Indians are buying online. And eCommerce sites are proliferating to meet this demand. Venture capital money is flowing in. Consumers are being papered with specials, offers and discounts. It is finally boom time for the second leg of the Internet in India (the first leg being advertising). Fortune India and Business World both have cover … Continue reading eCommerce in India – Part 1
This is what Business World wrote in its recent cover story on the e-tailing wars in India: Hundreds of such entrepreneurs are delighted at the sudden turn in the fortunes of India’s e-tailers in 2011. Easy availability of broadband, patchy rollout of 3G and growing aspirations of non-metro youth, coupled with economic uncertainty, are driving … Continue reading eCommerce in India – Part 2
Yesterday’s Economic Times had a front page story entitled “India’s e-commerce industry braces for consolidation as stronger online retailers gobble up minnows”: With the world’s largest online retailer, Amazon, preparing for entry into India and the market separating the strong from the weak, India’s best-known and stronger online retailers are taking the lead in the … Continue reading eCommerce in India – Part 3
Fortune India called the eCommerce entrepreneurs as the visionaries of 2011. It quotes some of the eCommerce entrepreneurs in its cover story in its latest issue: K. Vaitheeswaran, IndiaPlaza.in: “The tipping point of e-commerce will be reached only when the offline retailers go online successfully.” B. S. Nagesh, Shoppers Stop: “Retail is about the consumer, … Continue reading eCommerce in India – Part 4
This is what I wrote a month ago as part of my Digital India 2012 Trends series: Undoubtedly, the biggest story on the Internet in India is that of the dramatic rise of eCommerce. People are becoming comfortable buying all sorts of things over the Internet. Companies have also set up better logistics for distribution … Continue reading eCommerce in India – Part 5
Before we get to a discussion on the present and future of eCommerce of India, we should look at the reasons as to why it is a sector that has the potential to be big in India. First, the sector has grown because of the growth of the Internet in India. A decade ago, the … Continue reading eCommerce in India – Part 6
Fourth, the deals and discounts. With eCommerce companies flush with funds and in a ‘customer grab’ mode, 2011 has been a buyer’s delight. From books to phones, everything seems to be available to less than what you would get to a nearby store. With free shipping thrown in. So, click and order. Fifth, the cash … Continue reading eCommerce in India – Part 7
Hundreds of millions of dollars have flown into the sector over the past couple years at valuations that were very attractive to the entrepreneurs. The talk now is that the “mini-bubble” has burst. Consolidation is starting in the sector. Companies lucky enough to have raised substantial capital are the ones who will be the survivors … Continue reading eCommerce in India – Part 8
This easy access to cash also encouraged the wrong type of thinking. It makes entrepreneurs think exits. This is exactly what happened in 2000. The focus for many becomes on the paper valuations rather than building profitable businesses. One big difference from 2000 is that the sheer capital gone into this sector will now make … Continue reading eCommerce in India – Part 9
Looking ahead, there are a few things which can help grow this sector. The mobile is perhaps the biggest opportunity. But the inability to do payments on mobile is a big constraint. RBI needs to step in and fix the rules and help the ecosystem simplify payments on the mobile dramatically. I have maintained that … Continue reading eCommerce in India – Part 10
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