I Industry Overview :

1.1 Introduction :
In recent years India has experienced a boom in internet and smartphone penetration.
The number of internet connections in 2021 increased significantly to 830 million, driven by
the ‘Digital India’ programme. Out of the total internet connections, 55% of connections
were in urban areas, of which 97% of connections were wireless. The smartphone base has
also increased significantly and is expected to reach 1 billion by 2026. This has helped
India’s digital sector and it is expected to reach US$ 1 trillion by 2030. This rapid rise in
internet users and smartphone penetration coupled with rising incomes has assisted the
growth of India’s e-commerce sector. India’s e-commerce sector has transformed the way
business is done in India and has opened up various segments of commerce ranging from
business-to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C) and
consumer-to-business (C2B). Major segments such as D2C and B2B have experienced
immense growth in recent years. India’s D2C market is expected to reach US$ 60 billion by
FY27. The overall e-commerce market is also expected to reach US$ 350 billion by 2030,
and will experience 21.5% growth in 2022 and reach US$ 74.8 billion.

1.2 Market Size and Overview :

The Indian online grocery market is estimated to reach US$ 26.93 billion in 2027
from US$ 3.95 billion in FY21, expanding at a CAGR of 33%. India's consumer digital
economy is expected to become a US$ 1 trillion market by 2030, growing from US$ 537.5
billion in 2020, driven by the strong adoption of online services such as e-commerce and
edtech in the country. According to Grant Thornton, e-commerce in India is expected to be
worth US$ 188 billion by 2025. With a turnover of $50 billion in 2020, India became the
eighth-largest market for e-commerce, trailing France and a position ahead of Canada.
Propelled by rising smartphone penetration, the launch of 4G network and increasing
consumer wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by
2026 from US$ 38.5 billion in 2017. After China and the US, India had the third-largest
online shopper base of 150 million in FY21 and is expected to be 350 million by FY26.
Indian consumers are increasingly adopting 5G smartphones even before the rollout of the
next-gen mobile broadband technology in the country. Smartphone shipments reached 169
million in 2021 with 5G shipments registered a growth of 555% year on year 2021. Indian
consumers are increasingly adopting 5G smartphones even before the rollout of the next-gen

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mobile broadband technology in the country. Smartphone shipments reached 150 million
units and 5G smartphone shipments crossed 4 million in 2020, driven by high consumer
demand post-lockdown. According to a report published by IAMAI and Kantar Research,
India’s internet users are expected to reach 900 million by 2025 from ~622 million internet
users in 2020, increasing at a CAGR of 45% until 2025. For the 2021 festive season, Indian
e-commerce platforms generated sales with a Gross Merchandise Value (GMV) of US$ 9.2
billion, a 23% increase from last year’s US$ 7.4 billion.

1.3 Government Initiatives :

Since 2014, the Government of India has announced various initiatives, namely
Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The timely and
effective implementation of such programs will likely support growth of E-commerce in the
country. Some of the major initiatives taken by the Government to promote E-commerce in
India are as follows:

 As of June 8 2022, the Government e-Marketplace (Gem) portal served 10.35 million
orders worth Rs. 258,359 crore (US$ 33.07 billion) to 60,632 buyers from 4.56
million registered sellers and service providers.
 In a bid to systematise the onboarding process of retailers on e-commerce platforms,
the Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly
planning to utilise the Open Network for Digital Commerce (ONDC) to set protocols
for cataloguing, vendor discovery and price discovery. The department aims to
provide equal opportunities to all marketplace players to make optimum use of the e-
commerce ecosystem in the larger interest of the country and its citizen.
 National Retail Policy: The government had identified five areas in its proposed
national retail policy—ease of doing business, rationalisation of the licence process,
digitisation of retail, focus on reforms and an open network for digital commerce—
stating that offline retail and e-commerce need to be administered in an integral
manner.
 The Consumer Protection (e-commerce) Rules 2020 notified by the Consumer Affairs
Ministry in July directed e-commerce companies to display the country of origin
alongside the product listings. In addition, the companies will also have to reveal
parameters that go behind determining product listings on their platforms.

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  Government e-Marketplace (Gem) signed a Memorandum of Understanding (MoU)
with Union Bank of India to facilitate a cashless, paperless and transparent payment
system for an array of services in October 2019.
 Under the Digital India movement, Government launched various initiatives like
Umang, Start-up India Portal, Bharat Interface for Money (BHIM) etc. to boost
digitisation.
 In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-
ups to register at public procurement portal, Gem, and offer goods and services to
government organisations and PSUs.
 In October 2020, amending the equalisation levy rules of 2016, the government
mandated foreign companies operating e-commerce platforms in India to have
permanent account numbers (PAN). It imposed a 2% tax in the FY21 budget on the
sale of goods or delivery of services through a non-resident ecommerce operator.
 In order to increase the participation of foreign players in E-commerce, Indian
Government hiked the limit of FDI in E-commerce marketplace model to up to 100%
(in B2B models).
 Heavy investment made by the Government in rolling out fiber network for 5G will
help boost E-commerce in India.

The Indian government envisions establishing a $99-billion industry by the end of 2024. The
same report states that by 2025, 220 million online buyers will be leveraging digital stores as
a medium to purchase. Industry experts and government officials believe ecommerce to be
the next big thing to play a pivotal role in boosting the country’s economy. With so much
potential, the government isn’t leaving any stone unturned to motivate and inspire aspiring e-
retailers. Let’s have a look at some of these programs and learn how they can help you grow
your ecommerce venture.

