...Report on Industry overview Of Online Shopping In India with Focus on B2C Online Retailing Prepared for: Prof. Praveen Gupta 16th January, 2013 Prepared by: Vijendra Sharma – 02EX12 Esha Malhotra – 10EX12 Jagpreet Ahuja – 11EX12 TABLE OF CONTENTS Chapter Number | Particulars | Page Number | 1. | Introduction | 3 | 2. | Opportunities in this segment | 7 | 3. | Brief on Flipkart | 9 | 4. | Porter’s Five forces | 12 | 5. | Critical Success factors | 15 | 6. | Challenges Ahead | 18 | 7. | References | 21 | 1. INTRODUCTION 1.1 About E-Commerce As a result of globalization and revolutionized technology and in many ways its feature, the term e-commerce represents the edge of success in this modern age computers and technology. E-commerce stands for electronic commerce. It means dealing in goods and services through the electronic media and internet. On the Internet, it relates to a website of the vendor, who sell products or services directly to the customer from the portal using a digital shopping cart or digital shopping basket system and allows payment through credit card, debit card or EFT payments. E-commerce involves carrying on a business with the help of the internet and by using the information technology like Electronic Data Interchange. In general words, Electronic commerce is the activity of buying and selling of the goods and services across the world through the World Wide Web. The Customers having interest in the products...
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...Introduction: The E-commerce market 2 Market Scenario: India 2 Drivers of Growth 3 Competition & Emerging Market Trends 3 Key Drivers of Industry 5 PESTEL Analysis 6 Government regulations 7 Business model 7 Barriers to entry 8 Lifestyle as a segment 8 The acquisition of Myntra 9 Conclusion: The road ahead 10 Which category to pursue? - A Game Theory Model 10 References: 12 Introduction: The E-commerce market Electronic commerce has emerged as an indispensable ingredient of India’s trade facilitation policy. Since 1991, The economic reforms explicitly took place in India around 1991 which resulted in the integration of the economy with the global economy. This combined with globalization and the advent of Internet has facilitated the growth of e-commerce market all over the world. India first came into interaction with the online E-Commerce via the IRCTC in 2002. The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Since then the market was taken over by airlines and other travel companies which made the mode of ticket booking online. This was taken forward by Flipkart, Snapdeal, Amazon and other companies and today, they rule this industry. The E-commerce business transactions are categorized into business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B) and the recently evolved business-to-business-to-consumer (B2B2C). E-Travel is the most...
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...India has an internet user base of about 250.2 million as of June 2014.[1][2] Thepenetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing[3] at a much faster rate with a large number of new entrants.[4] The industry consensus is that growth is at an inflection point.[5] Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run [6] and there is a need to make a shift towards online payment mechanisms. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings. Market size and growth[edit] India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.[1] About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million[7] as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%[8] CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Key drivers in Indian...
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...Abstract: E-commerce has transformed the way business is done in India. With attractive and convenient shopping options at the core of the consumer facing business, the e-commerce industry offers the power to create innovative, sustainable, consistent and seamless shopping experience across all channels.With the changing market scenario and economic growth, the demand for online shopping has increased.Explosion of e-commerce has changed the buying patterns and preferences of customers. The important brands are also moving towards e commerce technology for increased saleof their products. There is no doubt about it that ecommerce has made the transactions smooth, quick,faster and easier. Both the sellers and the buyers get benefited by his technology....
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...“TAXATION OF E-COMMERCE AND ITS CHALLENGES” The advancement in the technological world gave rise to E-commerce. It is the new buzzword of the 21st century. In terms of accounting "E-commerce is the process of buying, selling, or exchanging products, services, or information via computer networks through the use of internet”. It offers a new way of conducting, managing and executing business transactions using modern information technology without any geographical barriers. It has redesigned the traditional mode of business which is based on –physical presence and physical delivery of goods and services. E-commerce is any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. This article is an attempt to highlight the key issues in the area of ecommerce taxation analyzing and understanding the existing tax legitimate. Since EC can be conducted virtually instantaneously around the globe and around the clock, the question where the profits should be taxed becomes crucial. Taxing the Internet is a topic haunting governments from all over the world. The Need To Tax The e-commerce industry of India is one of the fastest growing segment in the Asia Pacific region. With a staggering CAGR of 34.58% from 2009 to 2012, the Industry has expanded from INR 19249 Crore (USD 3.49 bn) to INR 47,349 Crore (USD 8.60 bn) in a matter of 3 years. Electronics and Apparel are the biggest categories in terms of sales...
