The document provides an overview of the e-commerce industry in India. It discusses key growth drivers and opportunities for the industry. Some of the main points include:
- The Indian e-commerce market is expected to grow significantly from $38.5 billion in 2017 to $200 billion by 2026, driven by rising incomes, growing internet penetration, and increasing online shoppers.
- Internet users in India are projected to increase from 445 million in 2017 to 829 million by 2021, fueling more e-commerce activity. Online retail is also expanding beyond major cities into tier-2 and tier-3 areas.
- Electronics currently dominates e-commerce sales but categories like apparel, home/furn
Ground Zero 4.0 | Scaling Up - Event ReportRedSeer
Â
Executive Summary
The report is compiled of all the topics that were discussed at Ground Zero 4.0 and has been
segregated based on RedSeerâs research and panel inputs.
Key Findings:
1. Digital India
2. Retail
3. D2C
4. Education
5. Healthcare
6. Grocery
7. Etailing
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Demographics and socio-economic classes (across gender, rural/urban, income groups)
Type and nature of internet usage (content consumption, service transactions, product transactions, etc.)
Source: Cases study done by Google & its research partner
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
A compilation of statistics on connectivity, social media and online marketing in India and the world. Check interesting B2B case studies and find out where India is headed to!
Ground Zero 4.0 | Scaling Up - Event ReportRedSeer
Â
Executive Summary
The report is compiled of all the topics that were discussed at Ground Zero 4.0 and has been
segregated based on RedSeerâs research and panel inputs.
Key Findings:
1. Digital India
2. Retail
3. D2C
4. Education
5. Healthcare
6. Grocery
7. Etailing
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Demographics and socio-economic classes (across gender, rural/urban, income groups)
Type and nature of internet usage (content consumption, service transactions, product transactions, etc.)
Source: Cases study done by Google & its research partner
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
A compilation of statistics on connectivity, social media and online marketing in India and the world. Check interesting B2B case studies and find out where India is headed to!
There has been a sudden switch in the buying and selling pattern of the customers in all over India, which created the growth of e-commerce industry. This switch can also be noticed in the automobile industry. The online penetration of auto sector in the world market is approx. 0.7% in 2019. It was challenging for automobile ecommerce industry to make it successful in India, but eminent players of India have made it possible. To learn the possibilities and success of auto ecommerce industry go through this document.
Retail Marketing in Rural India â Factors in Favour and StrategiesDr. Amarjeet Singh
Â
Retail industry now accounting for 10% of the
countryâs GDP undergoes dynamic changes boosting its
growth still further. The sector grows impressively leading
to production of wide range of products and services.
Rural markets provide great scope for marketers due to
increased revenue and purchase power of the rural
population in India. The rural income is expected to
increase faster due to government policies supporting
agriculture and the earning population that has
temporarily moved out of rural villages to cities for
employment in non-agricultural sectors. Technology in
agriculture has helped to produce quality crops and the
market is ready to give high prices for such products.
Around 60% of the students in the colleges are first
generation graduates who have moved out of their villages
for tertiary education. Thus the life style, likes and
preferences of the rural population keeps changing.
However the huge rural segment is much different from
that of the urban segment and the marketers need to
approach with sustained efforts and special models. The
highly fragmented rural segmentâs needs are majorly filled
by unorganized family run Kirana stores and Maligai
shops. The share of organised retail in the country has
risen by 60% and the same is expected to have impact on
the rural market as well. The paper focuses on the growth
of retail market in India, the emerging factors in favour of
rural retail and suggests strategies for rural retailing.
