1.1 Global Trends

In the global scenario, the selling of art products through online platform gain popularity as sales of art products through this platform reached the magic figure of £8.7 million surged 71%from the first half of 2013.About the 27 percent of online buyers were new and younger one. The companies involving in the arts are building a platform for collectors and first time buyers to browse and purchase art items. eBay and Sotheby’s will start with live auctions at New York .

Internet competed for 17 percent of the lots offered in 2013 by Sotheby’s. Sotheby’s auction sales in the first half of the year rose 22 percent to $3.12 billion. It sold 492 lots for more than $1 million so far this year and 26 per cent of buyers were new clients (Becker, HJ 1998).

1.2 Indian Online Market:

The online shopping industry in India is rapidly growing with the entry of large players such as AMAZON and others along with the existing domestic players. One could understand that the rapid growth of this industry from the fact that the players involved in this segment clinching mega deals and able to attract private equity players to invest in their expansion plans .Players like Flip kart, shop clues and snap deal adds many products in their kiddy by adopting innovative strategies like having tie up with the MSME industries and other local manufacturers besides announcing various benefits to the customers(https://en.wikipedia.org/wiki/Online_shopping).India is a heterogeneous country with numerous cultures and has significant variations in the buying habits of the people. It is interesting to see the kind of strategies and business decisions which have been implemented by various MNC’s operating from India. Since 1991, when the LPG concept was introduced in India, the market witnessed dramatic and dynamic changes thus lead some companies to flourish and few had been shut down within the shortest period of time. Unlike the European and American markets, Indian market has been enriched with various dimensions and different buying habits. Any company wants to enter in to India has to study the market extensively and make appropriate solutions to establish their business. If this was the case of other industries, consider the plight of Online shopping organizations. India is a still developing in nature and has been evolved in the various aspects, especially on the factors like touch and buy, having negotiations with the sellers and Price sensitive purchases .In this kind of market, selling the products through the virtual environment would be considered as hilarious one. Apart from that, most of the Indians do not have the required gadgets like computer and networking systems. Among the population of more than 1billion population, India has only 205 million internet users in which 10% of them buying the products through online. India is the country, which has the consistent policies in all aspects of economy that saved her during the recession. When the whole world got affected by it, India meticulously handled the affair and escaped unhurt by ensuring the growth of 4-5% GDP. In that line, an efficient and effective policy should be formulated to ensure the long term growth of the online shopping business.

2. TEACHING OBJECTIVES AND ISSUES:

This case is appropriate to discuss in the forum that consists of management students especially at the higher level and research scholars. This case is formulated to analyze the SWOT which can be applicable to all arts organizations to formulate policies to enhance the effectiveness of the online promotions of inherent nature of arts and the products in the market that has the significant growth potential.

2.1 Teaching objectives of this case study:

1) To encourage the students to formulate the cost structure to establish a website for arts organization.

2) To motivate the students to do the SWOT analysis with respect to arts industry entering into online promotion mode. .

3) To motivate the students to come out with the policy measures to enhance the effectiveness of online industry

4) To explore the areas in which the government has to concentrate to make the better policies towards the online industry.

2.2 Teaching Strategy:

This case study is appropriate to be discussed in the class rooms of the MBA students and scholar’s forums as these respondents are considered as the potential customers of the online shopping. While teaching the case in the class room, it is found that the students did not have prior knowledge on policy measures to be adopted and even some time they have not shown the clarity on conceptual model as they have lack of knowledge in these aspects. While asking the students about the online way of promoting the product is reasonable one, it is not fair in the part of researcher to ask the students to suggest the policy measures and the factors to be considered to frame those policies as this domain is vast and exhaustive one. Given that consideration to the above said factors, the researcher asked the students to read exhaustively and have the discussion with the stake holders about the various aspects of online trade, its inherent problems and suggest the suitable policy measures which would be implemented by the online shopping companies. Apart from that, the students were also asked to utilize the library and visit the websites of ASSOCHAM, EUROMONITOR, Business Dailies and other sources to gather the details of the industry.

3. STUDENTS ASSIGNMENT:

1) Analyze the market of online shopping and its potential.

2) Asked to formulate the cost structure for establishing a website for an arts organization.

3) Asked to do the SWOT analysis for an arts organization which tries to enter in to the online mode.

4) Asked the students to suggest the factors to be considered to frame the policy measures suitable for the Indian market.

5) Asked the students to suggest the policy measures to enhance the effectiveness of the online mode.

4. CASE ANALYSIS:

Analyze the market of online shopping and its potential and predict the growth pattern of the online shopping business. There is a common saying about the Indian retail consumers' "can't touch, won't buy" mentality. However, this is gradually changing with the rising trend of online shopping. The size of India's e-commerce market in 2013 was around $13 billion, according to a joint report of KPMG and Internet and Mobile Association of India (IAMAI). The online travel segment contributed over 70 percent of the total consumer e-commerce transactions last year.

Online retail, also known as "e-tail", will lead the industry's growth in the coming years. India's e-commerce industry is still in a nascent stage. Online shopping accounts for less than one percent of the total shopping in the country. Total global online sales reached $1.22 trillion in 2013. In China alone it was around $200 billion. Just around 12 percent of Indian population is into online transactions against more than half of their Chinese counterparts. This proportion is much higher in the developed countries like the US, where the figure is 64 percent. Internet connectivity and other logistics infrastructure are still a big drag. This makes servicing in smaller towns a bit challenging.

