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For the complete report, get in touch with us at : [email protected] A steady rise in the disposable income coupled with tremendous usage of internet in India, is primarily inflicting growth in the Indian e-Commerce market. Factors such as the busy lifestyle of the working class and a tendency to save time are further fueling growth in the market. Currently, the market is estimated to be valued at INR 0.5 tr and is expected to grow at a CAGR of 47% to reach INR 2.2 tr by 2015. The report commences with an Introduction section which comprises of an illustration of the e-Commerce work model wherein it depicts the work flow of all the stakeholders involved in the market space. Another detailed illustration about the transaction flow model of an online commerce model is also included in the report so as to provide a better picture of the overall transaction system. Market Overview section of the report talks about the overall market’s size and growth prospects in India, market segments and their respective shares and also highlights the primary aspects influencing growth in the market. Moving along, e-Commerce Market Segments section in the report elaborates on the basic five market segments, wherein it lists their respective market shares, growth drivers and their sub-segments, thereby providing very detailed information about the available segments of e-Commerce. e-Commerce Ecosystem section is graphical representation of the various layers which constitute the online commerce system. The layers identified in the system include ‘Internet Infrastructure’, ‘Application Infrastructure’, ‘Intermediaries’ and ‘e-Commerce Companies’. Here, the report explains each and every individual layer in detail along with relevant individual examples so as to provide the reader with a better understanding. Types of e-Commerce section in the report comprises of a list of the most popular e-Commerce business models. Description about each and every individual model along with a real life example can be found in this section. Technology used in e-Commerce portion of the report mainly deals with the technical specifications, important features and website design and development stages. It offers a deep and value added information regarding the building and hosting of a successful e-Commerce website. An analysis of the Drivers and Challenges explains the major factors pushing the market including increased spending power, extensive usage of plastic money, increasing internet penetration and PC usage, ease of transaction and Government initiative, whereas the threats identified for the market include secure payment concerns and lack of confidence. Demand and Supply Perspective section in the report comprises of an in-depth analysis of both the vendor perception and consumer objectives which in turn enlightens a reader on the various important points regarding the supply and demand side of e-Commerce system. It also lists the vital requiremen
Citation preview
e-Commerce Market – India
November 2011
2
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
Executive Summary
Market
�e-Commerce market in India is witnessing an exponential growth rate over the years and with the emergence of better marketing techniques, this market is expected to grow by leaps and bounds
�The e-Commerce market in 20-- was valued at INR a tr and is expected to grow at a CAGR of x% to reach INR b tr by 20--
�The market space can be segregated into multiple segments such as online retail, online travel, online financial services, online digital and online other services
�Having a combined market share of more than y%, online travel and retail players mainly dominate the market space
Drivers &
Challenges
Drivers:
� Increased Spending Power
� Extensive Usage of Plastic Money
� Increasing Internet Penetration and PC Users
� Ease of Transaction
� Government Initiative
Challenges:
�Secure Payment Concern
�Lack of Confidence
Trends
�Purchase Decisions are Brand Oriented
�Social Media Involvement
� Increasing BPO Tie Ups
Competition
Player 8Player 7Player 6Player 5
Major e-Commerce Vendors
Player 1 Player 2 Player 3 Player 4
3E-COMMERCE MARKET INDIA 2011.PPT
•Introduction
•Market Overview
•e-Commerce Market Segments
•e-Commerce Ecosystem
•Types of e-Commerce
•Technology used in e-Commerce
•Drivers and Challenges
•Demand and Supply Perspective
•Trends
•PE Investments
•Major Players
•Strategic Recommendation
4
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
An example of e-Commerce system work model
