“TO STUDY THE GROWTH OF E-COMMERCE INDUSTRY IN INDIA”

“TO STUDY THE GROWTH OF E-COMMEREC INDUSTRY IN INDIA”
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PREFACE
The report is an integral part of VI semester curriculum of Bachelor of Business
Administration(BBA). The title of project is about “To Study the Growth of E-Commerce
Industry in India.”
My report mainly focuses on Scope and Growth of E-Commerce Industry….
I did a Descriptive study about various trustbuilding factors in ecommerceindustry. In this
report I have put my efforts to compile the data with utmost accuracy and givethe views to
the best of my judgment. I hope that the finding of the research report work must conform to
the companies’ expectation and suggestion made on that basis must be useful for the future
prospect.

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ACKNOWLEDGEMENT
I am thankful to the RAJ SMS for giving me an opportunity to work on this research report. I
take this opportunity to those who helped me to make this report, a better work through their
constructive criticism, helpful suggestions and overall support.
I owe my sincere thanks and gratitude to Ms. Shiva Singh (Asst. Prof.) for extending her Co-
operation, support and guidance right from conceptualizations to the completion of the
project.
Last but not the least , I must acknowledge the encouragement and help given by my beloved
parents ,friend teachers ,family members ,whose best wishes and emotional support have
enabled me to complete this research report.

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DECLARATION
I,PRABHAT KUMAR PANDEY Roll. No. 168134017 student of Raj School of
Management Sciences (affiliated to MGKVP Varanasi.), hereby declare that the Research
report on“To Study the Growth of E-Commerce Industry in India.” is an original and
authenticated work done by me.
I further declare that it has not been submitted elsewhere by any other person in institute.
PRABHAT KUMAR PANDEY
BBA (Batch) 2012 – 2015

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Table of contents
Part 1
Chapter 1
Industry profile
Introduction of E-commerce ……………………………………………………………….....7
History of E-commerce ……………………………………………………………………9-12
SWOT Analysis of the Industry ………………………………………………………….13-17
Growth in sale of Industry ……………………………………………………………….18-20
Growth in human resource of the E-commerce industry ………………………………...21-23
Future growth prospects of Indian E-commerce sector ………………………………….24-29
Reason for growth of E-commerce sector in India ………………………………………30-35
Problem face Industry …………………………………………………………………....36-38
Tool of E-commerce ……………………………………………………………………..39-43
Part 2
Chapter 2
Research methodology
Problem formulation ……………………………………………………………...................45
Objective of Research ……………………………………………………………………….46
Scope of study ……………………………………………………………………………….47
Method of data collection ………………………………………………………………..48-49
Period of study ………………………………………………………………………………50
Statistical tool & techniques used …………………………………………...........................50
Limitation of the study …………………………………………………………………...51-52
Significance of the study …………………………………………………........................53-54

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Chapter 3
Analysis of data
Analysis of data …………………………………………………………………………..56-69
Chapter 4
Finding ……………………………………………………………………............................72
Conclusions ………………………………………………………………………………….73
Suggestions/Recommendations ……………………………………………………………...74
Questionnaire ……………………………………………………………………….........75-79
Bibliography ………………………………………………………………………………....80

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PART – 1
Chapter-1
INDUSTRY PROFILE

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Introduction of E-Commerce Industry
Introduction
What is that you do when you need to gift your parents or friends on their birthday or for any
festival? The majority of people today hop to the internet, browse through a few websites that
sell gift items like books, clothes, perfumes etc. and order one of them to be dispatched to
the person’s address. It takes just a few minutes at the maximum and a click! Very few
people today bother or even have the time to drive down in the heavy traffic to some boutique
and go through all the items there, hop on to a next one and so on and finally select a gift and
then go to the courier shop to parcel them off.
The growth of e-commerce industry has made lives easier for countless people. It’s not just
gifts but even everyday items like grocery and notebooks and pens that can be bought online.
Books, clothes, shoes, jewellery and accessories, travel tickets and hotel bookings are some
of the commonly purchased items online.
In looking over the challenges identified above, one certainly could ask, “So what is really
different about e-business?” Overall, the answer that firms have faced most of the challenges
identified in the past, and that this simply represents the latest iteration of these challenges.
Organizations have faced the challenge of integrating autonomous businesses. A
Considerable literature has grown up around all of the problems in managing projects.
Any technology-based firm must deal with developing people skills among their Technical
managers, be they engineers, financial analysts, or software developers.
Managing across generations is certainly not a new issue. And both the job churn and the
ensuing talent shortage are inherent in any technological revolution. Thus, again, what’s
new? We argue that two factors distinguish managing people in an e-business today from
managing in a brick and mortar business.
The first factor distinguishing e-business from traditional business is the complexity of the
problem. What seems different about managing e-businesses today stems from the
Interaction of facing all of these challenges simultaneously. While organizations may have
faced each of these challenges before, they have probably never faced so many challenges at
the same time.

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Market Size and growth:-
India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in
2011 and to $14 billion in 2012. About 75% of this is travel related (airline tickets, railway
tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5%
($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an
estimated 30% CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are
thebiggest categories in terms of sales.
E-commerce can be divided into 7 subsections:
• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a
"virtual mall"
• Buying or selling on websites and/or online marketplaces
• The gathering and use of demographic data through web contacts and social media
• Electronic data interchange, the business-to-business exchange of data
• E-mail and fax and their use as media for reaching prospective and established customers
(for example, with newsletters)
• Business-to-business buying and selling
• The security of business transactions

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History of E-Commerce
The rise of internet companies in India started in the mid-1990s. The first Indian internet
companies mainly featured online classifieds, matrimonial and job portals. The low
penetration of internet, lack of awareness and lack of development and confidence in online
payment systems were reasons for Indian internet companies not actively engaging in e-
commerce.
It was only in the mid-2000s, after the dot com bubble burst that e-commerce industry in
India started to take off. The first e-commerce services available were mainly offered in the
travel industry. With the proliferation of low cost carrier airlines, ticket offering started to be
made online. Even today travel booking websites hold a majority share of the Indian e-
commerce space.
A couple of years later, the online retail industry started taking shape and it is rapidly
growing today as brick and mortar stores are being replaced by click-only models or brick
cum click models of business.
E-commerce space relating to the deals and discounts websites started becoming popular
towards 2009 and onwards while the concept of social media for e-commerce is still trying to
make a foothold in the markets despite having one of the largest populations using Facebook.
(Figure 1.1: Timeline Indian E-Commerce Industry)

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The Indian e-commerce markets offers services in B2B, B2C and C2C segments with most of
the players operating in the B2C segment.
Started in India in the year with the introduction of B2B portals in 1996, now E-Commerce is
all set to become one of the successful medium for business transactions.
Between 2000 and 2005: The first wave of E-Commerce in India was characterized bya
small online shopping user base, low internet penetration, slow internet speed, low consumer
acceptance of online shopping and inadequate logistics infrastructure. Thereafter, the IT
downturn in 2000 led to the collapse of more than 1,000 E-Commerce businesses in India.
Following this, there was muted activity in the space in India between 2000 and 2005.
Between 2005 and 2010:There were basically two major transitions that took place that
aided in the build of E-Commerce story in India. They were:
 Online Travel:The entry of Low Cost Carriers (LCCs) in the Indian aviation sector in
2005 marked the beginning of the second wave of e-Commerce in India. The decision
of LCCs to sell their tickets online and through third parties enabled the development
of Online Travel Agents (OTAs). They developed their own websites and partnered
with OTAs to distribute their tickets online. The Indian Railways had already
implemented the e-ticket booking initiative by the time LCCs started their online
ticket booking schemes.
 Online Retail: The growth of online retail was partly driven by changing urban
consumer lifestyle and the need for convenience of shopping at home. This segment
developed in the second wave in 2007 with the launch of multiple online retail
websites. New businesses were driven by entrepreneurs who looked to differentiate
themselves by enhancing customer experience and establishing a strong market
presence.

