...3 Group 3 Contents Introduction: The E-commerce market 2 Market Scenario: India 2 Drivers of Growth 3 Competition & Emerging Market Trends 3 Key Drivers of Industry 5 PESTEL Analysis 6 Government regulations 7 Business model 7 Barriers to entry 8 Lifestyle as a segment 8 The acquisition of Myntra 9 Conclusion: The road ahead 10 Which category to pursue? - A Game Theory Model 10 References: 12 Introduction: The E-commerce market Electronic commerce has emerged as an indispensable ingredient of India’s trade facilitation policy. Since 1991, The economic reforms explicitly took place in India around 1991 which resulted in the integration of the economy with the global economy. This combined with globalization and the advent of Internet has facilitated the growth of e-commerce market all over the world. India first came into interaction with the online E-Commerce via the IRCTC in 2002. The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Since then the market was taken over by airlines and other travel companies which made the mode of ticket booking online. This was taken forward by Flipkart, Snapdeal, Amazon and other companies and today, they rule this industry. The E-commerce business transactions are categorized into business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B) and the recently evolved business-to-business-to-consumer (B2B2C)...
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...MODULE - 1 BUSINESS MODEL IDENTIFIED BUSINESS TO CUSTOMER The B2C model focuses on direct selling and marketing between a business and a consumer via an e-commerce website. A lower purchase volume of higher priced products typically characterizes B2C companies. Since the model depends on individual transactions and eliminates the wholesale purchaser, the company can make a higher profit while the consumer spends the same amount of money or sometimes less. B2C is effective for smaller companies since individual consumers are not as concerned with company recognition as they are with getting the product for the best price. TYPES B2C companies divide into five major categories: direct sellers, online intermediaries, advertising-based models, community-based models and fee-based models. Each type is so different from the others that they are not directly comparable. In fact, some B2C businesses utilize more than one type to reach different audiences. DIRECT SELLERS Direct sellers, such as online retailers, sell a product or service directly to the customer via a website. You can further divide direct sellers into e-tailers and manufacturers. E-tailers are electronic retailers that either ship products from their own warehouses or trigger deliveries from other companies stocks. Product manufacturers use the Internet as a catalog and sales channel to eliminate intermediaries. ONLINE INTERMEDIARIES Online intermediaries perform the same function as any other broker. The business...
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...SUBMITTED TO: Dr. PURNAPRABHAKAR NANDAMURI DATE: 31-8-2014 Background Flipkart is an e-commerce business founded by Sachin and Binny Bansal in 2007 both are not related to each other and alumni of IIT Delhi. It is a Singapore holding based company and the most of investors are from foreigners, the business was incorporated as a company in October 2008 headquarters Bangalore, Karnataka .During its initial years Flipkart focused only on books and soon as it expanded, Today they are present across categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationeries, perfumes, toys, apparels, shoes and eBooks. They both pooled in Rs 2 lakh each and with two computers launched the site from their two-bedroom apartment in Koramangala, a primarily residential locality in Bangalore where the company now has multiple offices. For 10 days, the site did not see a single sale and then a customer VVK Chandra from Andhra Pradesh placed the first order for the book 'Leaving Microsoft to Change the World’. Now the Flipkart has more than 10000 employees. Flipkart initially had spent 4lakhs to set up the business but it has later raised funding from Venture Capital funds Accel India, Tiger global, Nasper group and Iconiq Capital. In 2011 Flipkart acquired Mime360 and Chakpak.com Websites and later in 2012 flipkart revealed its new Flyte Digital Musical Store, but it was shut down in June 2013 as...
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...India has an internet user base of about 250.2 million as of June 2014.[1][2] Thepenetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing[3] at a much faster rate with a large number of new entrants.[4] The industry consensus is that growth is at an inflection point.[5] Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run [6] and there is a need to make a shift towards online payment mechanisms. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings. Market size and growth[edit] India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.[1] About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million[7] as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%[8] CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Key drivers in Indian...
