AN INVESTIGATION INTO THE INFLUENCE OF

E-COMMERCE PLATFORMS ON LOCAL

RETAILERS :A CASE STUDY OF KOLLAM
DISTRICT

PROJECT SYNOPSIS OF MCOP-001

Submitted to
The Regional Director
Indira Gandhi National Open University
In partial fulfilment of the award of degree
of
MASTER OF COMMERCE [MCOM]
Submitted by
FATHIMA N
DR. MISHA. V
(Assistant Professor, department of Commerce, Sree Narayana
College, Kollam Affiliated of university of kerala-691001)

Indira Gandhi Open University

Maidan Garhi
New Delhi - 110068
2022-2025
2
 INDIRA GANDHI NATIONAL OPEN
UNIVERSITY
REGIONAL CENTRE - TRIVANDRUM
BIO-DATA FORMAT FOR MCOM
PROJECT GUIDE

Name : Dr MISHA V
Designation : Assistant Professor, Department of Commerce
Sree Narayana College, Kollam, Affiliated of University of Kerala,
Kerala, 691001.
Email : [email protected]

Address : Prabha Mandiram, Choorapoika, Kuzhimathicadu P O, Kollam,

Kerala,691509
Mobile No : 9446216688

Educational Qualification : M. Com, M.Ed, Ph.D(Commerce),

NET(Commerce), NET(Education) PGDIM, PGDMM.

Degree Name and address of Year of award of Class/Grade

the University Degree
B. Com University of Kerala, 2000 Distinction
Thiruvananthapuram
Kerala
M.Com University of Kerala, 2002 First Class
Thiruvananthapuram
Kerala
M.Ed M S University, 2007 First Class
Thirunelveli
PhD University of Kerala, 2021
Thiruvananthapuram
Kerala
NET(Commerce) 2011
NET(Education) 2008
PGDIM IGNOU 2017 First Class
PGDMM IGNOU 2018 First Class

3
Detailed work experience, stated clearly in chronological order having details of the designation,
period, name and contactable address of the organisations.

Designation Period Organisation

Lecturer in Commerce 2005-2011 Rama Vilasom Training
College, Valakom

Assistant Professor of 2012-15 KUCTE, Kulakkada

Commerce

Assistant Professor of 2016-Till date Sree Narayana College,

Commerce Kollam

Academic Counselor 2007-2012 IGNOU Study Centre,

Rama Vilasom Training
Colleg,Valakom

Academic Counselor 2016 onwards IGNOU Study Centre, Sree

Narayana College, Kollam

DECLARATION:
I hereby declare that the above information furnished by me is true to the best of my knowledge.

Yours Sincerely

Dr MISHA V

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 Annexure II

CERTIFICATE OF APPROVAL

This is to Certify that the Project titled 'An Investigation into the Influence of E-commerce
Platforms on Local Retailers: A Case Study of Kollam District' is an original work of the
student and is being submitted in partial fulfilment of the award of the Master of Commerce
(MCOM) of Indira Gandhi National Open University (IGNOU). This report has not been
submitted earlier either to this University or to any other University/Institution for the fulfilment
of the requirement of a course of study.

Signature of the Student: Signature of the Supervisor:

Place: Place:

Date: Date:

5
 DECLARATION

I hereby declare that the proposal for the Project entitled ‘An Investigation into the Influence of
E-commerce Platforms on Local Retailers: A Case Study of Kollam District" by Fathima N has
been prepared after due consultation with me. The proposal has my approval and has, to my
knowledge, the potential of developing into a comprehensive Project Work. I also agree to
supervise the above-mentioned project till its completion.

