This document discusses using e-commerce to fuel growth in rural India. It proposes a 5-star model to introduce e-commerce in rural areas through 5 steps: strategizing and setting up infrastructure, simplifying the technology, simulating online transactions, showcasing success stories, and spreading to new areas. Some challenges include lack of infrastructure, technology access, finance, and diversity across rural India. Solutions involve expanding telecommunications access, using wireless technologies, leveraging existing fiber networks, training local teachers, and promoting national languages. Successful case studies and potential e-commerce applications for rural areas are also outlined.
E commerce is the word ruling the business since the last few decades. Thousands of businesses have moved online to utilize the potential of the Internet for reaching a wider audience. Further, this translates into an additional revenue stream that gets you an increased ROI Return On Investment with less investment cost and time. Today, e commerce has enveloped our lives in such a way that it has become a necessity rather than a passion. From the business perspective, it comes ahead as a massive opportunity and even established brick and mortar brands are exploring this territory today. The rural e commerce market in India has the potential to be at $10 billion to $12 billion in the next four years on the back of increasing internet penetration, rising household income and the government's push on digital in rural areas, said a report from market research firm EY India. "Effective use of vernacular languages and assisted commerce will help drive the large rural online opportunity for e commerce firms looking to accelerate growth beyond the favorable industry metrics Dr. Vijayant Kumar "Revolution of E-Commerce in Rural Market" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26782.pdfPaper URL: https://www.ijtsrd.com/management/marketing/26782/revolution-of-e-commerce-in-rural-market/dr-vijayant-kumar
With 20% of the Indians connected over internet and Smartphones, there has not been a more exciting and challenging time in the history of Indian retail.
Consumer is moving ahead of time and with multiple avenues of shopping - be it online, social or mobile - customers have been spoilt for choice.
With millions of Indian buying online and billions of $ of investment pumped in, pure play online retail companies are changing the retail game! An industry which was not even existing 5 years back will clock $4 Billion revenues by end of 2014!
e-commerce industry in India is going through an aggressive transformation and while it can be the sunshine sector for growth, it is imperative to understand the limitations and risks in the sector, and handle these risks effectively. Addressing these risks should be our top most priority to avoid this boom turn into a bubble. It is possible only when euphoria over virtual cash flows, imaginary cash rich P&L statements and outrageous valuations makes way for a structured growth plan across the business parks and government corridors, backed by more realistic aspirations, but of course, with the same enthusiasm
E commerce is the word ruling the business since the last few decades. Thousands of businesses have moved online to utilize the potential of the Internet for reaching a wider audience. Further, this translates into an additional revenue stream that gets you an increased ROI Return On Investment with less investment cost and time. Today, e commerce has enveloped our lives in such a way that it has become a necessity rather than a passion. From the business perspective, it comes ahead as a massive opportunity and even established brick and mortar brands are exploring this territory today. The rural e commerce market in India has the potential to be at $10 billion to $12 billion in the next four years on the back of increasing internet penetration, rising household income and the government's push on digital in rural areas, said a report from market research firm EY India. "Effective use of vernacular languages and assisted commerce will help drive the large rural online opportunity for e commerce firms looking to accelerate growth beyond the favorable industry metrics Dr. Vijayant Kumar "Revolution of E-Commerce in Rural Market" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26782.pdfPaper URL: https://www.ijtsrd.com/management/marketing/26782/revolution-of-e-commerce-in-rural-market/dr-vijayant-kumar
With 20% of the Indians connected over internet and Smartphones, there has not been a more exciting and challenging time in the history of Indian retail.
Consumer is moving ahead of time and with multiple avenues of shopping - be it online, social or mobile - customers have been spoilt for choice.
With millions of Indian buying online and billions of $ of investment pumped in, pure play online retail companies are changing the retail game! An industry which was not even existing 5 years back will clock $4 Billion revenues by end of 2014!
e-commerce industry in India is going through an aggressive transformation and while it can be the sunshine sector for growth, it is imperative to understand the limitations and risks in the sector, and handle these risks effectively. Addressing these risks should be our top most priority to avoid this boom turn into a bubble. It is possible only when euphoria over virtual cash flows, imaginary cash rich P&L statements and outrageous valuations makes way for a structured growth plan across the business parks and government corridors, backed by more realistic aspirations, but of course, with the same enthusiasm
Globally internet has changed the way in which businesses were performed traditionally. Developed countries have benefited from implementing e-commerce. But, in case of emerging economies like India the adoption of e-commerce has been very slow due to challenges posed by a number of barriers. In India, though the large corporations have adopted e-commerce and successfully explored the business opportunities, the small and medium enterprises (SMEs) are yet to benefit from adopting e-commerce. This presentation reflects on the barriers that the SMEs face in India in process of adoption of e-commerce. It analyses both the external and internal factors that affect the adoption of e-commerce. In the end recommendations are also mentioned.
