Effect of globalization in E-commerce final report .doc

8/17/2019 Effect of globalization in E-commerce final report .doc

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A

Project Study Report

EFFECT OF GLOBALIZATION ON E-COMMERCE

Submitted in Partial fulllment for the degree of

Bachelor of business Administration

S.S. JAIN SUBODH P.G. COLLEGE JAIPUR

(2016)

SUBMITTED BY : SUBMITTED

TO: AKSHAY SHARA R! AKSHA"

A#$"YA RA%

B!B!A! S&&S"&R $'


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CERTIFICATE

(erticate that this project entitled EFFECT OF GLOBALIZATION ON E-

COMMERCE is a report of project )or* done independently by r! AKSHAY

SHARA under my guidance and super+ision and that it has not pre+iously

formed the basis for the a)ard of any degree, fello)ship or associate ship to

him!

AKSHA" A#$"YA RA%

S!S! -A$. S/B%#H P!0! (%11&0&

-A$P/R

#&(1ARA"$%.


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I hereby declare that the project report entitled EFFECT OF GLOBALIZATION ON E-

COMMERCE i bona!ide record o! done by "e that it ha not pre#io$ly !or"ed the

bai !or the a%ard to "e !oe any de&ree' aociate hip' !ello%hip' or other i"ilar title

o! any other ociety(

A)*+A, *+ARMA

*(*( AIN *.BO/+ 0(G( COLLAGE

AI0.R


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A(K.%21&&."

I a" $in& thi opport$nity to e1pre "y &ratit$de to e#eryone %ho $pported "e

thro$&ho$t the co$re o! thi BBA project( I a" than2!$l !or their apirin& &$idance'

in#al$ably contr$cti#e critici" and !riendy ad#ice d$rin& the project %or2( I a"

incerely &rate!$l to the" !or harin& their tr$th!$l and ill$"inatin& #ie% on a n$"ber o! i$e related to the project.

F$rther"ore I %o$ld alo li2e to ac2no%led&e %ith "$ch appreciation the cr$cial role o!

"y !ac$lty &$ide Mr( A2hat Aditya Rao %ho &a#e the per"iion to $e all re3$ired

e3$ip"ent and the neceary "aterial to co"plete the ta2( I ha#e to appreciate the

&$idance &i#en by other $per#ior a %ell a the panel epecially in o$r project

preentation that ha i"pro#ed o$r preentation 2ill than2 to their co""ent and

ad#ice.


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$ . # & 3

*(No( Content

4( Introd$ction

5( Indian e-co""erce landcape

6( Objecti#e o! the t$dy

7( Methodolo&y

8( Li"itation

9( *tatitic : Fact abo$t E-co""erce in India

;( Re$lt o! the *t$dy Re!erence

$."R%#/("$%.


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The en#iron"ent !or"ed by the &lobali?ation and technolo&ical chan&e tri&&ered

political' ocial and c$lt$ral chan&e all aro$nd the %orld by the econd hal! o! the 5>th

cent$ry( A %ell a the ocial and c$lt$ral chan&e the &lobali?ation ha#e alo created a

ne% &lobal econo"y %hich pro#ide opport$nitie !or the !ir" to acce to ne% "ar2et

and participate in &lobal prod$ction net%or2( Beide the opport$nitie the ne% econo"y

!or"ed a "ore co"petiti#e en#iron"ent !or the !ir" in %hich the %inner are the one

that can adopt &lobal teleco""$nication and tranport lin2( The adoption the internet

"a2e it cheaper and eaier !or !ir" to e1tend their "ar2et' "ana&e their operation

and coordinate #al$e chain acro border( Red$ction in the cot o! tranaction and

in!or"ation' technolo&y ha red$ced "ar2et !riction and pro#ided i&ni!icant i"pet$ to

the proce o! broadenin& %orld "ar2et( ICT adoption !oter &lobali?ation by red$cin&

the cot o! tranaction and coordination and creatin& ne% and e1panded "ar2et %ith

econo"ie o! cale @Totonchi and )a2a"anhadi 5>445;4( Re&ardin& &lobali?ation and

e-co""erce to&ether it i clear that &lobali?ation proce ha !or"ed bai !or e"er&ence

o! e-co""erce( +o%e#er in the ne1t tep the relationhip bet%een &lobali?ation and e-co""erce i Contro#erial( In thi t$dy thi relation ha been e#al$ated( E#idence

preented in the t$dy ho% that the !$rther &lobali?ation &oe e-co""erce di!!$e in the

le de#eloped part o! the %orld( On the other hand the di!!$ion o! eco""erce alo

$pport the de#elop"ent o! the &lobali?ation( In thi ene it can be aid that rather than

an e!!ect o! &lobali?ation on e-co""erce or #ice #era "entionin& a "$t$al relation

e1it( T$r2ih cae alo de"ontrate that internationali?ation o! the econo"y $pport

the di!!$ion o! e-co""erce ho%e#er the direction o! the relation #arie dependin& on the

technolo&ical de#elop"ent le#el o! the co$ntry in 3$etion(

1. Globalization of the Economy

By the econd hal! o! 5>th cent$ry econo"ic &lobali?ation i reco&ni?ed a one the "ot

po%er!$l !orce that haped the "odern %orld( In thi period international trade and

!inancial !lo% ha#e beco"e increain&ly i&ni!icant @Fran2el' 5>>>5( Globali?ation i

not only characteri?ed by the &ro%th o! the International trade o! &ood and er#ice' b$t

alo the political and ocial lin2a&e that acco"pany &ro%in& econo"ic inte&ration(

O$t%ardly' the dri#in& !orce ee" to be the decline in ad"initrati#e barrier to trade'

harp !all in the cot o! tranportation and co""$nication' !ra&"entation o! prod$ction

procee and the de#elop"ent in in!or"ation and co""$nication technolo&y @Gaton

and )halid' 5>4> 6( Globali?ation proce inte&rated the co$ntrie in econo"y j$t a

the other "any !ield( A a nat$ral re$lt o! the inte&ration li3$idity o! 2no%led&e' labo$r'

capital and &ood !airly increaed( Thi li3$idity bro$&ht ne% contr$ction procee

to&ether( 0arallel to &lobali?ation' "acroecono"ic balance ha#e been reaonably

a!!ected d$e to dyna"ic "o#e"ent o! !orei&n capital' in thi !ra"e%or2 &lobali?ation

a!!ected econo"y deeply a %ell a c$lt$re and politic( The &oal o! &lobali?ation i to


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pro#ide or&ani?ation a $perior co"petiti#e poition %ith lo%er operatin& cot' to &ain

&reater n$"ber o! prod$ct' er#ice and con$"er( Thi approach to co"petition i

&ained #ia di#eri!ication o! reo$rce' the creation and de#elop"ent o! ne% in#et"ent

opport$nitie by openin& $p additional "ar2et' and accein& ne% ra% "aterial and

reo$rce @In#etopedia' 5>45(

2. Globalization and E-Commerce

OEC/ @5>>4 de!ine e-co""erce in t%o cope orted a broad and narro% one(

Accordin& to the broad de!inition' e-co""erce i the p$rchae or ale o! &ood bet%een

the b$inee' ho$ehold' indi#id$al' &o#ern"ent and other p$blic and pri#ate

or&ani?ation o#er co"p$ter net%or2( Narro% de!inition on the other hand i al"ot

a"e a the broad de!inition o! the e1ception that the intr$"ent o! trade i li"ited %ith

the internet @OEC/' 5>>4(

Globali?ation and e-co""erce are e1pected to chan&e econo"ic tr$ct$re o! nation( The

e1pected $perior econo"ic tr$ct$re i "ainly in!l$enced by the abo#e t%o !actor( In

literat$re the ne% tr$ct$re i &enerally re!erred a )no%led&e Econo"y' Ne% Econo"y

or E-econo"y( E-co""erce not only red$ce co""$nication cot' b$t alo increae

!le1ibility in locatin& acti#itie( The t$die in the $bject clearly ho% that internet

technolo&y ha led to an increae in international trade @Totonchi and )a2a"anhadi'

