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Ecommerce Master Class.
Ecommerce Master Class ::
Main Index.
1.Ecommerce---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3
1.a. Introduction to Ecommerce------------------------------------------------------------------------------------------------------------------------------------------------------------------------4
1.b. Ecommerce Business Models ------------------------------------------------------------------------------------------------------------------------------------------------------------------13
1.c. Ecommerce in India -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------23
1.d. Ecosystem -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------28
2.Online Retail -----------------------------------------------------------------------------------------------------------------------------------------------------------54
2.a. Introduction to Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------------55
2.b. Online Retail in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------60
2.c. Current Retail Industry in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------80
2.d. Online Retail in India ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------85
2.e. Online Retail Market Size ------------------------------------------------------------------------------------------------------------------------------------------------------------------------90
2.f. Challenges in Pure-Play Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------97
3.Online Retail Operations -------------------------------------------------------------------------------------------------------------------------------------------103
3.a. Building blocks of Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------104
3.b. Technology ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------105
3.c. Content & Imaging -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------128
3.d. Online Marketing ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------146
3.e. Fulfillment ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------171
3.f. Customer Support --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------187
4. Key Lessons ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------219
5. Looking Ahead -----------------------------------------------------------------------------------------------------------------------------------------------------194
5.a. M Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------195
5.b. T-Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------208
5.c. Social Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------215
5.d. Innovations----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------216
DAY 1
DAY 2
Ecommerce.
Ecommerce Master Class :: Ecommerce ::
Index.
1.a. Introduction to Ecommerce.
a. Ecommerce Definition.
b. Defining years of Ecommerce.
c. Parts of Ecommerce.
d. Advantages & Challenges of Ecommerce.
e. Effect on purchasing decision.
f. Successful Ecommerce Companies.
g. Successful Ecommerce People..
Ecommerce :: Introduction to Ecommerce ::
Ecommerce Definition.
“Ecommerce, which is short for electronic commerce, is the process used to
distribute, buy, sell or market goods and services, and the transfer of funds
online, through electronic communications or networks”
Source : Wikipedia
Electronic commerce is commonly referred to as Online commerce, Web commerce,
eBusiness, eRetail, eTailing, Ecommerce, ecom or EC
Ecommerce :: Introduction to Ecommerce ::
Defining years of Ecommerce.
Chronology of US Ecommerce.
Source : Wikipedia
1979
• Online
Shopping
Michael Aldrich
1981
• UK’s First B2B
online shopping
Thomson Holidays
1984
• First B2C online
shopping
Gateshead SIS/Tesco
1990
• World Wide
Web
Tim Berners-Lee
1994
• Netscape
releases the
Mozilla browser.
• Bezos launches
Amazon.com.
• eBay is founded
1998
Alibaba Group
is established
in China. And
it leverage
China's B2B
and C2C,
B2C(Taobao)
market.
1999
• Business.com
sold for US $7.5
million .
• Napster launches.
In 1979 he
invented online
shopping to enable
online transaction
processing
between
consumers and
businesses, or
between one
business &
another, a
technique known
later as e-
commerce.
The first business-
to-business (B2B)
computer network
was created by
Thomson Holidays
in 1981
10 Jan 1984
Gateshead
SIS/Tesco is first
B2C online
shopping.
Mrs Snowball, 72,
is the first online
home shopper.
He implemented
the first
successful
communication
between
a Hypertext
Transfer
Protocol (HTTP)
client
and server via the
Internet
Jerry Yang and
David Filo
publish "Jerry's
Guide to the
World Wide
Web" online,
which will evolve
into Yahoo. The
first version of
Netscape
Navigator is also
released.
The company, is
engaged in the
provision of
software,
technology and
other services on
the online
business-to-
business (B2B)
marketplaces.
It was originally
founded as a
pioneering peer-to-
peer file
sharing Internet
service that
emphasized sharing
audio files, typically
music, encoded
in MP3 format. The
original company ran
into legal difficulties
over copyright issues
Ecommerce :: Introduction to Ecommerce ::
Defining years of Ecommerce.
2000
• The dot-com
bust.
.
2002
• eBay
acquires
PayPal for
$1.5 billion.
• Niche retail
companies
Wayfair and
Netshops are
founded.
2009
• Zappos.com
acquired by
Amazon.com for
$928 million.
• RueLaLa.com,
acquired by GSI
Commerce for
$180 million.
2010
• Groupon
reportedly
rejects a $6
billion offer
from Google.
2011
• US eCommerce and Online Retail sales
projected to reach $197 billion.
• Diapers.com acquired by Amazon.com
• GSI Commerce, acquired by eBay for
$2.4 billion.
Chronology of US Ecommerce.
Source : Wikipedia
By 2001 the bubble was
deflating at full speed. A
majority of the dot-coms
ceased trading after
burning through
their venture capital, many
having never made a
″net″ profit. Investors often
referred to these failed
dot-coms as "dot-bombs
PayPal is an
American-based
global e-
commerce business
allowing payments
and money transfers
to be made through
the Internet. Online
money transfers
serve as electronic
alternatives to
paying with
traditional paper
methods, such as
checks and money
orders.
In July 2009, the
company announced it
would be acquired
by Amazon.com in an
all-stock deal worth
about $1.2 billion.
Since its founding in
1999, Zappos has grown
to be the largest online
shoe store
Groupon is a deal-of-
the-day website that
features discounted
gift certificates usable
at local or national
companies.
As of October 2010,
Groupon serves more
than 150 markets in
North America and
100 markets in
Europe, Asia and
South America and
has amassed 35
million registered
users
In late 2008, Today, Diapers.com is the largest
pure play retailer online for everything baby.
Diapers.com expanded its selection into far-
reaching baby categories, including
clothes, car seats, strollers, and toys.
GSI Commerce is an eBay company specializing
in creating, developing and running online
shopping sites for brick and mortar brands and
retailers.
Ecommerce :: Introduction to Ecommerce ::
The parts of E-Commerce.
Online
Travel
Online
Retail
Digital
Downloads
Other
Online
Services
Financial
Services
Ecommerce :: Introduction to Ecommerce ::
Advantages & Challenges of Ecommerce.
Advantages
• Being able to conduct business 24 x 7 x 365
• Access the global marketplace
• Opportunity to reduce costs by cutting intermediaries.
• Very easy access to information
• Speed of Doing Business
• Challenges
• System And Data Integrity Issues
• Physical product, supplier & delivery uncertainty
• Limited and selected sensory information ( Touch and Feel )
• Online Frauds.
Ecommerce :: Introduction to Ecommerce ::
Effects on Purchase Decision.
Store 1
Store 2 Store 1
Store 1
Store 2
Search
Engines
Targeted Ads
Store 1 Online
Website
Store 1 Online
Website
Purchase Decisions have got very informative but very
complicated for retailers.
Ecommerce :: Introduction to Ecommerce ::
Successful Ecommerce Companies.
and many more….
YOU COULD BE ONE !!!
Ecommerce :: Introduction to Ecommerce ::
Successful Ecommerce People.
Larry Page
Google
Sergey Brin
Google
Jeff Bezos
Amazon
Pierre Omidyar
Ebay
Eric Schmidt
Google
Ronald Burkle
Yahoo
Mark Cuban
Broadcast.com
Jerry Yang
Yahoo
Omid Kordestani
Google
David Filo
Yahoo
Ram Shriram
Google
Todd Wagner
Broadcast.com
Peter Thiel
Paypal
Niklas Zennstrom
Skype
Janus Friis
Skype
Jack Ma
Alibaba.com
Mark Zuckerberg
Facebook
Simon Nixon
MoneySupermarket
Andrew Gower
Runescape
Reid Hoffman
LinkedIn
Zhang Chaoyang
Sohu
Steve Chen
Youtube
Elon Musk
Paypal
Chad Hurley
Youtube
Duncan Cameron
MoneySupermarket
Marc Andreesen
Netscape
You can be one of them.
YOU COULD
BE ONE !!!!
Ecommerce :: Ecommerce Business models
Ecommerce Master Class :: Ecommerce ::
Index.
1.b. Ecommerce Business Models
a. Internet Business Models.
b. Business Models in Ecommerce
c. Business Models Explained - B2B, B2C, C2C, C2B, G2C
d. Case Study : Industry Structure.
Ecommerce :: Ecommerce Business models ::
Internet Business Models.
Brokerage
Model
Advertising
Model
Infomediary
Model
Merchant
Model
Manufacturer
Model
Affiliate
Model
Community
Model
Subscription
Model
Utility Model
Business-to-business (B2B)
In this segment, companies
conduct business with each other
such as manufacturers selling to
distributors and wholesalers
selling to retailers.
Ecommerce :: Ecommerce Business models ::
Business models in ecommerce.
Business-to-consumer (B2C)
Here, businesses selling to the
general public typically through
catalogs utilizing shopping cart
software.
Consumer-to-consumer (C2C)
Here, websites offer free
classifieds, auctions, and forums
where individuals can buy and
sell thanks to online payment
systems.