For the complete report, get in touch with us at : info@netscribes.com
Abstract:
Netscribes’ latest market research report titled e-Commerce Market in India 2014 captures the current scenario prevailing within the e-Commerce market in India. The market is mainly dominated by the online travel segment, while the online retail segment is witnessing the fastest rate of growth. Versatile shopping experience and rapid development of transaction facilities is further boosting opportunities for the remaining market segments. Even though the market is witnessing staggering growth rates, majority of the players are still facing dire shortage of funds. Raising capital funds to support daily business operations and online advertising expenses have become a major challenge for such players. Online retail operators, especially the inventory based players, are suffering from cost stack ups and charges incurred against customers opting for ‘Cash on Delivery’ mode of payment.
In an attempt to tackle these problems, players are now constantly focusing on gaining customer loyalty and trust. Some of the most prominent trends in the market in this regard include a host of loyalty schemes, promotional offers and high rate of discounts. Additionally, tweaking business models and turning into mainstream online retailers, opening up of ‘Brick and Mortar’ stores to tap the ‘offline’ customer base, opting for a ‘market place’ approach, consolidation and self owned brands are some other major trends observed so far in the market.
Coverage
• Overview of the e-Commerce market in India and forecasted market size data over 2013 to 2018
• Market Segmentation of e-Commerce by types
• Overview of the e-Commerce market in India by segments for the year 2013 and 2012
• Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government
• Overview of the market trends and differentiating past and current business strategies
• Analysis of the competitive landscape and detailed profiles of major players
Why Buy
• Get a clear understanding of the e-Commerce market in India, market dynamics and the various stages of the value chain
• Understand the current market segmentation and future growth potential of the market in India till 2018 and plan strategies to gain from it
• Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market
• Understand your competitors’ business structures, strategies and prospects, and respond accordingly
• Make more informed business decisions with the help of insightful recommendations provided to succeed in the market
Ijifr section 2 SEPTEMBER 2016 EDITIONvikas sharma
take this privilege to welcome all of you to the continuous 36th edition of International Journal Of Informative & Futuristic Research (IJIFR) SECTION II - Volume 3, Issue 12, August 2016.
Barriers to Electronic Commerce Adoption in Small and Medium Enterprises in I...Shakir Ali
Globally internet has changed the way in which businesses were performed traditionally. Developed countries have benefited from implementing e-commerce. But, in case of emerging economies like India the adoption of ecommerce has been very slow due to challenges posed by a number of barriers. In India, though the large corporations have adopted e-commerce and successfully explored the business opportunities, the small and medium enterprises are yet to benefit from adopting e-commerce. This paper reflects on the barriers that the small and medium enterprises face in India in process of adoption of ecommerce. It analyses both the external and internal factors that affect the adoption of e-commerce.
1. Online skill-based real-money gaming market in India is estimated to grow to become ~$3.8 Bn1 by 2024 speed of growing smartphone penetration, low cost of data and vast digital payment infrastructure allowing individuals access to instant real-time inter-bank transactions.
2. Introduced to Indian market in early 2010 and pioneered by Dream11, Fantasy sports contributed ~ 30% of the RMG market in 2019. Fantasy sports market has witnessed exponential growth in recent years fuelled by increasing user base, high engagement and increasing investor interest and is expected to grow by ~60% till 2024.
3. Casual online real-gaming market contributed ~70% of the total RMG market in 2019. However, it is expected to grow relatively slower at ~35% when compared to fantasy sports.
4. Driven by high growth opportunity in RMG market, horizontal players have started foraying in the segment. In 2019, Paytm entered the casual gaming space with Paytm First Games.
Indian Female Innerwear’s $12 Billion OpportunityRedSeer
India currently stands at quite an interesting juncture of consumption. It consists of a majority of young populace who are mainly driving the growth of income per capita and consumption. India’s GNI (Gross National Income) per capita was US$ 2,120 in 2019 which is lower than the US (US$ 65,850) and China (US$ 10,410). However, India’s GNI per capita is expected to grow at 7% between 2019 and 2025, which is faster than US’ and China’s expected growth rates between 2019 and 2025 at 2.9% and 6.1% respectively.
Ericsson Business Review: Undiscovered country: harvesting India’s rural tele...Ericsson
India’s operators take note – the grass really is greener on the other side. With 70 percent of the country’s population living outside cities, successfully targeting rural subscribers can be a major growth driver. But finding the right services is just the start – operators also need to implement six essential success factors in order to reap the rewards.
http://www.ericsson.com/thecompany/our_publications/ericsson_business_review
Globally internet has changed the way in which businesses were performed traditionally. Developed countries have benefited from implementing e-commerce. But, in case of emerging economies like India the adoption of e-commerce has been very slow due to challenges posed by a number of barriers. In India, though the large corporations have adopted e-commerce and successfully explored the business opportunities, the small and medium enterprises (SMEs) are yet to benefit from adopting e-commerce. This presentation reflects on the barriers that the SMEs face in India in process of adoption of e-commerce. It analyses both the external and internal factors that affect the adoption of e-commerce. In the end recommendations are also mentioned.
