Presentation on Ecommerce Ecosytem. The Following points are included:
1)History of E-commerce
2)Increasing E-commerce in India
3)Problems faced in E-commerce
4)Effects on Retailers
5)Effect on Economy
6)Effect on Government policies on Ecommerce
7)Opportunities for Venture Capitalists
8)Valuations of E-commerce Market
2. Outline
History of E-commerce
Increasing E-commerce in India
Problems faced in E-commerce
Effects on Retailers
Effect on Economy
Effect on Government policies on Ecommerce
Opportunities for Venture Capitalists
Valuations of E-commerce Market
3. History Of E-commerce
Started in 1991
At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies which gave an opportunity for users to
exchange business information and do electronic transactions.
In 2000 a great number of business companies in the United States and Western Europe
represented their services in the World Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term ecommerce as the process of
purchasing of available goods and services over the Internet using secure connections and
electronic payment services
ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce
sales accounted for 3.4 percent of total sales.
4. History of E-commerce in India
1991: Introduction of E-Commerce
2002: IRCTC teaches India to Book ticket online
2003: Introduction of Low Cost Airline with AirDeccan
2007: The Deep Discounted model of Flipkart
2014: Current Scenario
5. Increasing E-Commerce in India
With the emerging era of Digital India, where smartphone sales have sky-rocketed,
there is a lot of scope for E-Commerce.
With its essential features like all season discounts and 24/7 availability, it has
attracted a lot of people
30 Days return guarantee, 1-7 days delivery time, etc. to the online shopping and the
E-Market have added new flavours to the industry
Youth Factor (60-62% of population)
“India’s e-commerce market was worth about USD 3.8 billion in 2009, it went up to
USD 17 billion in 2014 and to USD 23 billion in 2015 and is expected to touch
whopping USD 38 billion mark by 2016,”
6. Key drivers in Indian E-commerce
The Increasing broadband Internet and 3G penetration
Growing Living standards
Availability of much wider product range
Busy lifestyles and lack of time for offline shopping
Increased usage of online categorized sites
Evolution of the online marketplace model with websites like eBay, Flipkart ,
Snapdeal, etc.
8. Trust Factors
An important reason for using e-commerce because when people trust you they will
do business with you
A consumer makes a purchasing decision (purchase) based on his or her purchase
intention
Benefit, risk, and trust toward the Internet selling entity
Trust toward the selling party will also indirectly increase their intention to purchase
by reducing their perceptions of risk (indirect effect)
Engage in an Internet purchase when perceived risks are low, when perceived
benefits are high, and when trust is high (direct effect)
10. Problems Faced In E-commerce
Poor Knowledge and Awareness
Online Transaction
Cash On Delivery
Online Security
Logistics and Shipment Services
Tax Structure
Fear factor
‘Touch and Feel’ factors
11. Effect on Offline Retailers
Online business is rich in information but lacks in touch and feel, offline business is
rich in touch and feel but lacks in flow of information
There is no behavioral data available on what products customer searched for, what
was the customer’s preference, which colour he/she liked, which brand he/she liked
when the customer leaves the shop.
But when customer buys online, all behavioral data can be tracked and this data can
be used to provide intelligent recommendations.
As customers’ trust on online market is increasing, products like pen-drive, mobiles,
earphones are more being purchased online.
Customers get look and feel of the product at offline store and then prefer to
purchase online at cheaper rate.
Wide range of products can be selected by the consumers with just one click.
12. Effect of e-commerce on Indian
economy
Indian e-commerce has been growing at an unprecedented rate, adding about
70million entrants per year.
Indian e-commerce has been estimated to generate a revenue of 100billion by the
end of 2016 which would boost India’s economy.
Analysis shows that 40% population in the age group 15-25 and are the potential of
e-commerce and this figure is expected to rise to 64% by 2020.
The below graph shows the current and estimated growth GDP contributed by e-
commerce:
13. The blooming e-commerce is likely to be a game changer for future job markets.
Internet penetration and smartphones have led to increase e-commerce trade which has
positive effect on economy.
The bloom is to be seen in Tier-2 and Tier-3 cities in India.
Below pie chart shows current need of e-commerce in the nation.
14.
15. Effect of Government policies on
Ecommerce
Changes in government policies such as taxations.
Regulations by the telecom authority-TRAI.
Improvement in technology has promoted the implementation of government
policies-paving way for Ecommerce.
Emphasis to Innovation and Entrepreneurship based education.
Financial, e.g. grants, loans, subsidies, financial sharing arrangements, provision of
equipment, buildings or services, loan guarantees, export credits, etc.
16. Opportunities for Venture Capitalists
Ecommerce has turned out to be a great investment opportunity for VCs owing to
high returns.
Increasing competition among the various players has brought investments form
various financial corporates-PE’s;VC;Angel Networks.
17. Valuations of E-commerce
Market
Experts have pinned India as one of the fastest growing e-commerce markets
Holds valuations of 1.2 trillion US dollars
About 40% of internet user worldwide
18.
19. The Way Ahead!(Buyers Think)
“As the vertical segments of the e-commerce market being filled up, the competition
is getting fired up. Online shopping will grow because of competition!”, says an
online buyer on Quora.
44%
44%
4%
1%
7%
What Buyers Forecast?
Very Good
Good
Not so good
Do not have a future in India
Don't know / Can't say
20. The Way Ahead!(Experts Speak)
Neither Flipkart nor Snapdeal is profitable!
“E-commerce companies need to realize the fact that their entire business model
depends on discounts. Once the discount is lowered or dropped, customers will start
looking elsewhere for a better deal.”, says a blogger in The Huffington Post.
However, rise in internet connectivity and craze of smartphones would boost it’s
growth.
