We have seen the growth of e-tailing in India in past 2 years and we agree that it is here to stay and grow. Offline retailers have now started to evaluate e-tailing.
At Spice Hotspot, we are building a strategic view on e-tailing. Spice is a category leader in physical retail, hence, our strategy on e-tailing has to account for it. It is not a new sector that we are entering into, so any views that we form on e-tailing have to be in the context of our present retail business. We also need to realize that physical retail itself in India is a high growth market. Our objective is to maintain the leadership position in overall retail, not in e-tailing or physical retail alone.
As we start to develop perspective on e-tailing business, three key questions emerge:
- Does e-tailing enhance value for our retail business?
- If we aren't present in e-tailing, will our retail aspirations suffer?
- If we are present in e-tailing, will it adversely affect our retail business?
These questions need to be answered in conjunction and the answers will be different for each retailer based on their conviction, stage of business and product categories. Having said that, I expect a lot of action from physical retailers in e-tailing.