For the complete report, get in touch with us at : info@netscribes.com
Abstract:
Netscribes’ latest market research report titled e-Commerce Market in India 2014 captures the current scenario prevailing within the e-Commerce market in India. The market is mainly dominated by the online travel segment, while the online retail segment is witnessing the fastest rate of growth. Versatile shopping experience and rapid development of transaction facilities is further boosting opportunities for the remaining market segments. Even though the market is witnessing staggering growth rates, majority of the players are still facing dire shortage of funds. Raising capital funds to support daily business operations and online advertising expenses have become a major challenge for such players. Online retail operators, especially the inventory based players, are suffering from cost stack ups and charges incurred against customers opting for ‘Cash on Delivery’ mode of payment.
In an attempt to tackle these problems, players are now constantly focusing on gaining customer loyalty and trust. Some of the most prominent trends in the market in this regard include a host of loyalty schemes, promotional offers and high rate of discounts. Additionally, tweaking business models and turning into mainstream online retailers, opening up of ‘Brick and Mortar’ stores to tap the ‘offline’ customer base, opting for a ‘market place’ approach, consolidation and self owned brands are some other major trends observed so far in the market.
Coverage
• Overview of the e-Commerce market in India and forecasted market size data over 2013 to 2018
• Market Segmentation of e-Commerce by types
• Overview of the e-Commerce market in India by segments for the year 2013 and 2012
• Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government
• Overview of the market trends and differentiating past and current business strategies
• Analysis of the competitive landscape and detailed profiles of major players
Why Buy
• Get a clear understanding of the e-Commerce market in India, market dynamics and the various stages of the value chain
• Understand the current market segmentation and future growth potential of the market in India till 2018 and plan strategies to gain from it
• Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market
• Understand your competitors’ business structures, strategies and prospects, and respond accordingly
• Make more informed business decisions with the help of insightful recommendations provided to succeed in the market
Ijifr section 2 SEPTEMBER 2016 EDITIONvikas sharma
take this privilege to welcome all of you to the continuous 36th edition of International Journal Of Informative & Futuristic Research (IJIFR) SECTION II - Volume 3, Issue 12, August 2016.
Barriers to Electronic Commerce Adoption in Small and Medium Enterprises in I...Shakir Ali
Globally internet has changed the way in which businesses were performed traditionally. Developed countries have benefited from implementing e-commerce. But, in case of emerging economies like India the adoption of ecommerce has been very slow due to challenges posed by a number of barriers. In India, though the large corporations have adopted e-commerce and successfully explored the business opportunities, the small and medium enterprises are yet to benefit from adopting e-commerce. This paper reflects on the barriers that the small and medium enterprises face in India in process of adoption of ecommerce. It analyses both the external and internal factors that affect the adoption of e-commerce.
1. Online skill-based real-money gaming market in India is estimated to grow to become ~$3.8 Bn1 by 2024 speed of growing smartphone penetration, low cost of data and vast digital payment infrastructure allowing individuals access to instant real-time inter-bank transactions.
2. Introduced to Indian market in early 2010 and pioneered by Dream11, Fantasy sports contributed ~ 30% of the RMG market in 2019. Fantasy sports market has witnessed exponential growth in recent years fuelled by increasing user base, high engagement and increasing investor interest and is expected to grow by ~60% till 2024.
3. Casual online real-gaming market contributed ~70% of the total RMG market in 2019. However, it is expected to grow relatively slower at ~35% when compared to fantasy sports.
4. Driven by high growth opportunity in RMG market, horizontal players have started foraying in the segment. In 2019, Paytm entered the casual gaming space with Paytm First Games.
Indian Female Innerwear’s $12 Billion OpportunityRedSeer
India currently stands at quite an interesting juncture of consumption. It consists of a majority of young populace who are mainly driving the growth of income per capita and consumption. India’s GNI (Gross National Income) per capita was US$ 2,120 in 2019 which is lower than the US (US$ 65,850) and China (US$ 10,410). However, India’s GNI per capita is expected to grow at 7% between 2019 and 2025, which is faster than US’ and China’s expected growth rates between 2019 and 2025 at 2.9% and 6.1% respectively.
Ericsson Business Review: Undiscovered country: harvesting India’s rural tele...Ericsson
India’s operators take note – the grass really is greener on the other side. With 70 percent of the country’s population living outside cities, successfully targeting rural subscribers can be a major growth driver. But finding the right services is just the start – operators also need to implement six essential success factors in order to reap the rewards.
http://www.ericsson.com/thecompany/our_publications/ericsson_business_review
ICT for sustainable development in rural areasDhiraj Shirode
Technology is the powerful tool that can help to change the mindset of rural citizens. The vision of ICT for sustainable development in rural areas focuses upon the education, health care knowledge, general knowledge, culture and technological infrastructures. The contribution of ICT will be definitely helpful for sustainable development in rural areas. This paper has been developed to find out awareness of information and communication technology with the help of internet, social media networks and smart phones.