Government to Citizen
This comprises G2G (Government-to-
Government), G2E (Government-to-Employee),
G2B (Government-to-Business), B2G (Business-
to-Government),G2C (Government-to-Citizen),
C2G (Citizen-to-Government) are other forms of
ecommerce that involve transactions with the
government from procurement to filing taxes to
business registrations to renewing licenses.
Consumer to Business (C2B )
In this case, a consumer posts his project
with a set budget online and within hours
companies review the consumer's
requirements and bid on the project.
The consumer reviews the bids and selects
the company that will complete the project.
Business-to-business (B2B)
In this segment, companies conduct
business with each other such as
manufacturers selling to distributors
and wholesalers selling to retailers.
Ecommerce :: Ecommerce Business models ::
Business models explained. B2B.
•Alibaba.com is the world's largest online business-to-business trading platform for small
businesses.
•The company was founded by Jack Ma and 18 people in 1999.
• It claims it had more than 65 million registered users in more than 240 countries and
regions as of March 31, 2011.
•The company‟s serves to bring together importers and exporters from more than 240
countries and regions.
•IndiaMART.com is India's largest online B2B marketplace for Small & Medium Size
Businesses, connecting global buyers with suppliers.
•The company offers a platform & tools to over 1 million suppliers to generate business
leads from over 5 million buyers, who use the platform to find reliable & competitive
suppliers.
•The company has over 4500 employees located across 90 offices in the country.
Business-to-consumer (B2C)
Here, businesses selling to the general
public typically through Catalogs
utilizing shopping cart software.
Ecommerce :: Ecommerce Business models ::
Business models explained . B2C.
• Diapers.com, founded in 2005 by Marc Lore and Vinit Bharara.
• It is the largest online specialty retailer for baby products.
• Delivers consumables, such as diapers, wipes, and formula, to parents with free 1-2
day shipping and a focus on customer service.
• In late 2008, Diapers.com expanded its selection into baby clothes, car seats, strollers,
and toys.
•Today, Diapers.com is the largest pure play retailer online for everything baby.
• Flipkart.com is among India‟s largest online retailers.
• Established in 2007 by Sachin and Binny Bansal, it is among India‟s largest eRetailers.
• Started as an online bookstore, but has since diversified into media, consumer
electronics, computers, healthcare and home appliances.
Consumer-to-consumer (C2C)
Here, websites offer free classifieds,
auctions, and forums where individuals
can buy and sell thanks to online
payment systems.
Ecommerce :: Ecommerce Business models ::
Business models explained . C2C.
•eBay.com is an American internet consumer-to-consumer corporation .
• It manages an online auction and shopping website in which people and
businesses buy and sell a broad variety of goods and services worldwide.
•Founded in 1995, eBay is now a multi-billion dollar business with operations
localized in over thirty countries.
Government to Citizen
This comprises G2G (Government-to-
Government), G2E (Government-to-
Employee), G2B (Government-to-
Business), B2G (Business-to-
Government),G2C (Government-to-
Citizen), C2G (Citizen-to-Government)
are other forms of ecommerce that
involve transactions with the
government from procurement to filing
taxes to business registrations to
renewing licenses.
Ecommerce :: Ecommerce Business models ::
Business models explained . G2C.
•Whatever you want or need from the U.S. government, it's available
on USA.gov.
•Electronic filing of Income tax return and Fringe Benefit tax Return
•Know your PAN-Enables a tax payer to ascertain his PAN
•Bulk PAN Query-Enables registered institutions to query PAN in batch mode
•Registration of e-Return Intermediaries
•Refund status query
Consumer to Business (C2B )
In this case, a consumer posts his
project with a set budget online and
within hours companies review the
consumer's requirements and bid on
the project.
The consumer reviews the bids and
selects the company that will complete
the project.
Ecommerce :: Ecommerce Business models ::
Business models explained . C2B.
•Elance is a global Internet platform where businesses hire independent freelance
professionals.
•Freelance professionals create online profiles and portfolios, submit proposals for jobs
that interest them, and manage both work and receive payment through the site.
•ApnaPaisa value proposition for consumers is their comprehensive customized
comparison quotes, which are rendered in simple, user-friendly and appealing manner.
•Consumers save time as they get a one-stop shop for researching, comparing and
buying online from or contacting the service providers for virtually all the products in the
market.
Industry Structure in Online Retail
Michael Porter
Ecommerce :: Ecommerce Business models ::
Case Study.
Ecommerce :: Ecommerce Business models :: Case Study ::
Porter analysis on Internet Industries.
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The game lies in understanding the threats of – & leveraging the + „.- +
Ecommerce :: Ecommerce Business models :: Case Study ::
Case Study: Indian Market
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Market Leadership has
been changing with new
formats and players
Travel is a Classical
Case in Indian Market
Indian Internet
Consumers shifted the
online proposition to
Price. LTV management
has been a Serious
Challenge
IndiatimesShopping to
Fabmall to Flipkart to
????
Web Only Brands have
been born in India as its
easier to reach out to
customers
Smaller Brands would
find it lucrative
The game lies in understanding the threats of – & leveraging the + „.- +
Ecommerce :: Ecommerce in India
Ecommerce Master Class :: Ecommerce ::
Index.
1.c. Ecommerce in India.
a. Evolution of Indian Ecommerce Industry.
b. A Typical Day in a Heavy Internet Users life in India.
c. The Current Ecosystem.
Ecommerce :: Ecommerce in India ::
Evolution of Indian Internet & Ecommerce Industry.
1995
VSNL introduces
internet in India
via dialup in 6
cities on Aug
14,1995
1996
• Rediff.com launched
by Ajit Balakrishnan.
• India‟s first cyber café
called “Cybercafé”
launched in a
Mumbai hotel
1997
• First online banking
site launched by
ICICI Bank.
• Naukri.com
launched
• Sabeer Bhatia‟s
Hotmail sold to
Microsoft for $400
million in USA.
1998
• VSNL‟s monopoly on
internet ends
• Sify becomes India‟s
first ISP
• Launch of Nasscom by
Dewang Mehta, a
chartered accountant
by profession to
promote IT industry
• Cybercafés start
mushrooming
1999
• Indiaworld sold
to SIFY for $115
million
• Webdunia,
India‟s first and
most successful
Hindi portal
launched
2000
• IT ACT 2000 passed
by the Indian Govt.
• Baazee.com
launched based on
the EBay model.
• Indya.com launched
with Rs 4.5 crore
campaign blitz
• Yahoo & MSN launch
Indian sites
Source : Wikipedia
Rediff.com
India (NASDAQ: REDF)
is a news, information,
entertainment, and
shopping portal. It was
founded in 1996
Ajit Balakrishnan,
Chairman and CEO of
Rediff.com
Naukri.com is a job site
operating
in India founded by
Sanjeev Bikhchandani
in March 1997
Hotmail service was
founded by Sabeer
Bhatia and Manojit Rout.
The name "Hotmail" was
chosen out of many
possibilities ending in "-
mail" as it included the
letters HTML ("HoTMaiL).
Sify Technologies
Limited (formerly Sify
Limited and Satyam
Infoway Limited)
(NASDAQ: SIFY) is an
Indian broadband internet
provider established in
1998, based
in Chennai, India
Webdunia.com is a
Hindi News Website
which provides variety
of news in hindi from
India and International
news, it has top
stories on business,
bollywood gossip,
sports updates
Baazee.com was an
online marketplace
started by Avnish
bajaj on the lines on
ebay.com in the US.
Ebay eventually
bought over the
company in 2004.
Tata
Communications
Limited (formerly
VSNL), is
a telecommunicati
ons
company located
in Mumbai.
Ecommerce :: Ecommerce in India ::
Evolution of Indian Internet & Ecommerce Industry.
2001
• Indian Railways
launches online
ticketing site,
irctc.com
• India‟s first cyber
crime police station
opens in Bangalore
2002
• HomeTrade
fiasco– brokerage
site launched with
Rs 65 crore blitz
goes bust
.
2003
• AirDeccan
becomes first
airlines to offer
online ticketing in
India.
2004
• EBay buys out
Baazee.com &
Monster.com buys
Jobsahead.com
• First Indian Dotcoms
IPOs are successful–
indiabulls.com &
indiainfoline.com
Source : Wikipedia
Indian Railway
Catering and
Tourism
Corporation (IRCT
C) is a subsidiary
of the Indian
Railways that
handles the
catering, tourism
and online
ticketing
operations of the
railways.
Home trade modus
operandi was really
oversimplified. It
claimed to be a
professed fresh dealing
in governing securities
(Gilts) and would
attractiveness the
generalized
unrestricted, brokers,
sub-brokers dealing in
Gilts.
But the polity securities
never existed.
Air Deccan, is a low-
cost airline brand. It is
headquartered
in Mumbai, India
It was started by
Captain G. R.
Gopinath
Air Deccan was the
first airline in India to
fly to second tier cities
Indiabulls is an Indian
company with its
presence in the Real
Estate, Infrastructure,
Financial Services,
Securities, Retail,
Multiplex and Power
sectors.
