Making Leaders SuccessfulEvery Day
E-Commerce Landscape &Opportunity in IndiaVikram SehgalVice President, Forrester ResearchJanuary, 2013
The Indian Online Population to Grow at     an Impressive 25% CAGR          600                                           ...
Internet Access Channels, Metro India                                                            Home                     ...
The Promise of e-commerce© 2012 Forrester Research, Inc. Reproduction Prohibited   5
New eCommerce Markets Often Follow     A Similar Path© 2012 Forrester Research, Inc. Reproduction Prohibited   6
Countries Are At Different Phases© 2012 Forrester Research, Inc. Reproduction Prohibited   7
Online Retail Spending to grow at 57%     CAGR Billions                       Total online retail spending INR 450        ...
e-Commerce in India is in Early Stage ofDevelopment
Net New online Buyers to drive growth                                                   Growth Drivers – Online Retail    ...
Growth Drivers for E-Commerce                                                                  • Online Tenure            ...
Why do Indian Consumers not buy online                          I feel no need to buy products online                     ...
Indians are no more Price conscious     than other Buyers                                                           % Agre...
The evolution of digital drives complexity& Opportunity…
Internet Retailer Top 20 E-Comm Sites, US                                                 Company              Category   ...
Majority of U.S Retail Spending Influenced bythe Web
Resources Used to Research Before Making  a Purchase                                       % of Indian Online Researchers ...
…and it changed peoples mind                                     % of Indian Online Researchers           No, I didnt chan...
Content on Company Sites considered a trust  worthy source    Recommendation from Friends/Family                  Consumer...
Embrace touch points to maximize ROI         consider          consum          e            become loyal
Thank You                            Vikram Sehgal                 vsehgal@forrester.com© 2012 Forrester Research, Inc. Re...
Slide on Online Research in India                            Qualitative slide on Key points for                          ...
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Landscape of Internet Retail in India By Vikram Sehgal

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Landscape of Internet Retail in India By Vikram Sehgal

