The E-Commerce Market
Autor: chandan pathak • November 6, 2015 • Term Paper • 3,018 Words (13 Pages) • 748 Views
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Contents
Introduction: The E-commerce market
Market Scenario: India
Drivers of Growth
Key Drivers of Industry
PESTEL Analysis
Government regulations
Business model
Barriers to entry
Lifestyle as a segment
The acquisition of Myntra
Conclusion: The road ahead
Which category to pursue? - A Game Theory Model
References:
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). E-Travel is the most popular form of E-Commerce, followed by E-Tail which essentially means selling of retail goods on the internet conducted by the B2C category. E-commerce provides multiple benefits to the consumers in form of availability of goods at lower cost, wider choice and saves time. Also, online services such as banking, ticketing (including airlines, bus, railways), bill payments, hotel booking, entertainment, groceries etc. have been of tremendous benefit for the customers.
Market Scenario: India
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Drivers of Growth
- Increasing internet penetration:
Although the internet penetration is around 19%, the total internet users in India is around 243 million (only 36 million less than US). Because of high population, there is a lot of untapped market which signifies potential and thus, growth.
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- Demographic Profile: [pic 5] [pic 6]
- Growing Living standards
- Availability of much wider product range and ease of use
- Busy lifestyles and lack of time for offline shopping
Competition & Emerging Market Trends
The market share analysis of E-commerce companies by Morgan Stanley has put Flipkart on top with 44% followed by Snapdeal at 32%. Amazon which had a later entry to the India market has a market share of around 15%. The break-up of the e-commerce market shows that Electronics & other appliances along with fashion & lifestyle are the major contributors to the market share.
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