E-commerce has grown significantly in India in recent years. The industry was valued at $16 billion in 2013 and is projected to reach $43 billion within 5 years. Major players in India include Flipkart, Snapdeal, Amazon, and others. These companies are investing heavily in infrastructure like warehouses and logistics to support further growth. Hiring is also expected to increase substantially as the industry expands rapidly.
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
E commerce
1. P r e s e n t e d b y :
S o n a k s h i N a r a n g
2. Contents
³ What Is E- Commerce?
³ Timeline of E-Commerce in :
» World
» India
» Leaders / Major Players of the industry
» Net worth of the industry
³ Current Scenario
» News, Innovations & Trends
³ Future of the Industry
3. What is E-Commerce?
E-commerce- Electronic commerce
It caters to trading in goods and services through the electronic medium such as
internet, mobile or any other computer network.
It involves the use of Information and Communication Technology and
Electronic Funds Transfer in making commerce between B2C, C2B, B2B or
C2C, G2C, G2B, C2G, B2G and G2G.
With the growing use of internet worldwide, Electronic Data Interchange has
also increased
E-commerce is now know as virtual internet bazaar inside the digital world
which is righty termed as e-malls.
4. Evolution Of E-Commerce:
• Globally:
1979: Michael Aldrich demonstrates - the first online shopping system.
1981: Thomson Holidays UK -first business-to-business online shopping system.
1982: Minitel was introduced nationwide in France by France Télécom and used for online ordering.
1983: California State Assembly holds first hearing on "electronic commerce" in Volcano, California.
5. 1984: Gateshead SIS/Tesco is first B2C online shopping system and Mrs Snowball is the first
online home shopper.
1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the
first comprehensive electronic commerce service.
1985: Nissan UK sells cars and finance with credit checking to customers online from dealers'
lots.
1984: California becomes first US state to enact an Electronic Commerce Act defining basic
consumer rights online.
1990: Tim Berners-Lee writes the first web browser, Worldwide Web, using a NeXT computer.
1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com)
selling books online with credit card processing.
6. 1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's: Future Shop: How New
Technologies Will Change the Way We Shop and What We Buy.
1992: Terry Brownell launches a fully graphical, iconic navigated Bulletin board system online
shopping using RoboBOARD/FX.
1993: Paget Press releases edition No. 3 of the first AppStore, The Electronic AppWrapper.
1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape
1.0 is introduced in late 1994 with SSL encryption that made transactions secure.
1994: Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to
offer flower delivery and magazine subscriptions online. Adult materials also become
commercially available, as do cars and bikes.
7. 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase.
1995: The US National Science Foundation lifts its former strict prohibition of commercial
enterprise on the Internet.
1995: CompuServe's UK Shopping Centre is the UK's first national online shopping service
secure transaction. The shopping service at launch featured W H Smith, Tesco, Virgin
Megastores/Our Price, Great Universal Stores (GUS), Interflora, Dixons Retail, Past Times, PC
World (retailer) and Innovations.
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio
stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use
Internet for commercial transactions. eBay is founded by computer programmer- Pierre
Omidyar as AuctionWeb.
1996: IndiaMART B2B marketplace established in India.
8. 1996: ECPlaza B2B marketplace established in Korea.
1996: Sellerdeck, formerly Actinic, the UK's first PC/LAN e-commerce platform established.
1997: Dell first company to reach @1Mn in online sales.
1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to
eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing
software Napster launches. ATG Stores launches to sell decorative items for the home online.
2000: The dot-com bust.
9. 2001: Alibaba.com achieved profitability in December 2001.
2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are
founded with the concept of selling products through several targeted domains, rather than a
central portal.
2003: Amazon.com posts first yearly profit. Face book launched for college students.
2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b
sites to move away from the "yellow pages" model.
2007: Business.com acquired by R.H. Donnelley for $345 million.
10. 2009: Zappos.com acquired by Amazon.com for $928 million. Retail Convergence, operator of
private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170
million in earn-out payments based on performance through 2012.
2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying
websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.
2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500 million in
cash plus $45 million in debt and other obligations. GSI Commerce, a company specializing in
creating, developing and running online shopping sites for brick and mortar businesses, acquired
by eBay for $2.4 billion.