Contact me- shirodedhiraj@gmail.com
ICT for service delivery in Rural India –scope, challenges and present scenarioiosrjce
The present era of globalization is based on knowledge and information as it directly affects the
economic, social, cultural and political activities of all the regions of the world. Governments worldwide have
realized the role that Information and Communication Technologies (ICT’s) can play in socio-economic
development and India is no exception to this. Majority of Indian population resides in rural areas and their
isolation has restricted them from contributing to the national mainstream, adversely affecting the country’s
growth. Even after 60 years of independence, rural India has remained poor while the remaining country has
developed by leaps and bounds. Rural India is regarded information-poor and characterized by severe poverty,
illiteracy, lack of health services, lack of employment and overall backwardness. Only the proper
implementation of ICT’s can play a pivotal role in their overall development, especially in the sectors of health,
education and government services. To supplement ICT service delivery, Government of India has the National
IT Policy in place and is also on the verge of launching the massive Digital India programme. But this requires
dauntless will power & confidence, effective monitoring, local services & technology combined with lots of hard
work.
Industrial Revolution 4.0, the world over, is bringing a sea change in digitisation and technological automation. Compared to earlier revolutions, the Fourth is evolving at an exponential rather than a linear pace. Moreover, it is disrupting almost every industry in every country, and the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.
India is on a mission to completely embrace digitalisation and digitisation to transform the economic, social and administrative prospects of the country. In July 2015, Prime Minister Narendra Modi laid out his ambitious Digital India plan, with the goals of bridging the digital divide in the country, increasing global
competitiveness, fostering innovation and creating jobs. Just 18 months later, we're already seeing the immense impact of digitisation, not only in terms of GDP growth and job creation, but also, in improving the overall quality of life of citizens, and creating better access to jobs and educational opportunities.
The transition from policy to practice has been swift and steadfast. The Central Bank and government are rapidly bringing India’s population into the formal financial ecosystem. While the private sector continues to utilise and accelerate the spread of digitisation, the launch of central government initiatives such as Smart Cities, Digital India and the National Digital Literacy Mission and Broadband Highway, amongst many others, hold tremendous promise in transforming the socio-economic landscape.
Will Fintech Allow Rural Areas to Become Digitally Sharp.Techugo
India voyaged a long way in its digital transformation journey, and one great example is the access to fintech by people residing in rural regions. More than 30 lakh rural banking outlets are supporting the needs of rural areas, and the government has taken exceptional initiatives.
Based on the same, it won’t be wrong to say that 2023 and the upcoming years will be a gamechanger for rural fintech ecosystems.
Content :
》Digital India Meaning
》Importance
》Scope
》Main Sectors
》Results
》Conclusion
Presentation on Digital India programme launched by Government of India, by Susheel Kumar Tiwari student of Dept. Of Business Management in Hemvati Nandan Bahuguna Garhwal University.
Digital India is a campaign launched by the Government of India to ensure the Government's services are made available to citizens electronically by improved online infrastructure and by increasing Internet connectivity or by making the country digitally empowered in the field of technology.
In that study we want to show how Information and Communication Technologies could help to reduce the information asymmetry in the agricultural sector and naturally improve farmer's profitability and productivity. India has a pressing need to raise food production and agricultural productivity to satisfy his population growh of which around one-fifth is malnourished. Thanks the develop of project like this and improving some fundamental information and payment services and get a better efficinecy in the supply chian other than other services, we expected to growth the indian agricultural production and meet the population's nutritional need.
This presentation was given during the Blockchain Summit 2017 in Melbourne.
The talk analyzed the reason’s why Blockchain is being termed as a disruptive technology which may potentially impacts sectors beyond Banking and Finance.
It elaborates the spectrum of use cases that may be relevant to the Telecom sector especially in the areas of new product & service development (NPD), operational improvement and/or risk management. It emphasizes the key trends that are being witnessed in the Financial sector and drew lights on the future outlook for Blockchain for the Telecom sector.
Live Streaming becomes Mainstream by Sohag SarkarSohag Sarkar
This article analyzes the growing uptake of Video streaming over smart devices and the limitless use cases of Live streaming. It further explores the key drivers have made live streaming truly mainstream.
From Gloom to Boom: The Return of the growing Telecom Market by Sohag SarkarSohag Sarkar
Communication Today (Adi Media publication)
Analysis on the Telecom Investment in 2014:
The market stabilization in 2013 has provided the much needed respite (Optimism) to all the players in the telecom ecosystem; as they await (Cautiously) the next set of rules (to be set forth by the government and the regulator) to further the telecom revolution to the next level. This year therefore would be the “Year of Cautious Optimism” and the operators would show signs of bringing back the sector to its lost glory:
The Spectrum Auction: Survival of the richest? by Sohag SarkarSohag Sarkar
Business Standard magazine: Indian Management Cover Story titled "The Spectrum Auction: Survival of the richest?" (January 2015 edition)
The article provides analysis on the Telecom Spectrum auction planned in March 2015:
Key players (Incumbents, Challengers, New entrants and spectators) contending for the valuable spectrum bands to offer varied services i.e. 2G, 3G or 4G (considering a technology neutral auction).
