Trends in E-Commerce
E-commerce: Definition


► No widely accepted definition

► In loose sense it means doing business over the
  internet, selling products [goods and services] which
  are delivered offline as well as products which can be
  “digitalized” and delivered on line.
e-Business & e-Commerce

► E-business: application of ICT to all aspects of companies
  operations: i.e. customer relations management (CRM);
  enterprise resource planning (ERP); sales force management
  (SFM); electronic procurement (EP)
► E-commerce is a sub-set of e-business
► e-commerce: Functions
► Communication [on-line catalogue]
► Transaction [shopping carts: browse and select items and
  make buying decision]
► Payment [electronic payment methods]
Early example of E-Business

  Can anybody tell me the earliest example of e-
  business or e-commerce?
The correct answer is ……
The correct answer is ……

  SITA
  SWIFT
The correct answer is ……

  SITA - Société Internationale de Télécommunications
  Aéronautiques, was founded in February 1949 by 11 airlines
  SWIFT – Society for Worldwide Interbank Financial
  Telecommunication was founded in 1973. Today it is linked to
  9000 financial institutions in 209 countries, & carries 15 million
  messages per day.
Types of e-Commerce
             Government            Business          Consumer

                G2G                 G2B                G2C
              e.g. Central &       e-Tenders        Information to
Government         State                            Citizens, online
                                                         forms

                B2G                 B2B                B2C
             e.g. procurement     Covisint.com        Flipkart.com
 Business                           EDI, EFT           Rediff.com


                 C2G                C2B                 C2C
              Online filing of   Job portals like    Facebook.com,
Consumer       tax returns         naukri.com       Ebay.in,flikr.com



                                                               Source : OECD
Electronic Commerce: The 2nd Wave
  e- Commerce history
    Mid-1990s to 2000: rapid growth

    “Dot-com boom” followed by “dot-com bust”

    2000 to 2003: overly gloomy news reports

    2003: signs of new life

         Sales and profit growth return
         e-Commerce growing at a rapid pace
         e-Commerce becomes part of general economy
      2008 – 2009 general recession
         Electronic commerce hurt less than most of economy
      Post 2009 – 2nd Wave / E-Commerce 2.0 underway


                                                               9
e-Commerce – First & Second Wave
How technology is Changing Everything
Internet Usage

  How often do you use the internet
  Daily
  Three times a week
  Two times a week
  Weekly
  Once a fortnight
  Once a month
How much time do you spend on the Net

  Less than 2 hours per week
  5 hrs per week
  5-10 hrs per week
  11-15 hrs per week
  More than 15 hrs per week
E-Commerce is Booming in India???
Huge Population is only part of the story
That is only 1/16th of the US Market




           US
       $ 167 Billion


                             India
                          $ 10 Billion
In 2011 Online buying picked up momentum!

             100                                                                                                                          CAGR
                                                                                                                                           24%
                        Regular Internet Users                          Shoppers                          Buyers

             80                                                                                                            70 to 80
                                                                                                                                           21%

                                                                                                         60
             60
In Million




                                                                                   48                                         60 to 70     42%
                                                             39                                          50
                                        35
             40
                   25                                                              26
                                                             35
                                        28                                                                                    20 to 25
             20                                                                                          17
                   19                                                              10
                                                              8
                    3                   5
              0
                   2007               2008                  2009                 2010                  2011                  2012



                             Source: Juxt India Online Study (Recent Round - July 2011 - 2,25,000 random samples from 104 towns & 800+ villages across India)
                                                               *Note: Regular – At least once a month, Shoppers – Only Search, Buyers – Search & Buy Online



                                                                  17
► In 2011 India had 60 million ‘regular’ users, out of total 80 million
   users.
► Internet reaches 29 million Indian households -avg. 2.23 users per
   household
    ► Covers 11.3% of all Indian households
    ► 5.4% of all Indians
    ► Over 4 in 5 are ‘daily’ users (Daily users‟ base grew faster, at 33%)
► 4 out of 5 internet users ‘shop’ online (shoppers only search),
   translating into a 50 million strong online consumer base
► 17 million of these „online shoppers‟ (or 29% of all internet users), also
   ‘buy’ online - 70% growth from 10 million last year
3
        A few facts…
           Unique Non-Travel Buyers per Quarter
                                                                                                               Others     1%
                                                                        2.00
   2                                                                                                       Cash Card      1%

                                                              1.27
                                                    1.07                                                   e-currency         3%

   1                                                                                                                                             Rate of return
                   0.62 0.64 0.68                                                            Cheque/DD on Delivery             10%                30 to 40%
        0.41
                                                                                                  Cash on Delivery                         41%
   0
                                                                                                          Net Banking                      42%
          JFM'10

