e-Commerce Market – India February 2014
E commerce market in india 2014 - Sample
Jan 17, 2015
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Abstract:
Netscribes’ latest market research report titled e-Commerce Market in India 2014 captures the current scenario prevailing within the e-Commerce market in India. The market is mainly dominated by the online travel segment, while the online retail segment is witnessing the fastest rate of growth. Versatile shopping experience and rapid development of transaction facilities is further boosting opportunities for the remaining market segments. Even though the market is witnessing staggering growth rates, majority of the players are still facing dire shortage of funds. Raising capital funds to support daily business operations and online advertising expenses have become a major challenge for such players. Online retail operators, especially the inventory based players, are suffering from cost stack ups and charges incurred against customers opting for ‘Cash on Delivery’ mode of payment.
In an attempt to tackle these problems, players are now constantly focusing on gaining customer loyalty and trust. Some of the most prominent trends in the market in this regard include a host of loyalty schemes, promotional offers and high rate of discounts. Additionally, tweaking business models and turning into mainstream online retailers, opening up of ‘Brick and Mortar’ stores to tap the ‘offline’ customer base, opting for a ‘market place’ approach, consolidation and self owned brands are some other major trends observed so far in the market.
Coverage
• Overview of the e-Commerce market in India and forecasted market size data over 2013 to 2018
• Market Segmentation of e-Commerce by types
• Overview of the e-Commerce market in India by segments for the year 2013 and 2012
• Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government
• Overview of the market trends and differentiating past and current business strategies
• Analysis of the competitive landscape and detailed profiles of major players
Why Buy
• Get a clear understanding of the e-Commerce market in India, market dynamics and the various stages of the value chain
• Understand the current market segmentation and future growth potential of the market in India till 2018 and plan strategies to gain from it
• Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market
• Understand your competitors’ business structures, strategies and prospects, and respond accordingly
• Make more informed business decisions with the help of insightful recommendations provided to succeed in the market
Abstract:
Netscribes’ latest market research report titled e-Commerce Market in India 2014 captures the current scenario prevailing within the e-Commerce market in India. The market is mainly dominated by the online travel segment, while the online retail segment is witnessing the fastest rate of growth. Versatile shopping experience and rapid development of transaction facilities is further boosting opportunities for the remaining market segments. Even though the market is witnessing staggering growth rates, majority of the players are still facing dire shortage of funds. Raising capital funds to support daily business operations and online advertising expenses have become a major challenge for such players. Online retail operators, especially the inventory based players, are suffering from cost stack ups and charges incurred against customers opting for ‘Cash on Delivery’ mode of payment.
In an attempt to tackle these problems, players are now constantly focusing on gaining customer loyalty and trust. Some of the most prominent trends in the market in this regard include a host of loyalty schemes, promotional offers and high rate of discounts. Additionally, tweaking business models and turning into mainstream online retailers, opening up of ‘Brick and Mortar’ stores to tap the ‘offline’ customer base, opting for a ‘market place’ approach, consolidation and self owned brands are some other major trends observed so far in the market.
