INDEX

CHAPTER PARTICULARS / TITLE OF CHAPTER PAGE

NO. NO.
CH. 1 INTRODUCTION
CH. 2 RESEARCH & METHODOLOGY
CH. 3 LITERATURE REVIEW
CH. 4 DATA ANALYSIS AND DATA INTERPRETATION
CH. 5 CONCLUSION
CHAPTER 1
INTRODUCTION

Meaning Of My Topic
Significance means “Important”.
E-commerce means “the business of buying and selling things over the Internet".
Emerging means “surviving and coming out from a difficult situation” or “Merging”.
Market means “the sum total of all the buyers and sellers in the area or region under consideration”.
In short my topic actually means, the importance of business and selling things over internet in the
surviving difficulties in total no of buyers and sellers under consideration”.

Meaning and Definition of e-commerce in emerging markets:

Information Technology has been playing a vital role in the future development of financial sectors and the
way of doing business in an emerging economy like Bangladesh. Increased use of smart mobile services
and internet as a new distribution channel for business transactions and international trading requires more
attention towards e-commerce security for reducing the fraudulent activities. The advancement of
Information and Communication technology has brought a lot of changes in all spheres of daily life of
human being. Ecommerce has a lot of benefits which add value to customer’s satisfaction in terms of
customer convenience in any place and enables the company to gain more competitive advantage over the
other competitors. This study predicts some challenges in an emerging economy. Keywords: e-commerce,
information technology.
Objectives of the Study

1. To study how e-commerce aid in the economic development of developing countries.

2. To identify the relationship between e-commerce and emerging market.
3. To identify the significant impact of e-commerce on emerging market.
4. To assess the influence of e-commerce in developing an economy.
5. To study the impacts of e-commerce in emerging markets.
6. To study social e-commerce in emerging markets.

Scope/Limitations of the Study

This study is on the significance of e-commerce in emerging markets.

Limitations of study
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data collection (internet, questionnaire
and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.

What is the significance of e-commerce in emerging markets?

E-commerce has significant impact on emerging market. E-commerce has been hailed by many as an
opportunity for developing countries to gain a stronger foothold in the multilateral trading system.
Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly
less.

What is electronic commerce (e-commerce)?

The term electronic commerce (ecommerce) refers to a business model that allows companies and
individuals to buy and sell goods and services over the Internet. Ecommerce operates in four major
market segments and can be conducted over computers, tablets, smartphones, and other smart devices.
Nearly every imaginable product and service is available through ecommerce transactions, including
books, music, plane tickets, and financial services such as stock investing and online banking. As such, it
is considered a very disruptive technology.

 Ecommerce is the buying and selling of goods and services over the Internet.
 It is conducted over computers, tablets, smartphones, and other smart devices.
 Almost anything can be purchased through ecommerce today.
 It can be a substitute for brick-and-mortar stores, though some businesses choose to maintain both.
 Ecommerce operates in four market segments, including business-to-business, business-to-
consumer, consumer-to-consumer, and consumer-to-business.
Ecommerce has helped businesses (especially those with a narrow reach like small businesses) gain
access to and establish a wider market presence by providing cheaper and more efficient distribution
channels for their products or services. Target (TGT) supplemented its brick-and-mortar presence with an
online store that allows customers to purchase everything from clothes and coffeemakers to toothpaste
and action figures right from their homes.

Ecommerce operates in all four of the following major market segments. These are:

 Business to business (B2B), which is the direct sale of goods and services between businesses
 Business to consumer (B2C), which involves sales between businesses and their customers
 Consumer to consumer, which allows individuals to sell to one another, usually through a third-
party site like eBay
 Consumer to business, which lets individuals sell to businesses, such as an artist selling or
licensing their artwork for use by a corporation

Providing goods and services isn't as easy as it may seem. It requires a lot of research about the products
and services you wish to sell, the market, audience, competition, as well as expected business costs.

Once that's determined, you need to come up with a name and set up a legal structure, such as a
corporation. Next, set up an ecommerce site with a payment gateway. For instance, a small business
owner who runs a dress shop can set up a website promoting their clothing and other related products
online and allow customers to make payments with a credit card or through a payment processing service,
such as PayPal.
Special Considerations History of Ecommerce

Ecommerce has changed the way people shop and consume products and services. More and more people
are turning to their computers and smart devices to order goods, which can easily be delivered to their
homes. As such, it has disrupted the retail landscape. Amazon and Alibaba have gained considerable
popularity, forcing traditional retailers to make changes to the way they do business.

But that's not all. Not to be outdone, individual sellers have increasingly engaged in e-commerce
transactions via their own personal websites. And digital marketplaces such as eBay or Etsy serve as
exchanges where multitudes of buyers and sellers come together to conduct business.

Most of us have shopped online for something at some point, which means we've taken part in
ecommerce. So it goes without saying that ecommerce is everywhere. But very few people may know that
ecommerce has a history that goes back before the internet began.

Ecommerce actually goes back to the 1960s when companies used an electronic system called the
Electronic Data Interchange to facilitate the transfer of documents. But it wasn't until 1994 that the very
first transaction took place. This involved the sale of a CD between friends through an online retail
website called NetMarket.

The industry has gone through so many changes since then, resulting in a great deal of evolution.
Traditional brick-and-mortar retailers were forced to embrace new technology in order to stay afloat as
companies like Alibaba, Amazon, eBay, and Etsy became household names. These companies created a
virtual marketplace for goods and services that consumers can easily access.

New technology continues to make it easier for people to do their online shopping. People can connect
with businesses through smartphones and other devices and by downloading apps to make purchases. The
introduction of free shipping, which reduces costs for consumers, has also helped increase the popularity
of the ecommerce industry.

Advantages and Disadvantages of Ecommerce

E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a week.

 Increased selection: Many stores offer a wider array of products online than they carry in their
brick-and-mortar counterparts. And many stores that solely exist online may offer consumers
exclusive inventory that is unavailable elsewhere.

But there are certain drawbacks that come with ecommerce sites, too. The disadvantages include:

 Limited customer service: If you shop online for a computer, you cannot simply ask an employee
to demonstrate a particular model's features in person. And although some websites let you chat
online with a staff member, this is not a typical practice.
 Lack of instant gratification: When you buy an item online, you must wait for it to be shipped to
your home or office. However, e-tailers like Amazon make the waiting game a little bit less
painful by offering same-day delivery as a premium option for select products.
 Inability to touch products: Online images do not necessarily convey the whole story about an
item, and so e-commerce purchases can be unsatisfying when the products received do not match
consumer expectations. Case in point: an item of clothing may be made from shoddier fabric than
its online image indicates.
Pros
 Is convenient
 Offers a wider selection of goods and services

Cons
 Limited customer service
 Lacks instant gratification
 Products can't been seen or handled until delivered

Example of Ecommerce

Amazon is a behemoth in the ecommerce space. In fact, it is the world's largest online retailer and
continues to grow. As such, it is a huge disrupter in the retail industry, forcing some major retailers to
rethink their strategies and shift their focus.

The company was launched its business with an ecommerce-based model of online sales and product
delivery. It was founded by Jeff Bezos in 1994 as an online bookstore but has since expanded to include
everything from clothing to housewares, power tools to food and drinks, and electronics.

Company sales increased by 38% in 2020 from the previous year, totaling $386.1 billion compared to
$280.5 billion in 2019. Amazon's operating income also jumped to $22.9 billion for the 2020 fiscal year
from $14.5 billion in 2019. Net income rose from $11.6 billion in 2019 to $21.3 billion by the end of
2020.

The company also expanded beyond ecommerce, providing cloud storage services, video and music
streaming, electronic devices (such as Alexa, the personal assistant, and its Fire TV digital media player).

HOW DIGITAL MARKETING IS HELPING E-COMMERCE TO

GROW

Digital marketing has penetrated into every field. The primary reason behind this phenomenon is that
business processes are evolving very quickly and there are a lot of experimentation and changes done
in the industry. We are getting diverted by one or the other upcoming trends. Coming to consumers, we
can’t pretend about them as their behaviour is changing by every minute. Digital marketing as a
mechanism can easily adapt to these changes.

