Are more established brands moving online?

India has increasingly seen a number of online exclusive consumer electronics models. The restriction of them being only available online doesn’t stop them from being hugely popular.

What about established brands with bigger physical footprints? Microsoft recently launched its online store on Snapdeal.

"Increasingly consumers are going online to shop...mobiles, devices, software and accessories. We therefore see tremendous opportunity in delivering Microsoft products and services through our online store...," Sharlin Thayil, OEM Director, Microsoft India said.

Does this hint at a shift of established companies increasingly moving online to reach the masses and cut costs in the process?

“It is an obvious shift, as online penetration increases customers, product companies, and retailers will all move to take advantage of the phenomena”, Mohit Bahl, Partner, Transaction Services, KPMG India says.

So how relevant is the exclusive physical store model in today’s times when online stores claim to offer customized shopping experience?

“Offline retailers offer a physical experience that the online space can’t replicate. Both formats have their advantages and the market has loads of space for both to co-exist – customers will continue to have the benefit of both”, Bahl says

Is the hoolah over Indian e-commerce nothing but hype?

“Not at all- it’s made great strides in such a short span – the numbers are out there. Online retail is doing a great job of reaching a wide variety of consumers at fantastic prices”, Bahl says.

While the why of shifting to an online model is obvious, the when and by how much is up for individual companies to decide.