A presentation of the E-commerce Industry in India with special emphasis on the factors that influence it's business environment

2. Electronic Commerce or eCommerce is often misunderstood as buying and
selling of goods and services over internet and financial transactions between
organizations and customers. Though mostly known, this definition doesn’t
cover all the business areas. In broad terms, eCommerce encompasses all
transactions that take place electronically – buying, selling,customer
service, inventory management, marketing, delivering, pre-sale and post-sales
activities.
“eCommerce is the exchange of information across electronic networks, at any
What is E-commerce?
stage in the supply chain, whether within an organization, between
businesses, between businesses and consumers, between the public and private
sector, whether paid or unpaid”
– Cabinet Office, UK government

3. The Different perspectives of e-Commerce:
1. A Communication perspective – the delivery of information, product/services or payment by
electronic means.
2. A business process perspective – the application of technology towards the automation of
business transactions and workflows.
3. A service perspective – enabling cost cutting at the same time as increasing the speed and quality
of service delivery.
4. An online perspective – the buying and selling of products and information online.
We can look at those transactions from sell-side and buy-side.
Buy-side e-Commerce – This section involves the supplier, manufacturer, intermediaries and the
organization and its functional units
Sell-side e-Commerce – This section involves interactions between corporates, customers and the
organization.backb
YEAR EVENT
1994 Netscape Launched; SSL encryption enabled shopping.
1995 Backbone of eCommerce formed;Amazon, eBay and Verisign launched.
1997 Dell first company to reach @ 1Mn in online sales.
1998 Google launched, USPS launched eStamps.
2000 Dot-com bubble burst.
2002 eBay acquired PayPal.
2003 Facebook launched for college students.
2006 Google acquired YouTube; iTunes became first digital music retailer.
2007-08 Private Sales Model, Social eCommerce, Mobile eCommerce, Daily Deals/Local eCommerce

4. Different formats of eCommerce
eCommerce Categories
The Interactions between an organization and its customers can be classified into 3
categories:

5. Global
Reach
Personalizati Cost
on Reduction
Why is it Emerging?
Measurem
Interactivity
ent

9. Mobile
Commerce
Continued Evolvement
catching up Expansion of 3rd
Social Media Consolidation of deals / Emerging
with virtual goods
Driving among local e- new business Party seller
traditional and
Consumption private sales Commerce models platforms
online and currencies
companies sector
offline
business
Retail Online
Stores Stores

10. Services Offered

11. Online
Stores

12. Internal
Environment
Aggressiveness
Innovation
Risk-Taking
Attention To
Detail
External
Environment
Govt. Rules &
Regulations
Economic
Young demography
Emergence of new
customer base
Technology
New Competitors

13. Govt. Rules and Regulation & Legal Aspect(IT LAWS) 
 There are no specific e-commerce laws and regulations in India and they are still
evolving.
 The Information Technology Act 2000 (IT Act 2000) governs the online issues of e-
External Environment
commerce in India.
 IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that
the e-commerce entrepreneurs and owners must ensure cyber law due diligence in
India.
 E-commerce entrepreneurs and owners in India must understand that legal issues
of e-commerce in India are different for different categories of e-commerce.
 The legal requirements for undertaking e-commerce in India also involve
compliance with other laws like contract law, Indian penal code, etc.
 Further, online shopping in India also involves compliance with the banking and
financial norms applicable in India.
 Perry4Law and Perry4Law Techno Legal Base (PTLB) recommend that all e-
commerce entrepreneurs and owners must do a proper techno legal due diligence
before opening an e-commerce website.
 Further, e-commerce websites in India must ensure privacy protection, data
protection, data security, cyber security, confidentiality maintenance, etc as well.

14.  Economic Condition 
 Total e-commerce revenue in India is expected to increase by more than
five times by 2016, from $1.6 billion in 2012 to $8.8 billion in 2016. In
2011, venture capitalists invested $ 177 million in e-Commerce in India
 (FDI) is limited to traditional brick-and-mortar stores. The entry of
foreign-owned virtual stores – online e-commerce platforms – continues to
be restricted
 Foreign firms, which are merely a “listing platform for brands”, are
welcome to operate in India. But, foreign firms that buy and sell any goods
or services are still banned from conducting their activities.
 e-commerce firms can though invest in warehousing and back end
infrastructure, which allows 100 per cent FDI
 e-commerce companies, which have FDI infusion, have created
corporate structures which technically enable them to receive FDI infusion
even while sticking to the regulatory guidelines.

