E-COMMERCE IN INDIA - SDA Bocconi Asia Center · 2021. 3. 22. · E-commerce, Indian Government hiked the limit of FDI in E-commerce marketplace model to up to 100 per cent (in B2B

SDA Bocconi Asia Center I E-Commerce in India

Professor Dr Anjana Grewal

Senior Professor and Senior Director-Centers of Excellence-SDA Bocconi Asia Center

Yr 20

E-COMMERCE IN INDIA


E-Commerce In India


E-Commerce in India - An Introduction

▪ E-commerce has transformed the way business is done

in India.

▪ The growth for the industry : has been triggered by an

increase in internet and smartphone penetration.

▪ The ongoing digital transformation in the country is

expected to increase India’s total internet user base to

829 million by 2021 from 636.73 million in FY19.


E-Commerce in India - An Introduction

▪ India’s internet economy is expected to double from US$

125 billion as of April 2017 to US$ 250 billion by 2020,

backed primarily by E-commerce.

▪ India’s E-commerce revenue is expected to jump from

US$ 39 billion in 2017 to US$ 120 billion in 2020,

growing at an annual rate of 51 per cent, the highest in

the world.

▪ Latest Estimate : USD 200bn in 2028 frm 30 bn in 2018


Top 10 E-Commerce Sites - India 2020


Top 10 E-Commerce Platforms in India

▪ Amazon - 200mn monthly visits

▪ Flipkart - 157.5 mn monthly visits( Walmart acquired)

▪ IndiaMart - 52.2 mn monthly visits (B2B market place for

Indian companies)

▪ Myntra - 14.2 mn monthly visits

(Fashion and Lifestyle related / Acquired by Flipkart in

2014. It further acquired Jabong)

▪ Snapdeal - 12.9 mn monthly visits - diversified online

shopping platform - electronics,.. Funded by the Alibaba

Group



▪ Firstcry - 12.5 mn visits .A specialized e-commerce

platform for baby care products, kids’ clothes, and toys,

▪ 1 mg - 9.05 mn monthly visits. 1mg is an online

pharmacy and healthcare information website

▪ Bookmyshow - 7.2 mn monthly visits. BookMyShow is

the leading show ticketing portal and retailer in India.

Since its launch in 2007, BookMyShow has expanded to

sell millions of tickets every month for movies, sports

events, plays, and more.. Covid has led to fast-tracking

of online special events



▪ Nykaa - 5.35 mn monthly visits. Nykaa is a beauty retailer

selling cosmetics, clothes and wellness products to

Indian customers..

▪ 2GUD - 4.65 mn monthly visits The company is originally

an e-commerce shop dedicated to refurbished goods,

offering a wide range of mobile phones and electronics

that have already been used and restored to original

condition.


Trends in E-Commerce

Grocery- e-retail is growing very fast…especially during the pandemic… doorstep/

building/residence, contactless

delivery………Big Basket and Grofers

Consumer buying behaviour is undergoing a change-

long term in nature

Consumers are preferring affordable brands to expensive brands

Companies in all types of businesses are examining and implementing the e-commerce channel, so

multiple channel strategy at work.

Logistics E-Commerce companies- experiencing

very high growth

Technology, Big Data-Analytics, AI are

transforming opportunities in reshaping customer

experiences


About Bata India

▪ Bata India is expanding its e-commerce footprint by

ramping up its presence in online marketplaces, allowing

delivery in over 1,300 cities and ...

▪ Bata will open around 100 stores this year and 80 per

cent of these outlets will be opened through a franchise

model in tier-II and tier-III cities.

▪ The shoemaker, which currently has around 1,500 stores

across India, plans to add 500 outlets by 2023 to

strengthen its network in semi-urban and rural markets,

he said.

▪ The footwear major has taken a new initiative - Bata

Store-on-Wheels - to reach out to its customers in urban

areas.


About Bata India

▪ Bata India CEO Sandeep Kataria said this new channel

allows customers to shop at their doorsteps.

▪ The share of online sales, through its own portal and

third-party e-tailers, is estimated at around five to six per

cent, according to Bata officials.

▪ WhatsApp chats with employees in their neighbourhood

stores,


Developments in the E-Commerce Segment in India

Jan. 2020

In January 2020, Divine Solitaires launched its E-commerce platform.

