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©	
  Gyan	
  Research	
  and	
  Analytics	
  Pvt.	
  Ltd.,	
  2015 1
Industry	
  News	
  
❑ Ecommerce	
  websites	
  compete	
  with	
  retail	
  fashion	
  sales	
  outlets	
  
Myntra	
  and	
  Snapdeal	
  both	
  are	
  holding	
  end	
  of	
  season	
  sales	
  from	
  July	
  18-­‐19,	
  2015,	
  where	
  Myntra	
  is	
  offering	
  
30-­‐80	
   percent	
   discount	
   across	
   the	
   range	
   and	
   Snapdeal	
   is	
   offering	
   30-­‐70	
   percent	
   discount	
   on	
   men’s	
  
footwear	
  &	
  40-­‐80	
  percent	
  discount	
  in	
  women’s	
  fashion.	
  Discounts	
  on	
  computer	
  accessories	
  and	
  phones	
  
are	
   also	
   being	
   offered.	
   Vis-­‐à-­‐vis	
   all	
   the	
   branded	
   retail	
   outlets	
   are	
   giving	
   discounts	
   on	
   their	
   range	
   of	
  
products,	
  but	
  the	
  discounts	
  are	
  not	
  as	
  high	
  as	
  the	
  ecommerce	
  websites.	
  It	
  is	
  expected	
  that	
  the	
  online	
  
shopping	
  penetration	
  in	
  India	
  will	
  increase	
  from	
  9	
  percent	
  in	
  2013	
  to	
  36	
  percent	
  by	
  2020.	
  
❑ Vendors	
  losing	
  money	
  as	
  buyers	
  turn	
  back	
  cash-­‐on-­‐delivery	
  orders	
  
Local	
   vendors	
   are	
   losing	
   huge	
   amount	
   of	
   money	
   through	
   sales	
   made	
   through	
   Cash	
   on	
   Delivery	
   (COD),	
  
which	
  has	
  been	
  one	
  of	
  the	
  defining	
  pillars	
  of	
  India's	
  ecommerce	
  boom.	
  Consumers	
  today	
  are	
  not	
  willing	
  to	
  
wait	
  longer	
  than	
  two	
  days	
  and	
  might	
  buy	
  the	
  product	
  elsewhere	
  and	
  reject	
  the	
  delivery.	
  COD	
  still	
  accounts	
  
for	
  60	
  percent	
  of	
  all	
  ecommerce	
  orders.	
  The	
  number	
  of	
  mobile	
  wallet	
  users	
  is	
  expected	
  to	
  raise	
  from	
  3	
  
crore	
  at	
  present	
  to	
  15	
  crore	
  by	
  2019.	
  	
  
❑ Snapdeal	
  to	
  power	
  the	
  ongoing	
  Bangalore	
  fashion	
  week	
  
Snapdeal	
  is	
  likely	
  to	
  power	
  the	
  ongoing	
  Bangalore	
  fashion	
  winter	
  festival	
  online	
  2015	
  from	
  July	
  23-­‐26,	
  
2015.	
   The	
   show	
   will	
   have	
   32	
   unique	
   looks	
   for	
   both	
   men	
   and	
   women’s	
   wear.	
   The	
   company	
   expects	
   to	
  
achieve	
  a	
  turnover	
  of	
  USD	
  2,000	
  million	
  in	
  fashion	
  business	
  in	
  the	
  current	
  fiscal	
  year.	
  	
  
❑ Online	
  grocery	
  retailer	
  wants	
  to	
  cover	
  250	
  cities	
  by	
  the	
  end	
  of	
  2017	
  
Mumbai-­‐based	
  LocalBanya.com	
  plans	
  to	
  operates	
  in	
  20	
  cities	
  by	
  the	
  end	
  of	
  2015	
  and	
  looking	
  forward	
  to	
  
expand	
  to	
  250	
  cities	
  over	
  the	
  next	
  two	
  years.	
  It	
  plans	
  to	
  touch	
  100	
  cities	
  by	
  2016.	
  The	
  company	
  plans	
  to	
  
launch	
  warehouses	
  selectively	
  to	
  serve	
  to	
  some	
  specific	
  markets.	
  Localbanya	
  has	
  approximately	
  14,000	
  
products	
  and	
  over	
  1,00,000	
  users	
  with	
  an	
  average	
  order	
  size	
  of	
  INR	
  1,500	
  per	
  order.	
  	
