e-Commerce Market – India
February 2014
2E-COMMERCE MARKET IN INDIA 2013.PPT
Executive Summary
Market
Electronic commerce (e-Commerce) market in India has registered a growth rate of over xx% in
the year 20-- from the year 20--
e-Commerce market size was pegged at INR yy tn in 20-- and is projected to attain a CAGR of
about yy% to reach INR zz tn by 20--
Online travel and retail segment continued to contribute the most in the market size for the year
2012, followed by online financial services, ‘other services’ and digital downloads
Market
Opportunity
Trends
 Some of the prominent trends identified in the market include the following:
Changes in Business Models
Refreshed Strategies
Competition
Major e-Commerce Vendors
Flipkart Online Services Thomas Cook India Amazon eBay India
Times Business Solutions Infoedge India Monster Worldwide Expedia India
 The e-Commerce market is brimming with opportunities for vendors, which when tapped
effectively, will provide vendors with a scope to build a sustainable future
 Some of the major opportunities in the market include the following:
Social Network Domain
Tier II & III Cities
Mobile Platforms
3E-COMMERCE MARKET IN INDIA 2013.PPT
•Macro Economic Indicators
•Introduction
•Market Overview
•e-Commerce Technology
•Market Boosters
•Issues Hindering Profitability of Players
•Trends
•Competitive Landscape
•Consumer Insights
•Market Opportunity
•Strategic Recommendations
•Appendix
4E-COMMERCE MARKET IN INDIA 2013.PPT
An example of e-Commerce system work model
e-Commerce
Space
Regional Logistics Support Regional Warehouse Logistics Support
Warehouse
e-Commerce
Vendor
Financial Service Provider
Consumers
Internet Enabled Devices
5E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce in India is fast evolving and is expected to
mature further in the ensuing years
• Registering a y-o-y (Year-on-Year) growth of over xx% in the year 2012, e-Commerce market is set course for a bright
future in India
• Currently, the market is dominated by the online travel and retail segments followed by financial services, digital
downloads, amongst others
• Factors such as a huge presence of internet users coupled with a continual increase in purchasing power of the Indian
population is mainly boosting the market
e-Commerce Market – India Overview
20--2012
INR tn
a
b
c
d
0
xxx
20--20--20--20--
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
e-Commerce Market Size & Growth – India e-Commerce Market Split (20--) – India
6
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce Market India (x/x) – Online xxx Overview
•Commanding, a market share of about , the
online xxx segment drives the e-Commerce market
•Mainly comprises of abc, def & ghi
•xxx currently happen to be the most visited online
xxx website
 The website manages to book an average of xxx
per month
•xxx
Online xxx – Snapshot Online xxx – Benefits for Players
Online xxx – Market Size & Growth (20xx)
Market Size Y-o-Y Growth
Major Online xxx Websites – (20xx)
Website Reach % - 3 months
Website A 0.0181%
Website AB 0.0357%
Website ABC 0.0458%
Website ABCD 0.0550%
Website ABCDE 0.0627%
Website ABCDEF 0.1240%
Website ABCDEFG 0.1915%
7
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce Market India (x/x) – Online xxx Overview –
India Statistics (x/x)
Online xxx Demand – India
Demand – East India
Demand – North India
Demand – West India
Demand – Central India Demand – South India
8
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Growth in individual disposable incomes is boosting the
e-Commerce market significantly
• Owing to a steady rise in the country’s GDP, the disposable income amongst the Indian
population is also showing signs of tremendous improvement
 A greater proportion of the overall Indian population now have considerably higher spending power as a
result of which e-Commerce is gaining mass momentum
• Entry of new players in the market result in a stiff competition and consequently vendors resort
to price cuts which in turn further strengthens the purchase power of the Indian population
Increased Spending Power Impact
Deprived
Aspirers
Seekers
Strivers
Globals
INR tn
a
b
c
d
e
0
2025e2015e2005
Core target
consumer
groups
>1000
500-1000
200-500
90-200
<90
mn
a
b
c
d
e
f
0
2025e2015e2005
Per household annual
income (INR ‘000)
Total No. of Household (mn) Aggregate Annual Disposable Income
9
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Expenses incurred in online advertising and customer
acquisition is on the higher side
Cost per click
Minimum
desired no. of
clicks
Amount shelled
out
Average cost per click
refers to the expenses
incurred by e-
Commerce vendors in
order to generate one
click from the
consumer
• Refers to the average
click to purchase
