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Ashish JhalaniFounder & CEO – eTailing India
eCommerce OpportunityDomestic & Global
Webinar Structure1. Introduction to eCommerce2. Building Blocks of eCommerce3. Domestic Trends & Opportunities4. Global Opportunities5. Q & A
What is eCommerce ??
What is eCommerce ??• Common Definition - eCommerce (or electronic commerce)
refers to the buying and selling of goods and services via electronic channels, primarily the Internet.
What is eCommerce ??
Perception Reality
eCommerce is only when people buy goods online
eCommerce exists in many forms, such as eTailing, M-commerce, T-Commerce, S-Commerce etc.
eCommerce only happens when you buy online
When you look for the best price for a good online, it constitutes eCommerce. In fact Search and Ads are two of the biggest components of eCommerce
eCommerce is a recent phenomenon eCommerce has been around for over three decades in various forms such as online ordering, electronic catalogues, automated data management systems, payment gateway solutions etc.
Forms of eCommerce
eTailingBuying and selling goods
online thru online sites, marketplaces etc.
M-CommerceBuying or selling of goods
through a mobile device using online payment mechanisms
S-CommerceSocial Commerce using
various aids such as shopping tools, social networks etc.
T-CommerceThe most recent form of eCommerce and refers to
buying goods & services using a TV
Evolution of Modern Retail
Ancient Retail• Based on Barter• Introduction of
Money simplified buying process
• Trade limited to physical touch & accessibility
Intermediate Retail• System based on
large companies & retail stores
• Electronic Payments simplifies buying further
Modern Retail• eCommerce in
multiple forms and formats
• Omni-Channel retail takes over with multiple options across the entire spectrum of services
Modern eCommerce - Formats
B2CLargest form of
eCommerce across the world
Dominated by Large Global
Companies such as Amazon
B2BMostly Regional
with some Global players
Dominated by Companies such as Alibaba.Com
C2CEarliest form of
commerce itself, starting
with barter
Dominated by Large Players such as eBay
G2_Transactions
with the Government
Tenders, Tax Filing, Business Registrations, et
c.,
Marketplaces – Common across all 3 formats
Building Blocks of eCommerce• Business Case
• Viable & Addresses A Real Need
• Technology• Platforms
• Custom Developed
Building Blocks of eCommerce• Payment Options
• Content• Product Merchandising & Product Details• Images & Attributes
• Marketing• Search Engine Optimization• Search Engine Paid & Social Media Marketing• Email Marketing• Affiliate Marketing
Building Blocks of eCommerce• Supply Chain & Distribution Channels
• Customer Relationship Management• Customer Service• Customer Loyalty / Rewards• Customer Feedback
Interesting Facts – eCommerce in India• Approx $1 Billion – Size of Market in India (excluding Travel)• Approx $6 Billion – Size of India’s Online Travel Market• 51% Of All Online Attributed to Tier 2 & 3 Towns• India’s Second Largest Online Population in APAC
China, 55.2% China, 54.0%
India, 9.3% India, 11.5%
Japan, 12.2% Japan, 11.4%
Southeast Asia, 9.4%
Southeast Asia, 9.6%
Rest of APAC, 13.9%
Rest of APAC, 13.5%
Mar-12 Mar-13
Shar
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Interesting Facts – eCommerce in India• India 3rd Largest Internet Population – China 1st & US 2nd
• India’s Online Population Youngest in BRIC (39% between 25 & 34)
• eCommerce Underdeveloped Compared vs. BRIC Peers• Significant Opportunity
• Largest Retail Subcategories – Apparel, Computer Software, Electronics
• Many Categories Still Un-Served
Advantages – eCommerce in India• Conduct Business 24 x 7 x 365• Access to Global Marketplace & Global Customers• Reduce Cost – Real Estate, Cutting Intermediaries• Speed to Market• Increase Brand Awareness• Greater Customer Insights• Limitless Real Estate for Product Selection
India – Challenges & Future
Challenges Reality Future
Internet ConnectivityInternet Connectivity limited and dependent on fixed lines or optic fibres
Wireless internet along with more and more reliance on mobiles to access internet would change the face on online shopping. More Indians own a mobile than a laptop or internet connection
Limited Payment Options
Less than 0.1% of country’s total population and less than 3% of online shoppers own credit or debit cards
M-Commerce, M-Wallet and Cross-Channel payments to release the true potential or eCommerce in the country leapfrogging the need to hold a credit card at all
Touch & Feel Touch & Feel act as a major influencer in buying decisions
Augmented Reality to change the way shopper buy and make decisions
Unlimited Options to Start• Global Marketplaces in India - eBay, Amazon• Domestic Marketplaces –
Flipkart, Snapdeal, Jabong, ShopClues, Infibeam, Yebhi, Pepperfry,and many more
• Business to Business Marketplaces –TradeIndia, IndiaMart, Alibaba, etc.,
• Self Operated & Managed Web Store – Platform or Custom Developed
Global Opportunities - USA
• 15.8% Growth rate in 2012 U.S. e-commerce sales• 27.1% Amazon’s 2012 growth rate
Global Opportunities - USA
• According to report published by Cushman & Wakefield, in 2012 global retail sales edged up 1% while online sales grew 14.8%. According to another report published by Morgan Stanley in January 2013, 6.5% of all
retail sales can be contributed to the online channels.
Global Opportunities - EUROPE
Questions & AnswersQ: We are launching a new product. Its an Electronic Pest Repellent. We would like to promote our product via the
eCommerce route. What is best category to place such a product in? Which sites have the maximum sales volumes for such products?
Q: How many ecommerce players in India can be called successful?
Q: What seems to be more successful in India between retailer and marketplace model and why?
Q: Re vertical players like babyoye /urban ladder more successful than horizontal players- snapdeal
Q: what is relevance of standardization on product identification and classification by the online retail?
Q: how can we improve productivity using e commerce
Q: Use of eCommerce in International Logistics business?
Q: How is a budget decided for starting an SMO strategy for an SME? How do we find that a particular industry is ready for dig mktg?
Q: Learnings and insights for B2B enterprises in e commerce
Q: Better Payment gateways and alternatives