C 5 Ecommerce

8/10/2019 C 5 Ecommerce

1/19


2/19


3/19

Different E - Commercemodels

B2C

B2B

C2C

C2B


4/19

Evolution of E Commerce inIndia

Source : The Rebirth of E Commerce in India, Ernst & YoungReport (2012)


5/19

Technological trends and majorinnovationsKey Drivers of innovation / growth / profits

Increased Internet usageNumerous VCs & PE investing into e-Commerce

Growth in online retail segment : grown 43%reaches 60% penetration among online usersIncreased scope of M-CommerceUse of Online Advertisement & Social Media forconsumer engagementLogistics : improvement in logistics has been keyto growth in ecommerce sector


6/19

E-commerce in news

DHL is planning to invest at least 100m inIndia piloting a new e-commerce model [1] Snapdeal ties up with Tata Value Homes to sellapartments online [2] The Ministry of Textile signed MoU withFlipkart to provide online marketing platform

for handloom weavers[3]

E-commerce may create up to 50,000 jobs inIndia [4]


7/19

Merger - Acquisition activity inthe E-Commerce Sector

Noteworthy acquisitions in internet retailingin India:

Snapdeal.com acquired Sequoia based Shopo.in

Myntra.com acquired FitiquetteZovi.com acquired Inkfruit.comFlipkart buys out Myntra for $300 million

Snapdeal to tie-up with Tata Value homes toventure into sell apartments on its siteThe Indian M&A eco-system is still in the earlystages compared to countries worldwide likeUS & Israel


8/19

Analysts views of companies /industry : Opportunities

India E-Commerce in nascent stage.Indian E-commerce to explode from $10 billion to $40 innext 5 yearsEstimated e-commerce market will touch $56 billion by2023, driven by mounting E-retailInternet retailing increases by 20% in 2013, rising toRs170.0 billion

Apparel & footwear internet retailing most importantinternet retailing channel in 2013Dell India Pvt Ltd is leading player in internet retailing witan 8% value share in 2013Internet retailing expected to increase at CAGR of 12%

between 2013-18


9/19

Analysts views of companies /industry : Challenges

Challenges

India demandsa cash on

delivery (COD)option

Price wars :

the fiercecompetition

Competitioncompounded

with little brandrecognition

VendorManagement :an inefficientsystem forinventory

management

Cyber Crime inE-commerce

Touch and feelissue


10/19

Major Players in DifferentSegments

OnlineTicketing Makemytrip Redbus Bookmyshow Yatra Irctc

Online Retail &Marketplace Flipkart Amazon Snapdeal Ebay Homeshop18.com

Online Deals Mydala Timesdeal Couponduniya Deals and You Grabbon

Online Portals jeevansaathi.com Gaadi.com Naukri.com Magicbricks.com Shaadi.com


11/19


12/19

Major Players : Flipkart India Pvt Ltd.

Overview

It is an e-commerce company founded in 2007, by Sachin and Binny Bansal. Itoperates exclusively in India, where it is headquarteredin Bangalore, Karnataka. It started off from selling books in 2007, and thenentered consumer electronic category with the launch of mobile phones. Sincethen it kept adding more products. The company's payment services includecash on delivery, a 30-day replacement policy, easy monthly installment (EMI)options, and free shipping .

Statistics

It is headquartered in Bangalore, India and employs around 10,000 people. Thecompany recorded revenues of INR 60.8 billion (USD 1.0 billion) in the fiscal year2013-2014. It reported a loss of 281.7 crores for the fiscal year ending march2014. It reported a net. Recently Flipkart acquired Myntra for USD 300 million.

Competitors

HomeShop18.com - eBay.in Snapdeal - Amazon.in


13/19

Major Players : Mydala.com

Overview

Mydala was inaugurated in November 2009, and co-founded by Anisha Singh (CEO), AshishBhatnagar (CTO)and Arjun Basu (CFO).It is headquartered in New Delhi, India. It wasestablished with the objective of group buying. mydala provides discount offers across

categories such as restaurants, gadgets, entertainment, travel, body art, spas, salons andgyms. Currently, mydala is a marketing platform, which affiliates merchants with consumersthrough channels on Web, WAP and mobile application.

Statistics

Mydala clocked revenues over INR 6000 million last fiscal year. Today selling over150,000 coupons / vouchers a day, the company is aiming at a valuation of USD200 million. It is also aiming a fresh fund raise to the tune of USD 40 million as itaims to expand its operations in the country.

