3. THE RETAIL INDUSTRY
◉ Largest employer in the services sector.
◉ Maximum growth in the non-agricultural sector has
been witnessed by retail trade.
◉ Witnessed tremendous growth in the last 10 years.
◉ Set to cross the $ 1trillion mark by 2020 from $ 672
billion in 2017.
◉ The shopping revolution that has led to this retail
boom.
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4. THE RETAIL INDUSTRY
◉ India ranks among the best countries to invest in
retail space. India is the world’s fifth-largest global
destination in the retail space.
◉ Factors that make India so attractive include-
○ the second largest population in the world,
○ a middle class of 600 million people,
○ increasing urbanization,
○ rising household incomes,
○ connected rural consumers, and
○ increasing consumer spending. 4
5. THE RETAIL INDUSTRY
◉ India has overtaken China to grab the top spot in
A.T. Kearney's 2017 Global Retail Development
Index.
◉ Retail is India's largest industry, currently
accounting for over 10% of the country's GDP and
8% of total employment.
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6. Impact on the Indian Economy
The Online Retail
Industry
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7. WHAT IS ONLINE RETAIL?
◉ A process that allows the customers to search,
select and purchase the products, services and
information remotely over the Internet.
◉ A type of electronic commerce whereby consumers
buy goods or services directly from a seller through
the Internet using a web browser.
◉ A form of electronic commerce that enables
consumers to shop from anywhere using web based
applications. 7
8. TYPES OF E-RETAILING
◉ Pure Play e-retailers such as Amazon, that emerged
as the online bookseller. It is present only online
and do not have any physical outlet for the
customers.
◉ Brick and click e-retailers such as Dell, that sells
computers through the internet as well as has the
physical store front for the customers.
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9. ADVANTAGES OF ELECTRONIC
RETAILING
◉ Through electronic retailing, customers can save
both the efforts and time.
◉ The wide range of products is available online, so
the comparison can be made easily before the
purchase.
◉ The customer can shop anytime and from
anywhere, the facility is available 24*7
10. ADVANTAGES OF ELECTRONIC
RETAILING
◉ The huge discounts can be availed while shopping
online.
◉ The detailed information about the product is
available online; that helps the customer to make
the purchase decision.
◉ The electronic retailing offers the easy payment
terms such as payment on delivery that instigate
the customer to shop online.
◉ Generating employment - There is a strong demand
11. ADVANTAGES OF ELECTRONIC
RETAILING
◉ Generating employment - There is a strong demand
for web developers, software coders, analytics
experts, content writers, graphic designers and
digital marketers among other specialized tech
areas.
12. DISADVANTAGES OF
ELECTRONIC RETAILING
◉ The customers may not be sure of the quality of the
products offered online.
◉ It is the tendency of every individual to bargain
before making the final purchase, but this quotient is
missing in electronic retailing.
◉ Also, the customers may not trust on the payment
gateways and fear the misuse of credit cards or any
other mode of payment.
13. DISADVANTAGES OF
ELECTRONIC RETAILING
◉ Every customer wants to see and feel the product
that he purchases, but it is not possible in case of
electronic retailing where the customer makes the
decision just by looking at the image.
◉ The product is not readily available; the customer
has to wait for some time to get the product in his
hands.
15. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
Faster Financial development
◉ The e-commerce boom has given a boost to
manufacturing, transport, sales and other related
activities.
◉ This is fostering an overall environment for
financial growth of various sectors.
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16. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
Markets in unreachable pockets of India
◉ Online retail is no longer limited to the big towns
and cities.
◉ They are overcoming infrastructure barriers by
creating warehouses in the most remote locations
and enabling easier access of goods and services
to the remotest corners.
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17. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
Providing Employment
◉ Currently e-commerce is providing 1 million jobs to
the Indian work force.
◉ Indian ecommerce industry statistics forecast a
massive growth in employment opportunities in
this sector which would create 12 million new jobs
in coming decade.
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18. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
Increased exports
◉ Startup environment has seen a positive growth
with the rise of e-commerce.
◉ SMEs operating from home or garage are able to
sell on popular marketplaces and cater to global
audience.
◉ This is contributed to increased exports even from
the unorganized sectors.
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19. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
◉ Changing the face of retail
◉ Retail market has been revolutionized by e-
commerce. Online stores are offering better
choices, deep discounts and convenience of
shopping. The combined sales of three top e-
commerce players in India is already more than
the sales of ten biggest offline retailers. Brick and
mortar shops account for only 10% of total retail
sales. 19
20. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
◉ Growth of B2B ecommerce companies
◉ Effect of e commerce on Indian economy is not
limited to the B2C model. Although the current
profits of B2B are not as great as B2C e-
commerce, but slowly and certainly it is catching
up. B2B market potential stood at USD 300 Billion
in 2014 and by 2020 it is expected to reach USD
700 Billion.
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21. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
◉ Environment for enterprise and Innovation
◉ Engineering, medicine, MBA and other similar jobs
were the only professional choice of an average
Indian a decade ago. This is fast changing and
entrepreneurship is becoming the first career
choice of young Indians.
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22. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
◉ Environment for enterprise and Innovation
◉ Evolution of ecommerce in India has made
technology available for all.
◉ Thanks to the future ready, affordable e-commerce
platforms and even the very young entrepreneurs
are able to give wings to their dreams and roll out
an online store in no time.
◉ .
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23. IMPACT OF E COMMERCE
ON INDIAN ECONOMY
◉ Attracting global players
◉ India has the biggest millennial population of
internet savvy youngsters. With greater
purchasing power and changed lifestyle and
shopping habits, this generation is playing the role
of a positive catalyst in the growth of ecommerce.
Given the population size of India it is no wonder
that all the ecommerce bigwigs are trying their 23
25. FUTURE PROSPECTS OF E-
RETAILING
◉ E-commerce in India is yet to get into its
stride.
◉ The online retail market in India has more
than tripled since 2015, but it is only
expected to contribute to 2.9% of the total
retail sales in 2018.
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26. FUTURE PROSPECTS OF E-
RETAILING
◉ By 2022, the sector will be worth $71.94
billion, which is a 120% growth compared to
$32.70 billion in 2018, the research firm
added.
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27. FUTURE PROSPECTS OF E-
RETAILING
◉ Comparatively, in China, online retail already
makes up more than 16% of the overall retail
market, and is expected to touch 25% in
2020, according to a 2017 report by Goldman
Sachs.
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28. FUTURE PROSPECTS OF E-
RETAILING
◉ In its present state the contribution of E-
Commerce to GDP is around 0.2% which is
expected to grow 15 times to around 2.5% by
2030.
◉ By 2030 the contribution to GDP by E-Commerce
is expected to reach to around 300 Billion Dollars
which is around 20 Billion Dollars in its present
state
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30. FUTURE PROSPECTS OF E-
RETAILING
◉ The impact is so huge that the present wave
of de-monetization could have not been
thought if E-Commerce did not exist.
◉ E-Commerce to a large extent helped absorb
its shock as well as gained the maximum out
of it as well.
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