RIL

 RIL investment of 24 B $ for ecomm platform

 latest sign of the oil-to-petrochemicals group’s pivot toward data and digital services for
future growth
 network of partners through acquisitions and stake purchases

Ecomm policy feb 2019

-Predatory pricing
-traditional retailers opposing e comm
- bars data sharing to foreign companies but to msme and stratups
(restricting needed)
-level playing field
-Anti- piracy-Online retailers must display phone numbers and email addresses for
consumer grievances and offer a primary solution to each problem within a week
- unauthorized e-commerce websites, especially Chinese firms such as Shein, Romwe
and Club Factory. These firms have been found to be misusing the “Gifting” route to
avoid customs duty and GST instead of customs route
- magnitude of these changes in mind the government has given a window of 3 years to
comply with the draft

 Rising losses for amazon and flipkart

 Amazon investing 4k+ crore despite 7k+ loss in india; fresh funding is indicative of Amazon's
confidence in the Indian market.
 Walmart 77 % stake of flipkart with $16 B deal. FDI, SoftBank, more sellers from tier 2 cities
 Walmart is known for its culture of innovation and service
 . The Indian e-commerce market space was drying up as funding ebbed following
liquidity issues due to Demonetization and GST bottlenecks.

e-commerce accounts for under 5 per cent of India's retail market but is expected to grow
manifold as more and more Indians come online to shop.

HSBC report pointed out that e-commerce alone could create 12 million new jobs over a
decade

loss-making discounting strategy of e-commerce companies has been affecting the entire
retail sector.

better and stronger business models are required to be framed to carry on with e-
commerce

Buyer penetration is also expected to increase from present 12% to 18% by 2020.

 Buying capacity in rural has increased

 Financial inclusion ; opening of bank accounts
 Digital inclusion; largest data consumption market
 Tech intro and increased connectivity
 development of Customisation and Distribution Centres has helped smoothen out the
process of delivery
 whopping 59 per cent of penetration in urban India, the next surge of mobile internet
users will be coming from the rural sector. At present mobile internet penetration in rural
India is as low as 18 per cent only. However, there is hope as last year saw 15 per cent
growth in the number of mobile users, with a majority of them being 25 years or below
that
 Aspirational lifestyle growth in rural India
 multiple sources of income for those residing in rural areas, - non-agricultural sources of
income
 A recent report by EY India revealed that there was a contribution of $359 billion
by the rural population. This amounts to about 57% of the entirety of the retail
market.
 Rising rural population- o cross 900 million by 2020 constituting a 65% of the nation
 High consumption expenditure of the rural population
 Increasing number of nuclear families in rural India
 Households in lower income brackets moving to higher income brackets
 . Rising spend by households across categories
 inexpensive smartphones and some of the lowest wireless data rates in the world