Topic

Impact of E-Commerce Dynamics in

Developing Markets
 Acknowledgment
I would like to express my sincere gratitude to Prof GP Dang Sir & everyone who
supported me throughout the completion of this project on “Impact of E-Commerce
Dynamics in Developing Markets.”

First and foremost, I extend my heartfelt thanks to , whose invaluable guidance,

encouragement, and constructive feedback helped me throughout this research. Their
expertise and continuous support played a crucial role in the successful completion of
this project.

I am also grateful to D.A.V (P.G.) COLLEGE DEHRADUN for providing the

necessary resources and a conducive environment for conducting this study.

I would like to extend my special thanks to my family and friends for their moral
support, patience, and encouragement throughout the project’s development.

Finally, I acknowledge the assistance of all authors, researchers, and online resources
whose work and insights helped enhance the quality of this research.

Thank you all.

Akash Nautiyal
B.Com V Semester
D.A.V (P.G.) COLLEGE DEHRADUN
 Certificate
This is to certify that

Akash Nautiyal, a student of B.Com V Semester at D.A.V (P.G.) COLLEGE

DEHRADUN, has successfully completed the project titled “Impact of E-Commerce
Dynamics in Developing Markets.” as part of the course requirements for B.Com
during the academic year 2022-2025.

The project has been conducted under the guidance and supervision of Prof GP Dang. It
reflects the student’s original work, research, and dedication toward understanding the
subject.

We commend the efforts put forth by the student in completing this project with
sincerity and diligence.

__________________________
Prof GP Dang

HEAD AND DEAN

Department of commerce

D.A.V. (PG) COLLEGE DEHRADUN

__________________________
Date: ________
Place: ________
 INDEX

CHAPTER PARTICULARS / TITLE OF CHAPTER PAGE

NO. NO.
CH. 1 INTRODUCTION
CH. 2 LITERATURE REVIEW
CH. 3 RESEARCH & METHODOLOGY
CH. 4 DATA ANALYSIS AND DATA INTERPRETATION
CH. 5 CONCLUSION
 CHAPTER 1
INTRODUCTION

Meaning Of My Topic
Significance means “Important”.
E-commerce means “the business of buying and selling things over the Internet".
Emerging means “surviving and coming out from a difficult situation” or “Merging”.
Market means “the sum total of all the buyers and sellers in the area or region under consideration”.
In short my topic actually means, the importance of business and selling things over internet in the
surviving difficulties in total no of buyers and sellers under consideration”.

Meaning and Definition of e-commerce in emerging markets:

Information Technology has been playing a vital role in the future development of financial sectors and the
way of doing business in an emerging economy like Bangladesh. Increased use of smart mobile services and
internet as a new distribution channel for business transactions and international trading requires more
attention towards e-commerce security for reducing the fraudulent activities. The advancement of
Information and Communication technology has brought a lot of changes in all spheres of daily life of
human being. Ecommerce has a lot of benefits which add value to customer’s satisfaction in terms of
customer convenience in any place and enables the company to gain more competitive advantage over the
other competitors. This study predicts some challenges in an emerging economy. Keywords: e-commerce,
information technology.
Objectives of the Study

1. To study how e-commerce aid in the economic development of developing countries.

2. To identify the relationship between e-commerce and emerging market.
3. To identify the significant impact of e-commerce on emerging market.
4. To assess the influence of e-commerce in developing an economy.
5. To study the impacts of e-commerce in emerging markets.
6. To study social e-commerce in emerging markets.

Scope/Limitations of the Study

This study is on the significance of e-commerce in emerging markets.

Limitations of study
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data collection (internet, questionnaire and
interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.

What is the significance of e-commerce in emerging markets?

E-commerce has significant impact on emerging market. E-commerce has been hailed by many as an
opportunity for developing countries to gain a stronger foothold in the multilateral trading system.
Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly
less.
What is electronic commerce (e-commerce)?
The term electronic commerce (ecommerce) refers to a business model that allows companies and
individuals to buy and sell goods and services over the Internet. Ecommerce operates in four major market
segments and can be conducted over computers, tablets, smartphones, and other smart devices. Nearly
every imaginable product and service is available through ecommerce transactions, including books, music,
plane tickets, and financial services such as stock investing and online banking. As such, it is considered a
very disruptive technology.