Government Schemes which helps the Online Retail Industry :

Startup India :

The Startup India initiative is designed for any small/medium business as a start-up.
Once registered, you get access to easier compliances, IPR fast-tracking, and tax benefits.
Besides these, the program gives access to a vast incubator network, women
entrepreneurship, and government procurement. Female entrepreneurs have done

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exceptionally well with such a dedicated plan. The government, under this program, pays a
nominal salary to women entrepreneurs. The average monthly allowance paid to date is Rs.
20,000/month. The amount varies due to different reasons and is paid for 1 year. The aim is
to motivate and help female entrepreneurs with some stability until they grow their
businesses. And you can leverage this government scheme and can easily get started with
your own eCommerce website. All you need to do is choose Builder fly. The platform is
designed to help aspiring online entrepreneurs start their own businesses and further you may
enroll under the Startup India initiative. Some of the successful examples of this program
include Udaan, Boat, etc. Each of these startups made a humble beginning and further got
benefited by enrolling themselves in the initiative.

Digital India :

The Digital India program is designed to help medium and small businesses
strengthen their online presence. It includes initiatives like data.gov.in, Jeevan Pramaan,
BHIM, Mobile Seva, etc. Digilocker is also one fine example of this! You too can become a
part of and learn more about this campaign by going to their official website. By taking the
first step toward Digital India with Builderfly, you can become part of the Digital India
Campaign. Start your online store and digitize your business. It has numerous tools that can
help you not just create a digital presence for your business, but also boost sales and enhance
profits. And the best part is, you can do it without any technical knowledge. Since the
introduction of this program, numerous small and medium businesses have relished the
numerous benefits listed under it. Builderfly can help you take the much-needed first step at
zero investment and lure the growth benefits of the Digital India Campaign.

Vocal for Local :

The campaign is designed to motivate people to buy from local sellers. This has
eventually helped especially small business owners. Instead of selling through their physical
store alone and staying confined to the locality, these businesses can now sell to the entire
city and across the country. The campaign aligned with Digital India has helped numerous
businesses to increase their sales by creating an online presence. While on one side the
regular shop owners created their online store to increase sales, various independent sellers
and enthusiasts too jumped in the pool to make some money. Numerous platforms noticed a
commendable hike in the number of sellers. Builderfly was one among them. Especially in

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the last year, it experienced an impeccable rise in the number of sellers. The list includes
startups, independent sellers, enthusiasts, and professionals. Each of them has created its
brand under the Builderfly tool. It allows you to create your online store with no technical
knowledge and boost your sales through digital platforms.

1.4 Future of the Industry :

India’s e-retail market is estimated to increase to $150 billion–$170 billion by 2027.

This implies that 25 per cent–30 per cent annual growth and a doubling of market penetration
to 9 per cent–10 per cent over the next five years, according to a report by consulting firm
Bain & Company made in collaboration with Flipkart. The report titled ‘How India Shops
Online 2022’, said that India is well poised to surpass the US to have the second-largest
shopper base (only behind China) in the next one to two years. Shopper addition will
continue to be at the heart of future e-retail growth. India’s online shopper base is estimated
to increase to 400–450 million by 2027, according to the report. Most of these shoppers are
already in the digital funnel—450–500 million used social media while only 180–190 million
shopped online in 2021. “The Covid-19 pandemic has been a crucible moment for online
retail in India. The pandemic has induced hypergrowth and a 12-month acceleration in market
penetration,” said the report. “India currently has the third-largest shopper base globally, with
180–190 million online shoppers in 2021.” India’s e-retail market rose to approximately $40
billion in 2021 and is slated to reach $50 billion in 2022. India has robust fundamentals
supporting a continued boom in e-retail. India’s substantial online consumer base and retail
market (third largest globally) already make it an incredibly attractive e-retail market.
Massive headroom in terms of smartphone penetration (36 per cent in India vs. 63 per cent in
China and 76 per cent in the US) and affluence ($2,000 per capita in India vs. $12,000 in
China and $69,000 in the US), in addition to already low data prices, provide the perfect
ingredients for sustained growth/ “Rising affluence will fuel consumption and increase
spending per shopper,” said the report. “Although the current inflationary environment might
prove to be a short-term headwind for the market, these structural drivers will ensure healthy
growth in the medium to long term.” The category mix of online purchases will also evolve.
Historically, categories such as mobile phones, electronics, and appliances have accounted
for the lion’s share of the e-retail market. This will change over the next five years. Fashion,
general merchandise categories (including personal care), and grocery have the highest
penetration headroom (vs. mature markets) and will therefore fuel growth. These categories
will cumulatively account for as much as two-thirds of the e-retail market by 2027. In 2021

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alone, between 40 and 50 million new shoppers were added to the India e-retail market,
which is approximately 30 per cent–35 per cent growth over the online shopper base in 2020.
These new shoppers largely belong to tier-3 or smaller cities and include Gen Z—which will
become a critical cohort in the future. They primarily purchase fashion as the first category
online, and they typically start buying at entry price points. The existing shopper base is
simultaneously maturing. Overall engagement on retail platforms is increasing. The
percentage of daily active users to monthly active users has risen to more than 25 per cent in
2021, from 18 per cent to 20 per cent in 2019. Consumers now spend 20 per cent more time
per month on a retail platform, vs. last year. Sustained e-retail growth has been accompanied
by tremendous growth in the supplier and logistics ecosystem. India’s online seller base has
grown 35 per cent annually over the past year, with approximately 40 per cent of new sellers
coming from tier-2 or smaller cities. In addition, growth in e-retail shipments has enabled the
development of a deep and efficient logistics network. Accompanied by technological
advances, e-retail has seen a steady year-over-year decline in cost per shipment by 7 per
cent–9 per cent per annum from 2018 to 2021. Reach has widened significantly—e-retail is
accessible in 99 per cent of India’s pin codes.

