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E-Commerce Industry in India

India has an internet user base of about 137 million as of June 2012. The penetration of  e-commerce is low compared to markets like the United States and the United Kingdom but is

growing at a much faster rate with a large number of new entrants.] The industry consensus is

that growth is at an inflection point.

Unique to India (and potentially to other developing countries), cash on delivery is a

 preferred payment method. India has a vibrant cash economy as a result of which 80% of

Indian e-commerce tends to be Cash on Delivery. Similarly,direct imports constitute a large

component of online sales. Demand for international consumer products (including long-

tail items) is growing much faster than in-country supply from authorised distributors and e-

commerce offerings.

Market size and growth

India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in

2011 and to $14 billion in 2012. About 75% of this is travel related (airline tickets, railway

tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5%

($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an

estimated 30% 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:

  Increasing broadband Internet and 3G penetration.  Rising  standards of living and a burgeoning, upwardly mobile middle class with high

disposable incomes

  Availability of much wider product range (including long tail and Direct Imports) 

compared to what is available at brick and mortar retailers

  Busy lifestyles, urban traffic congestion and lack of time for offline shopping

  Lower 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[10] 

  Evolution of the online marketplace model with sites like eBay, Infibeam, and Tradus.The evolution of ecommerce has come a full circle with marketplace models taking

center stage again.

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%. 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.

As per "India Goes Digital", 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 for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow

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at a rate of 22% over the next 4 years and reach Rs 54,800 Crore in size by 2015.Indian e-tailing industry is estimated at Rs 3,600 crore in 2011 and estimated to growto Rs 53,000 Crore in 2015.

Overall e-commerce market is expected to reach Rs 1,07,800 crores 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 byoperator websites like Airtel.in, Vodafone.in and third party sites like

 paytm.com,rechargeitnow.com

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E-Commerce models

There are mainly five types of e-commerce models:

Business to Consumer (B2C)  - As the name suggests, it is the model involving

 businesses and consumers. This is the most common e-commerce segment. In this

model, online businesses sell to individual consumers. When B2C started, it had a

small share in the market but after 1995 its growth was exponential. The basic concept

 behind this type is that the online retailers and marketers can sell their products to the

online consumer by using crystal clear data which is made available via various online

marketing tools. E.g. An online pharmacy giving free medical consultation and selling

medicines to patients is following B2C model.

Business to Business (B2B) - It is the largest form of e-commerce involving business

of trillions of dollars. In this form, the buyers and sellers are both business entities and

do not involve an individual consumer. It is like the manufacturer supplying goods to

the retailer or wholesaler. E.g. Dell sells computers and other related accessories

online but it is does not manufacture all those products. So, in order to sell those

 products, it first purchases them from different businesses i.e. the manufacturers of

those products.

Consumer to Consumer (C2C)  - It facilitates the online transaction of goods or

services between two people. Though there is no visible intermediary involved but the

 parties cannot carry out the transactions without the platform which is provided by the

online market maker such as eBay.

Peer to Peer (P2P) - Though it is an e-commerce model but it is more than that. It is a

technology in itself which helps people to directly share computer files and computer

resources without having to go through a central web server. To use this, both sides

need to install the required software so that they can communicate on the common

 platform. This type of e-commerce has quite low revenue generation as from the

 beginning it has been inclined to the free usage due to which it sometimes got

entangled in cyber laws.

m-Commerce - It refers to the use of mobile devices for conducting the transactions.

The mobile device holders can contact each other and can conduct the business. Even

the web design and development companies optimize the websites to be viewed

correctly on mobile device

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Supply chain in e-commerce

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INDIA CIRCUS 

India Circus offers contemporary-chic, sophisticated, and affordable style for various

areas of your life, from home décor to personal accessories. Inspired by life in India

today, India Circus appropriates this rich effervescent, historic, and idiosyncratic

experience into its designs. With a diverse All-Indian palette, the India Circus vision

 juxtaposes India’s decadent royal past with her modern urban-scape and even local

handicrafts, and so much more, to offer a refreshingly distinct and vibrant aesthetic.

With two successful decades of experience as an award-winning artist and designer,

Krsna Mehta embarks on his first entrepreneurial venture with India

Circus. Remaining committed to design, Mehta and his India Circus studio create all

of India Circus’ characteristic prints and patterns. Currently commissioning its ownmanufacturing as well, India Circus dedicates itself to bring clients affordable luxury

without ever compromising on pristine and impeccable quality.

Based in Mumbai, India, India Circus manages its own brand online, from its

namesake website (www.indiacircus.com), and currently delivers its products within

India and worldwide. India Circus has already established successful partnerships

with various domestic retail giants, including @home and Westside department

stores in India, which feature select product ranges. India Circus will also launch its

very first flagship store, in Mumbai later this year. The brand has also further fortified

a global presence by partnering with various retail stores overseas, including

Comme un Monde in Paris, France, and Urban-Yogi in Dubai, UAE., among many

others. India Circus also boasts incredibly successful partnerships with renowned

online retailers across the globe, including Europe’s www.westwing.com, and

www.fab.com. India Circus’ complete product range is only available online

at www.indiacircus.com. 

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www.Indiancircus.com