e-Commerce India 2011 - Sample

Document Sample
e-Commerce India 2011 - Sample Powered By Docstoc
					e-Commerce Market – India
November 2011
Executive Summary
              e-Commerce market in India is witnessing an exponential growth rate over the years and with
              the emergence of better marketing techniques, this market is expected to grow by leaps and
              The e-Commerce market in 20-- was valued at INR a tr and is expected to grow at a CAGR of x%
  Market      to reach INR b tr by 20--
              The market space can be segregated into multiple segments such as online retail, online travel,
              online financial services, online digital and online other services
              Having a combined market share of more than y%, online travel and retail players mainly
              dominate the market space

                   Increased Spending Power
                   Extensive Usage of Plastic Money
                                                                              Secure Payment Concern
  Drivers &
 Challenges        Users

                   Increasing Internet Penetration and PC

                   Ease of Transaction
                   Government Initiative
                                                                              Lack of Confidence

              Purchase Decisions are Brand Oriented
  Trends      Social Media Involvement
              Increasing BPO Tie Ups

                                                  Major e-Commerce Vendors
Competition    Player 1                Player 2                    Player 3                 Player 4
               Player 5                Player 6                    Player 7                 Player 8

                                    E-COMMERCE MARKET INDIA 2011.PPT                                            2
•Market Overview
•e-Commerce Market Segments
•e-Commerce Ecosystem
•Types of e-Commerce
•Technology used in e-Commerce
•Drivers and Challenges
•Demand and Supply Perspective
•PE Investments
•Major Players
•Strategic Recommendation

          E-COMMERCE MARKET INDIA 2011.PPT   3
An example of e-Commerce system work model

     Regional Logistics Support                Regional Warehouse                      Logistics Support

                           Internet Enabled Devices


                                         SAM              e-Commerce


                                                          Financial Service Provider

                                           E-COMMERCE MARKET INDIA 2011.PPT                                            4
An illustration of the transaction flow within an
e-Commerce system

Consumer Bank Account

                                               PLE                                                             Vendor Bank Account

                    Transaction via credit/debit cards


                   Authorization                           Third Party

                        Notification                                                            Notification

      Consumer                                                  Product                                              Vendor

                               Product Delivery                                      Logistics Support

                                                  E-COMMERCE MARKET INDIA 2011.PPT                                                   5
 Presence of extremely affordable and desirable
 e-Commerce options is driving the market in India
 e-Commerce Market – India Overview
 • Indian e-Commerce market is currently undergoing through a phase where it is experiencing a strong growth rate
        Factors such as increased disposable income coupled with a surge in internet penetration is primarily driving growth in the market
 • Market size of e-Commerce is estimated to grow at a dynamic growth rate of x% to reach INR a tr in 20-- from INR b tr
   in 20--
 • The market can be broadly classified into several segments which include ‘Online Travel’, ‘Financial Services’, ‘Digital
   Downloads’, ‘e-Retailing’ and ‘ Other Services ‘

 • Players in the market are following several strategic moves to lure and attract customers, some of which are enlisted
   as below:

        Easy availability of EMI schemes and lucrative offers on e-Commerce, provided by players in the market happen to be a major source of
        attraction for customers

        Often customers are offered a scheme of earning loyalty points which can be redeemed to claim discounts on commodities or services
        availed online

 • Increasing tendency to save time and energy, especially amongst the working population will further intensify the e-
   Commerce market by a large extent
 e-Commerce Market Growth - India                                          e-Commerce Market Share (2010)
  INR tr
                                                      f                                                            Segment 1
  b                            xyz
                                             e                                                                     Segment 2
                                     d                                                                             Segment 3
  a               b        c
            a                                                                                                      Segment 4
  0                                                                                                                Segment 5
        2010    2011e   2012e    2013e    2014e    2015e
Source: x

                                                          E-COMMERCE MARKET INDIA 2011.PPT                                                   6
 e-Commerce Segments (x/x)

 e-Commerce – Segment 1
 • Online travel segment enjoys a lions share of a% of the overall e-Commerce market in India and is flourishing at an
   unprecedented growth rate

        Market size of Online travel registered a growth rate of b% in 20-- to reach a whooping market size of INR abc bn as compared to INR

        def bn in 20--
 • Aspects such as the proliferation of internet, increased medical tourism, higher disposable income, availability of low
   cost carriers mainly catalyze the market
 • Major trends identified are listed below:

