Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo
e-Commerce Market – India
April 2017
Insert Cover Image using Slide Master View
Do not change the aspect ratio or distort the image.
e-Commerce Market in India 2017
Executive Summary
Market Overview
Drivers and
Challenges
Trends
Competitive
Landscape
• Increasing internet access through affordable smartphones and efforts by online retailers to develop effective payment channels such as cash on
delivery and mobile wallets coupled with streamlined logistics infrastructure is expected to drive growth of the e-Commerce market in India
• Notable e-Commerce companies in India are Company A, Company B, Company C
• The e-Commerce market of India was valued at INR X bn in 2016 and is expected to reach a value of INR Y bn by 2020 ,growing at a CAGR of ~A% from
2016
Drivers
• Increasing Internet Penetration
• Increasing Disposable Income and Economic Advancement
• Ease of Transaction
• Third-party Logistics Driving Growth
Challenges
• Effect of Goods and Services Tax Law
• Increasing Spam or False orders
• Losses Incurred for Cash On Delivery
• Customer Loyalty
2
• Trend 1
• Trend 2
Major Players
Company A Company B Company C Company D
Socioeconomic Indicators
Market Overview
Market Influencers
Competitive Landscape
Recent Developments
Appendix
3
Market Opportunity
Market Trends
Investments
e-Commerce Market in India 2017
Socioeconomic Indicators
Total Population
4
Population Density
1,500
1,000
500
0
X%
2020
k
2019
j
2018
i
2017
h
2016
g
2015
f
2014
e
2013
d
2012
c
2011
b
2010
a
0
100
200
300
400
500
2019 2020
k1
Y%
2015
f1
2014
e1
2013
d1
2012
c1
2011
b1
2010
a1
h1
2016
i1
2017
j1
2018
g1
e-Commerce Market in India 2017
Market Overview
5
Market Size & Growth Forecast
0
2,000
4,000
6,000
x4
2018e
x3
2017e
x2
2016
x1
2015
A%
2020e
x5
2019e
x
• Currently, the Indian e-Commerce market is dominated by Segment 1 followed
by Segment 2, Segment 3 and Segment 4
• Factors such as huge presence of internet users coupled with a continual
increase in purchasing power of the Indian population is primarily driving the
growth of the market
• Notable e-Commerce companies in India are Company A, Company B and
Company C
• Cash on delivery is the most preferred payment method used in the
e-Commerce industry
• XXX
Current Market Scenario
E-Commerce Market Split
b
a
d
ec
Segment 2
Segment 4
Segment 3
Others
Segment 1
ec
d
b
a
Others
Segment 4
Segment 3
Segment 2
Segment 1
20162015
e-Commerce Market in India 2017
Market Segmentation
6
Online Travel Market Overview
Market Size & Growth Forecast
a
e
g f
c
d
b
Segment 1
Segment 5
Segment 6
Segment 4
Segment 7
Segment 2
Segment 3
0
500
1,000
1,500
2016
x2
2015
x1x
2020e
A%
2019e
x4
x3
2018e2017e
x5
Online Travel Market Split (2015)
• In 2016, the Indian online travel market was valued at INR X bn and is expected to
reach a value of INR Y bn by 2020 growing at a CAGR of A% from 2016
• The online travel industry accounts for ~A% of the total Indian e-Commerce
industry and around ~B% of the overall travel and tourism sector of India
• Segment 1 accounts for the largest share of the online travel market in India,
• Segment 1 and Segment 2 is among top contributors to the online travel spends
• XXX
e-Commerce Market in India 2017 7
Online Retail Market Overview
Market Size & Growth Forecast
0
1,000
2,000
3,000
4,000
2019e
x4
2018e
x3
2017e
x2
2016
x1
2015 2020e
A%
x5
x
Market Segmentation (Contd.)
