ISO 9001:2015

CONTRIBUTION OF E-COMMERCE IN GROWTH AND EXPANSION OF RETAIL INDUSTRY

Just as a tree provides essential support for the growth of vine, e-commerce serves a crucial role in the expansion of the retail industry. In a business model, the focus typically revolves around where the business operates, what it sells, distribution channels, and revenue sources. The internet has significantly impacted all these aspects, reshaping business strategies. The online environment has broadened the market scope, allowing consumers to access products and services globally. In India’s retail industry ranks fourth worldwide, contributing 10% to the country's GDP. The liberalization of the economy in the 1990s, coupled with the Information Technology Act of 2005, spurred the growth of retail by fostering vertical integration among companies to reach a larger customer base. In this dynamic landscape, retailers are harnessing the potential of the industry by incorporating advanced technologies like artificial intelligence and customer relationship management tools. These innovations enable data analysis and enhance customer engagement, propelling the retail sector forward. India, known for its rapid adoption of technology, has embraced e-commerce as a result of continuous technological advancements. The shift towards electronic data exchange has been particularly prominent, with e-commerce becoming a prevalent method of business transactions. Furthermore, the emergence of social commerce and live commerce, a subset of e-commerce utilizing social networks and digital media for business-to-customer transactions, has gained significant traction. This paper aims to highlight the significant contribution of e-commerce to the flourishing growth of the retail industry, showcasing how technological advancements have shaped the business landscape.


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