Market Research Report : E-Commerce India 2011

Market Research Report : E-Commerce India 2011

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  e-Commerce Market –India November 2011
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  Executive Summary e-Commerce market in India is witnessing an exponential growth rate over the years and with the emergence of better marketing techniques, this market is expected to grow by leaps and bounds The e-Commerce market in 20-- was valued at INR a tr and is expected to grow at a CAGR of x% Market to reach INR b tr by 20-- The market space can be segregated into multiple segments such as online retail, online travel, online financial services, online digital and online other services Having a combined market share of more than y%, online travel and retail players mainly dominate the market space Drivers: PLE Increased Spending Power Extensive Usage of Plastic Money Challenges: Secure Payment Concern Drivers & Challenges Users S M Increasing Internet Penetration and PC A Ease of Transaction Government Initiative Lack of Confidence Purchase Decisions are Brand Oriented Trends Social Media Involvement Increasing BPO Tie Ups Major e-Commerce Vendors Competition Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 Player 7 Player 8 E-COMMERCE MARKET INDIA 2011.PPT 2
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  •Introduction •Market Overview •e-Commerce MarketSegments •e-Commerce Ecosystem •Types of e-Commerce •Technology used in e-Commerce •Drivers and Challenges •Demand and Supply Perspective •Trends •PE Investments •Major Players •Strategic Recommendation E-COMMERCE MARKET INDIA 2011.PPT 3
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  An example ofe-Commerce system work model Regional Logistics Support Regional Warehouse Logistics Support PLE Internet Enabled Devices Consumers SAM e-Commerce Space Warehouse e-Commerce Vendor Financial Service Provider E-COMMERCE MARKET INDIA 2011.PPT 4
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  An illustration ofthe transaction flow within an e-Commerce system Consumer Bank Account PLE Vendor Bank Account SAM Transaction via credit/debit cards Transaction Authorization Third Party Vendor Notification Notification Consumer Product Vendor Product Delivery Logistics Support E-COMMERCE MARKET INDIA 2011.PPT 5
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  Presence of extremelyaffordable and desirable e-Commerce options is driving the market in India e-Commerce Market – India Overview • Indian e-Commerce market is currently undergoing through a phase where it is experiencing a strong growth rate Factors such as increased disposable income coupled with a surge in internet penetration is primarily driving growth in the market • Market size of e-Commerce is estimated to grow at a dynamic growth rate of x% to reach INR a tr in 20-- from INR b tr in 20-- • The market can be broadly classified into several segments which include ‘Online Travel’, ‘Financial Services’, ‘Digital Downloads’, ‘e-Retailing’ and ‘ Other Services ‘ LE • Players in the market are following several strategic moves to lure and attract customers, some of which are enlisted as below: P Easy availability of EMI schemes and lucrative offers on e-Commerce, provided by players in the market happen to be a major source of attraction for customers M Often customers are offered a scheme of earning loyalty points which can be redeemed to claim discounts on commodities or services availed online SA • Increasing tendency to save time and energy, especially amongst the working population will further intensify the e- Commerce market by a large extent e-Commerce Market Growth - India e-Commerce Market Share (2010) INR tr c f Segment 1 b xyz e Segment 2 d Segment 3 a b c a Segment 4 0 Segment 5 2010 2011e 2012e 2013e 2014e 2015e Source: x E-COMMERCE MARKET INDIA 2011.PPT 6
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  e-Commerce Segments (x/x) e-Commerce – Segment 1 • Online travel segment enjoys a lions share of a% of the overall e-Commerce market in India and is flourishing at an unprecedented growth rate E Market size of Online travel registered a growth rate of b% in 20-- to reach a whooping market size of INR abc bn as compared to INR L def bn in 20-- • Aspects such as the proliferation of internet, increased medical tourism, higher disposable income, availability of low cost carriers mainly catalyze the market • Major trends identified are listed below: MP A Railway booking is the most popular amongst all categories S Religious and pilgrimage traveling is growing exponentially Frequent use of search tools for gathering ticket availability and price related information • Major three sub segments of the online travel industry has been illustrated below: xyz Subsegment 1 Subsegment 2 Subsegment 3 xxx yyy zzz Source: x E-COMMERCE MARKET INDIA 2011.PPT 7
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  An example ofe-Commerce ecosystem Ecosystem Internet Application e-Commerce Layers Intermediaries Infrastructure Infrastructure Companies PLE Description aaa SAM bbb ccc ddd Company eee fff ggg hhh Type Examples of www xxx yyy zzz Companies Source: x E-COMMERCE MARKET INDIA 2011.PPT 8
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  e-Commerce in Indiahas diversified immensely wherein various methods of transaction has evolved •Currently, there are several types of e-Commerce methods prevailing which has witnessed tremendous acceptance amongst customers and sellers •A list of e-Commerce types and their relevant vendors are mentioned below: E-Commerce E B2B B2C B2E PL M • xxx • xxx • xxx C2B SA C2C • xxx • xxx Source: x E-COMMERCE MARKET INDIA 2011.PPT 9
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  e-Commerce website developmentis carried out in phases so as to ensure proper and efficient functioning LE e-Commerce – Website Development Phases P Developing an e-Commerce website is a step by step approach, consisting of various phases, so as to M ensure proper and efficient transaction over the internet SA •Aaa • Bbb Research •Sss Development • Ccc •Ttt • Yyy • Ddd Website • Ggg Planning • Eee • Hhh • Zzz Launch • Lll • Mmm Design • Nnn • Ooo Source: x E-COMMERCE MARKET INDIA 2011.PPT 10