Value –Wise Share of E-commerce Retail Market (2016)
eg c
f
d
b
a
Others
Segment 6
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
• Currently, the online retail segment is the fastest growing category in the Indian
e-Commerce market
• The Indian online retail market is driven by factors such as increased penetration
of internet enabled devices, focus on advertising, ease of shopping for customers,
innovative payment options, deals and discounts and the rapidly changing
lifestyle needs
• Eyeing the immense growth opportunity, several players have entered the market
resulting in a very intense competitive landscape
• As of 2016, Segment 1 is the largest segment in e-commerce retail with ~A%
share and is expected to grow at a CAGR of ~B% till 2020
• XXX
e-Commerce Market in India 2017 8
Online Financial Services Market Overview
0
500
1,000
x2
2016
x1
2015
x
2017e 2018e 2020e
x4
x3
2019e
x5
A%
• Advancement in the BFSI sector in India has pushed the usage of digital financial
services in the country
• All financial institutions are now promoting the usage of financial services over
the internet for a better and consolidated management of their operations
• Proliferation of internet and the emergence of secured transaction mechanisms
such as IPv6 complaint gateways will further boost the market
• Oxigen and Paytm are two notable online financial services companies among
others
• Some of the major online financial services provided by players include net
banking, utility bills payment, insurance and other financial services
• Demand for online financial services is expected to witness a major traction in the
days to come, however players operating in the segment should focus on re-
vamping their infrastructure so as to cater to the services demands
• XXX
Market Size & Growth Forecast
Mobile Wallet Player-Wise Segmentation (FY 2015)
g h
f
e
d
c
b
a
Company H
Company G
Company F
Company E
Company D
Company C
Company B
Company A
Market Segmentation (Contd.)
e-Commerce Market in India 2017
Business Models (Contd.)
9
e – Commerce Business Models Description
Model 1
• This is a model where sellers often partner with leading marketplaces to set up a dedicated online store on the latter’s website
• XXX
Model 2
• This is a model where the e-Commerce player owns the inventory
• XXX
Model 3
• This reflects a business where an e-Commerce company sets up its own brand goods, which it sells
through its own website
• XXX
Model 4
• This business model involves the setting up of a branded online store managed by the e-Commerce player or a third party
• XXX
Online Business Models
e-Commerce Market in India 2017
Impact on Social Causes
10
Socio-economic Influence of the Indian e-Commerce Industry
Impact 1
• The condition of artisans engaged in the most respected traditional art forms of the country, is not very encouraging
• However, the current availability of online trading platforms across the country has emerged as a change agent for these artists and is also helping revive many dying Indian art forms
• XXX
Impact 2
• There has been an increase in the use of e-commerce platforms from small towns and rural India in the last couple of years, mainly due to growing smartphone penetration in rural
areas
• XXX
e-Commerce Market in India 2017
Market Opportunity
11
Social Media Domain
• The exponential spurt in the ‘Smart’ handheld devices market is yet another lucrative opportunity for the e-Commerce vendors
• Owing to the massive presence of Smartphones and Tablet PCs, coupled with the advancement in the field of internet connectivity and digital advertising, e-Commerce vendors can
effectively leverage and alleviate the awareness levels by a large extent
• XXX
0
50
100
150
200
250
2015
x1
2016e 2017e 2018e
x3
x2
2019e
x4
x5
x
+15.5%
2020e
Indian Smartphone Market Size and Growth Forecast (Shipment) Wireless Subscriber Base by Technology in India (2015-2020e)
0
200
400
600
800
2020e
b
a
c
c
2019e2018e
a c
b
2017e
b c
a
a
c
b
a
2015
b
2016
c
a
b
2G 3G 4G
e-Commerce Market in India 2017
Market Opportunity (Contd.)
12
Social Media Domain (Contd.)