                    AMJ'10

                              JAS'10




                                                     JFM'11

                                                               AMJ'11

                                                                         JAS'11
                                          OND'10




                                                                                                           Credit card                         48%
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of
online non-travel buyers)                                                                                  Debit card                            58%

100%                                                                                                                     0%        20%   40%    60%     80%       100%
                   Credit Card Ownership
80%                Net Banking Users                                              ► Of the 13million around 2million unique people
                                                                                    transact in any given month
60%
                                       38%         38%
                                                                                  ► Credit card penetration among Internet users is
40%      29%           31%                                                          relatively low and remained stagnant
                                                                                  ► Users use on an average 2 mode of payments, ‘Cash
20%
         24%           25%             26%         25%                              on Delivery’ is growing and throwing unique
 0%                                                                                 challenges
         2008          2009            2010        2011
         Source: Juxt India Online Study
The Great India E-commerce Bazaar




                             Source : MySmartPrice.com
Source : MySmartPrice.com
What do they sell




                    Source : MySmartPrice.com
Top 20 Ecommerce Sites in India
 Rank           Site       Rank            Site
  1     Infibeam.com        11    20north.com
  2     Indiaplaza.com      12    Yebhi.com
  3     Tradus.in           13    Snapdeal.com
  4     Flipkart.com        14    Dealsandyou.com
  5     Myntra.com          15    Dell.co.in
  6     Futurebazaar.com    16    Fernsnpetals.com
  7     Bookmyshow.com      17    Indiangiftsportal.com
  8     Indiatime.com       18    Talash.com
  9     Rediff Shopping     19    Zoomin.com
  10    Homeshop18.com      20    Snapfish.com

                                          Source : Indiaranker.com
Some funny store names !!!




                             Source : MySmartPrice.com
Important Trends
  Travel was the first to go online
  Brands are moving to creating their own online stores –
  Nokiashop, Puma, Reebok, Samsung, VIP, Fastrack, etc

  Fashion is No.1 Category –
  Top 3 categories all belong to fashion with 130 online stores
  [big & small] selling some fashion products. Apart from this 91
  stores deal exclusively in fashion

  Rise of exclusive online labels –
  Zovi, Shersingh

  Lingerie is Big –
  Over 39 stores sell innerwear & lingerie
Important Trends
  Offline retailers are trying to go online –
  Futurebazaar, Cromaretail, The Mobile Store, Univercell

  Media Publishing Biggies are venturing into e-commerce –
  Homeshop18. indiatimes.com, BagitToday, StarCJ

  E-commerce Platforms are gaining traction –
  e.g. Buildabazaar, MartJack

  Popular Deal Sites are gravitating to e-tailing –
  e.g. KyaZoonga, snapdeal, koovs, seventyMM

  Mobile commerce is just about starting –
  e.g. Indian Rlys, banking transactions
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Trends in e commerce

