EMERGENCE OF

ECOMMERCE : INDIA

Submitted ByPankaj Gupta

Index
S.N
O.
1 INTRODUCTION

TITLES

OBJECTIVES

EMERGENCE OF ECOMMERCE

SCOPE OF GROWTH IN INDIA

REASONS FOR GROWTH

LIMITATIONS

7
8

REVIEW OF LITERATURE
(OBJECTIVES)
RESEARCH METHODOLOGY

FACTORS STUDIED

10

FINDINGS

11

CONCLUSION

Introduction
E-Commerce stands for electronic commerce. It means
dealing in goods and services through the electronic
media and internet.
On the internet, it relates to a website of the vendor, who
sells products or services directly to the customer from
the portal using a digital shopping cart or digital shopping
basket system and allows payment through credit card,
debit card or EFT (Electronic fund transfer) payments.

E-Commerce is the movement of business onto the

World Wide Web. E-Commerce has almost overnight
become the dominant online activity.

Objective
To understand the evolution of ECommerce
To describe the conceptual framework of
E-Commerce in India;
To examine the barriers of E-Commerce
in India

Emergence of E-commerce

E-commerce dates back to the invention of the very old notion of

"sell and buy", electricity, cables, computers, modems, and the
Internet.

At first, the term ecommerce meant the process of execution of

commercial transactions electronically.

It wasnt until 1994 that e-commerce (as we know it today) really

began to accelerate with the introduction of security protocols and
high speed internet connections such as DSL, allowing for much
faster connection speeds and faster online transaction capability.

Scope of ecommerce growth

According to a study by Forrester, the Indian E-commerce sector is
set to grow the fastest in the Asia-Pacific region at a CAGR of 57%
between 2012-2016.
Reasons for this potential growth include:
Increase in annual disposable income per household expected to
grow at a CAGR of 5.1% during 2005 2025.
Discretionary spending expected to rise to 61% in 2015 from 52% in
2005.
Increase in time spent online by an Indian is expected to increase to
21 hours per month in 2015 .
Increase in the number of payment options is expected to increase
to 38 million by 2015, compared to 11 million in 2011.
Continuous reduction in the cost of internet.

Reasons Growth of Ecommerce In India

rise in disposable income

changing lifestyles
easier access to banking and internet facilities.
The emergence of blogs as an avenue for
information
dissemination
and
two-way
communication for online retailers and ecommerce
vendors
Improved fraud prevention technologies that offer a
safe and secure business environment and help
prevent credit card frauds, identity thefts and
phishing.
Bigger web presence of SMEs and Corporate
because of lower marketing and infrastructure costs.

Limitations
Lower average broadband speeds compared to
other countries.
High failure rate of online payment transactions.
Lack of access to free internet facilities in public
places like airports, trains etc.
Lower margins for e-commerce companies
could be a potential threat to their survival.

Review Of Literature
Analytical Objectives To compare India and Chinas approaches in
adoption of e-business.
To study the determinants of Internet banking
adoption by banks in India.
To examine the factors that determine the
organizational inclination to adopt E-Commerce
(EC).
To analyse organizational and strategic
imperatives that influence Information System
(IS) assimilation in Indian organizations

Research methodology

Online survey
Secondary data
Logistic regression analysis
face to face structured interview involving
middle managers, senior managers of IS
and other departments.
Semi-structured questionnaire

Factors Studied
Government policy and focus, existing technology
infrastructure regulatory environment, experience
and understanding of business operations, and
culture, among others.
bank deposits ratio, average wages, expenses (fixed
assets & premises), ROA , market share, average
number of branches, percentage of banks adopted
Internet banking.
leadership characteristics and organizational
characteristicsto explain the influence of
organizational factors on the propensity to employ
EC technologies

 presence or absence of government regulation,

pressure from customers, suppliers and
competitors, and strategic stancewhether product
and process changes
government policy, legal framework, technology
infrastructure, relationship with developed
economies and extent of e-commerce usage by
individual, corporate and government.
entrepreneur characteristics measured by
entrepreneurs qualification, importance given to
market share, R&D and quality consciousness,

Findings

China is ahead of India in the infrastructure, but India is ahead in ereadiness. Further, it states that both countries are poised for rapidly
increasing e-business.

Bank type (Private), firm size, bank deposits ratio, firm age, market
share, average number of branches, percentage of banks adopted
Internet banking and expenses, are found to be significant in
adoption decision.

The study found that both leadership and organizational

characteristic influence EC adoption. It establishes that leadership
characteristics influence adoption of EC technologies in centralized
organization and organizational characteristics influence EC
adoption in de-centralized organization.

 the study suggests that substantial efforts have to be made to

invest in telecommunications infrastructure, and to create a
culture of electronic payments and e-commerce usage that
will support economic growth.

R&D expenditure is found to be not significant for technology

adoption, firm size (large firms are more likely to adopt) and
age of firm are found to be significant. Also it is found that
foreign firms adopt new technology when profits are down,
and doesnt adopt technology in competitive markets.

The study found that entrepreneurs qualification, importance

given to market share, R&D, export intensity, work force skill
and firm size influence the degree of adoption of IT by the
firms.

Conclusion
The opportunities for e-commerce players are many rapid
urbanisation and rising literacy rates, rapidly growing internet
user population, advances in technology, growing adoption of
computers, introduction of 3G and falling net access costs.

As a business model, it appeals to the value-minded Indian

mindset, which is about getting the best value for money
spent

Mobile commerce, which is only just being introduced in India

following the boom in telephony, could prove to be a stable
complement e-commerce.

Effective risk management strategies coupled with adequate

legal documentation will go a long way in protecting ecommerce companies. Although the Internet is a goldmine,
without adequate legal protection, it could become a
landmine.

In the next 3 to 5 years, India will have 300 to 400 million

internet users which will equal, if not surpass, many of the
developed countries. Internet economy will then become more
meaningful in India.

Thank you