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Snapdeal Related Essay
India’s shopping scenario is undergoing rapid change. Due to a rich demographic dividend the retail space is redefining itself. The business model itself is getting a new avatar in the drawing board.
The Indian Retail Landscape
The retail landscape is undergoing through a rapid transformation due to the internet technology and digital technologies. The population due to the advantage is moving to the Brick and mortar to the digital retailing.
Today the retail landscape has three distinct types of players a. Predominantly brick and mortar retailers b. Primarily internet based retailers c. Companies that use digital network to reach to the customer
All these channels are distinct and have their inherent strength and weaknesses
Our discussion will be far from over if we discuss these channels in isolation. Companies are in viding to reach out to customers through profitably, proficiently and effectively. These channels are getting constantly reviewed and changed to meet the expectation of the customer.
Below the Business model of Click companies (Namely Snapdeal, Myntra etc.) and business model of Brick and Mortar companies is compared: Proposition | What is it? | Strength and Weakness | Examples by Propotion | Bricks
Bricks
| * Traditionally called brick and mortar retailer * Presence by physical store driven by retailer * Customer services ranging from shopping assistance to checkout * Open to extend to other channels like * Internet, mobile, cataloguing. | * Physical presence providescustomer assurance * Existing supply chain can be leveraged for new channels * Bargaining power with suppliers * Exorbitant real estate rentals * Rapidly increasing assortment * Inventory carrying cost | * Bricks : Lifestyle, Globus, Reliance Retail, Hyper city, More, Croma * Brick & Click : Shoppers Stop, Ezone,Fab India | Clicks
Clicks
| * Sells on digital channels. Out of 3 screens sells largely through computers

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