E-Commerce in India History

India: retail e-commerce sales 2012-2017

Retail e-commerce sales in India from 2012 to 2017 (in billion U.S. dollars)

16
14.18
14

12
10.68
10

Sales in billion U.S. dollars

7.69

5.3

3.59
2.31

0
2012

Source: eMarketer; Statista

2013

2014*

2015*

2016*

2017*

Demographics

Youth 18 - 35
SEC A & B
Computer Literate & Internet
savvy
Youth - Youth People of the age group 18 35
years are the largest purchasers of items
online, with a majority among them having
access to their own financial resources.

Internet is accessed primarily from home or

workplace but there is a growing number of
people who access internet from mobile
devices also. Currently it is estimated that
30% of online shopping queries come from
mobile phones.
Discounts
Convenience
Variety or Range of Products

Trade Segmentation

E-retail - refer to the direct trade between

companies and end consumers.

Market Place A manufacturer or suppliers who

doesnt supply the end consumer but instead sell
goods in bulk to market intermediaries & bulk
buyer institutions.

Trav
el
Pure Play

Restaura
nts

Brick &
Click

Job Portals
Information
Banks
Real Estate
Entertainment
Marriage Portals

Business Models

B2C Own branded merchandise

Market Place Various brands
Business 2 Business
Consumer 2 Consumer Classifieds
Business 2 Enterprise Loyalty
Programs

Challenges Faced
Acquisition cost per Customer = Rs 200/Total ATL + BTL spends / No of transaction per
day
Average Ticket size = Rs 100/ Contribution margin per transaction = Rs 35/ Loss per Transaction = Rs 165/ Discounts
Cost of Shipping

1.Venture Capitalist
2.Private Equity
Investors

Promotion

Digital Marketing (online Promotion)

Offline Promotion
Advertising

PR activities

Andhra Pradesh Perspective

Top Categories who Advertise in AP

April 13 Nov 13

Apr 14 Nov 14

6% 2% 1%

6% 2%
Is-B2c & Online
Shopping

21%

10%

Is-B2c & Online

Shopping

Is-General
Is-Matrimonials
70%

Is-General

10%

Is-Matrimonials

Is-Properties/real
Estates
Is-Travel & Tourism

Is-Properties/real Estates
72%

Is-Travel & Tourism

B2C and online shopping are the categories who advertise most
in AP market.
Other (general) product categories has seen decrease.
Real Estate category has grown as compared to the year 2013.

Genre wise FCTs

consumption
Apr 14 Nov 14
April 13 Nov 13
9%

7%
17%

31%

3%

16%

GEC

GEC

Movies

Movies

Music
News

Music

36%

24%

Others
42%

News channels has consumed 42% of

the total FCTs burnt in Telugu market.
Other includes Gemini Comedy,
devotional & Lifestyle channels.

News
Others

14%

News channels has consumed 59%

of the total FCTs burnt in Telugu
market.
FCTs consumption in Music and
Movie genres have increased.

AP GEC FCTs consumption

April 13 Nov 13

April 14 Nov 14
1%
24%

24%

29%

Etv

Etv

37%

Gemini

Gemini
9%

37%

Maa

Maa

Z Telugu

Z Telugu

20%
18%

FCts consumption has increased on Zee Telugu & Gemini.

FCTs burnt on Maa Tv has decreased.
Maa Gold was not there in any of the plans in 2013.

Maa Gold

Genre wise revenue

(Tentative)

Gross Revenue Apr Nov

9564733.82
2013
10000000

Gross Revenue Apr Nov

2014
39194089

9000000

40000000

8000000

35000000

7000000

30000000
5170200

6000000
5000000
4000000

20000000

3351600

2000000

10000000

1000000

5000000

Gross Revenue Apr Nov 2013

Etv

Gemini

14166460
11060280

15000000

2257500

3000000

21931250

25000000

Maa

Z Telugu

49500

0
Etv

Gemini

Maa

Maa Gold

Z Telugu

Quikr & Redbus.in are the top 2 spenders in GEC genre in 2013
Snapdeal & Quikr are the top 2 spenders in the GEC genre in
2014

Top 5 Advertisers AP
Market
Year 2013
Client

Year 2014
Client

1. Naptol.com

1. OLX

2. OLX

2. Quikr

3.
Tolivelugu.com

3. Snapdeal.com

4. Redbus.in

4. Redbus.in

5.
Chekumuki.com

5. Flipkart.com

Conclusion

India is about to experience an Internet boom like the world hasnt seenwith more than
500 million people coming online over the next 3-4 years.
Ecommerce penetration among Indias connected population reached 65 percent, growing
at 15 percent annually
Indias ecommerce sector has been on fire as the consumers are enticed with heavy
discounts on Sale period and also on a daily basis to some extent.
E-commerce industry will soon convert in m-commerce in India.
Top five categories accessed online are social networking, search, travel, entertainment,
and news.
Among the BRIC nations, India has third fastest growing share in online retail, adding over
7 million internet users.

Threats
Telangana government is weighing options to levy value-added tax (VAT).

In AP market News channels(N7, T5 News, TV9 News & Etv Andhra Pradesh) are the most
preferred channels of the advertisers.

Google Trends