Conventional shopping Vs Online Stores

CONVENTIONAL SHOPPING VS ONLINE STORES.....

There are so many rumours now a days about recession, hyper inflation, stores running out of business, unemployment and much more that I ha actually a truth.

Since IT took place, it has modified hundreds of thousands trends. These changing trends include almost every aspect of our daily life.

It seems like people are much more aware of the reality behind business. There was a time when majority of well off customers would go for nothing less than a brand or custom products. This complex in people made a lot of businesses prosper.

Shockingly, this complex started diminishing by the time as internet provided more and more information on variety and economical replacements for this brands.

A customer started understanding that why pay $99.99 for something that can be replaced for something available online for $12.25 with free shipping. It is also better in all aspects than the one available in the market.

Second emotional blackmailing point for businesses was patriotism, if customer buys a product made in the country then country prospers. It went all well until customer found it hard to afford it. With the loss of consumer purchasing capability the patriotism left behind too.

Third emotional blackmail is threat, frightening and safety. Yes, some customers buy this ideology and are willing to spend for that but again this could not prove as a religion for wide range of customers.

The sellers online have a huge deal of benefits against conventional sellers.

Online sellers do not have overheads like conventional sellers do, I.e. rent, utilities, employees and manpower, equipment, taxes, building and fixtures, plant and machinery, stationary, licences and certifications, running costs, initial costs, administrative department, warehouse and storages etc. So they can afford to sell for extremely lesser price than it could be available in conventional stores.

Companies are working hard to compete and fight this growing trend by replacing their suppliers from their own country of manufacture to the companies abroad, they invest in all means to reduce the Labour force by investing in expensive software's and robots so that they don't have to hire a lot of employees and they could increase their profit margins or at least compete with other providers. On the other hand when companies avoid hiring more employees and attempt to replace the Labour force with robots and software's then customers lose more on their purchasing power and this vicious cycle keeps going on. Until recession hits and government refuel and restore everything for another couple of years.

In order to cut the cost and compete companies have exceeded to dangerous point, where they hire people from abroad or when they open another company abroad to hire cheaper employees.

This is getting out of control because whoever wants to remain in business today, has to fight with other extremely cheap available prices. But again when companies send these local jobs outside the country, people lose jobs and try to find more cheaper and cheaper for survival. Again this forms a vicious cycle of destruction in which every negative element promotes the other negative element to grow more.

Companies know it well that in the cost of 20 employees in country will easily afford a company with 100 employees abroad then they do not hesitate.

For example, but in India, a call center employee is considered a rich well off who makes $250.00 per month. It does not matter if the employee there can't take days off or if they have to work 16 hours a day. Most of the entry level call center positions start from $50.00 a month. The security and personal information that is compromised with non trustworthy employees is a complete separate problem.

Teenagers working online from Asian countries can enjoy better life style than an American by working online making around $100.00 a month.

If one day government makes it a law on American companies to hire their own nationals for all jobs then a clerk might start making $25.00/hour due to the demand and supply rule. But it does not happen. This is the reason why the quality of jobs and quality of wages has clashed down like sand castle.

In order to survive, people might need to learn to change and adapt to the new changes that happen on continuous basis. Set rules through decades and centuries have modified.

Educational system, cultural jobs, preferences and life styles are rapidly changing than ever before. It is pushing the generations to the point to adapt to survive or stay out of the business of life.

The way processes going into automation and self operating, soon the companies will operate with least amount of workforce. Probably, one man would be seen running a company administrative and warehouse operations with just handful of helpers.

Is it possible that in near future each and every individual has to be a entrepreneur to survive. Are moving back to the same point in orbit where we started from, barter trade and self help trend. Would the medium of exchange, money, gold, silver, coins go valueless and worthless.

Please comment........