EMERGENCE OF

E-COMMERCE A BRIEF
HISTORY INDIAN
SCENARIO

INTRODUCTION
E-COMMERCE IS AN EMERGING CONCEPT
THAT DESCRIBES THE PROCESS OF
BUYING AND SELLING OR EXCHANGING
OF PRODUCTS ,SERVICES AND
INFORMATION VIA COMPUTER NETWORKS
INCLUDING INTERNET

HISTORY OF E-COMMERCE
1970S: ELECTRONIC FUNDS TRANSFER (EFT)
USED BY THE BANKING INDUSTRY TO EXCHANGE ACCOUNT
INFORMATION OVER SECURED NETWORKS
LATE 1970S AND EARLY 1980S: ELECTRONIC DATA
INTERCHANGE (EDI) FOR E-COMMERCE WITHIN COMPANIES
USED BY BUSINESSES TO TRANSMIT DATA FROM ONE
BUSINESS TO ANOTHER
1990S: THE WORLD WIDE WEB ON THE INTERNET PROVIDES
EASY-TO-USE TECHNOLOGY FOR INFORMATION PUBLISHING AND
DISSEMINATION
CHEAPER TO DO BUSINESS (ECONOMIES OF SCALE)
ENABLE DIVERSE BUSINESS ACTIVITIES (ECONOMIES OF
SCOPE

HISTORY OF E-COMMERCE
ECOMMERCE BECAME POSSIBLE IN 1991 WHEN THE INTERNET WAS
OPENED TO COMMERCIAL USE. SINCE THAT DATE THOUSANDS OF
BUSINESSES HAVE TAKEN UP RESIDENCE AT WEB SITES.
IF YOU EXTEND E-COMMERCE'S DEFINITION TO INCLUDE RESEARCHING
PRODUCTS AND SERVICES ONLINE WITHOUT BUYING ANYTHING, OR
BIDDING ON AN ONLINE AUCTION BUT NOT WINNING, THEN THE NUMBER
OF ADULTS WHO PARTICIPATE IN E-COMMERCE JUMPS TO 93 PERCENT.
ACCORDING TO RECENT FORECASTS BY FORRESTER RESEARCH, ONLINE
RETAIL SALES WILL INCREASE 17 PERCENT IN 2008 TO REACH AN ANNUAL
TOTAL OF $204 BILLION, WITH THE BIGGEST SELLERS BEING CLOTHING,
COMPUTERS AND CARS.
E-COMMERCE'S HISTORY IS SHORT BUT FASCINATING. OVER THE COURSE
OF A FEW DECADES, NETWORKING AND COMPUTING TECHNOLOGY HAVE
IMPROVED AT EXPONENTIAL RATES. POWERFUL PERSONAL COMPUTERS
LINKED TO GLOBAL INFORMATION NETWORKS HAVE POWERED A WHOLE
NEW WORLD OF INTELLECTUAL, SOCIAL AND FINANCIAL INTERACTIONS.
AND THIS IS ONLY THE BEGINNING.

WHAT IS E-COMMERCE
COMMONLY KNOWN AS ELECTRONIC MARKETING.
IT CONSIST OF BUYING AND SELLING GOODS AND
SERVICES OVER AN ELECTRONIC SYSTEMS SUCH AS THE
INTERNET AND OTHER COMPUTER NETWORKS.
E-COMMERCE IS THE PURCHASING, SELLING AND
EXCHANGING GOODS AND SERVICES OVER COMPUTER
NETWORKS (INTERNET) THROUGH WHICH TRANSACTION OR
TERMS OF SALE ARE PERFORMED ELECTRONICALLY.

E-Commerce In India
INDIA'S E-COMMERCE MARKET WAS WORTH ABOUT $3.8 BILLION IN
2009, IT WENT UP TO $12.6 BILLION IN 2013.
IN 2013, THE E-RETAIL SEGMENT WAS WORTH US$2.3 BILLION.
ABOUT 70% OF INDIA'S E-COMMERCE MARKET IS TRAVEL RELATED.
ACCORDING TO GOOGLE INDIA, THERE WERE 35 MILLION ONLINE
SHOPPERS IN INDIA IN 2014 Q1 AND IS EXPECTED TO CROSS 100
MILLION MARK BY END OF YEAR 2016.
INDIA'SRETAIL MARKETIS ESTIMATED AT $470 BILLION IN 2011 AND
IS EXPECTED TO GROW TO $675 BN BY 2016 AND $850 BN BY 2020.
ACCORDING TO FORRESTER, THE E-COMMERCE MARKET IN INDIA IS
SET TO GROW THE FASTEST WITHIN THE ASIA-PACIFIC REGION AT A
CAGR OF OVER 57% BETWEEN 201216.
AS PER "INDIA GOES DIGITAL",A REPORT BY AVENDUS CAPITAL, A
LEADING INDIAN INVESTMENT BANK SPECIALIZING IN DIGITAL MEDIA
AND TECHNOLOGY SECTOR, THE INDIAN E-COMMERCE MARKET IS
ESTIMATED AT RS 28,500CRORE($6.3 BILLION) FOR THE YEAR 201516.

