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Blog Entry# 2044082
Posted: Nov 01 2016 (13:42)

1 Responses
Last Response: Nov 01 2016 (13:42)
Rail News
Nov 01 2016 (12:03)   Indian Railways may link-up with Flipkart, Amazon, Snapdeal, emerge as a huge shopping destination

Jayashree   38675 news posts
Entry# 2044082   News Entry# 284470         Tags   Past Edits
Currently travelers finish all their shopping before boarding the train.
Currently travellers finish all their shopping before boarding the train. According to a report in Business Standard, if the Indian Railways plan to join hands with e-commerce players—Flipkart, Amazon and Snapdeal—works, then travellers could be shopping all the way in their reserved compartments till they reach their destination. While the move will add heft to railways non-fare revenues, it will be a game-changer for e-commerce companies as they will be in a position to cater to the needs of half a billion reserved railway travellers annually, many of whom have never shopped online.
the profit-sharing plan, the railways would allow e-commerce companies to set up warehouses and pick-up points across 400 stations. The move works to the benefit of both parties: the railways have been looking to raise non-fare revenues by 10-20% while e-commerce companies are looking to a deeper presence in smaller towns.
This also fits into the railway plan to equip 100 major railway stations with high speed Wi-Fi connectivity with the help of Google by the end of the year. Already close to 60 stations provide the service. The railways are also looking to allow cab aggregators to tap railway passengers in big cities. What that means is that a fully-charged mobile phone will be the key determinant while travelling long-distance on Indian Railways in the not-too-distant future. It would over time affect the viability of brick and mortar stores.

Nov 01 2016 (13:42)
For Better Managed Indian Railways~   1933 blog posts
Re# 2044082-1            Tags   Past Edits
This could really be a big game changer and IR must think and act fast. Some of the supporting facts are:
(1) The sales volumes of Online shopping companies is increasing very rapidly since a few years.
(2) With increasing confidence of customers in online shopping, Today sale large equipments like acs, coolers, refrigerators, washing machines etc is also picking up fast.
(3) Today
most of online goods sold move by air due to concessional agreement with major freight carriers. Still the logistics cost is very high. Cost of logistics and the reach is the most important factor for the online companies to increase their volumes. If IR make proper agreements with these ecommerce players, it can provide much cheaper transportation and much wider/deeper reach to them, due to much huge IR network (over 7000 stations in India) as opposed to small network of commercially operated airports (only about 75 in India).
(4) Currently Online shopping is less than 2% of total shopping done by Indians and is expanding very fast where as in developed countries it go as high as 30%. So there is a huge scope for the ecommerce companies to grow. E-com companies are looking for cheaper and reliable transport logistics and would like to join hands with more economical IR. Equal benefits/motivation is there for IR also, which is trying hard to bring unconventional (non bulk) and high value freight in its basket in an effort to increase its market share.
(5) Providing seamless wifi connectivity free of cost is very much possible for IR, as ecom companies shall be more than willing to get involved in it, as the train passengers shall love to utilise their journey time to visit online ecommerce sites and do shopping which was otherwise wasted. Time shall be gainfully passed, and the time, efforts, money spent in going to shops for purchasing shall be saved.
(6) IR already have developed stations and allotting space to e-com operators for storage of goods shall not be a problem. New building/ Extra floor may be constructed over the station buildings for the purpose, if required.
(7) IR+Ecom operators is a wonderful combination. IR can give Ecom operators a huge number of potent customers and at the same time do the job of transportation of sold goods. Ecom companies can add value to service provided by IR to its travellers and give additional revenue ti IR without incurring any additional cost and also give the non-conventional traffic like consumer goods etc, which IR is vying to bring under its ambit.

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