Future Technologies

Rapid advancements in digital and automation technology have added new

breakthroughs in the retail industry. Retail technology is now using innovations and digital
solutions in retail and e-commerce sectors to enhance the shopper experience. So, we can say
that integrating retail technologies in a business directly influences the customer experience.
Now, both brick-and-mortar and eCommerce businesses invest in various aspects of this
technology to meet customers’ expected shopping experience. In India, the retail sector has
seen several transformations and grown dramatically over the last decade. Post pandemic, we
are witnessing a major reform in the retail sector. The quick adoption of technology by retail
businesses is helping the sector’s growth in India. Hence, we can say that India has the
brightest future in retail technology.

Sensors and cameras:

Retailers are now using sensors and cameras to provide consumers with a better
shopping experience. For Example, Amazon has created an Amazon Go convenience store

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network, in which feedback from cameras and sensors is combined with technology such as
computer vision and deep learning. Users may simply pick an item and exit the store. There is
no need to pay at the counter, no need for facial recognition, and no need for a product scan.

Omnichannel Experience:

In India, customers are constantly considering when, where, and how to shop, whether
online, offline or a combination of the two. They want a smooth omnichannel experience. As
a result, this combination of offline and online retail markets is going to increase. To improve
the customer value proposition and experience, retailers will need to adopt such technology
and strategy.

Effective Supply Chain and delivery solution:

Customers expect to be able to order everything with a single click of a button and
receive deliveries in less than half an hour. Furthermore, customers desire a one-stop shop for
all product and service requirements. People now don’t want to wait hours or days for their
things to arrive. So, there is an urgent requirement for effective supply chains and delivery
solutions. The future of retail in India will include capabilities such as speedier deliveries,
AI/ML-based demand forecasting, IoT for real-time monitoring, and other similar
capabilities.

Robots & Automation:

Retailers are going to use robots and automation technology in a more frequent way.
When a consumer walks into a store, robots may recognize them and greet them. They can
also use speech recognition software or touch screens to communicate with them. They make
recommendations or even direct the consumer to the relevant aisle in the shop where they can
find the product based on the interaction with the customer. Robots can also take a picture of
a customer and save purchase information and other facts so that the robot knows them the
next time they come in to shop and provides loyalty rewards or other targeted promotional
offers.

1.5 Global Scenario :

Global ecommerce is the selling of products or services across geopolitical borders

from a company’s country of origin, normally defined as its founding or incorporating
location. Products or services are sold into non-native markets via online sales and marketing.

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Cumulative data anticipates a 16.8% increase in worldwide ecommerce sales over the most
recently tracked period. Numbers of that scale are hard to wrap our heads around. They’re at
once invigorating and daunting. If your company is staring down that $4.9 trillion barrel and
wondering, “Where do we begin?” rest assured, you’re not alone.

The advantages of international ecommerce are:

 Easier expansion into foreign markets

 Easier-to-find product-market fit
 Shorter B2B sales cycles
 Quicker building of international presence
 Lower barriers to entry

1. Supply chain resilience

The impact the COVID-19 pandemic made on supply chains was, according to Morris
Cohen, Wharton Professor of Operations, Information, and Decisions, “a major disruption,
along the lines of having an earthquake or tsunami.” For decades, the core features of supply
chain management were:

 Globalization
 Low-cost supply
 Minimal inventory

When the coronavirus broke supply chains around the world, it drove companies to focus
on building supply chain resilience, or to think of ways to keep supply chains from halting
and restoring them quickly when they do. Experts predict that systems won’t “normalize”
until 2023 at the earliest. Even once they do, the pandemic has exposed global logistic
network vulnerabilities to future political instability, natural disasters, and regulatory
changes. The effects of COVID-19 were not an exception to the rule: Supply chain
disruptions are happening with increasing frequency and severity. McKinsey reports that
significant disruptions to manufacturing production now occur every 3.7 years, on average.
So what are retailers doing to build supply chain resilience and combat disruptions? Retailers
like American Eagle are buying supply chain companies. The clothing retailer recently
purchased Quiet Logistics, a company that runs eight fulfillment centers across the US, for

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$350 million. It was the second largest acquisition for American Eagle after buying AirTerra,
a shipping solutions provider, in August. These acquisitions suggest a shift coming across the
retail sector. Brands that were comfortable outsourcing logistics to third parties are now
bringing those operations in house to mitigate supply chain disruptions.

2. Mobile shopping and social commerce

The COVID-19 pandemic made a significant impact on ecommerce trends around the
world. With brick-and-mortar stores shuttering overnight, shoppers flocked to the internet to
buy their things. Experts say the pandemic accelerated the shift to online shopping by as
much as five years. M-commerce, or mobile commerce, involves shopping online through a
mobile device, like a smartphone or tablet. M-commerce will continue to break out over the
next few years. Technological advances like branded shopping apps, 5G wireless, and social
shopping make it easier for people to shop on their phones. In 2021, mobile shopping from
Shopify merchants captured 71% of online sales via mobile over BFCM. Online retail
continues to expand due to the increasing use of smartphones and tablets globally. In 2022,
smartphone retail ecommerce sales are expected to pass $432 billion, up from $148 billion in
2018. Mobile shopping apps are becoming more popular amongst retailers and shoppers, with
one in five US shoppers reporting using them multiple times per day. Another facet of mobile
shopping, social commerce sales are set to triple by 2025. While only 30% of US consumers
report purchasing goods through social platforms, nearly half of China’s consumers already
shop on social, generating over $351 billion in sales over 2021. The competition is on the
rise, with 49% of brands investing in social commerce content in 2022. Expect more branded
shopping apps, more SMS and Facebook Messenger marketing campaigns, and more social
commerce content on TikTok and Instagram.

