2. 2
Online Travel
• India’s travel industry was pegged at over
USD 2.8 Bn (Rs. 140 bn) by end of March
2010, comprising of Tour Operators,
Railways, Hotels and other such entities.
• The online travel industry size currently is
about 25% amounting to USD 700 mn by
year 2010.
• Top 5 players: MakeMyTrip, Cleartrip, Yatra,
Travelguru,IRCTC
• The current growth rate of India’s online
travel industry is 45%. The operating
margins of most online travel operators are
about 8-12%. Makemytrip had a
successful IPO in July2010
• The current growth rate of India’s online
travel industry is 45%. The operating
margins of most
online travel operators are about 8-12%
• Growth is driven by Indian professionals
traveling within India and abroad,
Company Revenues
Make My
Trip
US 83.56 mn
Travel Guru US 4 mn
ClearTrip US 9.6 mn
Yatra US 15.6 mn
IRCTC US 34mn
3. 3
Online Matrimony
Online matrimony segment is driven by 2 main
factors:
1) Arranged Marriages is still a norm in India
2) Online matrimony provides a much larger
database of grooms/brides unlike local match
makers.
Dominated by 4 key players:
63 million by 2010-11( Empower research 2010)
Shaadi.com – is the leader with maximum visitor
traffic in FY 2010.Revenues (USD 18 mn)
Jeevansathi.com – is second in terms of unique
visitor traffic in the same year however, it is the
leader in terms of page-views (133 million) as
compared to Shaadi (75 million). (USD 14 mn)
Bharatmatrimony.com – is number 3 in terms of
unique visitors but it is also experiencing a decline
in traffic like Shaadi.com (USD 10 mn)
Indiamatrimony.com with over 1 million profiles
is a significant player. (USD 4 mn)
Simplymarry.com, LifepartnerIndia.com,
Indiabestmatch.com, vivahabandhan.com,
shubhlagan.in are some of the other upcoming
sites.
Company Revenues
Shaadi.com 18 mn
JeevanSathi
.com
14mn
Bharatmatri
mony.com
10 mn
Indiamatri
mony.com
4mn
4. 4
Online Jobs
USD 0.5 bn (1000 cr market) Dominated by a
few big players such as:
Naukri.com – leader with over 10 million
unique visitors during FY 2008.
Monster.com – 2nd website in terms of
visitor traffic with around 6.5 million unique
visitors in fiscal 2010.
Timesjobs.com – fastest growing recorded
a 40% jump in visitor traffic during FY 2010.
Clickjobs.com- Fourth largest with 2 mn
unique visitors
Driven by: Strong growth in India’s Services
sector, IT/ITES/ boom. (Naukri is part of
infoedge, monster is not listed in India ,
Times jobs is part of Times of India group.
Individual revenue numbers are not available
directly)
5. 5
Online Real Estate
Indiaproperty.com– maximum number of
unique visitors in FY 2010 (65 mn ) unique
visitors,150 mn page views
99acres.com – is number two in terms of
visitor traffic but leads in terms of page-
views.
58 mn unique visitors, 180 mn page views
Magicbricks.com – 45 mn unique
visitors,120 mn page views
Makaan.com – 35 mn unique visitors,102
mn page views
Driven by: Strong growth in India’s Services
sector, IT/ITES/ boom, real estate boom in
boom towns. (99acres is part of infoedge. )
6. 6
B2B biz Networks/Directories
Free and cost-effective online applications
are available for all typical business
processes of
SMEs. Revenue Model: Bulk Purchase
orders and Product search listing. Registered
with more than 40,000 product listings and
10,000 vendors
Top 3 leading b2b networks are:
• IndiaMART.com: Biggest B2B Market
place. Comprehensive directory of all
major B2B players with the contact
details.
• Tradeindia.com: Second largest B2B
Market place. Registered with more than
25,000 product listings and 8,000 vendors
• BizXchange.in: Third largest B2B Market
place. Registered with more than 20,000
product listings and 6,000 vendors
7. 7
Online Retail Portals
Mark
Driven by India’s increasing internet and credit
card penetration. Provide a wider reach and even
cover tier2 and tier 3 cities. Primarily cater to
professional working class and youth.
Top 5 players are:
IndiaPlaza: Revenues of US$ 12mn in 2010 ( to
be confirmed). Claims to have the largest
collection of books and gift items
Infibeam: Launched India’s first ereader. Major
source of revenue from books though they started
out a shopping site across all categories
Rediff Shopping: Overall rediff revenues in March
2010 USD 18.84 mn. Claim that 25% revenues
come from shopping (to be verified)
eGully India: Online retailer across all categories
(launched in 2008). Revenues of 4 crores.
Naaptol India: Online retailer across all
categories (launched in 2007). Expected Revenues
of 3.5 crores in 2010
8. 8
Online books
Mark
Sachin Bansal,CEO FlipKart India:
Market size of whole of book industry in India is
estimated at 6000 crores and is growing at a very quick
pace. Market size for online book shopping in India is
expected to be between Rs. 70 crore for 2010 and growing
at a healthy rate 50-60% Year on Year ( to be verified). It
is driven by growing middle class, better internet access
and
higher comfort of Indians with online shopping
Top 5 players (Based on Alexa rankings) are:
FlipKart: Aims to be Amazon of India. Posted revenue of
Rs 5 crore in 2008-09 and its site attracts 5 million visitors
a month. In 2009, they grew to 8 crores with 8.5-9 mn
visitors.
Bookshopindia: Claim to be second largerst book store.
In 2009, they claim to post revenues of 3 crores with 4.5
mn visitors.