CarWale.com services
include new car
research, on-road price
of new cars, used car
valuation guide and used
car classifieds. CarWale
also facilitates new car
sale through tie-
ups with manufacturers,
dealers, financiers and in
surance firms.
2005
• CarWale.is
founded by Mohit
Dubey and his
three friends in
October 2005
2006
• BookMyShow
Launched in Aug
2006
Bookmyshow.com
provides cinemas,
event organizers and
consumers a complete
range of solutions
through call centers,
Internet ticketing, kiosk
and a mobile ticketing
platform.
One of the major
movie & events ticket
seller in India.
Ecommerce :: Ecommerce in India ::
Evolution of Indian Ecommerce Industry.
2007
• Flipkart went live
in 2007 with the
objective of
making books
easily available to
anyone who had
internet access
.
2009
• Fashion and You is
a private invitation
only shopping club,
based in Gurgaon,
India
Source : Wikipedia
2012
• PepperFry, the
eCommerce startup
from the ex-Ebay
heads, Ambreesh
Murty and Ashish
Shah, has gone live
Flipkart is among
India‟s largest online
retailers. It is
an electronic
commerce company
headquartered
in Bangalore,
Established in 2007 by
Sachin and Binny
Bansal, Flipkart started
as an online bookstore,
but has since
diversified into media,
consumer electronics,
computers, healthcare
and home appliances.
It was founded
by Harish Bahl and
Pearl Uppal in
November, 2009
Fashion and You is a
private invitation only
shopping club featuring
collections by top
designers for men,
women and children
2010
• Snapdeal
launches.
Company was
founded by Kunal
Bahl and Rohit
Bansal.
Snapdeal is a daily
deals' website that
features discount
offers across
lifestyle segments
such as dining,
health & beauty,
entertainment and
travel. It also offers
discounts on
products like
electronics,
perfumes, watches,
bags, sunglasses
and mobiles.
2008
• HomeShop 18
launches on 9
April 2008
HomeShop18 is the
online & on-air
retail marketing and
distribution venture
of Network 18
Group that was
launched as India‟s
first 24 hour Home
Shopping TV
channel on 9 April
2008. It is part of
the Network 18
Group.
Pepperfry focuses
on Lifestyle
segment that do not
have an organized
market
or standardized pro
ducts.
The site currently
hosts products in
personal accessorie
s and
clothing, jewellery
and furniture
categories.
2011
• Zovi.com launches
ZOVI.com is an
apparel brand
available exclusively
online. Zovi sells
premium apparel
designed with top-
notch components to
our customers
across men's and
women's categories.
Ecommerce :: Ecommerce in India ::
A Typical Day in a Heavy Internet Users life in India.
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India ::
The Current Internet Ecosystem.
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::
Internet Penetration.
•80 million users, a long way to go
•There are an estimated 80 million Internet users in India today
• It represents only a penetration of 7% of the population (17%
of urban population).
•This is significantly lower than global benchmarks (average
31% of total population).
Source : „India Goes Digital‟ - Avendus
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::
Internet Users in India
•One report has suggested 70 million.
•Google put out a number of a 100 million sometime back.
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Access ::
Sources of Growth.
•Number of PCs is not a constraint
•Broadband availability and cost are the major
constraints.
•PC broadband penetration to reach 15.6% of
households by 2015.
•Mobile broadband to be the primary driver of overall
Internet penetration - 3G to reach 22% of the population
by 2015
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem ::
Demographics.
Tier I cities dominate, but penetration increasing fast
across tier II/III cities and towns
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics ::
User profile and how it has changed over time.
Source : „India Goes Digital‟ - Avendus
Younger consumers driving growth & the number of Internet savvy people in
higher age groups will continue to rise - improving the potential for commerce.
Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics ::
Customer Classification.
Source : IAMAI
Significant growth of internet in the middle income class,
thus making internet more broad based..
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem ::
Government Actions in ecommerce.
•25% of income tax filings are now online
•UIDs and the impact on electronic payments
Source : „India Goes Digital‟ - Avendus
Government Initiatives driving penetration as well
as helping build trustworthy cyber environment . Cyber Crime,
Online Payment Security and stronger consumer forums could help further
Ecommerce :: Ecommerce in India :: Ecosystem ::
Venture Capital Action in ecommerce.
•Growing entrepreneurship
•Improved support systems
•A whole lot of money
Source : „India Goes Digital‟ - Avendus
There has been growth in entrepreneurship and investments have followed
Ecommerce :: Ecommerce in India :: Ecosystem ::
Online advertising market in India.
Online Advertising eco-system is developing but a long way to go
Source : Pitch-Madison Media Outlook 2011
Ecommerce :: Ecommerce in India :: Ecosystem ::
Payment Credit and Debit Cards.
• Credit card penetration in India has actually
seen a decline of late.
•This is due to the tightening of norms by
banks for the issue of credit cards, after
delinquency rates shot up in 2009.
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues ::
Cash On Delivery. COD.
The Indian Innovation.
•Eliminates consumer drop-offs which occur due to “LACK of TRUST”
•Mitigates the primary disadvantage of e-commerce - „lack of touch
and feel‟.
•Transfers the risk from the consumer to the supplier. I think Indian
ecommerce needs this to develop confidence in ecommerce
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues ::
Online Payment Facilitators in India.
Source : „India Goes Digital‟ - Avendus
Indian market has a strong appetite for new and innovative
Payment Systems.
Ecommerce :: Ecommerce in India :: Ecosystem ::
Ecommerce Supply Chain & Delivery.
Ecommerce Industry due to its need to keep large assortment and
multipoint delivery
makes supply chain and logistics very challenging and different for retail
Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::
Comparison of different supply chain & Logistics options.
Source : „India Goes Digital‟ – Avendus
Supply Chain & Logistics
Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::
Delivery Examples.
Delivery is becoming a differentiator in Indian Market.
Supply Chain & Logistics
Source : „India Goes Digital‟ - Avendus
Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain ::
Owned vs. Outsourced delivery.
In the short to medium term, it seems increasingly likely that e-commerce companies will
follow a two-pronged strategy:
A ) Developing their own delivery channel for the metros.
B) Relying on outsourced parties for tier 2 and 3 cities where they are subscale.
Supply Chain & Logistics
Source : „India Goes Digital‟ - Avendus
Source : „India Goes Digital‟ - Avendus
Online Retail
Ecommerce Master Class :: Online Retail ::
Index.
2.a. Introduction to Online Retail.
a. What is Online Retail
b. Why Online Retail
Online Retail :: Introduction ::
What is Online Retail
Online Retail is a form of electronic commerce whereby consumers directly buy
goods or services from a seller over the Internet without an intermediary service.
Source : Wikipedia
An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or
virtual store evokes the physical analogy of buying products or services at
a bricks-and-mortar retailer or shopping centre. The process is also called
business-to-consumer (B2C) online shopping.
Online Retail :: Introduction ::
Why E-Retail: The Reasons remain the same over years
E retail Consumer Value Proposition.
Online Retail :: Online Retail in USA
Ecommerce Master Class :: Online Retail ::
Index.
2.b. Online Retail in USA
a. History of Online Retail US
b. Proposition of Online Retail in US.
c. Share of Revenues by Segments : US
d. The Growth & Share story.
e. Challenges faced initially by US. brick n mortar stores on Online medium.
f. Top US. E-Retailers by revenues
g. Retailers entering online space.
h. Managed Services Companies.
i. Case Study : Walmart Vs Amazon
j. Current Retail Industry in USA some trends
k. Top US Failures & Learning.
Online Retail :: Online Retail in USA :: History of Online Retail US. ::
Online Retail boom started in 1994 in US.
2
41.6 %
17
6.0 %
18
16.0 %
29
5.6 %
118
4.9 %
24
8.9 %
20
8.4 %
57
11.6 %
53
7.8 %
Source: Internet Retailer „10
Launched macys.com in 1997.
Launched jcpenney.com in 1994.
Launched gap.com in 1997. Launched toysRus.com in 1998.
Starts victoriassecret.com in 1995.
Launched staples.com in 1997.Launched ae.com in 1998.Launched staples.com in 1996.
Launched staples.com in 1998.
WEB SALES AS A % OF TOTAL SALES
INTERNET RETAILER TOP 500 RANKING
Within 4 years all major stores went online.
Convenience
Hard To Find
Price
Online Retail :: Online Retail in USA ::
Proposition of Online Retail in US.
Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Convenience : The Consumer Proposition
Convenience
Books, Music,
Movies,….
Sit @ Home
and Get it
Selection
Deep
Research
Value Proposition , Categories and Formats.
Hard to Find
Antiques, Coins,
Radio Controlled
Toys ….
C2C Commerce
Cannot get it
Anywhere Get it
here
Local became
National with
second hand goods
Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Hard to Find: The Consumer Proposition.
Value Proposition , Categories and Formats.
Inventory Clearance
Discount
Price
Electronics,
Computers,
Price Discovery
Auction, Volume
Aggregation
Online Retail :: Online Retail in USA :: Proposition of Online Retail in US ::
Price: The Consumer Proposition.
