1.1 Industry Profile
The Internet’s potential contribution to India’s gross domestic product by 2015 may leap to $100 billion by 2015, from about $30 billion in 2011, according to a new a study by McKinsey & Co.
Currently, only 120 million people – or about 10% of India’s 1.2 billion population – use the Internet. By 2015, McKinsey projects India will overtake the U.S. to become country with the second highest number of Internet users after China. Globally, about two billion people currently use the Internet. In 2010, the Internet contributed $1.7 trillion to the world economy, according to McKinsey. That’s roughly the current size of India’s economy.
But most people, who will access the Internet in India by 2015, will do so on mobile devices such as cellular phones or tablet computers: “three out of four users from India will be mobile-only users,” says the report. An increase in Internet users could create 22 million jobs by 2015 from about six million now, the report added.
Sector Profile: e-Commerce Industry
The e-commerce is one of the biggest things that have taken the Indian business by storm. It is creating an entire new economy, which has a huge potential and is fundamentally changing the way businesses are done. It has advantages for both buyers as well as sellers and this win-win situation is at the core of its phenomenal rise. Rising incomes and a greater variety of goods and services that can be bought over the internet is making buying online more attractive and convenient for consumers all over the country.
Trends in the Industry:
- Feminization of the Industry
- Mounting Social Media
- M-commerce – A new wave!
- Online Group Buying – Explosive growth!
- After VC’s, Now Celebrities
- Change in the Business Model
- Hiring the best
The Industry is expected to grow at a CAGR of 40%, from US $ 5.9 billion in 2010 to US $ 34.2 billion in 2015E. As Indian e-commerce market is in nascent stage but it will surely amplify in years to come. Though there are some weak links, with improvements in technology, they will be ironed out, making the e-commerce easy, convenient and secure. The ecommerce is certainly here to stay.
Electronic commerce, commonly known as ecommerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.
E-commerce can be divided into:
• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall" • The gathering and use of demographic data through Web contacts and social media • Electronic Data Interchange (EDI), the business-to-business exchange of data • E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) • Business-to-business buying and selling
• The security of business transactions
The following are the common business applications in the e-commerce industry: • Document automation in supply chain and logistics
• Domestic and international payment systems
• Enterprise content management
• Group buying
• Automated online assistants
• Instant messaging