15.  Social
Young Demography
•According to a 2007 report by McKinsey &
Co., “India is set to grow into the fifth largest
consumer market in the world by 2025”, McKinsey &
Co Report, 2007
•Today, over 35% of our population is below the age
of 20
•In 2020, the average Indian will be only 29 years
old, compared with 37 in China and the US, 45 in
West Europe
•By 2020, 325 million people in India will reach
working age, largest in the world. With a huge
working population there will be huge consumption
boom, as it has happened in China.
•India is and will remain for some time one of the
youngest countries in the world.

16. Emergence of new Customer base
The 'bird of gold': The rise of India's consumer market
-By McKinsey Global Institute
“Who are the new consumers?...... The
Urban Indian Woman & The Youth
The Indian Woman
“The Indian woman is perhaps less homogenous
and more conflicted as a consumer group
compared to the Indian man.” — jacob
kurian, neW silk route
•E commerce offers variety of women products
•In the past five years, there has been a large
increase in the product categories specifically
targeted towards the urban woman.
•Be it mobile
phones, computers, apparel, jewellery or even
financial products, women in the cities are
finding themselves spoilt for choice.

17. The Indian Youth: charting their own path
•With the majority of its population
below the age of 25 years, it is the
primary target of every consumer
goods company
•Increased brand awareness
•A larger number of younger people
now have cash in hand
•Technology Oriented
•Spends on leisure and personal
gratification
•Concept of saving for a rainy day is
alien to most of them

18.  Technology 
“The rural consumer will have his debit card within
his phone and will use the device to
transfer funds between his and the seller’s
accounts.”
— Mr Vaghul, chairman, icici banking corporation
E payment is a subset of an e-commerce
transaction to include electronic payment for
buying and selling goods or services offered
through the Internet.
The Internet has the potential to become the
most active trade intermediary within a decade.
Internet shopping may revolutionize retailing by
allowing consumers to sit in their homes and buy
an enormous variety of products and services
from all over the worlds.
Many businesses and consumers are still wary
of conducting extensive business electronically.
However, almost everyone will use the form of E
Commerce in near future.

19.  Competition from New Competitors
In 2007, Walmart announced
an agreement with Bharti
Enterprises to establish a
Bharti Walmart Private
100% commitment to quality
Limited, a wholesale cash-and-
Most competitive price
carry and back-end supply
Doorstep delivery of products under strict chain management operations
supervision
in India.
Right weight/quantity
100% disclosure policy across all products A typical wholesale cash-and
Convenience of phone shopping carry facility stands between
State-of-the-art Quality Control labs in Delhi 50,000 and 100,000 square
(NCR), Mumbai, Lucknow, Nagpur, Hyderabad, Kol feet and sells a wide range of
kata and Patna
fruits and vegetables, groceries
Pan-India quality team of 800 and
people, comprising 50 Quality Experts and
Associates, 150 Quality Control Executives, 30 staples, stationery, footwear, cl
Quality Assurance Managers and 500 Quality othing, consumer durables and
Advisors other general merchandise
305 warehouses in 285 cities items.
The first Best Price Modern
Wholesale opened in 2009.

20.  Aggressiveness
Internal Environment
Out of stock
notification
Free Vouchers
on new arrival
via e-Mail
Ads on
Extensive ads
Facebook
on primetime
which has
networks
8Mn users

21.  Innovation
COD
3D-View
30 day Online Chat
return with
policy executives

22.  Risk-Taking Attitude

23.  Attention to detail
• Specification
• Minute detail
of the product
• Customer
Feedback

24. Conclusion

25. Impacts of e-commerce and e-business in developing
countries :
For SMEs in developing countries e-commerce poses the advantages of
reduced information search costs and transactions costs .
IFAT: Empowering the Agricultural Sector through B2C E-Commerce.
Offshore Data Processing Centres: E-commerce at Work in the Service
Sector
E-Mail and the Internet in Developing Countries
Women and Global Web-Based Marketing: The Case of the Guyanan
Weavers’ Cooperative

26. The main issues of concern that act as barriers to the
increased uptake of information technology and e-
commerce.
 Lack of awareness and understanding of the value of e-
commerce.
Lack of ICT knowledge and skills.
Financial costs
 Infrastructure.
 Security
 Other privacy-security-related issues.