This document summarizes a presentation given by Sreeraman Thiagarajan on e-commerce in India. It discusses the growth of the Indian e-commerce market from 2012 to 2021 based on Technopak estimates. It outlines key factors driving online shopping adoption in India like time poverty in major cities and the proliferation of internet and smartphone usage. The presentation covers topics like the market scenario, consumer buying behaviors, opportunities for selling online through marketplaces, and how companies like Google can help drive e-commerce through tools like product listing ads. It also discusses emerging models like hybrid commerce leveraging local retailers and the potential of local language e-commerce.

1. Deep Dive Into
e-commerce
September 20th, 2014
at
MPSTME, NMIMS, Mumbai

2. @GBGmumbai
@sree_raman
@rajivPrakash
@singlaharish

3. What’s GBG?
Google Business Group (GBG) – Mumbai helps startups and entrepreneurs to use Web
Technologies and Digital Marketing for business success.

4. What We do?
• Workshops
• Seminars
• GDayX
• WoW Programs
Know more here http://gbgmumbai.org/events/

5. Best in the nation, 2nd in the world
(L to R. Sirish from GBG Belgaum, Aditi from GBG Jaipur and Sreeraman from GBG Mumbai
GBG Mumbai was awarded as the ‘Best Chapter’ In India by Google at the
‘Google Community Summit, Asia 2014’ held at Sri Lanka during the last week of August

6. Time to Dive Deep into e-commerce
Keynote by Sreeraman Thiagarajan, Chapter Manager, GBG Mumbai

7. What’s the biggest thing that
happened in last 48 hours that
makes Amazon a dwarf?

8. Alibaba finished the
day at $93.89, giving
the company a market
value of $231 billion,
larger than Procter &
Gamble Co

9. The Basics
e-Tail
E-tailing is a subset of
e-commerce that entails
the sale of product
merchandise
Does not include sale of
Services viz. railway
tickets, airlines tickets,
portals, etc.
e-Commerce
Encapsulates all
“commerce” conducted via
the Internet

10. The Market Scenario in India
e-Tail
2012: USD 0.6bn
2021: USD 76bn
e-Commerce
2012: USD 10bn
2021: USD 100bn
Source: Technopak

11. Lets talk some buyology

12. Money rich, time poor
Bangalore Mumbai
Delhi Chennai
Time poor citizens of India now buy everything from groceries, movie tickets, fashion goods, or bill pay
and utilities online to get that extra time which they can spend for personal reasons or leisure.

13. Lets thanks these guys
Habit is a very important in the process of buying. While BSNL and MTNL were the pioneers to provide
internet connectivity, Tax & Railway department has made people comfortable to use internet for
transacting

14. Travel related purchase is the most
common entry point for ecommerce
This group is likely to spend more than
2x the regular user
Source: Google, Nielsen study

15. This proliferation of Internet usage will
alter the manner in which such Internet-habituated
consumers will pick up trends,
form opinions, learn about new things,
and consume merchandise.
Source: Technopak

16. Shift in Internet-habituated consumers
E-mails
News
Travel
Social Media
Shopping
Gaming
Video Streaming
Application downloads
Mobile / Internet Banking
2010
2008
2012
Source: Technopak

17. Where are these people?
167mn
Active Internet User
Top 8 metros contribute
only 32%
Towns with less than 1mn
population contribute nearly 50%
Source: Technopak & Comscore

18. Who are these people?
60mn+
SEC A Segment
Over 60mn people from the
SEC A segment who form
the part of population with
highest buying power
Source: Rajan Anandan’s keynote talk

19. The Masses are not left behind too
The transition from feature phone to smartphone
40 mn
SP In 2012
600 mn
In 2020
380 mn
FP In 2012
450 mn
In 2020
Source: Technopak

20. Top 5 Motivations to Buy Online
• Fast Delivery
• Ability to pay COD
• Discounts
• Access to branded products
• Cash back guarantee on faulty goods
Source: Google, Nielsen study

21. Top 5 Factors Preventing to Buy Online
• Inability to touch
• Limitations in returning faulty goods
• Unwillingness to post personal or financial
information online
• Inability to bargain and get better deal
Source: Google, Nielsen study

22. How Can Google Help you?

23. Drive Based on Insights
To begin with, Use Google Trends to map what volume of search happens from a given location over
a time period. These insights will help in crafting your product/service offerings.