 Ecommerce is the buying and selling of goods and services over the Internet.
 It is conducted over computers, tablets, smartphones, and other smart devices.
 Almost anything can be purchased through ecommerce today.
 It can be a substitute for brick-and-mortar stores, though some businesses choose to maintain both.
 Ecommerce operates in four market segments, including business-to-business, business-to-consumer,
consumer-to-consumer, and consumer-to-business.
Ecommerce has helped businesses (especially those with a narrow reach like small businesses) gain access
to and establish a wider market presence by providing cheaper and more efficient distribution channels for
their products or services. Target (TGT) supplemented its brick-and-mortar presence with an online store
that allows customers to purchase everything from clothes and coffeemakers to toothpaste and action
figures right from their homes.

Ecommerce operates in all four of the following major market segments. These are:

 Business to business (B2B), which is the direct sale of goods and services between businesses
 Business to consumer (B2C), which involves sales between businesses and their customers
 Consumer to consumer, which allows individuals to sell to one another, usually through a third-
party site like eBay
 Consumer to business, which lets individuals sell to businesses, such as an artist selling or licensing
their artwork for use by a corporation

Providing goods and services isn't as easy as it may seem. It requires a lot of research about the products
and services you wish to sell, the market, audience, competition, as well as expected business costs.

Once that's determined, you need to come up with a name and set up a legal structure, such as a
corporation. Next, set up an ecommerce site with a payment gateway. For instance, a small business owner
who runs a dress shop can set up a website promoting their clothing and other related products online and
allow customers to make payments with a credit card or through a payment processing service, such
as PayPal.

Special Considerations History of Ecommerce

Ecommerce has changed the way people shop and consume products and services. More and more people
are turning to their computers and smart devices to order goods, which can easily be delivered to their
homes. As such, it has disrupted the retail landscape. Amazon and Alibaba have gained considerable
popularity, forcing traditional retailers to make changes to the way they do business.

But that's not all. Not to be outdone, individual sellers have increasingly engaged in e-commerce
transactions via their own personal websites. And digital marketplaces such as eBay or Etsy serve as
exchanges where multitudes of buyers and sellers come together to conduct business.

Most of us have shopped online for something at some point, which means we've taken part in ecommerce.
So it goes without saying that ecommerce is everywhere. But very few people may know that ecommerce
has a history that goes back before the internet began.
Ecommerce actually goes back to the 1960s when companies used an electronic system called the
Electronic Data Interchange to facilitate the transfer of documents. But it wasn't until 1994 that the very
first transaction took place. This involved the sale of a CD between friends through an online retail website
called NetMarket.

The industry has gone through so many changes since then, resulting in a great deal of evolution.
Traditional brick-and-mortar retailers were forced to embrace new technology in order to stay afloat as
companies like Alibaba, Amazon, eBay, and Etsy became household names. These companies created a
virtual marketplace for goods and services that consumers can easily access.

New technology continues to make it easier for people to do their online shopping. People can connect with
businesses through smartphones and other devices and by downloading apps to make purchases. The
introduction of free shipping, which reduces costs for consumers, has also helped increase the popularity of
the ecommerce industry.

Advantages and Disadvantages of Ecommerce

E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a week.

 Increased selection: Many stores offer a wider array of products online than they carry in their
brick-and-mortar counterparts. And many stores that solely exist online may offer consumers
exclusive inventory that is unavailable elsewhere.

But there are certain drawbacks that come with ecommerce sites, too. The disadvantages include:

 Limited customer service: If you shop online for a computer, you cannot simply ask an employee
to demonstrate a particular model's features in person. And although some websites let you chat
online with a staff member, this is not a typical practice.
 Lack of instant gratification: When you buy an item online, you must wait for it to be shipped to
your home or office. However, e-tailers like Amazon make the waiting game a little bit less painful
by offering same-day delivery as a premium option for select products.
 Inability to touch products: Online images do not necessarily convey the whole story about an
item, and so e-commerce purchases can be unsatisfying when the products received do not match
consumer expectations. Case in point: an item of clothing may be made from shoddier fabric than
its online image indicates.