Value Proposition , Categories and Formats.
Online Retail :: Online Retail in USA ::
Share of revenues by Segments. US
Mass merchant does not include marketplaces like ebay.com
Online Retail :: Online Retail in USA :: Share of revenues by Category. US ::
Detailed Category Division. US.
Source: Internet Retailer.US 2011
Online Retail :: Online Retail in USA ::
The Growth and Share Story…..
“Lets hold the plans to open another two retail stores, lets invest
the same capital to build a online web store for „GLOBAL‟ sales”
…a top US offline store.
Online Retail :: Online Retail in USA ::
Challenges faced initially by US. brick n mortar stores on Online medium???
How will we
reserve
Inventory ?
How do we plan
Supply for our store
plus online ?
We have no idea
about Online
Technologies !
How will we
Integrate with
our ERP ?
We don‟t have a
Online Merchandising
Plan !
What is
Online
Marketing ? How do we ship
Individual Orders?
How do we
Manage Returns?
Does it seem like a same story everywhere ?
Online Retail :: Online Retail in USA ::
Top US. E-Retailers by revenues.
Online Sales: $34,200,000,000
2010 Growth: 39.5%
Online Sales: $2,500,000,000
2010 Growth: 8.7%
Online Sales: $4,095,000,000
2010 Growth: 17.0%
Source: Internet Retailer US
Online Retail :: Online Retail in USA ::
Retailers entering online space and dominating the online retail space.
But Amazon still remains the market leader….
Source: Internet Retailer US
Online Retail :: Online Retail in USA :: Managed Ecommerce Solutions ::
A Lot of Retailers opted with outsourcing it to Managed Service Companies
A lot of retailers opted to outsource the area of non competence
and left it to specialist
GSI Commerce® is a leading
provider of ecommerce and
interactive marketing services
for the world‟s premier brands
and retailers.
Retail versus Online Retail.
Online Retail :: Online Retail in USA ::
Case Study.
Walmart. vs Amazon.
Round 1. Market Performance.
Walmart. vs Amazon.
Round 2. Products & Prices.
Food For thought
If the cost of monthly shipment and cost of trips to retail shops equals Amazon
would always be cheaper and occupy the pricing proposition completely
Walmart. vs Amazon.
Round 3. Brand Performance.
Amazon by proving higher brand ranking and customer service has proven that
this model can deliver to consumer expectations
Walmart. vs Amazon.
Round 4. Expansion & Innovation.
Walmart. vs Amazon.
Projected Revenue.
Key Take Away
•Amazon is projected to surpass
Wal-Mart in sales revenues in the
year 2024.
Online Retail :: Online Retail in USA :: Trends to Watch for ::
Research it Anywhere, Buy it Anywhere Get it Anywhere…..
“Multichannel is the New Reality”
A few category retailers in US. shut down stores as
unable to compete with online retailers & competitors.
Online Retail :: Online Retail in USA :: Trends to Watch for ::
E Retailer have affected a few industry very hard…..
Online Retail :: Online Retail in USA :: Top US eRetail Failures ::
Top US. eRetail Failures and Learning
Webvan (1999-2001)
Pets.com (1998-2000)
Ideas that could not sustain the dot com burst.
Pets.com : Online Pets Store
•Pets.com was never able to give pet owners a compelling reason to buy supplies online.
•When you need kitty litter, you need kitty litter.
“TIMELY FULFILLMENT IS CRUCIAL in some Categories and is the Key Value”.
Webvan.com : Online Grocery: To Fast To Soon.
•In a mere 18 months, it raised $375 million in an IPO,
•expanded from the San Francisco Bay Area to eight U.S. cities,
•Building a $1 billion high-tech warehouses. Webvan touted a 26-city expansion plan.
•But considering that the grocery business has razor-thin margins to begin with, it was never able to attract
enough customers to justify its spending spree.
•The company closed in July 2001, putting 2,000 out of work.
Online Retail :: Online Retail in USA :: Top US-UK eRetail Failures ::
Top US. eRetail Failures and Learning
Kozmo.com (1998-2001)
Ideas that could not sustain the dot com burst.
Kozmo.com : Online Mass Merchant.
•On Kozmo.com order a wide variety of products & get them delivered to your door for free within an hour.
•Kozmo expanded to seven cities, delivery cost was too much to deliver a DVD and a pack of gum.
•Kozmo eventually initiated a $10 minimum charge, but that didn't stop it from closing in March 2001 and
laying off 1,100 employees.
“BEWARE OF Key COST Element before making it the key Value Proposition”.
Boo.com (1998-2000)
Boo.com : Online Fashion Retailer.
•Founded in the United Kingdom as an online fashion store, Boo.com had a complicated Web site, relied
heavily on JavaScript and Flash, was very slow to load at a time when dial-up Internet usage was the norm.
• Boo spent wads of cash to market itself as a global company but then had to deal with different languages,
pricing, and tax structures in all the countries it served.
• Sales never reached expectations. Boo.com eventually burned through $160 million before liquidation in
May 2000.
“Too AHEAD AND Too BEHIND IN TECHNOLOGY ARE BOTH DANGEROUS”
Online Retail :: Online Retail in India
Ecommerce Master Class :: Online Retail ::
Index.
2.c. Online Retail in India
a. Traditional Retailing Scenario in India.
b. Modern Retailing in India.
c. Modern Retailer Issues.
d. Indian Retailers Jumping to Internet E-Retail.
e. Online Retail Market Size in India.
f. Current Share of market size by segments.
g. Products bought online within & across the world .
h. Challenges in Pure-Play Online Retail.
i. Indian Eretail Landscape.
Online Retail :: Online Retail in India ::
Traditional Retailing Scenario in India.
3. The Product Advantage
Though the range of products sold by them is
only limited, they have the advantage of
selling in small denominations which majority
of the customers favor.
This keeps them the most understanding retailer
than the modern retail.
1. The Location advantage
Grab it from the next door shop is always
possible as the spread of traditional store is so
strong.
This is one advantage which the modern
retailers would be interested in adapting.
Almost every street in the country has a retail
identity.
2. The Familiarity Advantage
The traditional retailers are the familiar
one to generations.
Interestingly, this familiarity leads to building the
strongest relationship as well as the trust
mutually.
4. The Credit Advantage
Another interesting area is that they offer
monthly credit to the customers.
“This not only helps the salaried class but also it
relieves our worries for keeping the change
ready every time we purchase”.
Online Retail :: Online Retail in India ::
Modern Retailing.
1. Greater product assortment across categories
2. Technological advantage with modernization at its best.
3. Nation-wide large retail chains offering similar assortment in most of
the categories.
Modern Retail Market Share:
Indian retail business values at around
US$ 550 billion as of now. 4 per cent
accounts for the organized sector.
Source :ibef.org
India‟s Challenge is that we are handling two revolution i.e.
Modern Retail and Online Retail together where as in US it
happened one after another
Online Retail :: Online Retail in India ::
Modern Retailer Issues.
Currently retail stores are facing a lot of hurdles in running their businesses
And they are not too mature in comparison to E-Retail. We are looking at
both Internet Retail and Modern Retail maturing together
2009
Online Retail :: Online Retail in India ::
Indian Retailers getting into eRetail.
fulfillmntcust carecontenttech mkting
Offline Retail Online Retail
Store retailers are now getting into online retail as consumers are moving
online.
Online Retail :: Online Retail in India ::
Online Retail Market Size in India.
The market is growing significantly but early days.
Online Retail is still very small percentage of
the ecommerce pie and significantly under
penetrated in comparison to US Market
Online Retail :: Online Retail in India ::
Current share of the online market by segments.
Niche Retailers have garnered significant market share
in last 3 years.
Online Retail :: Online Retail in India ::
Products Bought Online within and across the world.
Source: Ebay Reports
The Impact of E-retail is increasing across geographies
and product lines
Online Retail :: Online Retail in India :: Challenges in Online Retail ::
Security & legal challenges: The Road is Usual i.e. with Hiccups
The Road is Usual i.e. with Hiccups
Avnish Bajaj Case : Bazee.com CC Avenue : Hacking caseET, Dec 21, 2004
May 05, 2011
Online Retail :: Online Retail in India :: Challenges in Online Retail :: Legal Issues ::
Examples of Security & legal challenges..
Interpretation of marketplace is totally not known, and
CYBER LAWS are not developed in India
Security Challenges exists in all
developing industry and E-retail
is not away from it
Online Retail :: Online Retail in India :: Challenges in Online Retail :: Heavy Competition::
429+ significant players now operating…
and many more….
Source : Iksula Consulting
Online Retail :: Online Retail in India :: Challenges in Online Retail :: Taggle.com story ::
“It Also Happens in India”
Seems like a last man standing game has
started in pure play internet retailers.
Online Retail :: Online Retail in India ::
Indian E-Retail Landscape: A Summary.
Vertical
Source : „India Goes Digital‟ - Avendus
Online Apparel Industry in India:
A peep Into the future.
Online Retail :: Online Retail in India ::
Case Study.