11. 2012: US eCommerce and Online Retail sales projected to reach $226 billion, an increase of 12
percent over 2011.
2012: US eCommerce and Online Retail holiday sales reach $33.8 billion, up 13 percent.
2014: Overstock.com processes over $1 million in Bitcoin sales. India’s e-commerce industry is
estimated to have grown more than 30% from a year earlier to $12.6 billion in 2013.
2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are
founded with the concept of selling products through several targeted domains, rather than a
central portal.
2003: Amazon.com posts first yearly profit.
12. Evolution in India
• E-commerce has evolved in India in the late 1990s.
• The opportunities that were evidenced through the internet were taken positively by
the business community.
• The dot.com burst created doubts of the survival of this trend but recent
developments are not only showing that e-commerce is alive but also in ready for a
comeback in big way.
• A report by the Internet and Mobile Association of India has revealed that India's E-commerce
market is growing at an average rate of 70 percent annually and has grown
over 500 percent since 2007.
13. E- Commerce in India
• The estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the year
2007 at $1.75 billion. The following chart depicts the growth of E-commerce in India in
the last couple of years:
14. • Overall e-commerce industry is poised to experience a high growth in the next couple of
years.
• The 70 percent year on year growth is expected to continue and India’s e-commerce market is
forecast to reach a whopping $US 10 billion by the end of 2011.
• The e-commerce market in India was largely dominated by the online travel industry with
80% market share while electronic retail (E-Tailing) held second spot with 6.48% market
share.
• PwC Source
16. Total Net Worth of the Industry
• India’s apex Knowledge Chamber, suggests the growth of e-commerce
industry in India in 2013 stood at USD 16 billion, registering a growth of over
88 percent from USD 8.5 billion registered in 2012.
• India's e-commerce industry is where the US was in 2003 and China was in
2007.
• NEWS ARTICLES SOURCE
17. Current Scenario
• eCommerce industry is valued at $ 16 Bn as on 2013.
• It has a staggering growth rate of 88% in 2013.
• Every 3 out of 5 internet users in India shop online.
• India has a young eCommerce audience with 90% in the age group of 18-35
years.
• Mobile internet users in India to reach 185 million by June 2014
• 50% of all active Internet users access it.
18. Current Scenario
– Amazon Investing in Drone to deliver the product.
– Flipkart raising funds to improve infrastructure.
– Flipkart acquires myntra @330 million USD which is higher than @200
million USD that was evaluated in Jan 2014.
– Jabong planning to drop delivery of the products at famous public places.
19. NEWS
• Indian e-commerce companies to invest up to $1.9 billion on infrastructure by 2020:
– the e-commerce market, expected to reach $20 billion by 2020,
– companies investing close to $2 billion in logistics, infrastructure and warehousing in the next
six years..
– According consultancy firm PwC and industry body ASSOCHAM,
• Indian e-commerce industry will spend $950-1,900 million by 2017-2020 on
infrastructure, logistics and warehousing.
• Amount spend on warehousing and sortation centers could be as high as 3-6 per cent of
top-line revenues, which represents an cumulative spend of over $450-900 million of
spend in warehousing till 2017-2020,"
20. NEWS
– According consultancy firm PwC and industry body ASSOCHAM
—The industry is expected to spend an additional $500- 1,000 million during the same
period on logistics functions, leading to a cumulative spend of $950-1,900 million till
2017-2020, it added.
— 'Evolution of e-Commerce in India', estimates that over the next three to four years,
there will be an addition of 7.5-15 million square feet of space in the form of
fulfillment centers.
—This indicates - addition of 6-12% to the space available in form of organized
warehousing in India and almost 25-50% of all the incremental addition of
consumption driven warehousing space in the same period.
21. NEWS
• Aditya Birla Group to soon launch project to back e-commerce industry:
– India's fledgling e-commerce industry may get a new backer in billionaire Kumar
Mangalam Birla.
– The $40-billion Aditya Birla Group will soon launch a project to identify opportunities in
e-commerce as rising disposable incomes, rapid adoption of smartphones and a large
population of young consumers has given rise to enormous potential for online business.