0
20
40
60
Listen to Music
e
Look for a product information
d
Use a Search Engine
c
Visit a Social Network Site
b
Check E-mail
a
Most Popular Smartphone Activities in India as of Jan 2017
Social Media Usage in India Across Demographics (As of Mar 2016)
f
b
a
e
d
c
A
C
B
F
E
D
Social Network Users in India (2015-2020e)
0
100
200
300
400
2020e
x5
2019e
x4
2018e
x3
2017e
x2
2016
x1
2015
x
e-Commerce Market in India 2017
Market Drivers
13
• Affordable hardware such as laptops, netbooks, desktop PCs and ‘Smart’ handheld devices coupled with the rise in internet adoption is primarily aiding growth of
the Indian e-Commerce market
• With rising smartphone usage and increasing penetration of 4G and 3G network services, the internet user base is rapidly expanding and is expected to reach a
penetration of over X% in 2017, as against ~Y% in 2016 and ~Z% in 2015
• XXX
Increasing Internet Penetration
e-Commerce Market in India 2017
Market Challenges
14
• GST or the Goods and Services Tax law draft was recently released by the Finance Ministry in 2016
• XXX
Effect of Goods and Services Tax Law
• Despite having a host of genuine shoppers, false or spam orders are also a genuine logistical hindrance for e-commerce companies
• The trend has been mainly in the Tier II or Tier III cities of India, where people are motivated with the goods and services they see online, place and order, then
develop cold feet about the order and end up canceling the order
• XXX
Spam or False orders
e-Commerce Market in India 2017
Market Trends
15
Initiatives by Government of India Impacting the e-Commerce Industry
• The Government of India is proactively embracing and leveraging e-Commerce digital platforms to transform and organize traditionally offline markets
• XXX
Initiative
1
• The three key areas that have been identified are Building Digital Infrastructure as a core utility, enabling Government Citizen Services on demand and
Digital Empowerment of citizens
• XXX
Initiative
2
• This program is intended to build a strong eco-system for nurturing “Innovation” and “Exponential Start-ups”
• XXX
Initiative
3
• This program is intended to develop India’s industrial scenario
• XXX
Initiative
4
• To bridge the shortage of skilled manpower, the Government of India has taken an initiative to train 0.40 bn people by 2022, under the new National
Tailored programs will help to train resources for the e-Commerce industry
• XXX
e-Commerce Market in India 2017
Market Trends (Contd.)
16
Evolution of New Payment Solutions
C
D
EF
B A
Method 3
Method 6
Method 5
Method 4
Method 1
Method 2
E-Commerce Payment Methods in India As of Apr 2016
0
2,000
4,000
6,000
8,000
2016 2018e
A%
x
x1
Growth of Digital Payment Services in India
• Cash-on-Delivery (CoD) remains a popular mode of payment which comprises of ~a% of the payment methods used for e-Commerce transactions in India
• Currently EMIs and digital wallets account for less than ~X% of the overall payment methods share but is expected to grow faster than plastic money
• Cash transactions results in high administration costs for the e-Commerce companies which reduces their profit margin levels
 XXX
e-Commerce Market in India 2017
Competition
17
List of Major Players
Name Website
Company A
Company B
Company C
Company D
Company E
Company F
Company G
Company H
Company I
Company J
e-Commerce Market in India 2017 18
Public: Domestic Company – Company A
Company Information
Products and Services
Category Products/Services
Online classifieds
Recruitment, matrimony, real estate and education
platforms
Key People
Name Designation
XXX XXX
Business Description
• Infoedge (India) Ltd. was incorporated in 19-- and is headquartered in State 1,
• The company operates as an online classifieds company in the areas of
recruitment, matrimony, real estate, education, restaurant and food delivery, and
related services in India and internationally
• The company has a network of X offices located in Y cities throughout India, and
has about X number of employees engaged in innovation, product development,
technology updation, research and development, sales, marketing and payment
collection
• XXX
Corporate Address Company A
Tel No. +91-xx-yyyy-zzzz
Fax No. +91-xx-yyyy-zzzz
Website www.xyz.com
Year of Incorporation 19--
Stock Exchange : Ticker XXX
e-Commerce Market in India 2017 19
Public: Domestic Company – Company A (Contd.)
Key RatiosFinancial Snapshot
Key Financial Performance Indicators
Indicators Value (04/04/2017)
Market Capitalization (INR mn) xx
Total Enterprise Value (INR mn) xx
EPS (INR) xx
PE Ratio (Absolute) xx
Particulars 2013 2014 2015 2016
Profitability Ratios
Gross Margin %
Net Income Margin %
EBITDA Margin %
EBITA Margin %
EBIT Margin %
Return on Assets %
Return on Capital %
Return on Equity %
Return on Common Equity %
Liquidity Ratios
Current Ratio
Quick Ratio
Leverage Ratios
Total Debt/Equity
Total Debt/Capital
Interest Coverage
Efficiency Ratios
Total Asset Turnover
Fixed Asset Turnover
Accounts Receivable Turnover
Inventory Turnover
Net Profit / LossTotal Income
y
f0
a
c
c
z
e
x
e d
b
x
d
FY 2016
a
e
FY 2015
b
f
FY 2014
c
g
FY 2012
d
h
e-Commerce Market in India 2017 20
Public: Domestic Company – Company A (Contd.)