3. Cross-border buy now, pay later adoption

The buy now, pay later (BNPL) trend shows no signs of slowing down. Well-established
brands in Europe have begun their move into the US and various global markets. JP Morgan
reports that “mobile, cross-border and buy now, pay later are on the rise as consumers show a
willingness to adopt new shopping and payment methods. ”Klarna, a Swedish-based BNPL
company, reported a sharp increase in transactions using its platform in the January to March

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2021 quarter, fueled by growth in the US. Klarna’s gross merchandise volume (GMV) nearly
doubled to $18.9 billion in the first quarter, from $9.9 billion one year prior. The number of
US shoppers using Klarna doubled to 17 million in April 2021, experiencing a 125% increase
in downloads. In Australia, 30% of the adult population owns a BNPL account, with strong
uptake from younger shoppers. Neighboring New Zealand also reported significant increases
in BNPL usage. About 75% of people deferring payments are under 45, but there has also
been a bump in shoppers over 60 using BNPL services. BNPL is also expected to improve
Japan’s cross-border shopping experience. Domestic brand Paidy partnered with PayPal in
2021 to allow Japanese shoppers to access Paidy through their mobile wallets. The
partnership allows Japanese consumers to use Paidy at any international checkout that accepts
PayPal.

Other notable mentions include:

 BNLP is most popular in Germany, taking 30% of all payments. That number is
expected to reach 33% by 2024.
 BNLP is expected to grow by a compound annual growth rate of 36% in Vietnam
from 2021 to 2028.
 BNLP brand Twisto has 1.6 million users across the Czech Republic and Poland, and
is expanding into Eastern Europe in 2022.
 Nelo, a fintech company run by former Uber executives, raised $3 million to expand
BNLP services into LATAM.

Buy now, pay later will become a common sight at checkouts around the world. As
partnerships begin to form between BNLP brands, digital wallets, and banks, BNLP will take
the lion’s share of payments globally.

4. The metaverse and interactive shopping

Brands are betting on virtual shopping and experimenting with augmented and virtual reality
retail on different ecommerce platforms. The metaverse, a 3D virtual world, eliminates
borders for consumers. People around the world can experience products in a metaverse no
matter where they live. Nike and Gucci have launched fashion shows inside the multiplayer
game Roblox. Adidas has launched an NFT collection with the famous Bored Ape Yacht
Club and launched interactive experiences on South Korean social avatar app Zepeto.
Balenciaga started selling apparel in Fortnite. Beauty brands like Charlotte Tilbury have built

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virtual stores in their online store. “One of the biggest trends is really just consumers being
willing to spend money for virtual goods,” says Corey Svensson, who runs Crypto and
Blockchain at Shopify. Corey feels that the pandemic stimulated consumer interest in the
metaverse, explaining, “It’s part of the greater curve of adoption that’s just going to naturally
happen.” Jason Wong, founder of Doe Lashes, agrees. Brands in the metaverse can reward
shoppers through giving away non-fungible tokens (NFTs). “I want to give you a Doe token,
because you’re our customer, and the Doe token gives you access to X, Y, and Z,” Jason
says. He describes a recent NFT drop from clothing brand The Hundreds, where 25,000 NFT
tokens were given to customers. Holders get access to merch drops and a number of other
benefits. “I think The Hundreds is the first mover here, and a lot of brands will actually
follow,” Jason says. “The challenge is a lot of brands are so focused on running their physical
and their DTC store that they probably don’t have the bandwidth to shift into investing into
these things.”

5. APAC and China ecommerce growth

By 2023, retail ecommerce sales in Asia-Pacific are projected to be greater than the rest of
the world combined. This is due to: (1) rapid urbanization and technological advancements;
(2) more than 85% of new middle-class growth residing in APAC; and (3) a host of
government and private-led initiatives in China. China’s ecommerce sales totalled an
estimated $2.1 trillion in 2021, more than double the US market. On the B2B front,
manufacturing in APAC and China has undergone a renaissance. As a result, the B2B
disparity is even clearer. Entering China—and to a lesser degree APAC as a whole—presents
a handful of thorny challenges: China causes sites on foreign servers to load painfully slow,
dragging down onsite conversion rates and search engine rankings. Advertising and social
content via Facebook, Instagram, YouTube, and Google are unavailable in China, even
though Chinese companies are able to enter western markets. Chinese consumers use
ecommerce. To capitalize on this global ecommerce trend, Shopify partnered with Chinese
ecommerce giant JD.com. Now, US businesses with Shopify online stores can list their
products on the Chinese marketplace, used by over 550 million shoppers. JD.com will handle
the fulfilment process, transporting goods from its US warehouses to China via cargo flights
to complete deliveries. The partnership reduces the process of selling in China for foreign
brands from 12 months to three to four weeks.

6. Language localization

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Over 67% of global consumers surveyed by Flow.io said they’d made a cross-border
purchase in their lives. Almost one in five respondents stated that lack of language translation
was a big barrier to purchasing on a foreign site. Amongst English-speaking shoppers, over
two-thirds of respondents said they would not purchase from a site not translated into
English. In Japanese and South Korean markets, where cross border commerce was lowest,
that number rose to 41% and 36% respectively. Amongst English-speaking shoppers, over
two-thirds of respondents said they would not purchase if the site wasn’t in English. Going
native with your site’s language—beyond Google Translate—can make or break global sales.
It creates a good customer experience from first impression to checkout. In fact, in terms of
website content, the majority of shoppers in Flow. Io’s report agreed that the following pages
needed to be in their own language:

 Product descriptions (67%)

 Product reviews (63%)
 Checkout process (63%)

Based on a survey of 8,709 global consumers in 29 countries, CSA Research found that 65%
of consumers prefer content in their language, even if it’s poor quality. Moreover, 40% will
not buy from websites in other languages. This last finding bears closer examination.
Localization can often feel overwhelming, like an all-or-nothing endeavour (either everything
has to be country-specific or why bother?). It’s not. The respondents’ focus on navigation and
“some” content means that a site need not invest in holistic translation from the jump. Getting
heavily scrutinized areas of a site right is critical: headlines, product titles, etc. Only after
you’ve gained traction does full-scale translation using a native copywriter and local idioms
make sense.