  1. 1. Making Leaders SuccessfulEvery Day
  2. 2. E-Commerce Landscape &Opportunity in IndiaVikram SehgalVice President, Forrester ResearchJanuary, 2013
  3. 3. The Indian Online Population to Grow at an Impressive 25% CAGR 600 40% 35% 500 30% 400 25% 300 20% 15% 200 10% 100 5% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 (F) (F) (F) (F) (F) (F) Online Population Online Population % of Total Population Source: FORRESTER RESEARCH WORLD ONLINE POPULATION FORECAST, 2012 TO 2017 (GLOBAL)© 2012 Forrester Research, Inc. Reproduction Prohibited 3
  4. 4. Internet Access Channels, Metro India Home 68% Work 38% Internet cafe 22% Friend or relatives house 5% School 5% Outdoors 2% Library 1% Somewhere else 0%© 2012 Forrester Research, Inc. Reproduction Prohibited 4
  5. 5. The Promise of e-commerce© 2012 Forrester Research, Inc. Reproduction Prohibited 5
  6. 6. New eCommerce Markets Often Follow A Similar Path© 2012 Forrester Research, Inc. Reproduction Prohibited 6
  7. 7. Countries Are At Different Phases© 2012 Forrester Research, Inc. Reproduction Prohibited 7
  8. 8. Online Retail Spending to grow at 57% CAGR Billions Total online retail spending INR 450 INR 411 INR 400 Computers & INR 350 Electronics INR 282 Beauty & INR 300 Cosmetics INR 250 Media INR 186 INR 200 Apparel & INR 150 INR 118 Footwear Appliances INR 100 INR 75 INR 42 Other INR 50 INR 26 INR 0 2010 2011 2012 2013 2014 2015 2016 (F) (F) (F) (F) (F) (F) Online Retail Does not include Travel, Prescription Drugs Source: FORRESTER RESEARCH ONLINE RETAIL FORECAST, 2011 TO 2016 (APAC)© 2012 Forrester Research, Inc. Reproduction Prohibited 8
  9. 9. e-Commerce in India is in Early Stage ofDevelopment
  10. 10. Net New online Buyers to drive growth Growth Drivers – Online Retail 60% 50% 40% 30% 20% 10% 0% 2011 2012 (F) 2013 (F) 2014 (F) 2015 (F) 2016 (F) Y-O-Y Growth - Online Buyers Y-O-Y Growth - Online Spending/Buyer Source: FORRESTER RESEARCH ONLINE RETAIL FORECAST, 2011 TO 2016 (APAC)© 2012 Forrester Research, Inc. Reproduction Prohibited 10
  11. 11. Growth Drivers for E-Commerce • Online Tenure • Household Income • Quality of Net Access • Logistical Challenges • Merchant Capitalization • Merchant Push • Payment Options© 2012 Forrester Research, Inc. Reproduction Prohibited 11
  12. 12. Why do Indian Consumers not buy online I feel no need to buy products online Its too complicated Products will not be delivered in good condition Delivery costs are too high Think products will not be delivered at all Dont want to give personal financial information I prefer to research online & then buy in store Dont want to wait for products to be delivered I want to see and touch before I buy Ive heard about bad experiences with others I dont have a credit or debit card I dont want to register in order to make a purchase I dont have convenient Internet access I didnt know that you could buy products online 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: Asia Pacific Technographics Online Benchmark Survey, Q3 2012 (Australia, China, Hong Kong, India, Japan, South Korea)© 2012 Forrester Research, Inc. Reproduction Prohibited 12
  13. 13. Indians are no more Price conscious than other Buyers % Agree with Statement 80% 70% 60% 50% 40% 30% 20% 10% 0% I like to shop Price is more I would pay more around before important to me for products making a than brand names consistent with an purchase image I like India China South korea Hong Kong Japan Australia© 2012 Forrester Research, Inc. Reproduction Prohibited 13
  14. 14. The evolution of digital drives complexity& Opportunity…
  15. 15. Internet Retailer Top 20 E-Comm Sites, US Company Category Online Sales 2011 1 Amazon.com Inc. Mass Merchant $48,080,000,000 2 Staples Inc. Office Supplies $10,600,000,000 3 Apple Inc. Computers / Electronics $6,660,000,000 4 Walmart.com Mass Merchant $4,900,000,000 5 Dell Inc. Computers / Electronics $4,609,728,000 6 Office Depot Inc. Office Supplies $4,100,000,000 7 Liberty Interactive Corp. Mass Merchant $3,760,000,000 8 Sears Holdings Corp. Mass Merchant $3,604,288,201 9 Netflix Inc. Music / Videos $3,204,577,000 10 CDW Corp. Computers / Electronics $3,000,100,000 11 Best Buy Co. Computers / Electronics $2,950,000,000 12 OfficeMax Inc. Office Supplies $2,901,497,618 13 Newegg Inc. Computers / Electronics $2,700,000,000 14 Macys Inc. Mass Merchant $2,246,375,040 15 W.W. Grainger Inc. Home Improvement $2,187,000,000 16 Sony Electronics Inc. Computers / Electronics $1,980,000,000 17 Costco Wholesale Corp. Mass Merchant $1,900,000,000 18 L.L. Bean Inc. Apparel / Accessories $1,716,502,219 19 Victorias Secret Direct & Bath and Body Works Apparel / Accessories $1,630,000,000 20 J.C. Penney Co. Inc. Mass Merchant $1,590,000,000 http://www.internetretailer.com/top500/list/© 2012 Forrester Research, Inc. Reproduction Prohibited 15
  16. 16. Majority of U.S Retail Spending Influenced bythe Web
  17. 17. Resources Used to Research Before Making a Purchase % of Indian Online Researchers In-Store Friends & Family TV Newspaper Magazine Outdoor Advertising Online Compared to the US only 9% of Population Is Online in India Radio 0% 20% 40% 60% 80% 100%Source: Asia Pacific Technographics Online Benchmark Survey, Q3 2012 (Australia, China, Hong Kong, India, Japan,South Korea)
  18. 18. …and it changed peoples mind % of Indian Online Researchers No, I didnt change my mind I didnt have a brand in mind Yes, I changed my mind Dont remember 0% 10% 20% 30% 40% 50% 60%Source: Asia Pacific Technographics Online Benchmark Survey, Q3 2012 (Australia, China, Hong Kong, India, Japan,South Korea)
  19. 19. Content on Company Sites considered a trust worthy source Recommendation from Friends/Family Consumer Written Reviews Prefessionally Written Reviews Information on Company Website Newspaper Ads TV Ads Ads on Websites Text Msg From Company/Brands Ads on Radio 0% 20% 40% 60% 80% 100% Do not trust Middle TrustSource: Asia Pacific Technographics Online Benchmark Survey, Q3 2012 (Australia, China, Hong Kong, India, Japan,South Korea)
  20. 20. Embrace touch points to maximize ROI consider consum e become loyal
  21. 21. Thank You Vikram Sehgal vsehgal@forrester.com© 2012 Forrester Research, Inc. Reproduction Prohibited 21
  22. 22. Slide on Online Research in India Qualitative slide on Key points for Retailers to think about – Does Online Cannibalize Offline?© 2012 Forrester Research, Inc. Reproduction Prohibited 22

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