conversion ration
• On an average 1 out
of every 100 clicks
gets converted to
purchases in India
It refers to the amount
invested by e-
Commerce vendors in
order to facilitate at
least one successful
transaction
xxx
•xxx
Impact
This amount severely
damages the profit
margins, especially when
brand loyalty amongst
customers is almost zero in
the market
10
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
COD has its own set of pros and cons, however of late it has
started taking a heavy toll on the profitability
Losses Incurred for COD Impact
• The concept of COD was an immediate success in gaining customer confidence, however it
levied its own set of hurdles on e-Commerce vendors
• The biggest risk factor associated with COD is the chances of product return, which in turn
alleviates the overall expenses beared by vendors
• Consequently, these additional costs add up to the overall expenses of the vendors thereby
bringing down the profit margins by manifolds
Transaction Split –
e-Commerce India (20xx)
45%
55%
yyy xxx
e-Commerce
Vendor
xxx
Customer
xxx COD Charges
Product Return
COD Expenses – e-Commerce Vendor India
These costs add up to a
vendor’s expenses for a
single product delivered via
COD mode
11
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
An example of e-Commerce ecosystem
Internet
Infrastructure
Application
Infrastructure
Intermediaries
e-Commerce
Companies
Comprises of companies
offering basic IT
infrastructure and
equipment required for
going online in the World
Wide Web
Comprises of vendors
which produce softwares
intended to facilitate
online transactions and
other web services
Intermediary companies
provide a proper and
organized platform for e-
Commerce, so as to
facilitate online
transactions
Companies which act as
the interface for online
sellers as well as
prospective buyers fall
under this category
Networking, Hardware
and Software
Manufacturers, IT
peripheral vendors,
Internet Service
Providers
Web based commerce
app, databases, search
engine software, online
consultancy and
multimedia application
developers
Industry specific
companies such as online
travel players, financial
service providers, web
based ad developers and
content provders
Online e-Tailers, web
based media and
entertainment
companies, online
ticketing companies
xxx xxx xxx xxx
Description
Company
Type
Examples of
Companies
Ecosystem
Layers
12
SAMPLEPorter’s Five Forces Analysis
Bargaining Power of Buyers
• xxx
Impact
xxx
E-COMMERCE MARKET IN INDIA 2013.PPT
Threat of New Entrants
• xxx
Impact
xxx
Bargaining Power of Suppliers
• xxx
Impact
xxx
Threat of Substitutes
• xxx
Impact
xxx
Competitive Rivalry
• xxx
Impact
xxx
13
SAMPLEPublic: Foreign Company – Company ABC (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Name Designation
Head Office
Hyderabad
Category Products/Services
E-COMMERCE MARKET IN INDIA 2013.PPT
14
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of negative INR xxx bn in FY 20xx, as
compared to net profit of INR xxx bn in FY 20xx
• The company reported total income of INR xxx bn in FY 20xx, as compared
to INR xxx bn in FY 20xx
• The company earned an operating margin of xxx% in FY 20xx, a decrease of
xxx percentage points over FY 20xx
• The company reported debt to equity ratio of xxx in FY 20xx, an increase of
xxx% over FY 20xx
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (USD)
PE Ratio (Abs)
Particulars
y-o-y change
(20xx-xx)
20xx 20xx 20xx 20xx
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Net Profit/LossTotal Income
-20
0
20
40
60
INR bnINR bn
a
b
c
d
0
20xx20xx20xx20xx
Public: Foreign Company – Company ABC (x/x)
E-COMMERCE MARKET IN INDIA 2013.PPT
15
SAMPLEPublic: Foreign Company – Company ABC (x/x)
Key Business Segments Key Geographic Segments
100%
50%
0%
20xx
100%
48% 45% 44% 43%
52% 55% 56% 57%
0%
50%
100%
20xx20xx20xx20xx
xxx xxx
Business Highlights (1/2)
Description News
Online Retailers
E-COMMERCE MARKET IN INDIA 2013.PPT
xxx
16
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Consumer Insights: e-Commerce Segments (x/x)
a
b
c
d
e
0%
100%
Segment 6Segment 5Segment 4Segment 3Segment 2Segment 1
xxxxxx
Segment 6
Segment 3
Segment 5
Segment 2
Segment 4
Segment 1
• x
e-Commerce Segments – Split (2012) e-Commerce Segments – Overview
e-Commerce Consumption – Gender Split (2012)
17MOBILE INTERNET MARKET IN INDIA 2014.PPT
Thank you for the attention
The e-Commerce Market – India 2014 report is a part of Netscribes’ Information Technology
Series.
For more detailed information or customized research requirements please contact:
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report,
Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and
prior permission is required for guidelines on reproduction.