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...Evaluating the declining sales of Myntra Abhishek Moitra Ayush Mohta Bindiya Deora Debabrata Mukherjee Kumar Gaurav Niraj Jhunjhunwalla Saswata Banerjee Siddhant Chhaochharia Indian Institute of Management Ranchi TABLE OF CONTENTS Page 1. Market Size .….……………………………………………….………………………. 4 2. Business Models …...……………………………………………………………….... 4 3. Challenges …….….…………………………………………………………………... 4 4. Mobile First …………………………………………………………………………… 6 5. Competitor Analysis a. Porters five forces analysis…………………………………………… 8 b. Swot analysis of Myntra……………………..……………………….. 9 6. Problem Statement ……….…………………………………………………………… 10 7. Method a. Participants……………………………………………………………. 11 b. Apparatus……………………………………………………………... 11 c. Design………………………………………………………………… 11 d. Procedure……………………………………………………………. 11 8. Results ……………………………………………………………………………… 13 9. Conclusion …..……………………………………………………………………... 16 10. Appendix ..………………………………………………………………………... 18 11. References …...……………………………………………………………………. 26 Abstract Over the last decade, the Internet has changed the way people buy and sell goods and services. Online retail or e-commerce is transforming the shopping experience of customers. The sector has seen unprecedented growth especially in the last two years. The...
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...FLIPKART: The success story… The Indian youth is embracing the boom in e-retailing and this boom is headed by the Flipkart in almost every market segment. The market share of Flipkart is so predominant that even the offline stores are getting heavily affected. But what has made this new comer such a force in market that even the global giant like Amazon is feeling the heat of competition in India? INRODUCTION- The story starts when two guys Sachin Bansal and Binny Bansal alumni of IIT Delhi working in Amazon quit their jobs and start their startup in September 2007 with initial funding of Rs 4 lakhs at Bangalore. They adopted the Amazon model in India and started with books category because they are easy to store, low cost of maintenance and value doesn’t change with time. It took them 4 months to sell their first order and their initial orders were totally dependent on their friends and close relatives. From coding to delivering of books, all the tasks were handled by both of them but they never lost the hope and kept strong belief in their dream project. They realized the potential of Indian market in e-commerce sector and made a flexible business plan to tap that potential. Their plan and efforts were so aligned with the market requirements that it took them only 6 years to reach from Rs. 4 lakhs to Rs. 400 crores and overtook their all existing and new competitors by a big margin. The investors have such a strong trust in the leadership and vision of Flipkart that continuously...
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...like Anouk helps people to come out of the closet and conservative thoughts of the society. Homosexuality is always been a serious topic in our vast and diverse country even though the judiciary system has not given the LGBT community their entire rights as compared to the heterosexuals but however there are some people in our country who are ready to accept the new culture and involved in spreading the message that there is nothing wrong to be a homosexual. In United States the advertisements are common but in its illegal. Earlier the lower court in India declared LGBT as unconstitutional but supreme court two years ago restrained the ban. Myntra launched its new digital campaign which is called “Bold is Beautiful” for the ethnic brand Anouk. This TV commercial caught lot of attention and sparked controversies all over the country. Fastrack also has been airing many bold commercials from the beginning which tries to change the mindset of the people. Their latest commercial The Closet which shows two girls coming of the closet and this commercial coveys a message that one has to be brave and come out in the society and getting scared of the people of the society There are many other advertisements like FASTRACK, COCA-COLA, LEVI’S, etc., Such LGBT advertisements have now come into light and broadened the mind of people about ...