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2010 onwards:
Group buying: Starting in 2010, the group buying and daily deals models became a sought
after space for entrepreneurs in India, emulating the global trend. Group-buying sites have
seen a significant rise in the number of unique visitors and membership.
Social Commerce: It is a key avenue for E-Commerce players to reach out to target
customers. Companies have started establishing their presence in the social media space for
branding activities, connecting with customers for feedback and advertising new product
launches.
Present Scenario:India’s E-Commerce market grew at a staggering 88% in 2013 to $16
billion, riding on booming online retail trends and defying slower economic growth and
spiralling inflation, according to a survey by industry body ASSCHOM.
India’s E-Commerce market was about $2.5 billion in 2009; it went up to $6.3 billion in 2011
and to $16 billion in 2013 and is expected to growhuge $56 billion by 2023 that would be
6.5% of the total retail market.

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(Figure 1.2)

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SWOT Analysis of the Industry
Most of the time we see that the use of electronic techniques for doing business
addvalue either by the reducing transaction cost or by creating some type of network
effect, or by a combination of both. In SWOT analysis (the acronym is short
forStrengths, Weaknesses, Opportunities and Threats), here we try to find out
thestrengths and weaknesses of ecommerce in respect of Indian business
environment.Then after we try to identifies opportunities presented by that environment
and the threats posed by that environment.
Strengths:
Global market:
E-commerce biggest strength is the boundary less access inother word no brick
structure is mandatory to do business or no specificboundary is required. It enables all
the companies to expand them to global level. The widening of geographic retail markets may
facilitatethe development of global retailers.
Time saving:
Transaction through internet is no doubt very fast.It saves timeby reducing physical
movement.
No time constraints:
The concept of 25X7 shows that online Trans can be used anywhere any time as there are no
time constraints.
Price/Product comparison:
Information and to choose are some of the right which every consumer has. On the same
footing ecommerce provide platform to consumers to compare price and product effectively
and efficiently. It will tend to have far greater bargaining effectively and efficiently. It will
tend to have far greater bargaining power with suppliers than traditional local ornational
retailers.
Cost effective:
Elimination of long chain of middle man, decreasing need of having brick infrastructure and
outsource logistic are helping a small businessto stand at par with giants.

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Flexible target market segmentation:
The success of business depends on rightchoice of segmentation. Target market segment here
in e- commerce is flexible
Can bemodified any time.
Fast Exchange of information:
The buying is just a click away from the seller. No physical movement is required, no hunting
of right product at right price is todone by the consumer this make the buying process faster.
Niche Market:
It is a concept of sub segmentation where the products of rare species areavailable without
putting some special efforts by consumer. Almost everything can be sold on internet. Even if
products targeted to smaller markets the buyer will be somewhere on net.
Weaknesses:
Security:
Security is a biggest challenge in to progress of e - commerce.Customer always found them
insecure especially about the integrity of the payment process.
Fake websites:
Many fake websites are available on net which promises better service and secure dealing.
These web sites can not only disgrace ecommerce but also bring bad name to ecommerce.
Fraud:
Personal and financial details provided for trading purpose are misusedby hackers their
personal undue interest.
Fewer discount and Bargaining:
Hardly online businesses offer discounts andbargaining cannot be possible.

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Long delivery timing:
The task of Delivery is usually outsourced, who do notcare about the timing of the seller. They
provide their services as per their own convenience. Sometime the delivery time may extend
to days or weeks which one cannot wait for.
Impossible of Physical Examination:
product whose choice is merely depend on its physical condition of the product with need
personal touch before selection are not suitable for e-commerce business online product
cannot be touched, wear or sit on the products.
Limitation of Product:
Only a limited number of products can be available.
Limited Advertising:
Limited advertising opportunities are available because in e commerce one cannot go for mass
advertising. The advertising is limited only to computer literate person and out of them only
those who are comfortablewith e-commerce applications.
Customer’s satisfaction:
There is no physical and personal or direct face to face interaction between customer and the
seller. Therefore the scope of convincingthe customer does not exist.
Opportunities:
Changing Trend:
People are very brand conscious. They are interested inbuying branded stuff rather than local.
If such stuff is available cross border they will not mind it ordering through e-commerce. E-
Commerce is fast andeffective even financial transactions can be made from any part of the
world. People of tomorrow will feel more comfortable to buy products throughinternet only.

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Increase Number of user:
Daily number of internet users is increasing. People feel more comfortable to shop online.
Regular Global Expansion:
E commerce can be operated anywhere any time without any interruption. It always has a
scope of expansion. All new population and existing population who is not the user of e
commerce are thetarget expansion.
High Availabilities:
A weak long with and every click of the mouse business is in operation. Those who are busy
in day time andcannot spare time for them self, have all the opportunity to shop as per
their convenient time even during late night hours.
Wide Business Growth:
E-business has wide scope and broader vision to grow. Business always took place in gap.
Gap filling is a never ending process hence the growth of business is also never ending
process.
Advertising:
Advertising is cost effective as compare to conventional offlinesystem.
Threats
Competitor:
Along with local competition, global competition also exists. Competition is increasing day
by day. Big companies have already entered in this field. They are making people habitual at
the cost of their companies.
Changes in environment, law and regulation:
Change in trend, fashion and fad can distress E Commerce side by side change in law and
regulationscanalso affect it.

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Innovation:
Customers now a day are always in a search of innovative products and technique.
Innovation will always work as an extra burden on the pocket of consumer, be either in
product, place, promotion and even price.
Privacy Concern:
Fears that information can be misused lead to spam e mail oridentity fraud.
No Direct Connection:
In e commerce there is no direct interaction between customer and the seller. There is no
scope of bargaining. People prefer to buyphysically as compare to online to
experiencepersonalfeel.
Fraud:
Persons using unfair means to operate ecommerce can damage the confidence and faith of
common people.
Risk:
Nature of fraud.

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Growth in sale of the Industry
Leading research firm E-Marketer predicts the e-commerce sales in India will grow at a
phenomenal rate during the CY 2015 and touch $7.69 billion. That would be a huge leap from
the $5.30 billion sales made by this sector in the year just ended, and an impressive increase of
45.2%. But there is more to this than meets the eye!
(Figure 1.3)
And here is the comparison of Total Retail sales vs Retail Ecommerce sales as published by E-
Marketer.
A closer look at this growth chart of total retail and retail ecommerce sales in India over the
2013-18 period shows:
 The total retail sales in India will increase from the $717.73 billion level touched by it
during CY 2014 to $818.33 billion during 2015 and go on to touch $1,244.58 billion
by 2018.
 The total retail sales is growing at an impressive rate, registering a double digit growth
figure year after year. E-marketer predicts the rate of growth to pick up by the end of
this year and the total retail sales to grow consistently at a rate of 15% from 2016
onwards.

