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Presented By:
Sourya Sangan – 401Priya Singh - 420Shruti Singh – 412Sonali Bhalla – 402Shivam Chutani – 383Shailesh Kumar - 380
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CONTENTS Emergence of E-Commerce Industry in India Key drivers of the E-Commerce Industry Scope of the E-Commerce Industry Challenges of E-Commerce Industry Growth of E-Commerce Industry Major Competitors 4 P’s of E-Commerce Porter 5 Forces Model Present Scenario/ Current Trends Factors affecting future of E-Commerce in India Roadmap Future of E-Commerce Conclusion
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EMERGENCE OF E-COMMERCE INDUSTRY IN INDIA
Shopping is one of the most popular activity on the web
E- commerce evolved in the year 1991
Internet usage & cell phones have changed the way we communicate
E-commerce is an innovative concept
35% is the CAGR of e-commerce industry
Expected CAGR is 10%
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KEY DRIVERS OF THE E-COMMERCE INDUSTRY
Large percentage of Internet subscribers
Explosive amount of smart phone users
Rising standards of living
Time and mobility
Availability of much wider product range
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SCOPE OF THE E- COMMERCE INDUSTRY Changing the game
Delivering experiences
Growing the customer base
Growing opportunities
50-55% revenue generated from Tier 1& 2 cities
Availability of innovative products
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CHALLENGES OF E-COMMERCE INDUSTRY
E- infrastructural issues
Branding & marketing
Logistics and supply chain management
Declining margins
Tax related issues & declining margins
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GROWTH OF E-COMMERCE INDUSTRY Indian commerce has a total worth of Rs.171563 crore and is
expected to hit Rs 2,11,005 crore by the end of 2020
E-commerce industry has a worth of Rs.125732 by volume
Online retail has grown by 61% since December 2014 to 2016 march
2012 2013 2014 2015 20160
50000
100000
150000
200000
B2B C2C
Years
Amou
nt(in
cro
res)
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MAJOR COMPETITORSFLIPKART
Flipkart is an Indian E-commerce company
Founder- Sachin Bansal and Binny Bansal
Market share is 36% by volume Supplier preference is low Customer preference is high Niche Product- none
AMAZON
Amazon is an American E-commerce giant
Founder-Jeff Bezos Market share is 16% by volume Supplier preference is high Customer preference is low Niche product- Amazon Kindle
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FLIPKART
GMV rate is high Time spend at per visit by a
customer is 10 mins Flipkart’s primary focus is
quality Latest Acquisitions- Jabong ,
Myntra
AMAZON
GMV rate is low Time spent at per visit by a
customer is 8 mins Amazon’s primary focus is
customer focused information services
Latest Acquisitions- Ivona software lmt.
FLIPKART VS AMAZON
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4 P’S OF E-COMMERCE
4 P’s of E-
commerce
Product
Price
Place
Promotion
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PRODUCTA product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. E-Com
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PRICE
Base of fixing the price
• Cost plus pricing
• Target return pricing
• Value based pricing
• Competitive pricing
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PLACE
• Distribution channel
• Indian postal service
• E- carter
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PROMOTION
• Sales promotion
• Outdoor hoardings
• Cut-outs
• Digital marketing
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PORTER’S 5 FORCES MODEL
1. Threats of New Entrants Low barriers to entry Access to Distribution Channels Low Capital Investments
2. Bargaining Power of Buyers Buyers Price Sensitivity Buyer Prefers Inexpensive and better products Product Differentiation
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3. Competitive Rivalry Number of Competitors Brand equity Level of advertising expenditure
4. Bargaining Power of Suppliers Different Suppliers Offering Identical products Multiple Selling Platforms provides high bargaining
power.
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5. Threats Of Substitutes
Buyer propensity to substitute Relative price performance of substitutes Buyer Switching cost
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PRESENT SCENARIO/ CURRENT TRENDS
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Flipkart acquired Letsbuy for $25 Million
Ibibo acquired RedBus for Rs. 650 Crores
Flipkart acquired Myntra for $370 Million
Ola acquired Taxi for Sure for $200 Million
Snapdeal acquired Freecharge for $400 Million
Myntra acquired Jabong for $70 Million
NOTABLE ACQUISITIONS
Feb 2012
June 2013
May 2014
March 2015April 2015
July 2016
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TRENDS Time for stronger Mergers and Acquisitions
Living on Valuations
Vertical specific E-tailers on the rise
Retailers are going online
The rural foray
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Men in India shop 3 times more than women
Cash on Delivery remains the most preferred online payment method
60% of online purchases happen during business hours (9am – 5pm)
The Smartphone Saga
TRENDS (CONTD.)
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FACTORS AFFECTING FUTURE OF E-COMMERCE IN INDIA
Indians are getting richer
We are consumers and not producers
Slow growth of offline retail infrastructure
Smartphone and Internet penetration
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ROADMAP Internet penetration
Logistics
Vehicle Tracking
Significance of Tier II and tier III
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INTERNET IN 2020
Number of users
Rural areas
Local language
Online shoppers
Transactions
Travel transactions
LOGISTICS
‘Snapdeal Instant’
Amazon fulfilment centres
Flipkart pickup centres
Paytm’s 2 hour delivery
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VEHICLE TRACKING
o Paytm’s ‘Loginext’
Flipkart’s ‘blackbuck’
TIER II AND TIER III
3G and 4G smartphones
North East region
‘MapMyIndia’
NGO involvement
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FUTURE OF ECOMMERCE Social Media
Drone Delivery
App only approach
Google’s ‘Buy Now’ button
Artificial Intelligence
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THANK YOU
THANK YOU
