CUSTOMERS’ PERCEPTION ON BRICKS AND CLICKS OF KITEX LTD. KERALA: A SYSTEMATIC ANALYSIS Vignesh Karthik S A1, Ameer P A2 1,2Research Scholars, School of Studies, CUSAT

Abstract estimated to grow over 1200% to $200 billion by Bricks and Clicks is a business model by 2016, up from $15 billion in 2016, according to which a company integrates both offline a recent report by financial service firm Morgan (Bricks) and online (Clicks) business Stanley. By then, online will account for operations. This kind of companies can offer 12% of India’s overall retail market, from just customers the benefits of fast online 2% last year. A new study by Forrester Research transactions and traditional face to face has stated that approximately a fifth of total retail service simultaneously. The present study has sales will take place online by 2021 in Asia been conducted with the objective of Pacific, 78 per cent from smart phones. The analysing bricks and clicks business model in study adds that online retail via mobile will grow Kerala in general and to identify factors at a CAGR of 15.6 per cent, to reach $1 trillion which are influencing customer’s decision to in 2020.The study further shows that Asia Pacific buy online or offline. Based on the data will be the largest region for online retail sales in analysis and interpretation, the study found the world, with China being the largest market that both kind of customers say, online and for e-commerce with $681 billion in sales. offline customers have their own specific However, the fastest growing e-commerce reasons to choose mode of their purchase market in the world, according to Forrester, is (either offline or online). The study also found undoubtedly India. that, the variables like comforts of physical The Indian Institute of e Commerce states that by atmosphere, salesman’s influence and sales 2020, India is expected to generate $100 billion experience are the major forces which online retail revenue out of which $35 billion influence a customer to buy offline while will be through fashion e-commerce. Online variables such as ease of purchase, apparel sales are set to grow four times in coming convenience, flexibility, time are the major years. By 2026, Morgan Stanley expects India to influencing factors which drive a customer to have 475 million online shoppers, up from 60 opt online buying mode. The present study million in 2016. It was in this backdrop, Kitex has proved that the future of Indian retail Ltd. decided to launch its online window (Kitex business is to be depending wholly on Bricks Lifestyle) to expand its reach to far off and Clicks business model. customers. Kitex Ltd is its processed Key words: Brick and Click, clicks and flips, products like lungies, dhothies, bed sheets and e Commerce, Online and Offline, Kitex Ltd. mulls etc. mainly through offline mode. The company is having 2500 dealers spread all over I. INTRODUCTION Kerala. Besides, the company is selling their Internet & e-commerce shows a tremendous Greige fabrics to various garment exporters in growth in Indian market. It was mainly because Mumbai, Bangalore, Delhi, Chennai, Calcutta, of the current online retail trends, availability of Ahmadabad etc. Around 75 % of the sales is more payment options, new technologies & done through authorized agents on commission electronic gadgets etc. Online retail in India is basis and through Direct Marketing. The

ISSN (PRINT): 2393-8374, (ONLINE): 2394-0697, VOLUME-4, ISSUE-10, 2017 46 INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR) garments manufactured by the group under the Armstrong and Kotler (2000) named five name Kitex are accepted all over the functions for the distribution channel: world. information; promotion; contact; matching; It is in this context, the present study is an negotiation. Hudson (2008) added „financing‟ to attempt to collect and analyse the data on these functions which should help the perceptions of customers regarding offline and organization in bridging the gaps of time, place online or bricks and clicks modes of kitex and possession between itself and the customers marketing, and to understand what are the factors (Armstrong and Kotler, 2000). which are influencing a customer to buy online or offline. According to Scott (2009), grow your business' including market research, advertising, publicity, II. LITERATURE REVIEW sales, merchandising and distribution. With According to Reddy (2003), Marketing is one of traditional marketing techniques all of these the business function most dramatically affected things are delivered in print format or in person. by emerging information technologies. Internet Internet marketing however, uses the power of is providing companies new channels of online networks and interactive media to reach communication and interaction. It can create your marketing objectives...no paper, no closer yet more cost effective relationships with telephone calls, no in person appearances. customers in sales, marketing and customer Internet marketing can save your time, money support. Companies can use web to provide and resources. Electronic versions of catalogues, ongoing information, service and support. It also brochures, white papers, data sheets etc. don't creates positive interaction with customers that have to be printed, stored or shipped to your can serve as the foundation for long term (Reddy, customers resulting in an enormous savings in 2003) printing and storage costs. And what about manpower (or lady power) costs? It is no longer Dannenberg and Kellner (1998), in their study, requires as many people to handle mailing and overviewed the opportunities for effective distribution of your marketing collateral...more utilization of the Internet with regard to the savings Updating catalogues, brochures and any banking industry. The authors evaluated that other marketing collateral you produce can be appropriate application of today’s cutting edge accomplished as needed online and in lightning technology could ensure the success of banks in speed. There's no need to send revised material the competitive market. They evaluated the out to a printer and then have to wait for a revised services of banks via internet as websites provide version, a great savings in time. And, time is sophisticated line of products and services at low money. More information can be provided to price. The authors analyzed that transactions via customers with little if any additional cost. internet reduce the risk of data loss to customers, Adding more pages to a document online chance to cut down expenses, higher flexibility involves virtually no expense compared to the for bank employees, re-shaping the banks‟ additional cost and space required to deliver the image into an innovative and technologically same thing in print format. You can reach more leading institutes, etc. The researchers found that customers than ever before and it doesn't cost a banks could move one step further by entering penny more. There's no postage or courier into a strategic alliance with internet service charges to pay. Distribution costs are the same provider. So, the bank of tomorrow stands to be whether you reach one or one million. Finally, feasible with today’s technology( Dannenberg for little or no cost you can have several and Kellner, 1998). electronic versions of the same catalogue McCabe (2009) highlighted the necessity of customized to meet the needs of different understanding how to get access to the customer audiences. The difference between traditional to deliver the marketing message and the and Internet marketing is money and Internet organization’s products and services. Hudson marketing improves your bottom line (Scott, (2008) agreed with him and stressed the 2009). importance of designing a “distribution system” III. OBJECTIVES OF THE STUDY to work as a framework for making the 1. To identify the factors affecting online organization’s services available for customers. distribution channel of Kitex Ltd.