5>445;6( In the co$re o! tranition !ro" the old econo"y to the ne% one' e-co""erce

ha eli"inated the proble" o! ti"e and pace %hich in ret$rn ha lo%ered cot in

prod$ction proce( Th$ e-co""erce ha beco"e a dyna"ic !actor in the ne% econo"y(Altho$&h electronic co""$nication technolo&ie ha been bein& $ed ince the

be&innin& o! 4=' $e o! thoe technolo&ie !or trade ha beco"e %idepread ince the

econd hal! o! the 4==>( Beca$e it rather ne%' it ha been percei#ed in e#eral %ay

by di!!erent intit$tion' or&ani?ation and indi#id$al @*a#r$l and )DlD' 5>44584( E-

co""erce conit o! the e1chan&e o! data to !acilitate the !inancin& and pay"ent( E-

co""erce i the e1chan&e o! &ood and er#ice bet%een !o$r broad &ro$p o#er the

Internet( Thi can happen bet%een b$inee and con$"er' b$inee and b$inee'

intra-co"panie' and con$"er and con$"er( E-co""erce enco"pae any

co""ercial acti#ity that ta2e place directly bet%een a b$ine' it partner or it

c$to"er thro$&h a co"bination o! co"p$tin& and co""$nication technolo&ie( It

ta2e into acco$nt ale' "ar2etin&' co""$nication' er#ice' and %or2!lo% @Roen'

5>>>(

Re&ardin& the &lobali?ation i$e the ar&$"ent pro#ided abo#e raie the 3$etion

%hether &lobali?ation $pport eco""erce or e-co""erce accelerate the &lobali?ation

proce( The t$dy o! )rae"er et( al @5>>5 introd$ce that the internet i $ed "ainly !or


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the in!or"ation e1chan&e %ith c$to"er and $pplier and e-co""erce ha a direct and

"eanin&!$l e!!ect on &lobali?ation( Li2e%ie literat$re on the i$e ho% that !ir" $e

the internet "ainly !or p$rchain& rather than ale( It "ajor reaon i that !ir" in their

!orei&n p$rchae !ace lot o! co"ple1 procee' alo p$rchain& !ro" !orei&n co$ntrie

re3$ire coordination %ith thoe $pplier %hich ha#e a lon& ditance !ro" the"' and o

electronic p$rchae #ia the internet ha#e o "any econo"ic ad#anta&e !or co"panie(

Cone3$ently beca$e the e-co""erce concept i "$ch border then it percei#ed the

relationhip bet%een &lobali?ation and e-co""erce i neb$lo$( Rather than tal2in&

abo$t the e!!ect o! &lobali?ation on e-co""erce or #ice #era "entionin& a "$t$al

relation %o$ld be "ore acc$rate additionally technolo&ical tr$ct$re o! a co$ntry !airly

a!!ect the direction o! the relation(

About %&(#

The Or&ani?ation !or E$ropean Econo"ic Co-operation @OEEC %a !or"ed in 4=7< to

ad"initer A"erican and Canadian aid in the !ra"e%or2 o! the Marhall 0lan !or the

recontr$ction o! E$rope a!ter orld ar II( It tarted it operation on 49 April 4=7


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*ince 4=7=' it %a head3$artered in the Chtea$ de la M$ette in 0ari' France( A!ter the

Marhall 0lan ended' the OEEC !oc$ed on econo"ic i$e(

The Or&ani?ation !or Econo"ic Co-operation and /e#elop"ent @OEC/ @French

Or&ani?ation de cooperation et de de#elop"ent econo"ie' OC/E i an international

econo"ic or&ani?ation o! 67 co$ntrie' !o$nded in 4=94 to ti"$late econo"ic pro&re

and %orld trade( It i a !or$" o! co$ntrie decribin& the"el#e a co""itted to

de"ocracy and the "ar2et econo"y' pro#idin& a plat!or" to co"pare policy e1perience'

ee2in& an%er to co""on proble"' identi!y &ood practice and coordinate do"etic

and international policie o! it "e"ber(

In 4=7


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*e#eral player ha#e etablihed their place in e-co""erce "ar2et j$t in !e% year( ith

the riin& de"and o! di&ital co""erce' inno#ati#e tart$p are e"er&in& in all e&"ent(

+o"e &ro%n player are tryin& to co"pete head-on %ith &lobal player %ho ha#e the

ad#anta&e o! cale' technolo&y and deep poc2et( Accordin& to /eloitte t$dy JGlobal

0o%er o! Retailin& 5>48' A"a?on contin$e to do"inate the %orld o! e-Co""erce

%ith net prod$ct ale o! K94 billion in 5>46( Flip2art i the lar&et e-tailer in India %ith a

#al$ation o! abo$t K44 billion and tryin& to raie !$nd to co"pete %ith &lobal bi&&ie

li2e A"a?on and Alibaba( *napdeal i another ho"e&ro%n player %ith a #al$ation o! K8

billion( 9 In October' *napdeal raied K95; "illion !ro" the apanee teleco" and "edia

&ro$p *o!tban2' %ho alo ha a 6; ta2e in China e-co""erce leader Alibaba( Other

"er&in& player are Boo2My*ho% %ith al"ot => o! the online entertain"ent

tic2etin& "ar2et 0ayt" %ith al"ot 5> "illion $er i leadin& pro#ider o! #irt$al %allet(

The &lobal e-co""erce "ar2et i "ore ad#anced in ter" o! technolo&y' a%arene' and

pay"ent yte"( A"a?on and Alibaba are t%o bi& player %hen it co"e to &lobal e-co""erce "ar2et( Alibaba acco$nt !or "ore than o! all online p$rchae in China

and ha a &lobal preence( It "ana&e the "ar2etplace and ha co""iion baed

b$ine "odel %ith no prod$ct o! it o%n( A"a?on' on the other hand' tarted a online

boo2 tore and e1panded the b$ine a "ar2etplace and alo ell it o%n con$"er

electronic $ch a )indle eBoo2 reader' Fire Tablet' and Fire TP( Only t%o p$re play

%eb-only e-tailer @A"a?on and / o! the top 8> e-tailer %ere lar&e eno$&h to ran2

a"on& top 58> retailer!

&nabling "echnologies

The &reater adoption o! Internet and "artphone i the bi&&et dri#er o! e-co""erce in

India( Internet penetration i rapidly increain& %ith aro$nd 6>> "illion $er in 5>47(

The "artphone i teadily &ro%in& and conit o! 68 o! the o#erall "obile phone

"ar2et in the co$ntry( ; The $cce rate o! o"e o! the technolo&ie i directly

connected to the $cce o! e-co""erce(

(loud: ost of the e4tailers are depending on cloud technology for its

5e6ibility, scalability, a+ailability, mobility, and e7ciency!


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obile Applications: ore than 89 million people in $ndia access internet

through mobile de+ices! "his is the primary reason for e4tailers to focus their

e;orts on mobile app penetration across the country!

#igital Ad+ertisements: "he digital ad+ertisement industry is gro)ing rapidly

as there is a gro)th in digital communication de+ices around the )orld! "heincrease in smartphones, tablets is enabling ad+ertisers to reach a )ider

audience!

Search &ngine %ptimi: 2ith thousands of products in the digital

catalogues, the e4commerce players nd it easy to be +isible )ith the help of

S&% technology!

"rends


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&4tailing =electronic retailing>: E-tailin& @le !re3$ently etailing i the ellin& o! retail &ood on the Internet( *hort !or Helectronic retailin&'H and $ed in Internetdic$ion a early a 4==8' the ter" ee" an al"ot ine#itable addition to e-"ail' e- b$ine' and e-co""erce( E-tailin& i ynony"o$ %ith b$ine-to-con$"er @B5C

tranaction.

