DEPARTMENT OF MANAGEMENT STUDIES

FACULTY OF MANAGEMENT STUDIES

MANAV RACHNA INTERNATIONAL UNIVERSITY, FARIDABAD

TOPIC - Multi Category Online Stores

Name of the Faculty: Dr. Priyanka Singh

Submitted By -
Name of Student- Adil Hussain Roll No: 06
Name of Student- Ashok Arora Roll No: 09
Name of Student- Manikant Sharma Roll No: 31
Name of Student- Akash Gupta Roll No: 102
CONTENTS-
1. INTRODUCTION.
2. TOP PLAYERS OF THE INDUSTRY.
3. DETAILS AND MARKET SHARE OF TOP PLAYERS.
4. CURRENT TRENDS IN THE INDUSTRY.
5. FUTURE TRENDS IN THE INDUSTRY.
6. CONCLUSION.
7. REFERENCES.

1. INTRODUCTION.
Online shopping is a form of electronic commerce which allows consumers to directly
buy goods or services from a seller over the Internet using a web browser. Consumers find a product
of interest by visiting the website of the retailer directly or by searching among alternative vendors
using a shopping search engine, which displays the same product's availability and pricing at different
e-retailers. As of 2016, customers can shop online using a range of different computers and devices,
including desktop computers, laptops, tablet computers and smart phones.

An online shop evokes the physical analogy of buying products or services at a regular mortar
retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. When
an online store is set up to enable businesses to buy from another businesses, the process is called
business-to-business (B2B) online shopping. A typical online store enables the customer to browse
the firm's range of products and services, view photos or images of the products, along with
information about the product specifications, features and prices.

Online stores typically enable shoppers to use "search" features to find specific models, brands or
items. Online customers must have access to the Internet and a valid method of payment in order to
complete a transaction, such as a credit card, debit card, or cash on delivery.

2. TOP PLAYERS IN THE INDUSTRY.

FLIPKART

Flipkart is an electronic commerce company headquartered in Bangalore,

Karnataka. It was founded in 2007 by Sachin Bansal and Binny Bansal. The
company is registered in Singapore. Flipkart has launched its own product
range under the name "DigiFlip" with products including tablets, USBs, and
laptop bags. According to Morgan Stanley the current market value of
Flipkart is $5.54 billion as of November 2016.

Acquisitions

2010: WeRead, a social book discovery tool.

2011: Mime360, a digital content platform company.

2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos.
Flipkart acquired the rights to Chakpak's digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that
it will not be involved with the original site and will not use the brand name.

2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company
for an estimated US$25 million. Letsbuy.com was closed down and all traffic to Letsbuy has
been diverted to Flipkart.

2014: Acquired Myntra.com in an estimated $20 billion (US$300 million) deal.

2015: Flipkart acquired a mobile marketing start-up Appiterate as to strengthen its mobile
platform.

2016: Flipkarts Myntra acquires rival fashion shopping site Jabong for $70 million.

2016: In April, Flipkart acquired payment start-up PhonePe.

2017: In January, Flipkart funded Parenting Network Tinystep With $2 Million.

AMAZON
Amazon, is an American electronic commerce and cloud computing company that was founded
on July 5, 1994, by Jeff Bezos and is based in Seattle, Washington. It is the largest Internet-based
retailer in the world by total sales and market capitalization. Amazon.com started as an
online bookstore,laterdiversifyingtosell DVDs, Blurays, CDs, video downloads/streaming, MP3
downloads/streaming, audiobook downloads/streaming, software, video games, electronics,
apparel, furniture, food, toys and jewelry. The company also produces consumer electronics
notably, Kindle e-readers, Fire tablets, Fire TV and the Echoand is the world's largest provider
of cloud infrastructure services (IaaS and PaaS). Amazon also sells certain low-end products like
USB cables under its in-house brand AmazonBasics.

Amazon has separate retail websites for the United States, the United Kingdom and Ireland,
France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India and
Mexico. Amazon also offers international shipping to certain other countries for some of its
products. In 2016, Dutch, Polish and Turkish language versions of the German Amazon website
were launched.