 IN 2009, THE E-COMMERCE MARKET IN THIS COUNTRY WAS WORTH

AROUND US$2.5 BILLION, IN 2011 IT WAS US$6.3 BILLION AND IN
2012, $14 BILLION. THIS NUMBER IS EXPECTED TO REACH $15
BILLION BY 2016, UP FROM $35 MILLION IN 2014, ACCORDING TO A
NEW REPORT BY GOOGLE AND FORRESTER RESEARCH.
WITH MILLIONS OF INDIANS SHOPPING ONLINE, THE E-COMMERCE
INDUSTRY IS WITNESSING A MASSIVE BOOM AND WILL CONTINUE TO
SEE EXPONENTIAL GROWTH. THE NUMBER OF ONLINE SHOPPERS IN
INDIA IS EXPECTED TO REACH 100 MILLION BY THE END OF 2016,
AND THE NUMBER OF INTERNET USERS IS SET TO REACH 300
MILLION BY THE END OF 2014.
ACCORDING TO GOOGLE INDIA, THERE WERE 35 MILLION ONLINE
SHOPPERS IN INDIA IN 2014 Q1 AND IS EXPECTED TO CROSS 100
MILLION MARK BY END OF YEAR 2016. A RECENT REPORT BY JUNIPER
RESEARCH REVEALED THAT OVER TWO BILLION USERS OF
SMARTPHONES OR TABLETS WILL BE MAKING AT LEAST ONE OR
MORE E-COMMERCE TRANSACTIONS THROUGH MOBILE BEFORE 2017
COMES TO AN END.
PAYMENTS MADE THROUGH MOBILE IN 2015 ARE EXPECTED TO
GROW AT A RATE OF 60.8 PERCENT, ANOTHER REPORT REVEALED.

COMPANIES
ADOPTED
E-COMMERCE

Benefits of E-Commerce
ECOMMERCE ALLOWS PEOPLE TO CARRY OUT BUSINESSES WITHOUT THE
BARRIERS OF TIME OR DISTANCE. ONE CAN LOG ON TO THE INTERNET AT
ANY POINT OF TIME, BE IT DAY OR NIGHT AND PURCHASE OR SELL ANYTHING
ONE DESIRES AT A SINGLE CLICK OF THE MOUSE.
THE DIRECT COST-OF-SALE FOR AN ORDER TAKEN FROM A WEB SITE IS
LOWER THAN THROUGH TRADITIONAL MEANS (RETAIL, PAPER BASED), AS
THERE IS NO HUMAN INTERACTION DURING THE ON-LINE ELECTRONIC
PURCHASE ORDER PROCESS. ALSO, ELECTRONIC SELLING VIRTUALLY
ELIMINATES PROCESSING ERRORS, AS WELL AS BEING FASTER AND MORE
CONVENIENT FOR THE VISITOR.
ECOMMERCE IS IDEAL FOR NICHE PRODUCTS. CUSTOMERS FOR SUCH
PRODUCTS ARE USUALLY FEW. BUT IN THE VAST MARKET PLACE I.E. THE
INTERNET, EVEN NICHE PRODUCTS COULD GENERATE VIABLE VOLUMES.
ANOTHER IMPORTANT BENEFIT OF ECOMMERCE IS THAT IT IS THE CHEAPEST
MEANS OF DOING BUSINESS.
FROM THE BUYERS PERSPECTIVE ALSO ECOMMERCE OFFERS A LOT OF
TANGIBLE ADVANTAGES.
REDUCTION IN BUYERS SORTING OUT TIME.
BETTER BUYER DESCISIONS
LESS TIME IS SPENT IN RESOLVING INVOICE AND ORDER DISCREPANCIES.
INCREASED OPPORTUNITIES FOR BUYING ALTERNATIVE PRODUCTS.

 THE STRATEGIC BENEFIT OF MAKING A BUSINESS ECOMMERCE ENABLED,

IS THAT IT HELPS REDUCE THE DELIVERY TIME, LABOUR COST AND THE
COST INCURRED IN THE FOLLOWING AREAS:
DOCUMENT PREPARATION
ERROR DETECTION AND CORRECTION
RECONCILIATION
MAIL PREPARATION
TELEPHONE CALLING
CREDIT CARD MACHINES
DATA ENTRY
OVERTIME
SUPERVISION EXPENSES

OPERATIONAL BENEFITS OF E COMMERCE INCLUDE REDUCING BOTH THE

TIME AND PERSONNEL REQUIRED TO COMPLETE BUSINESS PROCESSES,
AND REDUCING STRAIN ON OTHER RESOURCES. ITS BECAUSE OF ALL
THESE ADVANTAGES THAT ONE CAN HARNESS THE POWER OF
ECOMMERCE AND CONVERT A BUSINESS TO EBUSINESS BY USING
POWERFUL TURNKEY ECOMMERCE SOLUTIONS MADE AVAILABLE BY
EBUSINESS SOLUTION PROVIDERS.

