Security concerns may spur e-shopping this Dussera & Diwali, ASSOCHAM

06 Oct '08

5 min read

In the wake of wide spread violence in the form of terror attacks that erupted in major cities of commercial activities, e-shopping during forthcoming seasons is likely to go up by 180% in cities like Delhi and other metros and would hit in the worst manner earnings of footpath sellers, specially those that sell garments, household articles etc. according to ASSOCHAM findings, the feedback for which has been collected from traders all over the country specially in large towns.

These also reveal that in coming Dussera and Diwali, the white goods and bullion trade would unlikely be that impressive as it was last year because little discounts are being offered by consumer durables manufactures because of their higher input cost to attract customer.

Higher inflation and loss of property and lives as result of terror activities at various places have completely dampened purchasing enthusiasm of common investors towards gold and silver.

As per feedback received by the chamber secretariat in the last 10 days as to what would be the buying trends in forthcoming festive seasons directly from the ASSOCHAM consequents-a good number of them are traders across the country, it has been gathered that because of security reasons e-shopping is going to grow by nearly 180% during Dussera and Diwali at various metros including large township like Luknow, Chandigarh, Dehradun, Pune, Mumbai, Ahmedabad, Hyderbad, Cochin, Chennai, Udiapur, Jaipur etc.

Releasing findings of ASSOCHAM, its Secretary General, Mr. D S Rawat said that through e-shopping in the month of Oct-Nov 2007, shopkeepers in major hubs of economic activities effected sales of number of articles to an extent of Rs. 5,500 crore.

Since, one keep a record of e-transactions as these take place established banking mechanism, the figure is realistic and can't be described as exaggerated. The ASSOCHAM expects this, to go up between 175-180% to touch levels of over 15,000 crore, pointed out Mr. Rawat.

The Secretary General, ASSOCHAM, however, added that consumer durables and white goods sector is unlikely to do better because this sector as already fallen under recession because of its extremely higher input cost and thereby virtually no discount are being offered as the manufactures have to key a minimum of their margins to sustain them in business.

This view of ASSOCHAM is being endorsed by its immediate Past President, Mr. Venugopal N Dhoot, who heads the Videocon Group of Industries.

“Just as Delhi e-shoppers population was 30% in 2007-08, in Mumbai it was 28% with maximum e-shopping taking place in electronic gadgets, apparel & design purchases, railways, air & gift items.

The number in percentage increase for e-shoppers in 2008-09 would touch atleast 50% in case of Mumbai while in Delhi it is expected beyond 60%.

Products that will gain popularity in e-sale could include gems & jewellery, online books sale,accessories, apparel, gift products, music and movies, hotel room besides tickets for transportation.

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