In a first view, India is not a
country favorable to e-business. Today in India, less than 50% of the
population does not have a bank account. However, digital industry is very
performing and leaders of world e-business invest in India billion dollars. The
Indian government is dreaming of an India fully digital, for its 1,3 billion
peoples, but still today, 30% of the population live below the poverty line.
E-business in India
With more than 243 millions Internet
users, or about 20% of the population, India is already at the 3rd
place concerning the penetration rate, behind the United States of America and
its 87% penetration rate. This comparison shows the huge potential of Indian
market for e-business actors. In the next year, India will become the market to
conquer and thanks to the significant decrease of smartphone prices, hundred
millions of potential customers will appear.
Currently, only 2% of the Indian
population buy online (or about 25 millions users). Analyst forecast that they
will be 40 millions at the end of 2016, and 200 millions in 2020. In value,
e-business market in India generated $2,5 billion in 2009, $13,5 Billion in
2014 and $16 billion in 2015. According to Chamber of Commerce and Industry of
India, e-business would reach $56 Billion in 2023. It’s the reason why a few
websites have already received huge investments to become the next leaders of
the world market.
The leaders of Indian e-business
Three actors
already dominate the e-business:
-
Flipkart,
founded in 2007 by 2 former Amazon, operating from Bangalore, the technology
capital of India.
-
Snapdeal,
a marketplace founded in 2010 in New Delhi and financed by eBay.
-
Amazon,
which begin to attack Indian market in 2013, and is currently testing drone delivery
there.
According,
Stylight forecasts, this 3 websites represents a turnover of $4 Billion in
2014.
The fashion
industry also knows a huge increase, with 25% of market share; e-fashion
industry is always growing, thanks to 2 companies:
-
Jabong,
one of the start-up financed et incubated by Rocket Internet
-
Myntra,
which hold 60% of the clothes market on the Internet, thanks to its merger with
Flipkart in 2014.
Fashion
industry will probably pursue its fast grow, due to the evolution of the Indian
society, which shift into a consumption society. Moreover, we can observe the
emergence of a young middle class, where women are more financially
independent. At least, it will benefit to fashion industry.
In 2014, the
digital shift begin with the fund raising of SnapDeal, which received an
investment of $133,7 millions from eBay, before raising other $100 Millions.
For its part, Flipkart raised $210 Millions from Digital
Sky Technologies, also investor of Facebook, Zynga, Groupon, Alibaba or
Twitter… In July 2014, they received the record investment of $1 Billion, and
are now valuated at $7 Billion. Faced to these incredible investments, Amazon still has
its role to play. The giant of e-business invested more than $2 Billion in its
operations in India. These huge sums lead Indian e-business to takeoff.
Forecasts estimate a continuous growth, which would make India more performing
than China in the next years. However, logistics keep being a challenge in India, due to the density
of traffic, road conditions, lack of precision on postal address…
http://www.lenouveleconomiste.fr/financial-times/le-mobile-au-secours-de-le-commerce-indien-26547/
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