4tailing: Mobile de#ice are re#ol$tioni?in& hoppin& in India and brand that e"brace

"obility a a pri"ary "ar2etin& plat!or" co$ld potentially do$ble or triple their ale in

the hort and "edi$" ter"' accordin& to reearch by creati#e and di&ital co""$nication

a&ency /ra!t!cb India( *o co""itted are Indian "obile phone $er to "obile hoppin&'

8; o! people $r#eyed aid they %o$ld b$y anythin& on a "obile phone' #er$ the

&lobal a#era&e o! 7=(

Fro" proprietary reearch co""iioned by /ra!t!cb acro ei&ht "ajor &lobal

econo"ie' China ha the "ot acti#e "art phone "ar2et in the %orld %here people $etheir "obile de#ice !or "ore !$nction than in other co$ntrie( On a#era&e' Chinee

"art phone $er e"brace 7(= acti#itie' %ith the .*A a#era&e at 7(; and India $er at

7(7(

&4commerce: The internet ha been li2ened' in it ability to chan&e the nat$re and

operation o! "ar2et' to $ch pat epochal e#ent a the ad#ent o! railroad and the

introd$ction and &ro%th o! the telephone yte"( Globali?ation ha been de!ined a the

proce by %hich "ar2et and prod$ction in di!!erent co$ntrie are beco"in&

increain&ly interdependent d$e to the dyna"ic o! trade in &ood and er#ice and !lo%

o! capital and technolo&y( Globali?ation can be de!ined a any econo"ic tranaction

%here the b$yer and eller co"e to&ether thro$&h the electronic "edia o! the Internet'

!or" a contract$al a&ree"ent concernin& the pricin& and deli#ery o! partic$lar &ood and

er#ice' and co"plete the tranaction thro$&h deli#ery o! pay"ent and &ood and

er#ice a contracted( E-Co""erce re!er to a %ide ran&e o! online b$ine acti#itie

!or prod$ct and er#ice

4commerce: The phrae mobile commerce %a ori&inally coined in 4==; by )e#in

/$!!ey at the la$nch o! the Global Mobile Co""erce For$"' to "ean Hthe deli#ery

o! electronic co""erce capabilitie directly into the con$"er hand' any%here'

#ia %irele technolo&y( Many chooe to thin2 o! Mobile Co""erce a "eanin& Ha retail

o$tlet in yo$r c$to"er poc2et(

Mobile co""erce i %orth .*K56> billion' %ith Aia repreentin& al"ot hal! o! the

"ar2et' and ha been !orecat to reach .*K;>> billion in 5>4;( Accordin& to BI

Intelli&ence in an$ary 5>46' 5= o! "obile $er ha#e no% "ade a p$rchae %ith their

phone(

http://searchmobilecomputing.techtarget.com/definition/e-mailhttp://searchcio.techtarget.com/definition/e-businesshttp://searchcio.techtarget.com/definition/e-businesshttp://searchcio.techtarget.com/definition/e-commercehttp://searchcio.techtarget.com/definition/B2Chttps://en.wikipedia.org/wiki/Electronic_commercehttps://en.wikipedia.org/wiki/Electronic_commercehttps://en.wikipedia.org/wiki/Wirelesshttps://en.wikipedia.org/wiki/Mobilehttps://en.wikipedia.org/wiki/Orders_of_magnitude_(currency)https://en.wikipedia.org/wiki/Orders_of_magnitude_(currency)http://searchmobilecomputing.techtarget.com/definition/e-mailhttp://searchcio.techtarget.com/definition/e-businesshttp://searchcio.techtarget.com/definition/e-businesshttp://searchcio.techtarget.com/definition/e-commercehttp://searchcio.techtarget.com/definition/B2Chttps://en.wikipedia.org/wiki/Electronic_commercehttps://en.wikipedia.org/wiki/Wirelesshttps://en.wikipedia.org/wiki/Mobilehttps://en.wikipedia.org/wiki/Orders_of_magnitude_(currency)


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%B-&("$'&S %? "H& S"/#Y

4 Analy?e the 0rod$ction proce acro di!!erent co$ntrie(

5 /ecribe the inte&ration o! trade by &lobali?ation(

6 Lit the !actor that ha#e enabled Globali?ation(

7 To decribe the preent tat$ and !acilitator o! E-Co""erce in India(

8 To analy?e the preent trend o! E-Co""erce in India(

9 To e1a"ine the barrier o! E-Co""erce in India(

4( Analy?e the prod$ction proce acro di!!erent co$ntrie(

.ntil the "iddle o! t%entieth cent$ry' prod$ction %a lar&ely or&ani?ed %ithin co$ntrie(

Only ra% "aterial' !ood t$!! and !inihed prod$ct %ere e1ported to other co$ntrie(India e1ported ra% "aterial and !ood t$!! and i"ported !inihed &ood( Trade %a the

"ain channel connectin& ditant co$ntrie( To%ard the end o! 5>th cent$ry lar&e

co"panie called M$lti-National corporation @MNC e"er&ed on the cene( A MNC i

a co"pany that o%n or control prod$ction in "ore than one Nation( MNC et $p

o!!ice and !actorie !or prod$ction in re&ion %here they can &et cheap labo$r and other

reo$rce(

5( /ecribe the inte&ration o! trade by &lobali?ation(

For a lon& ti"e !orei&n trade ha been the "ain channel connectin& co$ntrie( E#en a

early a


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ditance at lo%er cot and in the "o#e"ent o! people !ro" one co$ntry to

another in a hort ti"e(

(b) In!or"ation and co""$nication technolo&y In!or"ation and co""$nication

technolo&y @or IT in hort ha played a "ajor role in preadin& o$t

prod$ction o! er#ice acro co$ntrie( Many MNC are er#ice baed

co"panie there!ore the tran!er o! in!or"ation i #ery #ital to the"(

5( Liberali?ation o! !orei&n trade and In#et"ent policy

(a) Re"o#in& Trade Barrier %hen the &o#ern"ent on i"port i"poe ta1 it i

called a trade barrier( Go#ern"ent $e the trade barrier to increae or

decreae @re&$late !orei&n trade and to decide %hat 2ind o! &ood and ho%

"$ch o! each ho$ld co"e into the co$ntry(

(b) Liberali?ation o! In#et"ent policie Barrier on !orei&n in#et"ent %erere"o#ed to a lar&e e1tent enablin& "any MNC to et $p their !actorie in

India( Th$ the rapid i"pro#e"ent in technolo&y and the liberali?ation o!

!orei&n policie pa#ed the %ay !or &lobali?ation in India(

7( To decribe the preent tat$ and !acilitator o! E-Co""erce in India

Today e-co""erce i a by%ord in Indian ociety and it ha beco"e an inte&ral

part o! o$r daily li!e( There are %ebite pro#idin& any n$"ber o! &ood and er#ice(

Then there are thoe' %hich pro#ide a peci!ic prod$ct alon& %ith it allied er#ice(

Facilitator o! E-Co""erce in India(

• In!or"ation directorie

• Ban2

8( To analy?e the preent trend o! E-Co""erce in India

India i de#elopin& rapidly and i! de#elop"ent i to be "ea$red' ho% can %e i&norethe role o! eco""erce in it( The internet $er bae in India "i&ht till be a "ere 4>>

"illion %hich i "$ch le %hen co"pared to it penetration in the .* or .) b$t it

$rely e1pandin& at an alar"in& rate( The n$"ber o! ne% entrant in thi phere i

ecalatin& daily and %ith &ro%th rate reachin& it ?enith it can be pre$"ed that in year

to co"e' c$to"ary retailer %ill !eel the need to %itch to online b$ine(


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9( To e1a"ine the barrier o! E-Co""erce in India

