PRESENTATION ON

THE CURRENT
SCENERIO ON ECOMMERCE
PRESENTED BYMAHESH KUMAR
RAKSHITA PURIA
MAYANK FALWARIA

E-Commerce
E-commerce is buying and selling goods and services
over the Internet. Ecommerce is part of e-business. Ebusiness is a structure that includes not only those
transactions that center on buying and selling goods and
services to generate revenue, but also those transactions
that support revenue generation. These activities include
generating demand for goods and services, offering sales
support
and
customer
service,
or
facilitating
communications between business partners.

Continue.
By the help of the flexibility offered by computer
networks and the availability of the Internet , Ecommerce develops on traditional commerce. Ecommerce creates new opportunities for performing
profitable activities online. It promotes easier
cooperation between different groups: businesses
sharing information to improve customer relations;
companies working together to design and build new
products/services; or multinational company sharing
information for a major marketing campaign.

SEGMENTING E-COMMERCE
The Business to Business (B2B) grew from USD 135 Mn
to approximately 351 Mn from FY 2010 to 2012 (Ken
Research). In the B2B sphere, medium enterprises have
the highest contribution at 48% followed by 32% and 20%
of small and micro companies. Lack of awareness among
the micro enterprises regarding internet technology has
hampered growth. However things look promising as small
enterprises has displayed the highest CAGR of 69% in the
last 3 years. This is mainly because a majority of these
firms are run by young entrepreneurs who have higher
propensity to use internet as a platform for generating
sales. Players like indiamart.com, Tradeindia.com and
Alibaba.com have hogged a majority of the market share.
With a 3-firm concentration ratio of .957, the B2B market is
high concentrated.

In the Business to Consumer (B2C) domain, the

primary driver of growth is high internet penetration and
increase in the number of active users. The rise of the
disposable income of the middle class India has led to an
increase in online spending of the goods. According to
Internet and Mobile Association of India (IAMAI), as
many as 19.2 million people have looked for information
online, Out of these, 73% have bought either some
goods or services from the internet. The number of
people who shops online has doubled in mere two years
and is a positive sign for the ecommerce industry.

The industry can be segmented into mainly travel and

non travel sites. Online travel comprises 71% of the
Digital Commerce pie. This is because of the booming
urban internet savvy population who prefer to book rail
and air tickets online. The other segments mainly ETailing, Financial Services, Classifieds, and other online
services constitutes much lesser share of the digital
space.

Who are the users ?

The age-wise analysis revealed that 35 per cent of online
shoppers are aged between 18 years and 25 years, 55 per
cent between 26 years and 35 years, 8 per cent in the age
group of 36-45 years, while only 2 per cent are in the age
group of 45-60 years. Besides, 65 per cent of online
shoppers are male while 35 per cent are female.
55%

60%
50%

35%
40%

35%
Age

Male

30%

Female
20%
65%

8%

10%

2%
0%
18-25

26-35

36-45

45-60

GROWTH AND OPPORTUNITIES OF

E-COMMERCE IN INDIA
Online

shopping has seen a lot of traction in the last 12-18

months. India has almost 130 million online users at present.
The online user base is expected to cross 300 million in the
next 2 3 years and a larger percentage of people are
expected to transact online by 2015. This large base will
provide vast scope for e-commerce businesses to establish
themselves in India.
The report's headline say by June 2014, India would have
243 million Internet users, behind China (it has 300 million)
but ahead of the United States (207 million)..

COMPARISION OF PRESENT AND

FUTURE.

2013 was an exciting year

for Indian e-commerce,
which capped off an
incredible 5 years of
exponential growth, from
approximately $1.75 Bn in
2007, to over $14Bn by
2013. 2013 will see more
interesting trends and
more interesting
innovations in the Indian
e-commerce, as the
market matures.

RISE OF E- & M-COMMERCE

By June 2014, its user numbers

will be staggering - ahead of the
US and only a little behind
China - but there are gaping
holes in this growth story share.
said by Rajan Anandan,
managing director of Google
India.
In the coming years, ecommerce is expected to
contribute close to 8-10% of the
total retail segment in India.

Before e-commerce
Prior to e-commerce, many companies had to operate
their businesses in a retail store where customers
would receive one to one service with a sales
associate.

India has the highest potential of

E-Commerce in 2012-13

India will be the most successful B2C e-commerce platforms

country. Even in 2011 there were various factors on the country,
which inhibited the online business, such as the low Internet
penetration, cash inflow in market and the focus on money and
personal relationships. Adding cash on delivery payment and
easy use of net banking also power the conversion ratio of eCommerce sales.

Recently, mobile payment methods are also in popularity, so the

growth in online trading in 2012 is increasingly facilitated.

E-Commerce web site rise in traffic due to cheaper mobile tariffs

and increasing bandwidth of the fastest growing Internet markets
in India.

India, though started late in E-Commerce, did an excellent job in

bringing growth to this industry and is already giving physical
retail a run for its money. Indias e-commerce market was worth
about INR 19 Billion in 2009 and increased to INR 47 Billion in
2012. E-Commerce Market is expected to contribute to around

Example on e-commerce
Japan airline :Japan Airlines: Building an e-business
Near Term: To establish closer and stronger customer
relationships
Long Term: To increase customer retention rate and to stimulate
travel volume
After launching its Web site in 1995, JAL soon began exploring the
opportunity to launch e-commerce services via the Web. . A
more specific goal was to use Web-based e-commerce as a
means of further developing its domestic travel business Its first
initiative was to develop a Web-based ticket information and
reservation system.
JAL has reaped a wide range of business results from its ebusiness initiatives, including an increase in both domestic and
international revenues and substantially improved customer
satisfaction.
JAL reports a high degree of acceptance of its Web-based
reservation solution, with over ten percent of its direct
reservations (i.e., five percent of its overall reservation volume)
made online.

Benefits from e-commerce

Higher customer satisfaction

Increased customer retention rates
Increased travel volume
Faster and more efficient communication with
customer base.

Online travel

Online matrimony

Online books

E-Choupal

About e-Choupal

E-Choupal is a hindi word which means village

meeting place. Market is a meeting place where
vendors and customers is a virtual market place.
The idea of creating and leveraging an electronic
market place came from the brainstorming session
done by senior executives of itc-ibd.

CONCLUSION
India's e-commerce market, which stood at $2.5 billion in 2009, reached
$8.5 billion in 2012 and rose 88 per cent to touch $16 billion in 2013. The
survey estimates the country's e-commerce market to reach $56 billion
by 2023, driven by rising online retail.
The e-commerce is one of the biggest things that have taken the Indian
business by storm. It is creating an entire new economy, which has a
huge potential and is fundamentally changing the way businesses are
done. It has advantages for both buyers as well as sellers and this winwin situation is at the core of its phenomenal rise.
As Indian e-commerce market is in nascent stage but it will surely
amplify in years to come. Though there are some weak links, with
improvements in technology, they will be ironed out, making the ecommerce easy, convenient and secure. The ecommerce is certainly
here to stay.

Thank you