In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market
capitalization, and was in the third quarter of 2016 the fourth most valuable public company.

SNAPDEAL
SnapDeal is an Indian e-commerce company based in New Delhi, India. The company was
started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering and
Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010.
Snapdeal currently has 275,000 sellers, over 30 million products and a reach of 6,000 towns and
cities across the country.

Investors in the company include SoftBank Corp, Ru-Net Holdings, Tybourne Capital,
PremjiInvest, Alibaba Group, Temasek Holdings, Bessemer Venture Partners, IndoUS
Ventures, Kalaari Capital, Saama Capital, Foxconn Technology Group, Blackrock, eBay, Nexus
Ventures, Intel Capital, Ontario Teachers' Pension Plan, Singapore-based investment entity
Brother Fortune Apparel and Ratan Tata.

Acquisitions

In 2 June 2011, Snapdeal acquired Bengaluru-based group buying site, Grabbon.com.

In April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out
of Delhi.

In May 2013, Snapdeal acquired Shopo.in, an online marketplace for Indian handicraft
products.

In April 2014, Snapdeal acquired fashion products discovery site, Doozton.com.

In December 2014, Snapdeal acquired gifting recommendation site, Wishpicker.com.

In January 2015, Snapdeal acquired a stake in product comparison website Smartprix.com.

 In February 2015, Snapdeal acquired luxury fashion products discovery site, Exclusively.in.

In March 2015, Snapdeal acquired 20% stake in logistics service company Gojavas.com.It
currently owns a 50% stake in GoJavas valued at $35 million.

In March 2015, Snapdeal acquired ecommerce management software and fulfillment solution
provider, Unicommerce.com .

In March 2015, Snapdeal entered into the financial services marketplace by acquiring a
majority stake of RupeePower which provides a digital platform for financial products to
customers. Tejasvi Mohanram, the founder of RupeePower, would continue to be the MD &
CEO of the company.

In April 2015, Snapdeal acquired mobile-payments company FreeCharge.com.

In September 2015, Snapdeal acquired Reduce Data, a programmatic display advertising

platform

JABONG

Jabong.com is an Indian fashion and lifestyle e-commerce portal founded by Praveen

Sinha,Lakshmi Potluri,Arun Chandra Mohan. The portal sells apparel, footwear, fashion
accessories, beauty products, fragrances, home accessories and other fashion and lifestyle
products. The company's headquarter is in Gurgaon, NCR.

In July, 2016 Flipkart acquired Jabong through its unit Myntra for about $70 Million. After the
acquisition, Ananth Narayanan was declared the new CEO of Jabong.

MYNTRA

Indian fashion ecommerce marketplace company,headquartered,in Bengaluru, Karnataka, India.

The company was founded in 2007 by Indian Institute of Technology graduates with a focus on
personalisation of gift items. By 2010, Myntra shifted its focus to the online retailing of branded
apparel.
 MARKET SHARE AS ON DEC. 2016
40
35
30
25
20 MARKET SHARE AS ON
DEC. 2016
15
10
5
0

3. CURRENT TRENDS.

1. Men in India shop 3X more than women!

While women continue to dominate the in-store markets, men with disposable
incomes have taken it upon themselves to play the larger role in online shopping.
 Average order value

Men
Women

2. Cash-On-Delivery (COD) remains the most preferred online payment method.

Indians love the Cash-On-Delivery option; it gives us more control over online transactions
since we dont have to pay until the product is at our doorstep. COD option during checkout
has also been proven to boost impulse purchases.