7. The wholesale industry is going online

Last year we saw the evolution of B2B ecommerce take place, attracting the attention of
buyers, sellers, and investors from all over the world. Statista’s recent B2B ecommerce report
shows the rise of vertical and specialized marketplaces for B2B buyers and sellers. Modern
Retail reports that consumer-oriented retailers and brands have increasingly been investing in
third-party marketplaces. The trend has made its way into wholesale ecommerce, too.
Wholesalers like UNFI are launching marketplaces on their sites. In the US, the wholesale
marketplace Abound, with a mission to connect independent and small retailers with
specialty wholesalers, raised $23 million. In France, wholesale marketplace Ankorstore,

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which operates in the same category as Abound, raised €82 million in May 2021. In the past,
retailers and brands relied on trade shows to make connections with wholesalers and buy
products. Jeff Kolovson, COO of wholesale marketplace Faire, told Modern Retail that
“while consumer buying behaviour began to shift online many years ago, the wholesale
industry remained offline.” Wholesale marketplaces like Handshake can connect buyers with
wholesalers in minutes and receive products fast after placing an order.

II COMPANY OVERVIEW

2.1 Introduction :

YALIMART "Delivering Your Demand At Your Doorstep", An E – Commerce Start-

up company which integrates buyers and sellers at one platform with future technology. It
was founded in the year 2020 by Hariharan Ramasamy. It is an Online retail trading platform
which operates all over tamilnadu they delivering all types of Mobiles, Electronics, Books,
Fashion, Home & Kitchen, Sports fitness & outdoors. They also started a new startup called
us YALIMART GROCERS where they deliver all types of FMCG goods, Vegetables &
Fruits.

2.2 Objectives, Vision, Mission Statement :

Objectives :

 Customer obsession rather than competitor focus,

 Passion for invention,
 Commitment to operational excellence,
 Long-term thinking.

Vision :

Our vision is to be earth's most customer-centric company; to build a place where

people can come to find and discover anything they might want to buy online.

Mission :

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 Customer obsession rather than competitor focus, passion for invention, commitment
to operational excellence, and long-term thinking.

2.3 Organisation Structure

 Hariharan Rengasamy Founder & CEO

 Saravana Kumar Deputy General Manager
 Sweetlin Sam Chief Marketing Officer
 Samuel Raja Chief Strategy Officer
 Siddharth Chief Analytic Officer
 Mahalakshmi Chief Technology Officer
 Razarutheen Chief Partnership Officer
 Dharun Chief Operating Officer
 Sharufh khan Chief R&D Officer
 Murugan Chief Administrative Officer

2.4 Products and Services offered :

Consumer Electric:

 Air Conditioners
 Audios & Theaters
 Car Electronics
 Office Electronics
 TV Televisions
 Washing Machines

Home, Garden & Kitchen:

 Cookware
 Decoration
 Furniture
 Garden Tools
 Garden Equipments
 Powers And Hand Tools
 Utensil & Gadget

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Computer & Technologies:

 Desktop PC
 Laptop
 Tablet
 Game Controller
 Audio & Video

III Functional Areas of the Organisation

3.1 Human Resources Department

The HR Manager of the YALIMART is Ms. S. Mahalakshmi. She is the HR Head of

the company, her job is to do experts in everything from employee relations to performance
management, talent management to succession planning and employee engagement to
legislative compliance.

3.2 Finance Department

The Finance head of the company is the Founder & CEO Hariharan. He is handling
the finance department of the company, the finance department plans and manages company
money, making sure a business can access cash in sustainable ways. This department can be
as simple as a few people managing invoices or as complex as a team of hundreds with
multiple levels of management.

3.3 Technical Department

The Technical department head of the company is Ms. S. Mahalakshmi. The work of
the department is Identifying hardware and software solutions, Troubleshooting technical
issues, Diagnosing and repairing faults, Resolving network issues, Installing and configuring
hardware and software, Speaking to customers to quickly get to the root of their problem.

3.4 Strategy Department

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 The Strategy Department head of the company is Mr. Samuel Raja. His job is
providing managers with the tools and insights needed for the development and practice of
strategy in organizations. In a broad sense, strategic management is the key distinctive task of
a general manager.

3.5 Marketing Department

The Marketing Department head of the company is Mr. Sweetlin Sam. Marketing
Department is where we done internship, the work of the department is to make retailers to
sell in digital through YALI MART.

3.6 Analytics Department

The Analytics Department head of the company is Mr. Siddarth. The work of the
Department is Building big data collection and analytics capabilities to uncover customer,
product, and operational insights. Analyzing data sources and proposing solutions to strategic
planning problems on a one-time or periodic basis. Providing data-driven decision support.

3.7 R&D Department

The R&D Department head of the company is Mr. Sharufh khan. The work of the
department is to keep a business competitive by providing insights into the market and
developing new services / products or improving existing ones accordingly.