Online Retail :: Online Retail in India :: Online Retail Market Size in India :: Case Study ::
Retail Category – Apparels
Step 1: Market size estimation
•Apparel Market will be Rs 28,880 Crore in size by 2015
•Rs 4,70,000 Crore ($104,450 million) by 2020 .
Step 2: Estimation of online penetration in the sector
Assumption:
•China‟s 2010 penetration level (3.6%) by 2015
• US‟s penetration level (10%) by 2020.
•20% by Market Share is also a fair Estimate
Step 3: Share of the Market Leader
Assumption:
•Market leader commands 8-20% market share in west and in China, a
few players have market shares in excess of 40%.We have assumed a
conservative estimate of 15% market share for the market leader .
•This translates into gross revenues (or GMV) of Rs 1600 Crore (~$350
million) in the year 2015. "This could be larger then a LOT of Large
Retailers at that time also
If you are the market leader ( Rs Crore)
15%
1575
Share of the market leader
Potential Revenues
Source : „India Goes Digital‟ - Avendus
Thank You
Feel free to contact us for further queries
samar@iksula.com
+919867020005

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Ecommerce Master Class Course

  • 2. Ecommerce Master Class :: Main Index. 1.Ecommerce---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3 1.a. Introduction to Ecommerce------------------------------------------------------------------------------------------------------------------------------------------------------------------------4 1.b. Ecommerce Business Models ------------------------------------------------------------------------------------------------------------------------------------------------------------------13 1.c. Ecommerce in India -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------23 1.d. Ecosystem -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------28 2.Online Retail -----------------------------------------------------------------------------------------------------------------------------------------------------------54 2.a. Introduction to Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------------55 2.b. Online Retail in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------60 2.c. Current Retail Industry in USA ------------------------------------------------------------------------------------------------------------------------------------------------------------------80 2.d. Online Retail in India ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------85 2.e. Online Retail Market Size ------------------------------------------------------------------------------------------------------------------------------------------------------------------------90 2.f. Challenges in Pure-Play Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------97 3.Online Retail Operations -------------------------------------------------------------------------------------------------------------------------------------------103 3.a. Building blocks of Online Retail ---------------------------------------------------------------------------------------------------------------------------------------------------------------104 3.b. Technology ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------105 3.c. Content & Imaging -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------128 3.d. Online Marketing ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------146 3.e. Fulfillment ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------171 3.f. Customer Support --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------187 4. Key Lessons ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------219 5. Looking Ahead -----------------------------------------------------------------------------------------------------------------------------------------------------194 5.a. M Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------195 5.b. T-Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------208 5.c. Social Commerce -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------215 5.d. Innovations----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------216 DAY 1 DAY 2
  • 4. Ecommerce Master Class :: Ecommerce :: Index. 1.a. Introduction to Ecommerce. a. Ecommerce Definition. b. Defining years of Ecommerce. c. Parts of Ecommerce. d. Advantages & Challenges of Ecommerce. e. Effect on purchasing decision. f. Successful Ecommerce Companies. g. Successful Ecommerce People..
  • 5. Ecommerce :: Introduction to Ecommerce :: Ecommerce Definition. “Ecommerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks” Source : Wikipedia Electronic commerce is commonly referred to as Online commerce, Web commerce, eBusiness, eRetail, eTailing, Ecommerce, ecom or EC
  • 6. Ecommerce :: Introduction to Ecommerce :: Defining years of Ecommerce. Chronology of US Ecommerce. Source : Wikipedia 1979 • Online Shopping Michael Aldrich 1981 • UK’s First B2B online shopping Thomson Holidays 1984 • First B2C online shopping Gateshead SIS/Tesco 1990 • World Wide Web Tim Berners-Lee 1994 • Netscape releases the Mozilla browser. • Bezos launches Amazon.com. • eBay is founded 1998 Alibaba Group is established in China. And it leverage China's B2B and C2C, B2C(Taobao) market. 1999 • Business.com sold for US $7.5 million . • Napster launches. In 1979 he invented online shopping to enable online transaction processing between consumers and businesses, or between one business & another, a technique known later as e- commerce. The first business- to-business (B2B) computer network was created by Thomson Holidays in 1981 10 Jan 1984 Gateshead SIS/Tesco is first B2C online shopping. Mrs Snowball, 72, is the first online home shopper. He implemented the first successful communication between a Hypertext Transfer Protocol (HTTP) client and server via the Internet Jerry Yang and David Filo publish "Jerry's Guide to the World Wide Web" online, which will evolve into Yahoo. The first version of Netscape Navigator is also released. The company, is engaged in the provision of software, technology and other services on the online business-to- business (B2B) marketplaces. It was originally founded as a pioneering peer-to- peer file sharing Internet service that emphasized sharing audio files, typically music, encoded in MP3 format. The original company ran into legal difficulties over copyright issues
  • 7. Ecommerce :: Introduction to Ecommerce :: Defining years of Ecommerce. 2000 • The dot-com bust. . 2002 • eBay acquires PayPal for $1.5 billion. • Niche retail companies Wayfair and Netshops are founded. 2009 • Zappos.com acquired by Amazon.com for $928 million. • RueLaLa.com, acquired by GSI Commerce for $180 million. 2010 • Groupon reportedly rejects a $6 billion offer from Google. 2011 • US eCommerce and Online Retail sales projected to reach $197 billion. • Diapers.com acquired by Amazon.com • GSI Commerce, acquired by eBay for $2.4 billion. Chronology of US Ecommerce. Source : Wikipedia By 2001 the bubble was deflating at full speed. A majority of the dot-coms ceased trading after burning through their venture capital, many having never made a ″net″ profit. Investors often referred to these failed dot-coms as "dot-bombs PayPal is an American-based global e- commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders. In July 2009, the company announced it would be acquired by Amazon.com in an all-stock deal worth about $1.2 billion. Since its founding in 1999, Zappos has grown to be the largest online shoe store Groupon is a deal-of- the-day website that features discounted gift certificates usable at local or national companies. As of October 2010, Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 35 million registered users In late 2008, Today, Diapers.com is the largest pure play retailer online for everything baby. Diapers.com expanded its selection into far- reaching baby categories, including clothes, car seats, strollers, and toys. GSI Commerce is an eBay company specializing in creating, developing and running online shopping sites for brick and mortar brands and retailers.
  • 8. Ecommerce :: Introduction to Ecommerce :: The parts of E-Commerce. Online Travel Online Retail Digital Downloads Other Online Services Financial Services
  • 9. Ecommerce :: Introduction to Ecommerce :: Advantages & Challenges of Ecommerce. Advantages • Being able to conduct business 24 x 7 x 365 • Access the global marketplace • Opportunity to reduce costs by cutting intermediaries. • Very easy access to information • Speed of Doing Business • Challenges • System And Data Integrity Issues • Physical product, supplier & delivery uncertainty • Limited and selected sensory information ( Touch and Feel ) • Online Frauds.
  • 10. Ecommerce :: Introduction to Ecommerce :: Effects on Purchase Decision. Store 1 Store 2 Store 1 Store 1 Store 2 Search Engines Targeted Ads Store 1 Online Website Store 1 Online Website Purchase Decisions have got very informative but very complicated for retailers.
  • 11. Ecommerce :: Introduction to Ecommerce :: Successful Ecommerce Companies. and many more…. YOU COULD BE ONE !!!
  • 12. Ecommerce :: Introduction to Ecommerce :: Successful Ecommerce People. Larry Page Google Sergey Brin Google Jeff Bezos Amazon Pierre Omidyar Ebay Eric Schmidt Google Ronald Burkle Yahoo Mark Cuban Broadcast.com Jerry Yang Yahoo Omid Kordestani Google David Filo Yahoo Ram Shriram Google Todd Wagner Broadcast.com Peter Thiel Paypal Niklas Zennstrom Skype Janus Friis Skype Jack Ma Alibaba.com Mark Zuckerberg Facebook Simon Nixon MoneySupermarket Andrew Gower Runescape Reid Hoffman LinkedIn Zhang Chaoyang Sohu Steve Chen Youtube Elon Musk Paypal Chad Hurley Youtube Duncan Cameron MoneySupermarket Marc Andreesen Netscape You can be one of them. YOU COULD BE ONE !!!!
  • 13. Ecommerce :: Ecommerce Business models
  • 14. Ecommerce Master Class :: Ecommerce :: Index. 1.b. Ecommerce Business Models a. Internet Business Models. b. Business Models in Ecommerce c. Business Models Explained - B2B, B2C, C2C, C2B, G2C d. Case Study : Industry Structure.
  • 15. Ecommerce :: Ecommerce Business models :: Internet Business Models. Brokerage Model Advertising Model Infomediary Model Merchant Model Manufacturer Model Affiliate Model Community Model Subscription Model Utility Model
  • 16. Business-to-business (B2B) In this segment, companies conduct business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Ecommerce :: Ecommerce Business models :: Business models in ecommerce. Business-to-consumer (B2C) Here, businesses selling to the general public typically through catalogs utilizing shopping cart software. Consumer-to-consumer (C2C) Here, websites offer free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems. Government to Citizen This comprises G2G (Government-to- Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business- to-Government),G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government from procurement to filing taxes to business registrations to renewing licenses. Consumer to Business (C2B ) In this case, a consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project.
