FUTURE PROSPECTS OF E-

COMMERCE IN RURAL INDIA

P.G.Suresh 15BCC0041
K.C.Arun Kumar 15BCC0097
S.Harish Venkatram 15BCC0119
R.Karthick 15BCC0072
INTRODUCTION
• Many Indians are moving online and they are spending money on stuff. However, in spite of
India’s massive E-Commerce boom, the country’s tremendous E-Commerce growth has not
reached rural Indian where the concept of online shopping is still largely unheard of in some
villages.
• The majority of Indian population still lives in the rural areas, the true potential of India’s
online shopping will only be unlocked if Indian retailers can figure out ways in which to reach
out to the often underserved rural market.
• It is not all a lost cause as far as rural Indian E-Commerce penetration is concerned, however.
There are certain large Indian e-retailers that are slowly making some inroads into the Indian
rural market. These include the big players such as Amazon and Flipkart. On the other hand,
there are various Indian start-ups that have solely focused their efforts on the country’s rural
market such as Inthree. Players like iPay offering cash payment & fulfilment which also creates
opportunity for rural customers to buy products without plastic money online.
LITERATURE AND FRAMEWORK
• G. Kannabiran (2005) Explained over the last decade India has been one of the fastest adopters
of information technology. Strategic alignment of business and IT strategies, planning and
implementation of e-banking initiatives, and management of benefits are captured, along with
key contributions to development.
• Vaithianathan S (2010) This study examines the existing status of EC in India and reviews the
available literature on E-commerce adoption in India and puts forth opportunities for future
research.The study might serve as a starting point for further research in e-commerce in India.
• Pratim Datta (2010) suggests that in developing countries, facilitating conditions play a critical
moderating role in understanding actual ecommerce adoption, especially when in tandem with
technological opportunism. Altogether, the paper offers a preliminary scrutiny of the mechanics
of ecommerce adoption in developing countries.
 DATA ANALYSIS-DEMOGRAPHIC PROFILE
AGE
30

25

20 Since the target population was the

No of samples

15 Educated persons the youth took by

10
24
majority of 24 for the survey.
5
7
5 4
0
Below 18 yrs 18-30 yrs 31-50 yrs Above 50 yrs
no of samples 5 24 7 4

OCCUPATION

The target population was the Student 29

Occupation
persons with minimum qualification. Self - employed 3

For accurate results well educated

Private employee 6

Government Employee 2
population was opted with 29 0 5 10 15 20 25 30 35
students and 4 private employees. Government
Employee
Private employee Self - employed Student
No of samples 2 6 3 29

No of samples
DATA ANALYSIS-BARRIERS
Barriers that prevent you from shopping online

30 28
26
25

20 18 18
16
15

10 9 9 9 9
8 8
6 6
5 5 5 5
5 3
2 2 2
1
0 0 0
0
Strongly Agree Neutral Disagree Strongly disagree.

Not sure about the quality of the products sold on-line.

It is not secure to do financial transaction online
It is not convenient to shop online.
Not able to touch and feel the product that I buy
Not able to get the product immediately
DATA ANALYSIS-FACTORS
factors that encourage you to shop online
25
23

21

20

15
15
13 13
12 12
11

10
8 8 8 8
7 7 7
6
5
5 4 4
3
2 2
1
0 0
0

Discounts attract me to Time is saved Shopping online is I can pay cash on delivery I get access to a variety of
shop online convenient compared with products
visiting the shop
Strongly agree Agree Neutral Disagree Strongly disagree.
SUGGESTIONS
• Making strategic investments in internet/broadband penetration in rural India. The government
can, for example, provide strategic incentives to internet providers in rural India.
• Develop strategies and roadmap for promoting E-Commerce growth in rural India. This should
be a multi-stakeholder effort incorporating the Indian government, E-Commerce companies,
local state governments and infrastructure providers. Even consumer advocacy groups should
be involved in the process.
• Using available resources and data in order to promote policy development and initiatives to
boost rural E-Commerce. For example, the use of the India-Post logistical infrastructure.
CONCLUSION
• The number of connected individuals in rural India is expected to grow from 120 million in
2015 to roughly 315 million by 2020, an average increase of 30% per year.
• Rural India accounts for two-thirds of the country’s population, or 807 million people, and
their migration to the internet will be a driving force behind the country’s e-commerce
growth.
• Delivering goods to rural India will be the biggest challenge for the major e-commerce
marketplaces. Amazon India, Flipkart, and Snapdeal are the major e-commerce players in India,
and each of them has been making significant investments in the country.
• However, the physical delivery of goods to rural consumers remains a large challenge for these
companies, as a lack of logistics infrastructure makes it difficult to access rural areas.
• Looking ahead, e-commerce sites in India should focus on building out logistics capabilities to
serve rural consumers in order to drive growth in the future.
CONTRIBUTION

P.G.Suresh
(15BCC0041) Data
Collection and
K.C.Arun Kumar
interpretation for S.Harish Venkatram
(15BCC0097) Data
obtaining possible (15BCC0119) Data R.Karthick
Collection and
suggestions and Collection and (15BCC0072) Data
representation of
conclusions. presentation data Collection and data
data analysis,
Studying the interpretation i.e., analysis.
utilising the analysis
secondary literature findings.
tool (SPSS).
framework and
utilising of the
analysis tool (SPSS).
REFERENCES
Datta, Pratim. "A preliminary study of ecommerce adoption in developing
countries." Information Systems Journal 21.1 (2011): 3-32.

Kannabiran, G., and P. C. Narayan. "Deploying Internet banking and

e‐commerce—case study of a private‐sector bank in India." Information
Technology for Development 11.4 (2005): 363-379.

Melnik, Mikhail I., and James Alm. "Does a seller’s ecommerce reputation
matter? Evidence from eBay auctions." The journal of industrial
economics 50.3 (2002): 337-349.

Underwood, Roy Aaron. "Initializing an ecommerce database

framework." U.S. Patent No. 6,633,878. 14 Oct. 2003.