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4 Analysis and Interpretation
4.1 PESTLE Analysis
The Ecommerce industry has experienced solid growth in the recent years and apart from
some fluctuations in the global economy, the situation has remained favorable for its growth.
China and US are the largest of the e-markets. However, growth rate is expected to be even
higher than US in the Asia Pacific region. The US e-retail market is among the largest ones in
the world. Apart from Amazon, Ebay and Alibaba, there are a number of important players
in the market like Walmart, Coles and Best Buy. The technological factors have also
supported the growth of the Ecommerce industry. Growth in the use of mobile devices has
also pushed the ecommerce sales higher. A larger number of people are now shopping using
their mobile phones. There are several factors apart from economic, technological and
political that affect the global ecommerce industry. This is a PESTEL analysis of the
ecommerce industry that analyzes how these various forces can affect the ecommerce
industry and how deep their impact can be on this sector.
Political factors:
While the threats may not be the same before the e-retailers as the physical retailers, still
there are several political hurdles before them. There are several risk factors affecting the e-
businesses. For example for the global leaders like Amazon, growth in Asia pacific region
can be made difficult by the Red tape. Several news reports highlight how Red Tape in India
can become major difficulty in the way of new businesses trying to extend their presence
there. The political and regulatory challenges before the e-businesses have kept rising. The
growth of Ecommerce in EU has also been challenged by political factors. EU has kept

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targeting technology giants from the US. Google and Amazon have already been targeted by
EU. Such issues can be a threat to the growth of ecommerce in Europe and it is why several
sources predict that the growth rate of ecommerce in Europe is going to be low. Political
issues are not limited to just those discussed above but there are many more. Political stability
in most regions of the world leads to economic stability. Political chaos can result in
disruption of online and physical businesses. Overall, political issues can have a significant
impact on ecommerce and its growth. Any industry sector needs a favorable political
environment for growth in any market region.

Economic factors:
Economic factors are very significant in terms of business. Whether it is an online business or
physical, economic factors can have a significant effect on it. It is because economic factors
are directly related to business and their effect is also direct on business revenue and profits.
During the global financial crisis, spending had decreased. People had adopted cost cutting
measures as the level of economic activity and employment had gone down. During such
periods when economic activity has gone down, the profits and revenue of businesses can go
down. E-businesses too cannot remain unaffected. Economic fluctuations since the recession
have also kept affecting businesses from time to time since the recession. In several
economies like Russia, Brazil and India, these economic fluctuations affected both global and
local businesses. Now that the recession has passed and economic activity has returned on
track, the ecommerce industry has flourished in the recent years. Higher economic activity
means faster growth and higher revenue for the Ecommerce industry whereas lower
economic activity means just its opposite. During the pandemic too, businesses across several
sectors were affected by the temporary recession like situation. However, this time while the
pandemic had a negative impact on businesses on one hand, on the other, it also drove sales
through online channels higher. Ecommerce received a boost since more and more people
were shopping online as physical retail stores were closed. However, in several areas
consumer spending fell since unemployment was high and people were spending on essential
items mainly. In this way, economic factors can have a direct and deep impact in the
ecommerce industry.
Social factors:

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Socio cultural factors too have a deep impact in ecommerce industry. Most importantly e-
retail brands find it the easiest to flourish locally. Growth in foreign markets can be full of
challenges. Changing trends can also have an impact on businesses. The growing use of
mobile technology has affected ecommerce. In most societies the mobile technology has been
very popular and a larger number of people worldwide are now using mobile gadgets for
shopping and other purposes. cultural factors affect businesses in other ways too. Cultural
factors have an impact on how these ecommerce businesses market themselves. In several
societies of the world ecommerce is still seen as a sign of Westernization due to which it has
seen low growth in these areas. However, changing demographic composition of the global
population has proved favorable for ecommerce brands. Around the world, the millennial and
Gen Z customers like to shop online. These two generations are the main target of
ecommerce brands and they are also among the most tech savvy buyers.
Technological:
Technological factors are very important in the context of the ecommerce industry. It is
because the industry relies heavily on technology. Everything is based on technology in e-
retail from sales to customer service. All the ecommerce brands are in a race to be
technologically ahead of their competitors. From Amazon to E-bay and Flipkart, every brand
is investing a lot in technology to find faster growth. Not just the ecommerce brands, but the
physical retailers like Walmart, Costco and Target have also moved towards an omnichannel
shopping experience. They are serving their customers through both physical and online
channels. Technology decides several things in the ecommerce world from popularity to
profits. The reason that Amazon is ahead of the others is because it is technologically ahead
of the others. It has managed its customer experience so well that its popularity is very high.
Amazon is the largest R&D spender in the entire industry and it is also a key reason it is at
the leadership position in this sector. Technology is essential for attracting and retaining
customers. In this way, technology is a major influence on digital businesses and in case of
ecommerce, technological factors acquire a very special importance.
Environmental factors:
Environmental factors too have a special importance in the context of Ecommerce industry.
While the direct environmental impact of this industry is very low, it still focuses heavily on
sustainability. Brands like Amazon have invested heavily in environment and sustainability.
Even in Ecommerce there are several areas where investing in sustainability can be highly
profitable. From sustainable packaging to waste reduction and renewable energy, there are

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several areas where the e-retailers can invest in sustainability. Amazon has invested in
renewable energy to gain freedom from the use of non-renewable energy resources.
Legal:
Legal compliance is just as important for the digital businesses as physical businesses
globally. Any tussle with the law can be a costly affair and even the e-retail brands can
become a target unless they take care of compliance. It is why the big E-retail brands have
separate teams to take care of the legal issues. Noncompliance can result in financial losses as
well as loss of image and reputation. From labor laws to sustainability laws, there are several
areas where the e-retail brands have to be careful regarding compliance. Moreover, these
laws differ from nation to nation and market to market and compliance in every area is
important. So, in case of the companies operating internationally, law can lead to major
pressures and an increase their operational costs. The e-retail brands also have to be careful
about the applicable laws and compliance.
4.2 SWOT Analysis
Strengths

Here are two big Strengths of the eCommerce market:

Accessibility

Perhaps the biggest Strength of eCommerce businesses is their extensive accessibility. In the
past, shopping meant physically traveling to a certain place, within certain times. With
eCommerce, buyers can now browse, learn about, and purchase products from the comfort of
their homes, at whatever time of the day (or night). Although teleshopping offers similar
benefits, the advent of the internet has seen a huge number of consumers move away from
TV, radio, and press towards computers.