e-Commerce
Space
Regional Logistics Support Regional Warehouse Logistics Support
Warehouse
e-Commerce
Vendor
Financial Service Provider
Consumers
Internet Enabled Devices
5
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
An illustration of the transaction flow within an
e-Commerce system
Consumer Bank Account Vendor Bank Account
Third Party
Vendor
Authorization
Consumer VendorProduct
Transaction
Notification Notification
Transaction via credit/debit cards
Product Delivery Logistics Support
6
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
Presence of extremely affordable and desirable
e-Commerce options is driving the market in India
• Indian e-Commerce market is currently undergoing through a phase where it is experiencing a strong growth rate� Factors such as increased disposable income coupled with a surge in internet penetration is primarily driving growth in the market
• Market size of e-Commerce is estimated to grow at a dynamic growth rate of x% to reach INR a tr in 20-- from INR b tr in 20--
• The market can be broadly classified into several segments which include ‘Online Travel’, ‘Financial Services’, ‘Digital Downloads’, ‘e-Retailing’ and ‘ Other Services ‘
• Players in the market are following several strategic moves to lure and attract customers, some of which are enlisted as below:� Easy availability of EMI schemes and lucrative offers on e-Commerce, provided by players in the market happen to be a major source of
attraction for customers
� Often customers are offered a scheme of earning loyalty points which can be redeemed to claim discounts on commodities or services availed online
• Increasing tendency to save time and energy, especially amongst the working population will further intensify the e-Commerce market by a large extent
e-Commerce Market – India Overview
Source: x
INR tr
c
b
a
0
xyz
2015e
f
2014e
e
2013e
d
2012e
c
2011e
b
2010
a
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
e-Commerce Market Growth - India e-Commerce Market Share (2010)
7
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
e-Commerce Segments (x/x)
• Online travel segment enjoys a lions share of a% of the overall e-Commerce market in India and is flourishing at an unprecedented growth rate� Market size of Online travel registered a growth rate of b% in 20-- to reach a whooping market size of INR abc bn as compared to INR
def bn in 20--
• Aspects such as the proliferation of internet, increased medical tourism, higher disposable income, availability of low cost carriers mainly catalyze the market
• Major trends identified are listed below:� Railway booking is the most popular amongst all categories
� Religious and pilgrimage traveling is growing exponentially
� Frequent use of search tools for gathering ticket availability and price related information
• Major three sub segments of the online travel industry has been illustrated below:
e-Commerce – Segment 1
Source: x
xyz
Subsegment 1 Subsegment 2 Subsegment 3
xxx yyy zzz
8
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
An example of e-Commerce ecosystem
Source: x
Internet
Infrastructure
Application
InfrastructureIntermediaries
e-Commerce
Companies
aaa bbb ccc ddd
eee fff ggg hhh
www xxx yyy zzz
Description
Company
Type
Examples of
Companies
Ecosystem
Layers
9
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
e-Commerce in India has diversified immensely wherein
various methods of transaction has evolved
Source: x
•Currently, there are several types of e-Commerce methods prevailing which has witnessed tremendous acceptance amongst customers and sellers
•A list of e-Commerce types and their relevant vendors are mentioned below:
E-Commerce
B2B B2EB2C
C2B C2C
• xxx • xxx
• xxx• xxx• xxx
10
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
e-Commerce website development is carried out in phases
so as to ensure proper and efficient functioning
Developing an e-Commerce website is a step by step approach, consisting of various phases, so as to
ensure proper and efficient transaction over the internet
e-Commerce – Website Development Phases
Source: x
Research•Aaa•Sss•Ttt
Planning
Design
Development
Website
Launch
• Ddd• Eee• Zzz
• Mmm
• Nnn
• Ooo
• Bbb• Ccc• Yyy
• Ggg• Hhh• Lll
11E-COMMERCE MARKET INDIA 2011.PPT
Drivers & Challenges – Summary
Government Initiative
Drivers
Increased Spending Power
Extensive Usage of Plastic Money
Increasing Internet Penetration and PC
Users
Ease of Transaction
Challenges
Secure Payment Concern
Lack of Confidence
12
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
