The e-commerce industry continues to evolve and experience high growth in both developed and developing markets. With the emergence of non-banking players in the payments industry and innovative vertical specific startups, the Indian e-commerce market is expanding at a rapid pace. The digital commerce market in India has grown steadily from $4.4 billion in 2010 to $13.6 billion in 2014 while the global market is forecasted to reach $1.5 trillion in 2014. Increasing mobile and internet penetration, m-commerce sales, advanced shipping and payment options, exciting discounts, and the push into new international markets by e-businesses are the major drivers of this unprecedented growth.
The big retailers are increasingly focusing on their digital strategies in order to gain the obvious benefits of online platforms – wider reach, always on, personalization to name a few. The e-commerce companies are concentrating their efforts on increasing the penetration of their mobile apps for higher growth. Big players in this space claim to have more than 50% of their revenue coming from mobile apps.
The supply chain and logistics in e-commerce business are highly complex to manage in a vast country like India where infrastructure is not well-developed to reach every remote and rural area. The taxation policies for the e-businesses are not well-defined depending on different business models and transaction types. The complexity has further amplified with transactions happening across borders for online selling of goods and services. Moreover, e-businesses do not take sufficient steps to deploy a security solution, which is hindering the consumer from transacting online.
Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India the unique opportunity to fundamentally alter the way companies connect with their customers. Due to this digital revolution, the e-commerce sector in India has become 4 times its size, from $3.8 billion in 2009 to $17 billion in 2014, growing at a CAGR of 37%. The sector is expected to cross the $100 billion mark within the next five years, contributing over 4% to India’s GDP.
Mobile commerce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry. Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70% of their total revenues.
The Government’s ambitious ‘Digital India’ project that aims to offer a one-stop shop for Government services will further bolster the sector by introducing internet and broadband to remote corners of the country and increase trade. This initiative through a targeted investment of nearly $17 billion will transform India into a connected economy and also attract investment in electronics manufacturing and create millions of jobs. It is therefore important to overcome challenges in Financing, Infrastructure, Logistics and focus on building Customer Loyalty to usher in the next wave of sustainable growth in e-commerce. Dedicated e-commerce laws are required to address issues in the sector’s legal and regulatory framework and Banks must play a leading role as ‘Facilitators’ by offering cost effective cash management solutions, secure payment gateways and other relevant banking services.
B2B E-commerce in India is in line with the government’s digital growth plans. Online B2B can be a wide platform with lots of scope however there are many hurdles it faces. Apart from policy ambiguity, B2B works on thin margins, hence, there are concerns about its scale and operation. In India, there will also be a taxation hurdle which exists for interstate transactions. The biggest barrier that will be faced when B2B E-commerce takes over the market will be trust and flexibility. Brand will make a big difference and will also determine how successful the venture is. Another factor that will also have its effect felt is flexibility of the business model that the organization has in place. While deviating into B2B E-commerce, companies need to keep in mind that they need to control a lot of sub-bodies like pricing, sales, channel and distribution and hence should take help from a specialized sales body while developing the online portal.
Newer technologies that could significantly bring a paradigm shift in the online businesses are analytics, autonomous vehicles, social commerce, and 3D printing. Companies have started to invest in data analytics to gain real-time insights into customer buying behaviour and thus offer personalized user experience. The e-commerce companies are building communities on social media networks to better understand customer needs and to drive effective marketing strategies.
The future of e-commerce is bright and growth will come from mobile platforms, personalization, social media analytics, omni-channel service, and sharing economy business models. The e-commerce industry is an exciting place with the interplay of social, mobility, analytics, cloud (SMAC), digital, 3D and, virtualization. The current high valuations, in spite of losses, perhaps, are indicative of the future potential. The most important aspect of E-commerce is identifying your customer segment and having a strategic plan to ensure appropriate proposition to each segment. The company should also have its long term goals clear.
After considering the essentials for a successful B2B E-commerce venture, the likelihood of an E-commerce era in India is high. Firstly, because the government will be for the proposal as it is part of their digital growth plan and secondly because it proves to be beneficial to both organizations. It will help cut overhead costs and other variable costs while at the same time making the process of obtaining the goods easier and faster. India being a developing country is prone to such change and evolution.
Mr. Tejinder Oberoi, Founder Director- m1-Order
Mr. Tejinder Oberoi has a rich experience across different facets of running organizations in IT, communications, lifestyle and chemical domains. He has completed his Bachelors in Electronics and Industrial Electronics Engineering from D. Y. Patil College of Engineering from University of Pune and Post Graduation in International Trade, Marketing & Sales Management and Financial Management from H.B. Inst of Communications & Management, Ahmedabad and IGNOU, respectively.
As a business head, Mr. Oberoi has taken ideas from concept to fruition, has been involved in innovation and application engineering initiatives, managed business operations and managed growth during expansion cycles. He has played a pivotal role in introducing the shop in shop model and sales cum service stores for paging industry. He has nurtured m1- Order from conception to a full-fledged business And dreams to make m1-order the de-facto tool for merchants to receive orders from their customers.
TPSO, as Tejinder Pal Singh Oberoi is affectionately known as, has been an active member of the management committee of GESIA (Gujarat Electronics and Software Industry Association) which aims to strengthen bonds between Government and IT industry on one hand and IT industry and academia on the other hand.
He is an eloquent speaker and is passionate about mentoring and coaching youngsters. Being a salesman at heart he loves to build lasting relationships across all levels and is the go-to person in any crisis. He is an avid observer and has an analytical mind.
m1- Order
m1-order, incepted in May 2015, has changed the way retailers receive orders from the customers. The marketplace was created in order to enable small and mid-level retailers access affordable technology to connect with their prospective consumers via mobile, print campaigns and social media.
In a way the platform adds a new dimension to the mCommerce domain as it allows neighbourhood merchants better monetise their print ads and traditional print collaterals such as business cards, product catalogues or menu via human readable QR Codes alongside giving them a complete onus of their virtual stores. This implies a quick call to action to customers for placing a direct order from the print and a much profitable platform for neighborhood merchants who usually shy away from making a digital presence.
The vision is to become an enabler bringing end consumers closer to local merchants through effective mediums such as print collaterals, mobile marketplace and social media platform. The marketplace works on a unique model that allows kirana stores/merchants to tap the opportunities available in this mobile governed and print loyal economy.
Under the leadership of its Founder Directors - Neeraj Hutheesing, Tejinder Pal Singh Oberoi (TPSO) and Yogesh Lokhande the company has its operations across Delhi, Mumbai Bangalore, Ahmedabad and Pune. The platform has already achieved the milestone of 2000 merchants registered within a quarter of its launch. The company at present charges a nominal fee of Rs5 per transaction.
Going forward, m1-Order is all set to create an organized revolution in the retail segment with its new Disruptive Technology. The company plans to foray into other cities as a part of its next year agenda.