24. Drive Based on Insights
Trends result for search term ‘online shopping’ has largely come from the eastern sister states
in India, which are relatively smaller contributors to GDP and the reason for high search
volumes can be attributed to lack of branded stores and malls. Hence they make buy online.

25. Who is this guy and
why’s he important
for driving
ecommerce in India

26. Its Mobile all the way
• The big guys of Indian ecommerce
such as Makemytrip and Flipkart are
now driving consumer to try their
mobile apps.
• They even incentive to download
their apps
Images here show the grabs from their
TVC where prominence is given for the
mobile app

27. Driving the next 40mn smartphones in few months
• Sundar Pichai launched
Android One in India during
the 2nd week of September.
• Android One aims to
empower the common man
with the power of internet.
• The effects of this will be
increased ecommerce
transaction form mobile

28. Product Listing Ads
Know more here http://www.google.co.in/ads/innovations/productlistingads.html

29. What Next?

30. enable your store / service / business
Solve a problem for your customers
• If you are a brick and mortar store. At first level, enable your customers to buy from you
online and allow COD or online payment solutions.
• If you are starting new, try to solve a problem creatively and efficiently and customers will
love you and stay loyal with you.

31. Keep up with the way people buy…
See the demo from Google I/O 2014 on How Wearable will change the way customers
order online. Click here to watch http://youtu.be/s_LYIQwwQVQ?t=11m46s

32. @sree_raman
Thank you!
Continued…

33. eCommerce 2.0
Rajiv Prakash
@rajivprakash

34. 34
3
4
Quo Vadis –
Where is eCommerce headed?
Photo credit: REUTERS/ K. K.
Arora

35. A caveat
“Whatever you can say
about India or eCommerce,
the opposite is also true.”

36. 5 thoughts about eCommerce 2.0
1. Marketplace First
2. Hybrid Commerce: your neighbourhood kiranawalla
eCommercewalla
3. Apni Basha: localisation
4. Rural (e)Commerce: how to get to Sangrampur,
Buldhana
5. Content, Community and Commerce: a new trinity
Disclaimer: Next In works with some of the companies covered in this
presentation, namely,
Reverie, iPay, Martjack, Find Me A Shoe and in3Access.

37. Image credit: JonahKessel.com
3
7
India is now a Marketplace
First eCommerce market
Regulations
Selection
&Sellers
Customers –
Search &
Transactions
Capital

38. Implications for Sellers (Retailers and Brands)
• Sell on multiple marketplaces
• Management of multisite operations and inventory
• Customer Service - marketplace ratings and reviews
• Price comparison and transparency
• Online only brands
• Need for myownwebsite.com, search marketing?

39. Feeding off a marketplace transaction
Sale
Price
Marketplace
Commissio
Seller
Payment - =
n
Customer
Acquisition
Cost - Affiliate
Commission,
Price Subsidy
Payment
Gateway
Fulfillment
Warehousi
ng
Operations
Cost Price

40. Marketplace First ecosystem – a possible
scenario
Market
places
Online only
brands
Retailers
Distributors
Freelance
sellers
Brands
Marketplace
Selling Services
Marketplace
Retailers
Marketplace
Selling
Technology
Platforms
Warehousing &
Order
Processing
Content Creation
Hybrid Channels
Catalogue
Aggregators
Couponing
Comparison
Shopping
Search
Ad Networks,
Retargeting,
Email, Social
selling, etc
Online Customer
Service
Technology Plug-Ins for
Marketplaces – Fit, Localisation,
LookBooks, Online Chat,
Analytics
Events
Training &
Certification
Seller
Management
Systems
Logistics
Logistics
Payment Gateway and collection
Services
Customers
–
B2C&B2B
Marketplace Sellers
Marketplace Seller Support System
Marketplace Support System &
Channels

