The document provides an overview of e-retailing in India, including: 1) It discusses the evolution of e-tailing in India before and after 2007, noting key developments and players. 2) Market size and growth rates are presented, showing strong growth in the Indian e-commerce sector. 3) The various e-commerce formats used in India are described, including business-to-consumer models. 4) Challenges around order fulfillment and logistics are examined, along with factors needed for e-tailers to gain a competitive advantage in India.

1. School Of Future Studies & Planning
DAVV, Indore
Presentation on
“A Model For Growth of E-retailers in India”
(Research Papers Review)
Submitted to: Submitted By:
Mr. Vandit Hedau Jayant Nannore
Faculty SFSP, DAVV MBA(BF)

2. Introduction
• What is E-Commerce?
In a layman’s language; purchasing products on the Internet is called
ecommerce.
It is an act of having a commercial activity over an electronic medium.
In simple words, Electronic commerce involves buying and selling of goods
and services over the World Wide Web. Customers can purchase anything
right from a car or a cake sitting comfortably in his room and gift it to
someone sitting miles apart just by click of a mouse.
• What is E-retailing?
 E-retailing is B2c(business to customers)business model that executes a
transaction between businessman and final customer
 Subset of e-commerce
– e-tailers Retailers who sell over the Internet

3. Evolution of E-tailing in India
(before 2007)

4. Evolution of E-tailing in India
(after 2007)

5. Market Size & CAGR Stat

6. E-commerce formats in India

7. Foreign E-tailers Player in Indian Market

8. The e-commerce matrix
Business Consumer Government
Business B2B B2G
Supply
B2C Contract bidding,
Cain, Wholesalers Retailers (Goods Privatization
or Services)
Consumer C2B C2C C2G
Public Bidding Public flea markets Public Government
marketplaces, auctions
Auctioneers
Government G2B G2C G2G
Tax and fee Tax and fees Budget allocation
collection collection

9. Business-To-Consumer Business Model
In this form business must
develop attractive
electronic marketplaces to
entice and sell product
and services to consumer
 Portal
 E-Tailers
 Content provider
 Transaction broker
 Market creator
 Service provider
 Community provider

10. Distribution Channel
(Conventional v/s online)

11. Traditional Retailing network
(Physical Retail store)

12. E-Retail Network

13. How the business model of online retailers add
value compared to physical retailers?
Physical Retailers Online Retailer or E-tailer
 Advantages  Advantages
• Provides face to face • Cost Effective: does not have
to invest in physical
selling, making shopping an infrastructure (store, real
experience. state, sales force) except
• Customers get access to warehouse
better Product information • Provides ease and
Convenience of shopping at
through in-store sales anytime and from any location
representatives.  Disadvantages
 Disadvantages • Have to invest in Logistics
• Higher Cost of Operation operations
• Highly competitive
• Little customer interaction

14. Order and Placement Process

15. ESSENTIALS FOR CUSTOMERS

16. Delivery network
• Acquire a local player to
make the distribution
system easy.
• Establish a warehouse in
every major city in India like
Mumbai,Delhi,Chennai,Kolk
ata,Hyderabad etc.
• Agent system can play a
vital role to deliver your
product quickly .

17. • Efficient inventory system.
• India is a geographically complicated country
and languages varies from state to state so
you need to employ local people for the
product delivery system.
• Use effective communication device to locate
your product at a particular instances.
• The packaging system should be so strong that
it could protect the product.

18. Challenges with order fulfillments:
Logistics
Problem area: Order Fulfillment is an important part of
ecommerce Value chain. Most ecommerce providers use
a combination of their own logistics teams and also tie-
ups with leading local logistics.
Based on research, the following leading names in
logistics names were revealed:
1. DTDC logistics (part of DHL ,all India presence)
2. Gati (Maharashtra, Karnataka)
3. BlueDart (part of DHL ,all India presence)
4. VRL Logistics (Karnataka)
5. Aramex logistics (Maharashtra, Karnataka)
6. Vichare courier( Maharashtra)
Most of these provide tracking services for customers
and people are willing to pay a premium for proper
delivery.

19. Characteristics of Successful E-Tailing
– High brand recognition
– A guarantee provided by highly reliable or well-known vendors
– Digitized format
– Relatively inexpensive items
– Frequently purchased items
– Commodities with standard specifications
– Well-known packaged items that cannot be opened even in a
traditional store

20. Product Categories Suitable for E-tailing

21. REASONS FOR NOT SHOPPING
ONLINE

22. Factors to gain Competitive advantage

23. The Future of Indian E-Retail Industry

24. Online shopping behavior among Indians
(based upon survey in 4 metro cities)
• 60% online users in India
visited a retail site in
November 2011.
• The number of active online
shoppers is projected to
reach 38 million by 2015
• 49% online consumer is
young male population
ranging between 21 and 29
years.
• Tier-II & Tier-III online
consumers are aspiration
driven.

25. THANK YOU!