Presentation on Last 10 years and current scenario in E-commerce Sector of India and its Future (as of 2016). Presentation speaks about areas which are still to be explored by Indian E-Commerce

1. ECOMMERCE SECTOR OF
INDIA
An analysis of last 10 years
Presented by :
Harpreet Singh(33)
Anand Heda (34)
Himanshu Shroff (35)
Pragya Jain (36)
Abhijeet Jamgade (37)

2. WHAT IS ECOMMERCE?
• E-commerce (electronic commerce or EC) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network, primarily
the Internet.Add your second bullet point here
• These business transactions occur either business-to-business, business-to-
consumer, consumer-to-consumer or consumer-to-business.
• Its a revolution, which is changing the way businesses buy and sell products
and services.

3. EVOLUTION OF ECOMMERCE IN INDIA
• In 2002, India first came into interaction with the online E-Commerce via the
IRCTC.
• In 2003, After the unpredicted success of the IRCTC, the online ticket booking
system was followed by the airlines (like AirDeccan, Indian Airlines, Spicejet, etc.)
• Though online shopping has been present since the 2000 but it gained popularity
only with deep discount model of Flipkart, in 2007.
Today, India has one of the largest growing ecommerce sector in the world. *
*Source :- http://www.iamwire.com/2014/07/e-commerce-in-india-past-present-future/27805

4. MILESTONES OF INDIAN ECOMMERCE
• Since it’s inception in India, ecommerce sector has shown a tremendous growth in
all the sub sectors of ecommerce, whether it’s e-retailing or online banking.
• “India’s e-commerce market was worth about USD 3.8 billion in 2009, it went up to
USD 17 billion in 2014 and to USD 23 billion in 2015 and is expected to touch
whopping USD 38 billion mark by 2016,”
• Increasing internet and mobile penetration has provided the e-commerce sector in
India the unique opportunity to companies connect with their customers.
• By 2020, India is expected to generate $100 billion online retail revenue out of which
$35 billion will be through fashion e-commerce.

5. COMPOSITION
71%
20%
5%
4%
Share
Travel Agencies Retail and Marketplace Financial Services Classifieds
Source : - www.novonous.com

6. KEY DRIVERS
• Explosive growth of Smartphone and Internet users.
• Rising standards of living as result of fast decline in poverty rate.
• Busy lifestyles and lack of time for offline shopping.
• Availability of much wider product range
• Competitive prices compared to brick and mortar retail.
• Evolution of Million-Dollar startups like Jabong.com, Saavn, Makemytrip,
Bookmyshow, Zomato Etc.

7. POTENTIALS OF GROWTH
• Penetration of Internet is one of the most important driver of growth for the
ecommerce sector.
• Among the top 20 countries, India is the one with the lowest penetration: 19% and
the highest yearly growth rate.
46%
87%
19%
86%
53% 59%
CHINA US INDIA JAPAN BRAZIL RUSSIA
Internet Penetration as percent of Population
(2014)
Series 1 Column1 Column2
Source :- http://www.internetlivestats.com/internet-users/

8. UNTAPPED SUB-SECTORS
• Most of the Indian ecommerce consists of travel agencies and travel based companies along
with good amount of retailing websites. Apart from this, there are few more fastest growing
and untapped sub sectors
o Online Medicine & Health care Sector ( Practo )
o Hyperlocal shopping ( Grofers, Bigbasket )
These sub-sectors have very few players as of now and show a great potential for future.

9. GOVERNMENT POLICIES
• To give a boost to Indian B2B ecommerce sector at even more faster rate Indian
government has allowed 100% foreign investment in business-to-business (B2B) e-
commerce, as of 1st April, 2016.
• This would also give a boost to “Make in India” programme of the government.
• Government still needs to look into anti-piracy policies like DMCA (Digital
Millennium Copyright Act) to give a boost to sales of digital goods.

10. HOW IS IT HELPING ECONOMY GROWTH?
• It is bringing efficiency in supply chain what is reflecting in lower price of goods.
• E-Commerce is also creating jobs.
• It facilitates shopping anytime, anywhere and hence creates a convenience of shopping.
This has lead to higher consumptions of goods and services.
• It has increased the reach for both B2C and B2B businesses.
• Has brought down the operational costs of businesses.
• It has connected towns with cities, which allows operating small businesses such as
handicraft business from smaller places and hence helping them grow.
All the above mentioned results ultimately lead to creation of a better markets and economy.

11. HARSH EFFECTS
• Although ecommerce has shown a tremendous growth and has been a boon for our
economy, it has disrupted the offline markets.
• Heavy discounting online, has affected small offline retailers very harshly. Offline
retail markets have seen a big decline in sales, in the last few years.
• Price wars have led it illegitimate practices buy online retailers. ( Fake products,
piracy etc., fake discounting )

12. FUTURE SCOPE
• With the increasing number of smartphone users in India, the penetration of
Internet is increasing. This will open up many more opportunities for the ecommerce
sector.
• Sub sectors like medicine, health care, hyper local shopping are still to be tapped.
• Tier 3 cities and towns are still to be covered by logistics partners. ( Indian post can
be very helpful here )
• B2B ecommerce policies can help a lot for major exports in future.

13. CONCLUSION
“ Ecommerce has its own pros and cons. But pros having an edge over
cons, lead to a boost towards making better economy and markets. It
has brought towns and cities together to work hand in hand giving
opportunities to small businesses located in tier 3 cities and towns.
Ecommerce sector of India has huge potential and expected to show
even better results for our economy in future.”