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...these models because of in-efficient logistics and payment collection networks and lack of internet penetration at that time. Also, these were more focused towards the NRI Audience who wanted to send back gifts home and were more comfortable doing online transactions. Then Ebay entered the marketplace with the acquisition of Baazee and offered a platform for sellers to get in touch with interested buyers and sell their goods online. This model was further followed by OLX/Quikr which have introduced similar services. IRCTC also introduced online ticket booking in the mean time, The marketplace was completely revolutionized by the entry of players such as Flipkart,Snapdeal and Amazon about 6-7 years back. These sites started with the marketplace model and covered only a few product categories in the beginning,For ex, Flipkart and Amazon to a large extent sold only books in the beginning and expanded to other sections later on . Expansion of this model was done using the following methods: * Tie up with a large number of retailers offering veried goods * Introduction of Cash On Delivery as a payment option * 30 Day No Hassle Return Policy employed by many e-tailers * Significant investment in warehouses and acquiring in house...
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...Chennai, Ahmedabad and Pune by March 2015. LocalBanya holds down its inventory levels to a minimum by sourcing goods directly from wholesale markets and maintains an on-time delivery rate of 95% through efficient navigator-based route-planning. LocalBanya is now negotiating with agricultural cooperatives about the possibility of direct purchases and is contemplating plans of growing of organic fruit and other produce. In addition, it is planning to transport fresh meat and fish on a trial basis. Latest developments in Retail Market Ever increasing competition and steady growth are driving India's e-commerce businesses to seek fruitful partnerships and restructure operations for optimum use of their resources. India’s major online retailer Flipkart has...
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...Draft Report On Financial Evaluation of Flipkart response to Amazon’s challenge Submitted To: Dr. Anupam Rastogi Submitted By: Group 4 MBA Capital Markets Nikhil A001 Nikita Agarwal A002 Niket Jithra A029 Nitish Khator A034 Pankaj Shah A046 Nilabh Shekhar A047 1|Page Introduction The e-Commerce industry was in its infancy for the larger part of the previous decade. However, in last three years, the industry has witnessed an incredible growth of 150%, increasing from USD 3.8 billion (INR 19,249 crores) in 2009 to USD 10 billion (INR 47,349 crores) in 2013. A number of business models for e-Commerce have evolved and are in varying stages of maturity. The resultant industry has come to be dominated by Flipkart, Amazon and Snapdeal in the non-travel related ecommerce market. e-Commerce is a capital intensive business and with problems abounding in technology infrastructure, low profit margins and poor physical infrastructure (logistics and distribution). In spite of this Flipkart has managed to raise $1.2 B this year which was followed by Amazon declaring an investment of $2B. In order to meet this challenge head – on Flipkart has planned to spend significant amount of capital in back-end infrastructure, logistics and warehouse, technological upgrade, scouting for new acquisitions, customer acquisition and talent. Paucity of significant larger players has resulted in money chasing few firms which have resulted in distorted valuations of companies. The companies have been...
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... 1st Year Go Mobile or Go Home Tablets, IPads, smartphones are ubiquitous and people are glued to these handy screens. We just love anything that’s convenient to us and this is how we want to eat, travel, shop and do anything just by touching the screen in our palms. Smart mobile is the present and smarter will be the one who uses it to build business and grow. Ditto!! Ecommerce companies is what we are taking about or should we call them M-commerce as they are growing in the mobile space. But why this rapid increase in smartphone users? The answer is ever involving digital technology and future generations of mobile networks. And this is the fact retailers are leveraging upon. While domestic players Flipkart and Snap deal rule the market, the sector has also caught the fancy of global giants like the Amazon and China’s Alibaba — all are competing hard for a bigger share of the cake. Competition is expected to grow more and more with these e-commerce companies employing different ways to attract consumers and increase online traffic. M-commerce is one of the leveraging initiatives which has added a new dimension to the market. As you may have...