E commerce is the word ruling the business since the last few decades. Thousands of businesses have moved online to utilize the potential of the Internet for reaching a wider audience. Further, this translates into an additional revenue stream that gets you an increased ROI Return On Investment with less investment cost and time. Today, e commerce has enveloped our lives in such a way that it has become a necessity rather than a passion. From the business perspective, it comes ahead as a massive opportunity and even established brick and mortar brands are exploring this territory today. The rural e commerce market in India has the potential to be at $10 billion to $12 billion in the next four years on the back of increasing internet penetration, rising household income and the government's push on digital in rural areas, said a report from market research firm EY India. "Effective use of vernacular languages and assisted commerce will help drive the large rural online opportunity for e commerce firms looking to accelerate growth beyond the favorable industry metrics Dr. Vijayant Kumar "Revolution of E-Commerce in Rural Market" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26782.pdfPaper URL: https://www.ijtsrd.com/management/marketing/26782/revolution-of-e-commerce-in-rural-market/dr-vijayant-kumar
'Indian e tailing industry may touch usd 28 billion by fy2020' eTailing India
Â
India's e-commerce sector is expected to touch USD 28 billion by FY2019-20 on account of an increase in number of buyers and stable annual spends per consumer, according to a report.
This is a basic notes for E-Commerce. It includes types of e-commerce models and the e-commerce in India. It helps primary understanding of the students.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
Â
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the best method to sell pi coins in 2024DOT TECH
Â
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Â
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can i use my minded pi coins I need some funds.DOT TECH
Â
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. đ I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
Â
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Â
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the worldâs largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to swap pi coins to foreign currency withdrawable.DOT TECH
Â
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
Â
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
2. Table of Content
Executive SummaryâĻâĻâĻâĻâĻâĻ.âĻ.âĻâĻ.3
Advantage IndiaâĻâĻâĻâĻâĻâĻâĻ..âĻ.âĻâĻ..4
Market Overview âĻâĻâĻâĻâĻâĻâĻâĻ.âĻâĻ..6
Strategies AdoptedâĻâĻâĻâĻ.âĻâĻ..âĻ..âĻ..14
Growth Drivers and OpportunitiesâĻâĻ.âĻ..17
Industry AssociationsâĻâĻâĻâĻâĻ...âĻâĻ.....25
Useful InformationâĻâĻâĻ.......âĻâĻâĻ.âĻâĻ..27
3. For updated information, please visit www.ibef.orgE-commerce3
38.50 50.00
63.70
150.00
200.00
0
50
100
150
200
2017 2018F 2020F 2022F 2026F
445.96 512.26
700.00
829.00
0
500
1,000
2017 Q2 2018 2020 2021
Internet Users in India (million)
Indiaâs Internet Economy (US$ billion)
125.00
250.00
0
100
200
300
FY17 2020
Indian E-commerce Market (US$ billion)
Source: Media sources, BCG â The $250 billion Digital Volcano, BCG â Digital Consumer Spending in India, Kalaari Capital - Imagining Trillion Dollar Digital India
ī§ The Indian E-commerce industry has been on an upward growth
trajectory and is expected to surpass the US to become the second
largest E-commerce market in the world by 2034.
ī§ The E-commerce market is expected to reach US$ 200 billion by
2026 from US$ 38.5 billion in 2017.
ī§ India's e-commerce market has the potential to grow more than four
folds to US$ 150 billion by 2022 supported by rising incomes and
surge in internet users
ī§ With growing internet penetration, internet users in India are
expected to increase from 445.96 million in 2017 to 829 million by
2021.
ī§ As of June 2018, internet subscribers in India stood at 512.26 million
people.
ī§ Each month, India is adding approximately 10 million daily active
internet users to the internet community supporting the ecommerce
industry which is the highest rate in the world.
ī§ Online shoppers in India are expected to reach 220 million by 2025.
ī§ Indiaâs internet economy is expected to double from US$125 billion
as of April 2017 to US$ 250 billion by 2020, majorly backed by E-
commerce.
ī§ Digital transactions are expected to reach US$ 100 billion by 2020.
ī§ Through its âDigital Indiaâ campaign the Government of India is
aiming to create a trillion dollar online economy by 2025.
EXECUTIVE SUMMARY
5. For updated information, please visit www.ibef.orgE-commerce5
ADVANTAGE INDIA
ī§ India is the fastest growing market for the E-commerce sector
with the e-commerce market expected to grow approximately
1,200 per cent by 2026.
