PRESENTATION REPORT

“IMPACT
“IMPACTOF
OFCUSTOMERS
CUSTOMERS(RETAILERS)
(RETAILERS)
TOWARDS
TOWARDSE-COMMERCE’’
E-COMMERCE’’

GUIDED BY: SUBMITTED BY:

Prof. Tauseef Irfan Subroto Kirti
PGDM – 2017 – 2019
 INTRODUCTION

E-COMMERCE INDUSTRY IN INDIA

Retail Sector (E-Retailing)

Electronic commerce or e-commerce consists primarily of the distributing, buying, selling,

marketing, and servicing of products or services over electronic systems such as the Internet

and other computer networks. The information technology industry might see it as an

electronic business application aimed at commercial transactions. It can involve electronic

funds transfer, supply chain management, e-marketing, online marketing, online transaction

processing, electronic data interchange (EDI), automated inventory management systems,

and automated data collection systems. It typically uses electronic communications

technology such as the Internet, extranets, e-mail, e-books, databases, and mobile phones.
The sector is classified into four major types, based on the parties involved in the transactions

– Business-to-business (B2B), business- to-customer (B2C), customer-to-business (C2B) and

customer-to-customer (C2C). According to an Internet and Mobile Association of India

(IAMAI) report, the overall e-commerce market in India has recorded a robust CAGR of 54.6

per cent and crossed USD10.0 billion during 2007–13. It is estimated to add another USD4

billion and reach USD14 billion by end-2012. Segment-wise, B2C dominated the sector with a

56.0 per cent share in 2010–13. Together, the B2C-C2C segments have shown significant

growth; their aggregate market size stood at USD9.9 billion in 2013, while that for B2B

segment was estimated at around USD48.8 million. However, B2B‘s acceptance is on an

upward trend due to its rising awareness amongst Small and Medium Enterprises (SMEs),

which are close to 13 million in number.

 MAIN GOALS OF E-TENDERING PROCESS IN INDIA

The prime objective of E-Tendering is to educate, encourage/ incentivize and thus facilitate

Government Departments at all levels, through appropriate steps and interventions from

Central Government level, to readily adopt and use the new technologies to bring in

transparency in tendering process and gradually move towards adoption of electronic

Procurement solution(s) for their procurement needs on a continuing basis.

It also aims to act as catalyst in streamlining the procurement processes of public/ Government

sector with the help of ICT tools and technologies, enabling them to harness the

multidimensional benefits of eProcurement/ eTendering pertaining to: efficient and cost-

effective procurement, shortened procurement cycles, full transparency in the whole process,

avoidance of human discretion/ interference to the extent possible, easy availability of complete

audit trail and evidential data etc.

These steps will enable access to widest reach of tenders and unhindered secured bid

submission facility for all, from any corner of the country.

 TRANSFORMATION OF INDIAN RETAIL INDUSTRY

In 2012, India‘s Gross Domestic Product (GDP) was ~USD 1.7 trillion, at current prices, of

which private consumption constituted nearly 60%. USD 490 billion was the size of the

merchandise retail market in India, which accounted for nearly half of private consumption.

The high share of private consumption in India‘s economy, which is not expected to change

much in the coming decade, also implies that India‘s retail growth rate will mirror the

country‘s GDP growth rate. India‘s GDP growth, in real terms, will average nearly 6% over the

next decade. This growth will therefore translate to an increase in merchandise retail market,

from the current ~USD 490 billion, to USD 810 billion, by 2021, in real terms, and USD 1.4

trillion in nominal terms (assuming a 7% inflation rate).

There are three types of destinations that address retail sales in any market:
1. Traditional Retail: Brick & Mortar
2. Corporatized Retail: Brick & Mortar
3. Corporatized Retail: E-tailing
 EFFECT OF E-TAILING ON TRADITIONAL RETAIL INDUSTRY

World over, e-tailers have struggled to develop a successful business model for Food & Grocery

(F&G) e-tailing. The nature of consumer behavior, product perishability, and supply chain

issues relating to sourcing and storage are some of the issues due to which Food & Grocery has

not found a viable e-tailing route. In India, the consumption patterns and supply chain issues

pertaining to Food & Grocery are even more complex. Consequently, e-tailing‘s growth in India

will mirror the trends of more mature e-tailing markets and will be driven by non-food

categories.

Another supporting fact is that while 67% of India‘s total retail is comprised by Food &

Grocery, only 3% of this can be attributed to corporatized brick & mortar retail; this will at

best increase to 5% by 2021. This implies that ~95% of the Food & Grocery market will remain

with traditional retail even a decade from now.

 FUTURE SCOPE OF E-RETAILING

The dramatic shift is now occurring because e-tailing in India now offers shoppers the flexibility

and customization to recreate their everyday life online. Even items of daily use are now seeing

traction. From what we wear to what we consume and how we shape our minds – everything now

has an online point of sale that is constantly responsive to shoppers needs to compare, seek

information, navigate choice and seek affiliation with their network of friends and acquaintances.