Background of the study

E-commerce, is more than just electronics and commerce added together. It represents an entirely new way
of doing business over a medium that changes the very rules of doing business. It is therefore, far more
about strategy and business management than it is about technology. E-commerce and the internet, if
correctly utilized for development, can be instruments for ensuring future sustainable economic growth.
Throughout the world, the profound impact of electronic commerce in the economics and societies of the
glob will no doubt improve economic efficiency, competitiveness, and profitability (for those engaging in
e-commerce) and, therefore result in the development of the information society. E-commerce and the new
emerging digital technologies and services can be tools for development and help improve the livelihood of
millions across the globe, by linking up remote regions and bringing together scientist, administrators
development professionals, managers, and people into projects and programmes to promote economic and
social development
The Internet revolution was really about people customer and fundamental shift of market power from the
seller to buyer. In the new economy customers expectations are very different than before. A company
understanding of this difference and its ability to capitalize on it will be the key to success. The web, the
internet and emerging computing and communication technologies have redefined business erasing
traditional boundaries of time and geography and creating new virtual communities of customers and
suppliers with new demand to product and services. E-commerce only forms a fragment of e-business.
Earlier companies had web sites displaying the company products etc. then they started to use the e-
commerce as one of the distribution channel in addition to the existing system for sales that is e-commerce.
The term Electronic commerce or e-commerce consists of all business activities carried on with the use of
electronic media, that is, computer network. It involves conducting business with the help of the electronic
media, making use of the information technology such as Electronic Data Interchange (EDI). In simple
words, Electronic commerce involves buying and selling of goods and services over the World Wide Web.
Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to
someone sitting miles apart just by click of a mouse. Shipping method is generally used for the delivery of
the goods ordered. Every Bank which is highly leading now performs their transaction through computer
and computer is not only the concept can make off the transaction automatic. All the commercial
application now transfers to the concept of e-commerce and is one of the very important aspects for
carrying bank transactions falsity. In the commercial world surrounded by highly competitive and volatile
market conditions, any new concept or technology would be acceptable only if it provides strong benefits
to all concerned. Ecommerce offers some distinct advantages. The E-commerce is more than just
electronics and commerce added together. It represents an entirely new way of doing business over a
medium that changes the very rules of doing business. It is therefore, far more about strategy and business
management than it is about technology (ILO, 1999). E-commerce and the internet, if correctly utilized for
development, can be instruments for ensuring future sustainable economic growth through the promotion
of retail businesses in Nigeria. Throughout the world, the profound impact of electronic commerce in the
economics and societies of the globe will no doubt improve economic efficiency, competitiveness, and
profitability (for those engaging in e-commerce) and, therefore result in the development of the
information society. E-commerce and the new emerging digital technologies and services can be tools for
development and help improve the livelihood of millions across the globe, by linking up remote regions
and bringing together scientist, administrators development professionals, managers, and people into
projects and programmes to promote economic and social development (Goldsmith & McGregor, 2000).
The general category of e-commerce can be broken down into two parts which are E-merchandize and E-
finance.
E-merchandiseis area that concerns the retail business and the focus of this study. E-merchandize involves
selling goods and services electronically and moving items through distribution channels, for example
through internet shopping for groceries, tickets, music, cloths, hardware, travel, book, flower or gifts.
Ahmed (2001) reported that the enormous flexibility of the internet has made possible what is popularly
called e-commerce, which has made inroads in the traditional method of business management. All facets
the business tradition with which we are accustomed in physical environment can be now executed over
the internet including online advertising, online ordering, publishing, banking, investment, auction and
professional services.
E-commerce involves conducting business using modern communication instrument: telephone, fax, e-
payment, money transfer systems, e-data inter-change and the internet. E-commerce is not only a new
technology and a new frontier for global business and trade, it is also still evolving. It is essential, therefore
for Nigerians to understand in detail what is e-commerce, what are their challenges, and opportunities it
holds, lastly what can be done to harness the benefits from e-commerce. All these are being focused upon
in this study.
It is important to elaborate on the definitions of e-commerce as that will help determine the scope of the
technology and how it can be applied into retail business. E-commerce has been simply defined as
conducting business on-line. The organization for economic cooperation and development (OECD) defines
electronic commerce as a new way of conducting business, qualifying it as business occurring over
network which use nonproprietary protocols that are established through an open standard setting process
such as the internet (OECD, 1999). This definition distinguishes it from electronic data interchanges (EDI)
type proprietary based networks or intranets that were not based on an open (and therefore, not cost
effective information infrastructure) like the internet. In the WTO work programme on electronic
commerce, it is understood to mean the production, distribution, marketing, sales or delivery of goods and
services by electronic means. A commercial transaction can be divided into three main stages; the
advertising and searching stage, the ordering and payment stage and the delivery stage. Any or all of these
may be carried out electronically and may, therefore, be covered by the concept of electronic commerce.
Broadly defines electronic commerce encompasses all kinds of commercial transaction that are concluded
over an electronic medium or network, essentially, the internet.
First, portability improves bottom line of and organization. And secondly expanded market share, some
component can be handled by multiple customers at the same time.

Statement of the Problem

A study by the United Nations Conference on Trade and Development (UNCTAD) has shown that SMEs,
while generally lagging in ICT, have the most to gain from increases in productivity thanks to e-commerce.
SMEs, however, actually run the risk of missing opportunities in both productivity and profitability by not
engaging in e-business.

Significance of the Study

E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger
foothold in the multilateral trading system. E-commerce has the ability to play an instrumental role in
helping developing economies benefit more from trade. Unlike the requirements necessary to run a
business from a physical building, e-commerce does not require storage space, insurance, or infrastructure
investment on the part of the retailer. The only pre-requisite is a well-designed web storefront to reach
customers. Additionally, e-commerce allows for higher profit margins as the cost of running a business is
markedly less.

Definition of terms
E-commerce
It is the buying and selling of goods and services or the transmitting of funds or data, over an electronic
network, primarily the internet. These business transactions occur either as business-to-business, business-
to-customer, customer-to-customer or the customer-to-business.
ICT
Information and communication technology (ICT) is another/extensional term for information
technology (IT) which stresses the role of unified communications and the integration
of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise
software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and
manipulate information.

Economic development
Economic development is the process by which a nation improves the economic, political, and social well-
being of its people. The term has been used frequently by economists, politicians, and others in the 20th
and 21st centuries.

E-commerce in India
India has an Internet user base of about 696.77million as of May 2020, about 40% of the
population. Despite being the second-largest user base in world, only behind China (650 million, 48% of
population), the penetration of e-commerce is low compared to markets like the United States (266 million,
84%), or France (54 M, 81%), but is growing, adding around 6 million new entrants every month. The
industry consensus is that growth is at an inflection point.
In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities. Demand for international consumer products (including long-tail items) is growing faster than
in-country supply from authorised distributors and e-commerce offerings. Long tail business strategy
allows companies to realize significant profits by selling low volumes of hard-to-find items to many
customers, instead of only selling large volumes of a reduced number of popular items. The term was first
coined in 2004 by Chris Anderson.
In 2017, the largest e-commerce companies in India were Flipkart, Snapdeal and Amazon.In 2018,
Amazon beat Flipkart and was recorded the biggest ecommerce in India in terms of revenue. In 2020,
Flipkart heavily outsold Amazon by almost two to one by sales during festive retail season.

MARKET GROWTH AND SIZE

India's e-commerce market was worth about $3.9 billion in 2009. As per "India Goes Digital", a report by
Avendus Capital, the Indian e-commerce market is estimated at 28,500 Crore ($6.3 billion) for the year
2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India
had a growth rate of 22% over the next 4 years and reach 54,800 crore ($12.2 billion) in size by 2015.
Indian e-tailing industry is estimated at 3,600 crore (US$800 million) in 2011 and estimated to grow to
53,000 crore ($11.8 billion) in 2015. The market went up to $12.6 billion in 2013. In 2013, the e-retail
segment was worth US$2.3 billion. About 79% of India's e-commerce market was travel related in 2013.
According to Google India, there were 35 million online shoppers in India in 2014 Q1 and was expected to
cross 100 million mark by end of year 2016.
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms
of sales. Overall e-commerce market had reached 1,07,800 crores (US$24 billion) by the year 2015 with
both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH
recharge with nearly 1 million transactions daily by operator websites. Year 2016 also saw online sales of
luxury products like jewellery also increased. Most of the retail brands have also started entering into the
market and they expect at least 20% sales through online in next 2–3 years.According to Google India
Research in 2016, by 2021 India is expected to generate $100 billion online retail revenue out of which $35
billion will be through fashion e-commerce.
The ecommerce industry was reported at $24 billion in 2017 and was recognised as the fastest growing
industry in India. The ecommerce market grew to $38.5 billion in 2018. It is estimated that one in every
three Indian shops via smartphone and online retailers deliver to 20,000 pin-codes out of the 100,000 pin-
codes in India. As per Goldman Sach, India's e-commerce industry will reach $99 billion in size while
online retail is expected to more than double to around 11% by 2024 from 4.7% in 2019 while increasing at
27% compound annual growth rate (CAGR). The online grocery segment that is below $2 billion will
reach $29 billion in size by 2024. Online grocery orders will grow from 3,00,000 per day in 2019 to more
than 5 million per day by 2024. Non grocery eCommerce penetration will be 16.1 percent by 2021.
As per property consultant Colliers International, the demand for warehousing of 5,000 to 10,000 square
feet size will increase due to COVID-19 lock-downs which lead to a surge in online orders of essential
items for same day delivery especially in tier-1 cities like Mumbai, Kolkata, Bengaluru, Chennai and New
Delhi. Flipkart will debut a hyperlocal service called Flipkart Quick in Bengaluru to start 90 minutes
deliveries. Amazon observed spike in page views with four times increase in “Add to Cart” during the
lockdown, leading to doubling of sales. It also started selling auto insurance in partnership with Acko
General Insurance which is available to users through Amazon app and mobile website. With opening of
10 new warehouse, the count of Amazon warehouse in India stands at 60 across 15 states that has an area
equivalent to more than 100 football fields.
Report from software as a service (SaaS) provider Unicommerce shows increasing penetration of e-
commerce beyond tier-1 cities with major growth coming from tier-2 and tier-3 towns/villages due to
increasing vernacular language content and improving last mile delivery. Consumers are also diversifying
their purchasing option from large scale e-commerce channels like Amazon or Flipkart to specific retail
brand websites. As per Goldman Sachs, three or four players can co-exist in the e-commerce space given
the size of India but travel, food delivery, ride-hailing services will see a maximum of two players
capturing the market. Reliance Jio will increase competition in grocery, fintech, online retail, food
delivery. From February 2020 to June 2020 during the Covid19 lock-down period, e-commerce increased
by 117% with the delivery of only essential supplies that is now bigger than the pre-Covid19 level. Flipkart
surpassed 1.5 billion visits per month with 45% growth in monthly active user while 30% growth in
transaction per consumer. Tier-3 markets are showing 53% year on year growth with higher internet
penetration and connectivity. Kinetic Green started selling electric auto rickshaw and golf carts online
mainly in eastern and northern parts of India with a revenue of 75 crore in 2019 which now stands at
100 crore as of August 2020. E-commerce helped Nestlé increase sales at a rate of 122% which
contributes to 3.6% of overall sales during Q2 of 2020-21. Apple Inc. is opening online channel to sell
products in India for the first time during August 2020 to target the festival seasons.
MERGERS AND ACQUISITION
According to a report by Grant Thronton, as much as US$2.1 billion worth of mergers and acquisitions
were inked in 2017 in the booming Indian e-commerce industry. Here is the list of Mergers &
Acquisitions which happened in India over a period of time:
MERGER OR ACQUISITION TABLE
DATE MERGER / COMPANIES INVOLVED COST
ACQUISITION

