The presentation provides an overview to the e-commerce market in India for budding entrepreneurs.

1. Introduction to the Indian
E-Commerce
Industry

2.  India, the world’s 2nd most populous country and the world’s largest
democracy
 Has been ruled by the Congress party for almost 55 of the past 65 years
since Independence.
Indian Macro Analysis Pestle
Political
 If the protests and government
inaction continue, this can have a
serious negative impact on the
country’s medium-term growth
prospects.
 While giving stability to the nation, the Congress rule has also
brought about its fair set of challenges, most recent of which is the so-called
policy inaction and the rising corruption in all forms of the government.

3. Economic
 India is the World’s 10th largest economy and has transformed from an
agriculture Driven economy in the 1950’s and 60’s to one driven by
technology and services.
 The Indian Economy has undergone major changes over the past two
decades which has also had an impact over the GDP growth as well as per
capita incomes.
 GDP growth has increased from 3-4% in the 1950-80’s to between over the
past 10 years.
Indian Macro Analysis Pestle
0
2
4
6
8
10
Growth
Growth
Source: World Bank
& e-Tailing India
Estimates

4. Report on the
Indian
E-Commerce
Industry

5. Top 10 Economies (2011)
Indian economy has evolved over the years and is now amongst the Top 10
economies in the world in terms of nominal GDP and the 3rd largest
contributor to global growth in terms of incremental GDP (PPP) for the past
decade, right after China and the USA.
Source: IMF

6. List of Economics by Incremental GDP (PPP) from 2000 to 2010
Source: IMF

7. Social
 India is the second most populous country in the world housing over 17% of
the world's population in just over 2% of its area. While in numbers, it means
that India has a high population density (382/sq.km), qualitatively it has also
brought about its unique set of challenges as well as opportunities
 Population of India, at 1210.2
million, is almost equal to the
combined population of
USA, Indonesia, Brazil, Pakist
an, Bangladesh and Japan put
together -the population of
these six countries totals
1214.3 million!
Source: e-Tailing India Research & Census 2011

8.  Population of India has
increased by more than 181
million during the decade
2001-2011. The absolute
addition is slightly lower than
the population of Brazil, the
fifth most populous country in
the world!
Social
 While Hindus form a majority, Muslims are also present in large numbers (2nd
largest population of Muslims in the world after Indonesia, ahead of
Pakistan, Bangladesh, Egypt and the rest), and form a 2nd majority, followed by
Christians, Sikhs, Buddhists and other religions.
 India's social structure is
amongst the most diverse in
the world with all major
religions represented favorably
and living together and in
relative peace.Source: e-Tailing India Research & Census 2011

9. When looking at India's social structure, no generalisations can be made as the
country has a very high income disparity
cutting across social classes, with more than 65% Indians living in villages and
depend on agriculture for their livelihood.
Percentage of population by broad age-groups: India 2001-2026(P)
Source: Census Commissioner of India

10. India
E-Commerce
Overview

11.  One of the major fallouts of a young and educated population is the widespread
use of social media.
 Facebook, LinkedIn and Twitter have become the 3 most used social media
platforms the world over.
 Of the three, Facebook has had the most impact and also has the most potential to
influence buyers and be useful for the online retail community, given that it relies
on photos and instant updates which could potentially include and influence the
buyers preferences, profiles, community etc.
Source: Social Bakers(www.socialbakers.com)

12. Top 10 Facebook Brands by Number of Fans
The table below shows the impact of social media in building a brand. Amazon
continues to be right at the top with close to 15 million fans worldwide. This is
in addition to the close to 3 million fans of Amazon in the UK, as well as
millions
elsewhere.
Source: Social Bakers(www.socialbakers.com)

13. Internet Penetration in India (2002 to 2012)
Rising internet penetration has resulted in more and more people going
online over the past couple of years. Due to advances in technology, falling call
rates and data charges, and better reach into Tier-II and III cities, internet
penetration in the country has grown by a multiple of 8 over the last decade.
Source: Internet World Stat & e-Tailing India Research

14. While internet penetration has risen and mobile portability has
increased, payment options have not kept pace. The exhibit below shows the
number of credit and debit cards in circulation in the economy since 2005.
Circulation of credit and debit cards
Source: RBI

15. % Split of Unique Visitors by Age on Retail Sites
 The rapidly growing online population in India is young with close to 75% of the
audience between 15-34 years of age. The Retail category has 61.4%
representation from males and is in sync with the overall online population. The
category is also one of the key drivers of growth of internet.
 Audience on Retail category has grown 48% from October 2011 to October 2012.
Source: comScore Media Metrix India, Oct 2012, Age 15+ home and work users

16. Percentage of Retail e-Commerce Dollars Spent via Mobile or
Tablet Device
Smart phones and tablets have also just begun to represent a meaningful
percentage of total e-commerce activity in the past two years. According to
com Score e-commerce research, 10% of online retail dollars spent in Q3 2012
was on mobile devices.
Source: comScore Custom Mobile Research

17. India - % Change Unique
Visitors YoY
(Oct '11- Oct '12)
APAC - % Change Unique
Visitors YoY
(Oct '11- Oct '12)
APAC and India
At the APAC level, the growth of unique visitors in the retail category in India has
been 2.5 times that of APAC region. Within some of the top sub-categories, Apparel
and Health Care are growing big in audience size over the months.
Global Market Comparison: Market Size, Key Players, Traffic, Ticket Size
Source: comScore

18. Falling Deal Activity
 The Indian economy also felt the squeeze in terms of falling levels of FDI as well
as overall deal activity as compared to previous years. Fund raising also became
a challenge with total funds raised falling from over $5 Billion in Q3 of 2011, to
less than $0.5 Billion for the same period this year.
 The exhibit below shows the level of deal activity for the Indian economy as
whole over the past 5 years.
Source: e-Tailing India Research

19. The Indian e-Tailing industry went through its first phase of consolidation as
well as felt a squeeze on margins for the first time since its initial growth phase
began back in 2007.
For the first time since 2007, investors and CEO's started looking at
profitability and bottom-line numbers rather than just a growth in topline
revenues.
CEO's started course corrections midway
and efficiency and bottom lines became the new buzzword.
2012 An Industry at Crossroads
Source: e-Tailing India Research

20. Presented by:
Toboc International
www.toboc.comVisit here:

21. Upcoming Reports
• India Country Analysis
• Funding for e-Commerce
• Technology for e-Commerce
• Marketing for e-Commerce
• Payments Solutions for e-Commerce
• Supply Chain for e-Commerce
• E-Commerce Industry Analysis
Source: etailingindia
www.etailingindia.com