  • 17. Business-to-business (B2B) In this segment, companies conduct business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Ecommerce :: Ecommerce Business models :: Business models explained. B2B. •Alibaba.com is the world's largest online business-to-business trading platform for small businesses. •The company was founded by Jack Ma and 18 people in 1999. • It claims it had more than 65 million registered users in more than 240 countries and regions as of March 31, 2011. •The company‟s serves to bring together importers and exporters from more than 240 countries and regions. •IndiaMART.com is India's largest online B2B marketplace for Small & Medium Size Businesses, connecting global buyers with suppliers. •The company offers a platform & tools to over 1 million suppliers to generate business leads from over 5 million buyers, who use the platform to find reliable & competitive suppliers. •The company has over 4500 employees located across 90 offices in the country.
  • 18. Business-to-consumer (B2C) Here, businesses selling to the general public typically through Catalogs utilizing shopping cart software. Ecommerce :: Ecommerce Business models :: Business models explained . B2C. • Diapers.com, founded in 2005 by Marc Lore and Vinit Bharara. • It is the largest online specialty retailer for baby products. • Delivers consumables, such as diapers, wipes, and formula, to parents with free 1-2 day shipping and a focus on customer service. • In late 2008, Diapers.com expanded its selection into baby clothes, car seats, strollers, and toys. •Today, Diapers.com is the largest pure play retailer online for everything baby. • Flipkart.com is among India‟s largest online retailers. • Established in 2007 by Sachin and Binny Bansal, it is among India‟s largest eRetailers. • Started as an online bookstore, but has since diversified into media, consumer electronics, computers, healthcare and home appliances.
  • 19. Consumer-to-consumer (C2C) Here, websites offer free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems. Ecommerce :: Ecommerce Business models :: Business models explained . C2C. •eBay.com is an American internet consumer-to-consumer corporation . • It manages an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. •Founded in 1995, eBay is now a multi-billion dollar business with operations localized in over thirty countries.
  • 20. Government to Citizen This comprises G2G (Government-to- Government), G2E (Government-to- Employee), G2B (Government-to- Business), B2G (Business-to- Government),G2C (Government-to- Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government from procurement to filing taxes to business registrations to renewing licenses. Ecommerce :: Ecommerce Business models :: Business models explained . G2C. •Whatever you want or need from the U.S. government, it's available on USA.gov. •Electronic filing of Income tax return and Fringe Benefit tax Return •Know your PAN-Enables a tax payer to ascertain his PAN •Bulk PAN Query-Enables registered institutions to query PAN in batch mode •Registration of e-Return Intermediaries •Refund status query
  • 21. Consumer to Business (C2B ) In this case, a consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Ecommerce :: Ecommerce Business models :: Business models explained . C2B. •Elance is a global Internet platform where businesses hire independent freelance professionals. •Freelance professionals create online profiles and portfolios, submit proposals for jobs that interest them, and manage both work and receive payment through the site. •ApnaPaisa value proposition for consumers is their comprehensive customized comparison quotes, which are rendered in simple, user-friendly and appealing manner. •Consumers save time as they get a one-stop shop for researching, comparing and buying online from or contacting the service providers for virtually all the products in the market.
  • 22. Industry Structure in Online Retail Michael Porter Ecommerce :: Ecommerce Business models :: Case Study.
  • 23. Ecommerce :: Ecommerce Business models :: Case Study :: Porter analysis on Internet Industries. -+/- - - - - + - - + - - - - The game lies in understanding the threats of – & leveraging the + „.- +
  • 24. Ecommerce :: Ecommerce Business models :: Case Study :: Case Study: Indian Market -+/- - - - - + - - + - - - - Market Leadership has been changing with new formats and players Travel is a Classical Case in Indian Market Indian Internet Consumers shifted the online proposition to Price. LTV management has been a Serious Challenge IndiatimesShopping to Fabmall to Flipkart to ???? Web Only Brands have been born in India as its easier to reach out to customers Smaller Brands would find it lucrative The game lies in understanding the threats of – & leveraging the + „.- +
  • 26. Ecommerce Master Class :: Ecommerce :: Index. 1.c. Ecommerce in India. a. Evolution of Indian Ecommerce Industry. b. A Typical Day in a Heavy Internet Users life in India. c. The Current Ecosystem.
  • 27. Ecommerce :: Ecommerce in India :: Evolution of Indian Internet & Ecommerce Industry. 1995 VSNL introduces internet in India via dialup in 6 cities on Aug 14,1995 1996 • Rediff.com launched by Ajit Balakrishnan. • India‟s first cyber café called “Cybercafé” launched in a Mumbai hotel 1997 • First online banking site launched by ICICI Bank. • Naukri.com launched • Sabeer Bhatia‟s Hotmail sold to Microsoft for $400 million in USA. 1998 • VSNL‟s monopoly on internet ends • Sify becomes India‟s first ISP • Launch of Nasscom by Dewang Mehta, a chartered accountant by profession to promote IT industry • Cybercafés start mushrooming 1999 • Indiaworld sold to SIFY for $115 million • Webdunia, India‟s first and most successful Hindi portal launched 2000 • IT ACT 2000 passed by the Indian Govt. • Baazee.com launched based on the EBay model. • Indya.com launched with Rs 4.5 crore campaign blitz • Yahoo & MSN launch Indian sites Source : Wikipedia Rediff.com India (NASDAQ: REDF) is a news, information, entertainment, and shopping portal. It was founded in 1996 Ajit Balakrishnan, Chairman and CEO of Rediff.com Naukri.com is a job site operating in India founded by Sanjeev Bikhchandani in March 1997 Hotmail service was founded by Sabeer Bhatia and Manojit Rout. The name "Hotmail" was chosen out of many possibilities ending in "- mail" as it included the letters HTML ("HoTMaiL). Sify Technologies Limited (formerly Sify Limited and Satyam Infoway Limited) (NASDAQ: SIFY) is an Indian broadband internet provider established in 1998, based in Chennai, India Webdunia.com is a Hindi News Website which provides variety of news in hindi from India and International news, it has top stories on business, bollywood gossip, sports updates Baazee.com was an online marketplace started by Avnish bajaj on the lines on ebay.com in the US. Ebay eventually bought over the company in 2004. Tata Communications Limited (formerly VSNL), is a telecommunicati ons company located in Mumbai.
  • 28. Ecommerce :: Ecommerce in India :: Evolution of Indian Internet & Ecommerce Industry. 2001 • Indian Railways launches online ticketing site, irctc.com • India‟s first cyber crime police station opens in Bangalore 2002 • HomeTrade fiasco– brokerage site launched with Rs 65 crore blitz goes bust . 2003 • AirDeccan becomes first airlines to offer online ticketing in India. 2004 • EBay buys out Baazee.com & Monster.com buys Jobsahead.com • First Indian Dotcoms IPOs are successful– indiabulls.com & indiainfoline.com Source : Wikipedia Indian Railway Catering and Tourism Corporation (IRCT C) is a subsidiary of the Indian Railways that handles the catering, tourism and online ticketing operations of the railways. Home trade modus operandi was really oversimplified. It claimed to be a professed fresh dealing in governing securities (Gilts) and would attractiveness the generalized unrestricted, brokers, sub-brokers dealing in Gilts. But the polity securities never existed. Air Deccan, is a low- cost airline brand. It is headquartered in Mumbai, India It was started by Captain G. R. Gopinath Air Deccan was the first airline in India to fly to second tier cities Indiabulls is an Indian company with its presence in the Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. CarWale.com services include new car research, on-road price of new cars, used car valuation guide and used car classifieds. CarWale also facilitates new car sale through tie- ups with manufacturers, dealers, financiers and in surance firms. 2005 • CarWale.is founded by Mohit Dubey and his three friends in October 2005 2006 • BookMyShow Launched in Aug 2006 Bookmyshow.com provides cinemas, event organizers and consumers a complete range of solutions through call centers, Internet ticketing, kiosk and a mobile ticketing platform. One of the major movie & events ticket seller in India.
