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

E Commerce industry Segmentation

B2B

C2C

B2C

Business to Business

Consumer to Consumer

Business to Consumer

•Classifieds

•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

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 Providers

Call CentersFinancial

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

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/

2007 2008 2009 2010 2012 2013 Est. next 10 Years

2.0 3.2 4.06.9 8.5

13.0

56.0

CAGR 49%

B2C & C2C- e-Commerce market size (US$ billion)

81%

19%

Travel Non-Travel

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.

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.

2010 2011 2012 2013

195 217 239 283

166 187 212235156

196249

323

4461

85

122

EU North AmericaAsia RoW

EU North America Asia RoW

14.30%12.10%

28.30%

41.20%

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.

Mobile; 87%

Broadband, 9%

Narrowband; 4%

Global India

26%36%

26%

39%20%

16%14%

6%13%3%

15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs 45 - 54 Yrs 55+ Yrs

21%16% 15% 13% 11%

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

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 as51,000 in 2001

Number of credit and debit cards in India 4.2million and 0.3 million respectively, in 1999

No 3G spectrum auctions till 2010.

Average time spent online by an Indianconsumer per month 12.9 hours in 2006.

Number of users transacting online 3million in 2007.

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 andSmart phone costs

Multiple Payment Instruments

Increased Avg Transaction Value

Increased Payment Gateways with better security layers

Growth of Internet User base

Increased broadbandPenetration & 3G

Declining Internet tariffs

Rising disposable Income

Rapid Urbanization

Need for Convenience

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!!

Thank You