*o"e o! the in!ratr$ct$ral barrier reponible !or lo% &ro%th o! eco""erce in India

are a !ollo%( *o"e o! thee e#en preent ne% b$ine opport$nitie(

a 0ay"ent Collection hen &et paid by net ban2in& one ha to end $p &i#in& a

i&ni!icant hare o! re#en$e @7 or "ore e#en %ith a b$ine o! thin "ar&in(

Fra$d$lent char&e' char&e bac2 etc( all beco"e "erchant reponibility and

hence to be acco$nted !or in the b$ine "odel

b Lo&itic ,o$ ha#e to deli#er the prod$ct' a!e and ec$re' in the hand o! the

ri&ht &$y in ri&ht ti"e !ra"e( Re&$lar pot doent o!!er an acceptable er#ice

le#el co$rier ha#e hi&h char&e and li"ited reach

c Pendor Mana&e"ent +o%e#er ad#anced yte" "ay be' #endor %ill ha#e to

co"e do%n and deal in an ine!!icient yte" !or in#entory "ana&e"ent( Thi %ill

lo% do%n dratically( Mot o! the" %ont carry any di&ital data !or their prod$ct( No nice loo2in& photo&raph' no di&ital data heet' no "echani" to

chec2 !or daily price' a#ailability to 2eep yo$r ite $pdated(

&"H%#%1%0Y


16/35

For the p$rpoe o! reearch' o$r "ethod need analyi o! certain indicator %hich can

brin& the clearer pict$re on relationhip bet%een e-co""erce and &lobaliation(

Analytical preparation %ill need !ollo%in& "ethod(

4( Inter#ie% %ith an opti"al a"ple pace %hich %ill #ario$ly incl$de &eneral

pop$lace' trade analyt' "edia' &o#ern"ent etc(

5( Findin& correlation bet%een #ario$ trend $ch a r$ral-$rban diparity'

increain& con$"eri" and per capita e1pendit$re' trend o! conpic$o$

con$"ption' etc(

6( /oin& peronal e1peri"ent and readin& to identi!y array o! para"eter' $ch

a thoe related to cah on deli#ery' &ood ret$rn' %indo% hoppin& etc(

7( All the abo#e "ethod %ill need data collection at pri"ary and econdary

le#el(

Follo%in& i the lit and e1a"ple o! certain indicator %hich %ill be analyed in the ne1t

ection(

a( I"pact on "all and "edi$" ind$trie(

E-Commerce brings in significant opportunities for the Small and Medium-

sized Enterprises (SME) sector in India which accounted for more than 8 per

cent of the !" in #$%&. 'otwithstanding the contribution to the Indian

econom onl a miniscule percentage of enterprises in this sector are present

on the web.

b( Eae o! pendin&(

"ersonalized e*perienced is a great wa to encourage customers to fill their

shopping carts. Man customers are unsure or are too laz to loo+ through all

the possible options on a website. ,he are more li+el to use our initial

naigations to get to the part of our website that has something li+e what

the are loo+ing for. rom there the ma scan through some options.

c( Ta1ation(

E-co""erce ector i b$??in& %ith deal and ale( B$t %hen it co"e to ta1ation

policy' the ector doe not i??le' epecially on the B$d&et day( The only par2 %a the Go#ern"ent pled&e to i"ple"ent the "$ch-delayed Good and *er#ice

Ta1 @G*T by April' 5>49 and the i"pro#e"ent aociated %ith debit and credit

card tranaction(


17/35

d( Rie in "obile(

A"on& the "obile phone $er' the percenta&e o! *"artphone $er i e1pected

to increae dratically( There %ere aro$nd 4(46 billion *"artphone $er in 5>45 i(e(

aro$nd 54;.

e( 0er capita inco"e

It is expected that Internet penetration to increase from 32% in 2015 to 59% in

2020, translating to a near-doubling of the Internet user base, the !" ban# said.

It estimates India $ill hae almost 320 million online shoppers b& 2020 compared$ith 50 million in 2015.

'er capita incomes are li#el& to double b& 2025 and this should drie higher

aspirations of the Indian consumer.

http://dazeinfo.com/2013/11/18/worldwide-smartphone-sales-crossed-250-million-q3-2013-apple-inc-aapl-nokia-corp-nok-disappoint-report/http://economictimes.indiatimes.com/topic/Indian-consumerhttp://dazeinfo.com/2013/11/18/worldwide-smartphone-sales-crossed-250-million-q3-2013-apple-inc-aapl-nokia-corp-nok-disappoint-report/http://economictimes.indiatimes.com/topic/Indian-consumer


18/35

1$$"A"$%.S

The t$dy done ha "any li"itation both !oreeen and $neen( The i?e and co"poition

o! a"ple pace i a #ery co"ple1 ta2 to chooe and analye !ro"( Men' %o"en' &irl'

boy' rich' poor' r$ral' $rban' all ha#e di!!erent de"and and ched$le %hich enable

di!!erent e1perience o! $ch procee li2e e-co""erce( It i not opti"al to do the

a#era&in& !ro" $ch trend and hence prone to de#iant error(

The inter#ie% proce i $ed a one "ode o! "ethodolo&y( *$ch a "ethod i alo prone

to error o%in& to e1pertie o! inter#ie%er' credibility and interet o! the reponder' and

other $ch proble"(

The "ethodolo&y alo in#ol#e peronal t$die and readin& !ro" #ario$ o$rce' %hich

%ill th$ brin& ele"ent o! $bjecti#ity in the t$dy and re$lt can th$ be biaed to o"ede&ree depite bet e!!ort(

F$rther the !ield o! e-co""erce i yet not o e#ol#ed and i chan&in& on daily bai(

*t$dy loo2in& !or $re concl$ion %ill th$ ha#e it li"itation(

$arketplace model and in%entory model

The "ar2etplace "odel pr$n& into the #irt$al hori?on a an alternati#e epecially to

addre the do%nide o! the !$ll in#entory "odel(

&ew entrie in e-commerce market


19/35

*t$dy i cond$cted in India' %hich ha one o! the !atet pace o! chan&in& #al$e in

para"eter $ch a "obile penetration' "artphone $er' chan&in& la%' o"e a"o$nt

o! in!le1ibility %ith re&ard to !orei&n entry o! trade@a i the cae %ith A"a?on( Th$

India ha it inherent di!!ic$ltie %ith re&ard to t$dy on the $bject(

'ack of erification $eare

Once a c$to"er i&n $p in an e-co""erce portal' the portal i $na%are abo$t the

c$to"er e1cept the in!or"ation hehe entered( The credibility o! the c$to"er i

3$etionable( Thi hei&hten %hen the c$to"er i$e a Cah-on-/eli#ery @CO/ p$rchae beca$e the b$ine i $n$re %hether the c$to"er i &en$ine or not( Thee

ha#e re$lted in h$&e re#en$e loe !or "any e-co""erce player !

*rodct +etrn and +efnd

hen prod$ct are ret$rned beca$e c$to"er are $nati!ied %ith the prod$ct' it car

the b$ine %ith hea#y lo on hip"ent and rep$tation( Cot o! lo&itic ha#e al%ay

been an i$e !or e-co""erce player epecially !or thoe %ho deli#er !or !ree(

'ack of ,nte!ration


20/35

Order "ana&e"ent yte"' c$to"er $pport yte"' dipatch yte"' order trac2in&

yte"' etc are application that can trea"line the e1perience o! the c$to"er acro the

b$yin& jo$rney( B$t i! thee yte" are diparate it co$ld r$in c$to"er e1perience

Cu!"#$% Iu$ G"&' U''"!&$*

Bein& in an ind$try %here c$to"er can ta2e their b$ine ele%here in a blin2 o! an

eye' c$to"er er#ice &oe a lon& %ay( E-co""erce b$ine recei#e a lot o! inbo$nd

interaction %ith "ore than ;8 bein& co"plaint or concern( hen thee concern &o

$nnoticed' it co"pro"ie the tandard o! 3$ality o! yo$r b$ine' and tarnihe yo$r

i"a&e(

Cu!"#$% L"+,!+

E-co""erce ind$try i an ind$try %here the cot o! %itchin& i pretty ini&ni!icant( A

lot o! player ha#e lot c$to"er beca$e their ri#al ha#e a better 3$ality o! c$to"er

er#ice' or better dico$nt( )no%in& that


21/35

Mot B5B relationhip are the reponibility o! a ale tea"( O!ten' thi incl$de

coordination bet%een inide ale and o$tide ale or independent

repreentati#e( ebite content and e-commerce can be inte!rated %ith CRM

ol$tion' incl$din& *ale!orce(co"' to in!or" the ale tea" o! c$to"er interet and to

