E-Commerce in India Status Quo (With also a context to Status quo ante)

E-Commerce: The world over

•  There are over 2 billion Internet users in the world (almost 1/3rd of the world population)

•  Retail e-commerce itself in the U.S. is predicted to grow at 17% and it will account for $200 billion in sales in the current year i.e. 2012

•  China has added the equivalent of the entire population of France in internet users in each of the last four years (2007 – 2011)

•  By 2015, China will surpass U.S. in terms of total e-commerce revenues.

•  In 2011, Germany’s online trade increased 17% in 2011 to €21.48billion.

E-Commerce - India

•  80 million Internet users •  10 million 3G connections within 6 months of launch, almost equal

to the base of wire line broadband connections •  The 2nd largest user base for Google+ and Orkut in the world •  28% of travel gets booked online; 117 million transactions on IRCTC

alone •  47% of the classifieds business is online •  7% of bank users in India access their accounts online •  25% of IT returns were filed online in 2010-11 •  Close to 50% of music revenues in India comes from mobile

downloads

????

•  Is the quality of Internet connectivity good enough to drive consumption online?

•  Is the payment infrastructure ready to support large scale e-commerce growth?

•  Are Indian consumers really ready to embrace e-tailing? How many are actually transacting?

•  How ready is the supply chain infrastructure to handle direct consumer deliveries?

•  Do we have the right talent and environment available within the industry?

•  What is the path to profitability?

Status of Ecosystem supporting E-commerce

Online Transactions – Indicator of Health of E-commerce as on date

Time spent online by Indian users at 16.5 hours per month low compared to global benchmarks, projected to reach 21 hours by 2015

Total number of users transacting online in India at 8-10 million, expected to increase to 38 million by 2015

Business Models for E-Commerce

Based on Relationship of Transaction Parties •  Business to Consumer (B2C) •  Business to Business (B2B) •  Consumer to Consumer (C2C) •  Consumer to Business (C2B)

Based on Relationship of Transaction type •  Brokerage Model •  Aggregator Model

Sector wise presence of E-Commerce

•  Banking •  Railways •  Transportation •  Retail •  Insurance •  Services •  Education •  Gaming, Music etc and many more….

Support functions for E-Commerce and status quo

•  E-Marketing •  E-Security •  E-Payment systems •  E-Customer Relationship Management •  E-Supply Chain •  E-Strategy

Advantages in E-Commerce

•  24X7 Operations •  Global Reach •  Cost of acquiring, serving, and retaining customers •  An extended enterprise is easy to build •  Disintermediation •  Improved customer service to your clients •  Power to provide “the best of both the worlds” •  Technology based customer interface •  The customer controls the interaction •  Knowledge of Customer Behavior •  Network economics