ecommerce on india mart

27
UNIVERSITY OF LUCKNOW DEPARTMENT OF BUSINESS ADMINISTRATION PROJECT ON INDIA MART SUBMITTED TO: MR. HAIDER ALI SUBMITTED BY: ANSHU SONKAR MBA(e-B) III SEM

Upload: amit5599

Post on 10-Apr-2018

223 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 1/27

UNIVERSITY OF LUCKNOW

DEPARTMENT OF BUSINESS ADMINISTRATION

PROJECT

ON

INDIA MART

SUBMITTED TO:

MR. HAIDER ALI  SUBMITTED BY:

ANSHU SONKAR

MBA(e-B) III SEM

Page 2: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 2/27

 

ACKNOWLEDGEMENT

This project has been made possible through the direct and indirect

cooperation of various persons for whom I wish to my gratitude and

appreciation .

I am thankful to my teacher MR.HAIDER ALI for guiding me.

I am heartily thankful to all of them without whom this report would

have not been successful.

VIKAS KUMAR YADAV

MBA (e-B) III SEM

Page 3: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 3/27

 

Introduction

IndiaMART.com is a B2B marketplace that assists buyers and sellers trade with eachother at a reliable, common platform.

India's largest B2B marketplace, since1996

Buyers initiate 500,000+ RFQs/enquiries every month

Recognized by CNBC & BBC for its contribution toIndian suppliers

700,000+ suppliers, for 20,000+ product categories

Developing market entry strategy 

.Envisaging and Developing a Market Entry Strategy 

  After deciding to plunge in the Indian Market it is required to plan carefully for succeeding in the long run. Some areas need special attention:

Configuring the project includes: 

Determining the exact costs involved and side by side analysing  future options. Choosing the best location for the project in terms of infrastructure, incentives, nearnessto resources etc.

Page 4: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 4/27

 Partnership Deciding whether to take on an Indian joint venture partner or to establish a mainly-owned or wholly-owned subsidiary.

I ndian market  Developing an understanding of the peculiarities of the Indian market is necessary, sothat issues which come up can be effectively and timely tackled with few surprisesLabor laws Understanding legal compliance requirements which must be met once entry iseffected, viz. corporate laws, labor laws, direct and indirect tax issues, etc.

Safty valve However, the government has softened its stand on the need for each investment tocreate jobs directly. Many companies ² foreign and domestic ² are bypassing thetough regulations by either subcontracting labor or through early retirement schemes.

Planning exit options in case the project does not proceed as desired. A ship should

essentially carry lifeboats!

Investment Mode -- Financial ParticipationIndia's economic policies are designed to attract capital inflows into India on a sustainedbasis. Policy initiatives adopted in recent years include:

y   Automatic approval for majority foreign equity participation up to 74% in certainkey areas, and up to 51% or 50% in several others.

y  Up to100% foreign equity permitted in many industries.y 

y  Free repatriation of profits and capital investment.y  It is not necessary for foreign investors to have a local partner.

Deciding the Target Market Will the products be sold strictly in the Indian market, or primarily exported from India toother countries? If most of the product is to be exported, then there are various methodsof availing of tax advantages.

I ncentives to investors Investors setting up units to manufacture goods for export can set them up as EPZs, or 100% EOUs outside EPZs. 100% foreign equity is welcome in both. Export earnings areexempt from income tax.

Page 5: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 5/27

E   xport Promotion Zones The EPZs are designed to provide an internationally competitive duty-free environmentat low cost for export production. Each zone provides basic infrastructure and facilitieslike developed land, standard-design factory buildings, roads, power, water supply anddrainage, and customs clearance facilities.

E   xport Oriented Units EOUs offer a wider option in project location with reference to sourcing of raw materials,port of export, availability of technological skills, presence of an industrial base and theneed for a larger area of land.

EHT P' sand S T P's  Additional incentives are offered for electronics and software units set up in ElectronicHardware Technology Parks (EHTPs) and Software Technology Parks (STPs).