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...PROBLEMS FACED BY E-COMMERCE FIRMS IN INDIA Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between "conventional" and "electronic" commerce will become increasingly blurred as more and more businesses move sections of their operations onto the Internet How does e-commerce work? Because there are hundreds of different products and services for consumers and the multitude of different ways these products and services can be delivered, e-commerce by its nature is varied in the way it works. In its most basic form e-commerce works as follows: Consumers choose a product or service on a website. Consumers pay electronically on the website (online credit card transactions) or using a third party payment provider such as PayPal The business owner or merchant receives the order and payment and the order is fulfilled (delivered by post...
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...Cash-on-Delivery in India’s E-commerce Abstract – The online retail service is growing in the emerging market such as India. The online retail companies launched Cashon-Delivery (COD) to create trust of e-commerce in India. This helped many companies to penetrate in Indian Market. However, to the online retail company COD service has added additional burden such as direct and indirect cost of the transaction, high working capital requirement, efficiency management of COD ecosystem and payment hassles. According to Ernst & Young (E&Y), COD accounts for 50 to 60 per cent of online transactions in India. To reduce the contribution of COD in the online transactions without affecting the number of sales the online retail service providers need to understand why does the customer use COD as a mode of payment. The purpose of this research is to understand the factors influencing the customers to use COD as a mode of payment. Keywords – E-commerce in India, Cash on Delivery, Challenges in cash on delivery, COD users, but is still below world averages. This shows the immense potential that the retail category holds in India with online retail filling the distribution and convenience gap. The e-Commerce and allied companies have also turbocharged the e-Commerce growth engine by introducing innovative business models, by introducing technological innovations and by offering convenient payment options most popular being the COD. Cash-on-delivery has been one of the key growth drivers...
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...E-business (Electronic Business), derived from such terms as ‘e-mail’, ‘e-commerce’, is the conduct of business on the internet, not only buying and selling but also servicing customers and collaborating with business partners. History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. 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...
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...China and India External Business Macro Environment Entry Report Group 2 Hugo John MASON; ID: 6513963 Boon Long Tan; ID: 6512494 Sung Jun PARK; ID: 6508247 Yasong ZHAO; ID: 6511938 Word Count: 3000 Table of Contents Introduction 2 China 3 Political Environment 3 Political and Legal System 3 Five Year Plan 3 One Belt, One Road 4 Risk 4 Economic Environment 5 Market Size 5 Currency 5 FDI 6 Socio-Cultural Environment 8 Guanxi 8 Hofstede’s Model of National Culture 9 China Recommendation 11 India 12 Political Environment 12 Political and Legal System 12 Opportunity 13 Risk 13 Economic Environment 14 Market Size 14 Currency 14 FDI 15 Regional Trade Blocs 16 Risk 16 Socio-Cultural Environment 17 Socio-Demographic 17 Trust and Uncertainty Avoidance 17 Human Resources 18 India Recommendation 19 Reference 20 Appendix 25 Introduction In recent decades a global shift has arisen and revolutionized the way businesses operate as we move into a more integrated and interdependent global economy. Known as Globalization, the e-commerce industry has been the crux of such a radical metamorphoses of nations. National economies are no longer self-contained and independent. China, having one of the fastest growing e-commerce markets at 22.6% (iResearch, 2014) has entered the spotlight. Whilst on the other hand, with a user base of over 354 million (Alawadhi, N., 2015) it is no wonder why India’s e-commerce industry...
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...E-commerce is any transaction sum shopping done online on the internet. as we know more and more application are getting online day to day in India. There is a lot of copy of websites which provides deals online to the customers. These web portals provide deals online to the customers. These web portals provide e-commerce solutions to the customers in the competitive rates then available at the malls or the shops in the locality. Since the last one decade peoples are getting attached towards e-commerce site because it provides customers direct to the manufactures removing the mediators hence at the best price. Customers are also finding e-commerce site as to get best bargains deals& snap deal is the latest success story of this type of successful...
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...2.1 THE INDIAN E-COMMERCE SCENARIO E-Commerce refers to commercial transactions conducted electronically on the Internet. The growth and development of e-commerce provides a global market and a wider reach to all. Today, the e-commerce marketplace has become a very crucial part of the economy all over the world. It is creating an entire new economy, which has a huge potential and is fundamentally changing the way businesses are done. It has advantages for both buyers as well as sellers and this win-win situation is at the core of its phenomenal rise. The most popular components of the e-commerce ecosystem in India are as follows: India has an internet user base of about 354 million as of June of 2015.With the internet user base widening at an unprecedented rate and with the increased awareness and adaptability to the internet environment, e-commerce has been growing at a fast pace. The Internet penetration is expected to increase from 32% in 2015 to 59% in 2020, translating to a near-doubling of the Internet user base. It is estimated that India will have almost 320 million online shoppers by 2020 compared with 50 million in 2015. India’s e-commerce market was worth about $3.9 billion in 2009, it went up to $23 billion in 2015 and is expected to cross $30 billion in 2016. About 70% of India's e-commerce market is travel related. However, online retail is growing fast. In 2013, the sales of the e-retail segment were worth US$3.59 billion and it grew to around US$ 5.3...