ī§ Being driven by a young demographic profile, increasing
internet penetration and relative better economic
performance, Indiaâs E-commerce revenue is
expected to jump from US$ 39 billion in 2017 to
US$ 120 billion in 2020, growing at an
annual rate of 51 per cent, the highest
in the world.
ī§ The recent rise in digital literacy has led to an
influx of investment in E-commerce firms,
levelling the market for new players to set up
their base, while churn out innovative patterns
to disrupt old functioning.
ī§ E-commerce industry in India witnessed 21
private equity and venture capital deals worth
US$ 2.1 billion in 2017 and 40 deals worth US$
1,129 million in the first half of 2018.
ī§ In India 100 per cent FDI is permitted in
B2B E-commerce,
ī§ As per new guidelines on FDI in E-
commerce, 100 per cent FDI under
automatic route is permitted in
marketplace model of E-commerce.
ADVANTAGE
INDIA
Source: Media sources, Aranca Research, Grant Thornton
ī§ A lot of Indiaâs blue-chip PE firms had
previously avoided investing in E-commerce
but are now looking for opportunities in the
sector.
ī§ Indiaâs start-up ecosystem is growing
supported by favourable FDI policies,
Government initiatives like Start-up India and
Digital India, as well as rising internet
penetration driven by market players like
Reliance Jio.
Notes: FDI â Foreign Direct Investment
7. For updated information, please visit www.ibef.orgE-commerce7
GROWTH OF E-COMMERCE IN INDIA
14
20
39
50
64
188
200
0
50
100
150
200
250
2014 2015 2017 2018 F 2020 F 2025 F 2026 F
ī§ Propelled by rising smartphone penetration, the launch of 4G
networks and increasing consumer wealth, the Indian E-commerce
market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion in 2017.
ī§ E-commerce is increasingly attracting customers from Tier 2 and 3
cities, where people have limited access to brands but have high
aspirations.
ī§ Average online retail spending in India was US$ 224 per user in
2017.
E-commerce Industry in India (US$ billion)
Notes: *Estimated, F â Forecasted
Source: Media sources, BCG â The $250 billion Digital Volcano, BCG â Digital Consumer Spending in India, Bain & Company â Unlocking Digital for Bharat
8. For updated information, please visit www.ibef.orgE-commerce8
RISING INTERNET PENETRATION IN INDIA
4.00
4.40
5.10
7.50
10.10
12.60
15.10
18.00
27.00
34.80
34.42
39.32
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Source: Economic Times, Live Mint, Department of Telecommunications, Bain & Company â Unlocking Digital for Bharat
ī§ Internet penetration in India grew from just 4 per cent in 2007 to
34.42 per cent in 2017, registering a CAGR of 24 per cent between
2007 and 2017. As of June 2018 overall internet penetration in India
was 39.32 per cent.
ī§ As of June 2018, internet penetration in Indiaâs urban areas stood at
82.10 per cent and 19.48 per cent in the rural areas.
ī§ Urban India with an estimated population of 444 million as per 2011
census, already had 338.84 million people using the internet as of
June 2018.
ī§ Rural India, with an estimated population of 906 million as per 2011
census, has 173.42 million internet users as of June 2018. There is
therefore a great opportunity for increasing penetration in the rural
areas. Internet penetration in rural India is expected to grow as high
as 45 per cent by 2021 compared to the current rate of 18 per cent .
ī§ Number of active internet users in the country is the second highest
globally and data usage of 8 GB/subscriber/month is comparable to
developed countries.
Internet Penetration in India (%)
Note: Internet penetration - number of internet subscribers per 100 population, * - As of June
9. For updated information, please visit www.ibef.orgE-commerce9
ONLINE RETAIL MARKET
Shares of Various Segments in E-commerce Retail by Value
(2018)
ī§ The online retail market in India is estimated to be worth US$ 17.8 billion in terms of gross merchandise value (GMV) as of 2017.