May 2014 Acquisition Flipkart acquires Myntra US$300 Million

March Acquisition Snapdeal acquires Unicommerce Undisclosed

2015

April Acquisition Snapdeal acquires FreeCharge US$400 Million

2015

April Acquisition Flipkart acquires PhonePe Undisclosed

2016

June 2016 Acquisition Myntra (owned by Flipkart) acquires Jabong US$70 Million

July 2017 Acquisition Axis Bank acquires FreeCharge US$60 Million

May 2018 Acquisition WalMart acquires Flipkart US$16 Million

January Acquisition Zomato acquires Uber Eats US$350 Million

2020

SOCIAL COMMERCE IN EMERGING MARKET

Understanding the landscape and opportunities for mobile money

The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with
over 350 companies in the broader mobile ecosystem, including handset and device makers, software
companies, equipment providers and internet companies, as well as organizations in adjacent industry
sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los
Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
The GSMA’s Mobile Money programme works to accelerate the development of the mobile money
ecosystem for the underserved.In emerging markets, social commerce has the potential to improve
economic livelihoods for a large amount of the population—particularly within the informal sector, where
most people make their living.1 In doing so, it is becoming an important element of the digital economy:
by 2020, global social commerce sales are expected to triple to $720 billion.2 To better understand the
social commerce business models and the potential opportunities for mobile money providers, the GSMA
recently commissioned a global landscape analysis of twenty social commerce players. Key findings from
this analysis include: • Social commerce positively benefits underserved merchants and customers. Social
commerce enables small merchants and entrepreneurs to build an online presence at minimal cost and
complexity; and for those just starting, it can provide an easy way to set up a business and acquire an initial
customer base. Low-income, rural and price-sensitive customers can benefit from lower prices and better
bargaining power through features such as group buying. • Successful platforms integrate common best
practices into their offerings. These include providing personalised and seamless customer journeys;
creating online user communities that align with the shopping behaviours of the target demographic;
establishing user trust through social interactions and aftersales support; empowering users to share and
influence; and using influencers to endorse products and increase customer bases. • Social commerce acts
as either an e-commerce ‘intermediary’ or a ‘super app’ to varying degrees. Six platform types were
identified depending on a player’s core focus on either social media or e-commerce. Intermediaries
generally serve as a bridge between users and e-commerce or social media. These include international
social media platforms, group buying platforms, and social reselling platforms. Super apps integrate
several social and e-commerce features—such as buying, selling and chatting—on a single platform or
interface. These include product review platforms, social commerce support platforms and e-commerce
players from large groups. • Marketing fees and sales commissions are the most common revenue sources.
While there are four main revenue sources, most social commerce players leverage at least two. Players
with a social focus are more likely to rely on marketing fees as a primary revenue source, while players
with an e-commerce focus are more likely to leverage sales commissions. Some players also charge
account fees or payment and logistic fees. • Mobile money providers can play several roles in social
commerce and help formalise the sector. In most markets, social commerce is not yet designed end-to-end,
requiring support for logistics, delivery, and payments, and leading to frictions in the online journey
between merchants and customers. Mobile money providers can either leverage their existing assets to
address these frictions or offer new features and tools built in-house or through partnerships with third-
party providers but must ensure they fully understand the market dynamics. Providers should develop one
social commerce feature and over time integrate other features and tools. Similarly, providers should
prioritise features based on their ease of implementation and the potential user impact in their market.
Where feasible, providers can partner with third parties to quickly test and launch these solutions.

STRATEGIES FOR EXPANDING INTO EMERGING MARKETS WITH

E-COMMERCE
E-COMMERCE GOES GLOBAL

The growth in e-commerce over the past five years has transformed consumer spending and shopping
habits, affecting emerging and developing countries product pricing, consumer behaviour, lifestyle and
products and goods availability. According to Euromonitor International, global e-commerce is projected
to grow at a constant value Compound Annual Growth Rate (Cagr) of 12% globally from 2015 to 2020. In
contrast, store-based retailing, which continues to be the biggest channel by value, will grow by a Cagr of
just 2% over the same time period. To date, much of this growth has taken place in developed markets;
however, as more consumers in emerging and developing countries gain access to the internet and
consumer and investor interest increases with intensifying retailing competition, e-commerce will create a
better business environment. Emerging market economies will become an increasingly attractive
destination for foreign players looking to expand their global footprint and enhance their product and
service offerings, impacting prices, product quality, variety and the range of services available online. With
internet use growing rapidly across most of the world, retailers and manufacturers seeking to broaden their
reach have an unprecedented opportunity for international expansion through digital channels. Choosing
the best markets for an internet-based expansion and developing an effective model for a chosen market
requires careful analysis of the opportunities and consumer expectations across strategy, payments and
logistics to ensure effective market entrance and prevent expensive missteps. This white paper presents
five strategic considerations for assessing and expanding into emerging and developing countries,
identifying market characteristics and indicators specific to emerging and developing countries that
retailers and manufacturers should understand when selecting a market for entry. Case studies demonstrate
how successful retailers have effectively entered emerging markets by navigating local conditions and
consumer preferences.

E-Commerce Sales Outlook for Emerging and Developing Markets: 2015–2020

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2013 2014 2015 2016 2017 2018 2019 2020

KNOW YOUR TARGET MARKET: DEMOGRAPHIC AND INCOME

Understanding local consumers is essential for shaping a successful strategy. Home to over 85% of the
world’s population and totalling six billion people in 2016, emerging markets will continue to drive global
disposable income growth through 2030. As a result of rising income and the expansion of the middle
classes, emerging and developing countries represent attractive opportunities for consumer goods
companies. And internet penetration will continue to grow: Euromonitor International projects the
percentage of the population with internet access in emerging and developing countries will increase from
34% in 2015 to 45% in 2020 and 50% in 2025. This increased access is changing and informing
consumers’ decision-making process along the path to purchase. For this reason, it is imperative that
companies consider how demographic factors differ between emerging and developed markets. Age: Rise
of the millennial consumer A natural and gradual shift in consumer demographics will continue to shape
commerce around the globe. Members of the millennial generation, also known as Generation Y or the
“Echo Boomers”, were born between 1980 and 1994 and will take centre stage as consumers in the future.
In fact, millennials represented over 1.5 billion people in emerging markets in 2015. In both developed and
emerging markets, the demographic cohort following Generation X is the first generation to come of age
using digital technology and services, making them a prime audience for retailers to reach through the
internet. For this reason, it is important for companies to understand how to target this segment. Across
many markets, this generation is, on average, more educated, better able to multi-task and has had greater
exposure to the world of information through the internet when compared with preceding age groups.
Despite the fact that baby boomers are currently the largest generation of active workers, millennials have
increasingly more purchasing power and decision-making influence in economies worldwide.
China and India represent the biggest markets of millennial consumers, with over 600 million people
combined in 2015—twice the size of the total US population. Millennials in countries such as Indonesia,
Brazil, Russia and Mexico accounted for over 25% of the total population in each country in 2015. Given
the prominence of this demographic in years to come, it is critical for companies to know how this
generation makes decisions along the purchasing path. Having grown up with the internet, millennials are
highly attached to their smartphones, which they use for browsing, researching products and services,
conducting price comparisons and when companies create a trusted payment environment and comfortable
user experience, completing purchase transactions.

60%

50%

40%

30%

20%

10%

0%

Income: Expansion of the middle class

In 2016, there will be more than 1.1 billion households with an annual disposable income over US$10,000
(in purchasing power parity terms) across major emerging markets and developing countries. The
expansion of the middle class in these countries continues to bring a new way of living. There is a clear
disparity among the world’s largest emerging markets and the average incomes of their middle income
households from 1995 to 2015. Saudi Arabia, for instance, had the highest average disposable income at
US$33,393 in 2015, while Ukraine had only US$3,086—a difference of over US$30,000. At the same
time, China has aggressively grown its average disposable income with 308% (or US$2,337 to US$9,532)
period growth. Similarly, countries like Kazakhstan and Vietnam increased their disposable income by
317% and 107%, respectively, in the last 10 years. These disparities demonstrate how consumer conditions
vary significantly across emerging and developing countries and highlight the importance of tailoring retail
sales strategies to suit market-specific conditions. For example, retailers and manufacturers should
approach consumers in Brazil differently from those in India.
Average Disposable Income Climbs across Emerging Markets

40000

35000

30000

Saudi Arabia
25000 Malaysia
Kazakhstan
Argentina
20000
Chile
Poland

15000 Turkey
Mexico
Romania
10000

5000

0
1995 2015 2025

Internet penetration rates

Consumers connecting online Understanding if—and how—consumers access the internet is a second early step for
developing an e-commerce strategy. Access to the internet varies significantly across emerging markets, and
companies seeking to target consumers in these countries will need to understand local internet conditions to develop
an effective strategy for that market. For example, in 2015, the United Arab Emirates had the highest number of
people using the internet at 92% of the population; by contrast, the internet usage rate remained below 50% in
Mexico, Ukraine, Peru, the Philippines and Vietnam in that same year. Many emerging markets are experiencing
rapid change in connectivity: from 2010 to 2015, Chile, Russia and Argentina saw the fastest internet penetration
increase, from an average of 40% of the population using the internet to an average of 70%. In places where this
growth has taken place very rapidly, many consumers are accessing the internet for the first time—and for many of
the newly connected, the idea of shopping online may not yet be intuitive. Further, shopping online versus in-store
presents different “risks” to consumers, including a greater perceived threat of payment fraud, the possibility that a
product will not meet the consumer’s expectations, or that the product will not arrive at all. Retailers in markets
where perceived risk is a barrier will need to work to build greater trust with consumers before they feel comfortable
shopping online.
Impact of e-commerce on emerging market

The internet revolution is really about customers, suppliers, groups, organisations, government, and the
general public. It has created fundamental shift of market power from the seller to buyer taking into
considerations provisions guiding business transaction on the internet. In the new economy customers
expectations are very different than before. A company understanding of this difference and its ability to
capitalise on it will be the key to success. The web, the internet and emerging computing and
communication technologies have redefined traditional boundaries of business in relation to time,
geography and creating new virtual communities of customers and suppliers with new demand for products
and services. Electronic commerce (EC) has been recognized globally particularly in the developed
markets as a mechanism for business organisations to reach global markets and guiding a wide spread of
customers in different geographical locations.

