Broadband Internet 3G 4G Smartphone Standards of Living Long Tail Direct Imports Disintermediation

India's e-commerce market [8] was worth about $3.8 billion in 2009, it went up to $12.6 billion in 2013.
In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is
travel related.[9] According to Google India, there were 35 million online shoppers in India in 2014 Q1
and is expected to cross 100 million mark by end of year 2016. [10] CAGR vis-à-vis a global growth
rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
Key drivers in Indian e-commerce are:
 Large percentage of population subscribed to broadband Internet,[11] burgeoning 3G internet

users, and a recent introduction of 4G in few cities.[12][13]
 Explosive growth of Smartphone users, soon to be world's second largest smartphone
userbase.[14]
 Rising standards of living as result of fast decline in poverty rate.
 Availability of much wider product range (including long tail and Direct Imports) compared to
what is available at brick and mortar retailers.
 Competitive prices compared to brick and mortar retail driven by disintermediation and
reduced inventory and real estate costs.
 Increased usage of online classified sites, with more consumer buying and selling second-
hand goods
 Evolution of Million-Dollar startups
like Jabong.com, Saavn, Makemytrip, Bookmyshow, Zomato Etc.
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016
and $850 Bn by 2020, – estimated CAGR of 7%..[citation needed] According to Forrester, the e-commerce
market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57%
between 2012–16.[15]
As per "India Goes Digital", [16] a report by Avendus Capital, a leading Indian Investment Bank
specializing in digital media and technology sector, the Indian e-commerce market is estimated at Rs
28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this
market today. Online travel market in India is expected to grow at a rate of 22% over the next 4
years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated
at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in
2015.
Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year
2015 with both online travel and e-tailing contributing equally. Another big segment in e-commerce is
mobile/DTH recharge with nearly 1 million transactions daily by operator websites. [citation needed]
Though the sector has witnessed tremendous growth and is expected to grow, a lot of e-commerce
ventures have faced tremendous pressure to ensure cash flows. But it has not worked out for all the
e-commerce websites. Many of them like Dhingana, Rock.in, Seventy MM amongst others had to
close down [17] or change their business models to survive.[18]
Infrastructure]
There are many hosting companies working in India but mos of them are not suitable for
eCommerce hosting purpose, because they are providing much less secure and threat protected
shared hosting. eCommerce demand highly secure, stable and protected hosting. [ Cyber security
issues of e-commerce business in India would be required to be managed by Indian e-commerce
stakeholders in the near future.[19] In fact, Indian government is planning to introduce cyber security
breach disclosure norms in India very soon.[20] Recently Target corporation suffered a cyber attack
that has put it under litigation threat in multiple jurisdictions. Trends are changing with some of
eCommerce companies starting to offer SaaS for hosting webstores with minimal one time costs.
There could be various methods of ecommerce marketing such as blog, forums, search engines and
some online advertising sites like Google adwords and Adroll.
India has got its own version Cyber Monday known as Great Online Shopping Festival which started
in December 2012, when Google India partnered with e-commerce companies
including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber Monday" is
a term coined in the USA for the Monday coming after Black Friday, which is the Friday
after Thanksgiving Day.[22] Most recent GOSF Great Online Shopping Festival was held during Dec
10 to 12, 2014.
In early June 2013, Amazon.com launched their Amazon India marketplace without any marketing
campaigns.In July, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India to expand
business, after its largest Indian rival Flipkart announced $1 billion in funding. [23] Amazon has also
entered grocery segment with its Kirana now in bangalore and is also planning to enter in various
other cities like delhi Mumbai and chennai and faces stiff competition with Indian Startups like
onedaycart.com, bazaarcart, bigbasket etc.Flipkart is also planning to enter grocery segment soon.
[citation needed]
Funding
As of 2012, most of the e-commerce companies are yet to start making money. However, due to
their growth prospects, many venture capital firms such as Accel Partners have invested
considerably. In one of the biggest fund raising, Flipkart.com, till November 2014, has raised about
USD 2.3 billion.[24] Entertainment ticketing website BookMyShow.comraised ₹100 crores investment
by Accel Partners.[25]
On 10 July 2013, Flipkart announced it had received $200 million from existing investors Tiger
Global, Naspers, Accel Partners, and ICONIQ Capital. New investors making up the additional $160
million include Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina, Vulcan
Inc. and more from Tiger Global.[26]
Snapdeal - USD 50 million in 13 April.
In February 2014, online fashion retailer Myntra.com raised $50 million from a group of investors led
by Premji Invest, the investment company floated by Azim Premji, Chairman of Wipro. May 2014
also witnessed an acquisition of Myntra by Flipkart reportedly for ₹2,000 crores.[27] However, cyber
law [28] and e-commerce due diligence are still being ignored by investors and financial institutions
while investing in India.[29]
In October 2014, KartRocket, an Indian e-commerce platform, announced granting of a Series A

round led by technology investor Nirvana Venture Advisors and 500 Startups, together with Tokyo-
based Beenos, previously known as Netprice.com. [30]

Broadband Internet 3G 4G Smartphone Standards of Living Long Tail Direct Imports Disintermediation

Uploaded by

Copyright:

Available Formats

Broadband Internet 3G 4G Smartphone Standards of Living Long Tail Direct Imports Disintermediation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Broadband Internet 3G 4G Smartphone Standards of Living Long Tail Direct Imports Disintermediation

Uploaded by

Copyright:

Available Formats

India's e-commerce market [8] was worth about $3.8 billion in 2009, it went up to $12.6 billion in 2013.

Key drivers in Indian e-commerce are:

 Large percentage of population subscribed to broadband Internet,[11] burgeoning 3G internet

Snapdeal - USD 50 million in 13 April.

In October 2014, KartRocket, an Indian e-commerce platform, announced granting of a Series A

You might also like