  
❑ Quikr	
  values	
  close	
  to	
  USD	
  1,000	
  million	
  	
  
Quikr	
  is	
  close	
  to	
  join	
  the	
  elite	
  group	
  of	
  technology	
  companies	
  valued	
  at	
  USD	
  1	
  billion,	
  after	
  it	
  recently	
  
completed	
  a	
  USD	
  60	
  million	
  secondary	
  round	
  in	
  which	
  existing	
  Swedish	
  investor	
  Kinnevik	
  and	
  two	
  new	
  
investors	
  Falcon	
  Edge	
  and	
  Coatue	
  Management	
  participated,	
  valuing	
  it	
  at	
  USD	
  900	
  million.	
  	
  	
  
❑ GoDaddy	
  to	
  help	
  SME’s	
  sell	
  online	
  in	
  India	
  	
  
GoDaddy	
  launched	
  its	
  online	
  stores	
  in	
  India	
  to	
  help	
  small	
  and	
  medium	
  enterprises	
  (SME)	
  to	
  set	
  up	
  their	
  
own	
  e-­‐commerce	
  websites.	
  In	
  exchange,	
  SMEs	
  will	
  be	
  charged	
  a	
  monthly	
  fee	
  of	
  INR	
  999.	
  GoDaddy	
  has	
  tied	
  
up	
  with	
  CC	
  Avenue	
  to	
  enable	
  over	
  100	
  plus	
  forms	
  of	
  payment	
  methods.	
  While	
  less	
  than	
  1	
  million	
  websites	
  
exists	
  in	
  India,	
  only	
  39	
  million	
  people	
  have	
  shopped	
  online	
  and	
  it	
  is	
  expected	
  to	
  grow.	
  
Ecommerce	
  News
July	
  18,	
  2015	
  -­‐	
  July	
  24,	
  2015
©	
  Gyan	
  Research	
  and	
  Analytics	
  Pvt.	
  Ltd.,	
  2015
❑ Walmart	
  plans	
  to	
  sell	
  fashion	
  items	
  on	
  Indian	
  ecommerce	
  sites	
  
Walmart	
  is	
  focusing	
  on	
  the	
  sale	
  of	
  fashion	
  products	
  directly	
  to	
  Indian	
  customers	
  through	
  ecommerce	
  sites.	
  
India’s	
   e-­‐retailing	
   market	
   has	
   been	
   growing	
   at	
   56	
   percent	
   a	
   year	
   from	
   INR	
   1,500	
   crore	
   in	
   2007-­‐2008.	
  
Walmart	
  also	
  plans	
  to	
  boost	
  its	
  ecommerce	
  investment	
  in	
  China.	
  
Investment	
  News	
  
❑ Portfolio	
  investors	
  can	
  invest	
  up	
  to	
  49	
  percent	
  in	
  ecommerce	
  
Portfolio	
  investors	
  can	
  invest	
  up	
  to	
  49	
  per	
  cent	
  in	
  retail	
  and	
  online	
  wholesale	
  companies	
  with	
  government,	
  
when	
  	
  composite	
  cap	
  in	
  foreign	
  investment	
  policy	
  is	
  introduced.	
  Currently,	
  51	
  percent	
  direct	
  investment	
  is	
  
permitted	
  to	
  retail	
  sector.	
  Investors	
  will	
  require	
  foreign	
  investment	
  promotion	
  board	
  approval	
  for	
  investing.	
  
India	
  allows	
  100	
  per	
  cent	
  foreign	
  direct	
  investment	
  in	
  business-­‐to-­‐business	
  ecommerce	
  through	
  automatic	
  
route.	
  	
  
❑ PayPal	
  merchants	
  keen	
  to	
  expand	
  business	
  in	
  India	
  
Digital	
  payments	
  company,	
  PayPal,	
  is	
  keen	
  to	
  expand	
  in	
  India.	
  On	
  July	
  21,	
  2015,	
  PayPal	
  re-­‐listed	
  on	
  the	
  
American	
  bourses	
  by	
  separating	
  from	
  eBay.	
  In	
  India	
  during	
  2013,	
  PayPal’s	
  export	
  growth	
  was	
  28	
  percent.
2
Ecommerce	
  News
July	
  18,	
  2015	
  -­‐	
  July	
  24,	
  2015
Weekly	
  Snapshot
Top	
  3	
  Indian	
  ecommerce	
  sites	
  	
  
for	
  traffic	
  visitors	
  comparison	
  –	
  May	
  2015	
  
(million)
Companies	
  Name No	
  of	
  visitors
Amazon.com 23.6
Flipkart.com 23.5
Snapdeal.com 17.9
Source:	
  Various	
  Published	
  Sources Source:	
  Various	
  Published	
  Sources
Firms	
  Dominating	
  Ecommerce	
  Market	
  in	
  India	
  
