INDIAN E-COMMERCE INDUSTRY

Submitted by:• T.Sairam Singh• G.Santhosh• DA.Krishna• M.Sushma• K.Sudheera

What is E-commerce?

E-commerce is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.

This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business.

It is a Market entry strategy where the company may or may not have a physical presence.

History• In 1972 the E-commerce started as a sale

between students of MIT and SAIL.• In 1990’s the world wide web made a platform

to E-commerce.• IndiaMart: B2B market place in 1996.• In 2013 the market is 12.6 billion $. • In 2014 Indian E-commerce industry estimate

a growth of more than 30%.

Key players in E-Commerce industry

• Flipkart• Snap deal• Myntra• Make my trip• Red bus• IRCTC and many others

E-commerce can be classified::

• C2C (Consumer to Consumer):This kind of transaction takes place via online classified Ads or auctions or by selling personal services online.

Ex: ebay.com auctions

• B2B(Business to Business): This takes place when a company wants to conduct a commercial activity with another business firm online. Ex: Altra, FreeMarkets

• B2C (Business to Consumer):This is the most common form of E-Commerce in which a variety of goods ranging from apparels, footwear, stationery, gifts, and services like travel booking, online matrimonial and digital downloads are available. This mode provide the consumer with services like information gathering, comparing and buying or selling goods online.

Ex: shaadi.com, makemytrip.com, shopclues.com, flipkart.com

Flipkart• Flipkart is an Indian e-commerce company headquartered in

Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007 with the objective of making books easily available to anyone who had internet access.

• Later on expanded to electronic goods and a diversity of other products including

-Movies and Music, Games,

-Mobiles, Cameras, Computers,

-Healthcare and personal products,

-Home appliances and electronics, stationery,

perfumes, toys, apparels, shoes – and

still counting!

Snapdeal

• Snapdeal is a leading online marketplace, headquartered in New Delhi, India.

• Snapdeal features products across categories like

-mobiles, electronics, fashion accessories,

-apparel, footwear, kids, home and kitchen,

-sports, books; and services like restaurants, spas & entertainment amongst others.

Myntra

• Myntra was established by Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena in February 2007.

• Myntra.com works as an online shopping retailer of fashion and casual lifestyle products.

• The company started off in the business of personalization of products, and soon expanded to set up regional offices in New Delhi, Mumbai and Chennai.

Make my trip

• MakeMyTrip (MMT) found in April, 2000

• Offices in 23 cities across India

• Major market share (48%)

• Every eleventh domestic flights in India booked via MMT.

Red bus

• Red bus was founded in august 2006

• India’s first bus tickets booking site

• Has the largest network of bus operators in their list

(350+ and growing)

• Sells two cloud based software, called BOSS and

Seat Seller to bus operators and travel agents.

Pros1) Convenience

2) Better Prices

3) Variety

4) Send Gifts

5) Fewer Expenses

6) Comparison of Prices

7) No Crowds

8) Discreet Purchases

Cons1) Security

2) Touch and Sense

3) Time for delivery

4) Warranty Issues

5) Fake Products

Achieve 1. Attracting New Customers 2. Increasing Sales3. Increasing Customer Loyalty and Retention4. Providing Superior Customer Service and

Communications5. Reducing Operating Costs and Increasing

Efficiency6. Promoting Your Brand and Enhancing Your

Brand Image7. Preparing for Future Needs

Strategies

Avoid1. Weak or inconsistent branding2. Shopping cart abandonment3. Bad User Experience and usability4. Poor navigation5. Slow performance6. Slow or limited site search7. Inability to make changes quickly8. Poor Performance with search engines

Strategies

• On 27th May'2012 Yebhi.com declared that they shortly introduce "try and buy" where the shoppers can actually try the clothes and shoes they buy on the portal when it is delivered to them and return it if they are not satisfied.

• In October 2013 Amazon.in launches free home delivery for every product purchased despite of minimum order as promotional offer .

• Goibibo.com gives discount offers, gift coupons etc… on flight tickets, bus tickets and hotel bookings through out the year.

• Flipkart.com is the first e-commerce website to offer cash on delivery and gives 30-days guarantee replacement.

• Shopclues.com offers Sunday-flea-market which gives huge discounts on the products specified

• Many E-Commerce websites are participating in GOSF(Google online shopping festival) for giving huge discounts.

Promotions

Primary data analysis

• Case 1:

Finding the Gender perceptions on e-commerce.Sample: 50Male: 34Female: 16

1.How often do you buy online?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sometimes

Regularly

Never

Row Labels Never Regularly Sometimes

Grand Total

Female 3 3 10 16

Male 2 7 25 34

Grand Total 5 10 35 50

Finding:Male candidates buy often than females.

2.For what purpose do you use e-commerce?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For personal use

For business use

For both per-sonal and business use

Row Labels

For both personal and business use

For business use

For personal use

Grand Total

Female 1 3 12 16

Male 7 27 34

Grand Total 8 3 39 50

Finding:Female candidates don’t use e-commerce for both personal and business.

3.From the various types of e-commerce, what according to you has the largest market share?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OthersB2GB2CB2B

B2B B2C B2G Others

Female 3 11 2

Male 4 26 2 1

Grand Total 7 37 2 3

Finding:Female and male candidates perceive B2B has a largest market share.

4.According to you how is e-commerce helpful to the consumer in the e-business domain?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Others

Fastens business process

Encourages price trans-parency

Broadens consumer choice

Broadens consumer choice

Encourages price transparency

Fastens business process

Female 6 3 7

Male 11 12 10

Finding:Female perceive e-commerce helpful in FBS but male perceive it encourages price transparency.

