PESTLE Analysis of Online Retail in India

PESTLE Analysis of Online Retail in India: Following is the description as to how online retail business in India is being aected by the en!iron"ental en!iron"ental in#uences of political$ social$ technological$ en!iron"ental en!iron"ental and legal% &% Polit litical ical  There are are no ade'uate laws laws to protect protect the Intellectual Intellectual property property rights of online retailers for who" intellectual property consists of new target "ar(et$ details of current "ar(et and infor"ation about new designs% )o clarity on the ta*ation of products products sold by online retailers% retailers% Although "ost of the online retailer are processing transactions with ta* included but still "any of the transactions are processed without "a(ing any contribution to the ta* authorities% For e%g% Ebay treats indi!idual transactions transactions as pri!ate auctions and does not include ta*% Rights to e consu"ers is still an issue Local and international co"panies with foreign in!est"ents are not allowed to sell good online in India •

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+% Econ Econo" o"ic ic Fac Facto tors rs Initial outlay in de!eloping an e,co""erce e,co""erce website is relati!ely high which includes cost of hardware$ software$ training sta etc% -hether or not the initial in!est"ent could be reco!ered does re"ain a cause of  concern for "any co"panies% .any e,co""erce /r"s get hu"an resource who lac( of 'uality infor"ation technology (nowledge and s(ills related to it% 0nderde!eloped 0nderde!elope d transportation transportatio n infrastructure resulting resulting in slow and uncertain deli!ery of goods and se!ices% •

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1% Socio,c Socio,cult ultura urall Fac Factor tors s Security and Pri!acy while doing transactions re"ain a big i"pedi"ent for the growth of e,co""erce in India% 2onsu"ers are hesitant to disclose their personal and con/dential data while wor(ing online such as address credit card nu"ber etc% 2ultural di!ersity of consu"ers is a concern% Since$ India is a country of  di!ersities and "any people ha!e dierent needs and tastes% So$ the co"pany would ha!e to custo"i3e and deal with dierent dierent re'uire"ents while operating in a single country% Absence of Touch Touch and Feel% Feel% 2on!entionally$ 2on!entiona lly$ Indian custo"ers are used to shop by seeing and feeling the products before "a(ing a purchase% 2usto"ers want to chec( the product in person before paying as it gi!es the" a sense of satisfaction% satisfaction% So the absence of 4touch and feel5 is a big issue for online retailers% I"patience to recei!e the purchased product% •

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6% Technological Factors Security of custo"er data is a big worry for online retailers% Since the security of their personal details are a big challenge for the e, co""erce /r"s who e!en though try to incorporate i"penetrable /rewalls still a !ulnerable to hac(ers$ !iruses etc% Successful online retail ser!ices rely on reliable platfor" which includes a reliable hardware$ software and networ(% 7owe!er$ a &889 full proof online retail platfor" is still in the wor(ing as "ost of the ti"es the transactions do go wrong% Internet bandwidth is another i"pedi"ent in its growth since due to current li"itations on internet speed co"panies are not able to deli!er rich "edia infor"ation% Integration di;culties as if each depart"ent would start using dierent type of software then "anagers would ha!e only a partial data leading to uninfor"ed decisions% •

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<% Legal Factors Right to e, consu"ers still an issue% Lac( of regional legal fra"ewor( on e signatures =o"ain na"e registration disputes a proble" • • •

>% En!iron"ental Factors