The adoption of e-commerce is widespread and also regarded as an essential tool for the efficient
administration of any organisation and in the delivery of services to its clients. According to Laudon and
Laudon (2013) the trend of e-commerce began in 1995. It requires the digital goods for carrying out their
transactions. Digital goods are goods that can be delivered over a digital network. E-commerce is rapidly
transforming the way in which enterprises are interacting among each other as well as with consumers and
governments. As a result of changes in the landscape of ICTs, e-commerce is now growing rapidly in
several emerging markets and developing economies (UNCTAD, 2015).

E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger
foothold in the multilateral trading system. E-commerce has the ability to play an instrumental role in
helping developing economics benefit more from trade (WTO-2013). The growing use of the Internet,
tablet devices, and smart phones coupled with larger consumer confidence will see that e-commerce will
continue to evolve and expand. The adoption of e-commerce in Nigerian business organisations has
increased since the users of internet in Nigeria has grown from 0.1% in 2000 to 29.5% of its population in
June 2010 and still has the potential to grow higher (Ayo, Adewoye and Oni, 2011). According to Tunde,
(2013) Nigeria recorded an estimated 25 per cent growth in online shopping with revenues valued at N62.4
million in 2011.

E-commerce refers to the use of communications technology particularly the internet to buy, sell and
market goods and services to customers. The Internet has brought about a fundamental shift in national
economies that are isolated from each other by barriers to cross-border trade and investment; isolated by
distance, time zones and language; and isolated by national difference in government regulations, culture
and business systems (Mohammad, 2004).

Electronic commerce has facilitated the emergence of new strategies and business models in several
industries in developing countries, Nigeria inclusive. Significant changes are happening in supermarket
retailing with the introduction of online shopping, especially in terms of channel development and
coordination, business scope redefinition, the development of fulfillment centre model and core processes,
new ways of customer value creation, and online partnerships. In fact the role of online supermarket itself
has undergone some significant changes in the last few years (Irene Yousept, 2004). The electronic
commerce segment of the retail market has witnessed tremendous growth in terms of participation in the
Nigerian economy in the last one year (Adewale, Ayo-Oyebiyi and Adebayo, 2013).

According to Johnson (2012) over 100 firms both local and foreign have shown greater interest in the
sector alleged to worth over $50 billion annually. She said the industry has no doubt opened doors for the
coming generation of young Nigerian entrepreneurs. Electronic commerce industry has no doubt increased
the percentage of local content in products and services as well as increased utilization of local capacity.

Organisations operating in emerging markets like Nigeria cannot compete solely on past record of success
in today’s rapidly changing business environment that is characterized by boundary blurring,
disintermediation and hyper competition. To move ahead of their rivals they need to seek innovation
constantly at every level of activities. Their ability to generate successful business models and strategies as
well as new products, will be the key for their survival in the 21st century. The first step of such innovation
is internet, which made the traditional commerce to evolve in to e-commerce trend. It is surprising
however, to note that despite the enormous benefits derived from e-commerce in the field of business,
trade, industry and commerce, in emerging markets like Nigeria, it is widely speculated by business
analysts and stakeholders that most organisations and business operators hardly embrace the immeasurable
advantages of e-commerce in their businesses.

The present system of business transaction in most organisations in Nigeria is slow as a result of the
manual processes that have become a drawback to operational efficiency as customers are asked to wait
indefinitely on queue or come back another day because of the slow manual process or sometimes. One
wonders what a customer in desperate need of medical attention in the government hospital could do in
such a situation.

Despite advances in computer systems and the acceptance of such technologies by organisations in the
developed economies or markets, the same level of adoption is not evident among several organisations in
developing economies or emerging markets like Nigeria, its adoption is very slow and characterized by
infrastructural problem, government policies issue and so on. It is against this background that this research
study is being carried out to investigate the impact of e-commerce on emerging markets.

Emerging Markets: India, eCommerce Statistics and Challenges

The success of Indian eCommerce has risen to such a degree that the country is now reconsidering its ban
on foreign investments in its eCommerce sector. Amazon and eBay, which are currently only allowed to
function as third-party marketplaces, are anxious for a lift on the ban, which will allow them to sell their
own merchandise. But beyond the opportunities soon to be available to the eBays and the Amazons of the
world, U.S. retailers should also be hopeful for what the future holds in India, the world’s second most
populous country.

To fully understand the eCommerce opportunities happening in India, here are a few statistics to put it into
perspective:

1. India’s e-Commerce market grew by 88 percent in 2013 to USD $16 billion.

2. India’s Internet base, as of August 2013, was at 150 million users, representing about 10 percent of the
country’s total population.

3. Popular products sold in India include those in tech and fashion categories, such as mobile phones,
iPads, accessories, MP3 players, digital cameras and jewelry.

4. Indians spend 8 hours per day online according to a study conducted in 2012.

5. Myntra.com just surpassed Flipkart.com as India’s biggest online retailer with 13.17 million unique
visitors in the month of June 2013.

6. The mobile audience in India is growing with 78 percent of shoppers preferring to shop on mobiles for
deals on purchases and with 60 percent shopping on mobiles to save fuel.

7. About 75 percent of online shoppers in India are 35 years old or younger, although those between the
ages of 35 and 44 show the highest usage.
8. Medium-term growth for India’s economy is positive due to its young population, low dependency ratio,
healthy savings and investment rates, and increasing integration into the global economy.

Although the opportunities are vast, doing business in India still carries some challenges, such as a
reluctance from some of the country’s population to shop online.

“Around 30% of people who buy from retail stores actually research about the product online,” said a
reporter for DazeInfo.com. “However, 25% of people are still skeptical about online security and don’t
share their financial information online. 20% people, who blamed high shipping costs as the main reason,
follow this, while 15% are unsure about the handling of the product during transit and receiving the
product in a good condition.”

The difficult shipping situation is primarily due to India’s underdeveloped infrastructure, a common issue
shared by many emerging countries. India, however, has initiated several infrastructure improvement
projects, which will do much more for the country than just easing the logistics of getting products into
online shoppers’ hands.

“The rural roads programme has built more than 300,000km of new roads in rural areas,” explained
FTAdviser.com. “This has resulted in a roughly 50-100 per cent increase in household income for those
affected. More recently, a plan was announced to build 24 cities along the Delhi-Mumbai Industrial
Corridor by 2040, with phase one scheduled for completion by 2019.”

Additionally, U.S. eCommerce companies will be happy to hear that there are no sales taxes assessed on
goods shipped into India. Furthermore, some goods, such as laptops and other electronic products, aren’t
subject to duty. It’s important, however, to understand that there are indirect taxes like a 1 percent landing
charge for all products entering the country. To get an overview of what fees could be tacked onto imports,
DutyCalculator.com is a helpful resource.

Finally, U.S. businesses wanting to take advantage of the growing e-Commerce opportunities in India must
take the language barrier into consideration.

The Most Common Ecommerce Challenges for Online Businesses

1. The need for online identity verification

2. Delivering an omnichannel customer experience
3. Outshining the vast competition
4. The need to revamp selling tactics
5. Shopping cart abandonment
6. Maintaining customer loyalty
7. The headaches of product return and refund
8. The struggle of competing on price and shipping
9. Competing against retailers and manufacturers
10. The heightened demand for data security

Solutions for the above 10 challenges are as follows

1. The need for online identity verification

When a visitor goes to an ecommerce website and signs up, you need to somehow be sure that this is a legit
person who wants to buy. This way, you'll avoid fraudulent accounts or bots which could result in revenue
losses (especially with cash-on-delivery (COD) purchases).
Solution: Take proper steps to verify online shoppers' information. Always send a verification link when a
customer signs up. With COD purchases, an automated call could even go out to the customer, asking them
to validate the delivery address. Also, use automation to identify fake phone numbers and email addresses
and check whether zip codes match with the state/city.
And of course, look out for signs of suspicious activity. This could take the form of particularly high value
or large orders.

2. Delivering an omnichannel customer experience

One of the biggest problems an online retailer faces is achieving an effective omnichannel customer
experience. Customers expect they can reach out to your brand through any number of touchpoints, such as
your website, phone, email, social media, your store, and more. All of these touchpoints need to be unified.

Creating an omnichannel customer experience in retail allows companies to communicate with customers
on all channels.
In fact, according to ecomdash, any business that isn’t moving toward an omnichannel retailing strategy
will likely be left behind.

Solution: To create an omnichannel strategy that works, think about potential customer needs, and
implement the right customer experience technology. Here are a few steps to follow to solve ecommerce
challenges of this type.
*Identify key channels first. How are your customers reaching out to you? What channels do they prefer?
*Integrate these channels. Use customer experience technology to talk to customers via their preferred
channels (like phone, email, live chat, video call, online help centers or in-app messaging).
*Maintain context. Use interaction history to inform conversations. Unified view features on CX platforms
can offer this ability.

3. Outshining the vast competition

Ecommerce is one of the most competitive industries. Variations in different parameters — costs, service,
supply chain operations, and more — can make a huge difference for customers. Getting and maintaining
your customer base is one of the most tough-to-crack ecommerce challenges.

For example, if one of your competitors strikes a partnership with a delivery app, this may help them get a
greater market share. And that’s even if your prices or products are better.

Solution: Conduct thorough research into competitors and the market to develop your digital marketing
strategy. Invest in promotional offers to help create a better brand presence. Remember that online
businesses with customer loyalty programs, on average, are 88 percent more profitable than those that do
not offer these programs.
Also, invest in better customer service. Furniture retailer Dufresne saw positive results when they took a
step into digitizing support and sales.

4. The need to revamp selling tactics

One of the most pressing customer service issues in ecommerce is catching up to modern customer
expectations. Many companies lack the necessary insight into customer behavior and buying patterns.
Solution: Consider offering your products in prominent marketplaces like Amazon and eBay. These
ecommerce sites already have a vast network of buyers so pitching and branding your product (and
figuring out what works and what doesn't) becomes somewhat easier.
Also, segment your data. Visitor segmentation allows ecommerce companies to identify and communicate
with visitors based on their customer journey, past conversations, geographical location, browsing
behavior, referral page, and much more.