Impact of the present auction on existing customers (83% of the subscribers who contributes 77% of the overall revenue) as the license to serve the customer comes to an expiry (across 17 out of 22 telecom Circles) for the incumbent operators namely Airtel, Vodafone, Idea and Reliance.
Asian Giants Catching Up with the Global LTE LeadersSohag Sarkar
My articles that has featured in the Mobile Operator Guide: Innovation & Transformation 2014 published by SAP. This is their 2nd annual publication released worldwide. (Page 72 to 76)
Art of Business Transformation by Sohag SarkarSohag Sarkar
The paper analyzes the end-to-end process of Telecom
Business Transformation (which can be applied to other Industries as well). Today majority of the Telcos around the globe are engaged in a business transformation in some form or the other. A business transformation is required to keep pace with the internal and/or the external factors within the Telco. An internal factor maybe defined as an initiative which is driven from within the organization, example “Sustenance like keeping pace with the subscriber growth”. While on the other hand, an external factor may also drive an organization to initiate a business transformation like the readiness for Mobile Number Portability.
Business Transformations are critical to the success of an organization in near as well as long term. The same is required to provide the necessary fillip to an organization and the competitive advantage in the market place. Therefore, getting a business transformation “first time right” is crucial and the paper analyzes all aspects that essentially contribute to the success of a transformation program: Definition of Business Case, Resource deployment, Planning & Budgeting, Partner & Product Selection, Stakeholder Management, Performance Management, Change Management and overall Program Management.
The paper aims at assimilating the knowledge garnered during the implementation of large scale telecom business transformations within and outside the country. And present the key challenges faced by various Telcos in an anecdote manner and introspects the proactive resolution that would have helped in the transformation journey.
Monetization of Mobile Social Media in IndiaSohag Sarkar
The article was presented at the International Conference on "Managing Change in Business and Economy" under the track titled "Contemporary Marketing Practices and Framework for Change".
Telecom Outlook 2011-12 by Sohag SarkarSohag Sarkar
The article analyzes the Telecom Sector and defines the contemporary focus areas (3G, MNP, National Broadband Plan, MVAS, Telecom Manufacturing, and Policy Reforms) for year 2012.
A Business Paper on Third Generation Mobile Services popularly known as 3G.
The paper provides an overview on the 3G Technology that was introduced in India in the year 2011, describing the key players who won the 3G spectrum; how it would enhance and support other sectors like Healthcare, Banking & Finance, Media & Entertainment, Education, MVAS & Equipment Manufacturers. The paper also analyzes the ground work to be performed by operators before the launch of 3G services in the country.
The Art of Socializing, Mobilizing, Localizing, & Monetizing: An Outlook on L...Sohag Sarkar
The paper analyzes the immense popularity of social media over mobile devices and prospects the new theme of location based mobile - social networking.
Impact Of Celebrity Endorsement By Sohag SarkarSohag Sarkar
This Business Paper tries to look beyond the benefits that might be derived out of celebrity endorsement. It tries to understand the process of consumer psychology and impact of celebrity endorsement on the overall process of brand building. The in-depth study of various models brings to light the complexities pertaining to celebrity endorsement. Analyzing its success is as much a necessity as is the understanding of its need. The importance of celebrity management has been emphasized to realize success or failure in its true sense. A symbiotic model has been proposed to define: how to make celebrity endorsement a win-win situation for both the brand and the brand-endorser.
India Telecom 2010 Report titled Broadband for All
Using E Commerce To Fuel Rural Growth In India by Sohag Sarkar
1. A Business Paper on
“Using E-commerce to fuel rural growth in India”
(Towards “In search of excellence” Business Paper Writing Competition)
Using E-commerce to fuel growth in Rural India
2. Using E-commerce to fuel rural growth in India
“There is one thing which is stronger than all the armies of this world, and that is an idea
whose time has come”
-Victor Hugo
1. Introduction
If wishes were horses, rural India would have progressed far beyond her present state. What we
see instead is that policy makers, administrative workers and citizens are at a loggerhead while
rural businesses are still waiting to take off. The purpose of this paper is to define the role of
E-commerce in fueling rural growth in the country. It tries to identify the contemporary needs and
aspirations of rural India and proposes a model to acknowledge the same.
1.1 Why Rural India?
India with a billion plus population holds 600 million of her people in the rural areas. And a hefty
66% of the workforce is employed in agriculture; which is credited to the rural areas. It is therefore,
imperative to toil hard for rural growth & development.
1.2 Why E-commerce?
E-commerce has already added many feathers to its cap, and is being viewed as a strategic tool
that can fuel rural growth in various developed and developing economies of the world. India has
already moved ahead to grab the opportunity and did almost Rs 450 Crores of e-commerce
business in 2004. There is no wonder why the same success story cannot be repeated in India’s
largest consumer segment i.e. the rural market.
