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Dynamics of online retailing in india

  1. 1. Dynamics of Online Retailing in India Rohita Dwivedi
  2. 2. Online Retailing • Retailing conducted online, over the Internet • The online retail industry was worth US$3.59 billion in 2013 is expected to be at US$ 10.68 billion by 2016 and 17.52 billion US$ by 2018
  3. 3. The Growing Base • From 130 million online users in Dec 2012 with 10% engaging in online transactions • The base is expected to cross 350 million by Dec 2015 with larger % indulging in online purchases (currently ranked no. 2 after China)
  4. 4. Other Growth Factors • Increasing speed of broadband connection • Increasing use of smart phones (164 million ) out of 940 million mobile phone subscriptions; estimated 2.7 billion smart phone users by 2017 (http://dazeinfo.com/2015/07/04/global- smartphone-sales-2015-2017-india-will- surpass-us-report/) • Increasing penetration of venture capitalists/ private equity funded online retailers startups
  5. 5. Other Growth Factors… • Rising standards of living as result of fast decline in poverty rate. • Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers. • Competitive prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs. • Increased usage of online classified sites, with
  6. 6. Online Retailers
  7. 7. Preferred Online Retailers
  8. 8. Reasons for Online Purchase
  9. 9. Top Platform for Shopping
  10. 10. Categories sold
  11. 11. Frequency of Shopping
  12. 12. Average Monthly Spend
  13. 13. Game Changer Cash On Delivery • At present, COD is the preferred payment mode for close to 55-60% of all online transactions in the fashion and lifestyle segment in India.
  14. 14. …..Is Online Retailing Ailing Y-O-Y Growth % 2012-2013 55.6% 2013-2014 47.6% 2014-2015 45.2%
  15. 15. Is Online Retailing Ailing… • Only 12% of our population has ever made online purchase till date • By 2018, 29% of our population is estimated to buy • China 55.2% • Japan 81%
  16. 16. What Ails Online Retailing in India • Government Policy (no FDI in B2C and hence marketplace model) • COD and High Rate of Return (17-25 %), with COD (40%) http://www.businesstoday.in/magazine/cover- story/cash-on-delivery-impact-on-e- commerce-companies- customers/story/202680.html • Touch & Feel Factor • Cybercrime

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