(2015)
Name	
  of	
  the	
  Company
Revenue	
  
(USD	
  million)
Flipkart 7,000
Snapdeal 2,000
Zomato 660
Jabong 500
Paytm 400
Myntra 200
©	
  Gyan	
  Research	
  and	
  Analytics	
  Pvt.	
  Ltd.,	
  2015 3
GYAN	
  RESEARCH	
  AND	
  ANALYTICS	
  PVT.	
  LTD.
Corporate	
  Office:	
  
LG	
  37-­‐38,	
  Ansal	
  Fortune	
  
Arcade,	
  Sector	
  -­‐	
  18,	
  
	
  Noida	
  -­‐	
  201	
  301	
  
Delhi	
  NCR,	
  INDIA	
  
Phone:	
  +91-­‐120-­‐4235181
Regd.	
  Office:	
  
298-­‐A,	
  Pocket	
  2	
  
Mayur	
  Vihar,	
  Phase	
  -­‐1	
  
Delhi	
  -­‐	
  110	
  091,	
  INDIA
Central	
  Delivery	
  Centre:	
  
BD-­‐9,	
  Sector-­‐1,	
  
Salt	
  Lake	
  City	
  
Kolkata	
  -­‐	
  700	
  064,	
  INDIA	
  
Phone:	
  +91-­‐33-­‐40060084
E-­‐mail:	
  reports@gyananalytics.com	
  
Website:	
  www.gyananalytics.com
Telecommunication	
  News,	
  July	
  18,	
  2015	
  -­‐	
  July	
  24,	
  2015	
  
OUR	
  BUSINESS	
  PRACTICES
Business	
  	
  
Research
Market	
  Entry	
  
Strategies Surveys
Pre-­‐Feasibility,	
  
Feasibility	
  &	
  
TEV	
  Studies
Business	
  
Match	
  
	
  Making
Economic	
  
Intelligence
Quasi	
  
Consultancy,	
  
CSR	
  Solutions,	
  
etc.

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Nl ecommerce july 18 - july 24, 2015

