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Indian consumers have never had it so good, if the loud noise in Indian media on online commerce is anything to go by. The media, I believe, is equally to blame for such a perception. Most of us would like the world to believe that the e-commerce party is expected to go on forever and consumers can buy products at 30-40 per cent discounts forever. That there is another side to the entire story is neither adequately reported nor analysed.
Scores of consumers, who have ordered online, are grappling with either sub-standard or fake products on many occasions, while others are yet to receive their products weeks after ordering it. Online commerce portals may be throwing discounts at consumers to lure them away from the brick-and-mortar stores, but this party is unlikely to last forever for a number of reasons. For starters, companies that are building business models based on mindless and unsustainable discounts will wake up and realise that consumer fidelity is something they cannot take for granted. Second, in the world of social media and consumer reviews, a brand can get irreparably damaged if a company's brand takes a hit.
Several years ago I remember Reliance Infocomm launched its wireless services with much fanfare in December 2002, but the product failed to live up to the expectations of consumers, who had paid a hefty amount upfront for the handset and the mobility service. The company came out and apologised to its dealers and consumers and went back to the drawing board to rectify its mistakes. I remember asking Ratan Tata if he was prepared for a backlash from consumers if price was the only proposition the Nano offered consumers. Mr Tata was confident that the product would be well received. The sales of Nano after the launch are enough to prove what I am trying to say.
Companies in their arrogance forget that consumers want more out of products than just the price. A price warrior in a category like detergent may fare better but when it comes to devices, garments or automobiles, an absolute compromise on experience or quality is not acceptable. Shubham Sachdeva, a Flipkart consumer, claims he bought an Apple Magsafe charger from the portal, only to discover it was not working. Upon calling Flipkart, he directed to the Apple service centre, where he was told that it was a fake charger. Sachdeva is asking for a refund and has written in to Business Standard for assistance. Nishant is another unhappy consumer of Snapdeal, who has paid for an immersion rod and a room heater but even after 20 days the products have not been delivered. The consumer was promised a discount of Rs 236 but the company is yet to deliver.
On one occasion, when a fake speaker was delivered via Flipkart to a consumer, the company not only refunded the money but also offered Rs 1000 to the consumer as compensation. The online commerce portal has delisted the seller from its website. But there are several other complainants who have written in to this newspaper after similar episodes demanding refuds. Clearly, the portal need to be proactive towards such cases and not reactive when they reach the media.
What companies forget is that consumer behaviour in the online universe is a lot more fickle than in the physical world, where I may purchase products from a neighbourhood store or a brand that gives me assurance of after-sales support. Also, the consumer who has faced an issue while purchasing a product online is not going to silently disappear. He is going to make his displeasure felt quite loudly, which can be even more damaging to such companies, which claim to be market-places and do not take responsibility of products or their authenticity.
If shopping portals cannot deliver genuine value to consumers then the consumer is not going to hang around. Amidst the noise surrounding e-commerce the much larger issue of consumer rights and experience is conveniently being brushed under the carpet, lest the valuation apple cart is upset.
Also, in times when consumers are transacting on the mobile, e-commerce firms cannot be arrogant enough to be happy sitting as mobile apps on smart phones of consumers. If you want consumers to return to your app or website to transact, offer them a better consumer experience, not just discounts. Unless a shopping website becomes a destination app or a mobile site, growth will definitely not sustain.