5. Shopping cart abandonment

Shopping cart abandonment is a huge ecommerce business challenge. Even ecommerce giants are not
immune to it.
For instance, when brick and mortar heavyweight Nordstrom started an ecommerce portal, they witnessed
big opportunity losses of ecommerce sales from abandoned carts. The tedious and bug-filled checkout
process was causing customers to flee mid-purchase. This ecommerce problem can’t be ignored.
Ensure your ecommerce shopping cart is optimized and easy to use by enabling a two-step checkout
process.
Solution: Nordstrom had to come up with a new checkout design, turning checkout into a much easier two-
step process.
Consider redesigning your shopping cart, too. Remove bugs or unnecessarily long forms. Offer instant help
tools that customers can use if they get stuck. Visual tools can also help address customer queries during
the checkout process. For instance, if a customer has trouble creating an account, your agents can initiate a
cobrowsing session to show them how to do it.
Applying this simple solution can greatly improve your shopping cart conversion rate.

6. Maintaining customer loyalty

Without customer trust and loyalty, your business is bound to struggle. But, acquiring and maintaining
customers requires massive effort.

One of the reasons ecommerce businesses face a challenge in building customer trust and loyalty is that
often the seller and buyer don’t know or can’t see each other. This makes interactions less personable.
This ecommerce challenge can only be solved through time and effort. Across multiple transactions,
eventually, the company can build this trust and loyalty.

Solution: First make sure your customer service processes are effective, from ordering online to shipping.
Also, consider:
*Displaying your address, phone number, pictures of staff, customer testimonials, and credibility badges
on your website.
*Creating valuable content.
*Making customer service a priority over profit.
*Asking for customer feedback.
*Refining loyalty programs.
Related: Your Ecommerce Information Center: Get free Shopify educational resources to help you grow
your brand and forge strong customer relationships.
7. The headaches of product return and refund

One of the problems faced by customers in online shopping is returning items. A survey by comScore and
UPS, showed 63 percent of American consumers check the return policy before making a purchase and 48
percent would shop more with retailers offering hassle-free returns.

But, when a product is returned, the business suffers a heavy loss in shipment and reputation. Shipping
costs in this case have always been an ecommerce problem to sellers.

A common ecommerce challenge is returns and refunds, make the process easy for both parties.
Solution: You can't avoid having good return and refund policies. But, you can build your policies
carefully and communicate them clearly. Consider the following tips:
*Be transparent. Never hide your policy hoping customers will not see it.
*Use plain English. It's important for these policies to be understandable to everyone, regardless of cultural
background or education level.
*Set expectations. Provide different options for payments and shipping.
*Educate staff. They need to know your return policies to assist customers effectively.
*Be prepared to face the music. If the product is shipped wrong, take extra effort to keep the customer
happy.

8. The struggle of competing on price and shipping

Despite customer experience being the most important thing for consumers, online merchants frequently
compete on price, too. Price competition particularly affects small ecommerce businesses, as mid-sized and
large competitors can often offer products less expensively.

For example, giants like Amazon and Walmart generally have shipping amenities distributed across the
country. Their warehouses allow orders to be shipped from the closest facility. That way, the cost of
distribution decreases and the order arrives really fast.

Solution: This is one of these ecommerce challenges that can make or break a business. It’s hard to thrive
in a competitive market, but you can still find ways to distribute inventory to fulfilment warehouses. You
can also become an extremely resourceful shipper, or find some unique products consumers won't be able
to find elsewhere.

9. Competing against retailers and manufacturers

Many online stores bulk buy products wholesale from manufacturers or distributors, selling them online.
This is the basic business model for ecommerce.

But, due in part to ecommerce's low barrier to entry, product manufacturers and retailers have started
selling directly to consumers, too. The same company that sells your products may also be your
competitor.
For example, ABC Garments sells to your online marketplace and directly to consumers on its website.
Even some of the manufacturers create distributors, making the scenario worse.

Solution: You can’t stop manufacturers selling products directly to customers, but there are a few tactics to
try:
*Give priority to manufacturers less likely to sell directly to customers.
*Offer the product at a lower price or with additional benefits to increase sales.
*Restrict the manufacturer from selling the product directly to customers by setting this out in the contract.
It will not be possible for every manufacturer, but you can work with smaller ones this way.

10. The heightened demand for data security

Security issues can lead to nightmare scenarios. Fraudsters may post spam and infect websites with viruses.
They can potentially gain access to confidential data about your customers' phone numbers, card details,
and more.

A common ecommerce challenge for online retailers is security issues when shoppers are using credit cards
and adding personal information.
Consumers, though, don't care what you do, they expect you to protect them fully. Security shouldn’t be
seen as part of ecommerce challenges — it should be a bare necessity.

Solution: To make sure your site is safe, here are some ideas:
* Manage your own servers.
*Don’t use common FTP to transfer files
*Employ cybersecurity services or engineers
*Have effective verification processes (as we mentioned in #1)
Also, if any developer copies files in an open Wi-Fi network, passwords and other confidential data can be
stolen. By constantly updating the shopping cart, you can minimize the risk of stolen data.

Most content management systems store their data in the database. Developers should take backups at
regular intervals, retrieving the data if stolen.

Ecommerce challenges can be opportunities

Surviving the fierce ecommerce competition requires outstanding strategies. Be prepared to address all
possible ecommerce problems and focus on building a customer-centric culture. This way, you may not
only address customer service issues but you may also find what makes your customers tick, and offer
them an online shopping experience they'll remember.
FUTURE OF E-COMMERCE IN EMERGING MARKETS

E-commerce is the technology which is expected to become more popular in the future. While e-commerce
is the maturing market, emerging economies are poised to become the next mega market as the adoption of
internet rises gradually. Emerging markets are the hotbeds for e-commerce that comes with unique
opportunities and challenges across the regions.

In emerging markets, the e-commerce has been growing exponentially, and at a rate may soon surpass the
developed countries in 2018. As, e-commerce achieves higher penetration rates in developing countries,
and it will overcome obstacles to adopt the high-speed networks which are fast enough for Smartphone and
shipping cost.

Future of Ecommerce in Emerging Countries

These obstacles can only be overcome by better infrastructure and greater scale. As, the popularity of e-
commerce grows in some of the major industry sectors like retail, manufacturing, online businesses,
logistics and supply chains, etc. A larger share of the online population will be purchasing online goods by
2018 in many countries. Around 50% of the population in emerging markets will shop online by 2018,
which is not far from the average penetration of 63% in developed countries.
The growth of E-commerce in Emerging Markets

The future potential growth for e-commerce across the developing world is quite strong enough. The
total annual online retail sales across our markets (Brazil, China, India, Indonesia, Mexico, Russia, Saudi
Arabia, South Africa and Turkey) could reach up to 3.5 trillion and has impacted the companies across
multiple industry sectors like retail, finance, manufacturing, security, and technology. The main drivers
behind this soaring demand for online shopping are the rapid increase in internet access as well as
expanding incomes.

The emergence of e-commerce over past decade has radically transformed the economic landscape and has
found the great amount of increase in the factors that led to the development of the internet. While
developed countries who have been offering e-commerce have shown some impressive performance in
their respective economies.

7 BENEFITS OF ECOMMERCE TO ORGANIATION

Around 50% percent of people in emerging markets will shop online by 2018 which catch up quickly to the
average of 63% in developed countries. For example in India, nearly 2/3 of the internet access is done on
Smartphone whereas in China 3/5 is done. While, China and India are still dominating the e-commerce
market outside the US, companies in Africa, Southeast Asia, and Latin America have helped in the
makeable growth of their respective regions. The current scenario of online marketing in these countries
is:-

China

China is the largest and most innovative retail e-commerce market all over the world. Online retailing in
China is expected to grow from 17% in 2017 to 25% by 2020. Alibaba dominates the e-commerce sphere
in China and in many parts of Asia which accounts for 1/10 of China’s total retail sales.

India

E-commerce has transformed the way business is done in India. Due to the increase in smartphones ad
mobile phone, the online shopping has resulted to rise in India gradually. Flipkart and Snapdeal are the two
most dominating online stores dealing in India. The value of e-commerce market is expected to cross $50
billion by the year 2018.
Africa

In Africa, some of the countries like Kenya, South Africa, Nigeria etc are experiencing information and
communication technology revolution which is increasing the access to mobile banking. Over 60% of
Africa has mobile phone coverage and over 10 times as landline phone in use. Alongside, a growing
middle class in Africa, e-commerce growth is creating the foundation around each
region.

Latin America

By 2019, 15.1 million people in Latin America are expected to buy goods and services through online
which is a dramatic increase from 12.1 million in the years 2016. According to the survey, it is clear that
the e-commerce market for Latin America is still smaller than Asia or other countries.
E-commerce Drivers in Emerging Markets

With the use of e-commerce, accelerating on the back of improved internet penetration in emerging
markets, it is important to understand the specificities of customers and how they approach for online
shopping. Unlike, in most advanced economies, both the choice and range of goods offered by web
retailers in developing markets are limited.

To provide an expansive range of payments options is also the key factor which reaches to a wider
audience, as most of the emerging nations are significantly under banked. Some of the e-commerce drivers
in emerging markets state that:-
  Choice and range enhanced by global shipping

There are many retailers in developing countries who have limited stock of goods. Due to which domestic
e-commerce in some of the regions can, therefore, be limited in terms of international products. For ex-
China has low-cost wealth for fashion and electronic products, but if we search for specific types of
authentic brands such as Gucci handbags, etc can be difficult.

Nonetheless, the segment faces challenges and remains held on at the border controls during busy festive
periods and the lengthy return time for damaged products.

 Emerging consumers more active in social media shopping

Although, the use of Smartphone and mobile phones or laptops or desktops boosts up the internet
penetration rates, emerging market consumers are well ahead of their counterparts by using the handset to
shop. The importance of mobile phones is a necessity rather than a choice to shop.