  • 1. ©  Gyan  Research  and  Analytics  Pvt.  Ltd.,  2015 1 Industry  News   ❑ Ecommerce  websites  compete  with  retail  fashion  sales  outlets   Myntra  and  Snapdeal  both  are  holding  end  of  season  sales  from  July  18-­‐19,  2015,  where  Myntra  is  offering   30-­‐80   percent   discount   across   the   range   and   Snapdeal   is   offering   30-­‐70   percent   discount   on   men’s   footwear  &  40-­‐80  percent  discount  in  women’s  fashion.  Discounts  on  computer  accessories  and  phones   are   also   being   offered.   Vis-­‐à-­‐vis   all   the   branded   retail   outlets   are   giving   discounts   on   their   range   of   products,  but  the  discounts  are  not  as  high  as  the  ecommerce  websites.  It  is  expected  that  the  online   shopping  penetration  in  India  will  increase  from  9  percent  in  2013  to  36  percent  by  2020.   ❑ Vendors  losing  money  as  buyers  turn  back  cash-­‐on-­‐delivery  orders   Local   vendors   are   losing   huge   amount   of   money   through   sales   made   through   Cash   on   Delivery   (COD),   which  has  been  one  of  the  defining  pillars  of  India's  ecommerce  boom.  Consumers  today  are  not  willing  to   wait  longer  than  two  days  and  might  buy  the  product  elsewhere  and  reject  the  delivery.  COD  still  accounts   for  60  percent  of  all  ecommerce  orders.  The  number  of  mobile  wallet  users  is  expected  to  raise  from  3   crore  at  present  to  15  crore  by  2019.     ❑ Snapdeal  to  power  the  ongoing  Bangalore  fashion  week   Snapdeal  is  likely  to  power  the  ongoing  Bangalore  fashion  winter  festival  online  2015  from  July  23-­‐26,   2015.   The   show   will   have   32   unique   looks   for   both   men   and   women’s   wear.   The   company   expects   to   achieve  a  turnover  of  USD  2,000  million  in  fashion  business  in  the  current  fiscal  year.     ❑ Online  grocery  retailer  wants  to  cover  250  cities  by  the  end  of  2017   Mumbai-­‐based  LocalBanya.com  plans  to  operates  in  20  cities  by  the  end  of  2015  and  looking  forward  to   expand  to  250  cities  over  the  next  two  years.  It  plans  to  touch  100  cities  by  2016.  The  company  plans  to   launch  warehouses  selectively  to  serve  to  some  specific  markets.  Localbanya  has  approximately  14,000   products  and  over  1,00,000  users  with  an  average  order  size  of  INR  1,500  per  order.     ❑ Quikr  values  close  to  USD  1,000  million     Quikr  is  close  to  join  the  elite  group  of  technology  companies  valued  at  USD  1  billion,  after  it  recently   completed  a  USD  60  million  secondary  round  in  which  existing  Swedish  investor  Kinnevik  and  two  new   investors  Falcon  Edge  and  Coatue  Management  participated,  valuing  it  at  USD  900  million.       ❑ GoDaddy  to  help  SME’s  sell  online  in  India     GoDaddy  launched  its  online  stores  in  India  to  help  small  and  medium  enterprises  (SME)  to  set  up  their   own  e-­‐commerce  websites.  In  exchange,  SMEs  will  be  charged  a  monthly  fee  of  INR  999.  GoDaddy  has  tied   up  with  CC  Avenue  to  enable  over  100  plus  forms  of  payment  methods.  While  less  than  1  million  websites   exists  in  India,  only  39  million  people  have  shopped  online  and  it  is  expected  to  grow.   Ecommerce  News July  18,  2015  -­‐  July  24,  2015
  • 2. ©  Gyan  Research  and  Analytics  Pvt.  Ltd.,  2015 ❑ Walmart  plans  to  sell  fashion  items  on  Indian  ecommerce  sites   Walmart  is  focusing  on  the  sale  of  fashion  products  directly  to  Indian  customers  through  ecommerce  sites.   India’s   e-­‐retailing   market   has   been   growing   at   56   percent   a   year   from   INR   1,500   crore   in   2007-­‐2008.   Walmart  also  plans  to  boost  its  ecommerce  investment  in  China.   Investment  News   ❑ Portfolio  investors  can  invest  up  to  49  percent  in  ecommerce   Portfolio  investors  can  invest  up  to  49  per  cent  in  retail  and  online  wholesale  companies  with  government,   when    composite  cap  in  foreign  investment  policy  is  introduced.  Currently,  51  percent  direct  investment  is   permitted  to  retail  sector.  Investors  will  require  foreign  investment  promotion  board  approval  for  investing.   India  allows  100  per  cent  foreign  direct  investment  in  business-­‐to-­‐business  ecommerce  through  automatic   route.     ❑ PayPal  merchants  keen  to  expand  business  in  India   Digital  payments  company,  PayPal,  is  keen  to  expand  in  India.  On  July  21,  2015,  PayPal  re-­‐listed  on  the   American  bourses  by  separating  from  eBay.  In  India  during  2013,  PayPal’s  export  growth  was  28  percent. 2 Ecommerce  News July  18,  2015  -­‐  July  24,  2015 Weekly  Snapshot Top  3  Indian  ecommerce  sites     for  traffic  visitors  comparison  –  May  2015   (million) Companies  Name No  of  visitors Amazon.com 23.6 Flipkart.com 23.5 Snapdeal.com 17.9 Source:  Various  Published  Sources Source:  Various  Published  Sources Firms  Dominating  Ecommerce  Market  in  India   (2015) Name  of  the  Company Revenue   (USD  million) Flipkart 7,000 Snapdeal 2,000 Zomato 660 Jabong 500 Paytm 400 Myntra 200
  • 3. ©  Gyan  Research  and  Analytics  Pvt.  Ltd.,  2015 3 GYAN  RESEARCH  AND  ANALYTICS  PVT.  LTD. Corporate  Office:   LG  37-­‐38,  Ansal  Fortune   Arcade,  Sector  -­‐  18,    Noida  -­‐  201  301   Delhi  NCR,  INDIA   Phone:  +91-­‐120-­‐4235181 Regd.  Office:   298-­‐A,  Pocket  2   Mayur  Vihar,  Phase  -­‐1   Delhi  -­‐  110  091,  INDIA Central  Delivery  Centre:   BD-­‐9,  Sector-­‐1,   Salt  Lake  City   Kolkata  -­‐  700  064,  INDIA   Phone:  +91-­‐33-­‐40060084 E-­‐mail:  reports@gyananalytics.com   Website:  www.gyananalytics.com Telecommunication  News,  July  18,  2015  -­‐  July  24,  2015   OUR  BUSINESS  PRACTICES Business     Research Market  Entry   Strategies Surveys Pre-­‐Feasibility,   Feasibility  &   TEV  Studies Business   Match    Making Economic   Intelligence Quasi   Consultancy,   CSR  Solutions,   etc.