E-commerce is growing rapidly around the world, especially in large countries like the US, China, and India. While India has over 80 million internet users and growing online activities in areas like travel, classifieds, banking, and music, e-commerce is still in its early stages in India compared to other countries. For e-commerce to further grow in India, issues like internet connectivity and payment infrastructure need to be improved, and more consumers need to start transacting online on a regular basis. The ecosystem supporting e-commerce in India is still developing as well.

1. E-Commerce in India
Status Quo
(With also a context to Status quo ante)

2. • There are over 2 billion Internet users in the world (almost 1/3rd of
the world population)
• Retail e-commerce itself in the U.S. is predicted to grow at 17% and
it will account for $200 billion in sales in the current year i.e. 2012
• China has added the equivalent of the entire population of France in
internet users in each of the last four years (2007 – 2011)
• By 2015, China will surpass U.S. in terms of total e-commerce
revenues.
• In 2011, Germany’s online trade increased 17% in 2011 to
€21.48billion.
E-Commerce: The world over

3. • 80 million Internet users
• 10 million 3G connections within 6 months of launch, almost equal
to the base of wire line broadband connections
• The 2nd largest user base for Google+ and Orkut in the world
• 28% of travel gets booked online; 117 million transactions on IRCTC
alone
• 47% of the classifieds business is online
• 7% of bank users in India access their accounts online
• 25% of IT returns were filed online in 2010-11
• Close to 50% of music revenues in India comes from mobile
downloads
E-Commerce - India

4. • Is the quality of Internet connectivity good enough to
drive consumption online?
• Is the payment infrastructure ready to support large scale
e-commerce growth?
• Are Indian consumers really ready to embrace e-tailing?
How many are actually transacting?
• How ready is the supply chain infrastructure to handle
direct consumer deliveries?
• Do we have the right talent and environment available
within the industry?
• What is the path to profitability?
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5. Status of Ecosystem supporting E-commerce

8. Time spent online by Indian users at 16.5 hours per month
low compared to global benchmarks, projected to reach
21 hours by 2015
Total number of users transacting online in India at 8-10 million, expected
to increase to 38 million by 2015
Online Transactions – Indicator of Health of E-commerce as on date

9. Based on Relationship of Transaction Parties
• Business to Consumer (B2C)
• Business to Business (B2B)
• Consumer to Consumer (C2C)
• Consumer to Business (C2B)
Based on Relationship of Transaction type
• Brokerage Model
• Aggregator Model
Business Models for E-Commerce

10. • Banking
• Railways
• Transportation
• Retail
• Insurance
• Services
• Education
• Gaming, Music etc
and many more….
Sector wise presence of E-Commerce

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E-Marketing
E-Security
E-Payment systems
E-Customer Relationship Management
E-Supply Chain
E-Strategy
Support functions for E-Commerce and status quo

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24X7 Operations
Global Reach
Cost of acquiring, serving, and retaining customers
An extended enterprise is easy to build
Disintermediation
Improved customer service to your clients
Power to provide “the best of both the worlds”
Technology based customer interface
The customer controls the interaction
Knowledge of Customer Behavior
Network economics
Advantages in E-Commerce