PowerPoint Presentation

INTERNET ECONOMYINTERNET network of computers which permits access and sharing of information

INTERNET ECONOMY impact of this network on the economic aspects of societyINTERNET ECONOMY

ACTIVITIES SUPPORTING THE INTERNET

ACTIVITIES SUPPORTED BY THE INTERNET

ACTIVITIES BENEFITING FROM THE INTERNET

ACTIVITIES SUPPORTING THE INTERNET

INTERNET SERVICE PROVIDERS SOME OF THE BIGGEST COMPANIES IN THE COUNTRY

TELECOM COMPANIES -- SOME OF THE BIGGEST COMPANIES IN THE COUNTRY

NETWORK EQUIPMENT (eg. ROUTERS) MANUFACTURERS eg. SOME OF THE BIGGEST COMPANIES LIKE CISCO ACTIVITIES SUPPORTED BY THE INTERNET

E-COMMERCE

SEARCH ENGINES

E-HEALTH

E-GOVERNANCEE-COMMERCE

B TO B -- speed of operations goes up multiple times

B TO C personalised service is possibleE-COMMERCE

E-commerce market in India

2.5 billion USD 2011 6.3 billion USD

2012 14 billion USD E-COMMERCE

About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).

About 12.5% is online retailing 1 crore online buyers growing at 30% pa

International growth rate 8% pa DRIVERS IN INDIAN E-COMMERCE ---- 1

Increasing broadband Internet (growing at

20% (MoM) and 3G penetration.DRIVERS IN INDIAN E-COMMERCE --- 2

Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes

DRIVERS IN INDIAN E-COMMERCE --- 3

Availability of much wider product range compared to what is available at brick and mortar retailersDRIVERS IN INDIAN E-COMMERCE --- 4

Busy lifestyles, and

Lack of time for offline shopping DRIVERS IN INDIAN E-COMMERCE --- 4

Urban traffic congestionDRIVERS IN INDIAN E-COMMERCE --- 5

Lower prices compared to brick and mortar retail driven by removal of intermediaries and reduced inventory and real estate costsE-COMMERCE

Overall e-commerce market is expected to reach US$ 24 billion by the year 2015

Online travel and e-tailing will contribute equally.

Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites like Airtel.in, Vodafone.in E-COMMERCE

COMMON E-COM COS IN INDIAFlipkart, HomeShop18, Snapdeal, Indiatimes and MakeMyTrip

GLOBAL E-COM COS IN INDIAE-bay started some time back

June 2013 amazon.com started operations in IndiaSEARCH ENGINE

PIONEER ---- YAHOO

LEADER ----- GOOGLE

GOOGLE TURNOVER USD 50 BILLION

HAS MADE ENCYCLOPAEDIA OBSOLETE

HAS MADE INFORMATION AVAILABLE TO THE AVERAGE MAN AT THE CLICK OF A SWITCHE-HEALTH --- 1 Using Internet for health

Electronic health records: enabling the communication of patient data between different healthcare professionals (GPs, specialists etc.)

E-HEALTH --- 2

Telemedicine or cyber medicine : physical and psychological treatments at a distance, including tele-monitoring of patients functionsE-HEALTH --- 3

Consumer health informatics: use of electronic resources on medical topics by healthy individuals or patientsE-HEALTH --- 4

Health knowledge management: e.g. an overview of latest medical journals, best practice guidelines etc. available to doctors to improve themselves

E-HEALTH --- 5Using Internet for health

Virtual healthcare teams: consisting of healthcare professionals who collaborate and share information on patients through digital equipment E-GOVERNANCE

USING ICT (INFORMATION & COMMUNICATION TECHNOLOGY) TO DELIVER GOVERNMENT SERVICES

E-GOVERNANCE IS OF THREE MODES

G TO C

G TO B

G TO GE-GOVERNANCE

IMPORTANT SERVICES IN PROCESS OF BEING DELIVERED

INCOME TAXPENSIONSPASSPORTSLAND RECORDSHEALTH REIMBURSEMENTSPDS E-GOVERNANCE

UDIPI DISTRICT

ALL 161 GRAM PANCHAYATS INTERNET ENABLEDTAX COLLECTION, BUILDING LICENSE, BUYING AND SELLING LAND REGISTRATION ONLINEGOVERNMENT OFFICIALS BEING TRAINED IN NET USAGEACTIVITIES BENEFITING FROM INTERNET

COST OF INFORMATION SEARCH IS LESS

TIME FOR INFORMATION SEARCH IS LESS

PRICE COMPARISONS ARE FASTER AND BETTER

GREATER CHOICE IS POSSIBLEMCKINSEY STUDY OF INTERNET ECONOMY

STUDIED 13 COUNTRIES INCL. INDIA CHINA ACCOUNTING FOR 70% GLOBAL GDP

> 2 BILLION INTERNET USERS (TOTAL GLOBAL POPULATION 7 BILLION)

INTERNET ECONOMY > AGRICULTURE & ENERGY

MCKINSEY STUDY OF INTERNET ECONOMY

INTERNET ECONOMY = AVG 3.5% GDP

INTERNET ECONOMY DOUBLED IN LAST 5 YEARS

COMPANIES WITH STRONG WEB PRESENCE GREW TWICE AS FAST IN LAST 5 YEARS

IMPACT OF INTERNET ON RETAILKEEP PRODUCTS THAT GAIN FROM BEING IN A PHYSICAL STORE

NOT CD & DVD BUT CLOTHES

PRODUCTS WHERE CUSTOMERS WANT ADVICESTORES MUST BECOME FUN PLACES TO VISIT

The cinema theatre effectSTORES MUST BUILD RELATIONSHIPS WITH CUSTOMERSSTORES MAY BECOME SMALLER AGAINREAL LIFE INDIAN EXAMPLE

Of

THE IMPACT OF INTERNET ON RETAILBIG BAZAAR DIRECT

COMBINES

REACH OF THE TRADITIONAL NEIGHBOURHOOD STORE &

BRAND NAME OF BIG BAZAAR

BIG BAZAAR DIRECT

NEIGHBOURHOOD STORE PERSON VISITS YOUR HOUSE WHEN YOU SMS

SHOWS YOU THE BIG BAZAAR DEALS ON TABLE

YOU MAKE YOUR CHOICE & BIG BAZAAR CONFIRMS THROUGH SMS

YOU PAY FRANCHISEE CASH

PRODUCTS DELIVERED IN THREE DAYSHOW CUSTOMER GAINS

GETS BIG BAZAAR DEALS EVEN IF THERE IS NO BIG BAZAAR STORE IN THAT TOWN

GETS BIG BAZAAR DISCOUNTS SITTING AT HOME

GETS HOME DELIVERYHOW FRANCHISEE GAINS

BIG BAZAAR BRAND GETS HIM SALES

EARNS 7 TO 9 % COMMISSION FROM BIG BAZAAR ON SALES

ZERO INVENTORY COSTS

NOMINAL FEE OF RUPEES 3 LAKH TO BECOME FRANCHISEEHOW BIG BAZAAR GAINS

ENCASHES BRAND BY GETTING REVENUE FROM TOWNS WHERE THERE IS NO BIG BAZAAR SHOP

GETS NEW SALES CHANNEL APART FROM DIRECT SALES

LEVERAGES LOCAL CONNECT OF FRANCHISEE TO GET BUSINESSBIG BAZAAR DIRECT

LAUNCHED IN MAHARASHTRA AT NAGPUR & AMRAVATI WITH 15 FRANCHISEES

NAGPUR NATIONAL WAREHOUSE OF FUTURE GROUP

NEXT MUMBAI, DELHI, HYDERABAD, AHMEDABAD

IS CURRENTLY IN TOUCH WITH 4600 APPLICANTS ACROSS COUNTRYBIG BAZAAR DIRECT

A BIG BAZAAR STORE STOCKS AN AVERAGE 30,000 PRODUCTS.

BIG BAZAAR DIRECT WILL INITIALLY OFFER 2000 PRODUCTS ACCESSORIES, FURNITURE, PACKAGED FOODS, ELECTRONICS

WILL ADD FOOD ITEMS AND GROCERY

WILL REDUCE DELIVERY TO SAME DAYWHAT CAN GO WRONG

DELAY AND ERRORS IN DELIVERY

BAD CONSUMER EXPERIENCE CAN HURT MOTHER BRAND

REVENUE GENERATION FOR FRANCHISEE NOT UP TO EXPECTATIONIMPACT ON TOURISM INDUSTRYTOURISM INDUSTRY

EUROPE 70% HOUSEHOLDS INTERNET ACCESS

INDIA 10% HOUSEHOLDS INTERNET ACCESS

TOUR OPERATORS & TRAVEL AGENCIES BECOMING REDUNDANT

GEENRAL PURPOSE TOURISM REPLACED BY NICHE TOURISMIMPACT ON HOUSING INDUSTRYHOUSING INDUSTRY

INFORMATION ABOUT NEIGHBOURHOODS AVAILABLE ON THE NET

INFORMATION ON BUILDERS AVAILABLE ON THE NET

INFORMATION ON HOUSEHOLD ARTICLES AVAILABLE ON THE NET

IMPORTANCE OF BUILDER HAS DECREASEDIMPACT ON INDUSTRY

BUYER POWER HAS INCREASED

SWITCHING COST HAS DECREASED

ENTRY BARRIERS HAVE DECREASED