased apparel online previously.

6.  
 People prefer to shop online for apparel than
traditional shopping due to different factors like Convenience, Variety etc.

 

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