– McKinsey said India was on the brink of an Internet boom and it is estimated will have
between 330 million and 370 million people going online by 2015.
22. NEWS
– India's e-commerce market was worth $13 billion in 2013, with online travel booking
accounting for more than 70% of consumer transactions.
– Online sales of retail goods amounted to $1.6 billion in the past year, according to
research and advisory firm Forrester, and some industry experts expect this market to
explode to $76 billion by 2021.
23. NEWS
• E-commerce hiring to grow 30 per cent on Amazon, local players' push:
– As foreign and domestic e-retail majors such as Amazon and Flipkart expand
their businesses aggressively, hiring activities are expected to grow by over 30
per cent in the sector and may help create up to 50,000 jobs in the next 2-3 years.
– According to leading human resources consultancy Randstad India, the hiring in
this space is likely to rise by 20-30 per cent in next few years on the back of
entry of domestic online start-ups and e-commerce MNCs into Indian
marketplace, as also because of setting up of back-office operations for various
global businesses.
24. NEWS
– As per findings of Jigsaw Academy, the e-commerce industry may create 15,000-50,000
jobs in the next three years for data analysts professionals alone.
– "The companies are hiring aggressively and are also offering lucrative salaries to attract
the right analytics talent," Jigsaw Academy CEO Gaurav Vohra said.
– According to global major Amazon, which is seen as one of the major competitors for
the domestic e-commerce player, "the industry is growing rapidly and there is still a huge
potential for growth".
– "Likewise, we have grown exponentially over the last 11 months and will continue to see
growth. Our hiring will continue to match this pace and grow accordingly," Amazon
says.
25. NEWS
• India's ecommerce poised at $43 bn in 5 years: Meet the key growth leaders:
– Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five
years, according to Nomura's India Internet Report last month. There are 11 categories, and
within them 42 players, that are poised to shape this blazing path.
– MarketPalce – Star Players Flipkart
– Travel- Star Player: MakeMyTrip
– Fashion-Star Player: Myntra&Flipkart
– Furniture-Star Player: Urban Ladder
– Grocery- Star Player: Big Basket
27. NEWS
• Flipkart-Amazon battle: What it means for you:
– Deep discounts for customers and big incentives for merchants who sell on their
marketplace is what Flipkart, India's largest online retailer, is planning as it aims for
fourfold growth in sales over the next twelve months.
– In the aftermath of the biggest round of fund-raising in India's internet industry, Flipkart
and challenger Amazon plan to open more warehouses, hire in larger numbers and
acquire companies with newer products or technology as they battle for supremacy in
one of the fastest growing markets for online commerce globally.
28. NEWS
– "It is still day-one of Indian ecommerce," said Amit Aggarwal, vice president and India
country head at Amazon.
– Amazon founder Jeff Bezos said he will spend $2 billion (Rs 12,000 crore) to build
operations in India without offering a timeframe.
– This month, Amazon will add a new category and also increase the range of books and
electronics — its two main product lines in India — as it powers ahead to reach sales of
Rs 6,000 crore this fiscal.
– In the past year, 8,500 sellers have hawked their wares on Amazon's marketplace.
– Flipkart, which adopted a marketplace model last year, aims to increase the number of
sellers to 50,000 in the next year from the current level of over 4,000.
29.
30. NEWS
• What Flipkart, Snapdeal are doing to attract more customers:
– With price being the most potent weapon in their arsenal, online retailers looking to snare
more customers are cajoling sellers to offer steep discounts and reimbursing those who do so.
– The country's largest online marketplaces like Amazon.in, Flipkart and Snapdeal are adopting
several models to ensure that merchants on their portal offer discounted prices.
– Their unbridled aggression is drawing the ire of smaller peers as well as traditional retailers
who are struggling to keep pace.
– "P&G gives a margin of 13% for a pack of Pampers diapers. But Amazon was selling it at a
discount of 28%," said the founder of an online site that sells babycare products among other
categories.