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2. To study the demographic through questionnaire and with the help of characteristics’ of customers of Kitex interview and Secondary data has been collected Ltd. from standard textbooks, Newspapers, 3. To identify the reach of the company’s Magazines and Internet. online channels among the customers. 4. To suggest improved online channel V. DATA ANALYSIS AND distribution models for Kitex Ltd. INTERPRETATION In this section the researcher has made an attempt IV. RESEARCH DESIGN to analyse the data collected from respondents The study has adopted Descriptive Research through questionnaire and result of percentage Design as the main aim is to identify and analysis are presented in tables below. SPSS has describe factors affecting online distribution been used to analyse the collected data. channel of Kitex Ltd. . The population of the V.1.DEMOGRAPHIC REPRESENTATION study is online-offline customers of Kitex Ltd in The following four tables show that the Ernakulam District. Based on convenience demographic representation of samples which sampling technique, the researcher has collected will help us to understand how demographic primary data from 100 sample respondents factors are distributed among the sample data. Table: 1 Age Wise Distribution of Samples

Description Frequency Percent

under 18 19 19.0

18-25 28 28.0

26-35 23 23.0

36-45 18 18.0

Above 45 12 12.0 Total 100 100.0

Source: Primary data

Table: 3 Education Level of Respondents Description Frequency Percent SSLC 16 16.0 HSE 24 24.0 Graduation 38 38.0 PG 19 19.0 Other 3 3.0 Total 100 100.0

Source: Primary data

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Table: 3 Gender wise Distribution

Description Frequency Percent Male 56 56.0

Female 44 44.0

Total 100 100.0 Source: Primary data Table: 4 Occupation wise Distribution Description Frequency Percent Govt. Employee 4 4.0 Pvt. Employee 26 26.0 Business 6 6.0 Student 39 39.0 Other 25 25.0 Total 100 100.0 Source: Primary data V.2. FACTORS INFLUENCING BRICK PURCHASE MODE The tables under this heading will summarise, how factors such as Comfort of Physical Atmosphere, Shopping as an Experience and sales man’s influence are influencing a buyer to choose offline mode of buying. Table: 5 Purchase from Showrooms Description Frequency Percent Always 8 8.0 Often 20 20.0 Sometimes 24 24.0 Rarely 47 47.0 Never 1 1.0 Total 100 100.0

Table: 6 Comfort of Physical Atmosphere Description Frequency Percent Strongly agree 29 29.0 Agree 48 48.0 Neutral 17 17.0 Somewhat disagree 6 6.0 Total 100 100.0 Source: Primary data

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Table: 7 Sales man’s Influence Description Frequency Percent Strongly agree 1 1.0 Agree 5 5.0 Neutral 23 23.0 Somewhat disagree 54 54.0 Strongly disagree 17 17.0 Total 100 100.0 Table: 8 Shopping as an Experience Description Frequency Percent Strongly agree 4 4.0 Agree 38 38.0 Neutral 20 20.0 Somewhat disagree 32 32.0 Strongly disagree 6 6.0 Total 100 100.0 Source: Primary data V.3. CLICK MODE OF MARKETING Click mode of marketing means online marketing. The following two tables depicts that there is small portion of customers are preferring go for online marketing (Click marketing) Table: 9 Usage of Online Portal of Kitex for Individual Purchase

Description Frequency Percent Always 1 1.0 Often 16 16.0 Sometimes 17 17.0 Rarely 10 10.0 Never 56 56.0 Total 100 100.0 Source: Primary data

Table: 10 Use both Online & Offline Mode of Purchase

Description Frequency Percent Strongly agree 13 13.0 Agree 6 6.0 Neutral 6 6.0 Somewhat disagree 3 3.0 Strongly disagree 72 72.0 Total 100 100.0 Source: Primary data

