“Investors have poured in $ 6.2 billion in startups in the first 9 months of this financial year as against $ 5.12 billion in the entire financial year ending March 2014 according to the latest Goldman Sachs report. The report goes on to double the forecated value of the Indian e-commerce market in 2016 from $12 billion to $23 billion, this in a way justifies the the title of my presentation” said Sanjay Arora, the CEO of Shells Advertising Inc while delivering a talk on “Fast and Furious: Exploding E-Commerce” at VIA Hall, Udyog Bhavan.
During the session, Mr. Arora said that today the consumer is truly the king a far as the e-commerce market place is concerned, he’s not only getting huge discounts but also the convenice of having products delivered to his doorstep with a range of payment options to choose from. The reasons for this explosive growth are not hard to fathom, the increasing penetration of interent with India to have the second largest internet base of 402 million people ahead of USA & just behind China by December this year, changing lifestyles, greater variety of products, lower prices etc. but the key gamechangers have been smartphones and ‘Cash-On-Delivery.’
According to him Cash on Delivery (COD) is an Indian innovation which has been now taken oversaes too by the e-com players. one such example. In a country like India, where credit card penetration is pretty low had it not been for this e-comm would have struggled to find its feet. At present, COD is the preferred payment mode accounting for over 60% of all online transactions in India. COD is here to stay owing to its convenience and its cultural affinity and will be a major part of payment mechanisms for at least the next four to five years. Executing COD efficiently and painlessly for the customer is critical to the success of any e-commerce player in the country.
There is a huge myth that e-commerce industry is killing the brick & mortar retial said Sanjay adding that even today ecom forms only about 1% of the total retail market and even in the most advanced nations the figure doesn’t exceed 10% and we have a long way to got to even come close to that figure. Though some domains like mobile phones, electronics, books etc are more impacted than others. The growth is bound to continue provided e-commerce companies focus on innovating, building strong technology infrastructure and delivering the best customer experience. Another major growth impetus will come from the Government’s implementation of ‘BharatNet aka NOFN (National Fibre Optic Network) project under which 2.5 lakh gram panchayats will be connected by 2017. The imminent launch of Reliance Jio’s 4G service at highly affordable prices would add further fuel to this blazing e-com fire.
Elaborating further he added that there are different modes of e-commerce transactions, the most prevalent being B2B (business-to-business), B2C (business-to-consumer) and C2C (consumer-to-consumer) e-commerce. Furthermore, Mobile commerce growth is another exciting trend to watch in terms of e-commerce statistics, considering the popularity and widespread use of smartphones. Digital payments are also closely connected to e-commerce. Alternative payment methods such as digital wallets or online payment providers have seen increased adoption rates and rapid growth in the past few years.
He also shared, numerous intersting and enriching case studies and examples to bring home the sheer scale and pace of the e-com jaggernaut as also his indepth analysis and recommendations for specific business challenges existing in the E-commerce industry. The challenges were pertaining to adopting the right marketing strategy and supply chain management strategy to resolve the issues faced by the E- commerce firms.
At the outset, Akash Agrawal, Chairperson-VIA Marketing Forum gave the opening remarks and welcome address. Ms. Hetal Gaglani, Co-Convener – VIA Marketing Forum introduced the speaker and proposed vote of thanks. Also prominently present were Shri.Atul Pandeji, President VIA and Mr. Rohit Agrawal, Secretary,VIA. This talk was attended by large number of audience which included Young Entrepreneurs’, Businessman, Students, Industrialists, prominent VIA Members and others.