Pros
 Is convenient
 Offers a wider selection of goods and services

Cons
 Limited customer service
 Lacks instant gratification
 Products can't been seen or handled until delivered
HOW DIG IT AL M A RKE T ING IS HE L P ING E - C OM M E RCE T O
G ROW

Digital marketing has penetrated into every field. The primary reason behind this phenomenon is that
business processes are evolving very quickly and there are a lot of experimentation and changes done in the
industry. We are getting diverted by one or the other upcoming trends. Coming to consumers, we can’t
pretend about them as their behaviour is changing by every minute. Digital marketing as a mechanism can
easily adapt to these changes.

Background of the study

E-commerce, is more than just electronics and commerce added together. It represents an entirely new way
of doing business over a medium that changes the very rules of doing business. It is therefore, far more
about strategy and business management than it is about technology. E-commerce and the internet, if
correctly utilized for development, can be instruments for ensuring future sustainable economic growth.
Throughout the world, the profound impact of electronic commerce in the economics and societies of the
glob will no doubt improve economic efficiency, competitiveness, and profitability (for those engaging in e-
commerce) and, therefore result in the development of the information society. E-commerce and the new
emerging digital technologies and services can be tools for development and help improve the livelihood of
millions across the globe, by linking up remote regions and bringing together scientist, administrators
development professionals, managers, and people into projects and programmes to promote economic and
social development
The Internet revolution was really about people customer and fundamental shift of market power from the
seller to buyer. In the new economy customers expectations are very different than before. A company
understanding of this difference and its ability to capitalize on it will be the key to success. The web, the
internet and emerging computing and communication technologies have redefined business erasing
traditional boundaries of time and geography and creating new virtual communities of customers and
suppliers with new demand to product and services. E-commerce only forms a fragment of e-business.
Earlier companies had web sites displaying the company products etc. then they started to use the e-
commerce as one of the distribution channel in addition to the existing system for sales that is e-commerce.
The term Electronic commerce or e-commerce consists of all business activities carried on with the use of
electronic media, that is, computer network. It involves conducting business with the help of the electronic
media, making use of the information technology such as Electronic Data Interchange (EDI). In simple
words, Electronic commerce involves buying and selling of goods and services over the World Wide Web.
Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to
someone sitting miles apart just by click of a mouse. Shipping method is generally used for the delivery of
the goods ordered. Every Bank which is highly leading now performs their transaction through computer
and computer is not only the concept can make off the transaction automatic. All the commercial application
now transfers to the concept of e-commerce and is one of the very important aspects for carrying bank
transactions falsity. In the commercial world surrounded by highly competitive and volatile market
conditions, any new concept or technology would be acceptable only if it provides strong benefits to all
concerned. Ecommerce offers some distinct advantages. The E-commerce is more than just electronics and
commerce added together. It represents an entirely new way of doing business over a medium that changes
the very rules of doing business. It is therefore, far more about strategy and business management than it is
about technology (ILO, 1999). E-commerce and the internet, if correctly utilized for development, can be
instruments for ensuring future sustainable economic growth through the promotion of retail businesses in
Nigeria. Throughout the world, the profound impact of electronic commerce in the economics and societies
of the globe will no doubt improve economic efficiency, competitiveness, and profitability (for those
engaging in e-commerce) and, therefore result in the development of the information society. E-commerce
and the new emerging digital technologies and services can be tools for development and help improve the
livelihood of millions across the globe, by linking up remote regions and bringing together scientist,
administrators development professionals, managers, and people into projects and programmes to promote
economic and social development (Goldsmith & McGregor, 2000). The general category of e-commerce can
be broken down into two parts which are E-merchandize and E-finance.
E-merchandiseis area that concerns the retail business and the focus of this study. E-merchandize involves
selling goods and services electronically and moving items through distribution channels, for example
through internet shopping for groceries, tickets, music, cloths, hardware, travel, book, flower or gifts.
Ahmed (2001) reported that the enormous flexibility of the internet has made possible what is popularly
called e-commerce, which has made inroads in the traditional method of business management. All facets
the business tradition with which we are accustomed in physical environment can be now executed over the
internet including online advertising, online ordering, publishing, banking, investment, auction and
professional services.
E-commerce involves conducting business using modern communication instrument: telephone, fax, e-
payment, money transfer systems, e-data inter-change and the internet. E-commerce is not only a new
technology and a new frontier for global business and trade, it is also still evolving. It is essential, therefore
for Nigerians to understand in detail what is e-commerce, what are their challenges, and opportunities it
holds, lastly what can be done to harness the benefits from e-commerce. All these are being focused upon in
this study.
It is important to elaborate on the definitions of e-commerce as that will help determine the scope of the
technology and how it can be applied into retail business. E-commerce has been simply defined as
conducting business on-line. The organization for economic cooperation and development (OECD) defines
electronic commerce as a new way of conducting business, qualifying it as business occurring over network
which use nonproprietary protocols that are established through an open standard setting process such as the
internet (OECD, 1999). This definition distinguishes it from electronic data interchanges (EDI) type
proprietary based networks or intranets that were not based on an open (and therefore, not cost effective
information infrastructure) like the internet. In the WTO work programme on electronic commerce, it is
understood to mean the production, distribution, marketing, sales or delivery of goods and services by
electronic means. A commercial transaction can be divided into three main stages; the advertising and
searching stage, the ordering and payment stage and the delivery stage. Any or all of these may be carried
out electronically and may, therefore, be covered by the concept of electronic commerce. Broadly defines
electronic commerce encompasses all kinds of commercial transaction that are concluded over an electronic
medium or network, essentially, the internet.
First, portability improves bottom line of and organization. And secondly expanded market share, some
component can be handled by multiple customers at the same time.

