EVOLUTION OF E-COMMERCE IN

INDIA

SUBMITTED BY:
P.GURIVI REDDY

INTRODUCTION

Buying And Selling Of Goods And Services

Transmitting Of Funds Or Data

Through An Electronic Network Or Medium

Different Types Of E-commerce

B To B
B To C
B To G
C To C

TYPES OF E-COMMERCE
B TO B
Eg Indiamart, Sulekha
B TO C
Eg Flipkart, Amazon
B TO G
Eg Providing of tax forms
C TO C
Eg ebay, olx, quikr

HOW IT STARTED
It started in the year 1996 and has been growing ever since.
1996 India Mart (B 2 B)
Shaadi.com (B 2 C)
1997 Recruitment Portal Naukri.com
2000 cbazaar.com
2002 ebay.in
2005 online ticket booking by airlines and railways
And so on.

COMPARISION

PROGRESS THROUGH THE YEARS

Between 2000 and 2005:
Small online shopping user base
Low consumer acceptance and inadequate logistics infrastructure
IT downturn in 2000 led to the collapse of the industry
Between 2005 and 2010: two major transitions
Online Travel: The entry of Low Cost Carriers (LCCs) in Aviation
sector
Online Retail: Developed in the second wave in 2007
Indian Railways also implemented e-ticket booking
Post 2007, a number of start-ups stepped up
2010 onwards:
Group buying and daily deals models became a sought after space
Companies have started establishing their presence in the social
media

CURRENT MARKET SCENARIO

Has an annual compounded growth rate of 35%
The market might cross $100 billion mark over the next
5years.
Logistic infrastructure is the weakest link
Travel industry comprises 61% of total market
E-tailing grew by 1.4 times from 2013
Rakuten and Alibaba are entering Indian market
Digital India program by GOI
Aggressive funding by investors in the sector

TRENDS TO EXPECT IN FUTURE

Evolution of logistics
Distant possibility of profits
FDI
Increase in competition
Technology based products, drones

DRIVING FACTORS
Reduced search and transaction cost
Reduced process lead-time and faster time to market
Increased customer service
Improved convenience and shopping experience
Increased information transparency
Knowledge generation

IMPACT ON ECONOMY
Impact on intermediaries
Impact on agricultural products
Impact on employment market
Impact on cost, price and competition

COMPARISON WITH WORLD ECONOMIES

China Though with 1.3 billion people India nearly matches
Chinas 1.4 billion in total population, 46% of Chinas
population (642 million users) has Internet access,
compared to less than 20% of Indias (243 million users)

And online shopping has caught on in China, with over

28% of the population having purchased online this
year, while less than 5% of the Indian population
attempted the same
USA A user in US makes an average amount of 6 times more
online transactions than that an Indian user makes
An area where India is lacking is online grocery retail
In India COD transactions are more when compared to
USA