  • 1.
  • 2.
    E-commerce: Definition ► Nowidely accepted definition ► In loose sense it means doing business over the internet, selling products [goods and services] which are delivered offline as well as products which can be “digitalized” and delivered on line.
  • 3.
    e-Business & e-Commerce ►E-business: application of ICT to all aspects of companies operations: i.e. customer relations management (CRM); enterprise resource planning (ERP); sales force management (SFM); electronic procurement (EP) ► E-commerce is a sub-set of e-business ► e-commerce: Functions ► Communication [on-line catalogue] ► Transaction [shopping carts: browse and select items and make buying decision] ► Payment [electronic payment methods]
  • 4.
    Early example ofE-Business Can anybody tell me the earliest example of e- business or e-commerce?
  • 5.
  • 6.
    The correct answeris …… SITA SWIFT
  • 7.
    The correct answeris …… SITA - Société Internationale de Télécommunications Aéronautiques, was founded in February 1949 by 11 airlines SWIFT – Society for Worldwide Interbank Financial Telecommunication was founded in 1973. Today it is linked to 9000 financial institutions in 209 countries, & carries 15 million messages per day.
  • 8.
    Types of e-Commerce Government Business Consumer G2G G2B G2C e.g. Central & e-Tenders Information to Government State Citizens, online forms B2G B2B B2C e.g. procurement Covisint.com Flipkart.com Business EDI, EFT Rediff.com C2G C2B C2C Online filing of Job portals like Facebook.com, Consumer tax returns naukri.com Ebay.in,flikr.com Source : OECD
  • 9.
    Electronic Commerce: The2nd Wave e- Commerce history  Mid-1990s to 2000: rapid growth  “Dot-com boom” followed by “dot-com bust”  2000 to 2003: overly gloomy news reports  2003: signs of new life  Sales and profit growth return  e-Commerce growing at a rapid pace  e-Commerce becomes part of general economy  2008 – 2009 general recession  Electronic commerce hurt less than most of economy  Post 2009 – 2nd Wave / E-Commerce 2.0 underway 9
  • 10.
    e-Commerce – First& Second Wave
  • 11.
    How technology isChanging Everything
  • 12.
    Internet Usage How often do you use the internet Daily Three times a week Two times a week Weekly Once a fortnight Once a month
  • 13.
    How much timedo you spend on the Net Less than 2 hours per week 5 hrs per week 5-10 hrs per week 11-15 hrs per week More than 15 hrs per week
  • 14.
  • 15.
    Huge Population isonly part of the story
  • 16.
    That is only1/16th of the US Market US $ 167 Billion India $ 10 Billion
  • 17.
    In 2011 Onlinebuying picked up momentum! 100 CAGR 24% Regular Internet Users Shoppers Buyers 80 70 to 80 21% 60 60 In Million 48 60 to 70 42% 39 50 35 40 25 26 35 28 20 to 25 20 17 19 10 8 3 5 0 2007 2008 2009 2010 2011 2012 Source: Juxt India Online Study (Recent Round - July 2011 - 2,25,000 random samples from 104 towns & 800+ villages across India) *Note: Regular – At least once a month, Shoppers – Only Search, Buyers – Search & Buy Online 17
  • 18.
    ► In 2011India had 60 million ‘regular’ users, out of total 80 million users. ► Internet reaches 29 million Indian households -avg. 2.23 users per household ► Covers 11.3% of all Indian households ► 5.4% of all Indians ► Over 4 in 5 are ‘daily’ users (Daily users‟ base grew faster, at 33%) ► 4 out of 5 internet users ‘shop’ online (shoppers only search), translating into a 50 million strong online consumer base ► 17 million of these „online shoppers‟ (or 29% of all internet users), also ‘buy’ online - 70% growth from 10 million last year
  • 19.
    3 A few facts… Unique Non-Travel Buyers per Quarter Others 1% 2.00 2 Cash Card 1% 1.27 1.07 e-currency 3% 1 Rate of return 0.62 0.64 0.68 Cheque/DD on Delivery 10% 30 to 40% 0.41 Cash on Delivery 41% 0 Net Banking 42% JFM'10 AMJ'10 JAS'10 JFM'11 AMJ'11 JAS'11 OND'10 Credit card 48% Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of online non-travel buyers) Debit card 58% 100% 0% 20% 40% 60% 80% 100% Credit Card Ownership 80% Net Banking Users ► Of the 13million around 2million unique people transact in any given month 60% 38% 38% ► Credit card penetration among Internet users is 40% 29% 31% relatively low and remained stagnant ► Users use on an average 2 mode of payments, ‘Cash 20% 24% 25% 26% 25% on Delivery’ is growing and throwing unique 0% challenges 2008 2009 2010 2011 Source: Juxt India Online Study
  • 20.
    The Great IndiaE-commerce Bazaar Source : MySmartPrice.com
  • 21.
  • 22.
    What do theysell Source : MySmartPrice.com
  • 23.
    Top 20 EcommerceSites in India Rank Site Rank Site 1 Infibeam.com 11 20north.com 2 Indiaplaza.com 12 Yebhi.com 3 Tradus.in 13 Snapdeal.com 4 Flipkart.com 14 Dealsandyou.com 5 Myntra.com 15 Dell.co.in 6 Futurebazaar.com 16 Fernsnpetals.com 7 Bookmyshow.com 17 Indiangiftsportal.com 8 Indiatime.com 18 Talash.com 9 Rediff Shopping 19 Zoomin.com 10 Homeshop18.com 20 Snapfish.com Source : Indiaranker.com
  • 24.
    Some funny storenames !!! Source : MySmartPrice.com
  • 25.
    Important Trends Travel was the first to go online Brands are moving to creating their own online stores – Nokiashop, Puma, Reebok, Samsung, VIP, Fastrack, etc Fashion is No.1 Category – Top 3 categories all belong to fashion with 130 online stores [big & small] selling some fashion products. Apart from this 91 stores deal exclusively in fashion Rise of exclusive online labels – Zovi, Shersingh Lingerie is Big – Over 39 stores sell innerwear & lingerie
  • 26.
    Important Trends Offline retailers are trying to go online – Futurebazaar, Cromaretail, The Mobile Store, Univercell Media Publishing Biggies are venturing into e-commerce – Homeshop18. indiatimes.com, BagitToday, StarCJ E-commerce Platforms are gaining traction – e.g. Buildabazaar, MartJack Popular Deal Sites are gravitating to e-tailing – e.g. KyaZoonga, snapdeal, koovs, seventyMM Mobile commerce is just about starting – e.g. Indian Rlys, banking transactions
  • 27.
    “Like” us onFacebook: http://www.facebook.com/welearnindia “Follow” us on Twitter: http://twitter.com/WeLearnIndia Watch informative videos on Youtube: http://www.youtube.com/WelingkarDLP