Ashish Jhalani Founder & CEO – eTailing India

What is What is What is What is eCommerceeCommerceeCommerceeCommerce? ? ? ?

Origins

Evolution

Future

What is eCommerce???

What is eCommerceWhat is eCommerceWhat is eCommerceWhat 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 eCommerceWhat is eCommerceWhat is eCommerceWhat 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 eCommerceForms of eCommerceForms of eCommerceForms of eCommerce

• eCommerce has grown over the past 3o years and has

taken many forms most common of which are:

eTailing Buying and selling goods online thru online sites,

marketplaces etc.

M-Commerce Buying or selling of goods through a mobile device

using online payment mechanisms

T-Commerce The most recent form of

eCommerce and refers to buying goods & services

using a TV

S-Commerce Social Commerce using

various aids such as shopping tools, social

networks etc.

eCommerce eCommerce eCommerce eCommerce –––– InterestingInterestingInterestingInteresting FactsFactsFactsFacts

0

50

100

150

200

250

300

USA China Japan/France

Size of Market ($Billion)

India Size of market currently at $1 Billion, growing at a fast pace

1982: France Telecom

introduces Online Ordering

1990: Tim Berners launches World

Wide Web (WWW)

1995: Jeff Bezos launches Amazon

1996: IndiaMart launched as a B2B

Marketplace

2003: Amazon posts its first yearly profit

China

Set to become the

largest eCom Market

Europe

Single Largest block

USA

Current Largest

eCommerce Market

Copyright comScore

eCommerceeCommerceeCommerceeCommerce –––– Evolution of Modern RetailEvolution of Modern RetailEvolution of Modern RetailEvolution 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 Retail Modern Retail Modern Retail Modern Retail ---- FormatsFormatsFormatsFormats

B2C

Largest form of eCommerce across

the world

Dominated by Large Global

Companies such as Amazon

B2B

Mostly Regional with some Global

players

Dominated by Companies such as

Alibaba.Com

C2C Earliest form of

commerce itself, starting with

barter

Dominated by Large Players such

as eBay

Marketplaces – Common across all 3 formats

India India India India ---- Challenges & FutureChallenges & FutureChallenges & FutureChallenges & Future

Challenges Reality Future

Internet Connectivity Internet 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

Thank you