Statement of the Problem

A study by the United Nations Conference on Trade and Development (UNCTAD) has shown that SMEs,
while generally lagging in ICT, have the most to gain from increases in productivity thanks to e-commerce.
SMEs, however, actually run the risk of missing opportunities in both productivity and profitability by not
engaging in e-business.

Significance of the Study

E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger foothold
in the multilateral trading system. E-commerce has the ability to play an instrumental role in helping
developing economies benefit more from trade. Unlike the requirements necessary to run a business from a
physical building, e-commerce does not require storage space, insurance, or infrastructure investment on the
part of the retailer. The only pre-requisite is a well-designed web storefront to reach customers.
Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly
less.
Definition of terms
E-commerce
It is the buying and selling of goods and services or the transmitting of funds or data, over an electronic
network, primarily the internet. These business transactions occur either as business-to-business, business-
to-customer, customer-to-customer or the customer-to-business.
ICT
Information and communication technology (ICT) is another/extensional term for information
technology (IT) which stresses the role of unified communications and the integration
of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise
software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and
manipulate information.

Economic development
Economic development is the process by which a nation improves the economic, political, and social well-
being of its people. The term has been used frequently by economists, politicians, and others in the 20th and
21st centuries.

E-commerce in India
India has an Internet user base of about 696.77million as of May 2020, about 40% of the population. Despite
being the second-largest user base in world, only behind China (650 million, 48% of population),
the penetration of e-commerce is low compared to markets like the United States (266 million, 84%),
or France (54 M, 81%), but is growing, adding around 6 million new entrants every month. The industry
consensus is that growth is at an inflection point.
In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities. Demand for international consumer products (including long-tail items) is growing faster than in-
country supply from authorised distributors and e-commerce offerings. Long tail business strategy allows
companies to realize significant profits by selling low volumes of hard-to-find items to many customers,
instead of only selling large volumes of a reduced number of popular items. The term was first coined in
2004 by Chris Anderson.
In 2017, the largest e-commerce companies in India were Flipkart, Snapdeal and Amazon. In 2018, Amazon
beat Flipkart and was recorded the biggest ecommerce in India in terms of revenue. In 2020, Flipkart heavily
outsold Amazon by almost two to one by sales during festive retail season.

