For the complete report, get in touch with us at : info@netscribes.com 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

1. e-Commerce Market – India
November 2011

2. Executive Summary
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%
Market 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:
PLE
Increased Spending Power
Extensive Usage of Plastic Money
Challenges:
Secure Payment Concern
Drivers &
Challenges Users
S M
Increasing Internet Penetration and PC
A
Ease of Transaction
Government Initiative
Lack of Confidence
Purchase Decisions are Brand Oriented
Trends Social Media Involvement
Increasing BPO Tie Ups
Major e-Commerce Vendors
Competition Player 1 Player 2 Player 3 Player 4
Player 5 Player 6 Player 7 Player 8
E-COMMERCE MARKET INDIA 2011.PPT 2

3. •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
E-COMMERCE MARKET INDIA 2011.PPT 3

4. An example of e-Commerce system work model
Regional Logistics Support Regional Warehouse Logistics Support
PLE
Internet Enabled Devices
Consumers
SAM e-Commerce
Space
Warehouse
e-Commerce
Vendor
Financial Service Provider
E-COMMERCE MARKET INDIA 2011.PPT 4

5. An illustration of the transaction flow within an
e-Commerce system
Consumer Bank Account
PLE Vendor Bank Account
SAM
Transaction via credit/debit cards
Transaction
Authorization Third Party
Vendor
Notification Notification
Consumer Product Vendor
Product Delivery Logistics Support
E-COMMERCE MARKET INDIA 2011.PPT 5

6. Presence of extremely affordable and desirable
e-Commerce options is driving the market in India
e-Commerce Market – India Overview
• 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 ‘
LE
• Players in the market are following several strategic moves to lure and attract customers, some of which are enlisted
as below:
P
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
M
Often customers are offered a scheme of earning loyalty points which can be redeemed to claim discounts on commodities or services
availed online
SA
• 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 Growth - India e-Commerce Market Share (2010)
INR tr
c
f Segment 1
b xyz
e Segment 2
d Segment 3
a b c
a Segment 4
0 Segment 5
2010 2011e 2012e 2013e 2014e 2015e
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 6

7. e-Commerce Segments (x/x)
e-Commerce – Segment 1
• 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
E
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
L
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:
MP
A
Railway booking is the most popular amongst all categories
S
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:
xyz
Subsegment 1 Subsegment 2 Subsegment 3
xxx yyy zzz
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 7

8. An example of e-Commerce ecosystem
Ecosystem Internet Application e-Commerce
Layers
Intermediaries
Infrastructure Infrastructure Companies
PLE
Description aaa
SAM bbb ccc ddd
Company
eee fff ggg hhh
Type
Examples of
www xxx yyy zzz
Companies
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 8

9. e-Commerce in India has diversified immensely wherein
various methods of transaction has evolved
•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
E
B2B B2C B2E
PL
M
• xxx • xxx • xxx
C2B SA C2C
• xxx • xxx
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 9

10. e-Commerce website development is carried out in phases
so as to ensure proper and efficient functioning
LE
e-Commerce – Website Development Phases
P
Developing an e-Commerce website is a step by step approach, consisting of various phases, so as to
M
ensure proper and efficient transaction over the internet
SA
•Aaa • Bbb
Research •Sss Development • Ccc
•Ttt • Yyy
• Ddd Website • Ggg
Planning • Eee • Hhh
• Zzz Launch • Lll
• Mmm
Design • Nnn
• Ooo
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 10

11. Drivers & Challenges – Summary
Drivers
Increased Spending Power
Challenges
Extensive Usage of Plastic Money Secure Payment Concern
Increasing Internet Penetration and PC
Lack of Confidence
Users
Ease of Transaction
Government Initiative
E-COMMERCE MARKET INDIA 2011.PPT 11

