2. India E-Commerce Overview
3 X US
Population
1.21 billion 2nd most populous
Population country in the world
That is only 1/16th
Only a $ 10 the size of US
Billion Market market
3. India E-Commerce Overview
Imagine if the US had the same population size as India
E-Commerce volume of
the USA with 1.2 Billion $ 500 Billion
population
This is India’s
potential
4. Challenges & Opportunities
Low internet users
(100 million)
Low credit card
penetration
+ Slow internet speed
Fulfillment issues
Only $ 10 BILLION Market
5. But There Is So Much Hype
Flipkart set to be
Amazon moving
1st Indian Billion
to India
Dollar Company
“An E-Com firm can become India’s largest retailer by
2015."
Vishal Mehta, CEO, Infibeam
6. Is This Hype of Any Worth
Current Growth
Let’s have a glance at current
Rate:
Growth Rate
47% CAGR
E-Commerce volume will
increase 10 fold if current
$ 100 Billion
growth rate continues for 6
years
7. Will It Get That Big
No one knows about it for sure but there are some indications supporting it:
India’s population will be more affluent
GDP will grow 5 times by 2030
Rapid growth of Tier 2 cities
8. Global Online Growth Trend
Unique Visitors in Million
700
617
600 574
500
399
400 370
Asia Pacific
300
206 213 Europe
200
134 134 North America
120 121
100 Latin America
Middle East & Africa
0
July'11 July'12
Growth in internet usage is more in Asia Pacific (7%)
and Latin America (11%)
9. BRIC Nations: A Comparison
Unique Visitors (In Million)
400 +5%
350 336
322
300
250
200
+20%
150 +41% Brazil
100 +6% Russia
52 59 62.6
48.9 49.1 44.5 China
50
India
0
Jan-11 Jan-12
India: Fastest growing market
among BRIC nations adding > 18 mn
internet users
10. India: Digital Achieves Critical
Mass
Time Spent (in billion minutes)
Pages viewed (in billion)
60
80
48 69.9
50 70
60 54.6
40 36
50
30
40
20 30
20
10 Time Spent Pages
(in billion 10 viewed (in
0 minutes) billion)
0
Jan-11 Jan-12
Jan-11 Jan-12
The time spent has The consumption of content
increased by 33% online has grown up by 28%
11. Online Users: A Demographic
Study
Demographic Profile of online Users (July’12)
25
23.7
21.9
20
15.3
15 13.7
9.7
10
6.5 Percentage of female
users
5 3.6
2.4
1.3 1.8
Percentage of male users
0
15-24 25-34 35-44 45-54 55 +
Around 75% Online users are the age
group ranging from 15-34 years.
12. Retail: A Closer Look
Unique visitors in retail (in million)
40 37.5
35 33.3
30 29
27.6
26.1
25
20
15
10
5
0 Unique visitors
Nov-11
Dec-11
Jan-12
May-12
Aug-11
Sep-11
Mar-12
Apr-12
Oct-11
Feb-12
Jul-11
Jul-12
Jun-12
(in million)
Retail category penetration has increased by
~45% within 1 year and has grown to 37.5
million unique visitors a month.
13. Retail: A Closer Look
% Reach in July 2012
Homeshop 18 6.5
Myntra 8.5
Jabong 8.6
Snapdeal 11.1
Flipkart 11.5
Amazon 15.4
% Reach in July 2012
0 5 10 15 20
Amazon is the most visited
retail site.
15. Payment Type Classification
Indian Payment Type Transaction Average transaction size (in $) by
Share (in %) payment type
Visa 48
2
7
MasterCard 47
12
Cash/COD 33
Direct
JCB 21
debit
Visa American… 110
58
21
Mastercar Direct Debit 20
d
Cash/COD PayPal 178 Average
All others All other 43 transaction
size (in $)
0 50 100 150 200
Debit card is the most The average transaction
commonly used payment type. size in India is $ 31.
16. Growth Drivers of E-Retailing
Internet penetration, the use of
broadband
Active participation by global
and local
E-Commerce players
Consumers: More willing to
experiment with new forms of
retail purchase
Convenience, speed and 24x7
accessibility
17. Integrated Multichannel Retail
Model
Channel Assortment
Planning
Content Management
Fulfillment Support
Marketing and Promotion
Brand Connect
18. Impact of FDI on E-Retailing
Category Example Impact
Foreign sites operating Amazon.com, No impact unless they
outside Indian shores eBay.com want to set up venture
in India
Foreign sites operating Expedia.com As usual since they
in India but only lists don’t have any
products inventory
Indian sites Flipkart.com Will come under FDI
Snapdeal.com rule if they want to get
foreign investment
Single brand portals Dell.com No impact(FDI rules are
HCLStore.in for Multi-brand
retailing)
B2B portals Indiamart.com Huge impact because
they are allowed for
100% FDI
19. Conclusion
Indian Retail: Tremendous potential of
1.21 billion population
The emergence of digital channel can
augment the benefit of retailer-customer
relation
A shift towards e-retailing is relatively
elastic with the profitability of the
retailers
Retailer-FMCG collaboration is needed for
the desired outcome
20. References
1. ASSOCHAM Report (Comscore)
2. PWC Report (Winning in India’s Retail Sector)
3. FICCI Report on E-Retailing