ī§ India has secured the highest CAGR among major economies in online sales at 70 per cent in the online retail market over the years 2012-17.
Online retail sales in India are expected to grow by 31 per cent to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.
ī§ Electronics is currently the biggest contributor to online retail sales in India with a share of 48 per cent, followed closely by apparel at 29 per cent.
By 2025, non-electronics categories are expected to take 80 per cent share in online retail in India.
ī§ Currently, the number of transactions in E-commerce retailing are 1-1.2 million per day and on E-commerce platforms are 55-60 million per month.
ī§ With cost of servicing tier-II and other smaller cities going down, most of e-retailâs growth in the country is going to come from there. Overall,
online shoppers in India are expected to cross 120 million in 2018 and eventually 220 million by 2025.
Source: Report by eMarketer, Kalaari Capital â Imagining Trillion Dollar India
48%
29%
9%
8%
3%
3% Electronics
Apparels
Home and
Furnishing
Baby, Beauty and
Personal Care
Books
Others
25
125
55
95
0
50
100
150
200
250
2017 2025
Tier-II and below Metro & Tier-I
Visakhapatnam port traffic (million tonnes)Online Shoppers in India (million)
10. For updated information, please visit www.ibef.orgE-commerce10
ONLINE RETAIL VS TOTAL RETAIL IN INDIA
95%
5%
Offline Retail Online Retail
Online retail out of total retail in India (2020)
97.1%
2.9%
Offline Retail Online Retail
Online retail out of total retail in India (2018E)
ī§ There are a lot of opportunities for e-retailers in India to capitalize upon with the gradually growing internet penetration in India.
ī§ As of 2016-17, online retail made up 1.5 per cent of overall retail market in India and is expected to contribute 2.9 per cent in 2018. 20 per cent of
organized retail market.
ī§ The online retail market in India increased from US$ 14.5 billion in 2016 to US$ 17.8 billion in 2017 and is expected to grow to US$ 73 billion by
2022 at a CAGR of 29.2 per cent.
Source: Redseer, Crisil, Report by eMarketer
Note: E-Expected
11. For updated information, please visit www.ibef.orgE-commerce11
E-COMMERCE RETAIL LOGISTICS MARKET IN INDIA
ī§ The E-commerce retail logistics market in India is estimated at US$ 1.35 billion in 2018 and is expected to grow at a 36 per cent CAGR over the
next five years.
ī§ Around 1.9 million shipments are currently being handled every day with metro cities contributing around 50 per cent of this demand
ī§ Logistics is a major driver of the E-commerce retail industry and is an important point of differentiation between market players aiming at better
customer satisfaction and service.
ī§ Currently in-house (captive) logistics arms of large retailers execute the most shipments, followed by E-commerce focused logistics service provides
(LSPs) and traditional LSPs.
ī§ India Post introduced its E-commerce portal leveraging its parcel business network. Full fledged operations are expected to start from December
2018.
Source: KPMG Report â E-commerce Retail Logistics India Notes: CAGR â Compound Annual Growth Rate
49%
28%
23%
Captive
Logistics Arms
E-commerce
retail focused
LSPs
Traditional
LSPs
E-commerce Retail Logistics Landscape in India (2018) E-commerce Retail Logistics: City-Wise Shipments
12% 10%
38%
50%
50% 40%
2017 2022
Metros
Tier 2 and
below cities
Tier 1 cities
12. For updated information, please visit www.ibef.orgE-commerce12
E-TAILING MARKET BY BUSINESS MODEL
E-commerce
Marketplace Model
ī§ Marketplace model adheres to the standards and directions of a
zero inventory model. For example, Naaptol, eBay and Shopclues.
ī§ The E-commerce marketplace becomes a digital platform for
consumers and merchants without warehousing the products.
Marketplaces do offer shipment, delivery and payment help to
merchants by tying up with some selected logistics companies and
financial institutions.
ī§ The new FDI policy rules and regulations in the E-commerce
market have permitted 100 percent FDI in the E-commerce
marketplace model under the automatic route.
