CASE#1:M-COMMERCE IN INDIAOPPORTUNITIES AND CHALLENGES

DEEPAK GOYAL HEMANT PANSARE RAMKISHORE MELLAM

INTRODUCTION
The penetration of M-Commerce in India is very low compared to under
developed countries like Kenya and Afghanistan. Some international Mobile handset manufacturers and mobile network providers have begun operations in M-Commerce domain at a low scale in India

CHALLENGES AND COUNTERMEASURES

CHALLENGES
URBAN low acceptance by middle
age and older people RURAL low literacy levels

COUNTER MEASURES
URBAN Awareness through

advertisement campaigns RURAL service to be provided in local languages Ease of operation and friendly GUI Increase in adoption brings costs down Better encryption/decryption of WAP payment gateways

Other modes of payment Transaction charges will be high initially Mobile security risks

BUSINESS MODEL AND IMPLEMENTATION

Create incentives for business owners to migrate to M-commerce platforms by providing them with inventory free of cost provided they agree to use it for long term. Offer better margins to retailers than other modes of payment

Gateway
Commission charged Time for reimbursement

M-commerce

1%

3-4%

0%(proposal)

1 day

3 weeks

immediately

ROLE OF STAKEHOLDERS
STAKEHOLDER ROLE

Mobile service provider

User friendly M-commerce service which is secure and fast Innovators and early adopters to act as brand ambassadors for the service and lead opinion in favour of M-commerce Enable the integration of all retail payment gateways systems under one umbrella organisation

Consumer

RBI and NPCI

FINANCIAL SERVICES

Transfer of money/ balance transfer

Tickets

Payment of utility bills

Payment of shopping/eating out

Technology challenges

Many technology options to choose from SMS based : existing infrastructure can be used NFC based : require installation of new infrastructure and adoption by big players, security issues We recommend SMS based service NFC based services can become popular in urban areas for retail Focus on peer to peer

Competition

India post office has launched electronic money order up to 5000 Rs. using mobile

Threat from big players like Google & VISA

Focus on vernacular language and graphic interfaces to build brand loyalty

Establish a network with vendors to provide localized value added services to take advantage of early mover

Marketing Strategy

For rural areas educate children who will be more at ease to adopt new technology

Run advertising campaign to remove any fear abut security

Tie up with some retail chain selling mobile to register customer for Mobile Money at the time of buying mobile itself

Marketing Strategy

Option to top up service at local merchants

Provide banking service like option to transfer money into a saving account

In Rural areas position like a bank

In Urban areas position like a money transfer service

Thank You