T ype of Office Overseas companies which do not opt to set up a subsidiary or form a joint venture withan Indian partner can establish the following types of offices:

y  Branch office for the purpose of:

1. representing the parent company or other foreign companies, like acting asbuying/selling agents;

2. conducting research, provided the results of the research are made available to

Indian companies;3. undertaking export/import activities;4. providing technical and financial collaborations between Indian and foreign

companies.

y  Representative/liaison office which would not be directly engaged in commercialactivities in India.

Foreign companies usually open representative/ liaison offices but they are notallowed to carry on any business or earn any income in India and all expenses are to beborne by remittances from abroad.

y  Project office to undertake projects in India awarded to the parent company.

 A   project office is the ideal method to establish a business presence for a limited

period of time.

Page 6: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 6/27

 

Venturing in Indian Market 

I nvestment in I ndian market  

India, among the European investors, is believed to be a good investment 

despite political uncertainty, bureaucratic hassles, shortages of power and

infrastructural deficiencies. India presents a vast potential for overseas investment and

is actively encouraging the entrance of foreign players into the market. No company, of 

any size, aspiring to be a global player can, for long ignore this country which is

expected to become one of the top three emerging economies.

Success

Success in India will depend on the correct estimation of the country's potential,

underestimation of its complexity or overestimation of its possibilities can lead to failure.While calculating, due consideration should be given to the factor of the inherent

difficulties and uncertainties of functioning in the Indian system.Entering India's

marketplace requires a well-designed plan backed by serious thought and careful

research. For those who take the time and look to India as an opportunity for long-term

growth, not short-term profit- the trip will be well worth the effort.

Market potential  

India is the fifth largest economy in the world (ranking above France, Italy, the United

Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is

also the second largest among emerging nations. (These indicators are based on

purchasing power parity.) India is also one of the few markets in the world which offers

high prospects for growth and earning potential in practically all areas of business.Yet,

despite the practically unlimited possibilities in India for overseas businesses, the

world's most populous democracy has, until fairly recently, failed to get the kind of 

enthusiastic attention generated by other emerging economies such as China.

Lack of enthusiasm among investors 

The reason being, after independence from Britain 50 years ago, India developed a

highly protected, semi-socialist autarkic economy. Structural and bureaucraticimpediments were vigorously fostered, along with a distrust of foreign business. Even

as today the climate in India has seen a seachange, smashing barriers and actively

seeking foreign investment, many companies still see it as a difficult market. India is

rightfully quoted to be an incomparable country and is both frustrating and challenging

at the same time. Foreign investors should be prepared to take India as it is with all of 

its difficulties, contradictions and challenges.

Page 7: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 7/27

 

Developing a basic understanding or potential of the I ndian market, envisaging 

and developing a Market E ntry Strategy and implementing these strategies when

actually entering the market are three basic steps to make a successful entry intoI ndia.

Indian Market Potential

Developing a basic understanding or potential of the I ndian market  

The Indian middle class is large and growing; wages are low; many workers are well

educated and speak English; investors are optimistic and local stocks are up; despite

political turmoil, the country presses on with economic reforms.But there is still cause

for worries-

I nfrastructural hassles 

The rapid economic growth of the last few years has put heavy stress on India's

infrastructural facilities. The projections of further expansion in key areas could snap the

already strained lines of transportation unless massive programs of expansion and

modernization are put in place. Problems include power demand shortfall, port traffic

capacity mismatch, poor road conditions (only half of the country's roads are surfaced),

low telephone penetration (1.4% of population).

I ndian Bureaucracy  

  Although the Indian government is well aware of the need for reform and is pushing

ahead in this area, business still has to deal with an inefficient and sometimes still slow-

moving bureaucracy.

Diverse Market  

The Indian market is widely diverse. The country has 17 official languages, 6 major 

religions, and ethnic diversity as wide as all of Europe. Thus, tastes and preferences

differ greatly among sections of consumers.

