Last few months there has been lot of activity in the eCommerce space. New Startups have got funded and several of the existing ones have morphed their business models “Just In Time”, to focus on eCommerce.
Previously majority of the share in the e-commerce market was contributed by Online Travel (MMT, ClearTrip Etc), Ticketing (Book My Show) and Classifieds (Naukri, Carwale). Emerging eCommerce (E-tailing) categories include Apparel/Accessories (Yebhi), Fashion (F&Y, Exclusively.in), Mobiles/Computers (LetsBuy) and Consumer Electronics/Books/Music and Videos (FlipKart).
Per IAMAI, size of E-tailing market is estimated around $600M currently, growing 30% YOY. To scale and grow into real businesses, eCommerce startups will require
- Ability to assess/predict Product Demand accurately
- Cost effective Customer Acquisition strategy
- High Click 2 Conversion Ratio
- Repeat Sales and Loyal Customers
“Deep Customer Profiles” are a must to achieve all of the above.
Am sure even scrappy Startups will have to spend serious amounts of cash (tens of millions of dollars) to address business critical issues like Inventory Financing, Logistics and Customer Support.
With Brand Penetration, availability of mature Mobile Payment systems, improved Logistics/Delivery to third and fourth tier towns and Broad Band Internet User Growth, eCommerce in India will grow at a healthy pace.
3 comments:
I am not sure that we can put jobs into early e-commerce market. I mean main revenue stream there was DB selling and that was offline, relationship selling excercise. Would like to know your view though ?
@ rajAT - I agree with you overall. Since Classifieds was included with in eCommerce umbrella, I did include Jobs. Real Estate, Jobs and Personals verticals did reasonably well in Classifieds sector.
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