Key Business Segments Key Geographic Segments
100%
80%
60%
40%
20%
0%
FY 2016
d
c
b
a
Others
Online Restaurant Discovery
Recruitment Solutions
99acres for Real Estate
0%
50%
100%
FY 2016
b3
a3
FY 2015
b2
a2
FY 2014
b1
a1
FY 2013
b
a
Outside IndiaIndia
e-Commerce Market in India 2017 21
Private: Domestic Company – Company B
Company Information Business Description
• Company B, founded in 2007 and based in State 1, owns and operates an online
shopping portal in India
• The company was formerly known as Company D and changed its name to
Company B in Nov 2012
• The company retails products in various categories, online, such as electronics,
footwear, clothing, watches, accessories, bags, belts and wallets, fragrances and
perfumes, grooming and wellness products, beauty and personal care products,
jewelry, spectacle frames and contact lenses, among others
• XXX
Products and Services
Category Products/Services
Online Shopping
Books, movies, music, games, consoles, gaming accessories,
mobiles, mobile accessories, cameras, camera accessories,
computers, computer accessories, network components,
software, peripherals, home and kitchen appliances, TV and
video products, personal and health care products
Key People
Name Designation
XX XX
Corporate Address Company B
Tel No. +91-xx-yyyy-zzzz
Fax No. +91-xx-yyyy-zzzz
Website www.xyz.com
Year of Incorporation 20--
e-Commerce Market in India 2017 22
Private: Domestic Company – Company B (Contd.)
• Motorola Mobility, currently owned by Lenovo, in an exclusive tie up with Company B launched its budget smartphone Moto G in India on Feb 2014
• The sale of high-end smartphone Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an exclusive tie-up with Company B
• As of 2016, Company A had X mn registered users in India, Y mn registered sellers and Z mn daily page visits by customers
• XXX
Business Description (contd.)
Acquisitions Year
Company A Dec 20--
Company B Oct 20--
Company C Nov 20--
Company D Feb 20--
Company E May 20--
Company F Mar 20--
Company G Apr 20--
Company H Sep 20--
Company I Apr 20--
0
5,000
10,000
15,000
20,000
FY 2015
x1
FY 2016
+152.7%
x
Revenue Growth
e-Commerce Market in India 2017
Investments
23
e – Commerce Funding Overview (2016)
Company Funding (INR mn) Company Founders Investors
Company A XX
Parikshit Dar, Rajesh Balpande,
Ashish Hemrajani
Network 18, xxx
Company B XX Dhruv Kapoor, Ankiti Bose Sandeep Tandon, xxx
Company C XX Peyush Bansal, Amit Chaudhary Ratan Tata, Kris Gopalakrishnan, xxx
Company D XX Ambareesh Murty, Ashish Shah Norwest Venture Partners, xxx
Company E XX Rohit Bansal, Kunal Bahl Ratan Tata, Intel Capital, xxx
e-Commerce Market in India 2017
Recent Developments
24
Date Category Description Impact
Apr 08, 2017 Expansion
• Flipkart announced plans to re enter the online grocery segment that accounts for a
significant portion of India’s retail industry
Medium
Apr 07, 2017 Others • XXX Medium
Apr 06, 2017 Expansion • XXX High
Mar 27, 2017 Collaborations & Partnerships • XXX High
Mar 18, 2017 Others • XXX Medium
Mar 16, 2017 Expansion • XXX High
About Netscribes, Inc.
Netscribes, Inc. 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, Inc. 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 in the preparation, “Netscribes” is not responsible for any loss or damage
arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.