Inventory-led Model
ī§ Inventory led models are those shopping websites where online
buyers choose from among products owned by the online
shopping company or shopping website take care of the whole
process end-to-end, starting with product purchase, warehousing
and ending with product dispatch.
ī§ A few examples of such are Jabong, Yepme and LatestOne.com.
Source: PWC
15. For updated information, please visit www.ibef.orgE-commerce15
STRATEGIES ADOPTEDâĻ(1/2)
ī§ E-commerce companies are gradually expanding to different cities, regions and even countries. They are also
expanding their product range to cater to a larger amount of people.
ī§ Flipkart, after getting acquired by Walmart for US$ 16 billion, is expected to launch more offline retail stores in
India to promote private labels in segments such as fashion and electronics.
ī§ Paytm Mall, E-commerce platform of Paytm, is planning to expand its groceries segment and is targeting a
Gross Merchandise Value (GMV) of US$ 3 billion from this segment by the end of 2018.
ī§ Flipkart and Amazon have also entered the second hands good market in India which is estimated to be
around US$ 17 billion.
ī§ In September 2018, Flipkart acquired Israel based analytics start-up Upstream Commerce that will help the
firm to price and position its products in an efficient way.
ī§ In October, 2018, Amazon saw a 60 per cent growth in new India customers.
ī§ In the festive month beginning October 10, 2018, Gross Merchandise Value (GMV) expanded year-on-year
for Flipkart at about 90 per cent and for Amazon at about 70 per cent.
Expansion
ī§ One of the biggest advantage of E-commerce is that along with the core product or service it can also provide
numerous ancillary services without having to invest a lot.
ī§ Guaranteed one day deliveries, exclusive deals and video streaming for a subscription fee, as in the case of
Amazon Prime. India is currently the fastest growing market for Amazon Prime.
ī§ Flipkart introduced its own payment gateway Payzippy and also, its own logistics and supply chain firm Ekart.
ī§ E-commerce websites are also introducing e-Wallet services; for example - Amazonâs Pay Balance.
ī§ Paytm has launched its bank - Paytm Payment Bank. Paytm bank is India's first bank with zero charges on
online transactions, no minimum balance requirement and free virtual debit card
ī§ GMV of sales financed through no-cost EMIs has increased to 20 per cent from 4-5 per cent share two years
ago.
Ancillary services
Source: Media sources, Company websites, Kalaari capital â India Trends 2018
16. For updated information, please visit www.ibef.orgE-commerce16
ī§ E-commerce companies are increasingly adopting subscription model to provide extra benefits and tailored
services to customers to suit their needs.
ī§ Amazon introduced Amazon Prime, a subscription based service for Amazon customers, in 2016. members of
Amazon Prime could avail early access to selected deals, free one day delivery and other benefits. Amazon
Prime subscribers in India stood at around 5-6 million as of December 2016
ī§ In 2014, Flipkart introduced Flipkart First, a premium subscription based services wherein a customer gets
free delivery, discounted same day delivery, priority customer service etc.
Subscription for E-
commerce
ī§ Site visitors demand one-of-a-kind experiences that cater to their needs and interests. Technology is
available, even to smaller players, to capture individual shoppersâ interests and preferences and generate a
product selection and shopping experience led by individualised promotions tailored to them.
ī§ Many E-commerce websites provide personalised experience to customers to cater to their needs and
interests depending upon their location, choices, products they like or buy, websites they visit etc.
ī§ This strategy has helped companies to know customersâ demands better and serve them accordingly.
Personalised Experience
STRATEGIES ADOPTEDâĻ(2/2)
ī§ To expand their reach, brands are tying up with assisted E-commerce organisations which provide local
merchants with a platform to place their orders.
ī§ Under this, the consumers do not place online orders on their own. Instead, the order is placed on the
merchant shops with their help and the product is either delivered to the shop or customerâs address.