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E-commerce looks even more promising:
Up from $3.59 billion in 2013 to $5.30 billion in 2014 (a phenomenal increase of 47.6%), it is
expected to grow by 45.2% this year and reach $7.69 billion. By the end of 2018, it is
expected to touch $17.52 billion.
The ecommerce sales (which includes all products ordered over the internet except travel)
continues to register an unprecedented growth and increase by leaps and bounds over the
2013-2018 period covered by the report.
However, inspite of the amazing rate at which ecommerce sector is growing, it continues to
form only a very small part of the total retail sales in the country.
Online retail sales which account for only 0.7% of the total retail sales in 2014 are expected to
grow marginally to 0.9% during this year and remain a miserable 1.4% even after the next four
years. The ecommerce share continues to hover around a very dismal looking 1% mark.
Ecommerce sector in the country which is still at a nascent stage is bubbling with activity at
the moment. Major international players like Amazon are thriving here inspite of the FDI
restrictions, while leading Indian portals like Flipkart and Snapdeal are also trying to get
bigger and better.
The year 2014 saw Flipkart attract nearly $1.8 billion from foreign investors inspite of
analysts raising a huge question mark about it being over-valued at $11 billion. Similarly,
Snapdeal got a $627 million boost from one of its biggest investors Softbank.
Amazon which is relatively new on the Indian scene inspite of having firmly established itself
as the king of online retail at the global level has already firmly entrenched itself here. Even
though it operates on the marketplace model due to FDI restrictions, the leading online retailer
does not want to quit the Indian market. Infect, they are looking forward to improve their
presence in India by further pumping in $2 billion in the Indian leg of their operations this
year, as promised by their founder owner Jeff Bezos during his visit to India in 2014.

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Indian Ecommerce scene looks bright & promising:
The online retail sector is completely dependent on the internet. As more and more people in
the country are getting connected to the internet, the sector is getting a huge shot in the arm.
Though the rate of internet penetration in the country is among the poorest in the world, the
number of those connected is rising rapidly. An IAMAI report had already mentioned India
crossing the 300 million user mark last year and is expected to touch the half a billion mark by
2016.
Besides that, the smartphone penetration in India is increasing at very fast clip. Cheaper entry
level smartphones have made it easier for people to get connected to the internet from their
handheld devices. Add to it the fact that the percentage of young population in India (who are
the most active online buyers) is extremely huge. The internet is also getting cheaper. All
these factors together make the future look bright for the online retail industry.

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Growth in human resources of the E-Commerce Industry:
Hiring in Indian E-Commerce market is posed for an explosive growth. As per research
accomplished by various HR consultancy firms, it has been revealed that more than 50,000
jobs would be generated in the next 2 to 3 years by Indian E-Commerce players. As per a
research done by HR consultancy firm Randstad India, it has been found that hiring by E-
Commerce players will increase 20-30% in the next 2-3 years as a several new domestic
ecommerce start-ups will enter the market, along with entry of big players such as Amazon
which is increasingly trying to gain foothold in this emerging market. Additionally, there are
several other MNCs active in this market which wants to establish back office and technical
support in India.
Another HR firm Unison International said that although hiring in E-Commerce sector had
been slow in the last couple of years, it will increase to more than 30% this year as various
established brands in clothing and fashion sector will start online retail.
Overall, 15,000 – 50,000 new jobs would be generated by Indian E-Commerce in the next 3
years.

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For example, the recent Flipkart-Myntra deal worth millions of dollars can actually act like a
catalyst for inciting further growth in this sector. Myntra vice president- human resource Pooja
Gupta recently said, “The deal will only make Myntra’s fashion business stronger and we will
target more aggressive scale – to this end, our hiring will continue to be extremely aggressive
but selective,”
In another instance, Amazon said, “The industry is growing rapidly and there is still a huge
potential for growth. Likewise, we have grown exponentially over the last 11 months and will
continue to see growth. Our hiring will continue to match this pace and grow accordingly,”
As more and more Indians choose Online medium for their shopping requirements, travel
arrangements and services such as bill payments, there would be a great demand in terms of
skilled human resource in areas such as data analysis, social media, digital payment area,
programming and engineering.
At least one in every nine students graduating from the 2015 batch across IITs is likely to join
an e-commerce firm or a start-up, according to recruiters. E-commerce companies are
expected to make a minimum of 1,000 job offers during the first quarter of 2015 to meet
aggressive growth plans.
The booming Internet commerce sector (e-commerce) was one of the major growth drivers of
the economy in 2014. The nascent, yet growing, industry not only played a crucial role in
generating new jobs but also in perking up salaries.
CEO, Manusis Technologies, said e-commerce will continue to grow faster than expected due
to better economic growth and an investor-friendly and more focused government. This will
fuel ancillary and related businesses such as digital payments and social media, leading to
more jobs.With frontrunners like Flipkart, Snapdeal, Amazon, MakeMyTrip, Gibbon,
Bookmyshow and Facebook, the $18-billion industry saw a 100 per cent rise in jobs across all
levels in various verticals, said recruiters for e-commerce firms and start-ups.

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The recruitment firms believe that as the industry matures and evolves from e-commerce to
mobile commerce, the sector will continue to hire more fresh recruits, and also focus on
specialised skills such as software product development, app development, data analytics, and
quality and process.
In India, most e-commerce firms increased salaries by 10-40 per cent in 2013 and 2014 and
are paying annual salaries of ₹10 lakh to ₹23 lakh at the entry level.
At mid- and senior-level too, the salaries are rising by 10-15 per cent every year and
employees are given stock options. The upscale is driven by robust positive sentiment both
amongst consumers as well as the industry. The trend is likely to continue, say experts.
Ecosystem
“Although e-commerce has been around in India for the last 15 years, the ecosystem has
started to fall in place now. Today, India is in the middle of a digital revolution. The coming
year will also see several new start-ups doing only mobile commerce. This will open up a lot
of job opportunities in India in 2015,” Kumar added.
Rajiv Burman, Managing Partner of recruitment firm Lighthouse Partners, said in the last six
months, the e-commerce sector witnessed several top-level hires with corporate honchos from
telecom, logistics, retail and other dotcom companies joining the sector attracted by higher
salaries, equity ownership and fast pace of growth.
At the CEO level of larger start-ups like Flipkart or Myntra, one earns between ₹1 crore and
₹2 crore as salary plus stock options. Similarly, a merchandising manager who earns ₹10-15
lakh in a retail firm can expect double in an e-commerce company.
War for talent
Besides, the war for talent is turning fierce as large business houses including Reliance
Industries, Aditya Birla, Tata, Future Group and Arvind Retail are now clashing with early
movers Flipkart, Snapdeal and Jabong to hire managers. With foreign players such as
Amazon, Rakuten and Alibaba expanding aggressively, hiring is expected to grow by over 30
per cent and may create up to 50,000 jobs in the next 2-3 years, says human resources
consultancy Randstad India.

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Future Growth Prospects of Indian E-commerce Sector
According to a study by Forrester, the Indian E-commerce sector is set to grow the fastest in
the Asia-Pacific region at a CAGR of 57% between 2012-2016.
(Figure 1.4)
Though currently having one of the smallest bases, e-commerce market in India is set to grow
by more than five-fold by 2016 as the number of online buyers and per capital online spending
is expected to increase rapidly. Reasons for this potential growth include:
 Future of E-commerce in India India's e-commerce market was worth about $2.5
billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.
 India's retail market is estimated at $470 billion in 2011 and is expected to grow to
$675 Bn by 2016 and $850 Bn by 2020.
 The Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the
year 2011.
 Online travel market in India is expected to grow at a rate of 22% over the next 4 years
and reach Rs 54,800 Crore ($12.2 billion) in size by 2015.
 Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and
estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015. Overall e-commerce
market is expected to reach Rs 1, 07,800 crores (US$24 billion) by the year 2015 with
both online travel and e-tailing contributing equally.
Country
Sales in $ billion
2012 2016
India 1.6 10.68
Australia 23.2 35.4
Japan 63.9 97.9
China 169.4 356.1