41. Opportunities along the consumer shopping journey
Discover Consume
Learn /
Research
Buy Collect
Comparison Shopping
Reviews
Marketplaces
Hybrid Channels
Hybrid Channels Reviews
Customer Service
Coupons
Social engagement
Affiliate Sites
Content –
Community –
Commerce
Models Content –
Community –
Commerce
Models
Payments

42. Hybrid Commerce – your friendly neighbourhood
eCommercewallah

43. Tapping into the field entrepreneur network
• General Trade accounts for over 80% of retail – 10 million + field
stores – kiranas and others
• Current culture – people buy from people. Drivers – trust, access,
knowledge and convenience
• Proven model in airtime sales.
• Tablet based sales model. Potentially, download an app and get
started.
• Issue – IP based Affiliate commission model. Should one own the
buy side too?
• Examples: Big Bazaar Direct, iPay, eDabba, Walmart Cash n Carry
and Unilever - Peelworks

44. Apni Basha – The Indian Language Opportunity
Spot the local language user

45. Background
• 90% of Indian literate population (over 700 million) are non-English
users
• 11 languages cover over 90% of Indian population
• 9 out of top 10 Indian newspapers = Indian language publications
• 70% of TV viewerships = Indian language channels
• By 2020, what % of internet users will be Indian language users?
• And for them, the mobile will be the first and only personal
computing device.
• Myth: Local language is a bottom of the pyramid opportunity

46. Local language business awareness and user adoption in
digital domain is growing
• 100 million smartphones to be sold in 2014-15 : by Q4, over 60%
will have local language support – rendering of local languages and
Indian language input keypad (source – Reverie).
• Reverie powered Micromax Unite 2 – Indian language phone. 1
million sold in 3 months. Fastest for Micromax
• NewsHunt – 7 million + monthly users, approaching 100 million user
base
• Opportunities: Affiliate eCommerce Sites in Local languages eg
Running Flipkart Tamil as a service, Localisation Services to
eCommerce companies, local language versions of all popular
eCommerce utilities.

47. Rural Commerce – going beyond Mere Desh Ki Dharti
Is this the rural market?

48. Opportunity Landscape : filling the media – market gap
- Majority of Indians live in semi-urban and rural areas
- 100,000+ pincodes: India Post
- Media reaches most of these pincodes but markets don't
- 30,000+ pincodes by courier firms
- Rural people are not an alien customer segment. Similar to urban
customers, they too are highly aspirational, have high levels of
disposable income and are increasingly brand conscious
- Problems – Mindset, Reach and Sales Channel
- Example in3access: Selling products through Post Offices and
MFIs/NGOs – 1 million orders in 2013-14.

49. The new trinity - Content, Community and Commerce
Source : Mary Meeker, Internet Trends, KPCB 2014

50. Houzz.com – best examples of CCC
Source : Mary
Meeker,
Internet
Trends, 2014,
KPCB

51. Indian environment
• Strong appetite from brands to use a CCC approach to eCommerce
: combines marketing and commerce. Eg Godrej Nature Basket
• Pioneers and startups: JJ Mehta & Co, Stylecraze and Urbanhomez

52. Other trends
• Return of Enteprise/offline eCommerce projects : Brands and
Retailers
• Affiliate Based Models – Sweet Couch, AllMemoirs, etc
• Solving a difficult technical problem: Find Me A Shoe
• Getting Offline to Online in non-traditional and unorganised sector -
EatAds: Marketplace for Outdoor Advertising.
• Export and import eCommerce
• Made to Order eCommerce (Shoes of Prey)

53. eCommerce 2.0
Rajiv Prakash
@rajivprakash
Continued…

54. Online
Marketplaces
By @singlaHarish

55. Online Marketplace Opportunity
Online Sales Opportunity
Own ecommerce Site
B2B Selling – Indiamart,
Justdial, Classified
Listing
Online Marketplaces
Short-term – 3 to 9
Months
Instant Brand
Recognition
Smaller Sales Initially
Long-term - > 9-12
months
Decent Incremental
Sales
Branding
Supports Off-line Sales