5.Do you think that the application of e-commerce has increased over the years in India?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Series4 Yes

No

Broadens consumer choice

Encourages price transparency

Fastens business process

Female 6 3 7

Male 11 12 10

Finding:Female and male candidates perceive that the application of e-commerce has increased in India.

6.Do you agree that e-commerce as commercial means has its advantages over the traditional commercial methods?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Series4

Do not know/ cannot say

Disagree

Agree DisagreeDo not know/ cannot say

Female 15 1

Male 28 3 1

Finding:Female candidates agree there is a advantage in e-commerce than male candidates.

7. Do you agree that e-commerce can provide an alternative marketing channel by eliminating middleman?

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

#REF!

Disagree

Agree Disagree

Female 11 5

Male 28 5

Finding:Male candidates agree that e-commerce will eliminate middle man than female candidates.

Chi square analysis:7. Do you agree that e-commerce can provide an alternative marketing channel by eliminating middleman?

Column Labels

Agree Disagree Grand Total

Female 11 5 16

Male 28 6 34

Grand Total 39 10 50

Expected

Agree Disagree Grand Total

12.48 3.2 16

26.52 6.8 34

39 10 50

Ho: There is an independence in the decisions on gender for the question asked that e-commerce can provide an alternative marketing channel by eliminating middleman?

H1: There is a dependence in the decisions on gender for the question asked that e-commerce can provide an alternative marketing channel by eliminating middleman?

Conclusion: As the p value is greater than 0.05 we accept the Ho ,that there is an independence in gender decisions that e-commerce can provide an alternative marketing channel by eliminating middle man

p-value 0.24272

8. Which is the most prominent domain in which e-commerce is used in India?

Banking Others Matrimony

Online shopping

Stocks & shares

Travel and tourism

Female 1 2 10 1 2

Male 2 2 25 2 2

Finding:Male candidates agree that e-commerce will eliminate middle man than female candidates.

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Travel and tourism

Stocks & shares

Online shopping

Matrimony

Banking Others

9. What are the challenges to the implementation of e-commerce in India?

Consumers’ awareness level is low

Lack of trust

Other factors

Security concerns

Slow penetration of internet

Female 5 3 8

Male 10 9 2 9 3

Finding:Female candidates feel security concern is a challenge but male candidates feel all the reasons are challenges .

Female Male0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Slow pene-tration of internet

Security concerns

Other factors

Lack of trust

Consumers’ awareness level is low

Case 2:

Considering the perceptions of the students and working people towards e-commerce.Sample: 50Students:42Employees: 08

How often do you buy online?

Never Regularly Sometimes Grand TotalStudent 5 8 29 42Working 2 6 8Grand Total 5 10 35 50

Student Working0%

10%20%30%40%50%60%70%80%90%

100%

SometimesRegularlyNever

Finding:Students with comparison to working people few of them never buy through online .

From the various types of e-commerce, what according to you has the largest market share?

B2B B2C B2G OthersStudent 7 30 1 3Working 7 1

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(blank)OthersB2GB2CB2B

Finding: most of the consumers perceive that in e-commerce industry business to consumer has the largest market share.

According to you how is e-commerce helpful to the consumer in the e-business domain?

Broadens consumer choice

Encourages price transparency

Fastens business process

Student 15 12 14Working 2 3 3

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

blankFastens business processEncourages price trans-parency

Finding:Both students and working individuals perceive that e-commerce will broadens consumer choice , encourages price transparency , fastens business process.

Do you think that the application of e-commerce has increased over the years in India?

Do not know/ cannot say No Yes

Student 4 2 35

Working 8

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(blank)YesNoDo not know/ cannot say

Finding:Working individuals feel that e-commerce has increased over the years in India where few students don’t know about it.

Do you agree that e-commerce as commercial means has its advantages over the traditional commercial methods?

Agree DisagreeStudent 36 3Working 7 1

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(blank)Do not know/ cannot sayDisagreeAgree

Finding:Both students as well as employees feel that e-commerce as commercial means has its advantage over the traditional methods.

Do you agree that e-commerce can provide an alternative marketing channel by eliminating middleman?

Agree Disagree

Student 31 10

Working 8

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For personal useFor business useFor both personal and business use

Finding:All the working individuals feel that e-commerce can provide an alternative marketing channel by eliminating middleman.

What are the challenges to the implementation of e-commerce in India?

Consumers’ awareness level is low Lack of trust Other factors

Security concerns

Slow penetration of internet

Student 13 9 2 14 3Working 2 3 3

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(blank)

Slow penetra-tion of internet

Security concerns

Other factors

Lack of trust

Finding:Both the students and employees feel that consumer awareness and security are the major concerns for the implementation of e-commerce in India.

Which is the most prominent domain in which e-commerce is used in India?

Banking Others Matrimony Online shopping Stocks & shares

Travel and tourism

1 3 30 3 42 1 5

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(blank)Travel and tourismStocks & sharesOnline shoppingMatrimonyBanking Others

Finding:It is clearly evident that both the Working and students feel online shopping is the most prominent domain in which e-commerce is used in India.

For what purpose do you use e-commerce?

For both personal and business use For business use For personal use

Student 6 3 33Working 2 6

Student Working0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For personal useFor business useFor both per-sonal and business use

Finding:Most of them perceive it only for personal use and few use it for Both personal and business use .