vijay tv online MUMBAI/CHENNAI: Consumer durable retailers are taking a second shot at e-commerce, the advent of which, they say, is being hastened by increasing internet penetration and growing comfort levels among consumers to shop online. Mumbai-based Vijay Sales and Chennai-based Viveks are among those kickstarting e-commerce operations this year. While Vijay Sales is planning to take the plunge in 6 to 8 months, Viveks is expected to soon start selling goods online. "In the next 3 to 4 years, e-commerce will be big in electronic goods.
said Nilesh Gupta, managing partner, Vijay Sales, a multi-brand retailer which started as a small television store in Mahim, Mumbai, in 1967. It has come a long way since and clocked a turnover of Rs 1,250 crore last fiscal. Vijay Sales has rapidly expanded its presence outside the city to Delhi, Pune, Surat and Ahmedabad. It has 17 stores outside Mumbai, but 65% of its sales come from Mumbai where it has 22 stores. Vijay Sales feels there is potential to garner 10-15% of total sales through e-commerce in the next few years. Growing at 10% annually, the retailer has projected a turnover of Rs 1,750 crore this fiscal. "Trust will play a critical role in e-commerce as consumers warm up to this mode of making purchases. This will be the driving factor," said Gupta. For the South-based retailer, Viveks, e-commerce is a business one can no longer afford to ignore.
But you need to have an excellent supply chain in place that can not just deliver, but also service products. Else, such a venture will simply fall flat," said B A Kondandarama Setty, CMD chairman and managing director of Viveks. To begin with, Setty is currently planning a South-centric portal. "We have a strong presence in South, so it makes logical sense for us to start here first." Going by the e-commerce plans being firmed up by retailers , one would assume that electronic goods and consumer durable makers would logically follow suit. However, most companies feel these may be early days. LG Electronics India said it was a bit early to talk of e-commerce. "Until the entire payment structure is set up, it is slightly difficult for e-commerce to take off," said Y V Verma, COO, LG Electronics India.
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