&i#e credit !or el!-er#ice p$rchae

Too many prodct with only li!ht %ariation

Thi h$rdle can be ol#ed %ith a rob$t ite earch !$nction( *arametric earch allo%

ite #iitor to earch !or an ite" baed on peci!ic para"eter or partic$lar attrib$te a

&ran$lar a ite" di"enion or "aterial co"poition( hen a B5B b$ine o%ner can

brin& #al$e to a co""odity ite"' $ch a a n$t or a bolt' they#e done their job and then

o"e(

Secrity/ *ri%acy

/i!!ic$lt to en$re ec$rity or pri#acy on online tranaction(

S"AS"$S"$(S A.# ?A("S AB%/" &4(%&R(& $. $.#$A


22/35

The !at de#elop"ent o! teleco""$nication technolo&y in the pat !e% decade i

chan&in& "any apect o! o$r li#e ho% %e earch !or in!or"ation' ho% %e tra#el and

not at leat ho% %e b$y prod$ct or er#ice( Altho$&h claic hop-baed retail i till

pre!erred' e-co""erce or electronic co""erce' na"ely the b$yin& and ellin& o!

prod$ct and er#ice e1cl$i#ely thro$&h electronic channel' i &ainin& &ro$nd( The

"ot %ell-2no%n !or" o! e-co""erce or electronic co""erce i online hoppin&' alo

2no%n a b$ine to con$"er e-co""erce @B5C' %here pri#ate c$to"er can order

#ario$ prod$ct %hich they then recei#e by co$rier or potal "ail( Another cate&ory o!

e-co""erce !oc$e on tranaction bet%een co"panie' $ch a "an$!act$rer and a

%holealer or %holealer and retailer and i called b$ine to b$ine e-co""erce

@B5B( The third cate&ory o! e-co""erce in#ol#e tranaction !ro" con$"er to

con$"er @C5C' a in the e1a"ple o! A"a?on or other i"ilar %ebite(

ith an e1pected 66 percent o! the &lobal "ar2et in 5>48 and o#er 6; percent in 5>4(= percent o! all retail ale in

India' b$t thi !i&$re i alo e1pected to &ro% in the near !$t$re' reachin& 4(7 percent in

5>449 a n$"ber o! 986 "illion people in the Aia 0aci!ic re&ion are e1pected to b$y

&ood and er#ice online' a !i&$re %hich tranlate into o#er 7< percent o! internet

$er in the Aia 0aci!ic re&ion p$rchain& prod$ct or er#ice online( *o"e o! the

"ot pop$lar prod$ct cate&orie a"on& online hopper in the re&ion incl$de airline

tic2et and reer#ation' baby $pplie' co"etic' clothin&' acceorie and hoe' a

%ell a co"p$ter hard%are and o!t%are( Accordin& to recent data' the n$"ber o! di&ital

b$yer in India alone i e1pected to reach 74 "illion by 5>49' repreentin& o"e 5;

percent o! the total n$"ber o! internet $er in the co$ntry( F$rther"ore' a &ro%in&

n$"ber o! people in the Aia 0aci!ic area are increain&ly $in& their "obile de#ice !or

online hoppin&( In India' o"e = percent o! the co$ntry pop$lation had "ade

a p$rchae #ia "obile phone %ithin the pat "onth' a o! the !o$rth 3$arter o! 5>47(

The "ot $cce!$l e-retailer in India i abon&(co"' a !ahion and Li!etyle Co"pany

peciali?ed in apparel' !oot%ear' !ahion acceorie' bea$ty prod$ct' ho"e acceorie

and other !ahion and li!etyle prod$ct( ith 59(59 "illion $ni3$e in October 5>47

http://www.statista.com/statistics/243710/share-of-global-b2c-e-commerce-sales-in-the-asia-pacific-region/http://www.statista.com/topics/2443/us-ecommerce/http://www.statista.com/topics/2443/us-ecommerce/http://www.statista.com/statistics/289770/india-retail-e-commerce-sales/http://www.statista.com/statistics/379167/e-commerce-share-of-retail-sales-in-india/http://www.statista.com/statistics/379167/e-commerce-share-of-retail-sales-in-india/http://www.statista.com/statistics/379167/e-commerce-share-of-retail-sales-in-india/http://www.statista.com/statistics/251625/number-of-digital-buyers-in-asia-pacific/http://www.statista.com/statistics/251625/number-of-digital-buyers-in-asia-pacific/http://www.statista.com/statistics/257494/digital-buyer-penetration-in-the-united-states/http://www.statista.com/statistics/257494/digital-buyer-penetration-in-the-united-states/http://www.statista.com/statistics/323620/apac-online-product-category-browse-purchase-intention-rates/http://www.statista.com/statistics/323620/apac-online-product-category-browse-purchase-intention-rates/http://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/http://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/http://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/http://www.statista.com/statistics/261664/digital-buyer-penetration-in-india/http://www.statista.com/statistics/261664/digital-buyer-penetration-in-india/http://www.statista.com/statistics/261664/digital-buyer-penetration-in-india/http://www.statista.com/statistics/255214/mobile-commerce-penetration-in-asia-pacific-countries/http://www.statista.com/statistics/255214/mobile-commerce-penetration-in-asia-pacific-countries/http://www.statista.com/statistics/255214/mobile-commerce-penetration-in-asia-pacific-countries/http://www.statista.com/statistics/257476/most-popular-online-retailers-in-india/http://www.statista.com/statistics/257476/most-popular-online-retailers-in-india/http://www.statista.com/statistics/243710/share-of-global-b2c-e-commerce-sales-in-the-asia-pacific-region/http://www.statista.com/topics/2443/us-ecommerce/http://www.statista.com/statistics/289770/india-retail-e-commerce-sales/http://www.statista.com/statistics/379167/e-commerce-share-of-retail-sales-in-india/http://www.statista.com/statistics/379167/e-commerce-share-of-retail-sales-in-india/http://www.statista.com/statistics/251625/number-of-digital-buyers-in-asia-pacific/http://www.statista.com/statistics/257494/digital-buyer-penetration-in-the-united-states/http://www.statista.com/statistics/257494/digital-buyer-penetration-in-the-united-states/http://www.statista.com/statistics/323620/apac-online-product-category-browse-purchase-intention-rates/http://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/http://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/http://www.statista.com/statistics/261664/digital-buyer-penetration-in-india/http://www.statista.com/statistics/261664/digital-buyer-penetration-in-india/http://www.statista.com/statistics/255214/mobile-commerce-penetration-in-asia-pacific-countries/http://www.statista.com/statistics/257476/most-popular-online-retailers-in-india/


23/35

alone' abon&(co" "ana&e to $rpa A"a?on' the %orld "ot $cce!$l e-retailer(

In the ne1t 48 year India %ill ee "ore people co"e online than any other co$ntry( Lat

year e-co""erce ale %ere abo$t K49 billion by 5>5>' accordin& to Mor&an *tanley' a

ban2' the online retail "ar2et co$ld be "ore than e#en ti"e lar&er( *$ch ale are

e1pected to &ro% !ater in India than in any other "ar2et( Thi ha attracted a !lood o!

