critical factors to be addressed for a online/tele-shopping model in India

- Payment mechanism (wire/cash on delivery contributes to less than 3% of total online transactions) while Cheque in India seems to be just a confirmation, not a guarantee. If a cheque bounces (more than 2% of the cheque bounces for government utilities where there is a service termination /legal process/ or penalty is well defined in the payment acceptance policy and the customer even faces de-activation of his services whichever he is subscribed to, in addition to imprisonment of 6 months and a penalty of Rs 100/- min on such situations. Despite of all these collection policy guidelines, there are discrepancies in payment receipts; this needs to be well defined.

- Pricing: The pricing is a critical factor to any purchase which is done online/ on a tele-shopping model. Either the brand has got high brand value & recognition/ or if the brand is not available locally,then the customer prefers to buy the product through online mode.

- Local partners: The models which you are planning to base your model on, requires a good support from local to give it a local feel. I know quite a few organizations out here who may help you in reaching to masses in India (as having an Indian partner brings in confidence among customers). This would also extend help in logistics, investments, and managing the business without subsidiaries much focus on distribution or managing back-end or logistics. Focus of an individual subsidiary should be primarily focussed on marketing and generating business.

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