Abstract

E-tailing sector in India has a huge potential and is growing at a CAGR of

8-10% annually. Apparel and electronics are the highest contributor in
terms of sale. With the increase in competitors in this sector studying the
consumer behaviour becomes important so as to understand the factors
that influence a consumer while they make a purchase through online and
offline channel.

Introduction
1. Apparel industry in India
India is one of the largest producer of textile and apparels and has an
enormous raw material and manufacturing base. The Indian textiles
industry, currently estimated at around US $108 billion, is expected to
reach US $ 141 billion by 2021. The industry is a significant contributor to
the economy, both in terms of its domestic share and exports. It
contributes to nearly 30 per cent of the total exports of India and employs
around 45 million people directly and 60 million indirectly. Textile industry
contributes to 11 percent of export basket of the country and 5 percent to
GDP.

Indian consumers
Apparel is highly dynamic market and the trend changes very fast. Thus
the fashion market requires companies to be flexible and adaptive to the
changes so focusing on the right requirement of the target would help the
players to improve their performance. Companies should make sure that
they know how and what to deliver to their consumers. Focusing on the
past consumer experience helps in predicting the future trends and brings
profitability in the products and services in the market.
The process of decision making is observed to be very similar in both
online and offline market. But some factors such as physical environment
and marketing communication plays a major role. According to traditional
consumer decision model, Consumer purchaseadecision typically starts
withaneed awareness, information search, and alternative evaluations,
deciding to purchase and finally, post-purchasing behaviour.

Influences of Online Shopping Decision

There are many reasons for shopping online. Many people wants to avoid
the traffic and save time, others want to compare prices on various
websites on one click while others want to avoid pressure they face during

face-to-face interactions. So these factors can be summarized in four

basic

categories-convenience,

information,

available

products

and

services, and cost and time efficiency.

Convenience- Empirical research shows that convenience of the internet is
one of the impacts on consumers willingness to buy online is increasing.

Online shopping is available 24 hours a day and 7 days a week and hence
they do not have any restriction on store timings. In major metro cities, we
can find an increase in trend of online shopping as both the members of
the family are working and they cannot find free time for shopping.
Moreover shopping online avoids crowd and waiting line especially on
holidays. Some companies have helpline even after business hours.
Therefore, some customers find it easy to ask questions and get support.
Information- Though the customers fail on touch and feel aspect while
purchasing online but product information and reviews of the customers
bridges that gap. Many websites these days are providing with the
information catalogue meeting all the needs of the customers.
Available product and services- E-commerce has made the transactions
easier than before and the online store provide a wide variety of products
and services to choose from. Consumers can find all kinds of products
online from all over the world. Most companies have their own websites to
offer products and services no matter whether they exist offline or not.
Most companies sell product only online to reduce the retailing cost or to
offer customers with more choices of features, colours or sizes.
Cost and time efficiency- Online shopping often provides better deal at
lower cost. Since online shopping gives variety of products and services it
gives customers a chance to compare prices on various websites. Some
websites, Ebay for example, offer customers auction or best offer option, so
they can make a good deal for their product. Again as the online shopping
can be done anywhere and everywhere it saves one from travelling time.
Studies

have

shown

psychological costs.

that

customers

find

shopping

online

reduces

Factors that Impede Consumers from online Shopping

Major reason that impede consumers from online shopping include unsecured
payment, slow shipping, unwanted product, spam or virus, bothersome
emails and technology problem. Business should be aware of such major
problems which lead to dissatisfaction in online shopping.
Security- In India, many customers prefer online shopping as it has an option
of cash on delivery. But there are few others who pay through credit/debit
cards and these people pay special attention to sellers information in order
to protect themselves. Customers tend to purchase products from those
websites whom they trust or brands that they are familiar with. Online trust
plays an important role and it affects the success or failure of online retailers.
Security seems to be a big concern that prevents customers from shopping
online because they are worried that the online payment may misuse their
card details.

Intangibility of online product- Some products are less likely to be

purchased online because of the intangible nature of the products. Many
fear that the product showing online maybe different from the product
they actually see in store. In, online shopping customers cannot see, feel,
touch, smell, or try the product that they want to buy. In many cases,
customers prefer to examine the product first and then decide whether or
not they want to buy. Some people think the product information provided
in website is not enough to make a decision. Online shoppers will be
disappointed if the product information does not meet their expectation.
Social contact- While some customers likely to be free from salespersons
pressure, while others feel it becomes difficult to take decision without
salespersons professional advice. Moreover, some customers rely on
other persons opinion while purchasing. There are some others who go
out for shopping for entertainment purpose.
Dissatisfaction with online shopping- Customers past online experience often
affects the future purchase decision. In online shopping, customers may get
unwanted or product of lower quality. Some retailers disagree to refund or
change the product and this affects the customers future buying decision.

Delivery time is also an issue. Slow or late delivery makes customers to

switch to other online shopping websites.

2. Objective of the Study

The objective of the present study was to study the factors that influence the
buying decision of customers in online shopping industry and suggest
strategies for online companies to increase their sales.