Coverage
• Overview of the e-Commerce market in India and forecasted market size data over 2013 to 2018
• Market Segmentation of e-Commerce by types
• Overview of the e-Commerce market in India by segments for the year 2013 and 2012
• Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government
• Overview of the market trends and differentiating past and current business strategies
• Analysis of the competitive landscape and detailed profiles of major players
Why Buy
• Get a clear understanding of the e-Commerce market in India, market dynamics and the various stages of the value chain
• Understand the current market segmentation and future growth potential of the market in India till 2018 and plan strategies to gain from it
• Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market
• Understand your competitors’ business structures, strategies and prospects, and respond accordingly
• Make more informed business decisions with the help of insightful recommendations provided to succeed in the market
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Transcript
e-Commerce Market – India
February 2014
2 E-COMMERCE MARKET IN INDIA 2013.PPT
Executive Summary
Market
Electronic commerce (e-Commerce) market in India has registered a growth rate of over xx% in the year 20-- from the year 20--
e-Commerce market size was pegged at INR yy tn in 20-- and is projected to attain a CAGR of about yy% to reach INR zz tn by 20--
Online travel and retail segment continued to contribute the most in the market size for the year 2012, followed by online financial services, ‘other services’ and digital downloads
Market Opportunity
Trends
Some of the prominent trends identified in the market include the following:
Changes in Business Models
Refreshed Strategies
Competition
Major e-Commerce Vendors
Flipkart Online Services Thomas Cook India Amazon eBay India
Times Business Solutions Infoedge India Monster Worldwide Expedia India
The e-Commerce market is brimming with opportunities for vendors, which when tapped effectively, will provide vendors with a scope to build a sustainable future
Some of the major opportunities in the market include the following:
Social Network Domain
Tier II & III Cities
Mobile Platforms
3 E-COMMERCE MARKET IN INDIA 2013.PPT
•Macro Economic Indicators
•Introduction
•Market Overview
•e-Commerce Technology
•Market Boosters
•Issues Hindering Profitability of Players
•Trends
•Competitive Landscape
•Consumer Insights
•Market Opportunity
•Strategic Recommendations
•Appendix
4 E-COMMERCE MARKET IN INDIA 2013.PPT
An example of e-Commerce system work model
e-Commerce Space
Regional Logistics Support Regional Warehouse Logistics Support
Warehouse
e-Commerce Vendor
Financial Service Provider
Consumers
Internet Enabled Devices
5 E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce in India is fast evolving and is expected to mature further in the ensuing years
•Registering a y-o-y (Year-on-Year) growth of over xx% in the year 2012, e-Commerce market is set course for a bright
future in India
• Currently, the market is dominated by the online travel and retail segments followed by financial services, digital
downloads, amongst others
• Factors such as a huge presence of internet users coupled with a continual increase in purchasing power of the Indian
population is mainly boosting the market
e-Commerce Market – India Overview
20-- 2012
INR tn
a
b
c
d
0
xxx
20-- 20-- 20-- 20--
Segment 5
Segment 4
Segment 3
Segment 2
Segment 1
e-Commerce Market Size & Growth – India e-Commerce Market Split (20--) – India
6
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce Market India (x/x) – Online xxx Overview
•Commanding, a market share of about , the online xxx segment drives the e-Commerce market
•Mainly comprises of abc, def & ghi • xxx currently happen to be the most visited online
xxx website The website manages to book an average of xxx
per month
• xxx
Online xxx – Snapshot Online xxx – Benefits for Players
Online xxx – Market Size & Growth (20xx)
Market Size Y-o-Y Growth
Major Online xxx Websites – (20xx)
Website Reach % - 3 months
Website A 0.0181%
Website AB 0.0357%
Website ABC 0.0458%
Website ABCD 0.0550%
Website ABCDE 0.0627%
Website ABCDEF 0.1240%
Website ABCDEFG 0.1915%
7
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
e-Commerce Market India (x/x) – Online xxx Overview – India Statistics (x/x)
Online xxx Demand – India
Demand – East India
Demand – North India
Demand – West India
Demand – Central India Demand – South India
8
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Growth in individual disposable incomes is boosting the e-Commerce market significantly
•Owing to a steady rise in the country’s GDP, the disposable income amongst the Indian population is also showing signs of tremendous improvement A greater proportion of the overall Indian population now have considerably higher spending power as a
result of which e-Commerce is gaining mass momentum
• Entry of new players in the market result in a stiff competition and consequently vendors resort to price cuts which in turn further strengthens the purchase power of the Indian population
Increased Spending Power Impact
Deprived Aspirers Seekers Strivers Globals
INR tn
a
b
c
d
e
0 2025e 2015e 2005
Core target consumer
