Presentation on Ecommerce Ecosytem. The Following points are included: 1)History of E-commerce 2)Increasing E-commerce in India 3)Problems faced in E-commerce 4)Effects on Retailers 5)Effect on Economy 6)Effect on Government policies on Ecommerce 7)Opportunities for Venture Capitalists 8)Valuations of E-commerce Market

1. E-commerce Ecosystem
.

2. Outline
 History of E-commerce
 Increasing E-commerce in India
 Problems faced in E-commerce
 Effects on Retailers
 Effect on Economy
 Effect on Government policies on Ecommerce
 Opportunities for Venture Capitalists
 Valuations of E-commerce Market

3. History Of E-commerce
 Started in 1991
 At first, the term ecommerce meant the process of execution of commercial transactions
electronically with the help of the leading technologies which gave an opportunity for users to
exchange business information and do electronic transactions.
 In 2000 a great number of business companies in the United States and Western Europe
represented their services in the World Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term ecommerce as the process of
purchasing of available goods and services over the Internet using secure connections and
electronic payment services
 ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce
sales accounted for 3.4 percent of total sales.

4. History of E-commerce in India
 1991: Introduction of E-Commerce
 2002: IRCTC teaches India to Book ticket online
 2003: Introduction of Low Cost Airline with AirDeccan
 2007: The Deep Discounted model of Flipkart
 2014: Current Scenario

5. Increasing E-Commerce in India
 With the emerging era of Digital India, where smartphone sales have sky-rocketed,
there is a lot of scope for E-Commerce.
 With its essential features like all season discounts and 24/7 availability, it has
attracted a lot of people
 30 Days return guarantee, 1-7 days delivery time, etc. to the online shopping and the
E-Market have added new flavours to the industry
 Youth Factor (60-62% of population)
 “India’s e-commerce market was worth about USD 3.8 billion in 2009, it went up to
USD 17 billion in 2014 and to USD 23 billion in 2015 and is expected to touch
whopping USD 38 billion mark by 2016,”

6. Key drivers in Indian E-commerce
 The Increasing broadband Internet and 3G penetration
 Growing Living standards
 Availability of much wider product range
 Busy lifestyles and lack of time for offline shopping
 Increased usage of online categorized sites
 Evolution of the online marketplace model with websites like eBay, Flipkart ,
Snapdeal, etc.

7. Preferred Shopping Means
40%
60%
PEOPLES’ CHOICE
RETAILERS (40%) ONLINE SHOPPING (60%)
Survey Analysis
Malls & Shops 28
Depends On Price 35
Online 42
28
30
42
0
5
10
15
20
25
30
35
40
45

8. Trust Factors
 An important reason for using e-commerce because when people trust you they will
do business with you
 A consumer makes a purchasing decision (purchase) based on his or her purchase
intention
 Benefit, risk, and trust toward the Internet selling entity
 Trust toward the selling party will also indirectly increase their intention to purchase
by reducing their perceptions of risk (indirect effect)
 Engage in an Internet purchase when perceived risks are low, when perceived
benefits are high, and when trust is high (direct effect)

9. Trust Cycle
TRUST
PURCHASE
FEEDBACK
FACTORS

10. Problems Faced In E-commerce
 Poor Knowledge and Awareness
 Online Transaction
 Cash On Delivery
 Online Security
 Logistics and Shipment Services
 Tax Structure
 Fear factor
 ‘Touch and Feel’ factors

11. Effect on Offline Retailers
 Online business is rich in information but lacks in touch and feel, offline business is
rich in touch and feel but lacks in flow of information
 There is no behavioral data available on what products customer searched for, what
was the customer’s preference, which colour he/she liked, which brand he/she liked
when the customer leaves the shop.
 But when customer buys online, all behavioral data can be tracked and this data can
be used to provide intelligent recommendations.
 As customers’ trust on online market is increasing, products like pen-drive, mobiles,
earphones are more being purchased online.
 Customers get look and feel of the product at offline store and then prefer to
purchase online at cheaper rate.
 Wide range of products can be selected by the consumers with just one click.

12. Effect of e-commerce on Indian
economy
 Indian e-commerce has been growing at an unprecedented rate, adding about
70million entrants per year.
 Indian e-commerce has been estimated to generate a revenue of 100billion by the
end of 2016 which would boost India’s economy.
 Analysis shows that 40% population in the age group 15-25 and are the potential of
e-commerce and this figure is expected to rise to 64% by 2020.
 The below graph shows the current and estimated growth GDP contributed by e-
commerce:

13.  The blooming e-commerce is likely to be a game changer for future job markets.
 Internet penetration and smartphones have led to increase e-commerce trade which has
positive effect on economy.
 The bloom is to be seen in Tier-2 and Tier-3 cities in India.
 Below pie chart shows current need of e-commerce in the nation.

15. Effect of Government policies on
Ecommerce
 Changes in government policies such as taxations.
 Regulations by the telecom authority-TRAI.
 Improvement in technology has promoted the implementation of government
policies-paving way for Ecommerce.
 Emphasis to Innovation and Entrepreneurship based education.
 Financial, e.g. grants, loans, subsidies, financial sharing arrangements, provision of
equipment, buildings or services, loan guarantees, export credits, etc.

16. Opportunities for Venture Capitalists
 Ecommerce has turned out to be a great investment opportunity for VCs owing to
high returns.
 Increasing competition among the various players has brought investments form
various financial corporates-PE’s;VC;Angel Networks.

17. Valuations of E-commerce
Market
 Experts have pinned India as one of the fastest growing e-commerce markets
 Holds valuations of 1.2 trillion US dollars
 About 40% of internet user worldwide

19. The Way Ahead!(Buyers Think)
 “As the vertical segments of the e-commerce market being filled up, the competition
is getting fired up. Online shopping will grow because of competition!”, says an
online buyer on Quora.
44%
44%
4%
1%
7%
What Buyers Forecast?
Very Good
Good
Not so good
Do not have a future in India
Don't know / Can't say

20. The Way Ahead!(Experts Speak)
 Neither Flipkart nor Snapdeal is profitable!
 “E-commerce companies need to realize the fact that their entire business model
depends on discounts. Once the discount is lowered or dropped, customers will start
looking elsewhere for a better deal.”, says a blogger in The Huffington Post.
 However, rise in internet connectivity and craze of smartphones would boost it’s
growth.

21. Ecommerce will Boost!

22. Reference
 Survey
 http://economictimes.indiatimes.com/
 http://www.livemint.com/Companies/d3Jcm2hLqn1Xj6x2qGnIhM/Ecommerce-
startups-collectively-overvalued-Aswath-Damodar.html
 https://www.researchgate.net/publication/221409051_The_Government's_Role_in_I
mproving_Electronic_Commerce_Adoption

23. Thank You !!!
 Developed By-
 Krishna Chukewad 141030057
 Sanchit Pathak 141030058
 Aniket Kamble 141030059
 Mohanish Gaikwad 141030061
 Bhavya Kenia 141030063
 Sagar Hinduja 141030064
VJTI, Matunga, Mumbai-19.