IndiaPlaza: Largest shopping portal of India. Claim to
have the biggest collection of books (8 lakh titles )
Indiatimes shopping: Largest information portal of
India. Claim to get over 30% of total revenues by books
(to be verified)
9. 9
Online Gifts
Driven by India’s increasing internet and credit
card penetration. India’s corporate gifts market is
over US$
1.2 billion with online gifting constituting 1% of
overall share (Source: Business India news, Jan
2010)
Top 5 players (Based on Alexa rankings) are:
India Gifts Portal:
Claim to have the largest market share (20%) of
Corporate gifting market. Expected Revenues of
over 20 crores in 2010 (to be confirmed)
GiftsIndia.com:
Expected revenues of 6-7 crores in 2010. claim to
be the second largest player
IndiaPlaza:
Indiatimes shopping:
Rediff Shopping:
10. 10
Online Shoes
India’s online footmarket is estimated to be
800 cr+ (Business world April 2009). Online
shoe selling constitutes only 1% of the total
market. Driven by increasing internet and
credit card penetration
BigShoeBazaar: Claim to be Largest online
authorized shoe store in South Asia. Claim
Revenues of 8.5 crores in 2009 (to be
confirmed)
IndiFootwear: Claim Revenues of 4.5
crores in 2009 and seem to have highest
number of unique visitors in their category
(requires confirmation)
Playgroundonline: Cater to sports and
outdoor apparel market. Likely to do 1.3
crores this year
11. 11
Online Kids shopping
India’s online baby care is estimated to be
1000 cr+ (Business India Dec 2009). Online
segment constitutes less than 3% of the
total market. Driven by increasing internet
and credit card penetration
BabyIndia: Claim to be fastest growing
online babycare store in India. Expected
revenues 4 crores 2010 (to be confirmed).
Shopmania: Claim to derive largest share of
revenues from baby care segment (40% ).
Revenues for 2010: 2.8-3 crores
KidStudtio: Expected revenues of 1.5 crores
in 2010
12. 12
Payment Gateways
Problem area: Low credit card penetration, also
online payment is unreliable making ecommerce
difficult. online fraud and account
breaches are the biggest barriers to eCommerce.
Online shoppers are apprehensive and unwilling to
provide their credit card and bank details (Business
world survey June 2008)
Payment gateways provide a solution. Leading
Payment gateways:
CCAvenue: Biggest payment gateway provider in
India. Revenues: 280 crores (March 2009).Tie-ups
with all leading banks, 30,000 merchants. Part of
Avenues group with multiple online business
interests( Events, Online travel services
EBS-Payments:online payments system offers
payment options; credit cards, prepaid cards and
online bank transfer.
neonePay: Offer
Pay Seal (from ICICI Bank)
Axis Payment Gateway:
13. 13
Customer Online Billing solutions
Problem area: Enable individuals/customers to
pay bills online.Top two players:
1) BillDesk: Direct relationship model. One time.
Authentication of credit card/debit card. Small
Fee for every transaction. Investors: SIDBI
ventures
2) Bill Junction (Tech Process Solutions
Ltd):Use Electronic Clearing Services where the
customer specifies the amount to be debited in
his account for every bill generated. Flat
Subscription fee for users. Even allow
Enterprise and Corporate Bill payment.
Investors : ICICI Ventures, GreyLock Ventures
3) Timesofmoney.com: Allow bill payment
through credit card/debit card services. Service
product: “DirectPay”. Subscription based model
for users.
4) Easy2Pay: electronic bill presentation and
payment (EBPP) service. It enables the user to
view, store and pay the bills. It is India’s first real-
time EBPP service provider that offers multiple bill
payment modes. It only charges a one-time fee
and no annual charges. It has some big Corporate
firms as
its clientele.
14. 14
mPayments
Problem area: PC and Internet on PC penetration in India is low
but mobile penetration is high. For mCommerce to succeed,
mobile payments platform should be successful.
Recent regulation by RBI :
Leading Mobile payment providers:
1) mChek: Signed up with all leading telcos, banks, ticket
providers, insurance companies. Enable bill payments, ticket
purchases. One time credit card authentications setup.
Investors: DFJ
2) Paymate: Like mChek, allows users to link mobile phone with
a credit card, bank account. Tie ups with mobile phone
operators, banks but smaller coverage
3) Obopay India: Part of Obopay group,California. Partnered
with Nokia for mobile payment platform. Revenues less than
$1mn.
4) ATOM Tech: Part of Financial Technologies India group.
Providing a mobile app which includes a credit card on mobile.
Any payment requires a password authentication.
15. 15
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 Interviews, 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.
16. 16
Ecommerce Software/Solution Providers
Many front-end ecommerce portals use
ecommerce solution/platform providers for their
services. Advantage is that these eCommerce
solution providers have proven expertise and the
front-end companies do not have to re-invent the
wheel in all areas.
Company Expertise
Verchaska Travel platform. Clients:
cleartrip,eezego,eToursOnline
Binary
semantics
Maruti Udyog Ltd,
automartindia.com
ProSolutions
Software
India Plaza, rediff-shopping,
indiatimes
eStoreGroup Merchant integration
17. Trends That Will Shape
E-Commerce In India In 2014
• Big Data fuels big changes in business innovation
• Brick to click to mobile, e-commerce goes the Omni-channel
route
• From SEO to storytelling – quality content takes precedence
• Building customer confidence – trust and transparency is
paramount
• From cash-on-delivery to next-day-delivery
• Sell everything online!
18. Key Findings
• Average order values climbing up rapidly
• Fashion category doubled last year
• Mobile shopping is seeing phenomenal growth
• Women influenced sales will grow 5x in next 3 years
