Look at V-Mart Retail, says Arun Baid

Arun Baid, Vice President-Research at Religare Capital Markets told CNBC-TV18, "V-Mart Retail is a company which caters to tier III, tier IV cities of our country. So, it is meeting the aspiration market basically. Penetration levels are obviously low for e-commerce at the same time the customers there believes in touch and feel and then only buys the product.""Our view is that e-commerce is still a long way away to enter into these kind of markets. You will have some segments which will move to that market but not to the entire market. On top of it you have to realise that V-Mart typically caters to the mass market. For an example sake, if the average selling price of an apple is about Rs 260, that is the market in which the consumer is very particular of what he is buying and for him to take a risk of that amount of buying online and that product not working out the way he is thinking is a bit high. So, you will have a bit of youth which will move to that segment for sure but a major market will still be with this kind of companies," he added."On the front of their competition, V-Mart typically where they operate sort of 122 stores they would be having right now, I think about 50-60 stores would be having organised competition rest of them are all virgin markets. So, from that perspective they have a huge advantage. So, this company is trying to give you an option of buying in a Metro like store at the price of Linking Road. So, the ticket size is pretty low and it is for the mass market. So, that aspiration they are trying to cater through from their stores.""I think there is a huge potential for that kind of a market. Both e-commerce will survive and these kind of stores will survive. So, our view is over a period of time both will survive together but in the near term there will be lot of noise being created but still these kind of companies will continue to do well," he said.