56. Marketplace – The Right Place to be…
Ancient
Mandies
Market
s
Baza
ars
Shopping
Malls
Online
Marketplaces

57. An Online Marketplace
“An online marketplace (or online e-commerce
marketplace) is a type of e-commerce site where
product and inventory information is provided by
multiple third parties, whereas transactions are
processed by the marketplace operator.”
“In an online marketplace, consumer transactions
are processed by the marketplace operator and
then delivered and fulfilled by the participating
retailers or wholesalers (often called drop
shipping).”

58. Stages - Selling on Online Marketplaces
Tie – up with
Marketplaces
•Product Selection
•Agreement
•Negotiate
Commercials
Product
Display
•Photo-shoot
•Cataloging –
Content Writing
•Upload on various
Marketplaces
Warehousing
•Warehousing as
separate inventory
for online
•Actual Time
Inventory Update
Order
Management
•Downloading
Orders – Manually
or software
•Pick, Pack,
Invoice, Label,
Manifest, Dispatch
After Sales
•COD Returns
Management
•Customer Service
•Maintaining Good
Ratings
Payments
•Reconcile
Payments at single
transaction level
•Raise dispute (if
any)

59. Critical Success Factors – Online Marketplaces
Product
Display
Picture
Quality of
Product
No. of
Pictures – Diff
Angles
Display in
Actual Use
Content
Written about
the product
Price Competitive
Pricing
Customer
Discount
Participate in
discount
campaigns
No. of
Options
No. of unique
products
With full range
– Color, Sizes
etc.
Big Catalog
Big Sales
Inventory
Items stocked
as separate
inventory
Stock sync
frequency
No
Compromise
Factors
Dispatch
within 24
Hours
No Order
Cancellation /
Wrong
Product
Follow
Packaging
Guidelines
Invoice,
Label, Tape
etc.
Instant
Response to
Customer
query
Seller Score / Rating – Best in Class

60. Revenue and Charges
How
marketplaces
charge its
sellers
Realistically
how much
sales one
can expect

61. How Marketplaces charge – An Example: - Selling Jeans
Net Credit
• Credit after Charges
and Taxes
• Rs.799 – 202 – 40 =
Rs.557/-
Taxes
• VAT - @5% or
Rs.40/-
• Total Charges
including VAT
Rs.242/- or 30%
Marketplac
e Charges -
FK
• Fees 15% - Rs.120/-
• Courier Charges –
Rs.50/-
• Fixed Fees – Rs.10/-
• Service Tax on All
Charges – 12.26%
Rs. 22/-
• Total: Rs.202/- or
~25%
MRP
• Rs.799/-

62. Economics of Start Selling Online Marketplaces
Manpower
Cost –
2 of Rs.20k
p.m. each
Computer /
Software to
Download
Orders –
Rs.10k p.m.
Admin /
Sitting Cost
Rs.5-7k
p.m. Each
• To Break-even for Rs.1 Lac cost, sales
required Rs. 5 lacs/500 orders p.m. @20%
margin
• >500 orders – You may need more employee
• Hence total cost for selling online goes
30%+20% = 50%+
• Hence Better Outsource to Expert
eDistributors
Your own
Time 30%
Cost –
Rs.30k p.m.
Total Cost
for selling
online
Approx. Rs.
1 Lac p.m.
You can not get manpower
at lesser cost as employees
who know this business are
not at all available. Job
Catalog, Upload,
Campaign, A/c Mgrs.
Follow-up, Dispatch,
Inventory etc.
Software needed to
download/tract orders,
Inventory sync,
computer systems etc.
available at p.m. basis –
otherwise huge capital
expenditure
Depending upon
location there is real-estate
cost / rental for
making one employee
sitting + other admin
expenses
Director’s / Owner’s own time is
expensive. As he/she spends
same time on core business,
might get better returns. Hence
this is huge cost to tally
payments, campaigning,
Promotions, talking to account
managers etc.

