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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
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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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