E Commerce In India Essay

5037 words - 21 pages

Report on
Industry overview
Online Shopping In India with Focus on B2C Online Retailing

Prepared for:
Prof. Praveen Gupta
16th January, 2013

Prepared by:
Vijendra Sharma – 02EX12
Esha Malhotra – 10EX12
Jagpreet Ahuja – 11EX12

Chapter Number | Particulars | Page Number |
1. | Introduction | 3 |
2. | Opportunities in this segment | 7 |
3. | Brief on Flipkart | 9 |
4. | Porter’s Five forces | 12 |
5. | Critical Success factors | 15 |
6. | Challenges Ahead | 18 |
7. | References | 21 |


1.1 About E-Commerce

As a result of globalization and revolutionized technology and in many ways its feature, the term e-commerce ...view middle of the document...

E-commerce provides multiple benefits to the consumers in form of availability of goods at lower cost, wider choice and saves time.

1.2 E-Commerce in India

For developing countries like India, e-commerce offers considerable opportunity. E-commerce in India is still in nascent stage, but even the most-pessimistic projections indicate a boom. It is believed that low cost of personal computers, a growing installed base for Internet use, and an increasingly competitive Internet Service Provider (ISP) market will help fuel e-commerce growth in Asia’s second most populous nation. Indian middle class of 288 million people is equal to the entire U.S. consumer base. This makes India a real attractive market for e-commerce. To make a successful e-commerce transaction both the payment and delivery services must be made efficient. There has been a rise in the number of companies' taking up e-commerce in the recent past. Major Indian portal sites have also shifted towards e-commerce instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers. With stock exchanges coming online the time for true e-commerce in India has finally arrived. Modern computer technology like secured socket layer (SSL) helps to protect against payment fraud, and to share information with suppliers and business partners. With further improvement in payment and delivery system it is expected that India will soon become a major player in the e-commerce market.

1.3 E-Commerce Market Segmentation in India

The E-commerce market in India was valued at US$7.26 billion in 2011. The Travel segment of this market accounted for a share of 75.81 percent and was valued at approximately US$5.5 billion in 2011. The Travel segment includes online travel services for domestic as well as international travel and tourism. Some of the popular vendors in this segment are Makemytrip.com, Yatra.com, and Cleartrip.com. The E-tailing segment accounted for 8.95 percent of the E-commerce market in India in 2011, followed by the Financial Services segment, which accounted for 7.78 percent share. The Financial Services segment includes online banking or net banking services provided to consumers through major global and local banks in India. The Downloads segment accounted for 1.98 percent of the market. This segment includes downloads of movies, music, and wallpapers. The others segment, which accounted for 5.48 percent of the market, includes other internet-related services such as online booking of movie tickets.

1.4 Key Growth Drivers

The growth of the E-tailing market in India is driven by many factors. One of the major drivers is the increasing penetration of technology in India. The increasing penetration of technologies such as the internet, broadband, and 3G and 4G connections has helped e-tailing vendors improve the online deployment of...

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