Series 1
80
70
60
50 Series 1
40
30
20
10
0
Cash on delivery online payment e- wallet others

60% of online purchases happen during business hours. (9AM 5PM)

This proven trend is a myth-buster, that shows how integral a part online shopping has become in
our day-to-day lives. Marketers can use this fact to schedule their promotions across advertising
channels accordingly.
 Distribution of online purchases across categories.
3000
2500
2000
1500
Distribution of online
1000
purchases across
500 categories.
0

Why People shop Online as on Dec. 2016

easy to buy

time saving

free shipping Why People shop Online

easy to compare

shopping convinience

Low price

0 5 10 15 20 25 30 35 40

The above stated trends shows that why online shopping is going upwards
Distribution of Online Purchase Across Cities
35

30

25

20
Distribution of Online
15 Purchase Across Cities

10

FUTURE TRENDS

Compound Annual Growth Rate by country 2016- 2021

35
30
25 Compound Annual Growth
20 Rate by country 2016-
2021
15
10
5
0
India South Korea China Japan Australia
 According to a report by Indian Brand Equity Foundation -

They analysed that Indian online market is going to boost from US$ 30 billion 2016 to US$
100 billion as on 2020 and India is going to be 3 rd larget online market by 2022 behind U.S.
and China.

It is the only reason why ongoing online sites despite of incurring losses are investing so
much in Indian market as they can increase their profit by increasing the customer base
where as the current market scenario shows positive results that by the end of 2017 the online
customer base is going to touch 100 million as compared to 69 million in 2016.

Reasons for their losses-

2. Aggressive discount strategy.

3. Cash on Delivery.

Here are the upcoming future trends which are going to govern the shopping pattern-

Programmatic Advertising

The first trend to look for concerns is the area of ecommerce personalization. It is an evolved
form of retargeting. In the earlier times, retargeting used to show ads to a user while they were
browsing other websites, not necessarily related. However, it only showed ads after the user had
first visited your site.The new trend, labeled as Programmatic Advertising, uses deeper datasets
before deciding on the audience and, more importantly, the type of ad to show to the chosen
audience. In simplistic terms, it is about luring the right audience for the right type of ad at the
right moment in time. Compared to basic retargeting, ecommerce store owners stand a better
chance to reach out to a larger audience by using Programmatic Advertising. Keep in mind that
in the above scenario the right audience does not necessarily include those customers who have
already visited your website. Some of the members will be prospects who have never visited
your ecommerce store, and might not have heard about your store until they see your ad.

Automated Marketing

Marketing has now moved ahead from only simple emails, specifically when talking about
ecommerce.When marketing automation concerns online stores, the scope extends to more
customized landing pages, discount promotions, easy-to-access shopping carts, and even the
recommended products that are shown to existing customers.

You need to understand that personalization is more than a simple mention in an email, and you
must also realize that automated marketing is more than just simple email marketing. If
implemented properly, automated marketing will let you send out emails that are tailored for
each of your customers, and that will display new products and promotions that are based on
their shopping history. Automation allows you to customize the store offerings for each of your
customers, the recommended products that they are shown while browsing your store.
Automated recommendations get directly influenced by what they bought previously or clicked
on during their stay at your store.

Artificial Intelligence (AI) Algorithms

Customer segmentation and identification of patterns based on their browsing history is one of
the biggest challenges that an ecommerce store can face in terms of automation and store
personalization. Algorithms can help in achieving this level of personalization. However, this
does not take out human intervention. Algorithms can do this for you, but you still need humans
to analyze the results and to confirm the recommendations that come up.

The accuracy of data returned by algorithms is greatly influenced by the quality and size of data
that is analyzed. This poses grave challenges for small ecommerce businesses that do not have a
vast amount of data to be analyzed. However, businesses can partner with 3rd party providers
with access to large data sets to help minimize this restriction.

Better Shipping Options

Shipping options for ecommerce did not evolve for many years. However, it is just starting to
pick up pace now. In the past, there were experiments related to free shipping and some
incremental improvements in shipping time. Small improvements did occur, but there was
nothing extraordinary, until the dawn of 2013. During 2013, a lot of delivery services spurred up
that were offering same-day delivery services. The concept of crowd sourced drivers also
emerged and some of the larger retailers started experimenting with drone delivery services. As
of now, specialized services remains the best method of delivery as it is reliable and fast. But
future regulation approvals, drone deliveries, and automatic delivery cars are not much of a
distant future, though it will greatly vary from country to country. You can gauge the impact of
this trend by the fact that Amazon announced a few months back about plans to recruit new
agents for crowd sourced delivery:

Contextual Shopping & Enhanced Shopping Experience

Providing optimized customer experience will prove to be an essential criterion for online stores
looking to decrease cart abandonment. Contextual shopping can easily be labeled as the new way
of personalizing the shopping experience. Owning a user-centric online store would bring
competitive advantage to you. Websites that provide context-based experience do not require a
customer to be logged into a site to get the relevant information required that can help you
through the online decision journey.