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 Increase in annual disposable income per household by two and half time by 2015. It is
expected to grow at a CAGR of 5.1% during 2005 – 2025.
 Discretionary spending expected to rise to 61% in 2015 from 52% in 2005.
 Rise in the sales of PCs, tablets and smartphones as prices have declined.
 Increase in time spent online by an Indian. Average time spent by an Indian on the
internet is expected to increase to 21 hours per month in 2015 from the 17.4 hours
spent in 2011.
 Increase in the number of payment options. Number of online transactions is expected
to increase to 38 million by 2015, compared to 11 million in 2011. The number of
debit and credit card holders is expected to increase substantially to 350.4 million and
73.7 million respectively in 2014.
 Continuous reduction in the cost of internet.
Demographics of Indian E-Commerce Market:
According to analyst firm CLSA, demographics represent Indian internet’s biggest
opportunity. Almost 75% of India’s internet users are under the age of 34. As many of them
move into the earning segment in the years to come, Internet commerce is expected to get a
significant boost.
One of the lesser known factors behind e-commerce growth has been the increased adoption of
online buying model by smaller cities. With 30 million active Internet users in these cities, the
contribution to e-commerce sales in India is estimated to be around 40%. Lack of attractive
offline channels outside large metros coupled with increased brand awareness is driving these
consumers online according to industry reports.

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ICT Consulting at Frost and Sullivan, describes the rising acceptance of buying over the
Internet as more of a viral effect emerging out of a changing mind-set. “People start by buying
lower value goods and services and then progress to buying higher value items. What’s
driving growth is the growing confidence among early adopters, increasing maturity in the e-
commerce business model, penetration of convenient end-user devices, rising awareness
amongst new consumer segments in Tier 2 and 3 cities,”
Contrary to the general perception that women are prolific shoppers, a study by Google
reveals that online shopping is dominated by men – 63% men vs. 37% women. This could be
due to the lack of financial independence and access to banking facilities like credit/debit
cards among a larger population of Indian women.
People of the age group 18 – 35 years are the largest purchasers of items online, with a
majority among them having access to their own financial resources. Internet is accessed
primarily from home or workplace but there is a growing number of people who access
internet from mobile devices also. Currently it is estimated that 30% of online shopping
queries come from mobile phones.
Google study also reveals that almost half of the internet shopping comes from outside the top
four metros with apparel and accessories being the hottest categories. The number of repeat
customers from tier 2 and tier 3 cities is also an encouraging sign for e-Tailers.
According to the study by Google, 30% of online buyers were drawn to Internet shopping for
discounts, 37% of users valued the convenience of shopping from home and 29% appreciated
the expanded variety of products available online compared with what is available at brick-
and-mortar stores.

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(Figure 1.5)
E-commerce Opportunities:
It is not enough to merely have exciting online retail choices – the appropriate infrastructure
components to enable easy access is equally important. Wireless internet is one such critical
component expected to play a big role. With 900 million mobile subscribers in India today,
TRAI claims that 30o million use data.Broadband penetration has been exceedingly slow – in
fact, in just under a year, the active 3G user base of 14-15 million has surpassed the broadband
user base of 12 million. The launch of mass market 4G strategies by players such as Reliance
is expected to improve internet access further more.

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Social Commerce:
Social commerce is the use of social network in the context of e-commerce transactions.
Social commerce is a subset of electronic commerce that involves using social media, online
media that supports social interaction, and user contributions to assist in the online buying and
selling of products and services. It includes customer ratings and reviews, user
recommendations and referrals, social shopping tools, augmented reality, forums and
communities, social media optimization, social applications and social advertising. With
increase in number of people using social media for C2C conversations, recommendations and
discussions, e-commerce players too have had to make their presence felt in this space to
address customer queries and complaints, to promote new products and offerings and to
connect with the customers to gain their loyalty. Hence social media is going to play an
important role in an e-commerce company’s growth strategy.
Mobile Commerce (m-Commerce):
E-commerce is slowly giving way to m-commerce as more and more users are accessing the
internet and shopping online through smaller devices like smartphones, tablets and notebooks.
Hence it becomes essential for the e-commerce companies to enhance their website features
and looks to match with the new devices being used for shopping. Developing apps for easier
mobile transactions is also essential to target this growing segment of consumers.
Despite slow PC penetration (just 55 million compared to 900 million + mobile devices), this
remains an important factor in the e-commerce ecosystem. The arrival of cheap tablets in the
sub INR 6000 and INR 10,000 range could drive up usage. Plus, as PCs come to be regarded
as consumer durables, their purchase priority is climbing while finance options are making
them cheaper.
Payment gateway:
The reluctance to use credit cards online has stymied e-commerce market growth in India.
This has been exacerbated by high drop-off rates (as high as 30%).This, and the existence of a
robust cash or ‘black’ economy in the country, has resulted in the increasing popularity of
Cash on Delivery (CoD) payment delivery mechanism. Around 50% of e-commerce
transactions are settled through CoD.CoD also has its own challenges such as a high return
rate (as high as 20-30%) by customers dissatisfied with a product/latdelivery. “CoD works

29
best for certain brands/categories that required minimum customization and has high
predictability.”
Sell and Purchase Everything:
Not surprisingly, e-commerce adoption is highest for product categories that have low ‘touch
and feel’ requirements such as travel and ticketing and financial services. The apparel and
fashion segment has also seen a number of initiatives, especially in niche areas such as baby
clothing and premium brand websites.
As the number of categories expands, average ticket values have gone south. Industry data
shows that previously, buyers from high income segments such as SEC A formed the bulk of
online purchasers. With greater e-commerce penetration, cheaper goods, even second hand
cell-phones are being bought on-line.
Indian E-commerce Market Spilt
Almost 75% of the e-commerce space is controlled by travel websites but the online retail
segment (both consumer electronics and apparel and accessories) is also growing quickly
(Figure1.6)

30
Reasons for Growth of E-commerce Sector in India:
The e-commerce sector in India started to grow rapidly from 2005-06 onwards. The main
factors for this rapid growth in the revenues and number of e-commerce companies operating
out of India was the growth of a young tech-savvy generation employed in IT companies, rise
in disposable income, changing lifestyles and easier access to banking and internet facilities.
(Figure 1.7, total online consumer revenue (Rs crore))
Future of E-Commerce
The entry Amazon into Indian markets with its e-commerce website amazon.in has led to a
new chapter in the e-commerce industry in India. With direct FDI still not permitted, Amazon
has come up with an innovative business strategy to enter this sunrise sector in India. It has
brought together different online vendors on a single platform. This could be a strategy that
even bigger Indian players could use in the long run as the markets mature.
With the e-commerce space starting to mature, a consolidation is expected in the e-commerce
sector. A large number of smaller players who see smaller volume and sales turnover might
get absorbed by the bigger players or may be forced to shut down. With profit margins being
thin in this sector, many of the smaller firms might get bought up by the larger ones.