E-commerce Investments in India

A STUDY BY RETAIL CONSULTANCY TECHNOPAK PREDICTS INDIAS E-TAILING MARKET WILL
REACH $32 BILLION BY 2020 FROM $2.3 BILLION IN 2014, WHICH IS A HUGE JUMP.
E-COMMERCE COMPANIES SUCH AS LIKE FLIPKART, AMAZON, AND SNAPDEAL ANNOUNCED
SOME OF THE MAJOR INVESTMENTS THIS YEAR, SMALLER ONES SUCH AS OLACABS,
QUICKR AND MYNTRA AMONG OTHERS HAVE STRENGTHENED THEIR FOOTHOLD.
HERE ARE SOME OF THE TOP E-COMMERCE INVESTMENTS IN INDIA IN 2015.
FLIPKART:IN JULY THIS YEAR, FLIPKART HAS OFFICIALLY ANNOUNCED $1 BILLION
FUNDING ROUND FROM INVESTORS SUCH AS TIGER GLOBAL MANAGEMENT AND
NASPERS. SINGAPORES SOVEREIGN WEALTH FUND, GIC, ALONG WITH EXISTING
INVESTORS ACCEL PARTNERS, DST GLOBAL, ICONIQ CAPITAL, MORGAN STANLEY
INVESTMENT MANAGEMENT AND SOFINA, ALSO PARTICIPATED IN THIS LATEST FINANCING
ROUND. THE COMPANYS CO-FOUNDER AND CEO SACHIN BANSAL SAID AT THAT TIME,
FRESH FUNDING WILL ENABLE US TO STEP UP OUR INVESTMENTS FOR INNOVATIONS IN
PRODUCTS AND TECHNOLOGIES, SETTING US UP TO BECOME THE MOBILE E-COMMERCE
COMPANY OF THE FUTURE.
SNAPDEAL:IN OCTOBER THIS YEAR, JAPANESE TELECOM AND INTERNET FIRM SOFTBANK
CORP. HAS SEALED A $627 MILLION FUNDING DEAL WITH INDIAN E-COMMERCE
MARKETPLACESNAPDEAL.COM, IN THE SECOND BIGGEST FUNDRAISING ROUND BY AN
INDIAN E-COMMERCE FIRM, AFTER FLIPKARTS RECORD $1 BILLION FUNDING ROUND
EARLY THIS YEAR. THE DEAL IS BEING ROUTED THROUGH SOFTBANK INTERNET AND
MEDIA, INC. (SIMI), A UNIT LED BY NIKESH ARORA AS ITS HEAD, A FORMER TOP HONCHO
AT GOOGLE. RECENTLY, SNAPDEAL CREATED HEADLINES WHEN IT RAISED AN
UNDISCLOSED AMOUNT OF FUNDING FROM RATAN TATA, FORMER CHIEF OF TATA GROUP
AND CURRENTLY CHAIRMAN EMERITUS OF GROUPS HOLDING COMPANY TATA SONS. THIS
WAS THE FIRST PUBLICLY KNOWN PERSONAL INVESTMENT OF TATA, WHO HAS INVESTED
IN HIS PERSONAL CAPACITY. THE ETAILER SAID IN A STATEMENT THAT IT IS PLANNING TO
RAMP UP ITS EFFORTS IN TECHNOLOGY AND SUPPLY CHAIN MANAGEMENT, IN ADDITION
TO MAKING THREE-FOUR STRATEGIC ACQUISITIONS IN THE COMING FEW MONTHS.