Phone: +91 22 4098 7600
E-Mail: info@netscribes.com
Follow us on:

E commerce market in india 2014 - Sample

  • 1.
    e-Commerce Market –India February 2014
  • 2.
    2E-COMMERCE MARKET ININDIA 2013.PPT Executive Summary Market Electronic commerce (e-Commerce) market in India has registered a growth rate of over xx% in the year 20-- from the year 20-- e-Commerce market size was pegged at INR yy tn in 20-- and is projected to attain a CAGR of about yy% to reach INR zz tn by 20-- Online travel and retail segment continued to contribute the most in the market size for the year 2012, followed by online financial services, ‘other services’ and digital downloads Market Opportunity Trends  Some of the prominent trends identified in the market include the following: Changes in Business Models Refreshed Strategies Competition Major e-Commerce Vendors Flipkart Online Services Thomas Cook India Amazon eBay India Times Business Solutions Infoedge India Monster Worldwide Expedia India  The e-Commerce market is brimming with opportunities for vendors, which when tapped effectively, will provide vendors with a scope to build a sustainable future  Some of the major opportunities in the market include the following: Social Network Domain Tier II & III Cities Mobile Platforms
  • 3.
    3E-COMMERCE MARKET ININDIA 2013.PPT •Macro Economic Indicators •Introduction •Market Overview •e-Commerce Technology •Market Boosters •Issues Hindering Profitability of Players •Trends •Competitive Landscape •Consumer Insights •Market Opportunity •Strategic Recommendations •Appendix
  • 4.
    4E-COMMERCE MARKET ININDIA 2013.PPT An example of e-Commerce system work model e-Commerce Space Regional Logistics Support Regional Warehouse Logistics Support Warehouse e-Commerce Vendor Financial Service Provider Consumers Internet Enabled Devices
  • 5.
    5E-COMMERCE MARKET ININDIA 2013.PPT e-Commerce in India is fast evolving and is expected to mature further in the ensuing years • Registering a y-o-y (Year-on-Year) growth of over xx% in the year 2012, e-Commerce market is set course for a bright future in India • Currently, the market is dominated by the online travel and retail segments followed by financial services, digital downloads, amongst others • Factors such as a huge presence of internet users coupled with a continual increase in purchasing power of the Indian population is mainly boosting the market e-Commerce Market – India Overview 20--2012 INR tn a b c d 0 xxx 20--20--20--20-- Segment 5 Segment 4 Segment 3 Segment 2 Segment 1 e-Commerce Market Size & Growth – India e-Commerce Market Split (20--) – India
  • 6.
    6 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT e-Commerce Market India (x/x) – Online xxx Overview •Commanding, a market share of about , the online xxx segment drives the e-Commerce market •Mainly comprises of abc, def & ghi •xxx currently happen to be the most visited online xxx website  The website manages to book an average of xxx per month •xxx Online xxx – Snapshot Online xxx – Benefits for Players Online xxx – Market Size & Growth (20xx) Market Size Y-o-Y Growth Major Online xxx Websites – (20xx) Website Reach % - 3 months Website A 0.0181% Website AB 0.0357% Website ABC 0.0458% Website ABCD 0.0550% Website ABCDE 0.0627% Website ABCDEF 0.1240% Website ABCDEFG 0.1915%
  • 7.
    7 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT e-Commerce Market India (x/x) – Online xxx Overview – India Statistics (x/x) Online xxx Demand – India Demand – East India Demand – North India Demand – West India Demand – Central India Demand – South India
  • 8.
    8 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT Growth in individual disposable incomes is boosting the e-Commerce market significantly • Owing to a steady rise in the country’s GDP, the disposable income amongst the Indian population is also showing signs of tremendous improvement  A greater proportion of the overall Indian population now have considerably higher spending power as a result of which e-Commerce is gaining mass momentum • Entry of new players in the market result in a stiff competition and consequently vendors resort to price cuts which in turn further strengthens the purchase power of the Indian population Increased Spending Power Impact Deprived Aspirers Seekers Strivers Globals INR tn a b c d e 0 2025e2015e2005 Core target consumer groups >1000 500-1000 200-500 90-200 <90 mn a b c d e f 0 2025e2015e2005 Per household annual income (INR ‘000) Total No. of Household (mn) Aggregate Annual Disposable Income
  • 9.
    9 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT Expenses incurred in online advertising and customer acquisition is on the higher side Cost per click Minimum desired no. of clicks Amount shelled out Average cost per click refers to the expenses incurred by e- Commerce vendors in order to generate one click from the consumer • Refers to the average click to purchase conversion ration • On an average 1 out of every 100 clicks gets converted to purchases in India It refers to the amount invested by e- Commerce vendors in order to facilitate at least one successful transaction xxx •xxx Impact This amount severely damages the profit margins, especially when brand loyalty amongst customers is almost zero in the market
  • 10.