A comparison between the supply and demand side of e-
Commerce system
e-Commerce
Space
e-Commerce Vendors
(Supply Side) e-Commerce Users
(Demand Side)
Perception
• Generate higher revenues
• Utilize existing resources
• Offer enhanced customer satisfaction
• Maintain healthy brand image
• Provide full fledged virtual store
facilities to consumers
Requirements
• xxx
Consumer Objectives
• Round the clock availability of products
/ services
• Hassle free product / services
comparison
• Reduced time requirement
• Nullification of Fuel and transportation
expenses
• Benefits from loyalty programs offered
by vendors
Requirements
• yyy
Source: x
13
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
Online purchase decisions are mostly brand oriented and is
mainly influenced according to the area of living
Source: x
• Indian e-Commerce market is witnessing some phenomenal trends, which reflects the shopping pattern of consumers
• These trends can listed as:• States including Maharashtra, Delhi, Tamil Nadu, Karnataka
and Andhra Pradesh happen to be most acquainted with e-Commerce
• Metros, tier II and III cities and rural areas accounts for x%, y% and z% of the overall market
• Purchase patterns are purely brand driven• Jewellery & Accessory segment witnessed a continual
increase in the number of women shoppers• Majority of products purchased belonged to the electronic
goods while lifestyle products accounted for a%
Top 10 Cities involved in e-Commerce
Rank Name Rank Name
1 City 1 6 City 6
2 City 2 7 City 7
3 City 3 8 City 8
4 City 4 9 City 9
5 City 5 10 City 10
AAA & BBB – Products
AAA BBB
Cell Phones Blu -ray DVDsSolitaire
Pendants Lamp work
Stamps Men’s shoes Wrist WatchesCrystal Items
Watches NetbooksCommonwealth
Stamps PC Games
Natural Diamonds Digital Cameras Medical Items DVDs
SunglassesLaptop
BatteriesSarees & Apparels
Mineral Specimens
Brand Preferences – Across Categories
a b c d
e f g h
hH happens to be the only Indian
brand to find substantial popularity
in e-Commerce market
14
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
PE investments in the e-Commerce market is witnessing a
major growth over the past years
Source: x
• Owing to the lucrative aspects in the e-Commerce market in India, it is attracting major domestic and international PE funds� The market received a total of xxx investments in FY 11 as
compared to yyy in FY 10
• PE investments made in the recent years has facilitated modernization and betterment of services by a large extent
• Primarily, only the online retail players benefited from the investments
INR bn
c
b
a
0
xyz
20-- e
c
20--
a
PE Investments – Online Ventures
Recent investments in the Indian e-Commerce market (2009 -2010)
Investor Amount (INR bn) No. of Deals Some Key Targeted Companies
Investor 1 xxx y Abc, def, ghi
Investor 2 xxx y Ijk, klm, npo
Investor 3 xxx y Qrs, tuv, wxy
Investor 4 xxx y Abc, def
Investor 5 xxx y Ghi, jkl
Investor 6 xxx y Abc, def
Overview
15
SAMPLE
E-COMMERCE MARKET INDIA 2011.PPT
Major e-Commerce Players (1/8)
Online Retail Players
Company Name Company Snapshot Business Description
Player 1 Headquarter: x • Possess the license for online portal abcxyz
� Offers foot wears, apparel, bags and accessories, jewellery, sunglasses, winter wears and sports apparels
• Caters to the need of individuals as well as retailers
� Currently, serves to about 3000 retailers across India
• In July, the company has received a fund worth INR xyz mn, from abc and def in its second round of funding
� The company had earlier announced in Dec 2010, to have received an investment of INR asd mn, from xxx
Parent Company: x
Industry Classification: x
Website: x
Phone: x
Key Person: x
Player 2 Headquarter: x • Primarily operates as an online e-commerce portal wherein it offers lucrative deals for individuals, specific to an individual’s location of interest
• Its areas of operation comprise of Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune
• Till Jun 2010, the company was known as abc
• Currently, the company is anticipated to be valued at INR xxx mn and is expected to receive investments from international investors
� More than a% of the share in the company is withheld by the European firm ABC, while the remaining shares are segregated amongst xyz, yyy and zzz
Parent Company: x
Industry Classification: x
Website: x
Phone: x
Key Person: x
Source: x
16E-COMMERCE MARKET INDIA 2011.PPT
Strategic Recommendations
AAA• aaa
BBB • bbb
xyz
CCC • ccc
SAMPLE
17
Thank you for the attention
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E-COMMERCE MARKET INDIA 2011.PPT