2. E-commerce & Rural India
E-commerce in India is still in nascent stage, but even the most pessimistic projections indicate a
boom. For the multifarious benefits that e-commerce offers make it a preferred choice for possible
adoption in rural India.
2.1 What is E-commerce?
It literally means buying and selling of goods and services on the Internet especially using the
World Wide Web (WWW). E-commerce provides multiple benefits to the consumers in the form of
availability of economical goods or services, wider choice and saves time. People can buy and
sell goods or services with a click of a mouse button without moving out of their house or office.
Using E-commerce to fuel growth in Rural India
3. 2.2 Traditional Rural Setup
Urban & Rural India is categorized based on population, primary employment of males &
population density. The rural business encompassed agricultural activities like cultivation,
livestock, forestry, fishing, plantation, etc and other non-agricultural activities. Past economic
figures have registered rural contribution of 50% (20-25% by Agricultural activities alone) towards
Gross Domestic Product (GDP).
The agricultural market is inefficient given the asymmetry of price information, as the prices
prevailing at the mandis are often not known to them. This is because of the presence of
numerous middlemen who siphon off a large part of the price and consequently pass only a small
amount to the farmers. They are also duped while making purchases of agricultural resources.
Asymmetry of information is a formidable problem for the growth of rural India; be it agriculture,
education or entrepreneurship development.
2.3 Introduction of E-commerce
E-commerce can promise an effective market place for the rural populace by doing away with the
traditional roadblocks and asymmetry of information. E-commerce is a wider term and
encompasses: e-governance, e-business & e-citizen.
Needless to mention, that to provide such an e-commerce infrastructure would be an uphill task.
But, it has been aptly said:
"Growth begins when we begin to accept our own weakness"
- Jean Vanier
Using E-commerce to fuel growth in Rural India
4. 2.4 Benefits of E-commerce
E-commerce is a cost-effective simulation of common-place market operations. It reduces space
& time boundaries. It also promotes transparency & accountability and enables swift delivery of
information and services. The rural populace can reap the benefits of this medium by actualizing
their long-established market operations into this.
3. Feasibility Study
The billion dollar question is “Can the success stories of e-commerce be paralleled with rural
India?” This would require a lot of introspection: research & analysis. Methodically speaking, it
would be wise to first gauge the bottlenecks and then try to find solutions to them.
3.1 The Bottlenecks
There are several impediments which make this endeavor a daunting task. The formidable ones
being:
3.1.1 Infrastructure
E-commerce requires the use of Internet and Communication Equipment viz. typically a
Personal Computer (PC). On a broader sense, e-commerce requires the use of
Telecommunication Infrastructure for connectivity and Power Infrastructure for electricity.
At present the rural teledensity stands at an abysmal 1.70 (with negligible contribution
coming from mobile services). While only 30.54 per cent of rural households have
electricity [HDR 2002].
3.1.2 Technology
Information & Communication Technologies (ICT) has to be looked at the backdrop of
e-commerce bottlenecks. Issues relating to content and connectivity have to be
addressed.
3.1.3 Finance
Such a model has to be backed with promising monetary funding. It needs to be seen, as
to who would be at the forefront to this.
3.1.4 Human Resources
Trainers, motivators, supporters, administrators among other people would be required
for such a project to take off.
3.1.5 Diversity
It would be imprudent to consider rural India as a homogenous sector. Perhaps it is very
diverse and her culture, dialect, aspirations, economics, environment, politics, etc maybe
poles apart.
Using E-commerce to fuel growth in Rural India
5. 3.2 The Solutions
We cannot waste another generation to see this project to reality; it’s nor or never. The
implementation has to be fast and should be backed by continuous feedback and assessment.
3.2.1 Infrastructure
The Ministry of Communication & Information Technology is looking forward to
teledensity of 22 by 2007 (prioritizing rural India). The private company like Reliance has
promised to expand in the rural areas. Prices of PCs are coming down heavily and
abridged versions are being created for the rural masses. The concept of Thin Clients
and Fat Servers is just another example which can help provide low-cost computing
solution. The indigenously made Simputer can be tested here. Various organizations are
promoting the use of non-conventional sources of energy like solar energy, biogas, etc.
3.2.2 Technology
Wireless solutions like WiFi, WiMAX and VSAT would be preferred over wired solutions.
But what is interesting is that the Optical Fiber backbone is not being highlighted in this
frame of discussion. Considering the present or proposed OFC Network of BSNL
(4,00,000 km), Indian Railways (35,000 km), Power Grid (14,0000 km), GAIL (14,500 km),
Reliance Infocomm (60,000 km) among others, the ball certainly seems to be in our court.
Today 85% of the taluka headquarters have optic fiber, which can provide the backbone
for telecom and Internet connectivity.