3. Literature Review
The market size of both domestic and exports of apparel industry is projected
to grow at a CAGR of 9.5%, according to a white paper by industry body FICCI
and research firm Technopak. India's share of the world's apparel exports
stands at 4.5%. It is estimated that due to the increasing shift of apparel and
textile

production

to

Asian

nations

and

the

deteriorating

export-

competitiveness of China, this figure will grow to 8% by 2020, with a total

exports value of $82 billion. This growth, from 4.5 to 8% of world trade, will
open up huge potential for Indian players, the report said.
India has the potential to become a rapidly growing market for better-quality
apparel, particularly brand-name fashion goods. The countrys sizable middle
class of an estimated 200 million, which is expected to double in the next 10
years, includes an estimated 40 million people who prefer brand-name
fashions. A recent study of the Indian apparel and textile industry concluded
that India has the potential to double its current world market share in
apparel during the next 5 years, provided that the apparel sector invests
about $16.6 billion in new production technology.

4. Research Objectives
a) To analyse the product attributes consumers use to evaluate garments
online and offline
b) To study consumers online and offline channel choice motivations
c) To study product attributes consumer use when shopping across online
and offline channels

Hypotheses
Hypothesis 1:
H0: Time does not affect the channel for making purchase in apparel industry

H1: Time affects the channel for making purchase in apparel industry

Hypothesis 2:
H0: Safety of the website does not affect the channel for making purchase in apparel industry
H1: Safety of the website affects the channel for making purchase in apparel industry

Hypothesis 3:
H0: Price does not affect the channel for making purchase in apparel industry
H1: Price affects the channel for making purchase in apparel industry

Hypothesis 4:
H0: Convenience does not affect the channel for making purchase in apparel industry
H1: Convenience affects the channel for making purchase in apparel industry

Hypothesis 5:
H0: Reliability does not affect the channel for making purchase in apparel industry
H1: Reliability affects the channel for making purchase in apparel industry

Hypothesis 6:
H0: Quality of the product does not affect the channel for making purchase in apparel
industry
H1: Quality of the product affects the channel for making purchase in apparel industry

Modified Path Model for our Study

Time

Safety

H
H

Price

Purchasing Decision in apparel industry

Convenience

H
H

Reliability

Quality of the
product

The summary of variables are:

Independent Variables: Age, Gender, Income Level, Time, Safety, Price, Convenience,
Reliability, Quality of the product
Dependent Variable: Overall Rating

Methodology
Research Type
The methodology chosen for the research was Quantitative Research since we had to test
our hypotheses with empirical data. The survey was to be administered online and there was a
huge amount of data, hence this technique is better suited. However, while designing the
research there was also a lot of Qualitative Research which went into framing the initial
questionnaire, which we would eventually test by Quantitative Research techniques.
The experiment is combined with in-depth interviews as this method can be used in
conjunction with other methods to gain exploratory findings to generate theory. In-depth
interviewing is in this case found suitable as there is a specific topic to focus on and to gain
information about from the participants. Furthermore, qualitative interviews brought
knowledge that is contextual, linguistic, narrative and pragmatic which is what is desired
within this research.
Sample Design

Sampling Technique Used: We used Convenience Sampling in this research

Sample Size: A sample size of 100 respondents has been chosen for the research

Description of Respondents: We plan to have a survey based on the following

stakeholders :
1. Potential Customers: Special focus on the 18-40 years age group, in the Delhi-NCR
region mainly college going students, corporate and frequent shoppers. We also plan to
reach out to our target segment of cities like Kolkata, Andhra Pradesh,Karnataka, Odisha,
and Noida through online questionnaires.
2. Surveying Point Of Sales: Local vendors, Shopkeepers in malls, IT professionals,
Housewives etc.
3. Industry Expertise: We would also interview industry experts and gain insights about

the customer purchase pattern

Demographics: The survey was administered in the urban areas of Gurgaon, Kolkata,
Andhra Pradesh, Karnataka, Odisha, and Noida
Data Collection Instrument: Online Questionnaire
Sources of Data Collection: For collection of data, we used the following sources:
Primary Sources of data included the first hand information which was collected through
the questionnaire. Secondary Sources of data included books, magazines, online
journals, newspapers, research papers and websites of many companies which were
involved in the study.

Research Design
The research was formulated by doing literature review of various articles pertaining to the
variables of interest once they were chosen. Once the industry of concern was chosen, we
reviewed articles not only on the variables but also on the studies pertaining to those
variables in apparel industry in India. After the literature review, we did a Qualitative Study
by researching through books and other online sources to help frame our initial questionnaire.
Once the final version of the questionnaire was made, it was administered to the respondents
via e-mail and social networking sites.

Literature Review

Qualitative Study

Analysing Qualitative
Data
Analysis of Model and
Conclusions
Final
Survey
Questionnaire
of 100
respondents

Model Refinement

Identify Constructs
Develop the final
Identify Measurement
version of the
Items
Questionnaire
Develop first draft of
Final model and
Questionnaire
conclusions drawn
from the results

Business Implications

Questionnaire Used for Primary Research

As mentioned earlier, the mode of conducting primary research was online questionnaire
which was sent via email and personally to the selected sample of educated respondents. The
questionnaire dealt with aspects such as

Checking whether the respondent shops online or offline

Checking what are the factors that drives the respondent to shop online
Checking what are the factors that drives the respondent to shop offline

Description of Items Used in Questionnaire

These set of questions deals with respondents internet usage habits, familiarity with the
various shopping modes and frequency of purchase in online analysis. These questions
were needed for further analysis of the preferred mode of shopping and what are the
hindrances one face while shopping online.

These questions help in testing of hypothesis 1-6 which deal with the
features of the online shopping.

The last section of the questionnaire dealt with the demographic questions of age, gender,
monthly income and any other additional information if the respondent wishes to share.
We chose to keep them at the end to avoid response bias.

Results and Analysis

References
1. http://www.ibef.org/exports/apparel-industry-india.aspx