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Presented By:
Sourya Sangan – 401
Priya Singh - 420
Shruti Singh – 412
Sonali Bhalla – 402
Shivam Chutani – 383
Shailesh Kumar - 380
10/16/2016
1
E-CommerceGroup-7
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
E-CommerceGroup-710/16/2016
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%
3
E-CommerceGroup-710/16/2016
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
4
E-CommerceGroup-710/16/2016
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
5
E-CommerceGroup-710/16/2016
CHALLENGES OF E-COMMERCE INDUSTRY
 E- infrastructural issues
 Branding & marketing
 Logistics and supply chain management
 Declining margins
 Tax related issues & declining margins
6
E-CommerceGroup-710/16/2016
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
7
E-CommerceGroup-710/16/2016
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
8
E-CommerceGroup-710/16/2016
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
9
E-CommerceGroup-710/16/2016
4 P’S OF E-COMMERCE
4 P’s of
E-
commerce
Product
Price
Place
Promotion
10
E-CommerceGroup-710/16/2016
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.
11
E-CommerceGroup-710/16/2016
PRICE
Base of fixing the price
• Cost plus pricing
• Target return pricing
• Value based pricing
• Competitive pricing
12
E-CommerceGroup-710/16/2016
PLACE
• Distribution channel
• Indian postal service
• E- carter
13
E-CommerceGroup-710/16/2016
PROMOTION
• Sales promotion
• Outdoor hoardings
• Cut-outs
• Digital marketing
14
E-CommerceGroup-710/16/2016
10/16/2016
15
E-CommerceGroup-7
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
10/16/2016
16
E-CommerceGroup-7
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.
10/16/2016
17
E-CommerceGroup-7
5. Threats Of Substitutes
 Buyer propensity to substitute
 Relative price performance of substitutes
 Buyer Switching cost
10/16/2016
18
E-CommerceGroup-7
PRESENT SCENARIO/ CURRENT TRENDS
19
E-CommerceGroup-710/16/2016
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
10/16/2016
20
E-CommerceGroup-7
TRENDS
 Time for stronger Mergers and Acquisitions
 Living on Valuations
 Vertical specific E-tailers on the rise
 Retailers are going online
 The rural foray
21
E-CommerceGroup-710/16/2016
 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.)
22
E-CommerceGroup-710/16/2016
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
23
E-CommerceGroup-710/16/2016
ROADMAP
 Internet penetration
 Logistics
 Vehicle Tracking
 Significance of Tier II and tier III
24
E-CommerceGroup-710/16/2016
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
25
E-CommerceGroup-710/16/2016
VEHICLE TRACKING
o Paytm’s ‘Loginext’
 Flipkart’s ‘blackbuck’
TIER II AND TIER III
 3G and 4G smartphones
 North East region
 ‘MapMyIndia’
 NGO involvement
26
E-CommerceGroup-710/16/2016
FUTURE OF ECOMMERCE
 Social Media
 Drone Delivery
 App only approach
 Google’s ‘Buy Now’ button
 Artificial Intelligence
27
E-CommerceGroup-710/16/2016
10/16/2016
28
E-CommerceGroup-7
THANK YOU
THANK YOU

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Emergence and Current scenerio of e-commerce

  • 1. Presented By: Sourya Sangan – 401 Priya Singh - 420 Shruti Singh – 412 Sonali Bhalla – 402 Shivam Chutani – 383 Shailesh Kumar - 380 10/16/2016 1 E-CommerceGroup-7
  • 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 E-CommerceGroup-710/16/2016
  • 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% 3 E-CommerceGroup-710/16/2016
  • 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 4 E-CommerceGroup-710/16/2016
  • 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 5 E-CommerceGroup-710/16/2016
  • 6. CHALLENGES OF E-COMMERCE INDUSTRY  E- infrastructural issues  Branding & marketing  Logistics and supply chain management  Declining margins  Tax related issues & declining margins 6 E-CommerceGroup-710/16/2016
  • 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 7 E-CommerceGroup-710/16/2016
  • 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 8 E-CommerceGroup-710/16/2016
  • 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 9 E-CommerceGroup-710/16/2016
  • 10. 4 P’S OF E-COMMERCE 4 P’s of E- commerce Product Price Place Promotion 10 E-CommerceGroup-710/16/2016
  • 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. 11 E-CommerceGroup-710/16/2016
  • 12. PRICE Base of fixing the price • Cost plus pricing • Target return pricing • Value based pricing • Competitive pricing 12 E-CommerceGroup-710/16/2016
  • 13. PLACE • Distribution channel • Indian postal service • E- carter 13 E-CommerceGroup-710/16/2016
  • 14. PROMOTION • Sales promotion • Outdoor hoardings • Cut-outs • Digital marketing 14 E-CommerceGroup-710/16/2016
  • 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 10/16/2016 16 E-CommerceGroup-7
  • 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. 10/16/2016 17 E-CommerceGroup-7
  • 18. 5. Threats Of Substitutes  Buyer propensity to substitute  Relative price performance of substitutes  Buyer Switching cost 10/16/2016 18 E-CommerceGroup-7
  • 19. PRESENT SCENARIO/ CURRENT TRENDS 19 E-CommerceGroup-710/16/2016
  • 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 10/16/2016 20 E-CommerceGroup-7
  • 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 21 E-CommerceGroup-710/16/2016
  • 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.) 22 E-CommerceGroup-710/16/2016
  • 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 23 E-CommerceGroup-710/16/2016
  • 24. ROADMAP  Internet penetration  Logistics  Vehicle Tracking  Significance of Tier II and tier III 24 E-CommerceGroup-710/16/2016
  • 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 25 E-CommerceGroup-710/16/2016
  • 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 26 E-CommerceGroup-710/16/2016
  • 27. FUTURE OF ECOMMERCE  Social Media  Drone Delivery  App only approach  Google’s ‘Buy Now’ button  Artificial Intelligence 27 E-CommerceGroup-710/16/2016