No doubt, offline retailing will always draw-in its constant stream of shoppers who are either not

yet online or are still seeking the tactile reassurance of what they are buying. Yet, this growing

shift is a signal to brand owners and retailers that being connected to your shopper online and in a

manner that makes you part of their everyday lives, has the potential to pay off thanks to the

rapid and unstoppable evolution of India‘s digitally connected shopper.

 CHALLENGES FACED BY E-RETAILERS IN INDIA

Today consumers are powered with loads of choices for selection of the product they

are looking for. They are actually able to compare the products, look for availability of

the product, get detailed information about the product, check prices at various online

websites selling the specific product and also look for attractive offers. Consumers get

their choice of goods as well get satisfied with the price they pay. Now from e-retailers

perspective, above are the must have in order to be competitive and increase sales. But

for e-retailers to survive they also need to maintain healthy profitability month on

month by creating awareness among customers to visit their website and convert visits

into sales. There are some of the major challenges which e-retailers face in India to be

competitive in their business.

 OBJECTIVES OF THE STUDY

To understand the concept of E – Commerce.

To know and understand the scope of marketing of E – Commerce in India.

To identify the factors affecting consumer buying behaviour and consumer decision making

process.

To conclude and suggest strategies for effective marketing of E – Commerce products.

  RESEARCH METHODOLOGY

METHODS OF DATA COLLECTION

There are two types of data collection methods which are as following:-
Primary Research
Secondary Research

PRIMARY RESEARCH

Primary Research (also called Field Research) involves the collection of data that does not

already exist. This can be through numerous forms, including Questionnaires & Telephone

Interviews amongst others.

SECONDARY RESEARCH

Secondary research (also called desk research) involves the summary, collation and/or

synthesis of existing research rather than primary research, where data is collected from, for

example, research subjects or experiments.

 • In doing this research the both methods are being used.

• The Questionnaires are being prepared and filled by the people who are investing in

FMCG Sector.

The Secondary data is being collected from different magazines, newspaper & Journals. For the

Literature of review certain online journals has also been collected.

In doing this research the Questionnaire is used to collect the data.

SAMPLE:

A subgroup of the elements of the population selected for participation in the study.

SAMPLING UNIT:

The sampling unit in this research is all the people of Lucknow.

SAMPLE SIZE:

The Sample Size for this study is 100.

 CONCLUSION
The current growth in e-tailing was driven by start-ups, and backed by venture capital and

entrepreneurship. While the Indian e-tailing market is yet to achieve a steady state, these initial

entrants have succeeded in capturing the imagination of a sizeable consuming class. These have

also acted as a catalyst in the creation of an ecosystem necessary for the growth of e-tailing.

E-tailing‘s potential cannot be tapped on the premise that investments by a few organizations will

unlock this opportunity. Going forward, the projected size of e-tailing by 2021 will not be

composed of pure e-tailing companies, as is largely the case today.

Some of the existing, pure e-tailing businesses will manage to build sustainable businesses and

grow in size. Many new pure play e-tailing start-ups will also tap the market. Many of the current

brick & mortar retailers (both traditional and corporatized) will succeed in viewing e-tailing not

as an extension but as an important business growth driver. Similarly, many consumer brands will

also build e-tailing businesses as a direct go-to-market approach.

E-tailing is an integrator of technology, logistics, and infrastructure, and creates a relatively

efficient marketplace for vendors and consumers. At present, the Indian e-tailing market is limited

by its incapability to play the role of an efficient integrator. This role has been played in other

places by retailers, technology companies, venture capitalists, and private equity investors. Given

the fact that the current share of corporatized retail is under 10%, and that the domestic venture

capital industry is still in its infancy, policymakers will need to seek a rapprochement with

investment and expertise from overseas players.

E-tailing has to be viewed in the context of the profile of India that is poised to emerge over the

next decade. This emerging India will comprise consumers who will have the desire, need, and

conviction to use the Internet for a host of reasons, of which shopping will be one.

1. Opening up of e-tailing for international capital and knowledge infusion

2. Facilitating the smooth rollout of wireless data access and broadband connectivity
 REFERENCES
1. Evolution of E-Commerce in India by Pricewater House Cooper (
http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf)
2. Retail 2014: The anytime anywhere Universe by Pricewater House Cooper (
http://www.pwc.in/en_IN/in/assets/pdfs/publications/2014/retail-2014-the-anytimeanywhere-univ
erse.pdf
)
3. Re-Birth of E-Commerce in India by Ernst & Young (
http://www.ey.com/Publication/vwLUAssets/Rebirth_of_eCommerce_in_India/$FILE/EY_RE-B
IRTH_OF_ECOMMERCE.pdf
)
4. The Indian Kaleidoscope: Emerging Trends in Indian Retail by FICCI & PWC (
https://www.pwc.in/en_IN/in/assets/pdfs/industries/retail-and-consumer/retail-report300812.pdf)
5. E-Commerce: Rhetoric, Reality and Opportunity by Internet and Mobile Association of India
(IAMAI) & KPMG (
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPM G-IAM
AI-ES.pdf
THANK YOU