Therefore, it is advisable to develop a good understanding of the Indian market andoverall economy before taking the plunge. Research firms in India can provide the

information to determine how, when and where to enter the market. There are also

companies which can guide the foreign firm through the entry process from beginning to

end --performing the requisite research, assisting with configuration of the project,

helping develop Indian partners and financing, finding the land or ready premises, and

pushing through the paperwork

Page 8: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 8/27

 

Corporate Websites BY assist corporates tointeract with theircustomers, keep thestakeholders updatedand augment theirbrand identity on theweb.

Dynamic Product Catalogs Working with customers fromdifferent industries helped develop amulti-feature product that makesonline product management easy.

B2B Product Catalogs Designed for the SMEsegment, it offersglobal exposure tomanufacturers,suppliers & serviceproviders to enhancetheir sales.

Mini Dynamic Catalog Customers can publish their onlinecatalog, with total command over theproduct details, company information,navigation and almost everything.

E-commerce Solution BY offer technical skills& tools alongwith goodbusiness processknowledge for onlinecommerce setup,whether B2B or retail.

Multimedia CD Presentation IT understand global buyer'sinformation needs & behaviourcoupled with expertise incommunicating the right message tothem.

Customized Solutions THEY are geared toadapt to ourcustomers' uniquedemands and offercustomized solutions

Page 9: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 9/27

with equal ease.

Corporate Websites 

Corporates need to interact with their customers, have to keep the

stakeholders updated, create and maintain a brand identity and project

various aspects of business. Internet based communication & marketing is

today an integral part of their strategic marketing & communication plan and

therefore it needs a different treatment than a simple website for a business.

india mart assist their corporate customers in realizing their business

enhancement goals through their experienced, multi-discipline teams and a

comprehensive set of services, all under one roof. Unlike most cases where

different components required for corporate websites are sourced from

different companies, our customers find it convenient in dealing with a single

entity for everything.

india mart take into account individual needs and offer assistance in

planning & implementing online marketing strategy. Each customer is

assigned a project manager, with a team of proficient website designers,

programmers, content writers and web marketing professionals. india mart

also undertake the task of web promotion and ensure online visibility.

With india mart experience in managing complex and multi-discipline

corporate website projects, india mart ensure better results for customers

with least hassles

B2B Product Catalogs 

Manufacturers, exporters, suppliers and service providers from the SMEsegment need domestic & international exposure to enhance their sales. Astatic b2b product catalog is an ideal first step for them for global presence.

Page 10: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 10/27

Our b2b product catalogs are fully managed, including designing, contentediting, hosting, strategic web promotion and its annual maintenance.

It is a cost effective tool that reduces time and costs involved in reaching outto a prospective buyer. An online b2b product catalog is not just a showcase

of the company and its products, but also a great marketing tool to enhancerevenue generation as it caters to the scattered domestic market as well asthe international market.

E-commerce Solution 

An online buying process, B2B or retail, would never be complete without e-commerce deployment. Though the most common form of online shopping isreflected in retailing of goods and services, our e-commerce solution issuitable for the B2B segment (for negotiated prices, bulk deals, sampleexchange)

For an e-commerce setup, businesses usually approach different serviceproviders to consolidate all components required. india mart make it easierfor customers by offering fully-managed, consolidated e-commercesolutions.

Any e-commerce deployment requires three basic things; an onlinecatalogue, a shopping cart and a payment gateway. We offer all three underone roof. We have our own payment gateway "ABCpayments.com" toprovide single point solution to our customers.

Dynamic Product Catalogs

Working with customers from different industries helped develop a multi-feature dynamic product catalog that makes online product managementextremely easy.

Some companies change their product catalogs frequently as their productdesigns change fast or they have new products to offer. The cost of updating& sending the updated static/printed catalogs in such cases is very high. Adynamic product catalog, is a cost-effective innovative solution that allows acompany to develop/update its online product catalog with full control overits product navigation and product information.

india mart dynamic product catalog offers following features :

y  Display management system that allows personalized design andpresentation of the catalog. This involves development of a homepage,

Page 11: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 11/27

profile page, enquiry form, static information pages and productpresentation layout, based on which the product catalog is displayed.

y  Product management system that allows clients to update and displayproducts and details. It allows adding or editing product and product

details, and upload the changes.

y  Enquiry basket that allows visitors to select multiple products & add tothe virtual cart to send a consolidated order / enquiry and request aquote for the same.

