Growth of ecommerce in India and ecommerce competition

Views:
 
     
 

Presentation Description

eCommerce in India has seen massive growth in last 5 years. The presentation looks at the ongoing competition amongst the top ecommerce websites in India - Amazon, Flipkart and Snapdeal, acquisition and investment in this space, and tries to explore the way ahead for the eCommerce Industry.

Comments

Presentation Transcript

PowerPoint Presentation:

E-Commerce Wars Image Courtesy - https://fbcdn-sphotos-c-a.akamaihd.net/hphotos-ak-xfa1/t31.0-8/10499364_10152619927046287_6623976979670809308_o.jpg

PowerPoint Presentation:

Image Courtesy - http ://www.forbes.com/sites/morganhartley/2013/01/24/the-growing-pains-of-indian-e-commerce-what-you-need-to-know/ Capturing India’s rapidly growing e-commerce market has been a divine cup of tech entrepreneurs for years. India is a country with a flourishing economy, rapid growth of internet insight, with a market of 1.2 billion people.   As Indian e-commerce grows, it is high margin businesses that generates secured returns for investors.  It will be businesses that are discovered by word of mouth, and are not forced to bleed money. Businesses that have huge margins on each order to cover cost of difficulties, or companies with almost limitless pockets to survive for long. E-commerce Market in India

PowerPoint Presentation:

Future of E-commerce Social Media as a Lead Generation tool Advertising & promotions on these social sites has increased chances of success to many folds. Mobile Commerce The latest trend in e-commerce focuses on mobile based shopping. Snapdeal gets half of its traffic from mobile, up from 5% around a year back & Flipkart gets 40% traffic up from 15%. Online Grocery Store Online grocery stores are gaining acceptance in India due to absolute convenience, ease of shopping & a fast-growing market. Innovation in logistics This model uses highly technically embedded drones or helicopters for instant delivery of items. The Way Forward Current Scenario Increasing broadband Internet & 3G penetration Growing Living norms Wider product range Busy lifestyles Wide usage of online categorized sites Rise of online marketplace model with websites like eBay, Flipkart, Snapdeal, etc

PowerPoint Presentation:

Big Players : Flipkart, Snapdeal, Amazon http://img1.wikia.nocookie.net/__cb20100929014950/logopedia/images/c/cd/500px-Amazon_com_logo_svg.png http://yelay.in/static/landing_page/img/flipkart_logo.png Image Courtesy - http ://i0.wp.com/stuffled.com/wp-content/uploads/2014/06/SnapDeal-Logo-EPS-vector-image.png?resize=1020%2C680 Amazon After comparing prices with other sites, Amazon recommends the amount of discounts to its sellers on products, but doesn’t force them to adopt. Sellers, however, end up keeping these suggested prices because Amazon finances the discounts . At the end of a certain period, sellers send a debit note to Amazon which contains the amount of discount that the seller gave on products. Debit note (also includes service tax that the seller collects from Amazon)  over and above what Amazon collects from the customer . Flipkart WS Retail Services Pvt. Ltd, a seller on Flipkart, accounts for more than 75% of the site’s sales. Flipkart suggests prices but unlike Amazon doesn’t typically pay the amount of discounts to sellers by cheque.  Flipkart has a closer business relationship. It forgoes commissions or listing fees that marketplaces usually charge their sellers During Flipkart’s recent Big Billion Day sale, many of the sellers apart from WS Retail were simply promised a certain amount and discounts were almost entirely funded by Flipkart.  Snapdeal F inances part or full discounts given by most of its sellers. Snapdeal pays sellers by Real Time Gross Settlement. Snapdeal refers to the discounts as “promotional expenses”. During Snapdeal’s recent Buy One, Get One promotional offer, sellers were paid for both products by Snapdeal, which charged its commission fee only on one item.

PowerPoint Presentation:

Rivalry / Funding E-commerce has been on a roller coaster ride over last five years To outnumber Flipkart’s funding number, Amazon announced $2 billion investment to its India focused marketplace, in July this year. 1 Flipkart, raised $1 billion from Tiger Global Management & Naspers. 2 SoftBank Internet and Media, Inc. (‘SIMI’) committed $627 million funding in Snapdeal, following which SoftBank became biggest stakeholder in the company. 3 Mukesh Bansal-led Myntra secured $50 million investment led by Premji along with existing investors Accel Partners & Tiger Global. 4

PowerPoint Presentation:

Who will Survive ? Seller’s Perspective 2014 , Over 54% of businesses reported a progress of more than 20% after revenue in online sales. Apparel sector with 82% & food with 80% have an advantage over consumer electronics with 72% growth. Report also forecasted baby products, books, home décor & jewelry as next in high growth. As per Spire’s quarterly white paper titled India’s E-Tailing Industry Image Courtesy - https:// brandingbuff.files.wordpress.com/2014/10/wpid-amazon-snapdeal-flipkart.jpeg?w=660

PowerPoint Presentation:

Expansion Ways Infosys co-founder, Narayana Murthy has partnered with Amazon . Premji was also part of a group of private investors who infused $50 million into fashion portal Myntra , which was later acquired by Flipkart . Mr. Azim Premji, Wipro chairman, had investments in Myntra and Snapdeal . Mr. Ratan Tata, Tata Sons Chairman Emeritus, has invested in Snapdeal . http://firstbiz.firstpost.com/corporate/e-commerce-wars-not-just-flipkart-vs-amazon-its-now-murthy-vs-premji-tata-93594.html Image Courtesy - http ://www.france-metallurgie.com/wp-content/Tata-steel-033.jpg

PowerPoint Presentation:

Indian customers return much of the merchandise they purchase online. 1 Cash on delivery is the preferred payment mode. 2 Payment gateways have a high failure rate 3 Internet penetration is low. 4 Feature phones still rule the roost.   5 Postal addresses are not standardized. 6 Logistics is a problem in thousands of Indian towns. 7 Overfunded competitors are driving up cost of customer acquisition. 8 Image Courtesy - http ://www.corpuss.com.br/corpuss/images/mix_images/business%203.jpg Challenges

PowerPoint Presentation:

Alibaba : The Chinese Leader Image Courtesy - http://projects.wsj.com/alibaba/ http://blog.leadsquared.com/wp-content/uploads/2013/07/Alibaba-image.png How Alibaba Compares With the Biggest Tech Firms Market cap, as of Sept. 23, in billions Alibaba - Most popular destination for online shopping, in world's  fastest growing e-commerce market. Transactions on its online sites were $248 billion last year, more than those of eBay & Amazon.com merged . One of the most valuable tech companies in world after raising $25 billion from its U.S. IPO.

authorStream Live Help