Thank you for your attention
Phone: +91 33 4027 6243/6222; +91 33 4027 6200/6207; +91 22 4098 7600
E-Mail: support@researchonindia.com
e-Commerce Market – India report is part of Netscribes’ Internet and e-Commerce Industry Series.
For any queries or customized research requirements, contact us at:
Research on India is a product of Netscribes (India) Pvt. Ltd. It is dedicated to disseminating information and providing quick insights on “hot”
industries in India and other emerging markets.
25

More Related Content

E commerce market in india 2017- Sample

  • 1. e-Commerce Market – India April 2017 Insert Cover Image using Slide Master View Do not change the aspect ratio or distort the image.
  • 2. e-Commerce Market in India 2017 Executive Summary Market Overview Drivers and Challenges Trends Competitive Landscape • Increasing internet access through affordable smartphones and efforts by online retailers to develop effective payment channels such as cash on delivery and mobile wallets coupled with streamlined logistics infrastructure is expected to drive growth of the e-Commerce market in India • Notable e-Commerce companies in India are Company A, Company B, Company C • The e-Commerce market of India was valued at INR X bn in 2016 and is expected to reach a value of INR Y bn by 2020 ,growing at a CAGR of ~A% from 2016 Drivers • Increasing Internet Penetration • Increasing Disposable Income and Economic Advancement • Ease of Transaction • Third-party Logistics Driving Growth Challenges • Effect of Goods and Services Tax Law • Increasing Spam or False orders • Losses Incurred for Cash On Delivery • Customer Loyalty 2 • Trend 1 • Trend 2 Major Players Company A Company B Company C Company D
  • 3. Socioeconomic Indicators Market Overview Market Influencers Competitive Landscape Recent Developments Appendix 3 Market Opportunity Market Trends Investments
  • 4. e-Commerce Market in India 2017 Socioeconomic Indicators Total Population 4 Population Density 1,500 1,000 500 0 X% 2020 k 2019 j 2018 i 2017 h 2016 g 2015 f 2014 e 2013 d 2012 c 2011 b 2010 a 0 100 200 300 400 500 2019 2020 k1 Y% 2015 f1 2014 e1 2013 d1 2012 c1 2011 b1 2010 a1 h1 2016 i1 2017 j1 2018 g1
  • 5. e-Commerce Market in India 2017 Market Overview 5 Market Size & Growth Forecast 0 2,000 4,000 6,000 x4 2018e x3 2017e x2 2016 x1 2015 A% 2020e x5 2019e x • Currently, the Indian e-Commerce market is dominated by Segment 1 followed by Segment 2, Segment 3 and Segment 4 • Factors such as huge presence of internet users coupled with a continual increase in purchasing power of the Indian population is primarily driving the growth of the market • Notable e-Commerce companies in India are Company A, Company B and Company C • Cash on delivery is the most preferred payment method used in the e-Commerce industry • XXX Current Market Scenario E-Commerce Market Split b a d ec Segment 2 Segment 4 Segment 3 Others Segment 1 ec d b a Others Segment 4 Segment 3 Segment 2 Segment 1 20162015
  • 6. e-Commerce Market in India 2017 Market Segmentation 6 Online Travel Market Overview Market Size & Growth Forecast a e g f c d b Segment 1 Segment 5 Segment 6 Segment 4 Segment 7 Segment 2 Segment 3 0 500 1,000 1,500 2016 x2 2015 x1x 2020e A% 2019e x4 x3 2018e2017e x5 Online Travel Market Split (2015) • In 2016, the Indian online travel market was valued at INR X bn and is expected to reach a value of INR Y bn by 2020 growing at a CAGR of A% from 2016 • The online travel industry accounts for ~A% of the total Indian e-Commerce industry and around ~B% of the overall travel and tourism sector of India • Segment 1 accounts for the largest share of the online travel market in India, • Segment 1 and Segment 2 is among top contributors to the online travel spends • XXX
  • 7. e-Commerce Market in India 2017 7 Online Retail Market Overview Market Size & Growth Forecast 0 1,000 2,000 3,000 4,000 2019e x4 2018e x3 2017e x2 2016 x1 2015 2020e A% x5 x Market Segmentation (Contd.) Value –Wise Share of E-commerce Retail Market (2016) eg c f d b a Others Segment 6 Segment 5 Segment 4 Segment 3 Segment 2 Segment 1 • Currently, the online retail segment is the fastest growing category in the Indian e-Commerce market • The Indian online retail market is driven by factors such as increased penetration of internet enabled devices, focus on advertising, ease of shopping for customers, innovative payment options, deals and discounts and the rapidly changing lifestyle needs • Eyeing the immense growth opportunity, several players have entered the market resulting in a very intense competitive landscape • As of 2016, Segment 1 is the largest segment in e-commerce retail with ~A% share and is expected to grow at a CAGR of ~B% till 2020 • XXX