It is a system that replicates the physical catalog and at the convenience of 

time and location.

Mini Dynamic Catalog 

Mini dynamic catalog is a value-for-money solution from IndiaMART that

allows its customers to publish their online business homepage, with total

command over the product details, company information, navigation and

almost everything related to it. It allows them to:

y  Add / Edit / Delete text and images related to company profile,infrastructure, quality, clients, certifications

y  Add / Edit / Delete a product, its images and details and categorize asper wish

y  Add / Edit / Delete blow-ups for productsy  Attach product related document for enhanced / sophisticated details

y  Customize enquiry form

Advantages Over Traditional Webpage 

y  Multi-page Catalog - Unlike conventional webpage, it offers 4 pages inone catalog. Homepage, Profile Page, Product Page an Enquiry/ContactPage - all of them having the facility for information add, edit & delete.Customers, therefore, have more space to convey every importantdetail required to market their product and company globally.

y  Short Development Period - Under test situations, our researchershave found that the time required for webpage development can beshortened by over 70%. If it took 10 days to develop a webpage, ittakes just 3 days to develop a mini dynamic catalog. Save time spenton corrections and approvals.

Page 12: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 12/27

y  Customized Industry-wise Layouts - Enjoy the convenience of industry-specific layouts that are well-researched and followinternational guidelines that affect the marketability of online catalog.

y  Update as Per Convenience - No more "Monday - Friday, 9 - 5"

service... Change to 'anytime anywhere' lifestyle... With the catalogunder control, one can update it whenever and from wherever theywant

y  Multi-pronged Product Marketing - The Mini Dynamic Catalog allowsdisplay of products on multiple marketplaces of IndiaMART network to

offer advantages of multi-pronged product marketing, free of cost.

Multimedia CD Presentation 

Interactive presentation about an organization or its products is amongst thebest ways to garner attention of prospective buyers and customers. Withincreasing competition, suppliers recognize the value of positioningthemselves ahead of their competitors. Multimedia CD presentations are anideal way to achieve the same.

india mart team¶s expertise in delivering business enhancement soutionsgives an edge while we develop multimedia CD presentations for ourcustomers. india mart assist their customers through planning, designingand content management to create and impressive and engagingpresentation. Our customers would commonly use these CD presentationsfor trade shows and exhibitions, buyer presentations, product catalog or asgive away reference material.

Multimedia CD presentations are not just convenient means of presentations, they are handy, have a longer shelf life and can easily relateto the company's brand image. We undertake these projects on turnkeybasis, including cover design, printing, CD writing and packaging

Customized Solutions 

Some of india mart customers have specific requirements that cannot be

Page 13: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 13/27

served with our standard solutions. Their requirements are highly specific to

their business and are unique in nature. Such requirements need special

inputs and custom solution development. For such instances india mart

customize their solutions or even create new ones, if need be.

india mart have been able to use our expertise in business enhancement

combined with expertise in areas like IT, content editing, designing and

online marketing to successfully implement customized solutions for our

customers. 

We offer "fully managed" mailing solutions that encompass management of mailing system, online virus blocking & spam protection and streamlining of business communication process

Emails have become an integral & critical part of every organization¶sexternal as well as internal communication system. Organizations arefinding it extremely difficult to fulfill their need for secure, reliable & multi-discipline mailing from basic facilities offered by ISP and Web-basedservices.

india mart solutions are aimed reducing communication costs apart fromoffering a secure and reliable communication solution. experienced inserving mail users across small, medium & large enterprises and havedeveloped the most inexpensive email management system, with flexibleutilities.it offer the best telephonic and online support to customers as andwhen required.

Enterprise Mailing Solution 

"Fully-managed" enterprise mailingsolutions are aimed at offeringhassle free mail management formedium and large enterprises.

Lead Management System 

A web-based, easy-to-use tool forstructured business communicationmanagement, it comes with power-packed smart reporting features.