3.2.3 Finance
There are various Government Organizations that support such initiatives. Individual
efforts to provide used PCs to the rural populace have also been in the light of all things;
also the work done by local NGOs. But it would be the private organizations which can
provide a Win-Win solution here. The Government funded projects do not stand much of
a chance for successful completion. This can be explained by a simple philosophy. There
are four ways in which money can be spent: Money earned by us and we spend it on
ourselves; Money earned by us and we spend it on others; Money earned by someone
else and we spend it on ourselves; and Money earned by someone else and we spend it
on others. We tend to be less and less prudent and lackadaisical in money management
as we move from category one through four. And Government funding unfortunately falls
in the latter category and thus prone to abuse and under-utilization.
3.2.4 Human Resources
Training can be imparted by engaging a group of teachers from the upper primary
schools. Rural population has a primary school within 1 km and in 85% of the areas an
upper primary school within a distance of 3 km. We have one of the largest elementary
education system networks in the world.
Using E-commerce to fuel growth in Rural India
6. 3.2.5 Diversity
The cultural diversity is a cause of concern especially the local dialect, but in majority of
the areas the national languages (i.e. Hindi and English) are either spoken or understood.
The intended audience should be trained on English or Hindi software applications.
Software giants like Microsoft has launched a scaled-down and low-cost versions of its
Windows XP Operating System (OS) and has been working on its Project Bhasha since
2003. It is also developing Microsoft Windows and Office in 14 regional languages.
Similarly, Linux has also launched its Hindi version Linux v4. Usually the village
panchayat plays an essential role when projects are Government driven; but for Private
projects the local human resources are put to use. The success of Broadband in South
Korea (having highest connectivity) can be attributed to the Government’s initiative to
promote the use of Internet and making the use of E-learning mandatory in the schools.
Once the rural populace brings the use of Internet into its culture then there would be no
looking back for us. The government should promote the National languages at any cost,
and may even go a step ahead in making it compulsory throughout India. Needless to
mention, the popularity of any languages cannot come unless there is some commercial
angle to it, English being the befitting example.
4. The Model
Only a strategic model can turn the E-commerce project into a reality. The model that would cater
to short as well as long term objectives; would be reviewed periodically and subjected to dynamic
alterations and/or adaptations. It is here that the “5-Star Model” can be proposed:
Strategize & Setup
Spread Simplify
5 Star Model
Showcase Simulate
Using E-commerce to fuel growth in Rural India
7. The following steps would drive the 5-Star Model:
Step I: Strategize & Setup
Extensive research has to be carried out for the selecting the appropriate locations or villages.
The various parameters that have to be gauged are: Infrastructure (Electricity,
Telecommunications, and Education), Population, Road & Transport, Postal & Courier Services,
Primary employment activities, geographical advantages, climate, etc.
After the research, the primary or secondary data would be analyzed to identify threshold value
for the selected parameters. Villages can be selected in this way where the e-commerce can be
applied to fuel rural growth.
The villages may be segmented based on several criterion, for example villages near
Mahabaleshwar can be classified as Strawberry producing zone; whereas those in and around
Nagpur may be classified as Orange producing zone.
These villages would be called as “Hot-Spot” zones, because most of the experiments would be
carried out only within this region. The potential customers would also be studied for example:
cultivators, distributors, transporters, stock-keepers, agro-based companies, etc.
Once the areas are decided, a proposal would be drafted for setting up the required infrastructure:
PCs, Internet, Hot-Spot Kiosks, etc.
Step II: Simplify
Next step would be to process of simplification of the use of e-commerce. It is here that the OS
like Linux v4 or Windows XP would come handy. Every Process or FAQs would be well-
documented in the local language, for example: “What has to be done when the PC or the
Internet connection requires maintenance?” These minute things can hinder the smooth flow of
any project. Till this step there wouldn’t be any interaction with the target segment i.e. the people
who would actually be using the services offered by e-commerce.
Step III: Simulate
The process of selling and buying would be explained to the villagers. They would undergo short
trainings for the same; also the concept of electronic money & online bank accounts would be
introduced to them in due course of time. A real world simulation of the e-commerce webpage
would be provided. The villagers would be given some amount of money (in their online bank
account) and they have to trade their produce over the e-commerce portal and simultaneously
purchase goods (like fertilizers, seeds, etc) or services. Every villager would we allowed to play
the simulation over the weekends, and winners would be given some token gifts. The idea is to
make them understand the concept of online transactions, of economics (sell for more & buy for
less) and of online banking. This being carried out in a playful mood. And, there is also some
Using E-commerce to fuel growth in Rural India
8. reward for performance at the end of the day. Rest would be done by word-of-mouth
advertisement which spreads like wild fire in any rural area.
Stem IV: Showcase
The villagers would gradually be introduced to the real world e-commerce portals; where they
would be offering their products or services as also request for the same. It should always be
remembered that if villagers are not able to make profit out of the e-commerce project; then that
would be the end of the story. We expect that the villagers would learn with their experiences and
make good money out of it. It would be then that the success stories need to be showcased in
upcoming hot-spots or potential areas that can be turned into a hot-spot.
Step V: Spread
Once the process takes off then the frequency of the hot-spots can be increased in the adjoining
or new areas. This would help spread the 5-Star Model thus providing greater reach of e-
commerce as also the extent of rural growth.