Many emerging markets in Asia, Pacific, Africa, etc are mobile first enabled device accessed by
consumers. Laptops or desktop are simply found in much fewer homes rather than developed countries.

 A range of payments to server underbanked shoppers

Many emerging markets have a large number of underbanked populations. In Brazil, more than 15+
population held with no bank accounts. In order to reach a wider audience, online retailers should provide
as many payment options as possible for their customers so that their customers do not face these
disruptive issues.

Whereas, in countries like USA & UK payments are primarily be carried out online via bank card. China
accepts stand-alone, mobile phone credit card and of course cash on delivery. The online retailer's primary
goal must be to survive in cash driven environment which still dominates the most of emerging markets.
Challenges Faced by E-commerce in Emerging Markets

It is easy to connect with new customers by expanding into new international markets especially with the
help of online channels. For e-commerce portal to achieve the growth in new markets, they must use local
languages to communicate & connect with the customers. Indeed, nearly 60% of customers spend their
time more on e-commerce websites.

But companies must also look at some of the challenges when viewing international expansion
opportunities. Here are several key challenges that are faced by e-commerce in emerging markets:-

 Technical infrastructure

To launch sites in international markets does not mean that those websites must be hosted by servers in
those markets. Many times, it is not possible due to the local infrastructure limitations. Latency issues are
usually common when robust solutions are used which smartly distribute the load of a server across large
regions such as Europe.

 Logistics status

Internet and e-commerce have ushered in the era of untold changes in culture, conversation, and
consumption.According to the survey, a provider for international services for businesses, savvy
companies that ship overseas, have increased their revenue up to 17%. Further, some of the international
markets are famous for local corruption.
  In-market customer support

Companies keen to expand their business in international markets, but they must not forget that customer
support is the most vital aspect of their business. If your business provides customer support to your
customers through email or phone call or live chat, etc it must deploy a localized version for the new
consumers too.

 Relevant Payment method

Most of the payment providers by market allow for simple adoption in CRM platform. You must look for
the partner who can identify the proper payment methods for each market. Therefore, there must be proper
arrangement for payment options for your business and customers too.

E-commerce booms in emerging markets

E-commerce continues to soar in emerging markets, driven by growing middle classes, increased internet
penetration, and the expansion of mobile commerce.

The e-commerce potential of developing countries has long been clear. A 2015 survey conducted
by Credit Suisse Research Institute on the latest emerging consumer showed that the overall annual online
retail sales across surveyed markets – which included China, Brazil, India, Mexico, South Africa, Russia,
Saudi Arabia and Turkey – could reach $3.5 trillion USD as e-commerce spending converges with existing
levels in developed countries. In addition to the rapid rise in internet access, other factors propelling online
retail are expanding incomes, which are resulting in a larger emerging middle class shopping online for
products and services.
Mobile commerce leads the way in emerging markets

The majority of consumers from emerging markets are predominantly making online purchases through
smartphones rather than by means of the fixed-line-based internet, due to the fact that in regions which
include Asia Pacific, Latin America and Africa, mobile handsets are the first web-enabled device the
majority of the populations have access to. Already fully established e-commerce markets may have much
higher mobile device counts and internet access, however, consumers in developing countries make greater
use of smartphones to shop compared to their wealthier counterparts.

According to the survey conducted by Credit Suisse, if internet usage across the developing countries
reaches the levels found in developed countries, this would result in an additional one billion internet users
in the nine countries surveyed, with India and China likely to have the largest number of prospective
consumers to this projection. At the time the survey was conducted, two-thirds of the internet access was
through smartphones in India, and close to three-fifths in China. This indicates the importance of having a
well-thought-out mobile commerce strategy for companies planning to benefit from the ongoing e-
commerce boom in emerging markets.

Current developments

Although developing countries still need to catch up with developed countries in terms of e-commerce
infrastructure, they are likely to see stronger sales growth in the future. Because of this, the global e-
commerce landscape may change rapidly over the course of the coming years.

According to LSE’s Emerging Markets Forum:

“While China and India continue to dominate the e-commerce market outside of the US, companies in
Africa, Southeast Asia, and Latin America have helped spur growth in their respective regions and should
be watched as potential global competitors in this space.”

A good example is Indonesia, which has set itself apart as a mobile-first country. It was recorded that in
2015 more than 70% of Indonesia’s online sales were made through mobile devices. Latin America’s e-
commerce market, meanwhile, reached $100 billion in 2018 and is expected to grow by 25% to the end of
2021. With three Latin American nations (Brazil #2, Mexico #6, and Argentina #8) in the top 10 countries
overall for total internet usage, yet with rates of online shopping that lag behind those seen in the United
States and Canada, the fundamentals are in place for further growth.

Source: Latin American Business Stories/Americas Market Intelligence

Developing countries currently present a variety of unique opportunities in maturing to some of the biggest
e-commerce segments. Their shortcomings, such as payment challenges and poor logistics infrastructure
mean there is also significant untapped potential, which if tapped into could lead to continuous progress.
An expanding middle class, with more spending power, will also continue to boost e-commerce markets in
emerging regions.

Reasons Why E-Commerce Is Set to Grow in Emerging Markets

The Emerging Consumer Survey 2018 shows that today's emerging consumers are just as connected
as their peers in Europe or the USA, and are as likely, if not more so, to opt for online retail
services. Smartphones are a key driver for online access.

The rapid adoption of smartphones and subsequent access to the internet has allowed emerging market
consumers to be a major global force across a range of online activities including online retail, gaming
and eSports. Internet access among Emerging Consumer Survey respondents is now around 80 percent or
more in all countries except Indonesia and South Africa. Quite clearly, lower average spending power has
not deterred consumers across our emerging economies to gain access to the internet and start benefiting
from its range of services. In conjunction with total population sizes, it clearly makes them stand out
among the economies surveyed as the biggest online retail markets.

There is huge growth potential for online retail. We note that current online spending of around USD 1.29
trillion across the economies surveyed would increase to around USD 2.7 trillion if the share of online
retail spending were to increase to just 25 percent in China and 15 percent elsewhere, and assuming that
total retail spending increases at 5 percent per year.

In our view, there are a number of factors indicating that online retail spending across emerging markets is
far from played out.

1. Urbanization Coincides with Greater Propensity to Shop Online

As urbanization is set to continue to rise across emerging markets, it should coincide with a
growing share of online consumer spending in our view. This is due to the fact that greater
urbanization and population density help to ease the logistical challenges that online companies
face when developing their services.

2. FMCG and Food Delivery to Support Growth

At present, online shopping is dominated by more price-elastic consumer items such as books, electronics
or apparel. Going forward, however, we expect stronger online retail growth to be generated by so called
fast-moving consumer goods (FMCG), such as beverages, food or toiletries. To indicate the upside
potential of FMCG, we note that, in Europe, only 2.4 percent of grocery sales are made online compared to
over 12 percent of other retail sales. Not only is the share of FMCG and groceries purchased online very
low (with the exception of China), but continued urbanization should also help to lower logistical
challenges.
3. Traditional Retailers Developing Online Capabilities

Given their dominance in terms of market share, it seems that only a few companies have been quick to
realize the demand potential for e-commerce services. As a result, companies such as Amazon have been
able to grab market share, leaving traditional retailers under significant pressure due to their lack of online
presence. Recently, omni-channel strategies (e.g. offline retailers developing online capabilities) have
become increasingly popular. For example, Google and Walmart are cooperating in the US, while Lidl has
set up a collaboration with DHL in Germany. These developments are likely to intensify competition
among the various companies active in the segment, but should still allow for continued growth in online
consumer spending.

4. Pure-Play Online Companies Expanding Offline Offerings

Though connectivity and mobile access are the most relevant factors for more traditional purchases, other
factors such as improved delivery logistics, ease of buying and retailer presence are also relevant, not least
in the area of online FMCG.
Some of the key online players have realized that they need to expand their service offering to cater for
these consumer demands. Improving consumer access and convenience should help grow e-commerce
revenues further as "saving time" is one of the key reasons why consumers buy online according to
Nielsen.

5. Cross Border E-Commerce As an Additional Driver

Greater connectivity allows consumers to become familiar with products and services that are not
necessarily produced locally. According to Nielsen’s 2017 Online Shopper Trend Report, the share of
Chinese consumers who buy products from overseas websites has doubled to 64 percent since 2014.
Although the share of Chinese consumers who buy from overseas websites is rising, we note that the lion’s
share of their buying remains domestically focused leaving lots of potential for further development.

6. Data Analytics Can Drive Online Revenues Further

The proliferation of the number of online sales channels (e.g. desktop, mobile, tablets) implies a growing
need for advertisers and retailers to understand consumer behavior across these channels in order to
maximize the benefit from online sales. Technology, and specifically data analytics, can help in this regard
as these allow for the optimization of consumer marketing, which in turn should help drive online
commerce growth further.

7. Greater Adoption of Mobile Payments in Emerging Markets Drives Growth

Owing to the development of internet access and smartphone ownership, digital non-cash payment systems
are possible. At the same time the intensity of a country's e-commerce activities correlate with the
willingness to make non-cash payments. India is likely to follow China, where the share of cash in retail
transactions has fallen from 61 percent in 2010 to 38 percent in 2016. At the same time, the share of
mobile-based payment transactions has increased to more than 11 percent in China from zero five years
ago.
 CHAPTER 2

RESEARCH AND METHODOLOGY

The objectives of the study are given below.

Objectives of the Study

 To study how e-commerce aid in the economic development of developing countries.

 To identify the relationship between e-commerce and emerging market.
 To identify the significant impact of e-commerce on emerging market.
 To assess the influence of e-commerce in developing an economy.
 To study the impacts of e-commerce in emerging markets.
 To study social e-commerce in emerging markets.

Limitations of the Study

This study is e-commerce in emerging markets.
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data collection (internet, questionnaire
and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.