  • 29. Ecommerce :: Ecommerce in India :: Evolution of Indian Ecommerce Industry. 2007 • Flipkart went live in 2007 with the objective of making books easily available to anyone who had internet access . 2009 • Fashion and You is a private invitation only shopping club, based in Gurgaon, India Source : Wikipedia 2012 • PepperFry, the eCommerce startup from the ex-Ebay heads, Ambreesh Murty and Ashish Shah, has gone live Flipkart is among India‟s largest online retailers. It is an electronic commerce company headquartered in Bangalore, Established in 2007 by Sachin and Binny Bansal, Flipkart started as an online bookstore, but has since diversified into media, consumer electronics, computers, healthcare and home appliances. It was founded by Harish Bahl and Pearl Uppal in November, 2009 Fashion and You is a private invitation only shopping club featuring collections by top designers for men, women and children 2010 • Snapdeal launches. Company was founded by Kunal Bahl and Rohit Bansal. Snapdeal is a daily deals' website that features discount offers across lifestyle segments such as dining, health & beauty, entertainment and travel. It also offers discounts on products like electronics, perfumes, watches, bags, sunglasses and mobiles. 2008 • HomeShop 18 launches on 9 April 2008 HomeShop18 is the online & on-air retail marketing and distribution venture of Network 18 Group that was launched as India‟s first 24 hour Home Shopping TV channel on 9 April 2008. It is part of the Network 18 Group. Pepperfry focuses on Lifestyle segment that do not have an organized market or standardized pro ducts. The site currently hosts products in personal accessorie s and clothing, jewellery and furniture categories. 2011 • Zovi.com launches ZOVI.com is an apparel brand available exclusively online. Zovi sells premium apparel designed with top- notch components to our customers across men's and women's categories.
  • 30. Ecommerce :: Ecommerce in India :: A Typical Day in a Heavy Internet Users life in India. Source : „India Goes Digital‟ - Avendus
  • 31. Ecommerce :: Ecommerce in India :: The Current Internet Ecosystem. Source : „India Goes Digital‟ - Avendus
  • 32. Ecommerce :: Ecommerce in India :: Ecosystem :: Access :: Internet Penetration. •80 million users, a long way to go •There are an estimated 80 million Internet users in India today • It represents only a penetration of 7% of the population (17% of urban population). •This is significantly lower than global benchmarks (average 31% of total population). Source : „India Goes Digital‟ - Avendus Source : „India Goes Digital‟ - Avendus
  • 33. Ecommerce :: Ecommerce in India :: Ecosystem :: Access :: Internet Users in India •One report has suggested 70 million. •Google put out a number of a 100 million sometime back. Source : „India Goes Digital‟ - Avendus
  • 34. Ecommerce :: Ecommerce in India :: Ecosystem :: Access :: Sources of Growth. •Number of PCs is not a constraint •Broadband availability and cost are the major constraints. •PC broadband penetration to reach 15.6% of households by 2015. •Mobile broadband to be the primary driver of overall Internet penetration - 3G to reach 22% of the population by 2015 Source : „India Goes Digital‟ - Avendus
  • 35. Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics. Tier I cities dominate, but penetration increasing fast across tier II/III cities and towns Source : „India Goes Digital‟ - Avendus
  • 36. Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics :: User profile and how it has changed over time. Source : „India Goes Digital‟ - Avendus Younger consumers driving growth & the number of Internet savvy people in higher age groups will continue to rise - improving the potential for commerce.
  • 37. Ecommerce :: Ecommerce in India :: Ecosystem :: Demographics :: Customer Classification. Source : IAMAI Significant growth of internet in the middle income class, thus making internet more broad based.. Source : „India Goes Digital‟ - Avendus
  • 38. Ecommerce :: Ecommerce in India :: Ecosystem :: Government Actions in ecommerce. •25% of income tax filings are now online •UIDs and the impact on electronic payments Source : „India Goes Digital‟ - Avendus Government Initiatives driving penetration as well as helping build trustworthy cyber environment . Cyber Crime, Online Payment Security and stronger consumer forums could help further
  • 39. Ecommerce :: Ecommerce in India :: Ecosystem :: Venture Capital Action in ecommerce. •Growing entrepreneurship •Improved support systems •A whole lot of money Source : „India Goes Digital‟ - Avendus There has been growth in entrepreneurship and investments have followed
  • 40. Ecommerce :: Ecommerce in India :: Ecosystem :: Online advertising market in India. Online Advertising eco-system is developing but a long way to go Source : Pitch-Madison Media Outlook 2011
  • 41. Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Credit and Debit Cards. • Credit card penetration in India has actually seen a decline of late. •This is due to the tightening of norms by banks for the issue of credit cards, after delinquency rates shot up in 2009. Source : „India Goes Digital‟ - Avendus
  • 42. Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues :: Cash On Delivery. COD. The Indian Innovation. •Eliminates consumer drop-offs which occur due to “LACK of TRUST” •Mitigates the primary disadvantage of e-commerce - „lack of touch and feel‟. •Transfers the risk from the consumer to the supplier. I think Indian ecommerce needs this to develop confidence in ecommerce Source : „India Goes Digital‟ - Avendus
  • 43. Ecommerce :: Ecommerce in India :: Ecosystem :: Payment Issues :: Online Payment Facilitators in India. Source : „India Goes Digital‟ - Avendus Indian market has a strong appetite for new and innovative Payment Systems.
  • 44. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain & Delivery. Ecommerce Industry due to its need to keep large assortment and multipoint delivery makes supply chain and logistics very challenging and different for retail
  • 45. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain :: Comparison of different supply chain & Logistics options. Source : „India Goes Digital‟ – Avendus Supply Chain & Logistics
  • 46. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain :: Delivery Examples. Delivery is becoming a differentiator in Indian Market. Supply Chain & Logistics Source : „India Goes Digital‟ - Avendus
  • 47. Ecommerce :: Ecommerce in India :: Ecosystem :: Ecommerce Supply Chain :: Owned vs. Outsourced delivery. In the short to medium term, it seems increasingly likely that e-commerce companies will follow a two-pronged strategy: A ) Developing their own delivery channel for the metros. B) Relying on outsourced parties for tier 2 and 3 cities where they are subscale. Supply Chain & Logistics Source : „India Goes Digital‟ - Avendus Source : „India Goes Digital‟ - Avendus
  • 49. Ecommerce Master Class :: Online Retail :: Index. 2.a. Introduction to Online Retail. a. What is Online Retail b. Why Online Retail
  • 50. Online Retail :: Introduction :: What is Online Retail Online Retail is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. Source : Wikipedia An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is also called business-to-consumer (B2C) online shopping.
  • 51. Online Retail :: Introduction :: Why E-Retail: The Reasons remain the same over years E retail Consumer Value Proposition.
  • 52. Online Retail :: Online Retail in USA
  • 53. Ecommerce Master Class :: Online Retail :: Index. 2.b. Online Retail in USA a. History of Online Retail US b. Proposition of Online Retail in US. c. Share of Revenues by Segments : US d. The Growth & Share story. e. Challenges faced initially by US. brick n mortar stores on Online medium. f. Top US. E-Retailers by revenues g. Retailers entering online space. h. Managed Services Companies. i. Case Study : Walmart Vs Amazon j. Current Retail Industry in USA some trends k. Top US Failures & Learning.
  • 54. Online Retail :: Online Retail in USA :: History of Online Retail US. :: Online Retail boom started in 1994 in US. 2 41.6 % 17 6.0 % 18 16.0 % 29 5.6 % 118 4.9 % 24 8.9 % 20 8.4 % 57 11.6 % 53 7.8 % Source: Internet Retailer „10 Launched macys.com in 1997. Launched jcpenney.com in 1994. Launched gap.com in 1997. Launched toysRus.com in 1998. Starts victoriassecret.com in 1995. Launched staples.com in 1997.Launched ae.com in 1998.Launched staples.com in 1996. Launched staples.com in 1998. WEB SALES AS A % OF TOTAL SALES INTERNET RETAILER TOP 500 RANKING Within 4 years all major stores went online.
  • 55. Convenience Hard To Find Price Online Retail :: Online Retail in USA :: Proposition of Online Retail in US.
  • 56. Online Retail :: Online Retail in USA :: Proposition of Online Retail in US :: Convenience : The Consumer Proposition Convenience Books, Music, Movies,…. Sit @ Home and Get it Selection Deep Research Value Proposition , Categories and Formats.
  • 57. Hard to Find Antiques, Coins, Radio Controlled Toys …. C2C Commerce Cannot get it Anywhere Get it here Local became National with second hand goods Online Retail :: Online Retail in USA :: Proposition of Online Retail in US :: Hard to Find: The Consumer Proposition. Value Proposition , Categories and Formats.
  • 58. Inventory Clearance Discount Price Electronics, Computers, Price Discovery Auction, Volume Aggregation Online Retail :: Online Retail in USA :: Proposition of Online Retail in US :: Price: The Consumer Proposition. Value Proposition , Categories and Formats.
  • 59. Online Retail :: Online Retail in USA :: Share of revenues by Segments. US Mass merchant does not include marketplaces like ebay.com
  • 60. Online Retail :: Online Retail in USA :: Share of revenues by Category. US :: Detailed Category Division. US. Source: Internet Retailer.US 2011
  • 61. Online Retail :: Online Retail in USA :: The Growth and Share Story….. “Lets hold the plans to open another two retail stores, lets invest the same capital to build a online web store for „GLOBAL‟ sales” …a top US offline store.
  • 62. Online Retail :: Online Retail in USA :: Challenges faced initially by US. brick n mortar stores on Online medium??? How will we reserve Inventory ? How do we plan Supply for our store plus online ? We have no idea about Online Technologies ! How will we Integrate with our ERP ? We don‟t have a Online Merchandising Plan ! What is Online Marketing ? How do we ship Individual Orders? How do we Manage Returns? Does it seem like a same story everywhere ?