in#et"ent in e-co""erce !ir"' the i"pact o! %hich "ay &o !ar beyond j$t diplacin&

o!!line retail(

India "all b$inee ha#e li"ited acce to loan "ot o! it con$"er do not ha#e

credit card' or !or that "atter credit( The e-co""erce co"panie are in#etin& in

lo&itic' helpin& "erchant borro% and &i#in& con$"er ne% tool to pay !or &ood(

A"it A&ar%al' %ho r$n A"a?on(in' hold o$t the hope that Je co$ld act$ally be a

catalyt to tran!or" India ho% India b$y' ho% India ell' and e#en tran!or" li#e(

The 0ewel in the crown

A"a?on %ant to "a2e India it econd-bi&&et "ar2et' a!ter A"erica( For the ti"e

bein&' tho$&h' %ith j$t 45 o! the "ar2et' it la& behind the ho"e-&ro%n $ccee'

Flip2art @78 and *napdeal @59( All three' a %ell a o"e "aller co"petitor' are

pendin& at a bliterin& rate( A &lobal "ar2et dip and *ilicon Palley $nicorn t$"ble'

the international !$ndin& that "a2e thi poible "ay dry $p( /o$bt abo$t the

$tainability o! the co"panie preent plan %ere $nderlined %hen' on Febr$ary 59th'

one o! Mor&an *tanley "$t$al !$nd "ar2ed do%n the #al$e o! it ta2e in Flip2art by

5;( I! the propect o! chan&in& India a billion deli#erie at a ti"e i a be&$ilin& one' it

i not !or the !aint-hearted(

India #iionarie 2eep their pirit $p by re"e"berin& the e1a"ple o! China( Chinee e-

co""erce &re% by nearly 9>> bet%een 5>4> and 5>47' "a2in& the co$ntry the bi&&et

e-co""erce "ar2et in the %orld today( It "ana&ed thi lar&ely thro$&h the &ro%th o!

indi&eno$ co"panie "i&hty A"a?on "erely nip at the heel o! ho"e-&ro%n &iant

Alibaba and /(co" eBay ha all b$t le!t the ta&e( And in the proce China top e-

co""erce !ir" ca"e to o!!er an atonihin& ran&e o! er#ice(

Alibaba' !o$nded by ac2 Ma in 4=== and no% #al$ed at K4


24/35

Alibaba i no% b$ildin& er#ice centre in re"ote area %here hopper can order' pic2

$p and ell &ood' a %ell a pay their bill( It i a !$rther tep in it atte"pt not "erely

to bene!it !ro" the &ro%th in Chinee con$"ption' b$t to hape and accelerate it( The

de&ree to %hich it ha $cceeded $&&et that the earlier an e-co""erce co"pany

arri#e in a co$ntry de#elop"ent' the %ider it role "i&ht be(

India i in "any %ay a to$&her "ar2et !or e-co""erce than China( It pop$lation i

poorer and it in!ratr$ct$re %ore( B$t it propect loo2 re"ar2able( Inco"e per peron'

%hich in 5>47 %a K4'8;>' co$ld be t%ice that by 5>58( T%o-third o! Indian are

yo$n&er than 68' and their phone &i#e a h$&e n$"ber o! the" acce to the internet( In

/ece"ber 5>47 "artphone acco$nted !or one in !i#e Indian "obile' accordin& to

Gold"an *ach( $t i1 "onth later' they acco$nted !or one in !o$r @ee chart 4(

Mor&an *tanley e1pect internet penetration to rie !ro" 65 in 5>48 to 8= in 5>5>(

By 5>6>' India i projected to be a one-billion-peron di&ital "ar2et(

The propect o! a econd "ar2et &ro%in& to a near-Chinee i?e attract thoe %ho "ade

a pac2et the !irt ti"e ro$nd( Bob #an /ij2' the chie! e1ec$ti#e o! Naper' a *o$th

A!rican !ir" that bac2ed /(co" and Tencent' China lar&et ocial-"edia co"pany'


25/35

ay he loo2 !or co$ntrie %ith bi& pop$lation' riin& "artphone $e and !e% retail

chain( India' %here "all' $per"ar2et and branded chain' or %hat analyt call

Jor&ani?ed retail' acco$nt !or j$t 4> or o o! the total "ar2et' !it the bill per!ectly(

The middlemen

Naper o%n a 4; ta2e in Flip2art other /(co" in#etor' incl$din& Ti&er GlobalMana&e"ent' in Ne% ,or2' and /*T Global' a R$ian !$nd' ha#e alo bac2ed the

co"pany( apan *o!tban2' a bi& in#etor in Alibaba' ha bac2ed *napdeal ince 5>46'

and Alibaba itel! !ollo%ed $it lat A$&$t( Mean%hile Alibaba Ant Financial o%n a

5> ta2e in India 0ayt"' %hich be&an a a "obile-%allet co"pany and no% co"pete

%ith *napdeal and Flip2art a an online "ar2etplace( The three !ir" ha#e a co"bined

#al$ation o! al"ot K58 billion(

In contrat to thoe in#etor tryin& to recapit$late their Chinee $cce' A"a?on i

ee2in& to "a2e $p !or it !ail$re( Red$ced lat year to the i&no"iny o! ha#in& to open a

hop on Alibaba T"all ite' e!! Be?o i deter"ined that thi ti"e' %ith "oree1perience and in a "ore open "ar2et' thin& %ill be di!!erent(

hen Flip2art %a !o$nded' in 5>>;' A"a?on %a ob#io$ly it "odel( The co"pany

be&an a a boo2eller the t%o en&ineer %ho tarted it' *achin Banal and Binny Banal

@not related' had %or2ed !or A"a?on( Mr( Be?o' tho$&h' i o! the opinion that i! anyone

i! &oin& to be the A"a?on o! India' it ho$ld be A"a?on( In 5>47' hortly a!ter Flip2art

anno$nced a K4 billion ro$nd o! !$ndin&' Mr( Be?o donned Indian clothe in Ban&alore'

hopped aboard a rainbo%-colo$red tr$c2 and handed Mr( A&ar%al a K5 billion che3$e( A

!ir" %hich earned o#er K4>> billion in 5>48 and ha hareholder content to ee "ore or

le nothin& by %ay o! pro!it can a!!ord $ch lar&ee(

Neither Flip2art' A"a?on' nor any o! the other bi& co"petitor are !ollo%in& the retail

trate&y that led to A"a?on $cce in the et( Indian re&$lation bar !orei&n-bac2ed

e-co""erce !ir" !ro" o%nin& in#entory' and o actin& a a trai&ht!or%ard retailer i

not an option( A a re$lt India top e-co""erce co"panie loo2 "$ch "ore li2e

Alibaba( Flip2art ha beco"e a "ar2etplace %here eller o!!er e#erythin& !ro" "obile

phone to %ahin& "achine to handba&( *napdeal' A"a?on and 0ayt" r$n

"ar2etplace too( The !ir" co"pete !e#erihly on price' o!!erin& dico$nt that cho"p

a%ay their o%n "ar&in( In the lon& ter"' they "$t di!!erentiate the"el#e by honin&

er#ice !or eller and hopper ali2e' and o!!erin& a better' broader ran&e o! prod$ct to

"ore Indian than %o$ld ha#e the" other%ie(

The !irt tep to that &oal i to boot the n$"ber o! eller on the co"pany plat!or"Uit

i the eller' a!ter all' %ho pay co""iion and hippin& !ee( *o co"panie o!!er a

ran&e o! er#ice to l$re b$inee to their ite( Flip2art pro&ra" ran&e !ro" teachin&

eller ho% to "ana&e pea2 ale d$rin& Diwali to ad#iin& !ahion brand on trend and


26/35

prod$ction( In Febr$ary A"a?on anno$nced a tra#ellin& t$dio-on-%heel' o!!erin&

trainin&' photo&raphy and other er#ice to help hop-o%ner co"e online(

B$t the "ot i"portant help they o!!er i in eain& acce to credit( *"all b$inee'

&i#en their carce !inancial tate"ent and li"ited credit hitory' ha#e lon& had tro$ble

obtainin& loan !ro" India ban2( They o!ten rely on e1peni#e loan !ro" nei&hbor or

