How Big Is the B2C E-Commerce Market in India?

India B2C E-commerce market stood at $13.4 Billion YE 2014

Total Indian E-Retail market stood at $5.2 Billion YE 2014 & is expected to be around $7.4 Billion YE2015

India E-Retail as % of Retail sales would be around 1% by YE 2015

Digital Buyer Penetration around 50m YE 2014

M-Commerce or Mobile Commerce

Table 1: Mobile Internet Buyers in India, 2012-2014Dec-12 Dec-13 Dec-14

Mobile Internet BuyersAs % of Mobile Internet Users

(who buy products at year-end)10,061,833 18,346,989 32,749,907

Source: researchandanalytics4u.com

Table 2: Pure Mobile Internet Buyers (PMIB’s) in India (In millions), 2012-2014Dec-12 Dec-13 Dec-14

Pure Mobile Internet BuyersPMIB’s

(as % of Total Mobile InternetBuyers

(who buy products at yearend)

2,012,367 3,669,398 6,549,981

Source: researchandanalytics4u.com calculations; base data from eMarketer.comNote: MIBs numbers adjusted for overlap to arrive at PMIB’s (Pure Mobile Internet Buyers); PMIB’s are buyerswho complete the whole transaction online

Digitally Addressable Market in India 2015

Where the E-commerce Market growth is going to come from?

Table 1: E-commerce Market SegmentationCity/Districts and States Categorization as; Tier I, Tier II, Tier III and Tier IV Cities

5 Most Urbanized States;these states are 50% Urban

Kerala, Maharashtra, Gujarat, Tamil Nadu,West Bengal

Top 8 Cities; these are alsoknown as

Tier I Cities

Mumbai, Delhi (NCT), Kolkata, Bangalore, Chennai, Hyderabad,Ahmadabad, Pune

Among Tier II Cities are23 Cities; to focus on are theones that will be urbanizedat a very fast pace and willfollow the lead Tier I Cities

Jaipur, Nagpur, Kanpur, Vadodara, Amritsar, Lucknow, Coimbatore,Madurai, Patna, Surat, Indore, Visakhapatnam, Rajkot, Varanasi,

Vijayawada, Nasik, Kochi, Ludhiana, Agra, Bhopal, Meerut, Ghaziabad,Jabalpur

AmongTier III and Tier IV Citiesare 47 Cities; these are the

Key Upcoming Towns/Or Cities Surrounding the

Tier I and Tier II Cities

Mysore, Bareilly, Guwahati, Tiruppur, Solapur (M Corp.), Hubli-Darwad (M Corp.), Salem, Aligarh, Gurgoan, Moradabad (M Corp.),

Bhubaneswar, Jalandhar, Warangal, Bhiwandi, Dehradun, Saharanpur(M Corp.), Siliguri, Gorakhpur, Guntur, Cuttack, Puducherry, Jammu,

Bikaner (M Corp.), Amravati (M Corp.), Noida (CT), Mangalore,Belgaum, Bhavnagar, Firozabad (NPP), Jamnagar, Durgapur,

Malegaon, Nellore, Bokaro Steel City, Kolhapur, Raurkela, Ajmer,Naded Waghla (M Corp.), Jhansi, Gulbarga, Erode, Ujjain (M Corp.),

Sangali, Tirunelveli, Muzaffarnagar, Vellore, RajahmundrySource: researchandanalytics4u.com analysis, based on Census 2011 Data

How to Measure the E-commerce Market?

Gross Merchandise Value (GMV) Vs. Net Revenues

GMV method of E-Commerce Portal Valuation leaves much to be desired as a method of calculatingthe market size and for the final valuation of portals. GMV is the actual value of goods sold throughthe shopping site. On the other hand “Net Revenues” is the actual fees paid to the shopping site persale . Market valuations based on GMV does not capture the actual worth of a shopping site.

The overall financial performance of a shopping site is to be evaluated based on the “actual Internetbuyers” each of them have in various “product categories”.

Product categories on a particular shopping site many times differ from another one. The product mixin terms of the volume of the products, the unit sizes, the prices on offer also differs. So to calculatethe actual performance product category-wise GMV method as such again won’t be of much help.

So To Measure The Actual Performance Of A Shopping Portal …Net Fees Paid To The Shopping SitePer Sale Is The Feasible Method To Do A Reality Check.