It's an interesting launch!! It's true that the long talked about enablers for online retailing like PC Penetration and Broad Band Growth (both urban & rural) all are looking towards the north. The "yoy" growth of these are bleak but is still growing!!

Are these few attributes good enough for mJunction to enter into the Online Space?

I feel mjunction should have looked at the following:

(a) History shows that in India all retailers have been following the B2B2C Model. The eTailers capture orders and pass on them to the vendors for fulfillment(No Inventory Carrying Plz). The negotiating power of such eRetailers are low. The suppliers to these retailers (or e-Retailers) pass on the margins based on the inventory carrying capabilities. Will this attract the Indian Consumers as the eTailers itself will have less to play with and pass on to the consumers? Lets not forget that most of the Indian Consumers do ask that question before buying. Is it cheap here or there?

(b) Entry of new physical retailers or expansion of the existing retailers by adding more bricks and mortars stores is increasing at a rapid pace. The Retail pie chart gets more organized by the organized retailers by reducing the pops and moms shows. Online for these players are an additional channel!

The existing negotiating power of these players with their vendors are high, (Lets not forget that Cadbury's was not sold at Pantaloon store for a while because Kishore Beyani was not accepting the margins set for Pantaloons) they leverage the same and pass on better price to the customers online.

(c) What happens when the FDI is relaxed for the retail sector. Would the B2B2C Model blindingly adopted by these existing players survive?

(d) What marketing ways have mJunction set in penetrating to the masses?

(e) As far as C2C Model is concerned mjunction should have taken into consideration Google's eClassifieds Platform which would be rolled out soon. eBay's Model evolved during at a different time.

I seriously feel that this launch by mjunction is during a phase when the large retailers are looking at ways to evolve. Two or Three years down the line what this evolution would lead to might be a very stiff competition.