Marketing in Practice : The Online Marketplace Conundrum
The blistering growth of e-commerce in India (estimated to be around a size of $ 1.6 billion) has thrown up a Pandora's box of problems for marketers. The channel conflict has become intense between the traditional brick and mortar channel members and the online market place. The conflict is real and brands are caught in between the fight for the customer's wallet. The issue has come to the forefront with brands like Toshiba, Lenovo and Cannon publishing advisory to customers on purchasing their brands from online retailers. ( read news here : Lenovo , Cannon ). The basic issue between the online retailers and the traditional channel members is the predatory pricing adopted by the online retailers. Traditional retailers with their huge overheads and investments are not able to match the pricing of the online retailers. The issue has become more complicated with large online retailers like Flipkart, Snapdeal adopting the 'market place' model . The eCommerce market has ...