4.1 Growth Potential:

India's e-commerce business jumped by more than 80 percent in 2013 and the momentum is likely to continue for at least the next five-six years and the e-commerce business in India is expected to reach around $50-70 billion by 2020 on the back of a fast growing internet-connected population and improvement in related infrastructure like payment and delivery systems. Consumer expectations and shopping patterns are changing very fast. Online shopping is going to become main stream in the coming five-six years. smart phones would be the biggest online shopping driver in the coming years. Over half a billion Indians will switch to smart phones in the next five-six years. That's going to be a big driver of e-commerce in India. Online shopping is becoming increasingly popular in smaller cities. Tier-II and Tier-III cities are opening up very rapidly. By 2020, you will have e-commerce penetrated everywhere, whether it is smaller cities or rural areas.

Cost structure Recommended to the small scale art organization for the development of website

Home Page Development	Rs.20000/-
Inner Pages Development (4 pages) (Rs.7500/- per page)	Rs.30000/-
Web Hosting charges in Good Server for 1 year	Rs.50000/-
Total	Rs.100, 000/-
+ Service Tax 12.36%	Rs. 1, 2036/-
Total charges	Rs.11, 2036/-

5. STRENGTH AND WEAKNESS OF THE COMPANY:

5.1 Strength:

1) As the target group is students’ community, it is easy to reach them with the online mode as most of the students have smart phones in their hand.

2) Popularity of online trade get enhanced by sharing among students community through social networking sites like face book, Twitter and linked in etc as all the students have the accounts in these social media websites.

3) Comparison is possible in the online shopping

4) The intensity of Internet telephony has been increased in a rapid way

5) The market for an arts products is increasing in the significant way

6) High disposable income thus leads the people to spend more money to involve themselves in the various arts programmes.

7) Growing population of wealthy individuals is spending more on art, particularly for contemporary works

8) Increase in the buyer pool for products sold through online mode

9) Most online retailers are willing to offer big discount as a result of low overhead expenses

10) Buyers have more options as hundreds of items can be displayed without any constraints

5.2 Weakness:

1) Since this is the not for profit organization, expanding the operation by incorporating the technological aspects like establishing the website and server facility is difficult for them

2) This organization lack in expertise in maintaining the computer gadgets and other facilities to maintain the infrastructure in a perfect way

3) This company lack in expertise in marketing of the arts products through online mode.

4) Authenticity of the online portal

5) Sharing of credit and debit card details.

5.3 Opportunities:

1) Increase in student population

2) Rapid speed of urbanization

3) More number of people familiarize with the computer operations

4) More number of youngsters joining the bandwagon of online shopping

5) Smart Phone usage is significantly increased

6) Traffic congestion is horrible in India that leads the people to learn the arts through the online mode.

7) In India, the work life balance is proper so that both the Husband and Wife don’t have the time to relax themselves by learning the dynamics of arts through direct mode.

5.4 Threats:

1) The concept of online shopping can be easily copied by the competitors

2) Since the India is lack in cyber law, it is difficult for the companies to operate in this environment as they don’t have the expertise and resource to engage in lobbying.

6. FACTORS TO BE CONSIDERED TO FRAME THE POLICY MEASURES SUITABLE FOR THE INDIAN MARKET.

6.1. Positive Factors:

1) India is a developing country with the highest percentage of younger population (More than 65%.

2) The purchasing power of Indians is increased in multifold thanks to high disposable income.

3) India’s economic growth superior compared to other countries in the region.

4) Indian cities are becoming more crowded and in future the people will face the problems of the mobility thus leads to enhancement of online shopping.

6.2 Negative Factors:

1) India is still as considered as the Internet starving country.

2) Only 10% of Indians have the Internet facility

3) Only people live in cities choose the online platform while accessing the arts products.

4) Most of the Indians believe the policy of touch and buy when making purchases.

5) Most of the Indians have the fear on payment security and the quality of arts products.

7. POLICY MEASURES TO ENHANCE THE EFFECTIVENESS OF THE ONLINE SHOPPING.

1) A separate board or organization to be established that has to arm (Online with the regulatory board) with the enormous power to have the effective control over the business.

2) The rules and policies should be framed in such a way that, it would not create impediments for the growth of the industry.

3) Formulation of the policies should encourage the participation of many players in the industry

4) The industry should be freed from the cyber crime offences and the offenders to be dealt with serious consequences

5) The law should be formatted with the provision of safe guarding the interest of the customer.

6) Rapid and immediate actions should be taken against the defaulters without any discrimination.

7) It is likely that the more number of customers prefer to learn the arts through online mode in future. So the protection against any mal practices has to be dealt with the strong rules and regulations.

9) The online shopping companies must ensure the security and safety of the online users

10) Introduction of Uniform taxation system to avoid the tax anomaly

8. DECISION:

By doing the SWOT analysis, it is decided that to recommend the organization to go ahead with the promotional programmes through online mode as there would be huge opportunities for these companies to do excellent business in future. As more and more people are entering in to the bandwagon, the government will try to evolve the policy measures to make this business model as s successful one for an arts organization. The policy measures suggested in the case study can be used by the stake holders involving in the online shopping business.

9. RESEARCH BASIS FOR CASE:

The case was taken voluntarily by the researcher to perform the SWOT analysis for arts organizations and formulate policy measures to enhance the effectiveness of the online trade. This case was designed in such a way that it can be used by all arts organizations.

10. REFERENCES:

1. Becker, HJ 1998, ‘Internet use by teachers’. Available: http://www.crito.usi.edu./TLC/findings/Internetuse/startpage.html.

2. Coimbatore, Information available from <https: //en.wikipedia.org /wiki/ Coimbatore>. [26 March 2016].

3. Online Shopping, Information Available from: <https://en.wikipedia.org/wiki/Online_shopping >. [12 February 2016].

Received on 08.03.2017 Modified on 23.03.2017

Asian J. Management; 2017; 8(3):451-454.

DOI: 10.5958/2321-5763.2017.00072.5