E-RETAIL MARKET IN INDIA “BATTLE FOR SURVIVAL”

GAURAV KUMAR

CONTENT

What is e-retail? E-retail sector in India. Growth in e-retail sector Benefits of e-retail Limitations of e-retail Pre-post scenario Challenges AMAZON vs. FLIPKART FLIPKART – where did it go wrong? Road ahead Solution & conclusion

WHAT IS E-RETAIL?

Sale of goods and services through the internet.

Includes B2B and B2C sales of product and services. Enables customers -

Firm's range of products and services.

View photos or images.

Information about the product specifications.

About the product features and prices.

E-RETAIL SECTOR IN INDIA

44%

28%

15%

13%

Market Shares

Flipkart

Snapdeal

Amazon

Others

50%

30%

8%

12%

Break-up – Product wise

Electronics & Appliances

Fashion

Books

Others

GROWTH IN E-RETAIL SECTOR

2013 2014 2015 2016 2017 2018 2019 2020 20210

10

20

30

40

50

60

70

80

Projected Indian e-retail market size (in billion dollar)

Years

BENEFITS OF E-RETAIL Markets are more accessible

Lower cost of processing, distribution,

and retrieving information

Provide access to a vast number of

products and services for 24x7

Deliver information, services and

products to people in cities and in rural

areas

LIMITATIONS OF E-RETAIL Lack of universally accepted security

standards

In India, telecommunication bandwidth is

often insufficient and web access is

expensive

Perceptions that e-retail is insecure

Unresolved legal issues

Lacks of critical mass of buyers and sellers

PRE-POST SCENARIO

Discussion with partner

Store 1

Store 2

Discussion with partner

Final Decision

Purchase

Discussion with partner

Flipkart

Amazon

Snapdeal

Discussion

with partner

POP UPPurchase

Website

CHALLENGES

Major Challeng

es

COD

INTERNET PENETRATION

PROBLAMATIC PAYMENT

GATEWAYS

POSTAL ADDRESS

OVERFUNDED COMPETITOR

SHIPMENT

RETURN RATE

FLIPKART – Where DID it go wrong?

Tried to be “Amazon of India”

Gross Market Value (GMV) and Discounting

High Cost Machine

Losing Focus

Some steps proved costly

Lure of the Market

CHALLENGES

Amazon’s $5 Billion challenge

Depleting market share

Massive expansion plans - $2 Billion to breakeven

Discount reduction

Devaluation

Beat competitor in terms of products and services.

ROAD AHEAD

Consolidate on existing customer

Mergers and acquisitions

Invite IPO

SOLUTIONs & CONCLUSION

Motivate customers to make online payment Collaboration with telecom companies Revision of the return policy Standardized format for entering address Invest in logistics and supply chain

Any Questions……..

THANK YOU