        Railway booking is the most popular amongst all categories

        Religious and pilgrimage traveling is growing exponentially
        Frequent use of search tools for gathering ticket availability and price related information
 • Major three sub segments of the online travel industry has been illustrated below:


              Subsegment 1                                        Subsegment 2                                    Subsegment 3

                    xxx                                                  yyy                                             zzz

Source: x

                                                          E-COMMERCE MARKET INDIA 2011.PPT                                                     7
 An example of e-Commerce ecosystem

  Ecosystem       Internet          Application                                     e-Commerce
               Infrastructure      Infrastructure                                    Companies

 Description         aaa

                                SAM      bbb                            ccc             ddd

                     eee                  fff                           ggg             hhh

 Examples of
                    www                   xxx                           yyy             zzz

Source: x

                                E-COMMERCE MARKET INDIA 2011.PPT                                 8
 e-Commerce in India has diversified immensely wherein
 various methods of transaction has evolved
 •Currently, there are several types of e-Commerce methods prevailing which has witnessed tremendous
  acceptance amongst customers and sellers
 •A list of e-Commerce types and their relevant vendors are mentioned below:


            B2B                                      B2C                                   B2E

 • xxx                                   • xxx                                     • xxx

                           C2B         SA                                    C2C

                   • xxx                                             • xxx

Source: x

                                        E-COMMERCE MARKET INDIA 2011.PPT                               9
 e-Commerce website development is carried out in phases
 so as to ensure proper and efficient functioning

 e-Commerce – Website Development Phases

      Developing an e-Commerce website is a step by step approach, consisting of various phases, so as to

                          ensure proper and efficient transaction over the internet

                       •Aaa                                                     • Bbb
            Research   •Sss                                       Development   • Ccc
                       •Ttt                                                     • Yyy

                       • Ddd                                         Website    • Ggg
            Planning   • Eee                                                    • Hhh
                       • Zzz                                         Launch     • Lll

                       • Mmm
             Design    • Nnn
                       • Ooo

Source: x

                                           E-COMMERCE MARKET INDIA 2011.PPT                                 10
Drivers & Challenges – Summary


  Increased Spending Power

  Extensive Usage of Plastic Money                                   Secure Payment Concern

  Increasing Internet Penetration and PC
                                                                     Lack of Confidence

  Ease of Transaction

  Government Initiative

                                           E-COMMERCE MARKET INDIA 2011.PPT                   11
 A comparison between the supply and demand side of e-
 Commerce system

            e-Commerce Vendors
                                             PLE                                      e-Commerce Users
                (Supply Side)

                                          SAM                                           (Demand Side)

                                                                                     Consumer Objectives
                                                 e-Commerce                  • Round the clock availability of products
                                                    Space                      / services
 • Generate higher revenues
                                                                             • Hassle free product / services
 • Utilize existing resources
 • Offer enhanced customer satisfaction
                                                                             • Reduced time requirement
 • Maintain healthy brand image
                                                                             • Nullification of Fuel and transportation
 • Provide full fledged virtual store
   facilities to consumers
                                                                             • Benefits from loyalty programs offered
                                                                               by vendors
 • xxx
                                                                             • yyy

Source: x

                                          E-COMMERCE MARKET INDIA 2011.PPT                                           12
 Online purchase decisions are mostly brand oriented and is
 mainly influenced according to the area of living
 • Indian e-Commerce market is witnessing some phenomenal                                      Top 10 Cities involved in e-Commerce
   trends, which reflects the shopping pattern of consumers
 • These trends can listed as:                                                  Rank               Name              Rank              Name
     • States including Maharashtra, Delhi, Tamil Nadu, Karnataka
       and Andhra Pradesh happen to be most acquainted with e-                    1                City 1              6               City 6
     • Metros, tier II and III cities and rural areas accounts for x%,            2                City 2              7               City 7
       y% and z% of the overall market
     • Purchase patterns are purely brand driven                                  3                City 3              8               City 8
     • Jewellery & Accessory segment witnessed a continual
       increase in the number of women shoppers                                   4                City 4              9               City 9
     • Majority of products purchased belonged to the electronic
       goods while lifestyle products accounted for a%
                                                                                  5                City 5             10              City 10