  • 8. e-Commerce Market in India 2017 8 Online Financial Services Market Overview 0 500 1,000 x2 2016 x1 2015 x 2017e 2018e 2020e x4 x3 2019e x5 A% • Advancement in the BFSI sector in India has pushed the usage of digital financial services in the country • All financial institutions are now promoting the usage of financial services over the internet for a better and consolidated management of their operations • Proliferation of internet and the emergence of secured transaction mechanisms such as IPv6 complaint gateways will further boost the market • Oxigen and Paytm are two notable online financial services companies among others • Some of the major online financial services provided by players include net banking, utility bills payment, insurance and other financial services • Demand for online financial services is expected to witness a major traction in the days to come, however players operating in the segment should focus on re- vamping their infrastructure so as to cater to the services demands • XXX Market Size & Growth Forecast Mobile Wallet Player-Wise Segmentation (FY 2015) g h f e d c b a Company H Company G Company F Company E Company D Company C Company B Company A Market Segmentation (Contd.)
  • 9. e-Commerce Market in India 2017 Business Models (Contd.) 9 e – Commerce Business Models Description Model 1 • This is a model where sellers often partner with leading marketplaces to set up a dedicated online store on the latter’s website • XXX Model 2 • This is a model where the e-Commerce player owns the inventory • XXX Model 3 • This reflects a business where an e-Commerce company sets up its own brand goods, which it sells through its own website • XXX Model 4 • This business model involves the setting up of a branded online store managed by the e-Commerce player or a third party • XXX Online Business Models
  • 10. e-Commerce Market in India 2017 Impact on Social Causes 10 Socio-economic Influence of the Indian e-Commerce Industry Impact 1 • The condition of artisans engaged in the most respected traditional art forms of the country, is not very encouraging • However, the current availability of online trading platforms across the country has emerged as a change agent for these artists and is also helping revive many dying Indian art forms • XXX Impact 2 • There has been an increase in the use of e-commerce platforms from small towns and rural India in the last couple of years, mainly due to growing smartphone penetration in rural areas • XXX
  • 11. e-Commerce Market in India 2017 Market Opportunity 11 Social Media Domain • The exponential spurt in the ‘Smart’ handheld devices market is yet another lucrative opportunity for the e-Commerce vendors • Owing to the massive presence of Smartphones and Tablet PCs, coupled with the advancement in the field of internet connectivity and digital advertising, e-Commerce vendors can effectively leverage and alleviate the awareness levels by a large extent • XXX 0 50 100 150 200 250 2015 x1 2016e 2017e 2018e x3 x2 2019e x4 x5 x +15.5% 2020e Indian Smartphone Market Size and Growth Forecast (Shipment) Wireless Subscriber Base by Technology in India (2015-2020e) 0 200 400 600 800 2020e b a c c 2019e2018e a c b 2017e b c a a c b a 2015 b 2016 c a b 2G 3G 4G
  • 12. e-Commerce Market in India 2017 Market Opportunity (Contd.) 12 Social Media Domain (Contd.) 0 20 40 60 Listen to Music e Look for a product information d Use a Search Engine c Visit a Social Network Site b Check E-mail a Most Popular Smartphone Activities in India as of Jan 2017 Social Media Usage in India Across Demographics (As of Mar 2016) f b a e d c A C B F E D Social Network Users in India (2015-2020e) 0 100 200 300 400 2020e x5 2019e x4 2018e x3 2017e x2 2016 x1 2015 x