Yours Sincerely

Dr MISHA V
Ass. Professor
Dept. of Commerce
SNC, Kollam

6
IGNOU – IDENTITY CARD

7
AN INVESTIGATION INTO THE INFLUENCE OF E-COMMERCE
PLATFORMS ON LOCAL RETAILERS: A CASE STUDY OF
KOLLAM DISTRICT

8
 CONTENTS

No Title Page No

1 Introduction 10
2 Literature Review 11
3 Significance of Study 12
4 Research Methodology 14
5 Limitation of Study 15
6 Findings 16
7 Conclusion 17
8 References 18

9
 1. INTRODUCTION

The Indian retail industry has experienced a significant transformation, marked by the entry
of numerous new players, rendering it one of the most dynamic and fast-evolving sectors. With a
projected total consumption expenditure nearing US$ 3,600 billion by 2020, up from US$ 1,824
billion in 2017, its impact on the country's gross domestic product (GDP) surpasses 10%, with
around 8% of total employment stemming from this sector. Notably, India stands as the world's
fifth-largest retail destination, as affirmed by various global indices. In the United Nations
Conference on Trade and Development's Business-to-Consumer (B2C) E commerce Index 2019,
India secured the 73rd position, showcasing its growing presence in the digital retail landscape.
Furthermore, India's ranking of 63 in the World Bank’s Doing Business 2019 report underscores
its conducive business environment. The retail landscape in India has witnessed a significant influx
of foreign direct investment (FDI), with India ranking 16th in the FDI Confidence Index. This
surge in investment underscores the global recognition of India as a promising retail market. [4]
E-commerce has revolutionized the retail sector, transcended locational constraints and enabled
retailers to reach consumers worldwide. While this has opened up new avenues for revenue
generation and expanded

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 2. LITERATURE REVIEW
Anthony D. Miyazaki and Ana Fernandez authored a report titled "Consumer Perceptions of
Privacy and Security Risks for Online Shopping," published in the Journal of Consumer Affairs,
[Volume 35, Issue 1, pages 27–44, in the summer of 2001. Eunju Ko and Doris H. Kincade
conducted research on "The Impact of Quick Response Technologies on Retail Store Attributes,"
which was published in the International Journal of Retail & Distribution Management. Shanthi and
Kannaiah (2015) conducted a study titled "Consumers' Perception of Online Shopping," revealing
that individual perceptions of online shopping vary and are influenced by factors such as
connectivity and exposure to online platforms. Their findings indicate both similarities and
differences in consumer perceptions based on individual characteristics. Argha (2014) investigated
factors influencing online purchases in Kolkata in a study titled "Online Shopping: A Study of the
Factors Influencing Online Purchase of Products in Kolkata." Their research highlights the rapid
growth of online shopping in India, with significant factors including cost, convenience, product
quality, and seller reputation influencing purchasing decisions. Sanjeev Prashar (2017) explored the
effects of online shopping values and website cues on consumer behavior in a study employing the
S–O–R framework. Their findings attribute the growth of online shopping in India to technological
advancements, rising standards of living, a youthful demographic, an expanding middle class, and
increased internet accessibility through broadband and mobile devices. The entry of global e-
commerce giants has further intensified competition within the market. Drawing from the work of
Hirschman and Holbrook (1982), motivations for online shopping encompass both utilitarian and
hedonic dimensions. While some consumers approach online shopping as a means to solve practical
problems, others seek enjoyment, stimulation, and sensory experiences, reflecting a spectrum of
motivations within online consumer behavior.

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 3. SIGNIFICANCE OF THE STUDY

This research endeavors to investigate the factors influencing the impact of e-commerce on small
retailers, with a specific focus on Kollam. The significance of this study lies in the growing
preference for e-commerce platforms among consumers. E-commerce has significantly
diminished the importance of physical location for retailers, enabling them to reach customers
worldwide. This expanded reach holds the potential for substantial increases in revenue and
customer base. Additionally, innovations such as eBooks have contributed to the diversification
of revenue streams for businesses. Nonetheless, heightened competition in the e commerce
landscape poses challenges for traditional retailers, potentially resulting in significant business
attrition.

