Ashish JhalaniFounder & CEO – eTailing India

eCommerce OpportunityDomestic & Global

Webinar Structure1. Introduction to eCommerce2. Building Blocks of eCommerce3. Domestic Trends & Opportunities4. Global Opportunities5. Q & A

What is eCommerce ??

What is eCommerce ??• Common Definition - eCommerce (or electronic commerce)

refers to the buying and selling of goods and services via electronic channels, primarily the Internet.

What is eCommerce ??

Perception Reality

eCommerce is only when people buy goods online

eCommerce exists in many forms, such as eTailing, M-commerce, T-Commerce, S-Commerce etc.

eCommerce only happens when you buy online

When you look for the best price for a good online, it constitutes eCommerce. In fact Search and Ads are two of the biggest components of eCommerce

eCommerce is a recent phenomenon eCommerce has been around for over three decades in various forms such as online ordering, electronic catalogues, automated data management systems, payment gateway solutions etc.

Forms of eCommerce

eTailingBuying and selling goods

online thru online sites, marketplaces etc.

M-CommerceBuying or selling of goods

through a mobile device using online payment mechanisms

S-CommerceSocial Commerce using

various aids such as shopping tools, social networks etc.

T-CommerceThe most recent form of eCommerce and refers to

buying goods & services using a TV

Evolution of Modern Retail

Ancient Retail• Based on Barter• Introduction of

Money simplified buying process

• Trade limited to physical touch & accessibility

Intermediate Retail• System based on

large companies & retail stores

• Electronic Payments simplifies buying further

Modern Retail• eCommerce in

multiple forms and formats

• Omni-Channel retail takes over with multiple options across the entire spectrum of services

Modern eCommerce - Formats

B2CLargest form of

eCommerce across the world

Dominated by Large Global

Companies such as Amazon

B2BMostly Regional

with some Global players

Dominated by Companies such as Alibaba.Com

C2CEarliest form of

commerce itself, starting

with barter

Dominated by Large Players such as eBay

G2_Transactions

with the Government

Tenders, Tax Filing, Business Registrations, et

c.,

Marketplaces – Common across all 3 formats

Building Blocks of eCommerce• Business Case

• Viable & Addresses A Real Need

• Technology• Platforms

• Custom Developed

Building Blocks of eCommerce• Payment Options

• Content• Product Merchandising & Product Details• Images & Attributes

• Marketing• Search Engine Optimization• Search Engine Paid & Social Media Marketing• Email Marketing• Affiliate Marketing

Building Blocks of eCommerce• Supply Chain & Distribution Channels

• Customer Relationship Management• Customer Service• Customer Loyalty / Rewards• Customer Feedback

Interesting Facts – eCommerce in India• Approx $1 Billion – Size of Market in India (excluding Travel)• Approx $6 Billion – Size of India’s Online Travel Market• 51% Of All Online Attributed to Tier 2 & 3 Towns• India’s Second Largest Online Population in APAC

China, 55.2% China, 54.0%

India, 9.3% India, 11.5%

Japan, 12.2% Japan, 11.4%

Southeast Asia, 9.4%

Southeast Asia, 9.6%

Rest of APAC, 13.9%

Rest of APAC, 13.5%

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Interesting Facts – eCommerce in India• India 3rd Largest Internet Population – China 1st & US 2nd

• India’s Online Population Youngest in BRIC (39% between 25 & 34)

• eCommerce Underdeveloped Compared vs. BRIC Peers• Significant Opportunity

• Largest Retail Subcategories – Apparel, Computer Software, Electronics

• Many Categories Still Un-Served

Advantages – eCommerce in India• Conduct Business 24 x 7 x 365• Access to Global Marketplace & Global Customers• Reduce Cost – Real Estate, Cutting Intermediaries• Speed to Market• Increase Brand Awareness• Greater Customer Insights• Limitless Real Estate for Product Selection

India – Challenges & Future

Challenges Reality Future

Internet ConnectivityInternet Connectivity limited and dependent on fixed lines or optic fibres

Wireless internet along with more and more reliance on mobiles to access internet would change the face on online shopping. More Indians own a mobile than a laptop or internet connection

Limited Payment Options

Less than 0.1% of country’s total population and less than 3% of online shoppers own credit or debit cards

M-Commerce, M-Wallet and Cross-Channel payments to release the true potential or eCommerce in the country leapfrogging the need to hold a credit card at all

Touch & Feel Touch & Feel act as a major influencer in buying decisions

Augmented Reality to change the way shopper buy and make decisions

Unlimited Options to Start• Global Marketplaces in India - eBay, Amazon• Domestic Marketplaces –

Flipkart, Snapdeal, Jabong, ShopClues, Infibeam, Yebhi, Pepperfry,and many more

• Business to Business Marketplaces –TradeIndia, IndiaMart, Alibaba, etc.,

• Self Operated & Managed Web Store – Platform or Custom Developed

Global Opportunities - USA

• 15.8% Growth rate in 2012 U.S. e-commerce sales• 27.1% Amazon’s 2012 growth rate

Global Opportunities - USA

• According to report published by Cushman & Wakefield, in 2012 global retail sales edged up 1% while online sales grew 14.8%. According to another report published by Morgan Stanley in January 2013, 6.5% of all

retail sales can be contributed to the online channels.

Global Opportunities - EUROPE

Questions & AnswersQ: We are launching a new product. Its an Electronic Pest Repellent. We would like to promote our product via the

eCommerce route. What is best category to place such a product in? Which sites have the maximum sales volumes for such products?

Q: How many ecommerce players in India can be called successful?

Q: What seems to be more successful in India between retailer and marketplace model and why?

Q: Re vertical players like babyoye /urban ladder more successful than horizontal players- snapdeal

Q: what is relevance of standardization on product identification and classification by the online retail?

Q: how can we improve productivity using e commerce

Q: Use of eCommerce in International Logistics business?

Q: How is a budget decided for starting an SMO strategy for an SME? How do we find that a particular industry is ready for dig mktg?

Q: Learnings and insights for B2B enterprises in e commerce

Q: Better Payment gateways and alternatives

Ashish JhalaniFounder & CEO – eTailing India

ashish@etailingindia.com

THANK YOU