While B2B transactions constitute the bulk of business on the Net, B2C segment is at a nascent stage. In the B2C segment which products do you think will be successful?
For being successful on the Internet, there are a couple of must characteristics. Firstly, products must be commoditised. Consider compact disc. One knows the title that he wants to buy so he can just order it on the Internet. Secondly, the product must lend itself for Internet retailing. Consider motor insurance, it can lend itself immediately for Internet retailing.

Can the service sector lend itself to the Internet?
Consider the banking sector. There is this pensioner who goes to the bank to collect his pension every month. For him, it is a big event. He goes to the bank, has a chat with the banker and has an eye-to-eye contact. So, in the case of a pensioner, Internet retailing may not work. However, the younger generation today is much more computer-savvy. Already most of them are using the ATM extensively.

Banks can obtain a database of customers to whom they can offer better services. Say, 20 per cent of customers of a bank account for as much as 150 per cent of its profits. Banks can target these customers and offer them free services through the Internet.

Do you think the Internet can work in things such as retailing?
Before selling on the Net, one must take care of three things - time, cost and quality. Wherever opportunities lend themselves to the Net, the Internet will be successful. Probably, in the case of medicines the Internet may be successful. Take the case of a diabetic or a blood pressure patient. There is a standard prescription that he follows every month. In such cases, the Internet could be useful.

However, in the case of perishable goods one has to be extra careful. One may need refrigeration and local stock points. People may have to take care of logistics themselves. One just cannot use DHL or Fedex for everything as it may turn out to be costly. Probably in cities like Mumbai one may have to use a courier like Vichare whose network is strong and costs are cheaper.

All said and done, various legislations may act as barriers in e-tailing. For example, sales tax rates are not the same across the country. The government has to alter the Negotiable Instruments Act and the Merchants and Establishments Act for facilitating electronic transactions.