This presentation contains various aspects as well as the emergence of e-commerce. It will give you a brief about the current scenarios and future trends of e-commerce.
2. CONTENTS
Emergence of E-Commerce Industry in India
Key drivers of the E-Commerce Industry
Scope of the E-Commerce Industry
Challenges of E-Commerce Industry
Growth of E-Commerce Industry
Major Competitors
4 P’s of E-Commerce
Porter 5 Forces Model
Present Scenario/ Current Trends
Factors affecting future of E-Commerce in India
Roadmap
Future of E-Commerce
Conclusion 2
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3. EMERGENCE OF E-COMMERCE INDUSTRY IN INDIA
Shopping is one of the most popular activity on the web
E- commerce evolved in the year 1991
Internet usage & cell phones have changed the way we communicate
E-commerce is an innovative concept
35% is the CAGR of e-commerce industry
Expected CAGR is 10%
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4. KEY DRIVERS OF THE E-COMMERCE INDUSTRY
Large percentage of Internet subscribers
Explosive amount of smart phone users
Rising standards of living
Time and mobility
Availability of much wider product range
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5. SCOPE OF THE E- COMMERCE INDUSTRY
Changing the game
Delivering experiences
Growing the customer base
Growing opportunities
50-55% revenue generated from Tier 1& 2 cities
Availability of innovative products
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6. CHALLENGES OF E-COMMERCE INDUSTRY
E- infrastructural issues
Branding & marketing
Logistics and supply chain management
Declining margins
Tax related issues & declining margins
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7. GROWTH OF E-COMMERCE INDUSTRY
Indian commerce has a total worth of Rs.171563 crore and is
expected to hit Rs 2,11,005 crore by the end of 2020
E-commerce industry has a worth of Rs.125732 by volume
Online retail has grown by 61% since December 2014 to 2016 march
0
50000
100000
150000
200000
2012 2013 2014 2015 2016
Amount(incrores)
Years
B2B C2C
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8. MAJOR COMPETITORS
FLIPKART
Flipkart is an Indian E-commerce
company
Founder- Sachin Bansal and Binny
Bansal
Market share is 36% by volume
Supplier preference is low
Customer preference is high
Niche Product- none
AMAZON
Amazon is an American E-commerce
giant
Founder-Jeff Bezos
Market share is 16% by volume
Supplier preference is high
Customer preference is low
Niche product- Amazon Kindle
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9. FLIPKART
GMV rate is high
Time spend at per visit by a
customer is 10 mins
Flipkart’s primary focus is quality
Latest Acquisitions- Jabong ,
Myntra
AMAZON
GMV rate is low
Time spent at per visit by a
customer is 8 mins
Amazon’s primary focus is
customer focused information
services
Latest Acquisitions- Ivona
software lmt.
FLIPKART VS AMAZON
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10. 4 P’S OF E-COMMERCE
4 P’s of
E-
commerce
Product
Price
Place
Promotion
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11. PRODUCT
A product is the item offered for sale. A product can be a service or an
item. It can be physical or in virtual or cyber form.
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12. PRICE
Base of fixing the price
• Cost plus pricing
• Target return pricing
• Value based pricing
• Competitive pricing
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16. PORTER’S 5 FORCES MODEL
1. Threats of New Entrants
Low barriers to entry
Access to Distribution Channels
Low Capital Investments
2. Bargaining Power of Buyers
Buyers Price Sensitivity
Buyer Prefers Inexpensive and better products
Product Differentiation
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17. 3. Competitive Rivalry
Number of Competitors
Brand equity
Level of advertising expenditure
4.Bargaining Power of Suppliers
Different Suppliers Offering Identical products
Multiple Selling Platforms provides high bargaining power.
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18. 5. Threats Of Substitutes
Buyer propensity to substitute
Relative price performance of substitutes
Buyer Switching cost
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20. Flipkart acquired Letsbuy for $25
Million
Ibibo acquired RedBus for Rs.
650 Crores
Flipkart acquired Myntra for $370
Million
Ola acquired Taxi for Sure for
$200 Million
Snapdeal acquired Freecharge
for $400 Million
Myntra acquired Jabong for $70
Million
NOTABLE ACQUISITIONS
Feb 2012
June 2013
May 2014
March 2015
April 2015
July 2016
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21. TRENDS
Time for stronger Mergers and Acquisitions
Living on Valuations
Vertical specific E-tailers on the rise
Retailers are going online
The rural foray
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22. Men in India shop 3 times more than women
Cash on Delivery remains the most preferred online payment
method
60% of online purchases happen during business hours (9am
– 5pm)
The Smartphone Saga
TRENDS (CONTD.)
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23. FACTORS AFFECTING FUTURE OF E-COMMERCE IN INDIA
Indians are getting richer
We are consumers and not producers
Slow growth of offline retail infrastructure
Smartphone and Internet penetration
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24. ROADMAP
Internet penetration
Logistics
Vehicle Tracking
Significance of Tier II and tier III
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25. INTERNET IN 2020
Number of users
Rural areas
Local language
Online shoppers
Transactions
Travel transactions
LOGISTICS
‘Snapdeal Instant’
Amazon fulfilment centres
Flipkart pickup centres
Paytm’s 2 hour delivery
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26. VEHICLE TRACKING
o Paytm’s ‘Loginext’
Flipkart’s ‘blackbuck’
TIER II AND TIER III
3G and 4G smartphones
North East region
‘MapMyIndia’
NGO involvement
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27. FUTURE OF ECOMMERCE
Social Media
Drone Delivery
App only approach
Google’s ‘Buy Now’ button
Artificial Intelligence
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