  • 13. e-Commerce Market in India 2017 Market Drivers 13 • Affordable hardware such as laptops, netbooks, desktop PCs and ‘Smart’ handheld devices coupled with the rise in internet adoption is primarily aiding growth of the Indian e-Commerce market • With rising smartphone usage and increasing penetration of 4G and 3G network services, the internet user base is rapidly expanding and is expected to reach a penetration of over X% in 2017, as against ~Y% in 2016 and ~Z% in 2015 • XXX Increasing Internet Penetration
  • 14. e-Commerce Market in India 2017 Market Challenges 14 • GST or the Goods and Services Tax law draft was recently released by the Finance Ministry in 2016 • XXX Effect of Goods and Services Tax Law • Despite having a host of genuine shoppers, false or spam orders are also a genuine logistical hindrance for e-commerce companies • The trend has been mainly in the Tier II or Tier III cities of India, where people are motivated with the goods and services they see online, place and order, then develop cold feet about the order and end up canceling the order • XXX Spam or False orders
  • 15. e-Commerce Market in India 2017 Market Trends 15 Initiatives by Government of India Impacting the e-Commerce Industry • The Government of India is proactively embracing and leveraging e-Commerce digital platforms to transform and organize traditionally offline markets • XXX Initiative 1 • The three key areas that have been identified are Building Digital Infrastructure as a core utility, enabling Government Citizen Services on demand and Digital Empowerment of citizens • XXX Initiative 2 • This program is intended to build a strong eco-system for nurturing “Innovation” and “Exponential Start-ups” • XXX Initiative 3 • This program is intended to develop India’s industrial scenario • XXX Initiative 4 • To bridge the shortage of skilled manpower, the Government of India has taken an initiative to train 0.40 bn people by 2022, under the new National Tailored programs will help to train resources for the e-Commerce industry • XXX
  • 16. e-Commerce Market in India 2017 Market Trends (Contd.) 16 Evolution of New Payment Solutions C D EF B A Method 3 Method 6 Method 5 Method 4 Method 1 Method 2 E-Commerce Payment Methods in India As of Apr 2016 0 2,000 4,000 6,000 8,000 2016 2018e A% x x1 Growth of Digital Payment Services in India • Cash-on-Delivery (CoD) remains a popular mode of payment which comprises of ~a% of the payment methods used for e-Commerce transactions in India • Currently EMIs and digital wallets account for less than ~X% of the overall payment methods share but is expected to grow faster than plastic money • Cash transactions results in high administration costs for the e-Commerce companies which reduces their profit margin levels  XXX
  • 17. e-Commerce Market in India 2017 Competition 17 List of Major Players Name Website Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J
  • 18. e-Commerce Market in India 2017 18 Public: Domestic Company – Company A Company Information Products and Services Category Products/Services Online classifieds Recruitment, matrimony, real estate and education platforms Key People Name Designation XXX XXX Business Description • Infoedge (India) Ltd. was incorporated in 19-- and is headquartered in State 1, • The company operates as an online classifieds company in the areas of recruitment, matrimony, real estate, education, restaurant and food delivery, and related services in India and internationally • The company has a network of X offices located in Y cities throughout India, and has about X number of employees engaged in innovation, product development, technology updation, research and development, sales, marketing and payment collection • XXX Corporate Address Company A Tel No. +91-xx-yyyy-zzzz Fax No. +91-xx-yyyy-zzzz Website www.xyz.com Year of Incorporation 19-- Stock Exchange : Ticker XXX