31
Financial Analysis of E-Commerce Industry
Online Travel Agencies:
Makemytrip, Yatra & Cleartrip are the major Indian online travel agencies (OTAs)
Growth in India’s travel and tourism industry is the second fastest worldwide
 Largest component of the Indian e‐Commerce sector with a market share of about 70%
 India is poised to feature among the top five civil aviation markets in the world over
the next decade.
 The entry of low cost carriers (LCC) in the country made air travel affordable for a
large number of people.
 Domestic air tickets are driving the online ticketing market.
 India is witnessing the entry of international players and mushroom‐ing domestic
OTAs.
 OTAs have taken a physical form, with the establishment of new Makemytrip retail
outlet in Mumbai, to leverage their brand
 There is a clear perceived change in the approach of the OTAs, from e‐Travel to
m‐Travel
 Emergence of Meta search engines which enable consumers to view & compare tariffs
across different portals
Particulars Makemytrip Cleartrip Yatra
Year founded 2000 2005 2006
Unique monthly visitors 83 lakhs 85 lakhs 55 lakhs
Employee strength 1000+ 450 1000
Funding Public in 2010 $45mn* $56.40mn*

32
E-Retail:
There are many players in this segment, but the bigger players are notably Flipkart, Amazon &
Snapdeal
 Online retailers are moving to the marketplace (consignment) model from the
inventory‐holding model`
 Online retailers are developing in‐house logistical capabilities
 Complex tax structures are making decisions relating to warehouse locations difficult
for online retailers
 COD has emerged as a preferred payment choice for customers, accounting for at least
60% of transactions
 Due to the cap of 51% FDI allowed in B2C sector, dilution or complete exit is
prohibited, which proves to be a hindrance toforeign investors or buyers
 It has attracted investments of over $3bn due to the promising high growth nature of
the business from PE Funds &VCs(domestic & international)
 Underpenetrated segments, such as groceries, PCE (plumber, carpenter & electrician)
services are expected to grow

33
Flipkart Amazon Snapdeal
Net revenue (crores) 179169154
Loss (crores) 400321265
Loss in rupees (2014) 2.231.901.72
Year founded 200720132010
Notable Investors/BackersTiger Global, Accel PartnersParent CompanySoftbank, Blackrock
Latest Market Value$11bnN.A$2bn
ModelInventoryMarketplaceMarketplace
Funding so far$1.76bn$2bn*$866mn
Head OfficeBangaloreHyderabadNew Delhi
Employee Strength15000+8000+2000+
(Figure 1.9)
An analysis of the major e‐commerce players in the industry reveals poor profitability figures.
This is down to the extreme
Expansionist policies currently implemented as market penetration & customer loyalty are top
priorities.For any e‐Commerce firm, there are ‘levels’ of profitability in the consumer internet
space as follows;
 Covering cost of goods sold
 Institute a positive gross margin
 Gaining unit customer profitability over short term
 Achieve positive EBITDA
The following is a snapshot of the expenditure vis‐à‐vis the sales for some varied players in
the e‐commerce industry;

34
INR Crores Flipkart Makemytrip Snapdeal Myntra InfoEdge JustDial Jabong
Expenditure 3,228 1,174 431 341 339 319 203
Sales 2,846 1,115 154 212 506 461 203
(Figure 1.10)
As can be seen below, the expense to sales ratio is more than 1 in most peers;
In the defense of the e‐commerce industry, much of the initialinvestment was used to
overcome a lack of general infrastructure inthe country and awareness amongst the consumer.
Also, the currentstrategy indicates that most players ignore sustainability in the hunt forgreater
market share & valuation and that doesn’t do much to aid thebottom‐line. This is because
Internet commerce, in India, is about newtechnology and having no entrenched competition.
In this backdrop themodus operandi is ‘land grab’. The objective, therefore, is to get asmany
customers as quickly as possible, so that later competitors willhave a serious barrier to entry.
3,228
1,174
431 341 339 319 203
2,846
1,115
154 212
506 461
203
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Sales
Expenditure

35
Expense Ratio:
(Figure 1.11)
Problem face by Industry
Snapdeal, 2.8
Flipkart, 1.13
InfoEdge, 0.67
Jabong, 1
JustDial, 0.69
Makemytrip,
1.05
Myntra, 1.6
0
0.5
1
1.5
2
2.5
3
0 2 4 6 8
AxisTitle
Axis Title
Chart Title
Series1

36
The eCommerce industry in India is growing at a remarkable pace due to high penetration of
internet and sophisticated electronic devices. However, the recent growth rate of eCommerce
in India is far lagging behind than other developed countries. There are many big problems
and challenged on the way of an online merchant. Factors like safety and security of online
money transaction being the biggest problem along with others have curbed the smooth
expansion of the online industry in the country.
Although, major portion of e-business sectors have affected by the below mentioned
challenges but still there are few online giants like Makemytrip.com, flipkart.com,
Snapdeal.com who have overcome the challenges and represents the perfect growth trends of
eCommerce in India.
(Figure 1.12)

37
Poor Knowledge and Awareness:
When it comes to ratio of internet consumers, scenario is not so admirable one. Majority of
Indian rural population are unaware of internet and it uses. Surprisingly, most of internet
savvies or urban population are also suffering from poor knowledge on online business and its
functionalities. Very few are aware of the online corruption and fraud and thus darkness still
exists. A reliable survey reveals that 50% of Indian online users are unaware of the solution of
online security.
Online Transaction:
Most of Indian customers do not possess plastic money, credit card, debit card and net banking
system, which is one of the prime reasons to curtail the growth of ecommerce. Nevertheless, in
recent years, some of the nationalized banks have started to issue debit cards to all its account
holders. This is undoubtedly a positive sign for Indian online entrepreneurs.
Cash On Delivery:
Cash on Delivery (COD) has evolved out of less penetration of credit card in India. Most of
Indian E-commerce companies are offering COD as one of mode of payment for the buyers.
30%-50% of buyers are also taking advantage of this mode of payment while making purchase
of any product and service over internet. COD has been introduced to counter the payment
security issues of online transaction, but this mode has been proving to be loss and expensive
to the companies. It is seen that majority of the customers denied to make the payment at the
time of delivery of the product. Hence, companies tend to lose the sale along with product
transit fees. In order to curb the problem of COD, online companies should take some judicial
steps; otherwise basic logic behind the ecommerce business will be at risk.
Online Security:
In case of start-up and small business, Business owners are ignoring the importance of
authentic software due to budget constraints. They are even failing to take the initial steps to
secure and protect their online business through installation of authentic protection services
like antivirus and firewall protection, which indeed a crucial step for successful online
business players.In India, maximum number of business entrepreneurs used unauthorized
software in their server, which usually does not come with upgraded online security. Such
pirated software leaves room for virus, malwares and Trojan attacks and it is highly risky task

38
to make online transactions in the systems, which may disclose or leak sensitive details of
credit cards and online banking of the users. These kinds of droopiness should be banned in
Indian ecommerce sectors. Affiliation to SSL certificate should be imposed as a mandatory
action for every owner.
Logistics and Shipment Services:
In India, logistics and courier services required lots of improvement. While, perfect and strong
logistics service is one of the key reasons behind the success of any online company, India is
lagging far behind in this sector as most of the town and small villages are still not covered
under serviceable area of many of the courier and logistic companies. Ecommerce is hampered
in a big way owing to the limited services offered by the courier service companies.
Tax Structure:
Tax rate system of Indian market is another factor for lesser growth rate of eCommerce in
India in comparison to other developed countries like USA and UK. In those countries, tax
rate is uniform for all sectors whereas tax structure of India varies from sector to sector. This
factor creates accounting problems for the Indian online business companies.
Fear factor:
Fear of making online payment is a universal psychological factor of Indian customers. With
the spread of knowledge on online transactions and its reliability, some percentages of
customers have overlooked this fear and they are fearlessly engaging themselves in online
shopping. But still, majority of customers are not aware of online transactions and its security.
They often reluctant to disclose their credit card and bank details and preferred to stay away
from online world of shopping.
Touch and Feel’ factors:
Indian customers are more comfortable in buying products physically. They tend to choose the
product by touching the product directly. Thereby, Indian buyers are more inclined to do
ticketing and booking online in Travel sectors, books and electronics. Companies dealing with
products like apparel, handicrafts, jewellery have to face challenges to sell their products as
the buyers want to see and touch before they buy these stuffs.