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...Why are companies not selling products online themselves but are going for big e-commerce players to do the job for them? Whilst the online v/s offline competition gets stiffer by the day, single brand retail companies were not allowed to carry their business online individually, and were only allowed to sell through multi-branded ecommerce stores like Flipkart, Jabong etc. Now comes a news that single brand retail outlets with a license for setting up physical outlets, according to revised FDI regulations will be permitted to sell online too. Any brand entering India will have to apply for a license to set up physical stores and once it secures the license, it can sell products online through the automatic route. The DIPP (Department of Industrial Policy and Promotion) recently announced a slew of FDI reforms across 15 sectors. “There was no reason why brands, which are selling through their stores, be restricted from ecommerce platform. Government’s intention was to make these norms easier for such companies not to let them apply for ecommerce directly,” said Parish Parekh, tax partner at EY Currently, single-brand retail permits 49% FDI under the automatic route, which can go up to 100% with government approval. Now, all companies that manufacture in India, as in made in India, will be permitted to take the ecommerce platform. To make business easier for the high value single-brand entities, the announcement also states, “in case of state of the art and cutting edge...
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...Collating data from the last two decades, the advent of increased internet penetration and the technology backing the rise of the mobile industry has had a transforming effect on the way we do business and communicate. E-commerce is by far a relatively new concept. The concept has recently gained fruition owing to the major strides being made in the computer and mobile industry and need for people to be able to communicate and do trivial jobs over the click of a button or the swipe of a finger. However, when talking statistics, while e-commerce has grown beyond measure in countries like US and China where they have achieved US 150 billion USD in revenue, India is still playing catch-up to what is being heralded as the next big thing in the retail sector. However, it is not to say that the industry hasn’t grown at all, with an increase of 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013. Industry studies by IAMA2 reveals that online travel is by far the most prevalent of the e-business modules, taking over more than 70% of the total transactions in this domain. However, e-retail and marketplace are catching up fast, with studies in various research journals showing that there has been an estimated growth of 11%, from 10% in 2009 to 21% in 2014.The studies also throw light on the fact that Parcel Checkins have also increased by over 150 million in 2014, which, however, still stands at approximately 2% of India’s total retail market. As it...
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...Growth of E-Retailing in India By: Shifa Hashmi MBA – 1 Year Tapmi School of Business, Jaipur Abstract Consumer’s perception regarding shopping has been changed with the introduction of Internet media. Retail industry has witnessed major revolution in the changing technology oriented business scenario of 21st century in India. Internet has shrunk the entire World. The rules of the game in retailing are fast changing with the introduction of Information Technology. The e Retailing website is the front door of the online store that interacts between the e-retailer and consumers. The electronic retailing (e-Tailing, e-Retailing, internet retailing etc.) is the model of selling of retail goods using electronic media, in particular, the internet. E-Retailing is a subset of e-Commerce (Electronic Commerce). E-Retailing accounts for about 10% of the overall growth of e Commerce market. The growth in the e-Retailing market is driven by the need to save time by urban India. It is estimated that 2.5 billion internet users, access to internet has played a significant role in growing the business markets. The Internet gives retailers an instrument for: broadening target markets, enhancing consumer relationships, extending product lines, improving cost efficiency, improving consumer communications, and delivering customized offers. E-Retailers serve 24 hours x 7 days in a hassle free manner to consumers. Along with advantages of e-Retailing some major issues...
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...Report on Industry overview Of 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 TABLE OF CONTENTS 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. INTRODUCTION 1.1 About E-Commerce As a result of globalization and revolutionized technology and in many ways its feature, the term e-commerce represents the edge of success in this modern age computers and technology. E-commerce stands for electronic commerce. It means dealing in goods and services through the electronic media and internet. On the Internet, it relates to a website of the vendor, who sell products or services directly to the customer from the portal using a digital shopping cart or digital shopping basket system and allows payment through credit card, debit card or EFT payments. E-commerce involves carrying on a business with the help of the internet and by using the information technology like Electronic Data Interchange. In general words, Electronic commerce is the activity of buying and selling of the goods and services across the world through the World Wide Web. The Customers having interest in the products...
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