1. School Of Future Studies & Planning
DAVV, Indore
Presentation on
“A Model For Growth of E-retailers in India”
(Research Papers Review)
Submitted to: Submitted By:
Mr. Vandit Hedau Jayant Nannore
Faculty SFSP, DAVV MBA(BF)
2. Introduction
• What is E-Commerce?
In a layman’s language; purchasing products on the Internet is called
ecommerce.
It is an act of having a commercial activity over an electronic medium.
In simple words, Electronic commerce involves buying and selling of goods
and services over the World Wide Web. Customers can purchase anything
right from a car or a cake sitting comfortably in his room and gift it to
someone sitting miles apart just by click of a mouse.
• What is E-retailing?
E-retailing is B2c(business to customers)business model that executes a
transaction between businessman and final customer
Subset of e-commerce
– e-tailers Retailers who sell over the Internet
8. The e-commerce matrix
Business Consumer Government
Business B2B B2G
Supply
B2C Contract bidding,
Cain, Wholesalers Retailers (Goods Privatization
or Services)
Consumer C2B C2C C2G
Public Bidding Public flea markets Public Government
marketplaces, auctions
Auctioneers
Government G2B G2C G2G
Tax and fee Tax and fees Budget allocation
collection collection
9. Business-To-Consumer Business Model
In this form business must
develop attractive
electronic marketplaces to
entice and sell product
and services to consumer
Portal
E-Tailers
Content provider
Transaction broker
Market creator
Service provider
Community provider
13. How the business model of online retailers add
value compared to physical retailers?
Physical Retailers Online Retailer or E-tailer
Advantages Advantages
• Provides face to face • Cost Effective: does not have
to invest in physical
selling, making shopping an infrastructure (store, real
experience. state, sales force) except
• Customers get access to warehouse
better Product information • Provides ease and
Convenience of shopping at
through in-store sales anytime and from any location
representatives. Disadvantages
Disadvantages • Have to invest in Logistics
• Higher Cost of Operation operations
• Highly competitive
• Little customer interaction
16. Delivery network
• Acquire a local player to
make the distribution
system easy.
• Establish a warehouse in
every major city in India like
Mumbai,Delhi,Chennai,Kolk
ata,Hyderabad etc.
• Agent system can play a
vital role to deliver your
product quickly .
17. • Efficient inventory system.
• India is a geographically complicated country
and languages varies from state to state so
you need to employ local people for the
product delivery system.
• Use effective communication device to locate
your product at a particular instances.
• The packaging system should be so strong that
it could protect the product.
18. Challenges with order fulfillments:
Logistics
Problem area: Order Fulfillment is an important part of
ecommerce Value chain. Most ecommerce providers use
a combination of their own logistics teams and also tie-
ups with leading local logistics.
Based on research, the following leading names in
logistics names were revealed:
1. DTDC logistics (part of DHL ,all India presence)
2. Gati (Maharashtra, Karnataka)
3. BlueDart (part of DHL ,all India presence)
4. VRL Logistics (Karnataka)
5. Aramex logistics (Maharashtra, Karnataka)
6. Vichare courier( Maharashtra)
Most of these provide tracking services for customers
and people are willing to pay a premium for proper
delivery.
19. Characteristics of Successful E-Tailing
– High brand recognition
– A guarantee provided by highly reliable or well-known vendors
– Digitized format
– Relatively inexpensive items
– Frequently purchased items
– Commodities with standard specifications
– Well-known packaged items that cannot be opened even in a
traditional store
24. Online shopping behavior among Indians
(based upon survey in 4 metro cities)
• 60% online users in India
visited a retail site in
November 2011.
• The number of active online
shoppers is projected to
reach 38 million by 2015
• 49% online consumer is
young male population
ranging between 21 and 29
years.
• Tier-II & Tier-III online
consumers are aspiration
driven.
million products across 2,000 categories available online.Supply Chain complexity – includes parameters like ease of procurement, storage, handling, transportation, packaging, delivery and installation/demos .n Indian e-tailers are currently operating in quadrants 1 and 4 mainly. Challenge going forwards is to add more and more product categories in these quadrantsn Quadrant 3 is the category most difficult to sell online but is profitablen Quadrant 2 also contains product categories which require robust infrastructure to sell online and some of the categories like grocery, vegetables etc. are also not very profitable
India is the 5th largest destination retail destination in retail globally ( AT Kearney GRDI report 2008)India retailing industry is at 390 bn and growing at 7%Heavy growth is expected post GFC, with single brand retail stores, increased number of malls, growth in Tier 2 and Tier 3 citiesMany of the big retailers have forayed into the on-line mode without much success.On-line retail forms a meager 0.47% of the total retail market. Gift Items, Books, mobile phone accessories, small eletronic goods form the bulk of sales
3,296 cities in India have access to eRetail portals and deliverables.