39

40
TOOLS OF E-COMMERCE
A wide range of tools are available to allow an iSeries or AS/400e system to play a key role in
the development and deployment of e-business applications. Within the e-business/e-
commerce modernization strategy, a number of specific categories of tools can be brought to
bear:
Application Servers:
Development and execution environments, many of which come complete with developer
tool sets for creating applications that may interoperate with other like or unlike systems.
These are typically based on Java and open standards-based models.
Application Service Provider (ASP):
Solutionsinclude tools that allow Application Service Providers to create and/or deploy
applications via the Internet to multiple customers from the ASP's sites.
B2B Connectors & Enablers:
B2Bare tools specifically targeted to B2B applications and the Internet deployment of the
supply chain. Many of these tools focus on connecting buyers and sellers via e-marketplaces,
as well as other many-to-one and one-to-many scenarios, thus consolidating the catalog and
buying process.
Browser Front End to Existing Application Solutions:
Created with tools that can be used to connect core business application code to a browser-
based presentation of that code via Java or HTML with little or no actual coding required on
the part of the programmer.
New Browser-based Applications:
New Browser Can be built from scratch using tools that create The GUI clientpresentation
code and the back-end processing code.
Browser Utilities:
Itcan be used to create and maintain components of a Web-based application and can also be
used to build applets to access data. Other miscellaneous tools are included here as well.

41
CRM Solutions:
Tools that are designed to assist customer service functions. These tools include business rules
that can be implemented to enhance the support for customers.
EAI:
Enterprise Application Integration tools facilitate the connection of ERP solutions to other
back end applications, including the extraction of data from ERP, reformatting and transport
of the data across heterogeneous servers and loading of the data into the databases used by the
receiving application such as Business intelligence.
E-Commerce Solutions:
E-commerceare largely “already finished” applications that can becustomized with minor
effort to perform a specific purpose — generally a "shopping cart" type of application,
although some solutions may be dedicated to CRM or other mission-critical application areas.
Electronic Data Interchange/eXtensible Markup Language:
EDI/XMLrefers to tools that allow for the movement, via the Internet, of data between
vendors and systems within the supply chain.
Payment Servers:
Payment Service are tools that validate charge card purchases by contacting the holding card
company to confirm the availability of credit for the purchaser. These tools also provide
trusted security and confidentialityroutines, as is demanded more and more by consumers
when providing personal and private information.
Portals & Personalization:
Tools allow the creation of web portals and creation of personalized user interfaces. Users are
given the capability to save their configurations for future web site visits.
Web Access to DB2 UDB for AS/400:
DB2 UD2 for AS/400is delivered via tools and utilities that provide access from the browser
to DB2 UDB for AS/400 tables. These tools may simply provide database connection drivers

42
via JDBC, or they may be higher level tools with their own GUI for building queries against
DB2 UDB for AS/400.
Web Report Viewers:
It is tools that allow the end user to view iSeries or AS/400 print spool files via a browser.
These tools hold promise for workers whose jobs involve many hours of browsing through
archived AS/400 print output. These tools can also extract AS/400 print and distribute the
print files in PDF or other Web formats to Internet users via e-mail tools.
Wireless Access Solutions:
It can be achieved by using tools for writing/extending applications to handheld devices. As an
interesting side point, the personal information management (PIM) industry (which includes
Palm Pilots and Hand Spring Visors that link to e-mail via wireless modems) is expecting
record-breaking sales in the last quarter of 2000. Wireless access is becoming as mainstream
as the cellular phone, both of which will accelerate demand for wireless access solutions.
These tools allow the programmer to deploy a 5250 application to a tier0 device with no
change to the underlying RPG application in most cases.

43

44
PART – 2
CHAPTER – 2
RESEARCH METHODOLOGY

45
Problem Formulation:
India's e-commerce market was worth about $3.8 billion in 2009, it went up to $12.6 billion
in 2013. In 2013, the e-retail market was worth US$ 2.3 billion. About 70% of India's e-
commerce market is travel related. India has close to 10 million online shoppers and is
growing at an estimated 30% vis-a-vis a global growth rate of 8–10%. Electronics and
Apparel are the biggest categories in terms of sales.
In this research I will try to find out the scope and future growth of E-commerce industry in
India.

46
Objective of Research Report:
 To intellectthe E-commerce industry in India.
 To know what is the future of E-commerce Industry in India.
 To find out theDevelopmental strategy toward country.
 To know changing scenario of e-commerce.
 To know customer satisfaction.
 To study the profile of E-Commerce companies which are running their business in
India.

47
Scope of Study:
The scope of E-Commerce is as wide as an ocean & there by the implementation hurdles.
When one thinks of the Electronic Business even through final goal remains the same as that
of the traditional business, but the way in which they function in order to improve the
performance is different. As information sharing is the major part of the corporate industries,
networking has given boost to E-Business. This change in view-point has opened door for
new opportunities.
These factors that pushed their drive to adopt E-business.
 The research provides powerful, real time E-Business reporting to help E-
Business managers improve merchandising and increase sales.
 The study further help on analyzing the benefits of E-Commerce media.
 Identified the future growth of E-Commerce Industry in India.
 The research is very much useful to get the lifetime value of our customers
based upon their acquisition source, and increase your expenditures on sources
that generate the best customers over lifetime.
 The study would help in gathering the opinion of people for E-commerce,how
they use it .what are the things that they do on E-commerce and how these
sites help them.

48
Method of Data collection:
The survey method helped to identify the reach of the brand among its target audience, ways
of impact, usage of E-Commerce sites and access to these form of Business. And the content
analysis is another method used to analyse the Industry strategy of different E-Commerce
sites with certain parameters among top Indian E-Commerce sites.
Research design:
This research study adopted survey and content analysis in order to find the effectiveness and
the impact of E-Commerce sites on product or the service among the target market.
Descriptive research design: - Descriptive studies are the ones that aim at describing
accurately the characteristics of a group, community or a people. It provides jumping pad for
the studies of new areas.
This research design was appropriate for such studies because it was flexible enough.
 It provides opportunities for considering aspects of a problem under the study.
 It précising the formulation of problem.
 It provides knowledge about the problem environment.
 It helps in gathering of the problem associated with doing conclusive research.
Survey:
Survey was conducted randomly among Face book, Twitter user community, by sending
questionnaire through online to collect the individual opinion from the respondents and
survey location is Varanasi.
Sampling:
Non probability sampling technique is used to collect the opinion from the online
respondents. The total population is social networking user community, but to collect the
effective data the sampling is constrained to the target population like young adults, graduates
within the age of 16 years to 35 years and sampling size is 60.

49
Source of Information:
Primary
Secondary
Questionnaire
Survey
Observation
Experimental Internet Published data
Newspaper
Books
Private studies
ElectronicPrinted
Data source

50
There is very little published report available for e-business development in India. The major
challengewas for gather effective information about the subject matter various national and
international publication. Thedata collection and research methodology was mainly divided
into two parts:
 Primary Data Collection
 Secondary Data Collection
Primary Data Collection:
The Descriptive research approach was used to gather the required information and data from
the available literature. The info about the potential position challenges and e-business
implementation in India wasanalysed by reviewing international and national Companies.
For primary data I used questionnaire.
Secondary Data Collection:
Secondary data are those which have already been collected by someone else and which have
already passed through the statistical process.Secondary data was collected from the company
website, Company Brochures, Periodicals and past records, company’s reports, magazines &
newspapers etc.
Secondary data consists of information that already exists somewhere, having been collected
for another purpose. Data that was collected previously and not for the particular study at
hand. Secondary data are collected as-
 Journals
 Magazines
 Books
 Websites
 Reports

51
Period of study:
The research report“TO STUDY THE GROWTH OF E-COMMEREC INDUSTRY IN INDIA”
” is a descriptive report about E-Commerce Industry in India. In this report I try to find Scope
and Future of E-Commerce in India.
The research report duration was 3 month and completed 13/04/2015.
Statistical tools and techniques used:
In this research report I used tables, chart, graph, pie chart and bar for data analysis and for
showing and comparisons information of E-Commerce sites.