3.1 statement of problem

E-commerce has elicited both favorable and adverse effects on businesses globally. While some
small enterprises perceive e-commerce as a tool wielded by established market leaders to extend
their reach and stifle competition from startups, others regard it as an avenue to showcase their
offerings to a wider audience and compete with larger players. The evolving trends within the e-
commerce sector play a pivotal role in shaping the trajectory of the entire retail landscape. [8]
The influence of e-commerce on the retail industry is profound, compelling traditional retailers
to enhance their offerings to provide an equally immersive shopping experience. In India, the e-
commerce sector has experienced remarkable growth in recent years, driven by various
contributing factors. These include the rapid integration of technology by Indian consumers,
significant expansions in internet accessibility, the advent of enabling technologies, innovative
business models and diverse payment alternatives facilitated by e commerce enterprises.

3.2. Scope of the Study

The research is geographically delimited to the Kollam district, providing an in-depth analysis
of the implications of e-commerce on small retailers operating within this region. By narrowing
the scope to Kollam, the study aims to capture the localized dynamics and challenges faced by
small-scale retailers amidst the burgeoning e-commerce landscape. [9] This focused approach
enables a nuanced examination of the socioeconomic factors, market conditions, and regulatory
frameworks that shape the e-commerce ecosystem within the district. Additionally, by
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exclusively examining the impact on small retailers, the study seeks to uncover the unique
opportunities and challenges encountered by this segment of the retail industry in adapting to e-
commerce trends.

3.3. Objectives of the Study

• To examine the impact of online shopping on traditional offline retail sectors
. • To assess the challenges encountered by small retailers following the implementation of local
e-commerce applications
. • To analyze shifts in consumer purchasing behavior amidst the COVID-19 pandemic.

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 4. RESEARCH METHODOLOGY

The validity of any research is based on a systematic method of data collection and proper
analysis of data collected. The methodology adopted for the proposed study is given below:

SOURCES OF DATA
Both primary and secondary data is used for carrying out the study. Primary data is collected
with the help of a Structured Questionnaire. While, secondary data obtained from periodicals,
journals, magazines, newspapers, websites, books and other reference material.

SAMPLING DESIGN
The sampling technique followed in this study is convenient sampling, which is a classification
of non-probability sampling method.

TOOLS FOR ANALYSIS

The data collected were classified and analyzed based on the objectives of the study. For
analysis statistical techniques like percentages, tables 1-5 and chi square test were used. The Chi-
square test was applied to examine the significance of variation in the opinion among online
shopping behavior of consumers during covid 19 pandemic period.

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 5. LIMITATION OF THE STUDY

Limitations of the Study •

The study solely focuses on small retailers, limiting the exploration of e-commerce platform
impacts.
• The findings are based on primary data gathered from 300 small retailers in Kerala state, thus
limiting the generalizability of the results.
• This study, being academic in nature, is constrained by factors such as time and budgetary
considerations.

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 6. FINDINGS

• A staggering 30% of respondents are proprietors of bakery shops, representing a significant

portion of the surveyed retailers.
• Notably, 42% of respondents boast turnovers exceeding 350,000 units, illustrating robust
financial performance within this group.
• The educational landscape of respondents reveals that 32% hold a coveted graduate degree,
symbolizing the prevailing academic attainment among them.
• A remarkable 90% of respondents express a keen interest in transitioning their business online,
yet formidable obstacles hinder progress. Specifically, 40% cite higher capital-intensive costs as a
primary challenge, while 36% face hurdles due to a lack of technical expertise.
• Despite widespread interest, only 40% of respondents have delved into online business ventures,
with a notable 16% reporting an exceptionally positive experience.
• Intriguingly, the data showcases a compelling correlation between the advent of e-commerce
platforms and its impact on retailers. The entry of e-commerce sites has precipitated a substantial
decrease in sales for 70% of respondents.
• Furthermore, the findings suggest a discernible nexus between shifts in consumer purchasing
patterns and the COVID-19 pandemic. A staggering 60% of establishments report a decline in
offline business, underscoring the profound impact of the pandemic on traditional retail operations.
Conclusion Amidst the rapid transformations in our dynamic