POP A/c's with Webmail Online anti-spam & anti-virus

Page 14: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 14/27

 

Enterprise Mailing Solution 

It is an established fact that almost 80% of the virus attacks are through e-

mails and over 60% of the mails are spam. Imagine what havoc a virus

attack can cause to an enterprise where each individual is handling crucial

data. Add to it the work hinderance due to heavy spam and server

downtime. With our experience and technical skills, we have developed an

enterprise mailing solution that skillfully tackles these issues. This system

can work with your existing mailing system as well, with advanced features.

Apart from ensuring 99% uptime for the mail servers, we also power our

managed enterprise mailing solution with online virus scanner & spam

controller that enables users to work more efficiently. We offer managed

mail servers for companies with large setup and heavy mail traffic, that are

secure, maintain privacy & confidentiality and are able to handle as many

users as an enterprise may have.

india mart managed mail server solution also allows all internal users to

communicate over LAN with other cost-effective features like Auto Dialing,

Address Mappings, Auto Reply, Forwarding, Mailing lists etc. Our solution

also lets our customers retain control over certain functions, e.g. creating a

new user or maintaining mailing lists etc., giving sufficient independence to

them.

POP A/c'swith Webmail 

POP accounts with webmail are a perfect solution for people constantly on

move. Our pop a/c's with webmail service allows the users to check mailfrom anywhere, using e-mail programs such as Eudora or Outlook. All you

need is a computer and access to the internet.

Apart from the standard features, our pop acounts are powered with online

virus and spam protection software that enables the user to work more

efficiently. Some of the other features of pop acconts are:

enabled roaming POP a/c's withwebmail offers peace of mind tobusiness users.

Page 15: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 15/27

y  Multi featured webmail interface, accessible worldwide.y  Regular technical support

y  99.9% uptime

Lead Management System 

It offering business enhancement solutions for generating high quality

business enquiries. To ensure that suppliers have higher conversion rates,

we have developed an effective lead management system (LMS).

The LMS automatically organizes all incoming mails and maintains a

threaded history of the entire communication. The users have the facility to

set the schedule for follow-up. They can compose mails with pre-defined

content and use it for regular responses. The users can also feed offline

leads received from any other source like phone etc. and maintain acomplete history of communication.

LMS also generates useful MIS reports that assist individual users to

measure the effectiveness of their responses and gives the administrator a

complete overview of what is happening at the lead management front in

the organization 

"Smart Solutions for Business Promotion" is the guiding factor for our R&Dand solution innovation. Our approach to customer satisfaction is basedfirmly on our belief that we offer complete solutions vis-a-vis stand-aloneservices.

Solutions

Business Enhancement

Mailing & Communication

B2B Marketplace Services

Business Enhancement Our business enhancement solutionsassist our customers in enhancing theirsales, brand/product promotion or both.

Mailing & Communication 

Page 16: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 16/27

 

Offerings

We offer "fully managed" solutions thatencompass management of mailingsystem and protection against viruses & spam.

B2B  Marketplace Services IIL owns and maintains India's firstinteractive and largest B2B marketplace- IndiaMART.com and over 50 industryspecific B2B marketplaces.

Page 17: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 17/27

 

Service Directory

 Advertising   Architectural Services   Astrology & VaastuServices Business Services Educational & TrainingInstitutes 

Embassies &Consulates HR Consultants Household & HospitalServices Manufacturing &Repair  Real Estate 

Research &development Trade promotion Transportation &Shipping Travel & Toursim 

Expansion plans

Suppliers Directory

  Apparel &Fashion 

  Arts & Crafts 

 Automobile   Ayurvedic &Herbal Products Bicycles &Rickshaws Building &Construction Computer  Cosmetics Dyes &Chemicals 

Electronics &Electrical Food &Beverages FurnitureManufacturers 

Gems & Jewelry Hand & MachineTools 

Home Supplies Home Textiles &Furnishings IndustrialSupplies Leather Products Medical Products Metals &Minerals MusicalInstruments 

