ecommerce market landscaping in india - 2014 and beyond
TRANSCRIPT
Trivia: What’s happening here?
Everything is sold online from Prasad to…
FREE SHIPPING!
Buffalo err… to
Houses to…
sexual wellness products…
Started in 2010
Valuation: $2 Billion
Started in 2007
Valuation: $7 Billion
TALE OF TWO BILLION $ STARTUPS AND AMAZON
Total investments in
Online Retail (including
other players)
> $4 Billion
Started in 2013
Announced $2 Billion investment
GMV – $1.5 Billion
(2014)
GMV – $750 Million
(2014)
GMV – $1 Billion (2014) Source: Various news sites
THE INTERNET JUGGERNAUT
100120
150
210
270
330
18 37.257.6
79.2 102126
2011 2012 2013 2014 2015 2016
No of internet users No of ECommerce users
Source: Accel, Internet and Mobile Association of India Reports
(in millions)
Metros
Rest of India
(Tier 2,3,4 Cities)
40%
60%
2013 Internet user base split
68%54% 45%
39%
32%46% 55%
61%
2011 2012 2013 2014
Mobile
Desktop
Internet usage by devices
25%
120 Million2014
380 Million2016
Smartphone users
ONE THING WHICH WILL CHANGE THE FUTURE
Source: Accel, Internet and Mobile Association of India Reports
Search Shopping Comparison Communication NetworkingTravel planningGamesMoviesNewsCommunication
110 135 175
No of Facebook users
(in millions)2
01
4
20
15
20
16
THE VIRTUAL WORLD BECKONS
Source: Accel, Internet and Mobile Association of India Reports
Advertising spend (in INR Billions)
Source: Accel, KPMG Reports
DIGITAL AD SPEND IN INDIA
Drivers of growth
Infrastructure DevelopmentSmartphone Penetration
Payments Best Prices available online
ConvenienceValue Prop for customers
SHOW ME THE MONEY, HONEY!
Source: Accel, KPMG Reports
2014 2018
$11 Billion
$ 43 Billion
Source: Nomura Research, November 2014
$3 Billion
$8 Billion
$ 13 Billion
$ 30 Billion
Product eCommerce
Travel and Others
eCommerce Sales (In Billion $)
EVOLUTION
InfrastructureDemand
Payments Investment
Talent
Train, Airline, Movie Tickets
Books, Electronics, Coupons
Lifestyle
Furniture, Jewellery, Homes!
More than 50 companies were started and many got busted in 2 years
Acquisitions
Inventory-led to marketplace
We are here
OPPORTUNITY ASSESMENT
Online buyers profile
Mobile Commerce
Women Influenced GMV
$4.2 Bn / 24X
Source: Accel Reports
>50% transactionsfor Top 3
eCommerce companies
399 490.77
2014 2015 2016
Number of Debit Card users in India(In millions)
45% of Indians
584.02
PAYMENTS LANDSCAPE
With the increasing digital payments penetration, the share of COD shipments is reducing With increasing order values, we are seeing an uptick of EMI payments 3rd party wallets albeit a new phenomenon, have a strong value proposition and will be quick to become popular – similar to China By 2016, half of Indians will have debit card!
Online Retail payments in India
Source: RBI Website and Accel Reports
ONLINE RETAIL- CATEGORY WISE BREAKUP
4% 2%
Source: Accel Reports
Buy
WarehouseLogistics for
delivery
E-Commerce Platform (Web and Mobile)
Payment integration
THE TWO SIDED BUSINESS MODEL
Supply Demand
Widest Selection Great Shopping Experience Pricing (Its not about discounts alone)
Critical Success Factors
Anywhere, Anytime, Any Channel
Research Online using Smartphones
Product reviews in Social Media
Comparison shopping across sites
Buy Online or in store
CONSUMERS EXPECT ALL TO ALL EXPERIENCE
Product Team
Marketing Team
Technology Team
Seller Management
Customer Servicing
Team
LogisticsTeam
Finance and Strategy
Happy customers
Convert Visitors and
provide great Experience
Error free, scalable
platform
Gain new consumers and retain old ones
Cash FlowsFund raising
Deliver on/before time
Best Selection
THE A-TEAM
EVERYONE WANTS A SHARE OF PIE
ECOSYSTEM PLAYERS
Travel Jobs
Matchmaking
Transport Recharge
Ticketing
Local
Marketplaces Fashion Vertical Players Real Estate
Platforms Payments Banks Logistics Compairsion
RetailerseCommerce
PlatformServicing Tools
Digital MarketingDesign
Consulting Photography
Data Entry
ECOSYSTEM PLAYERS
BUSINESS METRICS
Customer acquisition cost
Conversion Rate
Average Order Value
Customer Churn
% On-Time Delivery
Completion
Cash-conversion cycle and return on capital
Product + Marketing + Category
Customer Lifetime Value
Marketing
Operations
Finance
Seller / Supply Side
MarketingProduct and Technology
Operations and Fulfilment
Strategy and Finance
• Business Development• Category Management • Onboading • Training • Account Management • Alliances
• Digital Marketing -SEO, PPC, Social• ATL, BTL• Analytics • PR and Communication • Brand Management• Forecasting
• Product Management • Program Management • Analytics
• Supply chain • Warehousing • Logistics • Customer Service
• Planning and forecasting • Fund Raising • Cash flow management
WHAT ARE THE OPPORTUNITIES?
Great Entrepreneurial opportunities in making the ecosystem robust – increasing retention, increasing logistics efficiency, analytics etc
THE PIONEERS
CONCERNS AND FUTURE
InfrastructureDemand
Payments Investment
Talent
Train, Airline, Movie Tickets
Books, Electronics, Coupons
Lifestyle
Furniture, Jewellery, Homes!
More than 50 companies were started and many got busted in 2 years
Acquisitions
Inventory-led to marketplace
We are here Profitability Consolidation Top horizontal players Few niche players with unique selection Focus from discounting to customer experience Customer acquisition to retention Focus from GMV to Profitability