    10 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT COD has its own set of pros and cons, however of late it has started taking a heavy toll on the profitability Losses Incurred for COD Impact • The concept of COD was an immediate success in gaining customer confidence, however it levied its own set of hurdles on e-Commerce vendors • The biggest risk factor associated with COD is the chances of product return, which in turn alleviates the overall expenses beared by vendors • Consequently, these additional costs add up to the overall expenses of the vendors thereby bringing down the profit margins by manifolds Transaction Split – e-Commerce India (20xx) 45% 55% yyy xxx e-Commerce Vendor xxx Customer xxx COD Charges Product Return COD Expenses – e-Commerce Vendor India These costs add up to a vendor’s expenses for a single product delivered via COD mode
  • 11.
    11 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT An example of e-Commerce ecosystem Internet Infrastructure Application Infrastructure Intermediaries e-Commerce Companies Comprises of companies offering basic IT infrastructure and equipment required for going online in the World Wide Web Comprises of vendors which produce softwares intended to facilitate online transactions and other web services Intermediary companies provide a proper and organized platform for e- Commerce, so as to facilitate online transactions Companies which act as the interface for online sellers as well as prospective buyers fall under this category Networking, Hardware and Software Manufacturers, IT peripheral vendors, Internet Service Providers Web based commerce app, databases, search engine software, online consultancy and multimedia application developers Industry specific companies such as online travel players, financial service providers, web based ad developers and content provders Online e-Tailers, web based media and entertainment companies, online ticketing companies xxx xxx xxx xxx Description Company Type Examples of Companies Ecosystem Layers
  • 12.
    12 SAMPLEPorter’s Five ForcesAnalysis Bargaining Power of Buyers • xxx Impact xxx E-COMMERCE MARKET IN INDIA 2013.PPT Threat of New Entrants • xxx Impact xxx Bargaining Power of Suppliers • xxx Impact xxx Threat of Substitutes • xxx Impact xxx Competitive Rivalry • xxx Impact xxx
  • 13.
    13 SAMPLEPublic: Foreign Company– Company ABC (x/x) Key People Products and Services Company Information Offices and Centres – India Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Name Designation Head Office Hyderabad Category Products/Services E-COMMERCE MARKET IN INDIA 2013.PPT
  • 14.
    14 SAMPLEFinancial Snapshot KeyRatios Financial Summary • The company incurred a net profit of negative INR xxx bn in FY 20xx, as compared to net profit of INR xxx bn in FY 20xx • The company reported total income of INR xxx bn in FY 20xx, as compared to INR xxx bn in FY 20xx • The company earned an operating margin of xxx% in FY 20xx, a decrease of xxx percentage points over FY 20xx • The company reported debt to equity ratio of xxx in FY 20xx, an increase of xxx% over FY 20xx Key Financial Performance Indicators Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (USD) PE Ratio (Abs) Particulars y-o-y change (20xx-xx) 20xx 20xx 20xx 20xx Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved Decline Net Profit/LossTotal Income -20 0 20 40 60 INR bnINR bn a b c d 0 20xx20xx20xx20xx Public: Foreign Company – Company ABC (x/x) E-COMMERCE MARKET IN INDIA 2013.PPT
  • 15.
    15 SAMPLEPublic: Foreign Company– Company ABC (x/x) Key Business Segments Key Geographic Segments 100% 50% 0% 20xx 100% 48% 45% 44% 43% 52% 55% 56% 57% 0% 50% 100% 20xx20xx20xx20xx xxx xxx Business Highlights (1/2) Description News Online Retailers E-COMMERCE MARKET IN INDIA 2013.PPT xxx
  • 16.
    16 SAMPLE E-COMMERCE MARKET ININDIA 2013.PPT Consumer Insights: e-Commerce Segments (x/x) a b c d e 0% 100% Segment 6Segment 5Segment 4Segment 3Segment 2Segment 1 xxxxxx Segment 6 Segment 3 Segment 5 Segment 2 Segment 4 Segment 1 • x e-Commerce Segments – Split (2012) e-Commerce Segments – Overview e-Commerce Consumption – Gender Split (2012)
  • 17.
    17MOBILE INTERNET MARKETIN INDIA 2014.PPT Thank you for the attention The e-Commerce Market – India 2014 report is a part of Netscribes’ Information Technology Series. For more detailed information or customized research requirements please contact: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and prior permission is required for guidelines on reproduction. Phone: +91 22 4098 7600 E-Mail: info@netscribes.com Follow us on: