E-Commerce Industry

Section
C, Group
5

ABHISHEK YADAV

2014PGP011

DEVANSHI LADDHA

2011IPM020

FAIZAL JALEEL MUHAMMED

2014PGP117

POOJA BANTHIYA

2014PGP254

PRAKASH RAMCHIARY

2014PGP257

SHASHANK YADAV

2014PGP350

VEERARAGAVA RAO N

2014PGP417

Different E - Commerce
models
B2
C

B2
B

C2
C

C2
B

Evolution of E Commerce in
India

Source : The Rebirth of E Commerce in India, Ernst & Young

Report (2012)

Technological trends and major

innovations
Key Drivers of innovation / growth / profits
Increased Internet usage
Numerous VCs & PE investing into e-Commerce
Growth in online retail segment : grown 43%
reaches 60% penetration among online users
Increased scope of M-Commerce
Use of Online Advertisement & Social Media for
consumer engagement
Logistics : improvement in logistics has been key
to growth in ecommerce sector

E-commerce in news

DHL is planning to invest at least 100m in

India piloting a new e-commerce model [1]
Snapdeal ties up with Tata Value Homes to sell
apartments online [2]
The Ministry of Textile signed MoU with
Flipkart to provide online marketing platform
for handloom weavers [3]
E-commerce may create up to 50,000 jobs in
India[4]

Merger - Acquisition activity in

the E-Commerce Sector

Noteworthy acquisitions in internet retailing

in India:
Snapdeal.com

acquired Sequoia based Shopo.in

Myntra.com acquired Fitiquette
Zovi.com acquired Inkfruit.com
Flipkart buys out Myntra for $300 million

Snapdeal to tie-up with Tata Value homes to

venture into sell apartments on its site
The Indian M&A eco-system is still in the early
stages compared to countries worldwide like
US & Israel

Analysts views of companies /

industry : Opportunities

India E-Commerce in nascent stage.

Indian E-commerce to explode from $10 billion to $40 in
next 5 years
Estimated e-commerce market will touch $56 billion by
2023, driven by mounting E-retail
Internet retailing increases by 20% in 2013, rising to
Rs170.0 billion
Apparel & footwear internet retailing most important
internet retailing channel in 2013
Dell India Pvt Ltd is leading player in internet retailing with
an 8% value share in 2013
Internet retailing expected to increase at CAGR of 12%
between 2013-18

Analysts views of companies /

industry : Challenges
India demands
a cash on
delivery (COD)
option

Price wars :
the fierce
competition

Touch and feel

issue

Challenges

Competition
compounded
with little brand
recognition

Cyber Crime in
E-commerce

Vendor
Management :
an inefficient
system for
inventory
management

Major Players in Different

Segments
Online
Ticketing

Online Retail &

Marketplace

Makemytrip
Redbus
Bookmyshow
Yatra
Irctc

Flipkart
Amazon
Snapdeal
Ebay
Homeshop18.com

Online Deals

Online Portals

Mydala
Timesdeal
Couponduniya
Deals and You
Grabbon

jeevansaathi.com
Gaadi.com
Naukri.com
Magicbricks.com
Shaadi.com

Major Players : MakeMy Trip Inc.

Overview

Statistics

Competitors

It is an online travel company founded by Deep Kalra in the year 2000. It offers a
range of travel services in India as well as overseas, such as retailing of air
tickets, hotel packages, rail tickets, bus tickets, car hire, and ancillary travel
requirements such as facilitating access to travel insurance. The company also
offers mobile applications .

It is headquartered in Gurgaon, India and employs around 1,613 people. The

company recorded revenues of $228.8 million in the fiscal year ended March
2013, an increase of 16.4% over 2012. The company's operating loss was $18.1
million in fiscal 2013, as compared to an operating profit of $4 million in 2012. Its
net loss was $27.6 million in fiscal 2013, as compared to the net profit of $7.2
million in 2012.

Yatra Online Private Limited

Limited
Kuoni Travel (India) Private Limited

- Cleartrip Travel Services Private

- Booking.com

Major Players : Flipkart India Pvt Ltd.

Overview

Statistics

It is an e-commerce company founded in 2007, by Sachin and Binny Bansal. It

operates
exclusively
in
India,
where
it
is
headquartered
in Bangalore, Karnataka. It started off from selling books in 2007, and then
entered consumer electronic category with the launch of mobile phones. Since
then it kept adding more products. The company's payment services include
cash on delivery, a 30-day replacement policy, easy monthly installment (EMI)
options, and free shipping.

It is headquartered in Bangalore, India and employs around 10,000 people. The

company recorded revenues of INR 60.8 billion (USD 1.0 billion) in the fiscal year
2013-2014. It reported a loss of 281.7 crores for the fiscal year ending march
2014. It reported a net. Recently Flipkart acquired Myntra for USD 300 million.