Lower Prices

Another considerable Strength of online shopping is that products tend to have lower prices,
when compared to traditional retail channels. One reason for this is that eCommerce typically
involves sellers interacting directly with consumers, cutting out middlemen such as
distributors. Another reason is that the eCommerce stores typically have significantly lower
overheads than brick-and-mortar stores, which have to account for rent costs, employee
salaries, and more.

Weaknesses

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Here’s one big Weakness of the eCommerce industry:

Industry Specific

Certain products lend themselves to eCommerce better than others. For example, books,
electronics, and kitchen gadgets are all easy to sell through online stores, since consumers
roughly know what to expect. However, some items are much less universal; the best
example of this is clothing. It’s difficult for consumers to purchase the clothing they want
online, since they don’t know whether it will fit, how it will feel, and how it will look.
Unfortunately, it will be very difficult for eCommerce stores to expand into these industries.

Opportunities

Here are two Opportunities for the eCommerce market:

Growing Market

One of the biggest opportunities for the online shopping industry is the growing market.
While most consumers in developed countries already have electronic devices, there are
plenty of consumers in developing countries who don’t — and, as a result, don’t buy goods
online. As the prices of electronics continue to decline, it’s likely that we’ll see an increase in
the number of potential internet shoppers. This will subsequently result in a greater volume of
eCommerce sales.

Influencers

There are a number of internet users who use their large social followings to promote various
goods and services. These people, known as influencers, present a powerful marketing
opportunity for savvy eCommerce sellers. With social media becoming such a huge part of
our everyday lives, influencers are set to play an increasingly important role in how products
are marketed — and eCommerce stores are best positioned to take advantage of this.

Threats

Here are four Threats for the eCommerce industry:

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Competition

Although the eCommerce industry’s low barrier to entry is, on the one hand, a Strength, it
also poses a significant threat for existing sellers. This is because of how easy it is for just
about anyone — anywhere — to launch a new eCommerce store and compete with other
online shopping businesses. It’s important to know that this element of competition doesn’t
affect the success of the eCommerce industry as a whole, but affects individual businesses.

Fraud

The world of eCommerce is fuelled by digital payments, whether that involves credit or debit
cards, bank transfers, or even cryptocurrencies. This makes it a huge target for fraudsters,
who now have an easy way to cash out on their illicit activities. Fraudsters can buy goods
online using others’ payment details — while staying completely anonymous — and send
those items to neighbourhood doorsteps, where they’ll be swiped while the homeowner is out
at work. Unfortunately, it’s incredibly difficult to combat internet fraud, which is why it’s
such a big threat for the industry.

Data Concerns

Aside from blatant fraud, there’s a lot of potential for things to go wrong with online
shopping — especially when it comes to users data. Shopping online requires you to hand
over a lot of sensitive data, including your payment details, address, and other assorted
information. If this information gets into the wrong hands, it can have devastating
consequences. Also, since the introduction of new data-related regulations like the European
Union’s GDPR, there are new complexities in the data aspects of srunning an online business.

Monopolies

Since eCommerce stores can cater to entire countries — or even the entire world — it leaves
a lot of potential for monopolies to form. Perhaps the best example of this is if you review
how Amazon has affected bookstores. In the past, a variety of local bookstores (including
mom and pop stores, smaller chains, and larger chains) would have serviced a given area.
With the advent of huge eCommerce alternatives like Amazon, these stores are dying off and
Amazon is becoming the one-stop-shop for books. This trend may spread into other markets,
and may at some point warrant government regulation.

4.3 BCG Matrix

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The BCG Matrix looks at two variables, if you will, aimed at helping decision makers
understand how a manufacturer’s or a retailer’s particular position with a product or product
category fits into the market. First, the BCG considers market share, which is the percentage
of the overall market that the company, or in the case of ecommerce the retailer, controls.
Small business owners or marketers at a relatively small company may feel like they don’t
really know what their store’s market share is or even how to find it, but this percentage can
be discovered with a little bit of research.

Try looking, as an example, at the filings for publicly traded retailers or manufacturers that
sell or make the product in question. These companies frequently provide market share data
to investors and analysts, and small businesses can use a larger competitor’s market share to
calculate its own.

The calculation might go something like this. If Amazon says that it has a 50 percent market
share of online envelope sales, and it reports $10 million in online envelope sales, one can
estimate that the total online envelope market is about $20 million. If your business sells $1
million worth of envelopes online in a year, you have about a 5-percent market share.

You might also look for reports from government agencies or publications too. Various
government agencies post market data as do industry publications. A Google or Bing search
can find data that nearly any merchant can use to discover market share. Finally, there are
services that will help identify market size. As an example, a merchant could use Tera peak’s
tools to learn the size of the market for a particular product on Ebay.

The key here is that the BCG Matrix assumes companies with a relatively high market share
are also relatively successful. The second dimension or variable in the BCG Matrix is market
growth. This is the percentage that the market is expanding over a set time period. When
markets — or the demand for a product or product category — are growing quickly it is
usually an indication of opportunity.

