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E-Commerce Market

E-Commerce Market

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Published by Anirudh Chari
The purpose of this document is to provide budding entrepreneurs an insight into the sector along with areas which need to be targeted to be successful in the market.
The purpose of this document is to provide budding entrepreneurs an insight into the sector along with areas which need to be targeted to be successful in the market.

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Published by: Anirudh Chari on Nov 14, 2011
Copyright:Attribution Non-commercial

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12/20/2012

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An Introduction to E-CommerceMarket in India
by Anirudh Chari
 
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I havenot undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected fromresources on the published public domain and meetings with market participants. Wherever sufficient information was not available in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request anyuser reproducing the information to contact me before using the same,
E-
Commerce Market has evolved from a ‚here
-
also‛ to a dedicated platform to showcase,
promote and sell products over the internet to an audience not limited by geography or storelocation
1
199419951996199719981999200020012002200320042005200620072008200920102011
Backbone ofe-commerceformedNetscapeLaunchedSSLEncryptionenabledOnlineShoppingOne of thefirst largecompaniesto reach $1mn in onlinesalesGoogleLaunchedits betaversionUSPSLaunches e-stampsEbayacquiresPayPal for$1.5 mnAmazonposts firstever profits
 
Facebooklaunched forcollegestudentsAcquiresYoutubeiTunesbecomesthe largestdigitalmusicretailer
Broadbandpenetrationwitnessessudden growthin mostmarketsglobally3G networks byMobileoperators madeoperational
New business models startemerging globally such asGroupon, etsy, Kaboodle, etc.largely oriented to facilitateonline shoppingMobile commerce witnesses aspurt backed by growingnumber of MIDsThe roots for social
e-commerce were laidIndian companies start toexperiment, newentrepreneurs start onlinebusinessesEven traditional players suchas utsav sarees, Chirag Din,etc. find success in e-commerce
 
All views and opinions in this document are personal and / or have been gathered based on extensive research in the sector and personal interest. All data points have been collected through secondary research, informal industry contacts and I havenot undertaken any additional work to establish the reliability of the sources or to evidence independence of the relevant source. Furthermore, collection of data for market assessment has been limited to such information as can be collected fromresources on the published public domain and meetings with market participants. Wherever sufficient information was not available in the public domain, suitable assumptions were made to extrapolate values for the same. Hence, would request anyuser reproducing the information to contact me before using the same,
The e-commerce market in India is currently in its nascent stage and is expected to grow atabout 35% CAGR over the next 3-4 years
2
Thee-commercemarketinIndiaisestimatedtobevaluedatoverINR30,000Croresandisforecastedtogrowataround35%CAGRoverthenext3-4years
Theusagepattern,however,hasremainedquiteuniformandskewedovertheyearswithservicescontinuingtodominatetheoverallmarketwhileothersstilllagbehind.
Onlinetravelcontributestocloseto80%ofthetotalmarket
Financialservicesmarket,suchasonlineinsurancepaymentsandtransactionsthroughtradingaccounts,grewatanestimated25%duringtheone-yearperiodendingDecember,2010
 ‒
Comprising8%ofthee-commercemarket,thissectorisexpectedtogrowby34%by2012
Onlineretailingcontributestoabout8%ofthetotalmarket.Itcomprisesofbuyingconsumeritemssuchascameras,computers,home&kitchenappliances,flowersandtoys,giftsonline
 ‒
ThiscategoryhasgrownfromaboutINR980croresinyear2007tooverINR1,500inyear2009;andiscurrentlyvaluedataboutINR2,200crores.
8,14614,03019,68831,59846,520010,00020,00030,00040,00050,000CY 2007CY 2008CY 2009CY 2010CY 2011
E-Commerce Market in India (in INR Crores)
TravelNon travelTotal E-Commerce IndustryOnline Travel,76%DigitalDownloads,2%FinancialServices, 8%Other OnlineServices, 6%e-tailng, 8%
Components of the E-Commerce Market in India
Source: IAMAI report on the E-commerce Market in IndiaSource: IAMAI report on the E-commerce Market in India

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