  • 19. e-Commerce Market in India 2017 19 Public: Domestic Company – Company A (Contd.) Key RatiosFinancial Snapshot Key Financial Performance Indicators Indicators Value (04/04/2017) Market Capitalization (INR mn) xx Total Enterprise Value (INR mn) xx EPS (INR) xx PE Ratio (Absolute) xx Particulars 2013 2014 2015 2016 Profitability Ratios Gross Margin % Net Income Margin % EBITDA Margin % EBITA Margin % EBIT Margin % Return on Assets % Return on Capital % Return on Equity % Return on Common Equity % Liquidity Ratios Current Ratio Quick Ratio Leverage Ratios Total Debt/Equity Total Debt/Capital Interest Coverage Efficiency Ratios Total Asset Turnover Fixed Asset Turnover Accounts Receivable Turnover Inventory Turnover Net Profit / LossTotal Income y f0 a c c z e x e d b x d FY 2016 a e FY 2015 b f FY 2014 c g FY 2012 d h
  • 20. e-Commerce Market in India 2017 20 Public: Domestic Company – Company A (Contd.) Key Business Segments Key Geographic Segments 100% 80% 60% 40% 20% 0% FY 2016 d c b a Others Online Restaurant Discovery Recruitment Solutions 99acres for Real Estate 0% 50% 100% FY 2016 b3 a3 FY 2015 b2 a2 FY 2014 b1 a1 FY 2013 b a Outside IndiaIndia
  • 21. e-Commerce Market in India 2017 21 Private: Domestic Company – Company B Company Information Business Description • Company B, founded in 2007 and based in State 1, owns and operates an online shopping portal in India • The company was formerly known as Company D and changed its name to Company B in Nov 2012 • The company retails products in various categories, online, such as electronics, footwear, clothing, watches, accessories, bags, belts and wallets, fragrances and perfumes, grooming and wellness products, beauty and personal care products, jewelry, spectacle frames and contact lenses, among others • XXX Products and Services Category Products/Services Online Shopping Books, movies, music, games, consoles, gaming accessories, mobiles, mobile accessories, cameras, camera accessories, computers, computer accessories, network components, software, peripherals, home and kitchen appliances, TV and video products, personal and health care products Key People Name Designation XX XX Corporate Address Company B Tel No. +91-xx-yyyy-zzzz Fax No. +91-xx-yyyy-zzzz Website www.xyz.com Year of Incorporation 20--
  • 22. e-Commerce Market in India 2017 22 Private: Domestic Company – Company B (Contd.) • Motorola Mobility, currently owned by Lenovo, in an exclusive tie up with Company B launched its budget smartphone Moto G in India on Feb 2014 • The sale of high-end smartphone Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an exclusive tie-up with Company B • As of 2016, Company A had X mn registered users in India, Y mn registered sellers and Z mn daily page visits by customers • XXX Business Description (contd.) Acquisitions Year Company A Dec 20-- Company B Oct 20-- Company C Nov 20-- Company D Feb 20-- Company E May 20-- Company F Mar 20-- Company G Apr 20-- Company H Sep 20-- Company I Apr 20-- 0 5,000 10,000 15,000 20,000 FY 2015 x1 FY 2016 +152.7% x Revenue Growth
  • 23. e-Commerce Market in India 2017 Investments 23 e – Commerce Funding Overview (2016) Company Funding (INR mn) Company Founders Investors Company A XX Parikshit Dar, Rajesh Balpande, Ashish Hemrajani Network 18, xxx Company B XX Dhruv Kapoor, Ankiti Bose Sandeep Tandon, xxx Company C XX Peyush Bansal, Amit Chaudhary Ratan Tata, Kris Gopalakrishnan, xxx Company D XX Ambareesh Murty, Ashish Shah Norwest Venture Partners, xxx Company E XX Rohit Bansal, Kunal Bahl Ratan Tata, Intel Capital, xxx
  • 24. e-Commerce Market in India 2017 Recent Developments 24 Date Category Description Impact Apr 08, 2017 Expansion • Flipkart announced plans to re enter the online grocery segment that accounts for a significant portion of India’s retail industry Medium Apr 07, 2017 Others • XXX Medium Apr 06, 2017 Expansion • XXX High Mar 27, 2017 Collaborations & Partnerships • XXX High Mar 18, 2017 Others • XXX Medium Mar 16, 2017 Expansion • XXX High
  • 25. About Netscribes, Inc. Netscribes, Inc. 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, Inc. 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 in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. Thank you for your attention Phone: +91 33 4027 6243/6222; +91 33 4027 6200/6207; +91 22 4098 7600 E-Mail: support@researchonindia.com e-Commerce Market – India report is part of Netscribes’ Internet and e-Commerce Industry Series. For any queries or customized research requirements, contact us at: Research on India is a product of Netscribes (India) Pvt. Ltd. It is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. 25