The $12-billion Indian e-tailing sector is expected to witness some tough battles ahead, with Walmart set to enter the space soon.

Watch-to-jewellery major Titan Industries has indicated that it is readying its e-commerce site and would launch it this year. Madura Fashion & Lifestyle is working on its e-store and Mahindra Group already has momandmeshop.in . The domestic retail giant Future Bazaar has its own site which will lend its own sharp edge to the turf war.

However, existing online players such as Indiaplaza.com are unfazed by these impending entries. The company co-founder and COO, Mr K Vaitheeswaran, said that he was not unduly worried about these vertical or niche players.

“If a large global retailer like Walmart launches its e-venture in India, I would worry as they understand the e-business. They have large buying capabilities that will give them cost efficiencies,” he said.

Buying better

He says retailing and e-tailing is about buying better rather than selling better. “We have anyway learnt that side of the business,” he adds.

On the other hand, he says niche players such as apparel or watch companies would not be able to make much headway for two reasons: they cannot afford to offer huge discounts and also because consumers want choice.

Mr Sandeep Gupta, Managing Director of consulting firm Protiviti India, agrees. Citing the example of travel sites, he says that resellers would do better than direct sellers in the e-commerce industry because of the sheer choice and value they can offer.

Growth

He sees no major impact of large retailers or brands entering the e-commerce market on existing players' business. “In fact, if you have more players, the adoption level would go up and the e-tailing space would grow. In the end, it's the consumer who will benefit rather than anyone losing out,” he points out.

>anjali@thehindu.co.in

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