Natural Stones Office Supplies PackagingSupplies 

Paper & paper Products Plant &

Machinery Plastic & PlasticProducts Printing &Publishing Railway,Shipping &

 Aviation Rubber &Rubber Products Scientific

Instruments &Supplies Sporting Goods,Toys & Games TelecomProducts Textile, Yarn &Fabrics 

Page 18: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 18/27

There are 2-3 things:THEY have started to utilize database of SMEs (Small and MediumEnterprises) to expand offerings. BY participate in almost 150 trade fairs across the world - half of them in India, half outside - and end up spending almost a million dollars per year on that. Tostrengthen buyer relationships and came out with a sourcing guide or a buyers guide, which listsour clients, and has additional advertising for revenues. That also brings buyers back to

IndiaMart.com as a platform for updated information. Most of the big companies in space have been print Yellow Pages initiatives that have gone to the Internet. For going to Print is a buyer acquisition strategy, and there can be other media like mobile and Interactive TV going forward.

The other is a geographical expansion - by cover about 60-100 cities from 25 offices acrossindia, and want to penetrate deeper and broader into Indian territories, going into Tier 2 and Tier 3 cities as well.and might even look at international opportunities.

Business model

Earlier in January, online B2B marketplace IndiaMart raised an undisclosed amount of money 

from Intel Capital: a total of $23 Million was invested in IndiaMart, One97 Communications andGlobal Talent Track. Founded in 1996, Indiamart claims to have over 15,000 clients, with officesin 26 cities, covering 100 towns in India. In 2007-08, they reached $10 million in revenues, andthe company claims to be cashflow positive.

In Part 1 of a conversation with MediaNama, Dinesh Agarwal, CEO of IndiaMart told us whatmade him think about raising money, why Intel Capital, and whether Intel Capital went in for adown-round. Excerpts from the discussion:

. IndiaMart has been a profitable company since day one. THEY have been growing consistentlyover the years, whether it was a downturn or not, within a range of anywhere between 30-40% to

65-70%. If you just compute the basic CAGR it is approximately 40-60% CAGR per year over many years. But those were times when our total revenue base itself was at a smaller size. I don¶tthink that many businesses were adept at using the Internet at a very large scale 4-5 years ago.

In the last 10 years, two things have happened - the Internet penetration and connectivity have become somewhat reliable and secondly, businesses have started responding to the opportunityon the Internet. The second generation has now started participating in the businesses, and

an inflexion point is about to come in the Indian business Internet usage, the same way itdid in China 8-10 years ago.  Now I feel that at a large revenue base like ours, to maintain agrowth of 40-60% over the next few years we might have to spend a larger amount of money ondifferent activities like advertising and marketing, and a strong management team. We have not been advertising.

. key revenue streams

We create websites, microsites and catalogs. We do a complete turn key package - designing,hosting, offering higher listing on Indiamart, Search Engine Optimization. We submit the sites to

Page 19: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 19/27

various business directories. So this is a subscription package where you know the websitedesigning and hosting portion has become a minuscle in terms of revenue. Most of the peoplecome to Indiamart not to have a four page microsite designed for Rs. 25,000, but because theysee that there is a value in listing that they get on Indiamart platform.

kind of valu

e adds that are offering. On top of that there are pure advertising services which are more of a top listing, premiumlisting, banner advertising on a relevant category, special listing on product search. So these arevalue added products; We also have hundreds and thousands of micro product-specific portalsfor Apparels, Plastic, Chemicals etc. So we offer sectional sponsorship. We are slowly andslowly moving from a listing fee based model to a lead based model. Our initial model alwayscontains a minimum commitment, where we gave a minimum guarantee - if you are spendingRs.25,000 with us please expet atleast 50 good enquiries in a year from the website. We¶verealized that some customers have matured enough to be able to go to pay per click or pay per 

We launched a buy lead section, a business prospect finder section, which is mostly for leadgeneration section. So is a mix of things - a cataloguing plus basic listing fee that comes under subscription revenue, pure listing fees which are on the top of basic listing fees that could be premium listing and payed listing and banner advertising. Then there is a pay per lead revenue. If 

you see then 5-6 years back 80-90% of our business was purely cataloguing and

subscription revenue only 5-10% was pure listing fee and advertising fee. Today 60-70% is

catalogu

ing revenu

e and abou

t 30% comes from pu

rely listing and premiu

m listingfee«you know those are experienced Internet and Indiamart users, and going forward I think that pay per lead would also become a sizeable chunk of that.