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  Drivers & Challenges– Summary Drivers Increased Spending Power Challenges Extensive Usage of Plastic Money Secure Payment Concern Increasing Internet Penetration and PC Lack of Confidence Users Ease of Transaction Government Initiative E-COMMERCE MARKET INDIA 2011.PPT 11
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  A comparison betweenthe supply and demand side of e- Commerce system e-Commerce Vendors PLE e-Commerce Users (Supply Side) SAM (Demand Side) Consumer Objectives e-Commerce • Round the clock availability of products Perception Space / services • Generate higher revenues • Hassle free product / services • Utilize existing resources comparison • Offer enhanced customer satisfaction • Reduced time requirement • Maintain healthy brand image • Nullification of Fuel and transportation • Provide full fledged virtual store expenses facilities to consumers • Benefits from loyalty programs offered Requirements by vendors • xxx Requirements • yyy Source: x E-COMMERCE MARKET INDIA 2011.PPT 12
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  Online purchase decisionsare mostly brand oriented and is SAMPLE mainly influenced according to the area of living • Indian e-Commerce market is witnessing some phenomenal Top 10 Cities involved in e-Commerce trends, which reflects the shopping pattern of consumers • These trends can listed as: Rank Name Rank Name • States including Maharashtra, Delhi, Tamil Nadu, Karnataka and Andhra Pradesh happen to be most acquainted with e- 1 City 1 6 City 6 Commerce • Metros, tier II and III cities and rural areas accounts for x%, 2 City 2 7 City 7 y% and z% of the overall market • Purchase patterns are purely brand driven 3 City 3 8 City 8 • Jewellery & Accessory segment witnessed a continual increase in the number of women shoppers 4 City 4 9 City 9 • Majority of products purchased belonged to the electronic goods while lifestyle products accounted for a% 5 City 5 10 City 10 AAA & BBB – Products Brand Preferences – Across Categories AAA BBB Solitaire Cell Phones Blu -ray DVDs Pendants Lamp work a b c d Crystal Stamps Men’s shoes Wrist Watches Items Commonwealth e f g h Watches Netbooks Stamps PC Games Natural Diamonds Digital Cameras Medical Items DVDs H happens to be the only Indian h brand to find substantial popularity Laptop Sarees & Mineral in e-Commerce market Sunglasses Batteries Apparels Specimens Source: x E-COMMERCE MARKET INDIA 2011.PPT 13
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  PE investments inthe e-Commerce market is witnessing a major growth over the past years Overview PE Investments – Online Ventures • Owing to the lucrative aspects in the e-Commerce market in India, it is attracting major domestic and INR bn LE international PE funds c The market received a total of xxx investments in FY 11 as xyz c P compared to yyy in FY 10 b • PE investments made in the recent years has facilitated a M modernization and betterment of services by a large a extent the investments SA • Primarily, only the online retail players benefited from 0 Recent investments in the Indian e-Commerce market (2009 -2010) 20-- 20-- e Investor Amount (INR bn) No. of Deals Some Key Targeted Companies Investor 1 xxx y Abc, def, ghi Investor 2 xxx y Ijk, klm, npo Investor 3 xxx y Qrs, tuv, wxy Investor 4 xxx y Abc, def Investor 5 xxx y Ghi, jkl Investor 6 xxx y Abc, def Source: x E-COMMERCE MARKET INDIA 2011.PPT 14
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  Major e-Commerce Players(1/8) SAMPLE Online Retail Players Company Name Company Snapshot Business Description Player 1 Headquarter: x • Possess the license for online portal abcxyz Offers foot wears, apparel, bags and accessories, jewellery, Parent Company: x sunglasses, winter wears and sports apparels • Caters to the need of individuals as well as retailers Industry Classification: x Currently, serves to about 3000 retailers across India Website: x • In July, the company has received a fund worth INR xyz mn, from abc and def in its second round of Phone: x funding The company had earlier announced in Dec 2010, to have Key Person: x received an investment of INR asd mn, from xxx Player 2 Headquarter: x • Primarily operates as an online e-commerce portal wherein it offers lucrative deals for individuals, Parent Company: x specific to an individual’s location of interest • Its areas of operation comprise of Bangalore, Industry Classification: x Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune Website: x • Till Jun 2010, the company was known as abc • Currently, the company is anticipated to be valued at Phone: x INR xxx mn and is expected to receive investments Key Person: x from international investors More than a% of the share in the company is withheld by the European firm ABC, while the remaining shares are segregated amongst xyz, yyy and zzz Source: x E-COMMERCE MARKET INDIA 2011.PPT 15
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  Strategic Recommendations xyz AAA • aaa PLE BBB • bbb SAM CCC • ccc E-COMMERCE MARKET INDIA 2011.PPT 16
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  Thank you forthe attention The e-Commerce Market – India report is a part of Research on India’s Information Technology Series. For more detailed information or customized research requirements please contact: Kalyan Banga Our other offerings in the IT Series: •Security Software Market in India 2011 Phone: +91 33 4064 6215 •CRM Market in India 2011 E-Mail: [email protected] •ERP Market in India 2011 •Enterprise Mobility Market in India 2011 Gagan Uppal •Tablet PC market in India 2011 Phone: +91 22 4098 7530 •Cloud Computing Market in India 2011 E-Mail: [email protected] •ICT Adoption in Education Sector in India Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. E-COMMERCE MARKET INDIA 2011.PPT 17