Broadly, e-commerce means doing business over the internet. This implies that either goods can be delivered offline or products can be “digitalized” and delivered online. E-commerce however is marred by serious drawbacks. India only has 100 million active internet users. This implies that the internet usage in India is pretty poor. The problem is further aggravated by the fact that there is low credit card penetration coupled with slow internet speeds and fulfillment issues. As of today e-commerce is merely a 10 billion dollar market in India which is 1/6th of the US market. Despite this gloomy scenario, there are some important trends in e-commerce to look out for. This includes the fact that offline retailers are trying to go online, media biggies are getting into e-commerce, e-commerce platforms are gaining traction and mobile commerce is just beginning to take off, examples being banks and Indian Railways.

1. Trends in E-Commerce

2. E-commerce: Definition
► No widely accepted definition
► In loose sense it means doing business over the
internet, selling products [goods and services] which
are delivered offline as well as products which can be
“digitalized” and delivered on line.

3. e-Business & e-Commerce
► E-business: application of ICT to all aspects of companies
operations: i.e. customer relations management (CRM);
enterprise resource planning (ERP); sales force management
(SFM); electronic procurement (EP)
► E-commerce is a sub-set of e-business
► e-commerce: Functions
► Communication [on-line catalogue]
► Transaction [shopping carts: browse and select items and
make buying decision]
► Payment [electronic payment methods]

4. Early example of E-Business
Can anybody tell me the earliest example of e-
business or e-commerce?

5. The correct answer is ……

6. The correct answer is ……
SITA
SWIFT

7. The correct answer is ……
SITA - Société Internationale de Télécommunications
Aéronautiques, was founded in February 1949 by 11 airlines
SWIFT – Society for Worldwide Interbank Financial
Telecommunication was founded in 1973. Today it is linked to
9000 financial institutions in 209 countries, & carries 15 million
messages per day.

8. Types of e-Commerce
Government Business Consumer
G2G G2B G2C
e.g. Central & e-Tenders Information to
Government State Citizens, online
forms
B2G B2B B2C
e.g. procurement Covisint.com Flipkart.com
Business EDI, EFT Rediff.com
C2G C2B C2C
Online filing of Job portals like Facebook.com,
Consumer tax returns naukri.com Ebay.in,flikr.com
Source : OECD

9. Electronic Commerce: The 2nd Wave
e- Commerce history
 Mid-1990s to 2000: rapid growth
 “Dot-com boom” followed by “dot-com bust”
 2000 to 2003: overly gloomy news reports
 2003: signs of new life
 Sales and profit growth return
 e-Commerce growing at a rapid pace
 e-Commerce becomes part of general economy
 2008 – 2009 general recession
 Electronic commerce hurt less than most of economy
 Post 2009 – 2nd Wave / E-Commerce 2.0 underway
9

10. e-Commerce – First & Second Wave

11. How technology is Changing Everything

12. Internet Usage
How often do you use the internet
Daily
Three times a week
Two times a week
Weekly
Once a fortnight
Once a month

13. How much time do you spend on the Net
Less than 2 hours per week
5 hrs per week
5-10 hrs per week
11-15 hrs per week
More than 15 hrs per week

14. E-Commerce is Booming in India???

15. Huge Population is only part of the story

16. That is only 1/16th of the US Market
US
$ 167 Billion
India
$ 10 Billion

17. In 2011 Online buying picked up momentum!
100 CAGR
24%
Regular Internet Users Shoppers Buyers
80 70 to 80
21%
60
60
In Million
48 60 to 70 42%
39 50
35
40
25 26
35
28 20 to 25
20 17
19 10
8
3 5
0
2007 2008 2009 2010 2011 2012
Source: Juxt India Online Study (Recent Round - July 2011 - 2,25,000 random samples from 104 towns & 800+ villages across India)
*Note: Regular – At least once a month, Shoppers – Only Search, Buyers – Search & Buy Online
17

18. ► In 2011 India had 60 million ‘regular’ users, out of total 80 million
users.
► Internet reaches 29 million Indian households -avg. 2.23 users per
household
► Covers 11.3% of all Indian households
► 5.4% of all Indians
► Over 4 in 5 are ‘daily’ users (Daily users‟ base grew faster, at 33%)
► 4 out of 5 internet users ‘shop’ online (shoppers only search),
translating into a 50 million strong online consumer base
► 17 million of these „online shoppers‟ (or 29% of all internet users), also
‘buy’ online - 70% growth from 10 million last year

19. 3
A few facts…
Unique Non-Travel Buyers per Quarter
Others 1%
2.00
2 Cash Card 1%
1.27
1.07 e-currency 3%
1 Rate of return
0.62 0.64 0.68 Cheque/DD on Delivery 10% 30 to 40%
0.41
Cash on Delivery 41%
0
Net Banking 42%
JFM'10
AMJ'10
JAS'10
JFM'11
AMJ'11
JAS'11
OND'10
Credit card 48%
Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of
online non-travel buyers) Debit card 58%
100% 0% 20% 40% 60% 80% 100%
Credit Card Ownership
80% Net Banking Users ► Of the 13million around 2million unique people
transact in any given month
60%
38% 38%
► Credit card penetration among Internet users is
40% 29% 31% relatively low and remained stagnant
► Users use on an average 2 mode of payments, ‘Cash
20%
24% 25% 26% 25% on Delivery’ is growing and throwing unique
0% challenges
2008 2009 2010 2011
Source: Juxt India Online Study

20. The Great India E-commerce Bazaar
Source : MySmartPrice.com

21. Source : MySmartPrice.com

22. What do they sell
Source : MySmartPrice.com

23. Top 20 Ecommerce Sites in India
Rank Site Rank Site
1 Infibeam.com 11 20north.com
2 Indiaplaza.com 12 Yebhi.com
3 Tradus.in 13 Snapdeal.com
4 Flipkart.com 14 Dealsandyou.com
5 Myntra.com 15 Dell.co.in
6 Futurebazaar.com 16 Fernsnpetals.com
7 Bookmyshow.com 17 Indiangiftsportal.com
8 Indiatime.com 18 Talash.com
9 Rediff Shopping 19 Zoomin.com
10 Homeshop18.com 20 Snapfish.com
Source : Indiaranker.com

24. Some funny store names !!!
Source : MySmartPrice.com

25. Important Trends
Travel was the first to go online
Brands are moving to creating their own online stores –
Nokiashop, Puma, Reebok, Samsung, VIP, Fastrack, etc
Fashion is No.1 Category –
Top 3 categories all belong to fashion with 130 online stores
[big & small] selling some fashion products. Apart from this 91
stores deal exclusively in fashion
Rise of exclusive online labels –
Zovi, Shersingh
Lingerie is Big –
Over 39 stores sell innerwear & lingerie

26. Important Trends
Offline retailers are trying to go online –
Futurebazaar, Cromaretail, The Mobile Store, Univercell
Media Publishing Biggies are venturing into e-commerce –
Homeshop18. indiatimes.com, BagitToday, StarCJ
E-commerce Platforms are gaining traction –
e.g. Buildabazaar, MartJack
Popular Deal Sites are gravitating to e-tailing –
e.g. KyaZoonga, snapdeal, koovs, seventyMM
Mobile commerce is just about starting –
e.g. Indian Rlys, banking transactions

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