!a"ily( The e-co""erce co"panie ha#e tron& incenti#e to "a2e the" better o!!erU

and beca$e they ha#e acce to online-ale data they are in a pri#ile&ed poition !ro"

%hich to help lender j$d&e credit ri2(

Ta2e *$"it A&ar%al @no relation to A"a?on Mr( A&ar%al' a yo$n& entreprene$r %ho

tarted an online hoe b$ine in 5>44( In hi %areho$e in Ne% /elhi %or2er pac2 and

can hip"ent a"on& to%er o! hoebo1e( The early day %ere $ncertain hi !a"ily

reaction %hen the !ir" tarted' he ay' %a Jhat the hell i thi &$y doin&V No% it i

eaier !or $ch entreprene$r to !ind the capital %ith %hich to &ro%( hen Mr( A&ar%al

lo& into hi eller acco$nt on A"a?on(in hi creen o!!er a col$"n o! hort-ter"

loan' their rate calc$lated $in& data !ro" hi tranaction( Other e-co""erce !ir"

ha#e i"ilar che"e( In an$ary *napdeal anno$nced that the *tate Ban2 o! India %o$ld

appro#e loan o! $p to K6;'>>> intantly i! it li2ed the loo2 o! the data that *napdeal

pro#ided on the borro%er(

Once a ite ha eller' the econd challen&e i to help con$"er b$y their %are( Anil

carrie a cl$n2y credit-card reader %ith hi" on hi ro$nd' b$t "ot people pay cah( The

e-co""erce ite %ant to chan&e that( 0ayt" let c$to"er add "oney to a di&ital %allet

that can then be $ed to hop online' top $p a "obile phone' lend "oney to a !riend' pay a

bill or $e a er#ice $ch a an .ber ta1i( It ha 45>" di&ital-%allet acco$nt' nearly i1

ti"e India n$"ber o! credit card( *napdeal bo$&ht it o%n "obile pay"ent co"pany

in April( A"a?on p$rchaed an online-pay"ent er#ice in Febr$ary(

fine balance

I! a con$"er doe b$y a prod$ct' the ne1t ta2 i deli#erin& it( /eli#ery itel! i nothin&

ne%( Indian ha#e lon& been able to ha#e a deli#ery boy !ro" the local kirana Uthe

corner hop that do"inate Indian retailUbrin& the" a tic2 o! b$tter( B$t bein& able to

deli#er on a lar&er cale i a challen&e( The co$ntry "ail er#ice' India 0ot' i ill-

e3$ipped to %ait %hile a hopper trie on a kurta and ponder ret$rnin& it( *o ne%co"er

are b$ildin& net%or2( B$t India tra!!ic i hellih and it addree #a&$e(

A tart$p na"ed /elhi#ery ha hired "ore than 48'>>> ta!!' !ro" de#eloper to

e1ec$ti#e poached !ro" Faceboo2 and poh con$ltancie( It head3$arter in G$r&aon

are o pac2ed that en&ineer pill onto an o$tdoor porch' tappin& their 2eyboard

!$rio$ly( /elhi#ery' %hich %or2 %ith a n$"ber o! e-co""erce !ir"' i $in& "achine

learnin& to $bdi#ide India potcode' the better to "ap idioyncratic decription(

Jell 2no% the ho$e %ith the yello% door ne1t to the te"ple' ay *andeep Baraia'


27/35

the "ana&in& director( The co"pany "o#e &ood to ;>> or o "all ditrib$tion centre

o#erni&ht to a#oid con&eted "ain road d$rin& b$ine ho$r( Tho$and o! deli#ery

boy then dah to and !ro" the ditrib$tion centre thro$&ho$t the day' bearin& "ore than

5> 2ilo on their bi2e(

E-co""erce co"panie are de#iin& their o%n ol$tion' too( *o"e in#et"ent' $ch a%areho$e' are trai&ht!or%ard( Other are le o( Flip2art lat year be&an $in&

M$"bai !a"o$ net%or2 o! dabbawallas' or l$nch-deli#ery "en' to drop o!! pac2a&e

%hen they pic2ed $p c$to"er l$nch tin( A"a?on ha a pilot 0ro&ra""e that let

c$to"er order &rocerie online and ha#e the" deli#ered !ro" the nearet kirana(

To&ether' e-co""erce !ir" ay' thee e1peri"ent co$ld create a ne% tr$ly national

"ar2etplace( Neel2anth Mihra o! Credit *$ie' a ban2' point o$t that road

contr$ction' electri!ication and "obile phone ha#e to2ed bi& increae in r$ral %a&e'

and th$ de"and !or &ood @ee chart 5( Flip2art ay that abo$t hal! it ale co"e !ro"

o$tide India bi& citie( *napdeal clai" "ore than 9>( It recently la$nched e#en

re&ional-lan&$a&e #erion o! it %ebite(

A they b$ild o$t their "ar2et the !ir" tr$"pet their aitance to "all b$inee(

J*o"e o! the bi& eller on A"a?on only had a hop in a corner o! Ban&alore they %ere

happy ellin& to !i#e 2ilo"eter aro$nd each hop' declare A"a?on Mr( A&ar%al(

JNo% they are hippin& order to )ah"ir and eatern India( A"a?on i helpin& "ore

than 9'>>> Indian b$inee e1port' a %ell( *napdeal )$nal Bahl i e3$ally e1pani#e

JO$r a"bition i to be a &reat ocial' econo"ic and &eo&raphic e3$ali?er !or the "all

b$inee o! India a they cale $p(

All thee bold plan are clo$ded by t%o obtinate !act( Firt' pendin& on dico$nt'

"ar2etin& ca"pai&n and ne% hire "ean none o! the co"panie ha yet "ade "oney(

Piit any !ir" lobby and yo$ %ill "eet herd o! job applicant( /eli#ery boy li2e Anil

are in hot de"andUa top per!or"er in hi branch' he earn abo$t 47'>>> r$pee @K5>>

each "onth(


28/35

A"a?on i' predictably' o$tpendin& it co"petitor( Lat year it ale %ere t%o-third

the i?e o! it loe( Mr( A&ar%al i not bothered by a lac2 o! pro!it( JThe priority i

&ro%th' he e1plain( An2it Na&ori' Flip2art chie! b$ine o!!icer' ay that the "ot

i"portant "etric !or hi co"pany are not "ar&in b$t the n$"ber o! ne% c$to"er'

ho% o!ten they hop' ho% "$ch they b$y and the peed o! deli#ery( JI! yo$ ol#e !or thee !o$r thin&' he contend' Jthen the top line and botto" line %ill !all in place(

billion deli%erie more

The econd proble" i re&$latory( Forbiddin& !orei&n-bac2ed !ir" !ro" o%nin&

in#entory ha cot( Co"panie ha#e li"ited control o#er the 3$ality o! prod$ct on their

ite' point o$t Mor&an *tanley 0ara& G$pta' and they can do little to trea"line the

co$ntry !ra&"ented $pply chain( Flip2art ha beco"e a tan&le o! interlin2ed entitie'

incl$din& a holdin& co"pany in *in&apore' in an atte"pt to obey India r$le %hile

"a1i"i?in& pro!it(India &o#ern"ent "ay nonethele co"e $nder protectionit pre$re( Traditional

retailer alle&e that the online "ar2etplace !lo$t r$le a&aint !orei&n direct in#et"ent(

Faceboo2 recently c$ttled plan to o!!er Indian !ree internet er#ice' incl$din& it

o%n' par2ed a !$rore o#er the ri2 o! Jdi&ital coloniali"(


29/35

O!!line retailer are %atchin& all thi intently( Kiranas are relati#ely protected' than2 to

"ea&re ta1 bill and li"ited carryin& cot @they tore little( Bi& hop and "all are

another tory @ee chart 6( Jhat i re"ar2able !or "e i that in a #ery hort ti"e' e-

co""erce ha beco"e hal! o! %hat the or&ani?ed "ar2et i' ay Abhee2 *in&hi o! the

Boton Con$ltin& Gro$p( JT%o year do%n the line' three year do%n the line' the e-

co""erce "ar2et co$ld be lar&er(

Bi& !orei&n retailerU$ch a I2ea' a *%edih !$rnit$re co"pany' %hich a!ter year o!