  • 63. Online Retail :: Online Retail in USA :: Top US. E-Retailers by revenues. Online Sales: $34,200,000,000 2010 Growth: 39.5% Online Sales: $2,500,000,000 2010 Growth: 8.7% Online Sales: $4,095,000,000 2010 Growth: 17.0% Source: Internet Retailer US
  • 64. Online Retail :: Online Retail in USA :: Retailers entering online space and dominating the online retail space. But Amazon still remains the market leader…. Source: Internet Retailer US
  • 65. Online Retail :: Online Retail in USA :: Managed Ecommerce Solutions :: A Lot of Retailers opted with outsourcing it to Managed Service Companies A lot of retailers opted to outsource the area of non competence and left it to specialist GSI Commerce® is a leading provider of ecommerce and interactive marketing services for the world‟s premier brands and retailers.
  • 66. Retail versus Online Retail. Online Retail :: Online Retail in USA :: Case Study.
  • 67. Walmart. vs Amazon. Round 1. Market Performance.
  • 68. Walmart. vs Amazon. Round 2. Products & Prices. Food For thought If the cost of monthly shipment and cost of trips to retail shops equals Amazon would always be cheaper and occupy the pricing proposition completely
  • 69. Walmart. vs Amazon. Round 3. Brand Performance. Amazon by proving higher brand ranking and customer service has proven that this model can deliver to consumer expectations
  • 70. Walmart. vs Amazon. Round 4. Expansion & Innovation.
  • 71. Walmart. vs Amazon. Projected Revenue. Key Take Away •Amazon is projected to surpass Wal-Mart in sales revenues in the year 2024.
  • 72. Online Retail :: Online Retail in USA :: Trends to Watch for :: Research it Anywhere, Buy it Anywhere Get it Anywhere….. “Multichannel is the New Reality”
  • 73. A few category retailers in US. shut down stores as unable to compete with online retailers & competitors. Online Retail :: Online Retail in USA :: Trends to Watch for :: E Retailer have affected a few industry very hard…..
  • 74. Online Retail :: Online Retail in USA :: Top US eRetail Failures :: Top US. eRetail Failures and Learning Webvan (1999-2001) Pets.com (1998-2000) Ideas that could not sustain the dot com burst. Pets.com : Online Pets Store •Pets.com was never able to give pet owners a compelling reason to buy supplies online. •When you need kitty litter, you need kitty litter. “TIMELY FULFILLMENT IS CRUCIAL in some Categories and is the Key Value”. Webvan.com : Online Grocery: To Fast To Soon. •In a mere 18 months, it raised $375 million in an IPO, •expanded from the San Francisco Bay Area to eight U.S. cities, •Building a $1 billion high-tech warehouses. Webvan touted a 26-city expansion plan. •But considering that the grocery business has razor-thin margins to begin with, it was never able to attract enough customers to justify its spending spree. •The company closed in July 2001, putting 2,000 out of work.
  • 75. Online Retail :: Online Retail in USA :: Top US-UK eRetail Failures :: Top US. eRetail Failures and Learning Kozmo.com (1998-2001) Ideas that could not sustain the dot com burst. Kozmo.com : Online Mass Merchant. •On Kozmo.com order a wide variety of products & get them delivered to your door for free within an hour. •Kozmo expanded to seven cities, delivery cost was too much to deliver a DVD and a pack of gum. •Kozmo eventually initiated a $10 minimum charge, but that didn't stop it from closing in March 2001 and laying off 1,100 employees. “BEWARE OF Key COST Element before making it the key Value Proposition”. Boo.com (1998-2000) Boo.com : Online Fashion Retailer. •Founded in the United Kingdom as an online fashion store, Boo.com had a complicated Web site, relied heavily on JavaScript and Flash, was very slow to load at a time when dial-up Internet usage was the norm. • Boo spent wads of cash to market itself as a global company but then had to deal with different languages, pricing, and tax structures in all the countries it served. • Sales never reached expectations. Boo.com eventually burned through $160 million before liquidation in May 2000. “Too AHEAD AND Too BEHIND IN TECHNOLOGY ARE BOTH DANGEROUS”
  • 76. Online Retail :: Online Retail in India
  • 77. Ecommerce Master Class :: Online Retail :: Index. 2.c. Online Retail in India a. Traditional Retailing Scenario in India. b. Modern Retailing in India. c. Modern Retailer Issues. d. Indian Retailers Jumping to Internet E-Retail. e. Online Retail Market Size in India. f. Current Share of market size by segments. g. Products bought online within & across the world . h. Challenges in Pure-Play Online Retail. i. Indian Eretail Landscape.
  • 78. Online Retail :: Online Retail in India :: Traditional Retailing Scenario in India. 3. The Product Advantage Though the range of products sold by them is only limited, they have the advantage of selling in small denominations which majority of the customers favor. This keeps them the most understanding retailer than the modern retail. 1. The Location advantage Grab it from the next door shop is always possible as the spread of traditional store is so strong. This is one advantage which the modern retailers would be interested in adapting. Almost every street in the country has a retail identity. 2. The Familiarity Advantage The traditional retailers are the familiar one to generations. Interestingly, this familiarity leads to building the strongest relationship as well as the trust mutually. 4. The Credit Advantage Another interesting area is that they offer monthly credit to the customers. “This not only helps the salaried class but also it relieves our worries for keeping the change ready every time we purchase”.
  • 79. Online Retail :: Online Retail in India :: Modern Retailing. 1. Greater product assortment across categories 2. Technological advantage with modernization at its best. 3. Nation-wide large retail chains offering similar assortment in most of the categories. Modern Retail Market Share: Indian retail business values at around US$ 550 billion as of now. 4 per cent accounts for the organized sector. Source :ibef.org India‟s Challenge is that we are handling two revolution i.e. Modern Retail and Online Retail together where as in US it happened one after another
  • 80. Online Retail :: Online Retail in India :: Modern Retailer Issues. Currently retail stores are facing a lot of hurdles in running their businesses And they are not too mature in comparison to E-Retail. We are looking at both Internet Retail and Modern Retail maturing together 2009
  • 81. Online Retail :: Online Retail in India :: Indian Retailers getting into eRetail. fulfillmntcust carecontenttech mkting Offline Retail Online Retail Store retailers are now getting into online retail as consumers are moving online.
  • 82. Online Retail :: Online Retail in India :: Online Retail Market Size in India. The market is growing significantly but early days. Online Retail is still very small percentage of the ecommerce pie and significantly under penetrated in comparison to US Market
  • 83. Online Retail :: Online Retail in India :: Current share of the online market by segments. Niche Retailers have garnered significant market share in last 3 years.
  • 84. Online Retail :: Online Retail in India :: Products Bought Online within and across the world. Source: Ebay Reports The Impact of E-retail is increasing across geographies and product lines
  • 85. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Security & legal challenges: The Road is Usual i.e. with Hiccups The Road is Usual i.e. with Hiccups
  • 86. Avnish Bajaj Case : Bazee.com CC Avenue : Hacking caseET, Dec 21, 2004 May 05, 2011 Online Retail :: Online Retail in India :: Challenges in Online Retail :: Legal Issues :: Examples of Security & legal challenges.. Interpretation of marketplace is totally not known, and CYBER LAWS are not developed in India Security Challenges exists in all developing industry and E-retail is not away from it
  • 87. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Heavy Competition:: 429+ significant players now operating… and many more…. Source : Iksula Consulting
  • 88. Online Retail :: Online Retail in India :: Challenges in Online Retail :: Taggle.com story :: “It Also Happens in India” Seems like a last man standing game has started in pure play internet retailers.
  • 89. Online Retail :: Online Retail in India :: Indian E-Retail Landscape: A Summary. Vertical Source : „India Goes Digital‟ - Avendus
  • 90. Online Apparel Industry in India: A peep Into the future. Online Retail :: Online Retail in India :: Case Study.
  • 91. Online Retail :: Online Retail in India :: Online Retail Market Size in India :: Case Study :: Retail Category – Apparels Step 1: Market size estimation •Apparel Market will be Rs 28,880 Crore in size by 2015 •Rs 4,70,000 Crore ($104,450 million) by 2020 . Step 2: Estimation of online penetration in the sector Assumption: •China‟s 2010 penetration level (3.6%) by 2015 • US‟s penetration level (10%) by 2020. •20% by Market Share is also a fair Estimate Step 3: Share of the Market Leader Assumption: •Market leader commands 8-20% market share in west and in China, a few players have market shares in excess of 40%.We have assumed a conservative estimate of 15% market share for the market leader . •This translates into gross revenues (or GMV) of Rs 1600 Crore (~$350 million) in the year 2015. "This could be larger then a LOT of Large Retailers at that time also If you are the market leader ( Rs Crore) 15% 1575 Share of the market leader Potential Revenues Source : „India Goes Digital‟ - Avendus
  • 92. Thank You Feel free to contact us for further queries samar@iksula.com +919867020005

Editor's Notes

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