MARKET GROWTH AND SIZE

India's e-commerce market was worth about $3.9 billion in 2009. As per "India Goes Digital", a report by
Avendus Capital, the Indian e-commerce market is estimated at ₹28,500 Crore ($6.3 billion) for the year
2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India
had a growth rate of 22% over the next 4 years and reach ₹54,800 crore ($12.2 billion) in size by 2015.
Indian e-tailing industry is estimated at ₹3,600 crore (US$800 million) in 2011 and estimated to grow to
₹53,000 crore ($11.8 billion) in 2015. The market went up to $12.6 billion in 2013. In 2013, the e-retail
segment was worth US$2.3 billion. About 79% of India's e-commerce market was travel related in 2013.
According to Google India, there were 35 million online shoppers in India in 2014 Q1 and was expected to
cross 100 million mark by end of year 2016.
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms
of sales. Overall e-commerce market had reached ₹1,07,800 crores (US$24 billion) by the year 2015 with
both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH
recharge with nearly 1 million transactions daily by operator websites. Year 2016 also saw online sales of
luxury products like jewellery also increased. Most of the retail brands have also started entering into the
market and they expect at least 20% sales through online in next 2–3 years. According to Google India
Research in 2016, by 2021 India is expected to generate $100 billion online retail revenue out of which $35
billion will be through fashion e-commerce.
The ecommerce industry was reported at $24 billion in 2017 and was recognised as the fastest growing
industry in India. The ecommerce market grew to $38.5 billion in 2018. It is estimated that one in every
three Indian shops via smartphone and online retailers deliver to 20,000 pin-codes out of the 100,000 pin-
codes in India. As per Goldman Sach, India's e-commerce industry will reach $99 billion in size while
online retail is expected to more than double to around 11% by 2024 from 4.7% in 2019 while increasing at
27% compound annual growth rate (CAGR). The online grocery segment that is below $2 billion will reach
$29 billion in size by 2024. Online grocery orders will grow from 3,00,000 per day in 2019 to more than 5
million per day by 2024. Non grocery eCommerce penetration will be 16.1 percent by 2021.
As per property consultant Colliers International, the demand for warehousing of 5,000 to 10,000 square feet
size will increase due to COVID-19 lock-downs which lead to a surge in online orders of essential items for
same day delivery especially in tier-1 cities like Mumbai, Kolkata, Bengaluru, Chennai and New
Delhi. Flipkart will debut a hyperlocal service called Flipkart Quick in Bengaluru to start 90 minutes
deliveries. Amazon observed spike in page views with four times increase in “Add to Cart” during the
lockdown, leading to doubling of sales. It also started selling auto insurance in partnership with Acko
General Insurance which is available to users through Amazon app and mobile website. With opening of 10
new warehouse, the count of Amazon warehouse in India stands at 60 across 15 states that has an area
equivalent to more than 100 football fields.
Report from software as a service (SaaS) provider Unicommerce shows increasing penetration of e-
commerce beyond tier-1 cities with major growth coming from tier-2 and tier-3 towns/villages due to
increasing vernacular language content and improving last mile delivery. Consumers are also diversifying
their purchasing option from large scale e-commerce channels like Amazon or Flipkart to specific retail
brand websites. As per Goldman Sachs, three or four players can co-exist in the e-commerce space given the
size of India but travel, food delivery, ride-hailing services will see a maximum of two players capturing the
market. Reliance Jio will increase competition in grocery, fintech, online retail, food delivery. From
February 2020 to June 2020 during the Covid19 lock-down period, e-commerce increased by 117% with the
delivery of only essential supplies that is now bigger than the pre-Covid19 level. Flipkart surpassed 1.5
billion visits per month with 45% growth in monthly active user while 30% growth in transaction per
consumer. Tier-3 markets are showing 53% year on year growth with higher internet penetration and
connectivity. Kinetic Green started selling electric auto rickshaw and golf carts online mainly in eastern and
northern parts of India with a revenue of ₹75 crore in 2019 which now stands at ₹100 crore as of August
2020. E-commerce helped Nestlé increase sales at a rate of 122% which contributes to 3.6% of overall sales
during Q2 of 2020-21. Apple Inc. is opening online channel to sell products in India for the first time during
August 2020 to target the festival seasons.
MERGERS AND ACQUISITION
According to a report by Grant Thronton, as much as US$2.1 billion worth of mergers and acquisitions were
inked in 2017 in the booming Indian e-commerce industry. Here is the list of Mergers & Acquisitions which
happened in India over a period of time:
MERGER OR ACQUISITION TABLE
DATE MERGER / COMPANIES INVOLVED COST
ACQUISITION

