growth of indian e-retail industry
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School Of Future Studies & PlanningDAVV, Indore
Presentation on“A Model For Growth of E-retailers in India”
(Research Papers Review)
Submitted to: Submitted By:Mr. Vandit Hedau Jayant Nannore
Faculty SFSP, DAVV MBA(BF)
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Introduction
• What is E-Commerce?In a layman’s language; purchasing products on the Internet is called
ecommerce.It is an act of having a commercial activity over an electronic medium.In simple words, Electronic commerce involves buying and selling of goods
and services over the World Wide Web. Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to someone sitting miles apart just by click of a mouse.
• What is E-retailing? E-retailing is B2c(business to customers)business model that executes a
transaction between businessman and final customer Subset of e-commerce
– e-tailers Retailers who sell over the Internet
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Evolution of E-tailing in India (before 2007)
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Evolution of E-tailing in India (after 2007)
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Market Size & CAGR Stat
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E-commerce formats in India
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Foreign E-tailers Player in Indian Market
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The e-commerce matrix Business Consumer Government
Business B2BSupply Cain, Wholesalers
B2CRetailers (Goods or Services)
B2GContract bidding,Privatization
Consumer C2BPublic Bidding marketplaces, Auctioneers
C2CPublic flea markets
C2GPublic Government auctions
Government G2BTax and fee collection
G2CTax and fees collection
G2GBudget allocation
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Business-To-Consumer Business Model In this form business must
develop attractive electronic marketplaces to entice and sell product and services to consumer
Portal E-Tailers Content provider Transaction broker Market creator Service provider Community provider
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Distribution Channel(Conventional v/s online)
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Traditional Retailing network(Physical Retail store)
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E-Retail Network
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How the business model of online retailers add value compared to physical retailers?
Physical Retailers Advantages• Provides face to face
selling, making shopping an experience.
• Customers get access to better Product information through in-store sales representatives.
Disadvantages • Higher Cost of Operation
Online Retailer or E-tailer Advantages• Cost Effective: does not have to
invest in physical infrastructure (store, real state, sales force) except warehouse
• Provides ease and Convenience of shopping at anytime and from any location
Disadvantages • Have to invest in Logistics
operations• Highly competitive• Little customer interaction
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Order and Placement Process
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ESSENTIALS FOR CUSTOMERS
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Delivery network
• Acquire a local player to make the distribution system easy.
• Establish a warehouse in every major city in India like Mumbai,Delhi,Chennai,Kolkata,Hyderabad etc.
• Agent system can play a vital role to deliver your product quickly .
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• Efficient inventory system.• India is a geographically complicated country
and languages varies from state to state so you need to employ local people for the product delivery system.
• Use effective communication device to locate your product at a particular instances.
• The packaging system should be so strong that it could protect the product.
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Challenges with order fulfillments: Logistics
Problem area: Order Fulfillment is an important part of ecommerce Value chain. Most ecommerce providers use a combination of their own logistics teams and also tie-ups with leading local logistics.
Based on research, the following leading names in logistics names were revealed:
1. DTDC logistics (part of DHL ,all India presence)2. Gati (Maharashtra, Karnataka) 3. BlueDart (part of DHL ,all India presence)4. VRL Logistics (Karnataka)5. Aramex logistics (Maharashtra, Karnataka)6. Vichare courier( Maharashtra)
Most of these provide tracking services for customers and people are willing to pay a premium for proper delivery.
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Characteristics of Successful E-Tailing
– High brand recognition– A guarantee provided by highly reliable or well-known vendors– Digitized format– Relatively inexpensive items– Frequently purchased items – Commodities with standard specifications– Well-known packaged items that cannot be opened even in a
traditional store
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Product Categories Suitable for E-tailing
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REASONS FOR NOT SHOPPING ONLINE
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Factors to gain Competitive advantage
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The Future of Indian E-Retail Industry
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Online shopping behavior among Indians (based upon survey in 4 metro cities)
• 60% online users in India visited a retail site in November 2011.
• The number of active online shoppers is projected to reach 38 million by 2015
• 49% online consumer is young male population ranging between 21 and 29 years.
• Tier-II & Tier-III online consumers are aspiration driven.
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THANK YOU!