Scope of the study

The potential for e-commerce development is enormous. Now a days one can buy products online through
some sites like Flipkart and Amazon. In the age of e-commerce everything from gym equipment to laptops
are available online. E-Commerce is a super set of business cases. It includes E-trading, E-Franchising, E-
Mailing, E-Engineering etc. Scope of e-commerce can be enumerated as follows:

1. Exchange of digitized information

2. Technology-enabled
3. Customers retention
4. Accounting
5. Supplier integration
6. Support the exchange

1. Exchange of digitized information: The digitized information exchange can represent

communications between two parties, coordination of the flow of goods and service, or transmission of
electronic orders. These exchange can be between organizations or individuals.

2.Technology-enabled: E-Commerce is about technology-enabled transactions. Web browsers are perhaps

the best Know of these technology-enabled customer interfaces. However, other interfaces including
automated teller machines (ATMs) also fall in the general category of e-commerce. Business once
managed transactions with customers and markets strictly through human interaction; In e-commerce, such
transitions can be managed using technology.
3. Customers retention: E-Commerce enables organizations to get classified and customized market
information that helps in retaining customers through fast order fulfillment and effective customers
relationship management (CRM). End-to-End supply chain management in e-commerce provides the
opportunity the overall flow of demand and supply and results in fruitful customers retention.
4. Accounting: Financial accounting, treasury management and asset management are best possible in e-
commerce because of integrated database. Financial planning and strategy determination become more
convenient in e-commerce.

5. Supplier integration: For lowering inventory-carrying costs and broader availability of material and
opportunities suppliers network can be integrated through EDI to implement just-in-time (JIT) inventory
management.

6. Support the exchange: E-Commerce includes intra and interorganizational activities that support the
exchange. The scope of e-commerce includes all electronically based intra and interorganizational
activities that directly or indirectly support marketplace exchange. In this sense, we are talking about a
phenomenon that affects both How business organizations relate to external parties customers, suppliers,
partners, competitors, and markets and how they operate internally in managing activities, processes and
systems.

METHODOLOGY
Primary research is defined as a methodology used by researchers to collect data directly, rather than
depending on data collected from previously done research. Technically, they “own” the data. Primary
research is solely carried out to address a certain problem, which requires in-depth analysis.

I had used primary method for collecting responses of people with the help of questionnaires created by me
in google form.
 CHAPTER 3
LITERATURE REVIEW
In this chapter 3 ‘Literature Review’ I had inserted the information and review of my study topic
“Ecommerce in Emerging Market” of the literature who had before handly done their project on same
topic.
Gupta (2014) in her paper “E-Commerce: Role of e-commerce in today’s business in Emerging
Markets”, presents a comprehensive definition of e-commerce while isolating it from e-business. The
paper enlists the different e-commerce models i.e. B2B, B2C, B2G and C2C, narratively analysing
the nitty gritties of each. Rina (2016)also elaborates the different applications of e-commerce in
“Challenges and Future Scope of E-commerce in India”, at the same time, defining the degree to which
they are operational in the country.
Gunasekaran, Marri, McGaughey, & Nebhwani (2002) give a broad outlook of electronic commerce within
organisational systems in “E-commerce and its impact on operations management”, defining it with
reference to e-trading and elaborating- how it has permeated every field of business. The paper identifies
the revolutionary role played by earlier internet applications like e-mail and eletronic data interchange and
details the revolutionary changes brought by the internet technologies in manufacturing, marketing,
purchasing, design, production, selling and distribution, warehousing and human resource management.
Internet based technologies have enabled businesses to shorten development, purchase and procurement
cycles, maintain upto date product and market information, significantly increase the speed of
communications and increase the quality of customer relationships by facilitating close contact and
constant communication. The paper studies in depth, the significance of web based technologies in
different business operations, thus, improving their efficiency through effective B2B e-commerce.

Mishra & Kotkar(2015) trace the timeline and development of B2C e-commerce in “A Study on
Emerging of Markets in E-Commerce in India: A Comparative Analysis of Flipkart and Amazon”with its
inception in the
mid 1990s through the advent of matrimonial and job portals. However, due to limited internet
accessibility, weak online payment systems and lack of awareness, the progress was very slow. The Indian
B2C e-commerce industry got a major boost in mid 2000s with the expansion of online services to
travel and hotel bookings which continue to be major contributors even today.Das & Ara(2015) observe
in “Growth of E-Commerce in India”that though online travel and hotel bookings still control the
lion’s share of e-commerce market, their share has comparitively fallen over the years due to the recent
augmentation and consequent rise of e-tailing services. There has been a tremendous surge in the volume
of investment in this sector. With the e-commerce markets in the west reaching their saturation, investors
see tremendous potential in the Indian market, in the light of which, many start ups have received
funding from venture capitalists and private equity firms. China's Alibaba Group and affiliate Ant
Financial became the largest shareholders of One97 Communications, the parent of Indian e-tailer
Paytm, by investing $680 million, in 2015 (Aulakh, 2015).
To tap and $210 million in Ola cabs. (Mac, 2014). Similarly, New York firm Tiger Global
Management has funded companies such MakeMyTrip, Flipkart, Myntra and Quickr. The availablity of
funds has presented a favourable ecosystem and growth opportunities for big as well as small companies. It
has enabled local startups to survive in cut throat competition against foreign giants and has facilitated the
penetration of e-commerce to every facet Growth of E-commerce in India: An Analytical Review of
Literature of human life; such that the differntiation between e-commerce and traditional buisness
is getting blurred.(Aggarwal, 2014).
Through“Probles and Prospects of E-Commerce”, Raghunath & Panga (2013) present a
comprehensive analysis of various nuances of e-commerce while accentuating that, in present time every
business activity, be it advertising, ordering, payment etc, can be performed in the digital ecosystem. The
paper also enlists numerous points on the importance of e-commerce which are responsible for its
development as the new convention. It has enabled the creation and exploitation of new business and
services. E-commerce has not only augmented the performance of internal business management, but,
has also enabled better customer relationships by promoting a business model that is essentially based on
information sharing. The accessibility of internet connectivity and other online tools herald a new
revolution. SWOT analysis of e-commerce conducted by Awais & Samin (2012) highlights ubiquity,
low operating cost, improved customer interaction and time saving as the unique strengths of e-
commerce,but, at the same timeaccentuates upon the necessity for the firms to adapt themselves to the
changing environment and innovate constantly to come up with better offerings for customers. With an
increase in the number of players in the B2C segment, competition for the first position is set to intensify,
making it imperative for the firms to enhance service quality and to invest in logistics, so as to derive
benefits from increase in the disposable income of houseolds, rise in internet subscriptions and
infilteration of mobile commerce. (Das & Ara, 2015). In the face of rising competition, the survival of the
firms will depend upon how efficiently they are able to bridge the exsting gaps in e-commerce
transactions. The ubiquitous nature of internet has enabled e-commerce to defy geographical boundaries
and permeate different markets,so as to elicit demand from sub-urban and rural areas, after having
succesfully tapped its potential in metropolitan cities. In anticipation of increasing demand from Tier 2 and
3 cities, many e-commerce firms are undertaking efforts to widen their reach by investing in better
infrastructure. In the light of growing number of websites, offering similar goods and services, greater
significance is being attributed to Internet Marketing, which shall play an unparalleled role in
audience acquisition for e-commerce websites, by displaying the advertisements on search engine
result pages and other portals. Internet Marketing shall not only propel e-commerce but will also
emerge as an important support tool to brick and mortar stores.(Gangeshwer, 2013). Apart from Internet
Marketing, Deshmukh, Deshmukh & Thampi (2013) recognise another important development: m-
commerce, which they identify as a subset of e-commerce. “Transformation from E-commerce to
M-commerce in Indian Context” reviews the current and potential status of e-commerce and m-commerce
in the Indian market, while projecting the latter as the potential future. The paper discerns ubiquity,
personalization, flexibility and immediacy as the singular advantages of m-commerce. The authors affirm
the idea that smart phone penetration and rise in inetrnet user base, mostly driven by youth, shall propel the
growth of e-commerce. Statistical data is used to emphasize that the infrastructure requisite for m-
commerce development already exists, however, it is yet to be properly deployed. With mobile
penetration providing a boost to digital downloads and enabling cheaper monetary transfers, the need of
the hour is to enhance customer confidence by providing them assurance of safety and privacy, which
shall accelerate movement towards a cashless economy. Despite innumerable prospects, the growth of e-
commerce in India has not been upto its full potential due to certain challenges that inhibit the growth of
firms. The growth of digital commerce in India is impeded by inadequate infrastructure, logistics failure,
lack of tax uniformity and declining margins. In the face of intense competition, firms have to
pamper the customers with huge discounts, everyday offers and liberalreturns policy which proves
detrimental to their profits. As against the firms following inventory model, e-marketplaces are more
adversely affected by subsidies as they have to offer incentives to the seller for listing their products on the
website in addition to the humungous discounts and wide range of offers to the customers. The increasing
fulfillment costs (includes every cost incurred from the point an order is placed till the time its delivered to
the customer.), lack of last mile connectivity in many sub-urban and rural areas and the rising reverse
logistics also hinder the the growth of e-commerce firms by resulting in huge loss.(Rina, 2016).
DATA ANALYSIS AND DATA INTERPRETATION
DATA ANALYSIS
Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal of
discovering useful information, informing conclusions, and supporting decision-making. Data analysis has
multiple facets and approaches, encompassing diverse techniques under a variety of names, and is used in
different business, science, and social science domains. In today's business world, data analysis plays a role
in making decisions more scientific and helping businesses operate more effectively.
I had created 17 to 18 questions to collect responses from people related to my project topic “E-commerce
in Emerging market” with the help of Google forms and Whats app to share links.
Started my questions with “Email Id” to know whoever had responded to my help me in collecting
responses and then continued with next question.
“Gender” by which actually me and the reader of my project will get to know who a male or a female had
responded or the percentage of male or female had responded continued with next question.
“Age Group” to know what age group do the respondents belong. I had asked to fill the options which
were provided by me the particular age group of people from 18 to 60.
Then continued with “Qualification” to know the qualification of the respondent and the options / choices
provided to choose were “Below SSC”, “SSC”, ”HSC”, ”Graduation” and “Post Graduation”.
Moved forward with an idea to know the “Occupation” of the respondent then again thee options provided
were an “Employee”, “Professional”, “Student”, “Housewife” and Others.
And then questioned them their Annual Income with a guessing asked them to choose options from
“Unemployed”, less than 1Lakh”, “Between 1Lakh to 2.5Lakh”, “Between 2.5Lakh to 3.5Lakh” and
3.5Lakh or more.
Then moved on with many more questions related to my topic “E-commerce in Emerging Markets” to
know the choices/views that how much knowledge do they have of e-commerce i.e. internet commerce or
internet transactions in emerging markets.
My 1st question and more questions were as under:-
Do you know the significance of ecommerce in emerging markets and choices were “Yes”, “No” and
“Don’t know”.
Then continued with more questions which are as follows
Are you aware of emerging markets with choices Yes, No, Maybe..
What according to you is the future of ecommerce in India with choices Excellent, Very Good, Neutral,
Bad, Very bad.
From how many years are you using ecommerce with choices less than 1 year, less than 5 year, more than
5 year and don’t know.
For what purpose do you use ecommerce and the choices provided were personal use, business use and
both.
From the various types of ecommerce what according to you has the largest market shares and the options
were B2B Commerce, B2C Commerce, B2G Commerce and others.
According to you how is ecommerce helpful to the commerce in emerging markets and the options to
choose were Encourage price transparency, Fastens transactions, Broadens consumer choice and others.
Do you think application of ecommerce has increased marketing in India and the options were Yes, No and
Maybe.
Do you agree that ecommerce as commercial mean with multiple choices and the options were
Strongly disagree, Disagree, Neutral, Agree, Strongly agree.
Do you agree that ecommerce can provide an alternative marketing channel by Eliminating the middleman
with choices Strongly disagree, Disagree, Neutral, Agree, Strongly agree.
Which is the prominent domain in which ecommerce is used in India with some actual options Banking,
Real Estate, Stocks and shares, Matrimony and Others.
What are the challenges to the implementation of ecommerce in India with options Security concern, Lack
of Trust, slow penetration of interest and others.
And ended up my questionnaire with last question
Do you think that the government is doing enough to promote awareness of ecommerce in emerging
market with options Yes, No and Maybe.
Then ended my form with “Thank you”.
DATA INTERPRETATION
Data interpretation refers to the process of using diverse analytical methods to review data and arrive at
relevant conclusions. The interpretation of data helps researchers to categorize, manipulate, and summarize
the information in order to answer critical questions.