ī§ This model can become an enabler for online retailers to expand their outreach in areas where internet
penetration is low.
Assisted Commerce
18. For updated information, please visit www.ibef.orgE-commerce18
GROWTH DRIVERS FOR E-COMMERCE
Growth
drivers
Increasing
awareness
Investment
Government
initiatives
ī§ Government initiatives like
Digital India are constantly
introducing people to online
modes of commerce.
ī§ Favourable FDI policy is
attracting key players.
ī§ Increasing FDI inflows,
domestic investment, support
from key industrial players is
helping in the growth of E-
commerce.
ī§ As the awareness of using internet is increasing, more and more
people are being drawn to E-commerce.
ī§ Whether it be sellers, buyers, users or investors, people have
started getting used to online mode or commerce.
Source: Aranca Research
19. For updated information, please visit www.ibef.orgE-commerce19
DEMOGRAPHIC FACTORS
ī§ Over 120 million people are expected to shop online in 2018 and this number is expected to go up to 175
million by 2020.
ī§ Mobile-savvy shoppers are the backbone of Indiaâs online shopping industry.
ī§ Men in India are more avid shoppers than women in part because of demographic and cultural differences.
Online Shoppers
ī§ Discounts and EMIs added with a comfort of sitting at home and purchasing has become an effective driving
factor of E-commerce. Availability of various websites gives customers a lot of options to choose from.
ī§ Chatbots and personal assistance apps have made transactions seamless.
ī§ One can get several brands and products from different sellers at one place. Also, one can get in on the latest
international trends without spending money on travel; you can shop from retailers in other parts of the
country or even the world without being limited by geographic area.
Convenience of E-
commerce
ī§ Metro cities like Bengaluru, Mumbai, and Delhi, with population greater than 100,000, accounted for most
online shopping in absolute numbers.
ī§ Less densely populated regions generated a larger proportion of online sales. Nearly 60 per cent of
Snapdealâs purchases came from cities classified as tier II and III.
ī§ Flipkart also noted that âsales of branded products across categories saw a sharp increase, as more of tier 2
and tier 3 Indian towns took to shopping online.
Tier II and Tier III cities
provide major sales
ī§ Although shoppers between 25 and 34 years of age were most active on E-commerce portals, a surprising
number of older people also shopped online in 2016.
ī§ However, the age group of 15-34 years are the major consumers of E-commerce.
ī§ The popularity of web series among millenials is growing immensely.
Millennials are the most
active
Source: Economic Times, Media sources, Aranca Research
20. For updated information, please visit www.ibef.orgE-commerce20
FACTORS DRIVING E-COMMERCE GROWTHâĻ (1/2)
ī§ Online retailers see this emergent segment as a new growth driver as the incremental growth in mobile
subscribers can be credited mainly to people who are comfortable with languages other than English.
ī§ Indian language users on the internet are expected to reach 540 million by 2021.
ī§ In August 2018, Flipkart acquired an artificial intelligence company Liv.ai, which converts speech to text in 10
Indian languages.
ī§ Reverie Language Technologies is expected to raise US$ 20 million to achieve its vision to create language
equality on the internet.
Internet content in local
languages
ī§ Consumer demand can be seen increasing even in small towns and cities.
ī§ Tier-II cities in India are expected to have over 50 million online shoppers by 2018 end.
ī§ Less densely populated regions generated a larger proportion of online sales. Nearly 60 per cent of
Snapdealâs purchases came from cities classified as tier II and III.
Growth in non-metro cities
ī§ Online retailersâ growing reach in town and cities beyond metros is driven by an increasing in usage of mobile
internet in the country. Increased ownership of smartphones is helping more Indians access shopping
websites easily.
ī§ Rise in smartphone usage is expected to reach 50 per cent penetration by 2020.
ī§ The number of mobile internet users is expected to reach 478 million by June 2018 and 37.36 per cent of the
total population by 2021 which will further boost the mobile commerce sector in India.