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 7. CONCLUSION

Amidst the rapid transformations in our dynamic world, our daily lives have undergone profound
changes, notably in our shopping habits. The burgeoning preference for online shopping over
traditional offline retailing reflects the pervasive influence of technology in our lives. Today,
retailing transcends physical boundaries, offering the International Research Journal on Advanced
Engineering Hub (IRJAEH) e ISSN: 2584-2137 Vol. 02 Issue: 04 April 2024 Page No: 1101 -
1107 https://irjaeh.com https://doi.org/10.47392/IRJAEH.2024.0152 International Research
Journal on Advanced Engineering Hub (IRJAEH) 1107 convenience of a virtual shopping
experience where goods can be effortlessly added to carts with a single click. While this shift has
marginalized local retailers in the face of fierce competition from e-commerce giants, the enduring
presence of nearby stores in our communities remains a source of reliability and resilience,
particularly during times of crisis such as the ongoing pandemic or natural disasters. However, to
thrive rather than merely survive, retail stores must adapt and evolve to meet the challenges of a
competitive marketplace. Both e-stores and brick and-mortar establishments have a vital role to
play, each offering unique advantages to consumers. In this consumer-centric market landscape,
prioritizing consumer satisfaction is paramount. Retailers must strive to deliver superior quality
products, fair pricing, and attentive after-sale services to earn and retain consumer loyalty.
Furthermore, offering additional value-added services can help foster lasting relationships with
consumers, ensuring stable sales and sustained success in the ever-evolving retail landscape.

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 7. REFERENCES

[1]. Andrew, J. R et al., (2004), “A Typology of Online Shoppers Based on Shopping Motivations”,
Journal of Business Research, 57(2): pp. 748-757. 2.

[2]. Anthony d. Miyazaki & Ana Fernandez (2001), “Consumer perceptions of privacy and
security risks for online shopping,” Journal of Consumer Affairs, volume 35, issue 1, pages 27–
44.

[3]. Argha Sen R, Online shopping: A Study of the factors influencing the online purchase of
products, International Journal of management and commerce innovations ISSN 2348-
7585(Online), Vol.2, Issue 1, pp:(44-52), Month: April 2014

[4]. Banerjee, N., Dutta, et al., (2010), “A Study on Customers' Attitude Towards Online Shopping
– An Indian Perspective”, Indian Journal of Marketing, 40 (11): pp. 43- 52.

[5]. Dr. Shanthi R, Dr et al., Consumers’ Perception on online shopping, Journal of Marketing and
Consumer Research Vol.13, 2015.

[6]. Eroglu, S.A., Machleit, K.A. and Davis, L.M. (2001), “Atmospheric qualities of online
retailing: a conceptual model and implications”, Journal of Business Research, Vol. 54 No. 2, pp.
177-84.

[7]. https://nationvalleynews.com/2019/02/19/im pact-of-e-commerce-on-the-retail-market/

viewed on 01.12.2020

[8]. https://www.digitaldoughnut.com/articles/20 20/january-2020/impact-of-ecommerce trends-

on-the-retail-industry viewed on 01.12.2020

[9]. Mathwick, C., Malhotra, N.K. & Rigdon. E (2002), “The effect of dynamic retail experiences
on experimental perceptions of value; an internet and catalog comparison”, International journal
of management and commerce innovations ISSN 2348-7585 (Online), Vol. 2, Issue 1, pp 44-52
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[10]. Sanjeev Prashar, T. Sai Vijay and Chandan Parsad (2017) “Effects of Online Shopping
Values and Website Cues on Purchase Behaviour: A Study Using S–O–R Framework,” The
Journal for Decision Makers, Volume: 42 issues:1: pp:1-1

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