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E tailingindia webinar-ecommerce-opportunities

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  • 1. Ashish Jhalani Founder & CEO – eTailing India eCommerce Opportunity Domestic & Global
  • 2. Webinar Structure 1.Introduction to eCommerce 2.Building Blocks of eCommerce 3.Domestic Trends & Opportunities 4.Global Opportunities 5.Q & A
  • 3. What is eCommerce ??
  • 4. What is eCommerce ?? • Common Definition - eCommerce (or electronic commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet.
  • 5. What is eCommerce ?? Perception Reality eCommerce is only when people buy goods online eCommerce exists in many forms, such as eTailing, M-commerce, T-Commerce, S-Commerce etc. eCommerce only happens when you buy online When you look for the best price for a good online, it constitutes eCommerce. In fact Search and Ads are two of the biggest components of eCommerce eCommerce is a recent phenomenon eCommerce has been around for over three decades in various forms such as online ordering, electronic catalogues, automated data management systems, payment gateway solutions etc.
  • 6. Forms of eCommerce eTailing Buying and selling goods online thru online sites, marketplaces etc. M-Commerce Buying or selling of goods through a mobile device using online payment mechanisms S-Commerce Social Commerce using various aids such as shopping tools, social networks etc. T-Commerce The most recent form of eCommerce and refers to buying goods & services using a TV
  • 7. Evolution of Modern Retail Ancient Retail • Based on Barter • Introduction of Money simplified buying process • Trade limited to physical touch & accessibility Intermediate Retail • System based on large companies & retail stores • Electronic Payments simplifies buying further Modern Retail • eCommerce in multiple forms and formats • Omni-Channel retail takes over with multiple options across the entire spectrum of services
  • 8. Modern eCommerce - Formats B2C Largest form of eCommerce across the world Dominated by Large Global Companies such as Amazon B2B Mostly Regional with some Global players Dominated by Companies such as Alibaba.Com C2C Earliest form of commerce itself, starting with barter Dominated by Large Players such as eBay G2_ Transactions with the Government Tenders, Tax Filing, Business Registrations, et c., Marketplaces – Common across all 3 formats
  • 9. Building Blocks of eCommerce • Business Case • Viable & Addresses A Real Need • Technology • Platforms • Custom Developed
  • 10. Building Blocks of eCommerce • Payment Options • Content • Product Merchandising & Product Details • Images & Attributes • Marketing • Search Engine Optimization • Search Engine Paid & Social Media Marketing • Email Marketing • Affiliate Marketing
  • 11. Building Blocks of eCommerce • Supply Chain & Distribution Channels • Customer Relationship Management • Customer Service • Customer Loyalty / Rewards • Customer Feedback
  • 12. Interesting Facts – eCommerce in India • Approx $1 Billion – Size of Market in India (excluding Travel) • Approx $6 Billion – Size of India’s Online Travel Market • 51% Of All Online Attributed to Tier 2 & 3 Towns • India’s Second Largest Online Population in APAC China, 55.2% China, 54.0% India, 9.3% India, 11.5% Japan, 12.2% Japan, 11.4% Southeast Asia, 9.4% Southeast Asia, 9.6% Rest of APAC, 13.9% Rest of APAC, 13.5% Mar-12 Mar-13 ShareofAsiaPacificOnlinePopulation
  • 13. Interesting Facts – eCommerce in India • India 3rd Largest Internet Population – China 1st & US 2nd • India’s Online Population Youngest in BRIC (39% between 25 & 34) • eCommerce Underdeveloped Compared vs. BRIC Peers • Significant Opportunity • Largest Retail Subcategories – Apparel, Computer Software, Electronics • Many Categories Still Un-Served
  • 14. Advantages – eCommerce in India • Conduct Business 24 x 7 x 365 • Access to Global Marketplace & Global Customers • Reduce Cost – Real Estate, Cutting Intermediaries • Speed to Market • Increase Brand Awareness • Greater Customer Insights • Limitless Real Estate for Product Selection
  • 15. India – Challenges & Future Challenges Reality Future Internet Connectivity Internet Connectivity limited and dependent on fixed lines or optic fibres Wireless internet along with more and more reliance on mobiles to access internet would change the face on online shopping. More Indians own a mobile than a laptop or internet connection Limited Payment Options Less than 0.1% of country’s total population and less than 3% of online shoppers own credit or debit cards M-Commerce, M-Wallet and Cross-Channel payments to release the true potential or eCommerce in the country leapfrogging the need to hold a credit card at all Touch & Feel Touch & Feel act as a major influencer in buying decisions Augmented Reality to change the way shopper buy and make decisions
  • 16. Unlimited Options to Start • Global Marketplaces in India - eBay, Amazon • Domestic Marketplaces – Flipkart, Snapdeal, Jabong, ShopClues, Infibeam, Yebhi, Pepperfry, and many more • Business to Business Marketplaces – TradeIndia, IndiaMart, Alibaba, etc., • Self Operated & Managed Web Store – Platform or Custom Developed
  • 17. Global Opportunities - USA • 15.8% Growth rate in 2012 U.S. e-commerce sales • 27.1% Amazon’s 2012 growth rate
  • 18. Global Opportunities - USA • According to report published by Cushman & Wakefield, in 2012 global retail sales edged up 1% while online sales grew 14.8%. According to another report published by Morgan Stanley in January 2013, 6.5% of all retail sales can be contributed to the online channels.
  • 19. Global Opportunities - EUROPE
  • 20. Questions & Answers Q: We are launching a new product. Its an Electronic Pest Repellent. We would like to promote our product via the eCommerce route. What is best category to place such a product in? Which sites have the maximum sales volumes for such products? Q: How many ecommerce players in India can be called successful? Q: What seems to be more successful in India between retailer and marketplace model and why? Q: Re vertical players like babyoye /urban ladder more successful than horizontal players- snapdeal Q: what is relevance of standardization on product identification and classification by the online retail? Q: how can we improve productivity using e commerce Q: Use of eCommerce in International Logistics business? Q: How is a budget decided for starting an SMO strategy for an SME? How do we find that a particular industry is ready for dig mktg? Q: Learnings and insights for B2B enterprises in e commerce Q: Better Payment gateways and alternatives
  • 21. Ashish Jhalani Founder & CEO – eTailing India ashish@etailingindia.com THANK YOU