92% of the US$600 bn market is unorganized. India is a hub of almost 50 mn small and medium businesses. The problem for the offline markets are high real estate costs, low product discoverability, limited assortment merchandising and low reach. Online markets account for only US$2 bn currently.
How online market places are helping? It is easier to figure out trends on online markets and prepare the products accordingly. Also, working capital position of the retailer can be a lot better given low product batches. Mr Bahl gave a specific example of the benefits accruing to one of his customers from low working capital and greater planning and production flexibility. The same company has now been able to successfully branch out into another product category.
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