School Of Future Studies & PlanningDAVV, Indore

Presentation on“A Model For Growth of E-retailers in India”

(Research Papers Review)

Submitted to: Submitted By:Mr. Vandit Hedau Jayant Nannore

Faculty SFSP, DAVV MBA(BF)

Introduction

• What is E-Commerce?In a layman’s language; purchasing products on the Internet is called

ecommerce.It is an act of having a commercial activity over an electronic medium.In simple words, Electronic commerce involves buying and selling of goods

and services over the World Wide Web. Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to someone sitting miles apart just by click of a mouse.

• What is E-retailing? E-retailing is B2c(business to customers)business model that executes a

transaction between businessman and final customer Subset of e-commerce

– e-tailers Retailers who sell over the Internet

Evolution of E-tailing in India (before 2007)

Evolution of E-tailing in India (after 2007)

Market Size & CAGR Stat

E-commerce formats in India

Foreign E-tailers Player in Indian Market

The e-commerce matrix Business Consumer Government

Business B2BSupply Cain, Wholesalers

B2CRetailers (Goods or Services)

B2GContract bidding,Privatization

Consumer C2BPublic Bidding marketplaces, Auctioneers

C2CPublic flea markets

C2GPublic Government auctions

Government G2BTax and fee collection

G2CTax and fees collection

G2GBudget allocation

Business-To-Consumer Business Model In this form business must

develop attractive electronic marketplaces to entice and sell product and services to consumer

Portal E-Tailers Content provider Transaction broker Market creator Service provider Community provider

Distribution Channel(Conventional v/s online)

Traditional Retailing network(Physical Retail store)

E-Retail Network

How the business model of online retailers add value compared to physical retailers?

Physical Retailers Advantages• Provides face to face

selling, making shopping an experience.

• Customers get access to better Product information through in-store sales representatives.

Disadvantages • Higher Cost of Operation

Online Retailer or E-tailer Advantages• Cost Effective: does not have to

invest in physical infrastructure (store, real state, sales force) except warehouse

• Provides ease and Convenience of shopping at anytime and from any location

Disadvantages • Have to invest in Logistics

operations• Highly competitive• Little customer interaction

Order and Placement Process

ESSENTIALS FOR CUSTOMERS

Delivery network

• Acquire a local player to make the distribution system easy.

• Establish a warehouse in every major city in India like Mumbai,Delhi,Chennai,Kolkata,Hyderabad etc.

• Agent system can play a vital role to deliver your product quickly .

• Efficient inventory system.• India is a geographically complicated country

and languages varies from state to state so you need to employ local people for the product delivery system.

• Use effective communication device to locate your product at a particular instances.

• The packaging system should be so strong that it could protect the product.

Challenges with order fulfillments: Logistics

Problem area: Order Fulfillment is an important part of ecommerce Value chain. Most ecommerce providers use a combination of their own logistics teams and also tie-ups with leading local logistics.

Based on research, the following leading names in logistics names were revealed:

1. DTDC logistics (part of DHL ,all India presence)2. Gati (Maharashtra, Karnataka) 3. BlueDart (part of DHL ,all India presence)4. VRL Logistics (Karnataka)5. Aramex logistics (Maharashtra, Karnataka)6. Vichare courier( Maharashtra)

Most of these provide tracking services for customers and people are willing to pay a premium for proper delivery.

Characteristics of Successful E-Tailing

– High brand recognition– A guarantee provided by highly reliable or well-known vendors– Digitized format– Relatively inexpensive items– Frequently purchased items – Commodities with standard specifications– Well-known packaged items that cannot be opened even in a

traditional store

Product Categories Suitable for E-tailing

REASONS FOR NOT SHOPPING ONLINE

Factors to gain Competitive advantage

The Future of Indian E-Retail Industry

Online shopping behavior among Indians (based upon survey in 4 metro cities)

• 60% online users in India visited a retail site in November 2011.

• The number of active online shoppers is projected to reach 38 million by 2015

• 49% online consumer is young male population ranging between 21 and 29 years.

• Tier-II & Tier-III online consumers are aspiration driven.

THANK YOU!