GROWTH OF E-COMMERCE INDUSTRY: COMPARATIVE STUDY OF INDIA WITH OTHER COUNTRIES

Presented By : Sahil Munjal MBA 2ND Semester Periyar Management And Computer College GuruGobind Singh Indraprastha University,New Delhi

2

What is E-Commerce.?

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet.

3

COMPARISON BETWEEN E-COMMERCE & E-BUSINESS

E-COMMERCE E-BUSINESS Ecommerce involves

commercial transactions  over the internet.

Ecommerce is subset of E-business.

Ecommerce is use of electronic transmission medium that caters for buying and selling of products and services.

Thus, Those activities which essentially involve monetary transactions are termed as “e-commerce”

E-business is conduct of business processes on the internet.

E-business is superset of Ecommerce.

In addition, E-business also includes the exchange of information directly related to buying and selling of products.

In addition it includes activities like procurement of raw materials or goods, customer education, looking for suppliers etc.

4

Types Of E-Commerce

There are 4 basic types of e-commerce:

Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Consumer-to-Business (C2B). Government To Business(G2B) Government To Government(G2G)

5

E-COMMERCE MODELS

Storefront Model

Auction Model

Portal ModelDynamic Pricing Models

Subscription Model

6

Classification

E-Tail(Flipkart , Jabong , Snapdeal)

Travel(Make My Trip, IRCTC)

Classifieds(Bharat Matrimony, Zomato)

Other(Mydala , DTDC)

E-Commerce

7

Overview of the World Scenario

8

E-Commerce in India

Ecommerce in India is still in growing stage, but even the most-pessimistic projections indicate a boom. It is believed that low cost of personal computers, a growing installed base for Internet use, and an increasingly competitive Internet Service Provider (ISP) market will help fuel e-commerce growth in Asia’s second most populous nation. The first e-commerce site in India was rediff.com. It was one of the most trafficked portals for both Indian and nonresidents Indians. It provided a wealth of Indian-related business news a reach engine, ecommerce and web solution services.

9

10

Factors Contributing to Indian E-Commerce

Although the trend of e-Commerce has been making rounds in India for 15 years, the appropriate ecosystem has now started to fall in place. The e-Commerce market in India has enjoyed phenomenal growth of almost 50% in the last five years.

Key factors driving the growth story of e-Commerce in India include:

Considerable rise in the number of internet users Growing acceptability of online payments Proliferation of internet-enabled devices Favorable demographics

11

Forecasted Growth Sales

12

E-Commerce in USAE-commerce has been seen as a boon to the

people of USA since the time it has been evolved ,but according to the recent trends the us e-commerce industry has seen a remarkable growth.

Reasons for growth:

Faster Diffusion Of Innovation Theory. Trustworthiness on web marketers. Better Infrastructure. Enforceability Of Laws.

13

E-Commerce IN USA (Contd..)

14

E-Commerce in India VS USA

INDIAN E-COMMERCE USA E-COMMERCE Preference of Cash on

Delivery(COD) over plastic money.

Customers are easily influenced with seasonal discounts and offers.

Categories of products offered online(including property and automobiles.)

Poor logistics and site crashes are often.

Users believe in making pre payment of goods ordered.

Huge discounts and offers fail to impress a huge population.

Categories so offered generally include apparels and electronics.

On time delivery of goods with proper maintenance of sites.

15

E-COMMERCE IN UK

The United Kingdom had the largest e-commerce market in Europe and accounted for roughly 32 percent of European e-commerce sales. The most recent UK governmental figures placed the value of UK e-commerce sales at 492 billion British pounds . Estimates from various sources valued B2C e-commerce sales in the United Kingdom at roughly 101 billion euro . Meanwhile, B2B e-commerce sales (via website) came to roughly 69.8 billion British pounds in 2015. E-commerce accounted for an 18.2 percent share of total business turnover in the United Kingdom . And, roughly 80 percent of UK internet users accessed online shopping, the highest online shopping penetration in Europe.

16

Forecasted E-COMMERCE GROWTH IN UK

GBP=BRITISH POUND

17

FACTORS CONTRIBUTING IN UK E-COMMERCE GROWTH

There is less Geographical area in UK which makes it favorable for faster delivery of goods in less time and lower costs.

The consumers or the customers are more comfortable in using plastic money as compared to any other country.

High rates of technology adoption and low costs of internet services add to the positive factors.

18

E-COMMERCE GROWTH IN CHINA

The growth of Chinese e-commerce have a seen a tremendous growth from time it has evolved to the present times i.e., from a mere total of 2.1 million internet users to a huge 6 million user width and generating a 70% revenue as compared to INDIA & USA.

Moreover , the responsiveness towards customer’s demand is adding to there positive points in growth.

The major player which changed the perspective of Chinese e-business market is ALIBABA( Taobao & T-MALL) which consist of more than 500 million registered customers on its portal.

19

Forecasted E-Commerce Growth in China

20

FACTORS CONTRIBUTING IN CHINESE E-COMMERCE GROWTH Disposable income is on the rise. Physical retailers can lack quality,

consistency and customer service. China’s leading B2C sites have a deep grasp

of what their consumer base demands. Online marketplaces can have greater

integrity(morals and are honest) than offline outlets.

Smart phones are prevalent and have become the channel of choice for Internet shoppers.

21

Conclusion

The future of E-Commerce is difficult to predict. There are various segments that would grow in the future like: Travel and Tourism, electronic appliances, hardware products and apparel. There are also some essential factors which will significantly contribute to the boom of the E-Commerce industry in India i.e. replacement guarantee, M-Commerce services, location based services ,dedicated 24/7 customer care centre etc.

The e-Commerce industry in India may currently be behind its-counterparts in a number of developed countries and even some emerging markets. However, with India’s GDP growth pegged at6.4% by the International Monetary Fund and the World Bank, it is expected to grow.