groups
>1000
500-1000
200-500
90-200
<90
mn
a
b
c
d
e
f
0
2025e 2015e 2005
Per household annual income (INR ‘000)
Total No. of Household (mn) Aggregate Annual Disposable Income
9
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Expenses incurred in online advertising and customer acquisition is on the higher side
Cost per click Minimum
desired no. of clicks
Amount shelled out
Average cost per click refers to the expenses
incurred by e-Commerce vendors in order to generate one
click from the consumer
• Refers to the average click to purchase conversion ration
• On an average 1 out of every 100 clicks gets converted to purchases in India
It refers to the amount invested by e-
Commerce vendors in order to facilitate at least one successful
transaction
xxx
• xxx
Impact
This amount severely damages the profit
margins, especially when brand loyalty amongst
customers is almost zero in the market
10
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
COD has its own set of pros and cons, however of late it has started taking a heavy toll on the profitability
Losses Incurred for COD Impact • The concept of COD was an immediate success in gaining customer confidence, however it
levied its own set of hurdles on e-Commerce vendors
• The biggest risk factor associated with COD is the chances of product return, which in turn alleviates the overall expenses beared by vendors
• Consequently, these additional costs add up to the overall expenses of the vendors thereby bringing down the profit margins by manifolds
Transaction Split – e-Commerce India (20xx)
45% 55%
yyy xxx
e-Commerce Vendor
xxx
Customer
xxx COD Charges
Product Return
COD Expenses – e-Commerce Vendor India
These costs add up to a vendor’s expenses for a
single product delivered via COD mode
11
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
An example of e-Commerce ecosystem
Internet Infrastructure
Application Infrastructure
Intermediaries e-Commerce Companies
Comprises of companies offering basic IT
infrastructure and equipment required for
going online in the World Wide Web
Comprises of vendors which produce softwares
intended to facilitate online transactions and
other web services
Intermediary companies provide a proper and
organized platform for e- Commerce, so as to
facilitate online transactions
Companies which act as the interface for online
sellers as well as prospective buyers fall
under this category
Networking, Hardware and Software
Manufacturers, IT peripheral vendors,
Internet Service Providers
Web based commerce app, databases, search engine software, online
consultancy and multimedia application
developers
Industry specific companies such as online
travel players, financial service providers, web
based ad developers and content provders
Online e-Tailers, web based media and
entertainment companies, online ticketing companies
xxx xxx xxx xxx
Description
Company Type
Examples of Companies
Ecosystem Layers
12
SAMPLE Porter’s Five Forces Analysis
Bargaining Power of Buyers • xxx
Impact xxx
E-COMMERCE MARKET IN INDIA 2013.PPT
Threat of New Entrants • xxx
Impact xxx
Bargaining Power of Suppliers • xxx
Impact xxx
Threat of Substitutes • xxx
Impact xxx
Competitive Rivalry • xxx
Impact xxx
13
SAMPLE Public: Foreign Company – Company ABC (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Name Designation
Head Office Hyderabad
Category Products/Services
E-COMMERCE MARKET IN INDIA 2013.PPT
14
SAMPLE Financial Snapshot Key Ratios
Financial Summary • The company incurred a net profit of negative INR xxx bn in FY 20xx, as
compared to net profit of INR xxx bn in FY 20xx
• The company reported total income of INR xxx bn in FY 20xx, as compared to INR xxx bn in FY 20xx
• The company earned an operating margin of xxx% in FY 20xx, a decrease of xxx percentage points over FY 20xx
• The company reported debt to equity ratio of xxx in FY 20xx, an increase of xxx% over FY 20xx
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (USD)
PE Ratio (Abs)
Particulars y-o-y change
(20xx-xx) 20xx 20xx 20xx 20xx
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of
Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved Decline
Net Profit/Loss Total Income
-20
0
20
40
60
INR bn INR bn
a
b
c
d
0
20xx 20xx 20xx 20xx
Public: Foreign Company – Company ABC (x/x)
E-COMMERCE MARKET IN INDIA 2013.PPT
15
SAMPLE Public: Foreign Company – Company ABC (x/x)
Key Business Segments Key Geographic Segments
100%
50%
0%
20xx
100%
48% 45% 44% 43%
52% 55% 56% 57%
0%
50%
100%
20xx 20xx 20xx 20xx
xxx xxx
Business Highlights (1/2)
Description News
Online Retailers
E-COMMERCE MARKET IN INDIA 2013.PPT
xxx
16
SAMPLE
E-COMMERCE MARKET IN INDIA 2013.PPT
Consumer Insights: e-Commerce Segments (x/x)
a
b
c
d
e
0%
100%
Segment 6 Segment 5 Segment 4 Segment 3 Segment 2 Segment 1
xxx xxx
Segment 6
Segment 3
Segment 5
Segment 2
Segment 4
Segment 1
• x
e-Commerce Segments – Split (2012) e-Commerce Segments – Overview
e-Commerce Consumption – Gender Split (2012)
17 MOBILE INTERNET MARKET IN INDIA 2014.PPT
Thank you for the attention The e-Commerce Market – India 2014 report is a part of Netscribes’ Information Technology Series. For more detailed information or customized research requirements please contact:
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