Absence of consumer Protection a key hindrance in the growth of ETailing and Web Commerce

The reason for success in the various web based brands and retailers on the net is one common factor and that is TRUST and just not price , we can see the growth of web based retail in countries where consumer protection is very effective and not so in the country where its missing . Reason customers prefer Brick and Mortar model because they get the sense of assurance that in case product is not what it was supposed to be they know exactly whose neck to catch. Not only that one prefers touch and feels so that they don’t get into a deal that’s bad.
“When it comes to trust, eBay may be at a disadvantage, says B G Mahesh, an internet entrepreneur and one of the first Indians to taste success in the space with his Indiainfo. com

“I will buy from a marketplace only if it is a trusted brand,” Mahesh said. There are others, too, who think trust can be a deal breaker for eBay. “More success is possible in focused cataloguing rather than marketplace because the Indian community needs trust in terms of merchandise and a stronger sense of cataloguing,” said Akhilesh Tuteja, an executive director at accounting and advisory, KPMG. “It is really about who can create the best user experience and service,” said Mukesh Bansal, founder and CEO of online retailer Myntra. While the e-retailing giants may have had success in other markets, they will have tailor their strategy to find a place here, Indiainfo’s Mahesh said. “India is a completely different beast.”(ref Eco.Times 29/2/2012)”
I am convinced that the best model is the boden.co.uk , where you have a unique product ( lifestyle) and have the best combination in terms of users experience and also BIG on Brand Value and Imagery through their HIGH Street Retail Outlets which acts as an amazing Brand Building experience . They choose the outlet location with great care as they are very clear where they want to position their Brand .

3 responses to “Absence of consumer Protection a key hindrance in the growth of ETailing and Web Commerce”

  1. Tony at Movement121 says :

    totally agree that trust is always the name of the game – whether it is online or not. It’s just that with new online-only stores, trust must be built differently. What do you think are the key “trust-building” elements of Boden?

  2. Mao Navoa says :

    One thing though, you let me visit Boden.Co.UK! Wonderful site…very interactive. Engaging and there sense of “trust”.

    But yes, I agree with you. It is in the absence of consumer protection that is a hindrance to eRetailing. Example, if my credit card is hacked, who do I go to? If the articles i bought did not meet my expectation, how will I return it? And most of the time, the articles in photos are 30-50% better looking than in real. Even the models are much, much, better looking than in person!

    A brick and mortar retailer supported by eRetailing will work best because there is a semblance of assurance to consumers that there is someone they could go to if ever they are not satisfied with the articles they buy. Although, I think the newer generation who have been exposed to internet at their early age is more open to eRetailing. They are more trusting versus those who are in 40s or 50s.

  3. Jay Nair says :

    Trust has always been the key factor irrespective of the model whether its brick and mortar or eRetailing. Consumer Protection is just a legal wrapper around this factor.

    Its not only the customer who is worried even the companies are stressing upon their customer services. It is evident from the steps taken by companies proves that consumer retention is equally important to consumer acquisition.
    Sharing my experience I have seen companies sending a return package(postage paid) with the goods in case they needs to be returned,
    I have got my money refund from one of the eRetailor/ bank when my card(may be hacked) was used.

    Its not only the legal obligation but the moral of the customers and companies to run the show.

    “Isn’t It funny Day by Day nothing changes, but if you look back, everything is Different.”

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