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V.3. FACTORS INFLUENCING CLICK PURCHASE MODE In this section, how factors such as Accessibility, busy lifestyle of customers, Updated and exclusive product information, privacy and internet security, ease of purchase and timely delivery of product influence the customer to buy online is discussed. Table: 11 Accessibility

Description Frequency Percent Strongly agree 24 24.0 Agree 40 40.0 Neutral 11 11.0 Somewhat disagree 22 22.0 Strongly disagree 3 3.0 Total 100 100.0 Source: Primary data Table: 13 Busy Lifestyle of Consumers

Description Frequency Percent Strongly agree 7 7.0 Agree 40 40.0 Neutral 29 29.0 Somewhat disagree 13 13.0 Strongly disagree 11 11.0 Total 100 100.0

Source: Primary data Table No.14 Updated & Exclusive Product Information

Description Frequency Percent Strongly agree 6 6.0 Agree 15 15.0 Neutral 74 74.0 Somewhat disagree 4 4.0 Strongly disagree 1 1.0 Total 100 100.0 Source: Primary data

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Table: 16 Privacy & Internet Securities

Description Frequency Percent Agree 13 13.0 Neutral 85 85.0 Somewhat disagree 1 1.0 Strongly disagree 1 1.0 Total 100 100.0 Source: Primary data

Table: 17 Convenience of Purchase

Description Frequency Percent Strongly agree 11 11.0 Agree 24 24.0 Neutral 46 46.0 Somewhat disagree 5 5.0 Strongly disagree 14 14.0 Total 100 100.0 Source: Primary data

Table: 18 Ease of Purchase from ‘Kitexlifestyle’

Description Frequency Percent Agree 20 20.0 Neutral 78 78.0 Somewhat disagree 1 1.0 Strongly disagree 1 1.0 Total 100 100.0 Source: Primary data

Table: 19 Timely Delivery of Products

Description Frequency Percent Highly satisfied 1 1.0 Satisfied 19 19.0 Neutral 78 78.0 Dissatisfied 2 2.0 Total 100 100.0 Source: Primary data

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VI. FINDINGS OF THE STUDY company website & company‟s e- Based on the data analysis made in the previous retailing website (kitex lifestyle), tie up section, the researcher has come with the with other e-retailers (Amazon & ebay). following findings.  A comprehensive Internet marketing VII. CONCLUSION strategy can increase sales substantially The study was conducted at Kitex Ltd. with the for a business. The Internet marketing objective of understanding the perceptions of strategies of Kitex Ltd. are participation customers regarding online and offline modes of of social media, search engine their business operations. It was found that optimization (SEO), blogs, email lists, majority of customers are not much aware about company website affiliate marketing. all the online channels of Kitex Ltd, especially  Kitex Ltd. has tie up with Amazon & the Kitex Lifestyle. The demographic result ebay to sell their products in India. showed that, compared to female, males are  DTDC, Fedex & Professional courier are more active in buying kitex products especially their major courier & distribution through online mode. From the study we can partners in India. understand that only few respondents are used  The factors affecting online distribution Kitex Lifestyle. The objective of the study is to channel of Kitex Ltd. are age, gender, find out the factors affecting online distribution occupation, online presence of the channel of Kitex Ltd. the variable considered for people, technology advancement, online this study are age, gender, occupation, online presence of the company, quality & presence of the people, technology advancement, simplicity of the website, payment & online presence of the company, quality & delivery options, availability of products. simplicity of the website, payment & delivery  From this study, it shows that only 3% of options, availability of products. The study found the respondents know all the online that the reach of the online channels of Kitex Ltd. channels of Kitex Ltd. and the 58% of the is limited in the crowded market. So it is respondents are not aware about none of suggested that the company has to bring in a the online channels of Kitex Ltd. 13% sophisticated online channel distribution model respondents agreed with the statement, to expand the customer reach in future. 12% respondents somewhat disagreed. 14% of the respondents have no opinion References: regarding the same. 1. Afuah, A., Tucci, C. L. 2000. Internet  Through this study, it found that the reach Business Models and Strategies: Text of the online channels of Kitex Ltd. is and Cases Irwin/McGraw-Hill: New need to be improved. Majority of York, NY. customers have little understanding 2. Amit, R., Schoemaker, P. 1993. Strategic about the online channels of Kitex Ltd. assets and organizational rent. Journal, 14: 33-46.  The study found out that more than 66% 3. Porter, M. E. 1985. Competitive of respondents have not much aware about the Kitex Lifestyle is an e-retailing Advantage: Creating and Sustaining Superior Performance, Free Press, New website of Kitex Ltd. York, NY.  From the study majority of the 4. Prahalad, C.K., and Venkat Ramaswamy. respondents said that the quality of “The Future of Competition: Co- products of Kitex Ltd. is good. Creating Unique Value with Customers.” The online channel distribution models  Boston, MA: Harvard Business School of Kitex Ltd. are Face book page, blog, Press, 2004.

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