2er!$!!le "ay !inally be openin& an Indian toreUcannot ell directly online( Matter are

i"pler !or Indian retailer' b$t their co$re re"ain clo$dy( Reliance Ind$trie' a

con&lo"erate %ith o#er 4" 3$are "etre o! hop !loor' i plannin& it o%n e-co""erce

#ent$re( F$t$re Gro$p' %hich pioneered hyper"ar2et in the co$ntry' i o$t!ittin& "all

hop-o%ner and entreprene$r %ith di&ital catalo&$e o that con$"er can order

F$t$re Gro$p prod$ct in place %here there %ill ne#er be a tore( +o%e#er the !ir" hacaled bac2 o"e o! it "ore a"bitio$ plan !or e-co""erce( JThe "ore ale yo$ do'

the "ore "oney yo$ loe' "$e )ihore Biyani' F$t$re Gro$p !o$nder( J,o$ need to

ha#e contin$o$ !$ndin& and o"eone to bac2 yo$(

For the ti"e bein&' the bi& co"panie in the ector are ha#in& thoe need "et( J,o$

ha#e at leat three' potentially !o$r lar&e player %ith deep eno$&h poc2et' ay Mr(

*in&hi( JIt &oin& to play o$t at a #ery hi&h cot( Co"panie li2e Alibaba and A"a?on


30/35

ee that cot a %orth payin& in part beca$e' j$t a they applied %hat they learned in

China to India' o they %ill $e their Indian e1perience in the ne1t "ar2et they "o#e

into( Alibaba' not content to bac2 0ayt" and *napdeal' i alo co$rtin& Indian b$inee

directly( In /ece"ber it aid it %o$ld help Indian !ir" %ith !inancin& and lo&itic o

they "i&ht $e Alibaba plat!or" to e1port to China and beyond( E#ent$ally' Mr( Ma

li2e to ay' any con$"er ho$ld be able to b$y !ro" any eller' any%here in the %orld(

The "ore o! thoe p$rchae &o thro$&h one o! hi !ir"' the better(

And e#ery%here thee &iant &o' ho"e-&ro%n entreprene$r %ill be hopin& that their

local ac$"en %ill &i#e the" an ed&e and loo2in& !or o#erea in#etor to bac2 the"(

Many o! the" %ill !ail India doe not yet o!!er an e1a"ple o! ho% to "a2e a pro!it' and

it "ay be a lon& ti"e be!ore it doe( B$t a lon& a o"e o! thee e!!ort $r#i#e' they

%ill er#e to peed pro&re' and inno#ation' in de#elopin& "ar2et( A A"a?on Mr(

A&ar%al ay' JI! "illion o! "all' "edi$" enterprie o$t there' "an$!act$rer and

retailer' can(((ell their prod$ct any%here in the %orldUthat tran!or"ational(


31/35

R&S/1" %? "H& S"/#Y

4( The !$t$re o! "obile hoppin& and plan !or "obile net%or2 &ro%th(

5( +o% !at $er o! "obile net%or2 e1pect hoppin& %ebite to load(

6( The projected &ro%th o! "obile de#ice and it i"pact on e-co""erce(

7( The brea2do%n in "obile ite re#en$e !ro" "obile #( de2top hopper(

E-co""erce bene!it &lobali?ation thro$&h t%o channel


32/35

• 0hyical location' "$t$al procee or other e1peditin& !$nction are $bcribed

by e-b$ine practice(

• Fir" !acin& !orei&n co"petition are $nder pre$re to adopt technolo&ie $ch

a e-co""erce that enable to protect or e1pand "ar2et hare and operate "ore

e!!ecti#ely(

• Fir" doin& b$ine o$tide their o%n co$ntry "ay be "ore "oti#ated

to their o%n tranaction cot by $in& in!or"ation technolo&y(

• .in& the internet !or tranaction and coordination a#e ti"e and "oney on

deli#ery o! &ood by $in& rich in!or"ation !lo% to i"pli!y and trea"line the

!lo% o! phyical &ood in the $pply chain(

(%.(1/S$%.


33/35

Thi reearch ho% the relationhip bet%een &lobali?ation and e-Co""erce( The

!indin& i"ply that e-Co""erce %ill rein!orce e1itin& international co"petiti#e

ad#anta&e rather than le#elin& the playin& !ield and enablin& local !ir" to co"pete %ith

&lobal !ir" in international "ar2et( /oin& b$ine acro national border in#ol#e

"ore than i"ply ettin& $p a %eb ite and o!!erin& prod$ct or er#ice to the %orld( The

#irt$al %orld o! co""erce "$t be $pported %ith phyical' !inancial and in!or"ation

procee that &lobal !ir" are "ore li2ely to already ha#e in place' and %hich local !ir"

cannot d$plicate eaily or cheaply( In !act local !ir" "ay ha#e #al$able reo$rce that

p$t the" at a co"petiti#e ad#anta&e in their ho"e "ar2et( Thee incl$de local

2no%led&e' tron& brand na"e' ditrib$tion channel and er#ice in!ratr$ct$re( Theereo$rce can be an ad#anta&e in B5C e-Co""erce and are not eay !or &lobal !ir" to

replicate in each national "ar2et aro$nd the %orld( Thi i"plie that le &lobal !ir" can

loo2 !or opport$nitie in local "ar2et rather than tryin& to $e the Internet to reach !ar-

!l$n& international "ar2et( I! thee !ir" do %ant to e1pand into &lobal "ar2et' they are

"ore li2ely to do o by adoptin& B5B eco""erce to brea2 into the &lobal prod$ction

net%or2 !or "$ltinational Corporation than by tryin& to ell directly to !orei&n

con$"er(

S(%P& %? S"/#Y


34/35

(fter man& months of rumors and speculation, the $orld)s largest online retailer (ma*on entered

India on +ednesda& $ith a mar#etplace model that sidesteps Indian regulations preenting

foreign retailers from selling online merchandise in India. (ma*on.in, the Indian edition of the

retailer, $ill not o$n the merchandise but store it and sell it on behalf of those $ho sho$case their

products on the $ebsite. (mit (gar$al, ice-president and countr& manager, told in an

interie$ that (ma*on)s model is full& compliant $ith Indian la$s.

Amazon.com is a company of online stores. Amazon.com increasing their stores day by day so

for the opening of new stores Amazon.com have the need of new platform where they have

suffer less competition. For the future scope India is that platform where Amazon.com can

open there stores. So looking for the future scope in India Amazon.com open there online store

in India as Junglee.com.

R&?&R&.(&S

http://economictimes.indiatimes.com/topic/Amazonhttp://economictimes.indiatimes.com/topic/Amazonhttp://economictimes.indiatimes.com/topic/Amazonhttp://economictimes.indiatimes.com/topic/Amazon


35/35

Fran2el e!!rey A( @5>>>(Globali?ation o! the Econo"y' NBER or2in& paper No( ;47' Globali?ation o! E-co""erce'

http%%%("eal(p$(ed$cdtcdtebrcp$bpreentation2are"er(pd! (

http%%%(#ccircle(co"blo&5>46>755in#entory-#-"ar2etplace-"odel-debate(

http%%%(2p"&(co"ineni$eandini&htarticlep$blicationpa&ei"pact-e-

co""erce-indian-"e(ap1(

The econo"it ti"e http%%%(econo"it(co"ne%brie!in&549=6=54-ne1t-48-year-

india-%ill-ee-"ore-people-co"e-online-any-other-co$ntry-e-co""erce(

httpcontent(a2a"ai(co"0G5;99-0er!or"ance-Matter-=-)ey-Con$"er-

Ini&ht(ht"lV&clidQCOy,2pa?#CFZeOaAode

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Effect of globalization in E-commerce final report .doc