Feb. 2020

In February 2020, Flipkart set up a ‘Furniture Experience Center’ in Kolkata, its first offline presence in eastern India.

Apr. 2020

In April 2020, Reliance Industries (RIL) started home delivery of essentials in partnership with local kirana stores in Navi Mumbai, Thane and Kalyan.

Apr. 2020

In April 2020, Swiggy received an additional US$ 43 million funding as part of its ongoing Series I round.

May 2020

In May 2020, PepsiCo India partnered with Dunzo for its snack food brands that include Lay’s, Kurkure, Doritos and Quaker. Similar arrangement with Swiggy. Direct to Customer Initiative

May 2020

In May 2020, chocolate maker Hershey India partnered with Swiggy and Dunzo to launch their flagship online store in order to increase reach.

2020–2021

In Union Budget 2020-21, Government has allocated Rs 8,000 crore (US$ 1.24 billion) to BharatNet Project to provide broadband services to 150,000-gram panchayats.


Government Initiatives

▪ Since 2014, the Government of India has announced various initiatives, namely Digital India,

Make in India, Start-up India, Skill India and Innovation Fund.

▪ The timely and effective implementation of such programs will likely support growth of E-

commerce in the country. Some of the major initiatives taken by the Government to promote

E-commerce in India are as follows:



▪ Government e-Marketplace (GeM) signed a

Memorandum of Understanding (MoU) with Union Bank

of India to facilitate a cashless, paperless and

transparent payment system for an array of services in

October 2019.

▪ In February 2019, the Government of India released the

Draft National e-Commerce Policy which encourages FDI

in the marketplace model of E-commerce



▪ In order to increase the participation of foreign players in

E-commerce, Indian Government hiked the limit of FDI in

E-commerce marketplace model to up to 100 per cent (in

B2B models).

▪ Heavy investment made by the Government in rolling out

fiber network for 5G will help boost E-commerce in India.

▪ It is important to read the policy in detail


Achievements

Following are the achievements of the Government in

the past four years:

▪ Internet subscribers reached 687.62 million till

September 2019.

▪ In the festive sale (September 29-October 4, 2019), E-

tailers in India achieved US$ 3 billion of Gross

Merchandise Value (GMV).

▪ Unified Payments Interface (UPI) recorded 1.25 billion

transactions in March 2020, valued at Rs 2.06 lakh crore

(US$ 29.22 billion).

▪ Internet Saathi project benefitted over 26 million women

in India which reached 2.6 lakh villages and 20 states.


Achievements

▪ Under Digital India movement, Government launched

various initiatives like Udaan, Umang, Start-up India

Portal etc.

▪ Udaan, a B2B online trade platform that connects small

and medium size manufacturers and wholesalers with

online retailers and provide them logistics, payments and

technology support, has sellers in over 80 Indian cities

and delivers to over 500 cities.

▪ The Government introduced Bharat Interface for Money

(BHIM), a simple mobile based platform for digital

payments.


Achievements in 4 yrs

Internet subscribers reached 687.62 million till September 2019

In the festive sale (September 29-October 4, 2019), E-tailers in India

achieved US$ 3 billion of Gross Merchandise Value (GMV).

Internet Saathi project benefitted over 26 million women in India which

reached 2.6 lakh villages and 20 states.

Udaan, a B2B online trade platform that connects small and medium size manufacturers and wholesalers with

online retailers and provide them logistics, payments and technology

support, has sellers in over 80 Indian cities and delivers to over 500 cities.


Closing thoughts on E-Commerce in India

▪ The market opportunities for online commerce in the

country are expected to touch $200 billion by 2028 from

$30 billion in 2018

▪ Customers are spending money on low value purchases,

as they do not wish to step out and purchasing power

may be impacted

▪ Grofers, Bigbasket, Lenskart have picked up 80% volume

▪ Festive season will provide boost to sale of big ticket

items


Sources

▪ Media Reports - Business Standard, Financial Express

▪ IBEF

▪ Disfold


THANK YOU

Documents

E-COMMERCE IN INDIA - SDA Bocconi Asia Center · 2021. 3. 22. · E-commerce, Indian Government hiked the limit of FDI in E-commerce marketplace model to up to 100 per cent (in B2B