Contextual based shopping will take the shopping experience much beyond the level of item
recommendation and give personalized greetings. With the advanced AI technology now
available, contextual shopping has shifted to an all new level. Brands can now map the customer
journey based on their past orders and anticipate their needs to equip the shoppers with the
information they are looking for while shopping on your website.

Mobile Commerce

One of the major trends that have been around for years, and keeps on growing, is mobile access.
Online retailers from around the world confirm that mobile transactions increase each year,
especially during the holiday seasons as compared to the previous year. If you dont have a site
which is mobile responsive NOW IS THE TIME TO MAKE IT RESPONSIVE! Your website
should function the same on mobile as it functions on a computer. If you have made standalone
applications for your ecommerce store, or designed a separate mobile commerce site, but have
limited product range as compared to the web version, then you are restricting your sales.

One simple reality of this era: People are now more exposed to their mobile devices than they are
to their computers. Another fact is that in some emerging and developing markets, more people
have mobiles than they have computers as they are more affordable. You must remember that
competition is getting tougher and if you are slow to react to customizing your ecommerce site
for the mobile device, your customer would probably switch to your competitor.
Availability of More Payment Options

Making different payment options available for your customer results in more conversions and
sales. Online store owners make it easier for customers to shop from their website by offering
them the choice of paying through different options.

For long, credit cards and internet banking have been the dominant payment players in the
market. However, there are still many people who dont feel comfortable giving out their credit
card numbers to ecommerce stores. With the availability of many alternate payment options,
integrating these inside your online store would become a necessity going forward. Options like
V.me by Visa, MasterPass by MasterCard, ApplePay, Google Wallet, BitCoin, and of course
PayPal. In addition to these payment options, there are prepaid cards that can be reloaded for use.

Things to Ponder!

Customers are now more informed and are not willing to settle for best efforts. Online retailers
need to understand that customers do not have limited choices anymore. Switching costs are very
low and customers are concerned about the time and money they spend while shopping online.
Customers have shown in the past that they value engagement and spend with trust when they
are given attention individually; when the recommended products and promotions are
personalized on an individual basis; and when they are able to shop from anywhere and any
device seamlessly without having to experience restricted products. Another major aspect
customers would look forward to being eradicated is the wait they have to endure before their
product is delivered to their doorstep.
CONCLUSION

Conclusively we can conclude that there is a lot of potential in the Indian market but the
competition is very stiff and going to harder also so the companies must inculcate some strategy
so that their current scenario of running into losses is going to increase only with respect to
passage of time .

At Rs 11,754 crore, the combined losses of ecommerce majors Flipkart, Amazon and Snapdeal is
almost double the annual budget of the Indian Space Research Organisation (ISRO). To put
things in perspective, if ISRO was given the same amount, it would be able to launch about 24
'Mangalyaan missions to Mars.

REFERENCES-

1. https://www.ibef.org/industry/retail-india.aspx
2. https://sokrati.com/blog/current-trends-about-indian-e-commerce-
industry/
3. https://apps.sokrati.com/indian-ecommerce-trends-q3-2016?
utm_source=blog&utm_medium=website&utm_campaign=ond_irr
4. https://yourstory.com/2017/02/e-commerce-forrester-research/
5. http://www.foundingfuel.com/slideshow/indian-ecommerce-in-10-
charts/
6. http://economictimes.indiatimes.com/industry/services/retail/online
-retail-consumers-to-cross-100-million-by-2017-assocham-
resurgent-india-study/articleshow/56417797.cms
7. http://economictimes.indiatimes.com/small-biz/startups/losses-of-
flipkart-amazon-snapdeal-would-have-allowed-isro-to-go-to-mars-
24-crore-times/articleshow/56679850.cms
8. http://www.cxotoday.com/story/top-10-trends-of-online-retail-in-
2017