Ecommerce

Asia pacific strongest ecommerce market with 567.3bn largest market share in
world
Then europe
North America
global increase : 24%

India's internet penetration : 50 mn

China : 210 mn

35 million online shoppers in india

Etravel : 70% of ecommerce

Factors that will fuel growth :

1) Internet
Internet users in India ; 243 mn
Internet users percentage : 19%
75 % internet users are from age 15 to 34

Developments in 2014 :

Small towns 20-30% rise in transactions as people have more ambitions there
mobile transactions
Enhanced shopping experience
Partnership with leading brand
o Jabong : Dorothy Perkins, River iseland
o Mynta : Harvard lifestyle
Expanding product basket

Factors to be considered before entering In market :

Market size
Ecommerce readiness :understand consumer behavior, retail opportunity,
payment gateways
Scope of growth
Barriers to entry : regulations
Competition

Concerns

Generation of traffic
High customer acquisition costs
Delivery problems in rural areas
High payment cost in deliveries
Low profit
Regulatory barriers
Skilled manpowers

Challenges

Internal
o Market
and product strategy
o Customer and digital experience
o Payments and transavtions
o Fulfilmenet
External
o Organization scaling
o Tax structuring
o Risk and cyber security
o Compliance framework

Way forwards
With rise of 4G, internet penetration will increase : Mobile commerce
Changes in lifestyle : prefer online and mobile shopping
Cars and real estate set to grow
Fund raise through IPO
For accelerate growth

Customer experience : Videos, After sales service, Reviews and ratings

Technology : Fast websites, , intergrated inventory management,

Convergence of online and offline channels

Delivery experience
Payments and transactions
Tax n regulatory environment : laws are still evolving
Operational framework : organizationl str. System building, financial and
talent management
Digital infra : SMAC
Customer acquisition : Gap between potential and actual buyers. 2% only

Conclusion :
Technologies like virtual wall virtual mirror
Virtual mirror : try on clothes virtually before buying
Virtual wall : scan barcode on item and place order to retailer(Tesco first to
implement)
Homeshop 18 : Virtual wall
Connectivity
B2b : Alibaba
B2c : amazon
C2b: Priceline
C2C : ecommerce
Flipkart and government pact to offer online retail training to semi urban people
Flipkart signs MOU with Textiles

Assisted Ecommerce
Setting up kiosks in rural india where people can place orders and collect them.
Snapdeal tie up with FinoPayTech to set up approx. 5000 ecommerce kiosks all
across 70000 target rural areas