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E Commerce Market INDIA & GLOBAL MARKET Industry Segmentation Industry Stakeholders Market Size – India Market Size – Global Online Consumer Pattern Online.

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Presentation on theme: "E Commerce Market INDIA & GLOBAL MARKET Industry Segmentation Industry Stakeholders Market Size – India Market Size – Global Online Consumer Pattern Online."— Presentation transcript:

1 E Commerce Market INDIA & GLOBAL MARKET Industry Segmentation Industry Stakeholders Market Size – India Market Size – Global Online Consumer Pattern Online Retail – Top Segments Key Enablers in India

2 E Commerce industry Segmentation B2BC2CB2C Business to Business Consumer to Consumer Business to Consumer Classifieds Retail (E-Tailing) Travel Retail (E-Tailing) Classifieds Digital Download Financial Services http://indiamicrofinance.com/ecommerce-business-india-2014-2015-report-pdf.html E&Y Report: Re-birth of e-Commerce in India <10% >90% Online Classifieds: Portals connecting buyers and sellers by providing classifieds space for the sellers. Online retail (E-Tailing): Online sale of products Online Travel: Customers buy tickets, book hotels and purchase tour packages online. Digital Downloads Paid music, videos and games download Financial Services: Online sale of insurance, loans and mutual funds

3 E Commerce industry Stakeholders E&Y Report: Re-birth of e-Commerce in India Suppliers Airlines Railways Bus operators Retailers/ Manufacturers Service providers Job Consultants Individuals E-Commerce Player Buyers Individuals Businesses Logistics ProvidersCall Centers Financial Intermediary Social Networking Sites Network Service Providers Internet Service Providers Policy Maker Core Layer Enablers Supporting Core Layer Government Stakeholders coordinate among each other for 3 major flows: Information Flow, Product Flow & Payment Flow

4 E Commerce Market Size in India E&Y Report: Re-birth of e-Commerce in India http://www.india-briefing.com/news/ecommerce-rise-india-8129.html/ CAGR 49% B2C & C2C- e-Commerce market size (US$ billion) Largest Segment B2C: Further Segmentation-2011 Non Travel includes: e-Tailing, Digital downloads, Financial services & classifieds B2B market is a small contributor to the overall domestic e-Commerce market & was estimated at US$50.37 million in 2011.

5 E Commerce Market Size - Global http://www.capgemini.com/resource-file-access/resource/pdf/evolving_e-commerce_market_dynamics.pdf Global E-Commerce Sales volume (US$ billion) Global E-Commerce CAGR (2011 to 2013) In the short term, online sales are likely to be driven primarily by an increase in the number of broadband connections and smart phone usage in developing economies.

6 E Commerce – Online Consumers KPMG : Retail in Emerging Markets report India’s Online Population – modes of access (%) (Total = 162 million – as on Mar’13) Age profile of Online Consumers Youth constitutes a considerable proportion of the online users with India’s youth comprising a significantly larger share than the global internet users. Convenience is a key determinant of online shopping „which is evident from the dominant share of mobile phones across consumer segments. The gender split of users is skewed towards men, as women constitute only 39 percent of the internet user base in India.

7 Online Retail – Top Segments Though high-end segments such as apparel and consumer electronics dominate the online retail segment, new segments are increasingly gaining popularity. The growth of categories such as grocery retailing can be attributed to a mix of increasing comfort with trying new ‘non-traditional’ categories coupled with improved value. Increasing openness to purchase new categories presents an opportunity for retailers and companies to increase their consumer base, provided they succeed in achieving the right value proposition. Data Source: IBEF – India Brand Equity Foundation report, KPMG Retail Summit 2014 Report CRISIL Research Opinion Report Feb 2014 E Commerce – Online Retail : Top Segments

8 E Commerce – Key Enablers in India E&Y Report: Re-birth of e-Commerce in India Tablets and smart phones have given a new meaning to connectivity and user experience. The adoption of 3G, coupled with the declining prices of smart phones, will further increase internet usage in the country. Before 2011 Internet user base close to 5.5 million in 2000. Number of broadband subscribers as low as 51,000 in 2001 Number of credit and debit cards in India 4.2 million and 0.3 million respectively, in 1999 No 3G spectrum auctions till 2010. Average time spent online by an Indian consumer per month 12.9 hours in 2006. Number of users transacting online 3 million in 2007. 2011 Internet user base 121 million. The number of broadband subscribers 12.8 million. Number of credit and debit cards in India was 18 & 228 million, respectively. 3G spectrum auctions.Increased to 17.4 hours in 2011.Increased further to 11 million in 2011. Future in next 10 Years Internet user base to increase to 300 million by 2015. Number of broadband subscribers to reach 100 million by 2014 and 150 million by 2020 Number of credit and debit cards to reach 73.7 & 350.4 million, respectively in 2014 3G subscribers to reach 118 million by 2014 and 303.4 million by 2020. Forecast to increase to 21 hours in 2015.Expected to increase to 38 million by 2015.

9 E Commerce – Key Enablers in India E&Y Report: Re-birth of e-Commerce in India Tablets and smart phones have given a new meaning to connectivity and user experience. The adoption of 3G, coupled with the declining prices of smart phones, will further increase internet usage in the country. Demographic Factors Device Payment Internet Increased PC penetration Increasing smart phone & tablet market Declining PC, tablet and Smart phone costs Multiple Payment Instruments Increased Avg Transaction Value Increased Payment Gateways with better security layers Growth of Internet User base Increased broadband Penetration & 3G Declining Internet tariffs Rising disposable Income Rapid Urbanization Need for Convenience

10 E Commerce – The Promising Segment in India The Rise and Rise of E-Commerce in India – Jan 2013 by IBEF Size of the total e-commerce market in India is estimated to expand at a CAGR of about 40.0 per cent during 2010–20 to USD200.0 billion. India is expected to record the highest growth in the Asia Pacific region during 2012–16. The trend would shift with the online retail segment contributing equally to the total market size, considering it is expected to grow significantly in the coming years. The B2C segment would continue to lead the e-commerce market, thanks to the budding Indian Internet population, supporting demographics, ease of payment modes and customer-centric innovative policies. In the coming decade, the sector to offer much more revolutionary practices such as transacting with the help of Mobile money, and having access to virtual trial rooms. Continue shopping online as the sector is set to mature!!

11 Thank You


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