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Indians still trust brick and mortar stores more than ecommerce firms: Report

Ecommerce companies in India are still facing significant
challenges to growth which include a shared scepticism among Indians about
paying for goods online, slow delivery times, state bureaucracy, inefficient
inventory management and cyber-crime could all prove problematic, states a
report from MSLGROUP India.

Ecommerce companies in India are still facing significant
challenges to growth which include a shared scepticism among Indians about
paying for goods online, slow delivery times, state bureaucracy, inefficient
inventory management and cyber-crime could all prove problematic, states a
report from MSLGROUP India.

MSLGROUP India, Publicis Groupe’s flagship strategic
communications company has launched a report on ‘E-commerce in India: Evolution,
Growth and Challenges
’ which states that establishing trust and winning
confidence of consumers is still not easy. “Brick and mortar stores tend
to be more trusted. Ecommerce firms will have to work hard to gain consumers’
trust,” added the report.

However, the report points out that the Indian ecommerce
sector has enjoyed stellar revenue increases over recent years. Figures from
the Internet and Mobile Association of India (IAMAI) suggest that the market is
expanding by around 70 per cent per year.

The report however stated that many of the
market’s problems were being resolved. For example, greater uptake of SSL
protections have improved users’ online security, while certain laws governing
investments have been liberalized, making it easier for online vendors to
establish themselves. Uplifts to the sector should also be provided by a
general rise in India’s web population, which is growing at around +13 per cent
per year, according to ComScore figures cited by the report.

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