Can Srinagar's traditional markets survive the e-commerce boom?

Mohsin Mushtaq

The narrow lanes of Lal Chowk and Goni Khan have, for decades, been synonymous with Srinagar's retail culture. These markets are more than commercial spaces—they are social institutions where trust, bargaining, and personal relationships have shaped the shopping experience across generations.

Today, however, these bustling marketplaces are confronting one of the biggest disruptions in their history: the rapid rise of e-commerce.

As part of a field study conducted by second-semester students of Amar Singh College under the guidance of Dr. Zubair Naseer, Head of the Department of Public Administration, we sought to understand how online shopping is affecting traditional clothing retailers in Srinagar. The study surveyed 400 shopkeepers across the city's major markets.

The findings paint a picture of a sector under considerable pressure, but they also reveal opportunities for adaptation and renewal.

Perhaps the most significant finding was the sharp decline in sales and profit margins.

Most retailers we interviewed estimated that their profit margins had fallen by 45 to 55 percent in recent years. Additionally, 310 of the 400 shopkeepers surveyed reported losing customers to online shopping, highlighting the growing impact of e-commerce on traditional retail.

The reasons are neither surprising nor unique to Kashmir. Consumers today value convenience.

Online platforms offer doorstep delivery, easy return policies, aggressive discounts, and access to an almost limitless range of products.

With a smartphone in hand, customers can compare prices across multiple platforms within seconds—something traditional retailers simply cannot match.

An emerging trend that deserves attention is what many traders described during our interactions: customers frequently visit physical stores to inspect products, seek advice from shopkeepers, and then complete their purchases online after finding lower prices.

For retailers already operating on thin margins, this practice has become an increasingly common source of frustration.

Yet the study also uncovered an important distinction.

The businesses that have been least affected are not necessarily the largest or wealthiest—they are the ones that have adapted.

Retailers using WhatsApp Business, social media platforms, and digital payment systems reported better customer engagement and relatively stable sales.

Their experience demonstrates that technology need not be viewed solely as competition; it can also become a valuable business tool.

At the same time, our research highlights a less-discussed consequence of digitalisation: the growing vulnerability of small traders to cyber fraud.

Nearly 30 to 40 percent of the shopkeepers surveyed reported having encountered cases in which customers presented fake payment screenshots or fabricated transaction confirmations. Several retailers said they had handed over merchandise believing payment had been made, only to discover later that no money had actually been received.

In many cases, the loss resulted not from technological failure but from a lack of awareness about secure digital payment practices.

This finding points to a broader challenge. As small businesses are encouraged to embrace digital transactions, equal emphasis must be placed on building digital literacy and cybersecurity awareness.

Technology without adequate knowledge can expose vulnerable traders to new forms of financial risk.

The future of Srinagar's traditional markets, therefore, does not lie in resisting digital change but in adapting to it.

Small retailers should strengthen their online presence through social media, adopt verified digital payment practices, and explore hybrid business models that combine physical stores with online outreach.

Trade associations can play a meaningful role by organising workshops on digital marketing and cybersecurity, while government agencies should consider providing technical assistance and financial support to help small businesses modernise.

Equally important is recognising the strengths that traditional markets continue to possess. Personalised customer service, trusted relationships, product authenticity, and the tactile experience of shopping remain advantages that online platforms cannot fully replicate.

These qualities should become the foundation upon which local retailers build their competitive edge.

Our study suggests that e-commerce has permanently altered the retail landscape of Srinagar.

The question is no longer whether digital commerce will continue to grow—it undoubtedly will. The more pressing question is whether traditional markets can evolve quickly enough to remain relevant in this changing environment.

The answer, we believe, lies not in choosing between tradition and technology but in finding ways to make them work together. Srinagar's historic markets have adapted to change before. With the right support, greater digital awareness, and a willingness to innovate, they can do so again.

Survey Team:

Adnan Tariq, Sajid Hassan, Hadya Tabassum, Mehreen Altaf, Saniya Javeed, Maliha Latief, Amina Rashid, Sammy Jan, and Ayman