Mobile Commerce
Source: Media sources, Kalaari capital â India Trends 2018
ī§ Online retailers now deliver to â12,500-15,000 pin codesâ out of nearly 100,000 pin codes in the country.
ī§ With logistics and warehouses attracting an estimated investment of nearly US$2 billion by 2020, the reach of
online retailers to remote locations is set to increase.
ī§ Indian warehousing sector is expected to grow by at least 100 per cent by 2021.
ī§ In April 2018, Amazon announced its plans to add five new fulfilment centres in India and retain its position as
the largest warehousing space provider in the country.
Growth of logistics and
warehouses
21. For updated information, please visit www.ibef.orgE-commerce21
FACTORS DRIVING E-COMMERCE GROWTHâĻ (2/2)
ī§ A net addition of nearly 140 million debit cards has been recorded in the country in the past few years. Usage
of debit cards at points of sale terminal has increased by 86 per cent during the same period. This clearly
reflects that people are getting comfortable with using debit cards for activities other than withdrawals at ATM.
ī§ September 2018 witnessed 30 per cent month-on-month increase in transactions through the Unified
Payments Interface (UPI) in India at 405.8 million transactions.
ī§ Digital consumer spending in India is expected to increase by more than two times to cross US$ 100 billion by
2020, driven by women and new internet users from smaller cities, according to a report by Google India and
BCG.
Cashless Transactions
Source: Media sources, Aranca Research
ī§ Amazon has launched an online Business-to-Business (B2B) market place in India where small and medium
enterprises (SMEs) can buy products.
ī§ Power2SME, one of the largest B2B online marketplaces in India that provides raw materials to small and
medium enterprises (SMEs), has raised US$ 36 million from Inventus Capital, Accel Partners and others in
September 2017, which will be used towards technology, sales, marketing and geographic expansion.
ī§ DesiClik a US based company has entered into strategic partnership with Indian Gifts Portal (IGP) which will
offer range of B2B solutions.
ī§ As of June 2018, Walmart India has activated Unified Payments Interface (UPI) transaction on its online B2B
e-commerce site
B2B E-commerce
ī§ Chinese phone manufacturer, Xiaomi Corporation, is planning to invest about US$ 1 billion in 100 Indian start-
ups over the coming five years, with an aim to make an ecosystem of apps surrounding its smartphone brand.
ī§ US-based E-commerce giant, Amazon, has invested about US$ 1 billion in its Indian arm so far in 2017,
taking its total investment in its business in India to US$ 2.7 billion.
ī§ Fynd a fashion E-commerce company closed its series of C round of funding at US$ 3.4 million with
participation from IIFL Seed Ventures, Venture Catalyst and Google.
Increasing Investments
Note: B2B â Business to Business
22. For updated information, please visit www.ibef.orgE-commerce22
INCREASE IN SMARTPHONES DRIVING E-COMMERCE
GROWTH
Indiaâs Smartphone Shipments (million)
8.0
14.5
17.5
42.5
79.5
102.0
108.0
124.0
63.5
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015 2016 2017 H1
2018
ī§ The proliferation of mobile devices combined with internet access via affordable broadband solutions and mobile data is a key factor driving the
tremendous growth in Indiaâs E-commerce sector.
ī§ Smartphone shipments in India increased 14 per cent year-on-year to reach 124 million units in 2017, thereby making it the fastest growing
market of the top 20 smartphone markets in the world.
ī§ During July-September quarter 2018, smartphone shipment in India grew 5 per cent year-on-year to all-time high at 44 million shipments.
ī§ Smartphone users in India are expected to reach 442 million by 2022.
ī§ Currently, mobile phones account for about 40 per cent of Gross Merchandise Value (GMV).
Source: IMF, World Bank, International Data Corporation (IDC), Counterpoint Research
Smartphone User Base in India (million)
340
402
442
0
50
100
150
200
250
300
350
400
450
500
2018 2020 2022
23. For updated information, please visit www.ibef.orgE-commerce23
GOVERNMENT AND PRIVATE INITIATIVES
INFLUENCING E-COMMERCE
ī§ As of August 2018, the government is working on the second draft of e-commerce policy, incorporating inputs
from various industry stakeholders.
