e-commerce challenges & opportunities - a seminar presentation
TRANSCRIPT
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Global E-Commerce
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Challengesfor Ecommerce Companies
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Challenges depends on various factors
Size of the company
Ex: Small companies struggle for the funds
Cultural differences of operating city
Ex: Hyderabadi’s are different to Mumbain’s
The kind of customer we are dealing with
Ex:1) Women are different to men
2) Highly earning person behaves differently
The product that we are dealing with
Ex: Food items are different to tickets
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Logistics
- 60% workforce of Flipkart focus on deliveries
- Customers are not ready to wait for days for their orders – Infrastructure developments required
- Companies are not yet ready to operate from each city
- Zipper App to find the address
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Digital Infrastructure
Ex: ClearTrip, BookMyShow & Zomato
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Payment Options
Need to get right mix of payment options as of customers preferences
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Creating Physical Shopping Experience in Online
- Companies are failing to do it that’s why they have to accept all the return policy for longer periods…if we find any alternative it saves big bucks for the ecommerce industry
- Returns becoming a big headache for the Ecommerce companies across the globe as they have to invest money in picks and drops
- Lenskart.com did a great job via online and offline strategies
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Price War Among Retailers
-Companies need market share & ready to entertain the customers- When we get off the quality of products also inferior - One of the reason for Flipkart & Myntra merger
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Free Delivery
Big Discounts
Same Day Delivery
High Quality
Products Warranty
Not only discounts but also Coupons
Increasing Customer Expectations
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Hidden Competitors & Replicators because of innovation in technology
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Evolution of Phone has Killed many Businesses
Music Players
Video Games
News Papers
Watches
Of course it has created opportunities in other ways
CamerasBooks
Telecomm Companies
Whatsapp alone eating 100 +crore a year from Indian telecom companies
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Out of Stocks
- Flipkart’s big billion day
- Walmart had hit very hard because of the out of stock issues
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Advertising
-What to advertise?
- Where to advertise?
- Can we achieve ROI?
-Engaging
-Converting
- Retaining
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Big Data = Gold Mine
- Analytics Platforms
-Talented Workforce
- Intelligence
- Cost Cutting
- Better Service
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Fund Rising Only Flipkart & Snapdeal…
….but not all the small companies
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Making Profits
Companies are growing only by increasing their market share & market value but not by returning profits
Ecommerce business takes at least 6 to 8 years to yield profits
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Amazon
82 80
113
185 178
0
50
100
150
200
2011 2012 2013 2014 2015
Market Value (in billion dollars)
631
-39
274
-241-300
-200
-100
0
100
200
300
400
500
600
700
2011 2012 2013 2014
Net Income (in million dollars)
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Opportunities
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$21
$22.5
$24
$25.3
$27
$28.3
$1 $1.3 $1.6 $1.9 $2.2 $2.5
$-
$5
$10
$15
$20
$25
$30
2013 2014 2015 2016 2017 2018
Global In-Store X Ecommerce Revenue
Offline
Online
Source: eMarketer.com (sales in trillion dollars)
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Can we replace the physical shopping with ecommerce?
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$21
$22.5
$24
$25.3
$27
$28.3
$-
$5
$10
$15
$20
$25
$30
2013 2014 2015 2016 2017 2018
Global In-Store Revenue
Offline
7%
7%5
%7%
5%
Source: eMarketer.com (sales in trillion dollars)
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$1
$1.30
$1.60
$1.90
$2.20
$2.50
$-
$1
$1
$2
$2
$3
$3
2013 2014 2015 2016 2017 2018
Global E-commerce Revenue
Online
30%
14%16
%19%23
%
Source: eMarketer.com (sales in trillion dollars)
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$3
84
$4
31
$3
09
$4
9
$4
8
$2
7
$5
25
$4
82
$3
42
$5
8
$5
7
$3
4
$6
81
$5
38
$3
74
$6
4
$6
5
$4
0
$8
56
$5
98
$4
04
$6
9
$7
0
$4
5
$1
,05
3
$6
60
$4
32
$7
3
$7
5
$5
1
$-
$200
$400
$600
$800
$1,000
$1,200
Asia-Pacific North America Western Europe C & E Europe Latin America Middle East & Africa
Ecommerce Growth by Continent
2013
2014
2015
2016
2017
Source: eMarketer.com (sales in trillion dollars)
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China
South Korea
Japan
India
Top Asia PacificEcommerce Countries
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China Ecommerce Sales to hit 1 trillion dollars by 2020
Source: Statista.com
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Source: Statista.com
India’s Ecommerce sales to hit close to 100 billion dollars by 2020
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Source: Statista.com – Just 15% for now
India to hit 500 million internet users by 2020
it’s Mobile commerce contribute more
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Why India is on Focus?- Softbank it self planning to invest 10 billion US dollars..already 1 billion invested
- 2nd largest country & ready to beat China soon
- 15% internet penetration & long way to go
- By 2020 an Avg. of Indian would be around 30 years – More young people tend to buy more from the digital world – disposable income is high
- Only 30% of the Indians have bank accounts
- Only around 20% of the Indians using smart phones
- Hopes on the development of Indian infrastructure by the new government
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Developing Countries
High Per Capita Income
(Disposable Income)
High technology
adoption and literacy rates
More Bank Account Users
High Young Population
High Internet Penetration
&Mobile Usage
Both Men & Women are
working
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B2B has more opportunities
Dealing with businesses is comparatively easier than
dealing with retail customers
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Over Sea’s Opportunities
Over 2 Crore Indians are living across the world
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Tire - 1 Cities
Tire - 2 Cities
Tire - 3 Cities
High populated
Towns
Where to focus?
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Travel
What products & services?
Home Furnishing
Health Care
Electronics
Ticket Booking
Books & Stationary
Education
Apparels
Apparels
Food Home Services Entertainment
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Build Your Own Website with
best technology at affordable
price
Use Ecommerce
Hosted SolutionsEx: 3Dcart
Sell on Market Places
Ex: Amazon
Platforms to sell your products
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EcommerceApplications
Mobile Commerce
Ecommerce Tools
Digital Marketing
Digital Content
Websites
MobileApps
LogisticsNew
Payment Options
Man Power Consultants
Offline Advertising
Agencies
Packing & Printing Services
All are occupied but we still can find the way for us…..……Indirect Opportunities
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Watch this presentation on
www.ecomlytics.com/nes