HomeShop18.com
Snapdeal

Competitors

- eBay.in
- Amazon.in

Major Players : Mydala.com

Overview

Mydala was inaugurated in November 2009, and co-founded by Anisha Singh (CEO), Ashish
Bhatnagar (CTO)and Arjun Basu (CFO).It is headquartered in New Delhi, India. It was
established with the objective of group buying. mydala provides discount offers across
categories such as restaurants, gadgets, entertainment, travel, body art, spas, salons and
gyms. Currently, mydala is a marketing platform, which affiliates merchants with consumers
through channels on Web, WAP and mobile application.

Statistics

Mydala clocked revenues over INR 6000 million last fiscal year. Today selling over
150,000 coupons / vouchers a day, the company is aiming at a valuation of USD
200 million. It is also aiming a fresh fund raise to the tune of USD 40 million as it
aims to expand its operations in the country.

Timesdeal
Couponduniya

Competitors

- Deals and you

- Grabbon

Major Players : Naukri.com

Overview

Statistics

Naukri.com is an Indian job portal operating in India founded in March 1997 by Sanjeev
Bikhchandani. It is Indias No.1 Job Site, offering end to end recruitment service. It publishes a
monthly report called Naukri Job Speak. The site was established in 1997 by Info Edge
(India). Info Edge is a listed company on the Bombay Stock Exchange and National Stock
Exchange. It went public in November 2006

. It has 4.5 million registered users with over 150 million page views per month. It advertises
over 75000 jobs and offers innovative recruitment solutions, providing their 2000 clients with
the right relevant candidates. Its aim is to enhance, simplify and reduce the recruitment cycle.
Its profit in the first quarter of financial year 2015 increased 35.4 percent to Rs. 398 crores vs
Rs. 294 crore reported in the same quarter a year ago.

IIM jobs.com
Monsterjobs.com

Competitors

-Shine.com
-Linked in

MACROECONOMIC EFFECTS

1.
2.
3.

IT Act has been introduced to meet the following

objectives:
Curb Cyber Crime
E-governance transactions viability
Enable e-commerce transactions
The Government of India has given approval to 100 per
cent FDI in ecommerce and has come to the decision of
exempting such transactions from the tax constraints.
Other incentives such as exemption of tax on interest on
external commercial borrowings and lower taxation has
been extended to the IT sector

MACROECONOMIC EFFECTS

For international trade, the European Commission

has passed on the responsibility of collecting the
applicable VAT to the suppliers of products.
Whereas, the United States, opposes any such
taxes on the net price.
Domestic e-commerce companies are facing
competition from global entities such as Amazon,
Alibaba, Rakuten and Walmart. These companies
are investing heavily to increase their presence in
the Indian market.
Indian software industry has already claimed its
hold by providing unparalleled IT solutions to the

REFERENCES
Chilkoti,A. (2014) DHL positions itself for India e-commerce boom, Financial
Times, August 26, http://blogs.ft.com/beyond-brics/2014/08/26/dhl-positions-itselffor-india-e-commerce-boom/ (as on August 28,2014)
Amy Kazmin. (2014) Indias Snapdeal tries experiment to sell apartments online,
Financial Times, August 26, http://www.ft.com/intl/cms/s/0/21c8504a-2d1d-11e4911b-00144feabdc0.html#axzz3BhpykU5v (as on August 28,2014)
Modi govt joins hands with Flipkart to boost handloom sector; provide online
platform for weavers, Economic Times, August 25,
http://articles.economictimes.indiatimes.com/2014-0825/news/53205435_1_handloom-weavers-flipkart-marketing-platform (as on
August 28,2014)
PTI, (2014) E-commerce may create up to 50,000 jobs in India, Times of India, May 26,
http://timesofindia.indiatimes.com/tech/jobs/E-commerce-may-create-up-to-50000-jobs-inIndia/articleshow/35615092.cms (as on August 28,2014)

The Rebirth of E Commerce in India, Ernst & Young Report (2012)

E Commerce in India: Legal, Tax and Regulatory Analysis, Nishith Desai
Associates (2013)
State of e Commerce in India, comScore Research Report for ASSOCHAM India
(2013)
The Rise and Rise of E Commerce in India, India Brand Equity Foundation
(2013)

REFERENCES

PTI, (2014) E-commerce may create up to 50,000 jobs in India, Times of

India, May 26, http://timesofindia.indiatimes.com/tech/jobs/E-commercemay-create-up-to-50000-jobs-in-India/articleshow/35615092.cms (as on
August 28,2014)
State of E-commerce in India
http://www.assocham.org/arb/general/Comscore_%20ASSOCHAM-reportstate-of-ecommerce-in-india.pdf (as on 27 August 2014)
Key Growth drivers for the future E-Commerce Industry: The change of
Paradigm and its Future, HCL Technologies (2013)
India Technology Product M&A Industry Monitor Report
http://www.ispirt.in/Media/Documents/India-M-A-Product-Industry-MonitorJune-24-2014-FINAL.pdf (as on 27 August 2014)
http://www.ecommerce.etcetra.co.in/2011/06/29/logistics-and-itschallenges-in-indian-ecommerce/
The Growing Pains of Indian E-commerce : What you need to know
http://www.forbes.com/sites/morganhartley/2013/01/24/the-growing-painsof-indian-e-commerce-what-you-need-to-know/ (As on 27 August 2014)

THANK YOU