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)”