With 20% of the Indians connected over internet and Smartphones, there has not been a more exciting and challenging time in the history of Indian retail. Consumer is moving ahead of time and with multiple avenues of shopping - be it online, social or mobile - customers have been spoilt for choice. With millions of Indian buying online and billions of $ of investment pumped in, pure play online retail companies are changing the retail game! An industry which was not even existing 5 years back will clock $4 Billion revenues by end of 2014!

1. THE ECOMMERCE GOLD RUSH IN INDIAAshwin Krishnaashwin.arya@gmail.com

2. Trivia: What’s happening here?

3. Everything is sold online from Prasad to…

4. FREE SHIPPING! Buffalo err… to

5. Houses to…

6. sexual wellness products…

7. Started in 2010
Valuation: $2 Billion
Started in 2007
Valuation: $7 Billion
TALE OF TWO BILLION $ STARTUPS AND AMAZONTotal investments in Online Retail (including other players) > $4 BillionStarted in 2013Announced $2 Billion investmentGMV –$1.5 Billion (2014) GMV –$750 Million (2014)
GMV –$1 Billion (2014)
Source: Various news sites

8. THE INTERNET JUGGERNAUT100120
150
2102703301837.257.6
79.2
102
12620112012
2013
201420152016
No of internet users No of ECommerce users Source: Accel, Internet and Mobile Association of India Reports(in millions) MetrosRest of India(Tier 2,3,4 Cities) 40%
60%
2013 Internet user base split
68%
54%45% 39% 32% 46%55% 61% 2011
2012
2013
2014MobileDesktopInternet usage by devices25%

9. 120 Million2014380 Million2016Smartphone users ONE THING WHICH WILL CHANGE THE FUTURESource: Accel, Internet and Mobile Association of India ReportsSearch Shopping Comparison Communication NetworkingTravel planningGamesMoviesNewsCommunication

10. 110135
175
No of Facebook users (in millions) 20142015
2016
THE VIRTUAL WORLD BECKONS
Source: Accel, Internet and Mobile Association of India Reports

11. Advertising spend (in INR Billions) Source: Accel, KPMG Reports DIGITAL AD SPEND IN INDIA

12. Drivers of growthInfrastructure DevelopmentSmartphone PenetrationPayments Best Prices available online ConvenienceValue Prop for customersSHOW ME THE MONEY, HONEY! Source: Accel, KPMG Reports 2014
2018$11 Billion$ 43 BillionSource: Nomura Research, November 2014$3 Billion
$8 Billion
$ 13 Billion
$ 30 BillionProduct eCommerceTravel and OtherseCommerce Sales (In Billion $)

13. EVOLUTION
Infrastructure
Demand
Payments
Investment
Talent
Train, Airline, Movie TicketsBooks, Electronics, CouponsLifestyleFurniture, Jewellery, Homes! More than 50 companies were started and many got busted in 2 years AcquisitionsInventory-led to marketplaceWe are here

14. OPPORTUNITY ASSESMENT
Online buyers profile
Mobile CommerceWomen Influenced GMV$4.2 Bn / 24XSource: Accel Reports >50% transactionsfor Top 3 eCommerce companies

15. 399 490.77 201420152016Number of Debit Card users in India(In millions) 45% of Indians
584.02
PAYMENTS LANDSCAPE
With the increasing digital payments penetration, the share of COD shipments is reducing
With increasing order values, we are seeing an uptick of EMI payments
3rd party wallets albeit a new phenomenon, have a strong value proposition and will be quick to become popular –similar to China
By 2016, half of Indians will have debit card! Online Retail payments in IndiaSource: RBI Website and Accel Reports

16. ONLINE RETAIL-CATEGORY WISE BREAKUP 4%2% Source: Accel Reports

17. Buy
WarehouseLogistics for deliveryE-Commerce Platform (Web and Mobile) Payment integration
THE TWO SIDED BUSINESS MODELSupply
Demand
Widest Selection
Great Shopping Experience
Pricing (Its not about discounts alone)
Critical Success Factors

18. Anywhere, Anytime, Any ChannelResearch Online using SmartphonesProduct reviews in Social MediaComparison shopping across sitesBuy Online or in storeCONSUMERS EXPECT ALL TO ALL EXPERIENCE

19. Product TeamMarketing TeamTechnology TeamSeller ManagementCustomer Servicing Team
Logistics
Team Finance and Strategy
Happy customersConvert Visitors and provide great ExperienceError free, scalable platformGain new consumers and retain old onesCash FlowsFund raising Deliver on/before timeBest SelectionTHE A-TEAM

20. EVERYONE WANTS A SHARE OF PIE

21. ECOSYSTEM PLAYERSTravelJobsMatchmakingTransport
RechargeTicketing
Local MarketplacesFashionVertical PlayersReal Estate

22. PlatformsPaymentsBanksLogistics
CompairsionRetailerseCommerce PlatformServicingTools
Digital Marketing
Design
Consulting
Photography
Data Entry
ECOSYSTEM PLAYERS

23. BUSINESS METRICSCustomer acquisition costConversion RateAverage Order Value Customer Churn % On-Time Delivery Completion Cash-conversion cycle and return on capitalProduct + Marketing + Category Customer Lifetime Value
Marketing OperationsFinance

25. Seller / Supply SideMarketing
Product and Technology
Operations and Fulfilment
Strategy and Finance
•Business Development
•Category Management
•Onboading
•Training
•Account Management
•Alliances
•Digital Marketing - SEO, PPC, Social
•ATL, BTL
•Analytics
•PR and Communication
•Brand Management
•Forecasting
•Product Management
•Program Management
•Analytics
•Supply chain
•Warehousing
•Logistics
•Customer Service
•Planning and forecasting
•Fund Raising
•Cash flow management
WHAT ARE THE OPPORTUNITIES? Great Entrepreneurial opportunities in making the ecosystem robust –increasing retention, increasing logistics efficiency, analytics etc

26. THE PIONEERS

27. CONCERNS AND FUTUREInfrastructureDemandPayments Investment TalentTrain, Airline, Movie TicketsBooks, Electronics, CouponsLifestyle
Furniture, Jewellery, Homes!
More than 50 companies were started and many got busted in 2 years
Acquisitions
Inventory-led to marketplaceWe are here
Profitability
Consolidation
Top horizontal players
Few niche players with unique selection
Focus from discounting to customer experience
Customer acquisition to retention
Focus from GMV to Profitability

28. Ashwin Krishnaashwin.arya@gmail.comThank You