31. NEWS
• Telecom industry to benefit from e-commerce boom: survey
– Indian e-commerce companies -able to drive the next phase of growth for the telecom
companies wherein they would be able to generate additional revenue of Rs. 48,000 crore and
EBIDTA of Rs. 17,400 crore over the next three years.
– A joint study conducted by Google India and A T Kearney - over 155 million mobile Internet
users at present,
– India -see a major mobile explosion as the Internet user base, more than double to 480 million
by 2017.
– Estimated for next three years, smartphone penetration will grow six times to touch 385
million people and the number of users who transact online will grow to 160 million.
32.
33. INNOVATION
• Here is Flipkart’s next big innovation for Indian e-commerce:
– Flipkart recently launched Flipkart First, -subscription service for its customers.
– The subscription policies are simple enough – you pay INR 500/- per annum and in return,
receive free shipping of orders, ensure in-a-day guaranteed delivery, get 50% off on same day
delivery (INR 70/-) and get priority customer care.
– Flipkart Wallet- allows you to simply transfer money from bank to your online Flipkart account
and then forget about making payments repeatedly by entering card details and all that until you
have balance in your wallet.
– PayZippy- Flipkart’s very own payment gateway service. Managed by Flipkart Payment
Gateway Services Pvt. Ltd, the service places itself as the better choice of payment gateway for
e commerce portal with competitive pricing.
34. INNOVATION
• Amazon Cart comes to India: Add items to your shopping cart via Twitter:
– Amazon’s India marketplace has announced the launch of Amazon Cart for the Indian market.
– Buyers in India can now add products they discover on Twitter to their Amazon.in shopping carts
without leaving Twitter.
– It’s a simple mechanism where customers who have connected their Amazon and Twitter
accounts can add items to their carts just by tweeting the link of an Amazon.in product along with
the #AmazonCart hashtag.
– In effect, when a customer discovers a tweet from their favorite artist, expert, brand, or friend
with an Amazon.in product link, they’ll need to simply add “#AmazonCart” to their reply on
Twitter and the product is added to their Amazon.in shopping cart.
35. Top Five Trends that will Drive
India’s E-Commerce in 2014
• Quality content will gain ground
– Ecommerce websites need to be more optimized for search engines in order to deliver
quality and best user experience.
– There will be more focus on content to help consumers that will forge a long-term
relationship with them and eventually will increase profit margin.
• Companies will offer same day shipping
– In order to increase their credibility, more and more e-commerce companies in 2014 will
be delivering the customer orders on the same day.
– It will strengthen their relationship with the customers.
36. Trends
• Companies will provide real shopping assistance
– Making a purchase online seem a difficult task for many customers as not all of them are tech
savvy.
– Now the companies will be providing suggestions and assistance to the customers to help
them make the purchase easily, by setting up a 24-hour assistance over the phone or on the
website.
• Companies will provide complete device support
– With the increase in number of people accessing internet on their mobile phone, it is
becoming very important for companies to provide mobile compatible services to them so
that they could check out or buy products directly through their mobile phones.
37. Trends
• The big data will be utilized more
– Data will play a big role
– More and more companies will be using the big data services to create personalized
offers, an in-depth analysis of the collected data will help them make future decisions.
38. Future of the Industry
• It Depends upon:
• Internet Penetration:
– The recent IAMAI (Internet and mobile association of India) data states
– India has Internet User population of 190 million as of June 2013 with a yearly growth of
28%.India now has the 3rd largest Internet population with 190 million in the world after
China at 568 million and USA at 254 million (in 2013).
– The number of internet users in India is expected to rise 18.53% in the coming months to
243 million by June 2014. Considering the annual rate of growth 41-43% India is
expected to cross 375 million unique internet users by end of 2015.
39. – M-Commerce:
– It is pretty possible for m-Commerce to become even bigger than e-Commerce in future
days especially in a country where there are over 930 Mn mobile subscribers against 160
Mn Internet users (Including 86 Mn mobile Internet users).
– Top reasons -Availability of Cheap smart phones and tablets, Mobile Internet
connectivity; introduction of 3G/4G with relatively cheap tariffs, Mobile Payments,
Personalization; More secured payment gateways like SSL(Secured socket layer) etc.