52
Limitation of study
Since the research report is based on primary data and also secondary data, there are only a
few limitations relating to the collection of the required data. Such limitations may include:-
 Technical limitation.
 Non- technical limitation.
Non-technical limitation:
 All the headings covered in the report are based on the information given by various
sources of secondary data. Thus there may be possibility of having other important
aspects being left out or not taken into consideration.
 The conclusion drawn may not be appropriate and reliable as the source of data
collection is secondary in nature, like- journals, magazine and newspaper articles,
various books, web links, etc.
 Collection of data either from primary source or secondary data is not an easy task.
 Lack of touch or feel of products during online shopping.
 Internet access is still not cheaper and is inconvenient to use for many potential
customers like one living in remote villages.
 Breakdown of human relationships.
 Time- boundation as report has to be prepared in lesser time.

53
Technical limitation:
 Lack of system security
 Software development tools are still evolving and changing rapidly.
 Vendors may need special web servers and other infrastructures, in addition to the
network servers.
 Some e-commerce software might not fit with some hardware.
 Not enough telecommunication bandwidth.
 "The software development tools are still evolving and changing rapidly".

54
Significance of the study:
To the customer:
 Customer can select more reliable E-Commerce sites very easily.
 They can compare among the E-Commerce sites.
 Provide the Detail information about E-Commerce Industry.
 It will provide customer to more choice.
 It will provide the information of changing sensoria of E-commerce.
To the Industry:
 Expands the market place to national and international market.
 Improves brand image.
 Better customer services.
 Fast access to information.
 Eliminating paper works.

55
To the Government:
 Provide the current trend of E-Commerce in India.
 It will help in making police for E-Commerce Industry.
 It will provide future market of E-Commerce in India.
 It will provide future jobs opportunities in E-commerce sector.
 Help in taxation.
 Regulate market.

56
CHAPTER3
ANALYSIS OF DATA

57
1. Educational qualification in Using Inernet.
 Intermediate
 Graduate
 Post Graduate
`
INTERPRETATION:
In the above pie chart show the educational qualification of the internet uses of respondent.
15% are intermediate, 48% are graduates and 37% are post graduate.
2. Occupation
 Business
 Profession

58
 Service
 Student
INTERPRETATION:
This graph show the respondent qualification 80% respondent are student, 12% are service
man, 6% are professional and 2% are business man.
3. Are you aware of an online shopping websites?
 Yes
 No

59
INTERPRETATION:
In the above pie chart it shows the awareness about the E-commerce only 5% of respondents
don’t know about E-commerce.
4. How often do you use internet?
 Once a week
 1or 2 hrs. a day
 2 to 3 days a week
 More than 3 hrs.
95%
5%
yes
no

60
INTERPRETATION:
In the above bar graph, the users were also surveyed for the time they spend for browsing
internet for various purposes and most of theusers are able to do it once in a week while 20%
of users are able to browse internet more than 3 hrs.
10%
40%
30%
20%
¨ Once a week
¨ 1or 2 hrs. a day
¨ 2 to 3 days a week
More than 3 hrs
0% 10% 20% 30% 40% 50%
Series2
Series1

61
5. How frequently do you shop through e – commerce websites?
 Most likely
 Very likely
 Not likely
 I never shop online
INTERPRETATION:
In the above pie chart it shows preferences of the user only 3% of user prefers most likely and
10% of responses very likely and 27% not like shop online and 60% of Respondents never
want shop online.
3%
10%
60%
27%
most
very
not
never

62
6. Which is your most preferred e – commerce websites?
 Flipkart.
 Snap deal.
 Others.
INTERPRETATION:
In the above pie chart shows the most preferred E-commerce sites in India. 45% user prefer
fipkart, 35% snap deal and 20% jobong.
45%
20%
35%
¨ Flipkart
¨ Jobong
¨ Snap deal

63
7. How you purchase ticket
 Online
 Traditional method
INTERPRETATION:
E-ticking is one a new think to passenger, in this survey 37% passenger get online ticket and
still 63% passenger get traditional method from reservation counters.
8. Do you think e – commerce would get better in the future?
 Yes
 No
 Maybe
37%
63%
online
traditional

64
INTERPRETATION:
In survey I find that 65% are agree that E-commerce will be more better in the future and
20% are not agree and 15% are not confirm that E-commerce will be more better in future.
65%
20%
15%
yes
no
may be

65
9. Do you think e – commerce would take place of physical store?
 Yes
 No
 Maybe
INTERPRETATION:
In the above chart 88% not agree that E-commerce can get place of physical store and 3% are
not confirm and 9% says yes.
9%
88%
3%
yes
no
may be

66
10. Tick all the product varieties that you generally prefer buying online
 Clothing
 Personal product ( perfumes, beauty creams, toothbrush)
 Consumer Electronic
 Laptops and accessories
 Home and furniture
 Books
 Healthcare product
INTERPRETATION:
In the above pie chart shows the product which user generally prefer to buy online 34%
electronic,15% books,30% accessories, 10%personal product,6%healthcare product,2%home
furniture,3% clothing.
2%
10%
34%
30%
15%
3%
6%
0
1
2
3
4
5
6
7
8

67
11. How frequently have you used the e- commerce websites for getting information before
shopping at a physical store?
 Products specification
 Products comparison among product
INTERPRETATION:
The above graph shows the information that user get about the product 55% of user get
information about the product and 45% of user compare the product before purchase.
12. Please rate your expectation in a shopping model (1 to 5)
 Convenience
 Minimum delivery time
 Product trial experience
 Discount deals
 Product variety

68
INTERPRETATION:
In survey I try to know expectation of the user, they give the 3 rate to convinces, 2 rate to
minimum time taken, 3 rate to product trial, 4 rate to discount and 5 rate to products variety.
13. Please rate the user friendly of the e- commerce websites which you preferred the most.(
please rate 1 to 5 ).
 For product comparison
 For price comparison
 Payment option offered
 Speed of website
3
2
3
4
5
con.
mini.time
prod.trial
discount
prod.vari.

69
INTERPRETATION:
The above pie graph shows the information why they prefer most website which they use,
they gave rate to the website, 4 rate to product, 3 rate to price, 5 rate to payment, 3 rate to
websites speed.
4
35
3
product
price
payment
speed

70
14. How comfortable are you with the features of e - commerce? (Please rate 1 to 5).
 Very satisfied
 Satisfied
 Neutral
 Dissatisfies
 Very dissatisfied
INTERPRETATION:
The above graph show the satisfaction level of the user there are some rate for satisfaction
level which are- 3 rate to very satisfied, 4 rate to very satisfied, 2 rate to neutral, 2 rate to
dissatisfied, 1 rate to very dissatisfied.
3
4
2
2
1
very sat.
satisfied
neutral
dis sati.
very dis.

71
15. Growth of ecommerce industry in India during 2007-2011 (As perdata availability)
INTERPRETATION:
Here we can observe the drastic growth in ecommerce industry. It is growing at an annual
rate of54.6%. and Still , a large amount of market is untapped. So , there is a huge scope for
ecommerceindustry in India.
16. Growth in Internet users Vs Growth in Ecommerce Industry
INTERPRETATION:
We can see here that both (Internet users and ecom industry ) are growing at a very fast
speed.Still , there is a huge internet population which needs to be tapped by ecommerce
players.