Low growth markets or product lines tend to have more or greater competition. The pie, if
you will, is a fixed size and everyone has to fight to get a piece. But high growth markets
tend to have relatively low competition and relatively more opportunity. The pie itself is
getting larger and just being in the market implies you’ll get a larger piece eventually.

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Ecommerce owners and marketers can look to published reports and industry analysis to
identify market growth rates for use in the BCG Matrix. There are also third-party tools that
track sales rates and average selling prices for markets. This can again be used to gauge
market growth.

Plotting Products or Product Categories

For each product line that an online sellers stocks, that seller should try to identify, at least
annually, market share and market growth and plot each product line on the BCG Matrix. As
an example, if a merchant has the follow products these items could be plotted on the BCG
matrix in relative positions.

Product A. 35-percent share, 10-percent growth

Product B. 5-percent share, 15-percent growth

Product C. 30-percent share, 65-percent growth

Product D. 2-percent share, 95-percent growth

The process of plotting the products will place them in a quadrant. Product A would be in the
lower left quadrant with low growth but relatively high market share. Product B would be in
the lower right quadrant with low growth and low share. Product C would be in the upper left
quadrant with relatively high market share and growth. Finally, Product D would be in the
upper right quadrant with low market share, but high growth.

Each quadrant on the BCG Matrix represents a certain kind of business situation and a
specific strategy that should impact how a business invests marketing funds.

Each quadrant on the BCG Matrix represents a certain kind of business situation and a
specific strategy that should impact how a business invests marketing funds.

In the BCG Matrix the lower right quadrant is called the “Dogs.” It describes a product or
product category for which a company has low market share and is constrained with low
growth.

The Dogs

Products in this quadrant should, generally, either receive no support or be divested — i.e.,
closed out. The reasoning is that competing here will take a significant investment in time
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and money since the company has low market share and must take sales away from
competitors who may be better positioned in the market. Think about the folks who sell mass-
market products on Amazon or Ebay, wherein the only real way to compete is to keep
slashing prices, lowering margin, and making less money for the same amount of effort.

The Cash Cows

Products in the lower left quadrant are called “Cash Cows.” In these instances the company
has relatively good share of the market, but is faced with low growth. These are products that
are money makes, but they will not necessarily take the seller further, growing revenue or
profits over time. Here the strategy is to harvest from these products to invest elsewhere.
Take advantage of success, but don’t rest.

The Question Marks

With high growth and low market share, products in the upper right are referred to as
“Question Marks.” Businesses simply don’t know what they represent in terms of possible
market share or growing profits. In spite of the unknowns, you want to build promotions for
these items, investing in advertising and promotion. These products have the greatest
potential for the business since there is an opportunity to capture share and to grow with the
market. Just know that not every “Question Mark” product will be successful.

The Stars

A company’s “Star” products reside in the upper left quadrant with high market share and
high growth. Because of the company’s relatively strong market share the company has a
good competitive position. The high growth also means that there is the opportunity to
continue to increase revenue and profits. For “Star” products, hold on to what you have or in
some case try to continue to grow, but this is really an area of moderate marketing and
advertising investment.

Marketing Investments

When you use the BCG Matrix to make marketing investment decisions, the goal should be
to create star products and hold on to them. Thus, you are going to allocate some marketing
and advertising to holding on to stars and the rest to star creation. Money from dogs and cash

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cows should be invested in question marks with the aim of transforming some of those
question marks into stars. In the case of dogs, this may mean not investing at all. For cash
cows, you will either hold or harvest.

V Conclusion

5.1 Findings

E-commerce is consistently taking up a larger proportion of consumer time and spending.

There are several driving factors for consumers to shop online with price, convenience in
shopping and wide range of available products being the primary.

The major findings of the study are as follows:

a. Turnover and profit margin of the retailers has considerably decreased in the past few
years.

b. Retail stores are now-a-days more engaged in services related to customer satisfaction.

c. Although the retailers are not able to keep a wide variety in their stock, they attempt to
keep the best of them so as to affect more sales.

d. Customers are seen to make window shopping at an alarming higher rate to have a physical
look at the product and buy that product online at a reduced rate.

e. Retail stores are now starting up with home delivery services of their various products at
the door step of their customers.

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f. The consumers become more comfortable with the experience of purchasing online with
the convenience and product range become relatively more important as a deciding factor for
shopping online.

5.2 Suggestions

Retailers have to change their attitude towards the market. Today’s is a consumer market and
as a result the priority is the consumer satisfaction. The firm has to be in the good books of
the consumer. Better quality products, fair price and friendly after-sale services are the basic
areas in which the business has to concentrate to a remarkable extent. Additional services
should be provided to the consumers to woe them and build upon a loyalty which in turn
would ensure a stable sales in the years to come.

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5.3 Conclusions

The face of retail has changed. The advent of technology in recent period being the primary
reason for it. Today, retailing means going into shopping centers, going online and going
mobile. In all these, small retailers miss out somewhere. But the nearby store is always the
most important concern for all reason and seasons. It needs to revive not just survive. The
retail stores needs to simply uplift its pattern of business and face the Competitive world with
a more positive outlook. E-stores and retail stores both have to survive, none at the cost of the
other. It’s not just about the livelihood it gives to the thousands of people but also the
convenience and the steadfastness of a fixed retail store.

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5. GEO – TAGGED PHOTOS

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1.1 First day at YALIMART office with Mr. Hariharan Founder & CEO,
Yalimart

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1.2 At a Dealer’s Shop (Muni Prakash Pandiyan, Varun, Sivaganesh
Dealer)

1.3 – 1.5 While Receiving Certificates

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