Emergence & Impact of E-commerce in India Himanshu Shekhar Himanshu Chaturvedi Boben Philip Umesh Choudhary Praveen Gupta

Emergence & Impact of E-commerce on Indian EconomyE-commerce Introduction

Sale or Purchase of goods and services conducted over devices connected through internet.

Transactions can be between businesses, households, individuals, governments and other public or private organizations.

Goods and services sourced from any place and delivered at desired place.Classification of E-commerce

Consumer to Consumer C2CBusiness to Consumer B2CBusiness to Business B2B

> 1991 Economic Liberalization> 1995 - Introduction of INTERNET in India> Harbinger of E-commerce Emergence of B2B, job searches and matrimonial portals> The Next Big Players Travel sector Indian Railway Catering and Tourism Corporation (IRCTC)> 2005 Volume Online Retail, Social Networking, Tourism Agencies , E-tailing Evolution of E-commerce in INDIA.E-commerce in India is a ~USD11b market, and is estimated to reach U SD20b by 2015, growing at a CAGR of ~ 37% over 2013-15.Google estimates this to further propel to USD70b by 2020 (30% CAGR), of which e-tailing (online shopping of physical goods), which is only ~USD2b in size today, will grow to become a USD45b industry.E-Commerce TodayE-Commerce and Indias GDPE-commerce industry in Indiareached a value ofINR 81,525 crore (US$13.5 billion) in 2014 and will Cross $16 Billion in 2015.

100 percent FDI in business-to-business (B2B) e-commerce.

51% FDI in multi-brand retail.

213 million mobile internet users by June 2015.

Beating out China in coming years.

India: Growth Prospect

Regulatory factors- FDI policies.

Supply side factors- rapid infrastructural growth and online services.

Demand side factors: Rising disposable income Increasing urbanization Booming Gen-Y population

Economics to E-commerce Increase Aggregate supply and demand.

More efficient pricing of supplies.Lower inventory costs.Higher speed and lower cost of nearly all communications.Lower distribution costs

The answers to perennial business questions such as who, where, what is little more challenging to answer in the virtual world where information, and relations are sold as services.With-holding Factors in E-CommerceIndian Ecommerce: Growing under constraints

FDI in B2C: Next Logical Step

Restriction on FDI

Payments and transactions

Compliance framework

Key Drivers for E-commerce

Middleclass urban and semi-urban consumer.

Favourable demographic profile.

Increasing internet penetration, Increasing smartphone usage.

Opening up of Foreign Direct Investment (FDI)

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