                        AAA & BBB – Products                                            Brand Preferences – Across Categories
                AAA                                   BBB
  Cell Phones      Blu -ray DVDs          Pendants          Lamp work             a                  b                 c                d
    Stamps          Men’s shoes        Wrist Watches          Items
                                      Commonwealth                                e                  f                g                 h
    Watches           Netbooks           Stamps             PC Games
   Diamonds       Digital Cameras      Medical Items          DVDs                                            H happens to be the only Indian
                                                                                  h                         brand to find substantial popularity
                       Laptop             Sarees &           Mineral                                              in e-Commerce market
  Sunglasses          Batteries           Apparels          Specimens
Source: x

                                                            E-COMMERCE MARKET INDIA 2011.PPT                                                       13
 PE investments in the e-Commerce market is witnessing a
 major growth over the past years
                             Overview                                               PE Investments – Online Ventures
  • Owing to the lucrative aspects in the e-Commerce
    market in India, it is attracting major domestic and                       INR bn

    international PE funds                                                     c
        The market received a total of xxx investments in FY 11 as                                         xyz        c

        compared to yyy in FY 10
  • PE investments made in the recent years has facilitated

    modernization and betterment of services by a large                        a

  • Primarily, only the online retail players benefited from
    the investments


                                 Recent investments in the Indian e-Commerce market (2009 -2010)
                                                                                                20--                20-- e

              Investor                Amount (INR bn)           No. of Deals                    Some Key Targeted Companies
 Investor 1                                   xxx                    y          Abc, def, ghi

 Investor 2                                   xxx                    y          Ijk, klm, npo

 Investor 3                                   xxx                    y          Qrs, tuv, wxy

 Investor 4                                   xxx                    y          Abc, def

 Investor 5                                   xxx                    y          Ghi, jkl

 Investor 6                                   xxx                    y          Abc, def
Source: x

                                                        E-COMMERCE MARKET INDIA 2011.PPT                                      14
 Major e-Commerce Players (1/8)
                                  SAMPLE                Online Retail Players
      Company Name                    Company Snapshot                                           Business Description
            Player 1   Headquarter:                 x                           • Possess the license for online portal abcxyz
                                                                                     Offers foot wears, apparel, bags and accessories, jewellery,
                       Parent Company:              x                                sunglasses, winter wears and sports apparels
                                                                                • Caters to the need of individuals as well as retailers
                       Industry Classification:     x
                                                                                     Currently, serves to about 3000 retailers across India
                       Website:                     x                           • In July, the company has received a fund worth INR
                                                                                  xyz mn, from abc and def in its second round of
                       Phone:                       x                             funding
                                                                                     The company had earlier announced in Dec 2010, to have
                       Key Person:                  x                                received an investment of INR asd mn, from xxx

            Player 2   Headquarter:                 x                           • Primarily operates as an online e-commerce portal
                                                                                  wherein it offers lucrative deals for individuals,
                       Parent Company:              x                             specific to an individual’s location of interest
                                                                                • Its areas of operation comprise of Bangalore,
                       Industry Classification:     x                             Chennai, Delhi, Hyderabad, Kolkata, Mumbai and
                       Website:                     x                           • Till Jun 2010, the company was known as abc
                                                                                • Currently, the company is anticipated to be valued at
                       Phone:                       x
                                                                                  INR xxx mn and is expected to receive investments
                       Key Person:                  x                             from international investors
                                                                                     More than a% of the share in the company is withheld by
                                                                                     the European firm ABC, while the remaining shares are
                                                                                     segregated amongst xyz, yyy and zzz

Source: x

                                                  E-COMMERCE MARKET INDIA 2011.PPT                                                             15
Strategic Recommendations


             • aaa

   BBB       • bbb
   CCC       • ccc

                     E-COMMERCE MARKET INDIA 2011.PPT   16
                          Thank you for the attention
The e-Commerce Market – India report is a part of Research on India’s Information
Technology Series. For more detailed information or customized research requirements
please contact:
Kalyan Banga                                      Our other offerings in the IT Series:
                                                                                              •Security Software Market in India 2011
Phone:            +91 33 4064 6215                                                            •CRM Market in India 2011
E-Mail:                                                  •ERP Market in India 2011
                                                                                              •Enterprise Mobility Market in India 2011
Gagan Uppal                                                                                   •Tablet PC market in India 2011
Phone:            +91 22 4098 7530                                                            •Cloud Computing Market in India 2011
E-Mail:                                                   •ICT Adoption in Education Sector in India
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business &
corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base.
Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd.
or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior
permission is required for guidelines on reproduction.

                                                                  E-COMMERCE MARKET INDIA 2011.PPT                                                                       17