Competitors

Timesdeal - Deals and you Couponduniya - Grabbon


14/19

Major Players : Naukri.com

Overview

Naukri.com is an Indian job portal operating in India founded in March 1997 by SanjeevBikhchandani. It is Indias No.1 Job Site, offering end to end recruitment service. It publishes amonthly report called Naukri Job Speak. The site was established in 1997 by Info Edge(India). Info Edge is a listed company on the Bombay Stock Exchange and National StockExchange. It went public in November 2006

Statistics

. It has 4.5 million registered users with over 150 million page views per month. It advertisesover 75000 jobs and offers innovative recruitment solutions, providing their 2000 clients withthe right relevant candidates. Its aim is to enhance, simplify and reduce the recruitment cycle.Its profit in the first quarter of financial year 2015 increased 35.4 percent to Rs. 398 crores vsRs. 294 crore reported in the same quarter a year ago.

Competitors

IIM jobs.com -Shine.com Monsterjobs.com -Linked in


15/19

MACROECONOMIC EFFECTS

IT Act has been introduced to meet the followingobjectives:

1. Curb Cyber Crime

2. E-governance transactions viability3. Enable e-commerce transactions

The Government of India has given approval to 100 percent FDI in ecommerce and has come to the decision of

exempting such transactions from the tax constraints.Other incentives such as exemption of tax on interest onexternal commercial borrowings and lower taxation hasbeen extended to the IT sector


16/19

MACROECONOMIC EFFECTS

For international trade, the European Commissionhas passed on the responsibility of collecting theapplicable VAT to the suppliers of products.

Whereas, the United States, opposes any suchtaxes on the net price.Domestic e-commerce companies are facingcompetition from global entities such as Amazon,

Alibaba, Rakuten and Walmart. These companiesare investing heavily to increase their presence inthe Indian market.Indian software industry has already claimed itshold by providing unparalleled IT solutions to the


17/19

REFERENCES

Chilkoti,A. (2014) DHL positions itself for India e -commerce boom, FinancialTimes, August 26, http://blogs.ft.com/beyond-brics/2014/08/26/dhl-positions-itself-for-india-e-commerce-boom/ (as on August 28,2014)

Amy Kazmin . (2014) Indias Snapdeal tries experiment to sell apartments online,Financial Times, August 26, http://www.ft.com/intl/cms/s/0/21c8504a-2d1d-11e4-

911b-00144feabdc0.html#axzz3BhpykU5v (as on August 28,2014)Modi govt joins hands with Flipkart to boost handloom sector; provide onlineplatform for weavers, Economic Times, August 25,http://articles.economictimes.indiatimes.com/2014-08-25/news/53205435_1_handloom-weavers-flipkart-marketing-platform (as on

August 28,2014)PTI, (2014) E -commerce may create up to 50,000 jobs in India, Times of India, May 26,

http://timesofindia.indiatimes.com/tech/jobs/E-commerce-may-create-up-to-50000-jobs-in-India/articleshow/35615092.cms (as on August 28,2014)The Rebirth of E Commerce in India, Ernst & Young Report (2012)E Commerce in India: Legal, Tax and Regulatory Analysis, Nishith Desai

Associates (2013)State of e Commerce in India, comScore Research Report for ASSOCHAM India (2013)The Rise and Rise of E Commerce in India, India Brand Equity Foundation(2013)


18/19

REFERENCESPTI, (2014) E -commerce may create up to 50,000 jobs in India, Times ofIndia, May 26, http://timesofindia.indiatimes.com/tech/jobs/E-commerce-may-create-up-to-50000-jobs-in-India/articleshow/35615092.cms (as on

August 28,2014)State of E-commerce in Indiahttp://www.assocham.org/arb/general/Comscore_%20ASSOCHAM-report-

state-of-ecommerce-in-india.pdf (as on 27 August 2014)Key Growth drivers for the future E-Commerce Industry: The change ofParadigm and its Future, HCL Technologies (2013)India Technology Product M&A Industry Monitor Reporthttp://www.ispirt.in/Media/Documents/India-M-A-Product-Industry-Monitor-June-24-2014-FINAL.pdf (as on 27 August 2014)

http://www.ecommerce.etcetra.co.in/2011/06/29/logistics-and-its-challenges-in-indian-ecommerce/ The Growing Pains of Indian E-commerce : What you need to knowhttp://www.forbes.com/sites/morganhartley/2013/01/24/the-growing-pains-of-indian-e-commerce-what-you-need-to-know/ (As on 27 August 2014)


19/19

THANK YOU