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Emergence and Current scenerio of e-commerce

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This presentation contains various aspects as well as the emergence of e-commerce. It will give you a brief about the current scenarios and future trends of e-commerce.

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Emergence and Current scenerio of e-commerce

  1. 1. Presented By: Sourya Sangan – 401 Priya Singh - 420 Shruti Singh – 412 Sonali Bhalla – 402 Shivam Chutani – 383 Shailesh Kumar - 380 10/16/2016 1 E-CommerceGroup-7
  2. 2. CONTENTS  Emergence of E-Commerce Industry in India  Key drivers of the E-Commerce Industry  Scope of the E-Commerce Industry  Challenges of E-Commerce Industry  Growth of E-Commerce Industry  Major Competitors  4 P’s of E-Commerce  Porter 5 Forces Model  Present Scenario/ Current Trends  Factors affecting future of E-Commerce in India  Roadmap  Future of E-Commerce  Conclusion 2 E-CommerceGroup-710/16/2016
  3. 3. EMERGENCE OF E-COMMERCE INDUSTRY IN INDIA Shopping is one of the most popular activity on the web E- commerce evolved in the year 1991 Internet usage & cell phones have changed the way we communicate E-commerce is an innovative concept 35% is the CAGR of e-commerce industry Expected CAGR is 10% 3 E-CommerceGroup-710/16/2016
  4. 4. KEY DRIVERS OF THE E-COMMERCE INDUSTRY  Large percentage of Internet subscribers  Explosive amount of smart phone users  Rising standards of living  Time and mobility  Availability of much wider product range 4 E-CommerceGroup-710/16/2016
  5. 5. SCOPE OF THE E- COMMERCE INDUSTRY  Changing the game  Delivering experiences  Growing the customer base  Growing opportunities  50-55% revenue generated from Tier 1& 2 cities  Availability of innovative products 5 E-CommerceGroup-710/16/2016
  6. 6. CHALLENGES OF E-COMMERCE INDUSTRY  E- infrastructural issues  Branding & marketing  Logistics and supply chain management  Declining margins  Tax related issues & declining margins 6 E-CommerceGroup-710/16/2016
  7. 7. GROWTH OF E-COMMERCE INDUSTRY  Indian commerce has a total worth of Rs.171563 crore and is expected to hit Rs 2,11,005 crore by the end of 2020  E-commerce industry has a worth of Rs.125732 by volume  Online retail has grown by 61% since December 2014 to 2016 march 0 50000 100000 150000 200000 2012 2013 2014 2015 2016 Amount(incrores) Years B2B C2C 7 E-CommerceGroup-710/16/2016
  8. 8. MAJOR COMPETITORS FLIPKART  Flipkart is an Indian E-commerce company  Founder- Sachin Bansal and Binny Bansal  Market share is 36% by volume  Supplier preference is low  Customer preference is high  Niche Product- none AMAZON  Amazon is an American E-commerce giant  Founder-Jeff Bezos  Market share is 16% by volume  Supplier preference is high  Customer preference is low  Niche product- Amazon Kindle 8 E-CommerceGroup-710/16/2016
  9. 9. FLIPKART  GMV rate is high  Time spend at per visit by a customer is 10 mins  Flipkart’s primary focus is quality  Latest Acquisitions- Jabong , Myntra AMAZON  GMV rate is low  Time spent at per visit by a customer is 8 mins  Amazon’s primary focus is customer focused information services  Latest Acquisitions- Ivona software lmt. FLIPKART VS AMAZON 9 E-CommerceGroup-710/16/2016
  10. 10. 4 P’S OF E-COMMERCE 4 P’s of E- commerce Product Price Place Promotion 10 E-CommerceGroup-710/16/2016
  11. 11. PRODUCT A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. 11 E-CommerceGroup-710/16/2016
  12. 12. PRICE Base of fixing the price • Cost plus pricing • Target return pricing • Value based pricing • Competitive pricing 12 E-CommerceGroup-710/16/2016
  13. 13. PLACE • Distribution channel • Indian postal service • E- carter 13 E-CommerceGroup-710/16/2016
  14. 14. PROMOTION • Sales promotion • Outdoor hoardings • Cut-outs • Digital marketing 14 E-CommerceGroup-710/16/2016
  15. 15. 10/16/2016 15 E-CommerceGroup-7
  16. 16. PORTER’S 5 FORCES MODEL 1. Threats of New Entrants  Low barriers to entry  Access to Distribution Channels  Low Capital Investments 2. Bargaining Power of Buyers  Buyers Price Sensitivity  Buyer Prefers Inexpensive and better products  Product Differentiation 10/16/2016 16 E-CommerceGroup-7
  17. 17. 3. Competitive Rivalry  Number of Competitors  Brand equity  Level of advertising expenditure 4.Bargaining Power of Suppliers  Different Suppliers Offering Identical products  Multiple Selling Platforms provides high bargaining power. 10/16/2016 17 E-CommerceGroup-7
  18. 18. 5. Threats Of Substitutes  Buyer propensity to substitute  Relative price performance of substitutes  Buyer Switching cost 10/16/2016 18 E-CommerceGroup-7
  19. 19. PRESENT SCENARIO/ CURRENT TRENDS 19 E-CommerceGroup-710/16/2016
  20. 20. Flipkart acquired Letsbuy for $25 Million Ibibo acquired RedBus for Rs. 650 Crores Flipkart acquired Myntra for $370 Million Ola acquired Taxi for Sure for $200 Million Snapdeal acquired Freecharge for $400 Million Myntra acquired Jabong for $70 Million NOTABLE ACQUISITIONS Feb 2012 June 2013 May 2014 March 2015 April 2015 July 2016 10/16/2016 20 E-CommerceGroup-7
  21. 21. TRENDS  Time for stronger Mergers and Acquisitions  Living on Valuations  Vertical specific E-tailers on the rise  Retailers are going online  The rural foray 21 E-CommerceGroup-710/16/2016
  22. 22.  Men in India shop 3 times more than women  Cash on Delivery remains the most preferred online payment method  60% of online purchases happen during business hours (9am – 5pm)  The Smartphone Saga TRENDS (CONTD.) 22 E-CommerceGroup-710/16/2016
  23. 23. FACTORS AFFECTING FUTURE OF E-COMMERCE IN INDIA  Indians are getting richer  We are consumers and not producers  Slow growth of offline retail infrastructure  Smartphone and Internet penetration 23 E-CommerceGroup-710/16/2016
  24. 24. ROADMAP  Internet penetration  Logistics  Vehicle Tracking  Significance of Tier II and tier III 24 E-CommerceGroup-710/16/2016
  25. 25. INTERNET IN 2020  Number of users  Rural areas  Local language  Online shoppers  Transactions  Travel transactions LOGISTICS  ‘Snapdeal Instant’  Amazon fulfilment centres  Flipkart pickup centres  Paytm’s 2 hour delivery 25 E-CommerceGroup-710/16/2016
  26. 26. VEHICLE TRACKING o Paytm’s ‘Loginext’  Flipkart’s ‘blackbuck’ TIER II AND TIER III  3G and 4G smartphones  North East region  ‘MapMyIndia’  NGO involvement 26 E-CommerceGroup-710/16/2016
  27. 27. FUTURE OF ECOMMERCE  Social Media  Drone Delivery  App only approach  Google’s ‘Buy Now’ button  Artificial Intelligence 27 E-CommerceGroup-710/16/2016
  28. 28. 10/16/2016 28 E-CommerceGroup-7
  29. 29. THANK YOU THANK YOU

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