5. Various E-commerce Applications
All customers identified during the research phase would be motivated to use the common
e-commerce portal. Initially it would be very elementary & easy to use. Later on advancements
and modifications can be introduced into the portal. A lot of creativity & innovation can go into the
e-commerce portals and nominal charges can be levied on the customers. But the benefit that
can be derived out of the mass utilization of e-commerce would be immense considering the
second most populous country in the world. Some of the rural applications may include:
Job openings
This can help in solving the unemployment problems in the rural areas.
Matrimonial
To help in the selection of suitable bride or bridegroom; across villages.
Land Record Maintenance
To end disputes over land-ownership (which is very common) by means of digitization of records.
Agricultural Technology
New agricultural equipments/hybrid seeds or any other technological advancement can be
introduced to the rural farmers.
Rural Telephony
Economical voice services (using IP Telephony) can be provided to the villagers who want to
communicate to their friends or relatives outside India (inside India it is still not legalized)
Using E-commerce to fuel growth in Rural India
9. Travel
Lot of information can be made available for travels and tours; as also online booking or
reservations.
TeleMedicine or TeleDoctor
Medical consultations can be sought by means of written communication or video conferencing
via economical web cams.
Agriculture Consultancy
Online consultancy can be sought about farm productivity, soil requirements, nourishments, plant
diseases & remedies.
Talent Search Contest
Participation in various talent search events by means of online registration.
Online Banking
This would come much to the respite of insurance and others companies involving bill receipt and
payments like electricity, telephone, etc.
Rural E-lance
rd
The rural populace can outsource their products or services to any 3 party and vice versa.
Example: Producing potatoes for use in French Fries by MNC or big retail food outlets like
Pizzahut or Nirulas.
Auctioning
Rural products can also be auctioned over the Internet, for example: used farm equipments, etc.
Courier Service
Local courier service would grow with the growth of e-commerce transactions.
Market Research
A population of 600 million is a potential market especially for FMCG companies like HLL. To
understand the diverse moods and aspirations of this rural market, paid market researches can
be conducted.
In fact, there may be numerous applications that can get a berth in the rural e-commerce portal.
6. Success Stories
There are several projects that have been introduced with the prime objective of fueling rural
growth. Its’ not important to know if they succeeded or failed, what’s important is to know why
they succeeded or failed?
Using E-commerce to fuel growth in Rural India
10. Here are a few to quote:
Bhoomi
Bhoomi is a self-sustainable e-governance project for the computerizing land records and making
them available to the people of Karnataka for a nominal fee.
TaraHaat
It is an e-marketing portal for the rural populace.
Gyandoot
The goal of the project is to establish community-owned, technologically innovative and
sustainable information kiosks in the rural areas of Madhya Pradesh.
eSeva
It has been initiated by the Andhra Pradesh government to provide “one stop non stop
Government-to-Citizen (G2C) services”.
Information Village
It is a MS Swaminathan Research Foundations’ experiment to electronically deliver knowledge to
the rural masses in Pondicherry.
Drishtee
It is an organizational platform for developing IT enabled services to rural and semi-urban
populations through the usage of state-of-the-art software.
ITC’s eChoupals
eChoupals have been set across the agricultural belt to offer the farmers all the information,
products and services they need to enhance farm productivity, improve farm-gate price realization
and cut transaction costs. All these information are received through their Hindi portal.
Akashganga
Based in Gujrat, it has been conceived with the objective to spread IT among dairy cooperatives.
Setu
An initiative by the Maharashtra Government to create a foundation for citizen centric e-
governance at district as well as taluka headquarters.
Shristi
It is a NGO setup to strengthen the creativity of grassroots inventors, innovators and ecopreneurs
engaged in conserving biodiversity and developing eco-friendly solutions to local problems.
Other Technology-related initiatives
Media Lab Asia (MIT Media Lab & Indian Govt.), Warana Wired Village (Sugarcane Cooperatives,
Maharashtra), SARI (Tamil Nadu), FRIENDS and Akshaya (Kerela), Mahiti Shakti Kendras
(Gujrat)
Other Educational IT initiatives
Headstart (Madhya Pradesh), AP Schools (Andhra Pradesh & NIIT), Vidya Vahini, Community
Learning Centres (Azim Premji Foundation)
Using E-commerce to fuel growth in Rural India
11. 7. Conclusion
E-commerce can fuel rural growth. But, for it to succeed, we have to first step into the shoes of
the rural populace and strategize from all angles. To put it straight, if they are not able to make
money out of it, then the project is doomed to fail. Administrative reorganization happens at the
end of political tenure, red-tapism still persists and government process are not time efficient.
Thus the initiative should come from the private players; it is they who can provide a Win-Win
model. And there should be continuous monitoring and assessment to make it succeed.
“The line between failure and success is so fine that we scarcely know when we pass it;
so fine that we are often on the line and do not know it”
-Elbert Hubbard
Using E-commerce to fuel growth in Rural India