E-commerce Ecosystem.

Outline History of E-commerce Increasing E-commerce in India Problems faced in E-commerce Effects on Retailers Effect on Economy Effect on Government policies on Ecommerce Opportunities for Venture Capitalists Valuations of E-commerce Market

History Of E-commerce Started in 1991 At first, the term ecommerce meant the process of execution of commercial

transactions electronically with the help of the leading technologies which gave an opportunity for users to exchange business information and do electronic transactions.

In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services

ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales.

History of E-commerce in India 1991: Introduction of E-Commerce

2002: IRCTC teaches India to Book ticket online

2003: Introduction of Low Cost Airline with AirDeccan

2007: The Deep Discounted model of Flipkart

2014: Current Scenario

Increasing E-Commerce in India

With the emerging era of Digital India, where smartphone sales have sky-rocketed, there is a lot of scope for E-Commerce.

With its essential features like all season discounts and 24/7 availability, it has attracted a lot of people

30 Days return guarantee, 1-7 days delivery time, etc. to the online shopping and the E-Market have added new flavours to the industry

Youth Factor (60-62% of population) “India’s e-commerce market was worth about USD 3.8 billion in

2009, it went up to USD 17 billion in 2014 and to USD 23 billion in 2015 and is expected to touch whopping USD 38 billion mark by 2016,”

Key drivers in Indian E-commerce

The Increasing broadband Internet and 3G penetration Growing Living standards Availability of much wider product range Busy lifestyles and lack of time for offline shopping Increased usage of online categorized sites Evolution of the online marketplace model with websites like

eBay, Flipkart , Snapdeal, etc.

Preferred Shopping Means

40%

60%

PEOPLES’ CHOICERETAILERS (40%) ONLINE SHOPPING (60%)3rd Qtr 4th Qtr

Survey Analysis0

5

10

15

20

25

30

35

40

45

28

30

42

Trust Factors An important reason for using e-commerce because when

people trust you they will do business with you A consumer makes a purchasing decision (purchase) based on

his or her purchase intention Benefit, risk, and trust toward the Internet selling entity Trust toward the selling party will also indirectly increase their

intention to purchase by reducing their perceptions of risk (indirect effect)

Engage in an Internet purchase when perceived risks are low, when perceived benefits are high, and when trust is high (direct effect)

Trust Cycle

TRUST

PURCHASE

FEEDBACK

FACTORS

Problems Faced In E-commerce

Poor Knowledge and Awareness Online Transaction Cash On Delivery Online Security Logistics and Shipment Services Tax Structure Fear factor ‘Touch and Feel’ factors

Effect on Offline Retailers Online business is rich in information but lacks in touch and

feel, offline business is rich in touch and feel but lacks in flow of information

There is no behavioral data available on what products customer searched for, what was the customer’s preference, which colour he/she liked, which brand he/she liked when the customer leaves the shop.

But when customer buys online, all behavioral data can be tracked and this data can be used to provide intelligent recommendations.

As customers’ trust on online market is increasing, products like pen-drive, mobiles, earphones are more being purchased online.

Customers get look and feel of the product at offline store and then prefer to purchase online at cheaper rate.

Wide range of products can be selected by the consumers with just one click.

Effect of e-commerce on Indian economy

Indian e-commerce has been growing at an unprecedented rate, adding about 70million entrants per year.

Indian e-commerce has been estimated to generate a revenue of 100billion by the end of 2016 which would boost India’s economy.

Analysis shows that 40% population in the age group 15-25 and are the potential of e-commerce and this figure is expected to rise to 64% by 2020.

The below graph shows the current and estimated growth GDP contributed by e-commerce:

The blooming e-commerce is likely to be a game changer for future job markets.

Internet penetration and smartphones have led to increase e-commerce trade which has positive effect on economy.

The bloom is to be seen in Tier-2 and Tier-3 cities in India. Below pie chart shows current need of e-commerce in the nation.

Effect of Government policies on Ecommerce Changes in government policies such as taxations. Regulations by the telecom authority-TRAI. Improvement in technology has promoted the implementation of

government policies-paving way for Ecommerce. Emphasis to Innovation and Entrepreneurship based education. Financial, e.g. grants, loans, subsidies, financial sharing arrangements,

provision of equipment, buildings or services, loan guarantees, export credits, etc.

Opportunities for Venture Capitalists

Ecommerce has turned out to be a great investment opportunity for VCs owing to high returns.

Increasing competition among the various players has brought investments form various financial corporates-PE’s;VC;Angel Networks.

Valuations of E-commerce Market Experts have pinned India as one of the fastest growing e-

commerce markets

Holds valuations of 1.2 trillion US dollars

About 40% of internet user worldwide

The Way Ahead!(Buyers Think)

“As the vertical segments of the e-commerce market being filled up, the competition is getting fired up. Online shopping will grow because of competition!”, says an online buyer on Quora.

44%

44%

4% 1%7%

What Buyers Forecast?

Very GoodGoodNot so goodDo not have a future in IndiaDon't know / Can't say

The Way Ahead!(Experts Speak) Neither Flipkart nor Snapdeal is profitable! “E-commerce companies need to realize the fact that their

entire business model depends on discounts. Once the discount is lowered or dropped, customers will start looking elsewhere for a better deal.”, says a blogger in The Huffington Post.

However, rise in internet connectivity and craze of smartphones would boost it’s growth.

Ecommerce will Boost!

Reference Survey http://economictimes.indiatimes.com/ http://www.livemint.com/Companies/d3Jcm2hLqn1Xj6x2qGnIhM/Ecomme

rce-startups-collectively-overvalued-Aswath-Damodar.html https://www.researchgate.net/publication/221409051_The_Government's

_Role_in_Improving_Electronic_Commerce_Adoption

Thank You !!! Developed By-

Krishna Chukewad 141030057 Sanchit Pathak 141030058 Aniket Kamble 141030059 Mohanish Gaikwad 141030061 Bhavya Kenia 141030063 Sagar Hinduja 141030064

VJTI, Matunga, Mumbai-19.