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...E-Commerce industry Study Objective * To learn about the existing trends in e-commerce industry today * To analyse in depth the benefits and limitations of online transactions of products * To examine the online shopping sites prevalent in Coimbatore such as the mall.coimbatore which is an online shopping store and personal buying assistant in Coimbatore * To observe the future of the industry and recommend improvement ideas Need for selecting the ecommerce Industry India, one of the fastest growing economies presents a world of opportunities to entrepreneurs, investors, and researchers with an interest in the global economy. India’s e-Commerce industry is on the growth curve and experiencing a spurt in growth. With this increased interest comes a surge in demand for facts, trends and indicators. Highly concentrated urban areas with very high literacy rates, a vast rural population with fast increasing literacy rate, a rapidly growing internet user base, technology advancement and adoption and such other factors make India a dream destination for ecommerce players. E-commerce combines web technology with business economics. As of the last 10 years, online visibility for such online enterprises now heavily rely on the relationship between the own online sales platform and Search Engines for improved traffic consisting of presumable customers with the intent of acquiring products or services related to the customers’ needs. In 2008 an Internet behavioural analysis...
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...International Journal of u- and e- Service, Science and Technology Vol.6, No.6 (2013), pp.187-194 http://dx.doi.org/10.14257/ijunesst.2013.6.6.17 E-Commerce or Internet Marketing: A Business Review from Indian Context D. K. Gangeshwer Department of Mathematics, Bhilai Institute of Technology (BIT), Durg, (C.G), INDIA dgangeshwar@yahoo.co.in Abstract This paper deals the conceptual knowledge of search engine marketing (SEM) or ecommerce, literature review, current and future aspects of e-commerce in Indian context. This paper discussed about the top motivator factors of shopping online. The present development would be a valuable addition to researcher and academicians; and useful theory for practitioners, advertisers, and entrepreneurs. Keywords: SEM, Online Marketing or E-commerce, Pay-per-click (PPC) 1. Introduction Khan and Mahapatra (2009) remarked that technology plays a vital role in improving the quality of services provided by the business units. One of the technologies which really brought information revolution in the society is Internet Technology and is rightly regarded as the third wave of revolution after agricultural and industrial revolution. The cutting edge for business today is e-Commerce. The effects of e-commerce are already appearing in all areas of business, from customer service to new product design. It facilitates new types of information based business processes for reaching and interacting with customers like online advertising...
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...State of e-Commerce in India A Research report by for September 2012 Honarable Minister Milinid De- r State of Ecommerce in India - Sept 2012 and e-Commerce are being conceptualized and run today. Social Media is gaining dominance in our and the citizens. We observe that most companies have a social media strategy in place and Cloud based The roll out of 3G and 4G broadband services, the National Broadband Plan and much expected opening of the Retail Sector will certainly usher new business opportunities for e-Commerce in the country. I am happy to note that most of the leading e-Commerce companies are participating in the 2nd ASSOCHAM Conference on e-Commerce to deliberate upon the emerging opportunities in e-Commerce in the country. I thank the ComScore Team for this report and convey my good wishes for the success of this Conference. D. S. Rawat, Secretary General State of Ecommerce in India - Sept 2012 comScore Message India is among the fastest growing online market and has registered a 41% growth in the last 12 months. Internet usage has reached almost 10% penetration in India. With this trend, e-Commerce has shown a very exciting growth trend among travel and retail sites. We expect a similar or even better growth in the coming years as more users come online through easier internet access and wider mobile internet penetration. comScore in India is the preferred partner for audience measurement for publishers, agencies and anyone who...
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...Introduction Businesses are increasingly looking to expand into farther flung overseas markets like India, expecting to achieve rates of growth which are rarely achieved in saturated and depressed Western markets. However, it is important that businesses consider carefully the different types of expansion models available to them and are prepared to take a flexible approach to their international expansion strategy, taking account of local legal restrictions and fast changing consumer habits and expectations. As this briefing note explains, the choice of a corporate expansion model or an arm's length expansion model such as franchising can have a direct impact on a business's ability to engage in e-commerce within the local market. India is a case in point, where, despite the recent growth in online sales, the Indian Government has reaffirmed its policy on e-commerce in the retail sector, which restricts foreign brands from participating in local e-commerce if they hold shares in the Indian operating company. The Need for a Consistent Approach to Multi-Channel Retailing Historically, the majority of brands expanding internationally have been preoccupied with the "bricks and mortar" channel of distribution, based upon an assumption that the target local market is less technologically mature. This may have been a fair assumption as recently as three to five years ago, and it is still holds true in an increasingly limited number of countries. However, improvements in access...
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