INTERPRETATING MY DATA

1. GENDER

PARTICULARS PERCENTAGE %

MALE 31.1%

FEMALE 68.8%
2. AGE GROUP YOU BELONG TO

AGES BETWEEN PRCENTAGE%

18-28 78.3%
29-39 16%
40-50 6.7%
51-60 15%

3. WHAT IS YOUR EDUCATION QUALIFICATION

QUALIFICATION PERCENTAGE%
BELOW SSC 2.8%
SSC 8.5%
HSC 12.3%
GRADUATION 66%
POST GRADUATION 10.4%
4. YOUR OCCUPATION

OCCUPATION PERCENTAGE%
EMPLOYEE 22.6%
PROFESSIONAL 4%
STUDENT 52.8%
HOUSEWIFE 11.3%
OTHERS 9.3%

5. WHAT IS YOUR ANNUAL INCOME

ANNUAL INCOME PERCENTAGE%

UNEMPLOYED 58.5%
LESS THAN 1LAKH 14.2%
BETWEEN 1LAKH TO 2.5LAKH 13.2%
BETWEEN 2.5LAKH TO 3.5LAKH 5.6%
3.5LAKH OR MORE 7.5%
6.DO YOU KNOW WHAT ARE THE SIGNIFICANCE OF ECOMMERCE IN EMERGING MARKETS

RESPONSES PERCENTAGE%
YES 67.9%
NO 20.8%
DON’T KNOW 11.3%

7. ARE YOU AWARE OF EMERGING MARKETS

RESPONSES PERCENTAGE%
YES 59.4%
NO 22.6%
MAY BE 17.9%
8. WHAT ACCORDING TO YOU IS THE FUTURE OF ECOMMERCE IN INDIA

RESPONSE PERCENTAGE%
EXCELLENT 21.7%
VERY GOOD 40.6%
GOOD 20.8%
NEUTRAL 14.2%
BAD 2.7%

9. FROM HOW MANY YEARS ARE YOU USING ECOMMERCE

NO OF YEARS PERCENTAGE%
LESS THAN 1 YEAR 47.2%
MORE THAN 5 YEAR 7.5%
LESS THAN 5 YEAR 21.7%
DON’T KNOW 23.6%
10. FOR WHAT PURPOSE DO YOU USE ECOMMERCE

USES PERCENTAGE%
PERSONAL USE 55.7%
BUSINESS USE 16.1%
BOTH OF ABOVE 39.6%

11. FROM THE VARIOUS TYPES OF ECOMMERCE ,WHAT ACCORDING TO YOU HAS THE
LARGEST MARKET SHARE

COMMERCE TYPES PERCENTAGE%

B2B COMMERCE 24.5%
B2C COMMERCE 34.9%
B2G COMMERCE 3.8%
OTHERS 36.8%
12. ACCORDING TO YOU HOW IS ECOMMERCE HELPFUL TO THE COMMERCE IN EMERGING
MARKETS

RESPONSES PERCENTAGE%
ENCOURAGE PRICE TRANSPERENCY 24.5%
FASTERNS TRANSACTIONS 39.6%
BROADENS CONSUMERS CHOICE 17%
DON’T KNOW 18.9%

13. DO YOU THINK APPLICATION OF ECOMMERCE HAS INCREASED MARKETING IN INDIA

RESPONSE PERCENTAGE%
YES 73.6%
NO 3.8%
MAY BE 22.6%
14. DO YOU AGREE THAT ECOMMERCE AS COMMERCIAL MEAN
OPINIONS PERCENTAGE%
STRONGLY AGREE 7.5%
DISAGREE 2.9%
NEUTRAL 45.3%
AGREE 35.8%
STRONGLY AGREE 8.5%

15. DO YOU AGREE THAT ECOMMERCE CAN PROVIDE AN ALTERNATIVE MARKETING

CHANNEL BY ELIMINATING THE MIDDLEMAN

OPINIONS PERCENTAGE%
STRONGLY DISAGREE 7.5%
DISAGREE 13.2%
NEUTRAL 34%
AGREE 35.8%
STRONGLY AGREE 9.4%
16. WHICH IS THE PROMINENT DOMAIN IN WHICH ECOMMERCE IS USED IN INDIA

DOMAINS PERCENTAGE%
BANKING 40.6%
REAL ESTATE 12.3%
STOCK AND SHARES 31.1%
MATRIMONY 1.8%
OTHERS 14.2%

17. WHAT ARE THE CHALLENGES TO THE IMPLEMENTATION OF ECOMMERCE IN INDIA

CHALLENGES PERCENTAGE%
SECURITY CONCERN 41.5%
LACK OF TRUST 31.1%
SLOW PENTRATION OF INTEREST 8.5
OTHERS 18.9%
18. DO YOU THINK THAT THE GOVERNMENT IS DOING ENOUGH TO PROMOTE
AWARENESS OF ECOMMERCE IN EMERGING MARKETS
RESPONSES PERCENTAGE%
YES 45.3%
NO 16%
MAY BE 38.7%

These are the interpretation of the data collected by me from 106 persons related to my project .
CONCLUSION

FINDINGS

• 100 percentage of the students uses the internet.

• More than half of the student says that Flipkart is the most preferred ecommerce website.
• More than half of the students most commonly use the e-commerce website for getting information before
physical store.
• More than half of the students says that they are aware about Decathlon as ecommerce website.
• Less than half of the students says that they know about the Decathlon through word of mouth.
• Majority of the students are satisfied using e-commerce website often.
• Less than half of the students are concerned about the fake products on online purchase.
• More than half of the students says that they use e-commerce website only once in a month.
• Less than half of the students says that KIPSTA is the more preferred brand.
• Majority of the students says that they typically purchase shoes through online purchase.
• Less than half of the students says that they are moderately comfortable while using online purchase.
• Less than half of the students says that privacy concerned once in a while preventing them buying products
through online.
• Less than half of the students prefer cash on delivery while buying the products through online.
• Less than half of the students acknowledge about saving the time while purchasing products through online.
E-commerce has significant impact on emerging market. E-commerce has been hailed by many as an
opportunity for developing countries to gain a stronger foothold in the multilateral trading system...
Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly
less.
• More than half of the students says that description about the product on online is accurate.
• Less than half of the students says that customer service is the best feature about Decathlon.
• Half of the students neutrally satisfied with the Decathlon’s reasonable return and exchange policy.
• More than half of the students gives good rating about Decathlon`s website

SUGGESTIONS

• Company needs to spend a lot on advertising and promotion to create an better reputation among the
public.
• Provide better customer service.
• Need to include varieties of similar items.
• Better if they provide filtered information.

CONCLUSIONS

In this study we have taken cluster sampling method in a selected college, sports students by random
selected students. Decathlon success is a direct result of its detailed pricing and marketing strategies, but
Omnia gave the company the tools to ensure that strategy became a success. After completing this
research, we come to know that Decathlon website is the most preferred website by the sports students.
Decathlon has successfully placed itself into the prospects mind making it as worlds emerging markets
with huge sports products. KIPSTA is the most preferred brand in Decathlon website. Customers gives
good rating about the Decathlon’s service. It provides services through online as well as offline retail shop.
BIBLIOGRAPHY

• Managerial economics, Author: A.VINOD, First publication in 2009.

• Business research method, Author: Dr.K.VENUGOPALAN, First publication in 2011

WIBLIOGRAPHY

1. www.thebalance.com
2. www.investopidia.com
3. www.corporatefinanceinstitude.com
4. www.yourdictionary.com
5. www.bookauthority.com
6. https://www.academia.edu
7. https://shodhganga.inflibnet.ac.in
8. http://emergingmarkets.com