competition,

. Alibaba comes in equally with a large number of suppliers from China - that is their strengthand weakness both. Indian suppliers typically do not want to compete with Chinese suppliers,and they will have to do that on an Alibaba type of platform. The whole world has been lookingat China as their supplier, which is why Alibaba has done so well. If the buyer preferencechanges, they will start logging on more to IndiaMart more because they know that AliBaba provides chinese suppliers.

But then it becomes important for Alibaba to market their services in India better to

develop their supplier base. Then there¶s going to be competition for you to get suppliers«Obviously, and if you really see the market size is very large. It¶s a trillion dollar tradeopportunity. By the entry of Alibaba, the supplier base will be more educated - more competitionis more market development. If you see the example of Naukri.com and Monster both areexisting together, and both are equally big. If you see China, it has an equally large player calledGlobal Sources, Made in China, EC21 and there might be 200 smaller ones.

Page 20: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 20/27

 

INDUSTRIES

Apparel & Garments Textile and apparel is a privilegedexports sector in India contributing30% of total exports.

Agro / Food Products India is largely an agrarian economywith a large part of the populationdirectly or indirectly involved in thissector.

Automobile Spare Parts 

Automotive spare parts andcomponents is a lesser-knownindustry yet a big one, with globalaspirations.

Ayurvedic / Herbal 

It's springtime for Ayurveda andHerbal remedies sector, withpromising global market.

Business Services Indian Services Sector has beenrecognized as a specialized industryat a global level.

Chemical Indian chemical industry is one of thefastest growing and promisingindustries today.

Construction Construction industry boom can beseen in almost all the developingcountries.

Electrical & Electronics Past few years have been a littletough for the electrical andelectronics industry in India.

Handicrafts Indian handicrafts sector is highlyfragmented, mostly in the form of small scale or cottage industry.

Home Furnishings Latest reports suggest almost 30%growth in exports of the home textileproducts.

Industrial & Engineering Products Leather 

Page 21: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 21/27

 

Industrial products and engineeringsector has emerged rather graduallyin the Indian scenario.

Indian Leather Industry comes in thetop 10 export sectors of India valuedat about US$ 2 billion.

Medical & Pharmaceutical The Indian Pharmaceutical Industry isone of the largest in the developingworld.

Plastic The plastic processing sectorcomprises of over 30,000 unitsinvolved in producing a variety of items.

Sports Goods India's global marketshare is barely

1% but 60% of the goodsmanufactured in India are exported.

Stones India has extensive and rich deposits

of natural stones which haveextensive global demand.

Travel A major foreign exchange earner, itaccounted for almost 2% of GDP in2004.

Page 22: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 22/27

 

NEW CLIENTS

scoroditestainless.com  marqueimpex.com  vivekpolymerindia.com 

metaludyog.com  syscraftglobal.com makwellplastisizers.com 

bholenathenterprises.com  wheelsexporter.com rineengineering.com 

supremeagro.com hydrodyneseals.com 

amtigears.com 

sajjanprecision.com  sethindustries.com  royalexport.net 

Project of the month Bajaj Eco-Tec A six-word punchline, ³Make your wood requirements wood free´ describes the quality work done by Bajaj Eco-tec. One of the

fastest growing companies engaged in manufacturing high-quality wood

substitutes and alternatives is completely based on providing environment-friendly wood...http://www.bajajecotec.com/ 

Page 23: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 23/27

 

Archive We serve thousands of clients in India and abroad. These clients belong todiverse industries and are of varied sizes ranging from SMEs to big corporate

houses. Here we present a cross-section of our clients who have benefitedfrom our solutions.

http://www.shawlsandmore.com/ The products manufacturedby Shingora are known all

over the world for theirexquisiteness and uniquedesigns. This is infact aresultant of our focus onquality and strong customerorientation.

