Ecosystem now suggests that it is a perfect time to start ecommerce business in India. In the past, there was a similar feeling a couple of times. But now is the time. This slideshow attempts to explain why this is the right time, how it differs from the past.
3. Because….
• Your customers want it
• Your potential customers are looking for it
• Eco-system is sufficiently mature to create new
success stories
4. Ecosystem favoring e-Commerce in India: part I
• Internet penetration, 3G
– Various official sources suggest that by mid 2013, more than 12.5 Cr
people in India use internet.
– It is estimated that this number will reach 37Cr by 2016.
– Quality, directly linked to the speed, of internet has improved
significantly with 3G.
5. Ecosystem favoring e-Commerce in India: part II
• Smart phones & tabs
– It is given that growth of internet access devices is rather dramatic in
India.
– Availability of affordable smart phones and tabs is excitable.
– One can buy online while travelling or sitting in a café or lying on bed
6. Ecosystem favoring e-Commerce in India: part III
• Technology infrastructure – frontend & backend
– Availability of high quality web hosting solutions at affordable prices,
– Growth and proven stability of ecommerce opensource platforms like
Prestashop, Magento etc,
– Improved security standards,
– Improved ability of back-end platforms to integrate with front-end
platforms and
– Overall maturity of technology solutions providers with respect to
ecommerce
7. Ecosystem favoring e-Commerce in India: part IV
• Spread of social media
– Social media offers a very effective and affordable way of promoting
your ecommerce website & products.
– Users of Facebook, LinkedIn, Twitter etc are more receptive to the
promotions – largely because ways of promotions have evolved for
better.
8. Ecosystem favoring e-Commerce in India: part V
• Internet marketing, search engine marketing
– Internet marketing service has evolved significantly for better.
– Service providers are in better position than past years in terms of
setting expectations and achieving them.
– A good internet marketing service provider or consultant can help you
achieve more with lower budgets.
– Also, as compared to the past 3-4 years or so, huge amount of
knowledge base about search engine marketing and overall internet
marketing is available on web.
9. Ecosystem favoring e-Commerce in India: part VI
• Indian consumer behavior
– Overall, Indian customer is not afraid of paying online, swiping
credit/debit cards, filling credit card information on web.
– Above this, cash-on-delivery (CoD) payment system has appealed to
the Indian customers. With CoD, there is absolutely no question of
fear among customers about online shopping.
10. Ecosystem favoring e-Commerce in India: part VII
• Young population with disposable incomes
– Various sources suggest that more than 50% of Indian population is
under age 25 and 65% under 35.
– Working bachelors with disposable incomes in tier I & II cities, quite
obviously, are the prime driving force of ecommerce in India.
11. Ecosystem favoring e-Commerce in India: part VIII
• Logistics
– Courier and cargo companies are working out friendly business models
for ecommerce companies.
– Reputed service providers are taking complete responsibility of on
time delivery as well as collecting cash (as in cash-on-delivery
model), managing returns, safeguarding from thefts.
12. Ecosystem favoring e-Commerce in India: part IX
• Cost of real estate in physical retail
– For a retailer, expansion typically means buying additional real estate.
– Cost of real estate in major cities, or may be in all cities and towns, is
unlikely to show any downward trend. It weathers all the recession
storms somehow.
– Having an ecommerce website means additional revenue
source, opportunity to get new customers, expand geographical reach
without adding a single square foot of real estate.
13. Ecosystem favoring e-Commerce in India: part X
• Traffic, parking, billing qs in physical retail
– It may sound trivial – but if we ask ourselves where would we like to
spend the weekend; in traffic, in search of parking, in long billing qs or
at a nice resort/any other peaceful place, home may be?
– The answer suggests that most of the customers are looking for their
favorite shops giving them online buying option.
14. Stats – just for the sake of it!
• More than 50% of population below the age of 25
• More than 65% below the age of 35
• More than 12.5 Cr internet users
• Last year, India had 1.8 Cr new internet subscribers
• ASSOCHAM predicts reaching 37 Cr users in the next 2 years
Sources: Mr. Rajiv Dabhadkar’s article on Times of India website dt 24-Sep-13, Wikipedia
15.
16. Simple 3 steps mantra
• Month 1: launch your site
• Month 2: improve your site
• Month 3 onwards: do relentless marketing