Latest Trends of E-commerce in india

Made by Garima Rajput Sonali Talwar Neha Aggarwal

E-commerce
e-commerce represents the cutting edge of success in this digital age. E-commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium, i.e. the Internet or phone. On the Internet, it pertains to a website, which sells products or services directly from the site using a shopping cart or shopping basket system and allows credit card payments.

It involves conducting business with the help of the electronic media, making use of the information technology such as Electronic Data Interchange (EDI). 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.

Current status of the indian Ecommerce market

YEAR 2009 2011 URBAN(Mn) 64 82 RURAL(Mn) 6.5 18 TOTAL(Mn) 70.5 100

As of March 2011,there are 100 Mn claimed internet users as compared to March 2009 when there were nearly 71 Mn claimed internet users , there has been a growth of around 15%.This momentum is expected to hold up and by september 2011,it is expected that there will be 112 Mn claimed internet users.

Cont
302 Mn Urban population
114 Mn Total computer Literate Year(2011) March June September Active internet users(Mn) 65 67 70 Claimed internet users(Mn) 82 85 88

Cont
In march 2011,India has witnessed an 18% rise in active internet users among urban cities, amounting to 65 Mn across in country.Number of people who have ever used internet and PC literates have also rised to 82 Mn and 114 Mn respectively.By the september,we have 88 Mn claimed internet users and 70 Mn active users.

Latest investment stories

Companies such as Flipkart are being valued at USD 1 billion and Amazon finally going to make inroads in the indian Ecommerce market.We are going to witness this trajectory and an Indian Amazon story which will see a Mother of all battles among various Ecommerce players.

On the products front,the current Ecommerce market is skewed towards travel based transactions.

81 % : Travel transactions 6 % : Product Purchase

The promising future of Ecommerce in India :

India is poise to be one of the top e-commerce hubs in the near future as the number of internet users boom. A major online retailer,Homeshop18,which has almost two thirds of its sales coming from television shopping model says that there shares are increasing as more and more indians making piurchases online.

Reasons for this growth :

Continuing niche and generalized websites that are being introduced over the internet. Level of comfort of customers. Change in the purchase behaviour of the customers.

Some of the Ecommerce buzz words that will come up in near future are:
Evolved Payment options. --- Currently used formats are : cash on delivery(COD),DD/cheque,Net banking,Credit cards. Rural Ecommerce. Group buying/Couponing Customer Experience

The Ecommerce models prevalent in India :

Online market place Auction style transaction : ebay.in,tradus.in,infibeam.com Direct-to-customer Direct retail : homeshop18.com,indiaplaza.com Click and mortar model : futurebazaar.com,archiesonline.com,shoppers top.com,yebhi.com

Cont
Group buying : snapdeal.com, koovs.com Pure play E-tailing : amazon.com,flipkart.com

The 4Ds of Ecommerce :

1. Disposition(Risk/convenience) Till recently ,buyers or prospects were predisposed to the fact that they prefer not shopping over internet. Further, the general feeling of untrustworthiness clouded the willingness to make an online transaction.

Cont
Now users tend to balance between risk and convenience.There are two catagories : High convenience and high risk : e.g-DSLR cameras,laptops etc. Low risk and low convenience : e.g-organic food.

2. Delivery ( Distribution) The users buy a product on a promise made by the provider of their arranging for delivery. Delivery could affect the decision of buying the product over the internet.

3. Discount(Deals) The primary motive of buying a product over the internet instead from the traditional channels is the discounted price at which it could be purchased. The popularity of websites offering local discount deals has been apparent,lately.

4. Delight & Discourse : The satisfaction with the product(delight)is the main indicator of the loyality towards a medium of purchase. If the customer is delighted with the purchase,it is very likely they would recommmend it to others or participate in online forums (discourse).

Challenges :
User Side Problems : Lack of trust Security concerns Fulfillment issues Shopping experience Lack of touch & feel Government guidelines

Supplier side challenges : Logistics and Sourcing. Retail Margin.

Thank you !!