http://www.jewelry-manufacturers.com/ A rich blend of innovation, creativity

and authenticity, thefinely crafted pieces of ewelry manufacturedand exported by NupurOverseas have createda rage in both nationaland internationalmarkets.

http://www.eldecogroup.com/ Eldeco Infrastructure andProperties Ltd. became oneof our esteemed clients inMarch 2002. The companyhas also availed a SpecialSoftware Website servicesfrom us making the websitemore dynamic. Thephenomenal success of thecompany can also be

attributed to its webpresence.

http://www.brakewel.com/Since the time of itsestablishment, Brakewelhas a respectablepresence in OEMs,Domestic, Aftermarketsand Exports. Thecompany has a technicalcollaboration with ASKGroup, Japan which isone of the largest

friction material supplierto various OEM's in theworld.

http://www.jindalstainless.com/ The organisation had a

http://www.suryaherbal.com/ As part of their

Page 24: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 24/27

 

rather specific requirement.Due to the nature of thebusiness and clientele, itneeded a solution wherethey could receive RFQs,

which could be managedonline by the marketingteam. Further it had to bein sync with their existingsetup.

marketing strategy, theyopened up contact pointsand branches globally.To assist the offlinemarketing network and

augment their marketingefforts, they got in touchwith us for onlinemarketing of theirproducts.

Client Prof ile 

Premier Infrastructure, a proprietorship firm established in 2004, is the subsidiary of Premier

Group- a leading service provider for construction works of cement & fertilizer plants and

industrial buildings. The group brings together various technologies for addressing the

communication & infrastructure management needs of globally distributed Enterprises and

Telecom Carriers. In its ongoing endeavor, the company boosts of a niche client profile, already

having served the likes of Reliance, Tata Teleservices and Airtel, among many others.

Business Challenges 

Premier Infrastructure wanted to establish themselves in the International B2B space. The

client posed the below challenges to IndiaMART.com:

y  Create a brand name for the client in order to attract more clients.

y  Design an extremely attractive, user-friendly and interactive website.

y  Emphasis on online promotion for better traffic and widespread on-line presence.

y  Develop effective and efficient methods to receive business queries.

y  Provide Premier Infrastructure a competitive edge and opportunity to expand its market

base.

Page 25: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 25/27

Solutions 

IndiaMART.com used its online expertise to provide comprehensive web-solutions keeping in

mind the requirements of the client.

Mini Dynamic Catalog (MDC) 

MDC enabled the client to showcase its entire product range. Being dynamic in nature, the

catalog helped the client to make frequent changes in the product categories as per the

requirement. The website's strong online presence, helped in establishing the company as a

well known brand in the category.

TrustSEAL 

TrustSEAL acts as a mark of authenticity in the virtual market place. lt ensures the credibility

and trustworthiness of the company based upon its verified records and documents pertaining

to proof of existence.

Promotion at IndiaMART.com B2B Marketplace 

The website was linked with relevant product categories on IndiaMART's on-line B2B network

to give the client maximum exposure and visibility on the Internet:

y  Premium listing and links from relevant product category pages in

http://dir.indiamart.com 

y  Catalog listing and links in relevant categories at http://catalogs.indiamart.com

y  Posting of trade offers at http://trade.indiamart.com 

Results Achieved 

y  TrustSEAL helped in positioning the brand as a credible source in the online B2B space.

y  Online presence helped to generate genuine business enquiries.y  The firm's business activities have been enhanced with extensive promotion on

IndiaMART.com network.

Page 26: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 26/27

 

S No. TOPIC PAGE No.1 Introduction 1

Market entry strategy 2

Venturing in Indian Market

Corporate Websites 

B2BProduct Catalogs 

E-commerce Solution 

Page 27: ecommerce on india mart

8/8/2019 ecommerce on india mart

http://slidepdf.com/reader/full/ecommerce-on-india-mart 27/27

INDEX

Mini Dynamic Catalog

Offerings

Business model

competition, 

INDUSTRIES served by india mart

Business challenges