EMERGING TRENDS OF

IN INDIA
MADE BY:-
PREETI.M
SHREY.KR
ANTIL.S
AKSHAY.A
B.B.A-VI-
C(IB)
 INTRODUCTION
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, email, e-books,
databases, and mobile phones.
Buying
Selling Products
Computer
Marketing of Services Electronic Commerce
over networks
And Information
Servicing

Enterprise Internet, intranets,

extranets
and other networks

The total value of E-commerce activities within India has exceeded Rs 5.7 billion during 2004-05,
according to a research conducted by Internet & Online Association of India (IOAI). India’s IT
services exports have almost doubled in two years and now account for more than 16 per cent of
total exports and 8 per cent of all foreign exchange earnings. Given the extraordinary growth rates
of e-services exports, the latter figure is expected to reach 30 per cent by 2008. Policy measures to
support exporters of e-services should focus on increasing market access in e-services for
exporters from the developing countries, as well as addressing domestic obstacles related to
technology, payments, infrastructure (telecommunications) and standards.
The e-commerce is one of the biggest thing that has taken the business by a storm. It is creating an
entire new economy, which has a huge potential and is fundamentally changing the way
businesses are done.
FUNCTIONS OF ELECTRONIC COMMERCE
The four functions of e-commerce are:
1. Communication
2. Process management
3. Service management
4. Transaction capabilities
 SIGNIFICANCE OF E-COMMERCE
The electronic market place participants are not limited only to digital product companies
e.g. publishing, software and information industries. The digital age and the digital revolution affect
all by virtue of their process innovations:

•Web-TV and digital television is going to affect TV news and entertainment programmes.
Changes in telecommunication will affect the way the information is received, product
announcements, orders etc.
•Phones, Fax machines, Copiers, PCs and Printers have become essential ingredients in
doing business, so are E-mail, websites and integrated digital communication
• Today’s office business machines are not integrated (eg. Faxed orders have to be typed in
on computers), the much talked about convergence will drive all these equipment into one
digital platform, whether it be a computer connected to the Internet and intranet, a new
kind of device capable of interacting with other devices, because that device will prove to
be more efficient and productive.
 EVOLUTION
2010 has been defining for the Indian e-commerce sector,
which has (and some may sigh “finally”) come of age with
much of the evolution being clearly visible this year. Though a
fairly old industry in India, this sector has caught the fancy of
investors and has generated multiple entrepreneurial avenues,
riding on macro trends such as increase in broadband
penetration, change in buying patterns and the success of
group buying sites globally. So, what did we see this year?
Most significantly, travel site MakeMyTrip’s listing at the
Nasdaq spurred the interest of many an investor as they saw a
clear potential of a liquidation event. 2010 also nearly double
of number of M&As (25) compared to 2009 (11), according to
data compiled by our financial research platform VCCEdge. In
this backdrop, VCCircle spots some key trends, including M&As
and private equity fund-raising, in the e-commerce space in
2010 that will have a bearing on the way the industry evolves
in 2011 and beyond.
 Categories that are flying:
Domestic entrepreneurs are raring
to set up online stores mimicking
global ecommerce sites. The top
categories within e-commerce,
investors say, are travel, classifieds,
group buying, auto sales and luxury
brands.
Travel, the big e-commerce story: The catalyst for
e-commerce, one category which is largely
responsible for making users more comfortable with
online transactions is travel. Top players such as
IRCTC, Makemytrip.com, Yatra.com and
Cleartrip.com are witnessing a boom in online
ticketing sales and are expanding their portfolio of
services to add hotel booking and packages. Make
my trip India Pvt. Ltd. acquired online bus ticketing
company Ticketvala.com from Mumbai-based Travis
Internet Pvt. Ltd. in March 2010 and in August had a
high profile listing on NASDAQ.
Indians love discounts: Having received high
valuations, deal sites and voucher-based ecommerce is the
flavour of the year with domestic startups mimicking global
sites, primarily Groupon.com. “Indians like deals, so daily deal
sites will continue to attract users,” says Rajan Anandan, an
angel investor. Sites such as Snapdeal.com, Mydala.com and
Dealsandyou.com have established themselves and a slew of
more daily, localised deal sites are cropping up such as
DealMagic and Koovs.
 But we also like fashion: Today eBay acquired
Germany’s fashion and lifestyle shopping site
brands4friends.com for $200 million, to foray into the
hottest sector in ecommerce – high end luxury portals. In
India, sites such as 99labels.com, exclusively.in and
Fashionandyou.com are competing in this segment. In
November, Accel India Venture Fund and Helion Advisors
Pvt. Ltd. invested $2.8 million in Exclusively.In, Inc. followed
by Sequoia Capital infusing $8 million in Fashionandyou.com.
Anandan warned that retailers tend to be laggards when it
comes to technology – and this will prove to be an issue for
e-commerce players.
Strategic shifts: General e-commerce has shifted
from being a horizontal space to vertical and
shopping sites such as Indiatimes Shopping and
Rediff Shopping need a total makeover. On the
other hand, many portals are expanding horizontally
- take Yebhi for example. Bigshoebazaar was
recently rebranded as Yebhi - it no longer is a shoe-
only store and also sells accessories, bags and
clothing.
Classifieds going strong: Jobs, real estate,
matrimonial continue to see traction. Linkedin,
Naukri and Monster.com have top-recall followed
by TimesJobs.com and Shine.com by HT Media.
Matrimonial sites such as Consim Info Pvt Ltd’s
Bharatmatrimony.com, Shaadi.com and
Jeevansathi.com continue to reign. Naspers Ltd
infused $40 million into the Nexus-backed OLX and
in July, Mid-Day Infomedia Ltd. acquired SnatchKing
Online Pvt. Ltd.
 What is in store: Large e-commerce
companies in India will need to spend heavily
on infrastructure over the next three years to
maintain momentum. Despite shipping delays,
billing errors, poor user interfaces, checkout
issues, the perception of online transactions not
being secure and the continued lack of
bandwidth, the mood of e-commerce players is
one of optimism as they wait for 3G networks
to roll out.