E-Commerce Trends In India

A Presentation By:
Kunal Srivastava
Electronic commerce consists of the buying and
selling of products or services over electronic
systems such as the Internet and
other computer networks.
 Ecommerce in India

• India has a ecommerce potential of nearly $300Billion

which no one has even scratched.
• 2010 has been defining for the Indian e-commerce
sector. A fairly old industry in India, this sector has
caught the fancy of investors and has generated multiple
entrepreneurial avenues, riding on macro trends such as
increase in broadband penetration, change in buying
patterns and the success of group buying sites globally.
• Most significantly, travel site MakeMyTrip’s listing at the
Nasdaq spurred the interest of many an investor as they
saw a clear potential of a liquidation event.
 Facts
• Internet Users in India : 52,750,000
• Total E-Commerce Transactions in India: Rs.2,78,000
Crore in 2010
• B2B transaction in 2010 is Rs.2,64,000 crores
• Global e-solution service market in 2010 $19 billion.
• Domestic market for e-solutions in 2010 $1.8
million.
• 76 per cent of online shoppers access the Internet
from their offices and homes, and 24 per cent from
cyber cafes.
B2C transaction in 2010 is Rs. 14,000 crores (see the
below figure)

- Telecom services Rs. 1750 crores

- Consumer electronics Rs. 1550 crores
- Travel Rs. 2450 crores
- Automotive Rs. 1450 crores
- Financial services Rs. 2300 crores
- Books Rs. 1150 crores
- Music Rs. 1100 crores
- Others Rs. 2250 crores
 Trends

Business models across the world also continue

to change drastically with the advent of
eCommerce and this change is not just
restricted to USA. Other countries are also
contributing to the growth of eCommerce with
India being the fastest growing.
 Categories that are flying

Domestic entrepreneurs are raring to set up

online stores mimicking global ecommerce
sites. The top categories within e-commerce,
investors say, are travel, classifieds, group
buying, auto sales and luxury brands.
 Travel, the big e-commerce story
• The catalyst for e-commerce, one category
which is largely responsible for making users
more comfortable with online transactions is
travel.
• Top players such as IRCTC, Makemytrip, Yatra
Cleartrip are witnessing a boom in online
ticketing sales and are expanding their
portfolio of services to add hotel booking and
packages.
Exclusive book retail is sustainable
• Online book stores like OM Book Shop, Crosswords,
Flipkart, Infibeam, JBD and others are expanding their
portals day by day with increasing demand of books
and that too online.
• This is because people can read the reviews online
and can make a decision.
• These websites are now selling related DVD’s and Cd’s
online.
• With more than 362 online book retailers the online
earning is now 1150 crores.
 Indians love discounts
• Having received high valuations, deal sites and
voucher-based ecommerce is the flavour of the
year with domestic startups mimicking global
sites, primarily retail and travel sites.
• Sites such as Snapdeal.com, Futurebazaar.com
have established themselves and a slew of
more daily, localised deal sites are cropping up
such as DealMagic and Koovs.com apart from
Ebay.in.
 But they also like fashion
• In India, sites such as Shopperstop.com,
Pantaloons.com, Infibeam.com, Fabindia.com,
cbazaar.com, 99labels.com, exclusively.in and
Fashionandyou.com are competing in this
segment making it worth Rs.200 crore in India.
• In November, Accel India Venture Fund and
Helion Advisors Pvt. Ltd. invested $2.8 million
in Exclusively.In, followed by Sequoia Capital
infusing $8 million in Fashionandyou.com.
 Strategic shifts
• General e-commerce has shifted from being a
horizontal space to vertical and shopping sites
such as Indiatimes Shopping and Rediff
Shopping need a total makeover.
• On the other hand, many portals are expanding
horizontally - take Yebhi for example.
Bigshoebazaar was recently rebranded as Yebhi
- it no longer is a shoe-only store and also sells
accessories, bags and clothing.
 What is in store

• Indian shoppers are lazy. Before going out to

buy anything new they check the product
online and then decide to buy it.
• As a result many websites crop up which
shows the new products in market like
infibeam, mobilestore, Hotspot, flipkart etc.
Continued interest in Social Media
• The stats released by Comscore for July 2010
revealed that more than 43 million Internet
users in India visited social networking sites,
representing a whopping 54% of the total
Internet audience visiting social media sites.
This was a growth of 43% over a 12 month
period; contrast this with a mere 13% growth
in the total internet users.
• I feel that Social media is here to stay and will
have continued interest.
 Classifieds going strong
• Jobs, real estate, matrimonial continue to see traction.
• Linkedin, Naukri and Monster.com have top-recall followed
by TimesJobs.com and Shine.com by HT Media.
• Real Estate websites such as 99acres.com, Magicbricks.com
etc continued to give a push to online real estate industry.
• Matrimonial sites such as Bharatmatrimony.com,
Shaadi.com and Jeevansathi.com continue to reign.
• Trading and wholesale B2B websites such as alibaba.com
continues to lure buyers all over the world.
• Auto trading website also saw a steep rise in 2010 in India.
EBay Motors, Gaadi.com, Carazoo, Zigwheels and
Automartindia are players in this space.
 Alibaba.com
• Alibaba.com is a global leader in e-commerce
for small businesses and the flagship company
of Alibaba Group.
• Founded in 1999 in Hangzhou, China,
Alibaba.com makes it easy for millions of
buyers and suppliers around the world to do
business online.
• Alibaba community consists of more than 56
million registered users in more than 240
countries and regions.
Alibaba.com also offers business management
software and Internet infrastructure services
targeting businesses across world, and provides
educational services to incubate enterprise
management and e-commerce professionals.
 Conclusion
The e-commerce is one of the biggest thing that has
taken the Indian business by storm. It is creating
an entire new economy, which has a huge
potential and is fundamentally changing the way
businesses are done. It has advantages for both
buyers as well as sellers and this win-win situation
is at the core of its phenomenal rise. Though
there are some weak links, with improvements in
technology, they will be ironed out, making the e-
commerce easy, convenient and secure. The e-
commerce is certainly here to stay.