E-commerce Investments in India

MYNTRA:MUKESH BANSAL-LED ONLINE FASHION STORE MYNTRA SECURED $50
MILLIONINVESTMENT LED BY PREMJI INVEST ALONG WITH EXISTING INVESTORS ACCEL
PARTNERS AND TIGER GLOBAL.THE COMPANY PLANS TO USE THE INVESTMENT RAISED
TOSTRENGTHEN ITS TECHNOLOGY, INFRASTRUCTURE AND CUSTOMER EXPERIENCE,
FOR FUTURE GROWTH INITIATIVES AND HIRING.INCLUDING THE CURRENT
INVESTMENT, MYNTRA HAS RAISED A TOTAL OF $125 MILLION INVESTMENT ACROSS
MULTIPLE ROUNDS.
OLACABS:MUMBAI-BASED ANI TECHNOLOGIES PVT LTD, THE COMPANY BEHIND
OLACABS, AN ONLINE MARKETPLACE FOR CABS AND CAR RENTAL SERVICES, HAS
ENTERED INTO AN AGREEMENT TO RAISE $210 MILLION IN ITS SERIES D ROUND OF
FUNDING FROM SOFTBANK CORP., WITH PARTICIPATION FROM EXISTING INVESTORS
TIGER GLOBAL AND MATRIX PARTNERS INDIA, BESIDES STEADVIEW CAPITAL. THE FRESH
CAPITAL WILL BE USED TO EXPAND OLAS OPERATIONS INTO NEW CITIES AND COMPETE
HARDER AGAINST UBER AS WELL AS OTHER LOCAL PEERS SUCH AS TAXIFORSURE AND
SAVAARI, AMONG OTHERS.
QUIKR:QUIKR, COUNTRYS LEADING ONLINE CLASSIFIEDS BUSINESS, ANNOUNCED IN
SEPTEMBER THAT IT HAS SECURED A $60 MILLION INVESTMENT LED BY NEW INVESTOR
TIGER GLOBAL MANAGEMENT,A GLOBAL INVESTMENT FIRM, WITH PARTICIPATION FROM
ITS CURRENT INVESTORS. QUIKRS CURRENT INVESTORS INCLUDE KINNEVIK, MATRIX
PARTNERS INDIA, NOKIA GROWTH PARTNERS, NORWEST VENTURE PARTNERS, OMIDYAR
NETWORK, WARBURG PINCUS AND EBAY INC.THE NEW FUNDING WILL BE USED BY THE
COMPANY TO INVEST IN PRODUCT DEVELOPMENT AS WELL AS FURTHER EXPANSION OF
ITS FAST GROWING MOBILE BUSINESS, SAID PRANAY CHULET, FOUNDER AND CEO OF
THE COMPANY.

Success Factors of E-commerce

BRANDING : A BRAND IS A BELIEF AND THE MOST POWERFUL THING. THE REASON
WHY CLIENT DECIDE TO PAY HIGHER PRICE WITHOUT ANY PROBLEM.
USP : USP STANDS FOR UNIQUE SELLING PROPOSITION. A BUYER USUALLY SPENDS
A GOOD TIME ON RESEARCH. HE SEARCHES FOR,
PRICE
QUALITY
DEALS
REVIEWS ETC.

STORE EXPERIENCE : A GOOD STORE EXPERIENCE IS A MUST HAVE

FORECOMMERCESUCCESS. IF YOUR CART OR DESIGN SUCKS, NOTHING IS GOING
TO HELP TO CONVERT BETTER.
CUSTOMER RETENTION : A BUSINESS IS NEVER GOING TO BE A SUCCESS
WITHOUT THE ARMY OF LOYAL CUSTOMERS. CUSTOMER RETENTION IS HELPFUL TO
GET MORE SALES AND TO BUILD YOUR BRAND. A LOYAL CUSTOMER NOT ONLY BUYS
FROM YOU BUT HE ALSO SPREADS THE GOOD WORDS IN HIS NETWORK.
MULTI-CHANNEL MARKETING : THERE ARE OPPORTUNITIES LYING EVERYWHERE
IN INTERNET. SOME BUSINESSES ARE MAKING MILLIONS FROM FACEBOOK. SOME
BUSINESSES ARE KILLING THEIR COMPETITION WITH SEARCH ENGINE MARKETING.

Future of E-commerce in India

E-COMMERCE IS NOT NEW TO URBAN INDIA BUT WHAT IS THE
FUTURE OF E-COMMERCE IN INDIARECENTLY, WE SAW LOT OF
ACTIVITIES IN THIS SPACE LIKE FLIPKART BOUGHT LETSBUY.COM,
AMAZON.COM ANNOUNCED ITS INDIRECT ENTRY IN INDIA THROUGH
JUNGLEE.COM &OF-COURSE PE / VC INVESTMENTS IN VARIOUS ECOMMERCE VENTURES LIKE SNAPDEAL.COM

CURRENTLY, INDIA DOES NOT HAVE ANY GOVT POLICY FOR ECOMMERCE BUSINESS AND ITS RUNNING ON HIT AND TRIAL
METHODTHE LEGAL & REGULATORY ENVIRONMENT IS ALSO NOT
CONDUCIVE FOR E-COMMERCE BUSINESSMANY ENTREPRENEURS
ARE DIVING INTO THIS SPACE WITH THEIR IDEAS WITHOUT ANY CLUE
ON FUTURE BUSINESS MODEL AND PLAN FOR LONG TERM
SUSTAINABILITY

THANK YOU