E-commerce Certificate

Macro View

The Golden Tap by Kashyap Deorah

Overnight success takes 20 years, so we will go back 20 years to
start this discussion.

Mid-90s in the US – Junglee.com and Jeff Bezos famously started
Around the same time, other interesting companies – Google.

Two tracks: Google started searching for information
Amazon started searching for products

Other countries around the world started exploring the same model.

China: Alibaba, JD.com

India: Year 2000, there was the first coming of Internet in India
Rediff, Sify, Indiaplaza, Indiatimes, InfoEdge (Naukri.com) – search
engine for Jobs.

Year 2000 was early in India and even though Internet had arrives, it
lacked scale. 20M users in India.

Big crash of 2000 – all Internet companies struggled big time. Dot
com bubble.
Rediff, totday has a market cap of about $10M. Can you guess what
their market cap was in 2000. $10 Biliion!!!!

Then for a few years, there was nothing. Main reason was Intertnet
itself was not growing. It satyed at 20M number inching towards
25M/30M. Transacting users were very few – in single digit millions.

2006/07 – travel started becoming more mainstream.
The main reason for travel coming on Intrnet in India was? – IRCTC.
IRCTC in 2007/08 constitue what % of Internet trasnacions in India –

IRCTC made Internet happen in some sense in India.

Capitlizing on this huge trend, private travel companies (OTA’s
Online travel aggregators started seeing decent business)

- MMYT, Yatra, Cleartrip, Travelguru, Redbus

2007-2010 : years of growth in Online Travel.

Infibeam Venture money came in: Accel invested in FK in 2009 and Tiger came in. SPECIALLY when you reduce discounting. Futurebazaar. E-commerce Most estimates are around a total commerce today of about: $15B. Cash on Delivery. 2015 everybody was super excited about the market. While Internet penetration in India is growing. who is an Internet analyst. One defining moment in the industry around 2010 was the introduction of COD. It grew 44% in 2015 from 2014. The investment spurred more marketing activity. There is nervousness today around that 100B in 2020 number. There is this analyst in the US called Mary Meeker. What % of transaction in 2015 happened on smart phones vs. . computers: 70% Until. Myntra started. more purchases. all Internet products will benefit. Something very interesting started happening in 2013/14: Adoption of smart phones / mobile. Now in 2016: Internet users have swelled to: 277 million. As Internet access becomes better.Around 2009 – inspired by users coming online. the transaction didn’t show the same amount of growth. Today the situation is: Little bit nervous about the pace of growth. One came out an said 30B. Most esimates until last year were projecting this number in 2020 to be? – $100B Which made E-commerce leading companies very exciting. Some analyst came out and said – 50B. Flipkart started. 2015 end. discounting. Snapdeal started little later. Overll Intetnet users were 70-80M. By around 2012-13 there were not 20-30M transacting users. E-commerce started again.

More focus on consolidation Categories have been established – Platoforms. Retail of any kind makes low profits – Offline retail – Shopperstop. Travel. Amazon. Amazon . High volume of data – Interesting opportunity in Data Analytics . Food. Practo. Futurebazaar – they are low negative margin. Vertical plays (Lenskart. UX design . E-com sellers.More focus on paying users – less discounts.com in the US now makes 4-5% net margin. Very consumer oriented so great opportunities for product management . Good opportunities in digital marketing .some of them have built large businesses jusy selling online. Jabong. Lot of chaos still – high pressure . Major growth sector . Real Estate Sellers on who sell on FK. Opportunities for employment . Myntra). Good opportunities for engineering – lot of things being built from scratch – high performace needs . very low margin businesses.