The document summarizes several macro factors affecting e-commerce in India. Electronics and apparel constitute 70% of India's growing e-commerce market, which is expected to reach $200 billion by 2027. Major players have seen growth during COVID-19, with marketplaces seeing a 130% jump in orders. The government is working to regulate the industry through data access rules and promoting initiatives like investment in broadband infrastructure. E-commerce is expanding beyond major cities, with tier 2/3 cities contributing 66% and 53% growth in tier-3 markets for fashion.

1. MACRO FACTORS
AFFECTING
E-COMMERCE
Group 1
Aakansha Singhal
20DM001
Aaryan Jain
20DM003
Adyasha Mishra
20DM012
Arushi Kohli
20DM046
Chitransh
20DM067
Deepanshi Pandey
20DM069

2. MARKET
SIZE
Fierce competition from local
and foreign companies
Electronics & apparel constitute nearly
70% of the E-commerce market
Exponential growth over years
Market value in 2020 - 60 billion USD
Expected to reach 200 billion USD by 2027

3. MAJOR PLAYERS
10 Million Internet
Users Added Monthly
100% FDI Permitted
In B2B E-commerce
$200 Billion E-Retail
Market by FY 2026

4. IMPACT OF
COVID-19
 Rising demand from hinterland of India
 Marketplaces saw an overall 130% jump in orders
 Only 1.6% of the total retail stores in India are online
 Marketplaces saw an overall 130% jump in orders
 E-commerce witnesses 17% growth post COVID-19
 65% growth in brands establishing own website

5. IMPACT OF
COVID-19
 Pre-COVID Constant Growth of 20%
 Beauty and Wellness - 130%
 FMCG and Agriculture - 55%
 Health and Pharmaceutical - 38%
 Tier II and Beyond cities contribute
around 66%
 53% growth in Tier-3 markets with fashion
and apparel being the top drivers.
0 20 40 60 80 100 120 140 160
FASHION
ELECTRONICS
BEAUTY & WELLNESS
FMCG & AGRICULTURE
HEALTH & PHARMACEUTICAL
OVERALL
Percentage Change
Categories
Percentage Increase in Demand
Percentage Increase from February to June in 2020

6. ECONOMIC
POLICIES
Enforced and
Upcoming in India
E-commerce draft finalised by The Department for
Promotion of Industry and Internal Trade (DPIIT)
This draft :-
 provides regulations on issues such as security,
law and order
 enforces law, taxation and safety of individuals
 enables the government to have speedy access
to data flow
Amazon/Google Face Tough Government
E- Commerce Rules
 Companies will be required to make data
available to the government within 72 hours.
 It could include information related to national
security, taxation and law and order.
 It would provide consumers the details of sellers,
including phone numbers, customer complaint
contacts and email.

7. MAJOR
INITIATIVES TAKEN
BY THE
GOVERNMENT TO
PROMOTE
E-COMMERCE
IN INDIA
 In order to increase the participation
of foreign players in E-commerce,
Indian Government hiked the limit of
FDI in E-Commerce marketplace model
to up to 100% (In B2B models).
 Heavy investment made by the
Government in rolling out fiber
network for 5G will lead to a great
boost for E-commerce in India.
 In Union Budget of 2018–19,
Government allocated INR 8,000 crore
(US$ 1.24 billion) to Bharat Net Project
to provide broadband services to
150,000-gram panchayats

8. TYPES OF INFLATION
Demand
Pull
Effect
Cost
Push
Inflation
Built-In
Inflation

9. COMMONLY USED
INFLATION INDEXES
1. Consumer Price Index (CPI)
 Released by Central Statistics Office
 Measures both Goods & Services
 Base Year : 2012
2. Wholesale Price Index (WPI)
 Released by Office of Economic Advisor
 Measures Goods only
 Base Year : 2011-12
Source : Official Website of RBI

10.  B2B E-Commerce leads the way
 Double-Digit Growth for B2C
 Economic & Behavioral Changes
 E-Commerce influences demand patterns
OVERALL
IMPACT

11. THANK YOU