At
one of the top MBA Colleges in Greater Noida, Ishan Institute of Management
& Technology, the last year has been exciting and happening for both
academicians and students. We have been collaborating in researching on different
aspects of the ecommerce industry both at the national and global levels. At
the global level ecommerce has evolved better and thus grown faster and better
than in India. Given that ecommerce is a technology driven vertical, it gives
the impression to many people in business schools that the key driver of
business growth is technology. As business academicians at one top MBA colleges
in Greater Noida, we beg to differ. Based on the empirical evidence that our students
and fellow academicians have collected we assert that the synchronization of
technology with the business and revenue models matters the most. Technology in
isolation does not achieve the desired targets of business growth. As such we
have based this piece on business and technological trends that are shaping the
contours of the ecommerce vertical at the global level.
Global Rankings of Ecommerce
Companies
Based
on the net product sales, Deloitte has published the findings of its research.
Amazon stands right at the top of the global rankings with net product sales of
U.S $ 61 billion. The other big global company JD.com INC from China comes in
second position followed by Walmart and Apple both from the U.S. The complete
list of the top ten global companies in ecommerce is given below.
How Does India Compare to the Global Ecommerce Market?
How Does India Compare to the Global Ecommerce Market?
As
an MBA College in Greater Noida, we get to interact and learn about the ecommerce
industry best practices being followed by their business executives in the
markets of Delhi NCR. Again, we have also collected data from our alumni
working in the ecommerce vertical in the overseas markets. We have tallied the
differences that we have observed. Our students who are pursuing PGDM and MBA
courses have also engaged in researches to identify the differences between
ecommerce in India and the rest of the world. Here is a list of the major
technological and business trends that we have observed.
Global Ecommerce Market Runs on
Non-Price Competition
The
global ecommerce market is more into the market morphology of imperfect
competition and has evolved tremendously over the years. The pattern of
competition in the global ecommerce market is based on non-price competition.
Companies operating at the global level have looked to focus on customer
retention and profitability by building key product and brand differentiators
Non-price competition has enabled these companies to compete against each other
and yet grow organically in terms of gross merchandise value and net product
sales without having to sacrifice their profitability. This has been possible
through focus and innovation in process and product development, embracing of
technological platforms like big data, internet of things, machine learning, artificial
intelligence and cloud computing solutions. On the other hand companies in
India like Flipkart, Amazon India, Snapdeal, Jabong and others have looked to
build on market share and new client acquisition in the B2C segment. This has
allowed them to grow in terms of sales volumes but the gross revenues have been
compromises on by means of offering heavy discounts, offers and loyalty
programs.
Business and Revenue Models in
Vogue
Companies
in India are trying out multiple business models to stay afloat in a market
that is becoming increasingly crowded. Some of the top Indian ecommerce
companies and their business model types are mentioned below:
To
survive and sustain in the market, companies are also taking advantage of multiple
revenue models.
Yet
another interesting observation about the ecommerce market in India is that it
is witnessing very aggressive mergers and acquisitions that in the near future
should lead to consolidation fragmented market share and a steady increase in
revenue streams owing to the gain of product specific SBUs. In the year 2014,
the acquisition of Myntra by Flipkart was worth INR20 billion and was the
biggest in that year in India. This deal was closely followed by the
acquisition of Pilani Softbus that used to run the online ticket booking portal
redbus.in by the South Africa based Ibibo Group for INR 135million and the
acquisition of TaxiForSure by Ola Cabs for INR200 million. The observation that
emerges here is that most of the M&A activities have taken place in
specific product led verticals. The rise of vertical specific companies in
India and at the global level shows the dominance of vertical specific
e-tailers over multibrand online retailers. A complete list of vertical
specific ecommerce firms in India and the world as given below points to the
insight.
At
Ishan Institute of Management & Technology, one of the top MBA Colleges in
Delhi NCR our students have worked on more than 200 research projects on
ecommerce till now and have attended 7 workshops on best practices in ecommerce
vertical. The clips of data offered in this piece are fragments of research
projects done by students under the mentoring of academicians of the faculty of
business administration and top business executives from ecommerce industry in
India.
