Indian E-Commerce Industry 2017

----------------------- Page 1-----------------------

THE STATUS OF E-COMMERCE  

----------------------- Page 2-----------------------

Contents  

Introduction .................................................................................................................................................. 2  

Present Market Landscape .......................................................................................................................... 2  

Shopping via mobile App ............................................................................................................................. 7  

Shift from GMV to other KPIs of e-commerce players .............................................................................. 11  

Key Future Trends ...................................................................................................................................... 11  

Summary ..................................................................................................................................................... 12  

----------------------- Page 3-----------------------

     Introduction  

     As Indian consumers evolve more from price to convenience, where they expect a good deal on  

                                                   1

     products  that  are  delivered  quickly ,  e-commerce  will  help  deliver  attractive  and  convenient  

     shopping experience to customers. Indian economy’s rapid evolution towards digital economy is  

     creating  conducive  environment  for  e-commerce  business  to  deliver  better  experience  to  

     customers by improving the overall supply chain efficiency as well as to increase penetration in  

     Indian   markets,   where   the   want   for   instant   gratification   is   on   rise   complemented  with  

     improvements in infrastructure and “ease of doing business”. The future of e-commerce holds  

     promises which can only be explored in depth upon in-depth study of present status of industry.  

     Present Market Landscape  

                                                                                          2                                  3

     Indian  user base of Internet as of June 2015 was about 0.35 billion   of which  20%  (~70 million )  

     are online shoppers. Both these pies are expected to expand at a constant pace.  As on today,  

     60%  of Indian  e-commerce industry revolves  around  travel  while  6  e-commerce  companies  –  

     Flipkart, Amazon, Inmobi, Quikr, Olacabs, and Paytm; are valued at  more than a billion dollars.  

     With high penetration of smart phones and increased availability of 3G and 4G data at affordable  

     prices, Indian consumers in all strata are rapidly advancing  towards adopting technology; thus  

     creating a plethora of opportunities for e-commerce industry to grow in India.  However, losses  

     of some of the major e-commerce players have piled up as they have blitzkrieged their ways in  

     pockets of Indian consumers. The  recent debacles of Snapdeal and Stayzilla  have  proved that  

     focusing only on freebies and marketing to attract customers does not ensure customer loyalty  

1 Ovum report – “The Future of E-Commerce : The Road to 2026”  

2 https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-e-

     commerce-in-india-noexp.pdf  

3 http://www.assocham.org/newsdetail.php?id=6130