63. Success Stories & Learnings
 Few Successes
 Denim Brand
• New business, not interested in online, Low price Jeans for Men MRP Rs.899/- onwards
• Listed a year back, regular sales from day 1, Presence on Top 10 Portals
• Success: - Today 4-5 lacs per month, Launched Women Denim, Jackets, 3/4s on our request
– No Discount given so far, Always good stock, Display Good, Price OK
 Salwar Suits Manufacturer
• Small manufacturer of Women Ethnic wear, Wanting more sales, MRP Rs.2000-5000/-
• Listed a year back, Sales went up and down, Presence on all portals, Regular Sales
• Success: - Today sales Rs. 5+ Lacs online contribute 25% of his total sales, Launched low
price Kurties, Unstiched Suits, Kids wear etc. on our advise, Mantra – Good Quality at
reasonable price, Awesome display, Stock depth etc.
 Few Learnings
 Linen Shirts’ Brand
• Established Manufacturer, New product line, Non-basic product, Price 1800/- onwards, Slim-fit
only
• Listed on major portals, few rejected due to price equivalent to Zodiac, Nice photo-shoot &
content
• Failure: - High price, Slim-fit of a product meant for 35+ age, quality issues, Target segment
confusion, sold just 30 pcs in 3 months, no same day shipping, no discount offered..

64. BluBox.in Model (www.Reitindia.in)
Tie – up with
Marketplaces
• Product Selection
• Agreement
• Negotiate
Commercials
Product
Display
• Photo-shoot
• Cataloging –
Content Writing
• Upload on various
Marketplaces
BluBox.in
Warehousing
• Warehousing as
separate
inventory for
online
• Actual Time
Inventory Update
Order
Management
• Downloading
Orders –
Manually or
software
• Pick, Pack,
Invoice, Label,
Manifest,
Dispatch
After Sales
• COD Returns
Management
• Customer Service
• Maintaining Good
Ratings
Payments
• Reconcile
Payments at
single transaction
level
• Raise dispute (if
any)
BluBox.in Provides Single
Window Service
Brand 1
Brand 2
Brand 22
Brand 99
Flipkart
Snapdeal
Amazon
Ebay
C
U
S
T
O
M
E
R
S
No need to
tie-up
separately
with each
portal
Single
Payment
cycle
End 2 End
service
Provided by
BluBox.in
Still your
own brand
name is
displayed
Model
Making Online Selling
Easy
Simple
sales and
inventory
back-end
panel

65. Thank you
You may reach me:
 Harish@reitindia.in
 9321779010
Continued…

66. Lightning Pitch by

67. What comes to your Mind
when you have to
Buy or Sell used stuff Online
or
Find a Flat-mate
or
Search Services?
Various Online Classified
Apps / Websites

68. IN THE NEWS

70. What IF
You do not have to worry much about the trustworthiness of the Seller.
Some of Your friends are looking for stuff which you are selling
or
Some of your friends are selling what you are looking for
You can help your friend who is in need of something which you don’t need
anymore.

71. Here
comes
India’s First
Social Classified
Website

72. Search what your
friends are selling
Sort Ads based on Trust
Factor
Follow people and get
notified about their
Deals

73. .
Trust Factor
We have developed an Algorithm which gives a rating to each Ad
based on certain parameters.
We call it TRUST FACTOR.
Some of the Parameters are:
Facebook
Friend Mutual
Friends
Photos
Posted
Spams
Reported
Followers’
Count
Data
Filled

74. Connect
https://www.facebook.com/trusty
deal
https://www.twitter.com/TrustyDe
al
http://www.pinterest.com/trustydeal
pin
https://plus.google.com/+Trustydeal
trustydealwebsite@gmail.com

75. Deep Dive Into
e-commerce
Join GBG Mumbai at
http://gbgmumbai.org/join-gbg-mumbai/