12. A comparison between the supply and demand side of e-
Commerce system
e-Commerce Vendors
PLE e-Commerce Users
(Supply Side)
SAM (Demand Side)
Consumer Objectives
e-Commerce • Round the clock availability of products
Perception
Space / services
• Generate higher revenues
• Hassle free product / services
• Utilize existing resources
comparison
• Offer enhanced customer satisfaction
• Reduced time requirement
• Maintain healthy brand image
• Nullification of Fuel and transportation
• Provide full fledged virtual store
expenses
facilities to consumers
• Benefits from loyalty programs offered
Requirements
by vendors
• xxx
Requirements
• yyy
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 12

13. Online purchase decisions are mostly brand oriented and is
SAMPLE
mainly influenced according to the area of living
• Indian e-Commerce market is witnessing some phenomenal Top 10 Cities involved in e-Commerce
trends, which reflects the shopping pattern of consumers
• These trends can listed as: Rank Name Rank Name
• States including Maharashtra, Delhi, Tamil Nadu, Karnataka
and Andhra Pradesh happen to be most acquainted with e- 1 City 1 6 City 6
Commerce
• Metros, tier II and III cities and rural areas accounts for x%, 2 City 2 7 City 7
y% and z% of the overall market
• Purchase patterns are purely brand driven 3 City 3 8 City 8
• Jewellery & Accessory segment witnessed a continual
increase in the number of women shoppers 4 City 4 9 City 9
• Majority of products purchased belonged to the electronic
goods while lifestyle products accounted for a%
5 City 5 10 City 10
AAA & BBB – Products Brand Preferences – Across Categories
AAA BBB
Solitaire
Cell Phones Blu -ray DVDs Pendants Lamp work a b c d
Crystal
Stamps Men’s shoes Wrist Watches Items
Commonwealth e f g h
Watches Netbooks Stamps PC Games
Natural
Diamonds Digital Cameras Medical Items DVDs H happens to be the only Indian
h brand to find substantial popularity
Laptop Sarees & Mineral in e-Commerce market
Sunglasses Batteries Apparels Specimens
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 13

14. PE investments in the e-Commerce market is witnessing a
major growth over the past years
Overview PE Investments – Online Ventures
• Owing to the lucrative aspects in the e-Commerce
market in India, it is attracting major domestic and INR bn
LE
international PE funds c
The market received a total of xxx investments in FY 11 as xyz c
P
compared to yyy in FY 10
b
• PE investments made in the recent years has facilitated
a
M
modernization and betterment of services by a large a
extent
the investments
SA
• Primarily, only the online retail players benefited from 0
Recent investments in the Indian e-Commerce market (2009 -2010)
20-- 20-- e
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
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 14

15. Major e-Commerce Players (1/8)
SAMPLE 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,
Parent Company: x sunglasses, winter wears and sports apparels
• Caters to the need of individuals as well as retailers
Industry Classification: x
Currently, serves to about 3000 retailers across India
Website: x • In July, the company has received a fund worth INR
xyz mn, from abc and def in its second round of
Phone: x funding
The company had earlier announced in Dec 2010, to have
Key Person: x received an investment of INR asd mn, from xxx
Player 2 Headquarter: x • Primarily operates as an online e-commerce portal
wherein it offers lucrative deals for individuals,
Parent Company: x specific to an individual’s location of interest
• Its areas of operation comprise of Bangalore,
Industry Classification: x Chennai, Delhi, Hyderabad, Kolkata, Mumbai and
Pune
Website: x • Till Jun 2010, the company was known as abc
• Currently, the company is anticipated to be valued at
Phone: x
INR xxx mn and is expected to receive investments
Key Person: x 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
Source: x
E-COMMERCE MARKET INDIA 2011.PPT 15

16. Strategic Recommendations
xyz
AAA
• aaa
PLE
BBB • bbb
SAM
CCC • ccc
E-COMMERCE MARKET INDIA 2011.PPT 16

17. Thank you for the attention
The e-Commerce Market – India report is a part of Research on India’s Information
Technology Series. For more detailed information or customized research requirements
please contact:
Kalyan Banga Our other offerings in the IT Series:
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E-COMMERCE MARKET INDIA 2011.PPT 17