72
CHAPTER 4

73
Finding:
 E-commerce IndustryIndia’s E-Commerce market was about $2.5 billion in 2009; it
went up to $6.3 billion in 2011 and to $16 billion in 2013 and is expected to grow
huge $56 billion by 2023 that would be 6.5% of the total retail market.
 Reasons for Growththe main factors for this rapid growth of young tech-savvy
generation employed in IT companies, rise in disposable income, changing lifestyles
and easier access to banking and internet facilities.
 Internet access76 per cent of online shoppers access the Internet from their office, 63
per cent from home and 24 per cent from cyber cafes. Shoppersaccessing the net
through multiple access points represents a dismissal that Internet Penetration is no
more only PC dependent. All Internet activity support e-commerce in an allied or
primary capacity.
 Analysis show that the India E-commerce Industry growing very fast as compare to
the other counter in the world.
 45 per cent of visitors to ecommerce sites haveadopted the Internet as a shopping
medium.

74
Conclusions:
A developing country can be rationalized and mechanized if it introduces e-
commerceeffectively and efficiently. It will enhance its output and gives competitive
advantage.Information Technology (IT) has boosted ecommerce worldwide. Now it’s easier
toenter to a new market and one can evaluate his/her product and company’sperformance. It
reduces business over head and enhances business management.

75
Suggestions/Recommendation:
The most important factor that is necessary in growing E-Commerce in India –Trust. If we
Look at the Indian context, I feel that there is a general lack of trust between retailers and
Customers. Consumers don’t trust the retailers because they feel that they are either being
Over charged or that they wouldn’t be able to get appropriate level of customer service once
The sale is complete.
It is my opinion thatthis general lack of trust is the primary barrier that is impeding the
growth of E-Commercewithin India. Here are some of the practical techniques that online
retailers can employ toimprove this level of trust and build an environment where customers
feel safe in clickingthat “Proceed to Checkout” button.
 Customer Reviews: Customer’s trust for an online retailerwill increase if the retailer
offers an ability to let customers share their positive as well asNegative reviews about
products or vendors.
 Price Match Guarantee:A Price Match Guarantee (PMG) is a store policy which
entitles a customer to a refund of theDifference between the stores’ asking price and a
competitor’s price.
 Well trained call centre:It is more impotent that the call centre agents be trained to
have Good problem solving skills.
 Fraud Protection:Not only should an online retailer ensure that the appropriate
security certificates are setup toHandle checkout related transactions.
 Real time inventory updates:Retailers must invest in building automated capabilities
that keep an up to date record of howmuch inventory is available for all their
products.
E-Commerce will see a significant growth in India. However, the chasm between the early
Adopters of E-Commerce and the ones who are waiting can only be crossed by building a
Strong level of trust with customers – and winning them, one customer at a time.

76
QUESTIONNAIRE

77
QUESTIONNAIRE
Dear Sir/Ma’am
I amPrabhat KumarPandey, student of Raj School and Management Sciences, Varanasi
and presently doing a research on “TO STUDY THE GROWTH OF E-COMMEREC INDUSTRY
IN INDIA”
I request you to kindly fill the questionnaire below and I assure you that the data generated
will be kept confidential.
Name:……………………………………………….
Contact No.:…………………………………………
City: ………………………… State:…………………………..
PartA
1. Age
 Below 30
 30-40
 40-50
 Above 50
2. Educational qualification
 Intermediate
 Graduate
 Post Graduate
3. Occupation
 Business
 Profession
 Service
 Student

78
PartB
1. Please Tick your income range
 Less than Rs. 2 lakhs per annum
 Rs. 2 lakhs to 5 lakhs per annum
 5 lakhs to 10 lakhs per annum
 More than 10 lakhs per annum.
2. How often do you use internet?
 Once a week
 1or 2 hrs. a day
 2 to 3 days a week
 More than 3 hrs.
3. Are you aware of an online shopping websites?
 Yes
 No
4. How frequently do you shop through e – commerce websites?
 Most likely
 Very likely
 Not likely
 I never shop online
5. Which is your most preferred e – commerce websites?
 Flip kart
 Amazon
 Jobong
 Snap deal
 Other please specify …………………………………….
6. Please rate the user friendly of the e- commerce websites which you preferred the most.(
please rate 1 to 5).
 For product comparison
 For price comparison

79
 Payment option offered
 Speed of website
7. How frequently have you used the e- commerce websites for getting information before
shopping at a physical store?
 Products specification
 Products comparison among product
8. Please rate your expectation in a shopping model (1 to 5).
 Convenience
 Minimum delivery time
 Product trial experience
 Discount deals
 Product variety
9. Tick all the product varieties that you generally prefer buying online
 Clothing
 Personal product ( perfumes, beauty creams, toothbrush)
 Mobiles
 Laptops and accessories
 Home and furniture
 Books
 Healthcare product.
10. How comfortable are you with the features of e - commerce?(Please rate 1 to 5).
 Very satisfied
 Satisfied
 Neutral
 Dissatisfies
 Very dissatisfied
11. Do you think e – commerce would get better in the future?
 Yes
 No
 Maybe
12. Do you think e – commerce would take place of physical store?
 Yes
 No
 Maybe
13. How you purchase ticket?

80
 Online
 Traditional method
14.Which is your Favourite Portal.
 Filpkart
 Snapdeal
 Others
PartC
1. Which features do you struggle with using e – commerce and what improvements would
youlike to see?
___________________________________________________________________________
_________________________________________________________________________
2. How you do feel about online shopping overall?
___________________________________________________________________________
_________________________________________________________________________
Date:- (Signature)

81
Bibliography
BOOKS:
 Kothari C R-Research Methodology Methods and Techniques(New Age
International Publishers,2nd
Ed)
 C.S.V. Murthy- E-commerce, Himalaya publication, New Delhi.
 E.Turban, J. Lee, D. King and H.M. Chung, Electronic Commerce:
AManagerialPerspective. Prentice Hall, 1999.
JOURNALS:
 Ernst & Young Report 2012: Rebirth of e-commerce in India.
 Malhotra.,(2008),"Enabling knowledge exchanges for e-business communities",
Information Strategy: The Executive’s Journal, 26-31
 Singh, R., Iyer, L., & Salam, A. F., (2004), "Web service for knowledge management
in e-marketplaces ", e-Service Journal, pp.32-52.
NEWLATER:
 ILO’s World Employment Report 2012, “Despite Improved Employment Outlook,
Digital Divide Looms Large”, ILO News, 28th Feb 2012, Geneva.
 Google India Study Report combining data from Google Trends and online research
conducted by TNS Australia.
WEBSITES & WEBPAGE:
 http://www.iamwire.com/2012/04/india-to-be-the-fastest-growing-e-commerce-
market-in-asia-pacific-market-set-to-grow-to-8-8-billion-by-2016/
 http://in.myinfoline.com/forum/reply/2065
 http://articles.timesofindia.indiatimes.com/2013-04-26/internet/38842529_1_indian-
internet-internet-shopping-internet-penetration
 www.zdnet.com/.../india-e-commerce-industry-faces-consolidation-7000...‎
 http://indiaranker.com/websites/ecommerce
 http://www.ibm.com/news/in/en/2012/12/17/j586238s98768m83.html
 http://profit.ndtv.com/news/corporates/article-e-commerce-hiring-to-grow-30-per-
cent-on-amazon-local-players-push-report-389422
 http://economictimes.indiatimes.com/industry/jobs/e-commerce-hiring-to-grow-30-
per-cent-on-amazon-local-players-push/articleshow/35593408.cms

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