– FDI in E-Commerce sector:
– Presently the Indian Government has allowed 100 per cent FDI in B2B e-commerce,
while business-to-consumer (B2C) is prohibited. In addition to that there’s a compulsory
30 percent local sourcing norms for foreign players.
40. – Innovative e-commerce models:
– Group buying and second-hand sales have led to more and more consumers
switch to online shopping.
– With the rising middle class disposable incomes, global exposure and shifting
demographics (Close to half of the population is less than 25 years of age), this
pattern also holds true for the Tier II & III cities.
– Market leaders have already adopted new business models like Try and buy,
stock-and-sell, consignment and group buying.
41. – Logistics:
– Play a major role in overall growth of e-commerce.
– Accounts for customer satisfaction and Brand loyalty.
– The current market players has already solved the initial distribution and
delivery hiccups with modern concepts like Localization, Product availability
check, Delivery tracking through SMS and mails, more sophisticated currier
services and 24*7 customer care etc.
– Considering the fact that Indian logistics and supply chain market is not yet well
organized & almost 40% of E-Commerce companies have their own branded
delivery network which will be more efficient in coming days.
42. Future of the Industry
• - India will have World’s 2nd largest user base in June 2014 with 243 Million users
surpassing U.S.
• - 2015, India is expected to cross 375 million unique internet users.
• -Size of the e-retail industry is poised to be $10-20 billion by 2017-2020.
• - eCommerce to contribute around 4% to GDP in India by 2020
• -eCommerce industry- reach $70 billion by 2020
• - The sector will generate 1.5 Million jobs by 2020
• - eCommerce is pegged to be worth $56 Billion by 2023
• - And will control 6.5% of the total retail market by 2023
43. Future Scenario
• PwC Director (operations) Saurabh Srivastava said:
– "The potential of sector and the likely liberalization in form of FDI could be a vital
factor in attracting significant investments resulting in better infrastructure and robust
supply chains."
– The growth of e-commerce industry has a huge potential in the country translating into
huge gains for the manufacturing industry, infrastructure and jobs, he added.
44. Future Scenario
– The future of eCommerce in India appears to be a promising one due to the
increasing number of people who are embracing modern technology.
– In order to attract more consumers, large brands have decided to offer deals and
discounts on occasional basis.
– A number of eCommerce sites like Snapdeal, Flipkart and Makemytrip have also
started creating discounted rates to customer.
– Through these offers, the future of eCommerce in India is predicted to boom in
the near future.
45. Future Scenario
– The rapid spread of high-speed mobile data, that is changing fast. India’s internet
contribution to GDP could increase from 1.6 per cent in 2012 to between 2.8 per
cent and 3.3 per cent by 2015, according to McKinsey.
– Experts predicts- India will double (40 millions ) the number of ecommerce
buyers by 2016 & spending will be quadruple to US $8.5 billion.
– The major sector that will see 400% growth by 2016 will be the Fashion
ecommerce.
– Compound annual growth rate of ecommerce market for India is high at 57%
while for China it is 25%. Ecommerce is penetrating into smaller cities to rural
areas.
47. Future Scenario
• In the year 2013 global E-commerce sales touched the $1 trillion mark and market
size is still growing at a healthy pace of 19.4%.
• Source: Goldman Sachs
48. Future Scenario
• India has huge scope for ecommerce.
• One of the major affecting criteria for ecommerce sales is payment.
– People prefer to buy goods online with cash-on-delivery method.
– The third party e wallets are now replacing the cash-on-delivery method such
that people feel safe as well as both seller and buyer is mutually satisfied.
• eCommerce business: it is interesting to note that only 9% of the Indians have
internet connection to shop online while BRICS countries have 30% internet
connection.
49. Future Scenario
• The market is 60% smaller compared to China. Hence, the success of Indian
ecommerce business depends on more number of people to get involved in buying
and selling via online.
• Ecommerce has become one of the stem cells for the business world since it
converges the market through the online access. The buyers are given utmost
importance while the business is customer-centric.
• The annual growth rate of countries like Japan, South Korea, and Australia will be
11% to 12% for the next 5 years. Comparatively, China and India has good
advantage over the market.