ī§ The Indian Space Research Organization (ISRO) has announced to launch three more satellites aiding the
governmentâs Digital India programme to improve bandwidth connectivity to rural India
E-commerce Policy and
increase in satellites
Source: Bain & Company â Unlocking Digital for India, Union Budget 2018-19, Media Sources
ī§ In the Union Budget of 2018-19, government has allocated Rs 8,000 crore (US$ 1.24 billion) to BharatNet
Project, to provide broadband services to 150,000 gram panchayats.
ī§ The project has a target to connect 250,000 gram panchayats by March 2019. The government has also
planned to set up 500,000 Wi-Fi hotspots for providing broadband service to 50 million rural citizens.
ī§ The government has also allocated Rs 3,073 crore for the Digital India Mission in 2018-19. Under the Digital
India movement, government launched various initiatives like Udaan, Umang, Start-up India Portal etc.
Bharat Net and Digital
India
ī§ Under this project Google and Tata Trust have collaborated to improve internet penetration among rural
women in India.
ī§ The project has influenced over 16 million women in India and reached 166,000 villages
Internet Saathi
ī§ The telecom provider offered free high speed internet access to users for first seven months.
ī§ It has also allowed users to access all online services through a family of apps, creating a whole ecosystem
for them.
Reliance Jio
ī§ Udaan is a B2B online trade platform to connect small and medium size manufacturers and wholesalers with
online retailers and also provide them logistics, payments and technology support.
ī§ The platform has sellers in over 80 cities of India and delivers to over 500 cities.
Udaan
24. For updated information, please visit www.ibef.orgE-commerce24
PRIVATE INVESTMENTS IN E-COMMERCE
ī§ E-commerce industry in India witnessed 21 private equity and venture capital deals worth US$ 2.1 billion in 2017 and 40 deals worth US$ 1,129
million in the first half of 2018.
ī§ E-commerce start-ups in India received US$ 786.87 million of funding in the first half of 2018.
Company Investor Funding (US$ million)
Flipkart SoftBank 2,500
BigBasket
Alibaba Group Holding Ltd, Sands Capital, International Finance Corp,
Abraaj Capital
300
Udaan Lightspeed Venture Partners US and other 50
Capital Float Ribbit Capital, SAIF Partners, Sequoia India 45
Bank Bazaar Experian Plc 30
Droom Asset Management (Asia) Ltd, Digital Garage Inc 20
1 mg
HBM Healthcare Investments, Maverick Capital Ventures, Sequoia India,
Omidyar Network and Kae Capital
15
Gozefo Sequoia Capital India, Helion Venture Partners and Beenext Pte Ltd 9
Jumbotail Kalaari Capital, Nexus India Capital Advisors 8.5
Blackbuck InnoVen Capital 7.7
KartRocket.com Bertelsmann India Investments, Nirvana Digital India Fund 4.1
The Label Life Kalpavriksh, Centrum groupâs maiden private equity (PE) fund 3.1
Funding Activities
Source: Media sources, Aranca Research, Inc42
28. For updated information, please visit www.ibef.orgE-commerce28
GLOSSARY
ī§ CAGR: Compound Annual Growth Rate
ī§ GMV â Gross Merchandise Value
ī§ FDI: Foreign Direct Investment
ī§ FY: Indian Financial Year (April to March)
ī§ GOI: Government of India
ī§ INR: Indian Rupee
ī§ US$: US Dollar
ī§ Wherever applicable, numbers have been rounded off to the nearest whole number
29. For updated information, please visit www.ibef.orgE-commerce29
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004â05 44.95
2005â06 44.28
2006â07 45.29
2007â08 40.24
2008â09 45.91
2009â10 47.42
2010â11 45.58
2011â12 47.95
2012â13 54.45
2013â14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
30. For updated information, please visit www.ibef.orgE-commerce30
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