May 2014 Acquisition Flipkart acquires Myntra US$300 Million

March Acquisition Snapdeal acquires Unicommerce Undisclosed

2015

April Acquisition Snapdeal acquires FreeCharge US$400 Million

2015

April Acquisition Flipkart acquires PhonePe Undisclosed

2016

June 2016 Acquisition Myntra (owned by Flipkart) acquires Jabong US$70 Million

July 2017 Acquisition Axis Bank acquires FreeCharge US$60 Million

May 2018 Acquisition WalMart acquires Flipkart US$16 Million

January Acquisition Zomato acquires Uber Eats US$350 Million

2020

SOCIAL COMMERCE IN EMERGING MARKET

Understanding the landscape and opportunities for mobile money

The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with
over 350 companies in the broader mobile ecosystem, including handset and device makers, software
companies, equipment providers and internet companies, as well as organizations in adjacent industry
sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los
Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
The GSMA’s Mobile Money programme works to accelerate the development of the mobile money
ecosystem for the underserved.In emerging markets, social commerce has the potential to improve economic
livelihoods for a large amount of the population—particularly within the informal sector, where most people
make their living.1 In doing so, it is becoming an important element of the digital economy: by 2020, global
social commerce sales are expected to triple to $720 billion.2 To better understand the social commerce
business models and the potential opportunities for mobile money providers, the GSMA recently
commissioned a global landscape analysis of twenty social commerce players. Key findings from this
analysis include: • Social commerce positively benefits underserved merchants and customers. Social
commerce enables small merchants and entrepreneurs to build an online presence at minimal cost and
complexity; and for those just starting, it can provide an easy way to set up a business and acquire an initial
customer base. Low-income, rural and price-sensitive customers can benefit from lower prices and better
bargaining power through features such as group buying. • Successful platforms integrate common best
practices into their offerings. These include providing personalised and seamless customer journeys;
creating online user communities that align with the shopping behaviours of the target demographic;
establishing user trust through social interactions and aftersales support; empowering users to share and
influence; and using influencers to endorse products and increase customer bases. • Social commerce acts as
either an e-commerce ‘intermediary’ or a ‘super app’ to varying degrees. Six platform types were identified
depending on a player’s core focus on either social media or e-commerce. Intermediaries generally serve as
a bridge between users and e-commerce or social media. These include international social media platforms,
group buying platforms, and social reselling platforms. Super apps integrate several social and e-commerce
features—such as buying, selling and chatting—on a single platform or interface. These include product
review platforms, social commerce support platforms and e-commerce players from large groups. •
Marketing fees and sales commissions are the most common revenue sources. While there are four main
revenue sources, most social commerce players leverage at least two. Players with a social focus are more
likely to rely on marketing fees as a primary revenue source, while players with an e-commerce focus are
more likely to leverage sales commissions. Some players also charge account fees or payment and logistic
fees. • Mobile money providers can play several roles in social commerce and help formalise the sector. In
most markets, social commerce is not yet designed end-to-end, requiring support for logistics, delivery, and
payments, and leading to frictions in the online journey between merchants and customers. Mobile money
providers can either leverage their existing assets to address these frictions or offer new features and tools
built in-house or through partnerships with third-party providers but must ensure they fully understand the
market dynamics. Providers should develop one social commerce feature and over time integrate other
features and tools. Similarly, providers should prioritise features based on their ease of implementation and
the potential user impact in their market. Where feasible, providers can partner with third parties to quickly
test and launch these solutions.

STRATEGIES FOR EXPANDING INTO EMERGING MARKETS WITH

E-COMMERCE
E-COMMERCE GOES GLOBAL

The growth in e-commerce over the past five years has transformed consumer spending and shopping habits,
affecting emerging and developing countries product pricing, consumer behaviour, lifestyle and products
and goods availability. According to Euromonitor International, global e-commerce is projected to grow at a
constant value Compound Annual Growth Rate (Cagr) of 12% globally from 2015 to 2020. In contrast,
store-based retailing, which continues to be the biggest channel by value, will grow by a Cagr of just 2%
over the same time period. To date, much of this growth has taken place in developed markets; however, as
more consumers in emerging and developing countries gain access to the internet and consumer and investor
interest increases with intensifying retailing competition, e-commerce will create a better business
environment. Emerging market economies will become an increasingly attractive destination for foreign
players looking to expand their global footprint and enhance their product and service offerings, impacting
prices, product quality, variety and the range of services available online. With internet use growing rapidly
across most of the world, retailers and manufacturers seeking to broaden their reach have an unprecedented
opportunity for international expansion through digital channels. Choosing the best markets for an internet -
based expansion and developing an effective model for a chosen market requires careful analysis of the
opportunities and consumer expectations across strategy, payments and logistics to ensure effective market
entrance and prevent expensive missteps. This white paper presents five strategic considerations for
assessing and expanding into emerging and developing countries, identifying market characteristics and
indicators specific to emerging and developing countries that retailers and manufacturers should understand
when selecting a market for entry. Case studies demonstrate how successful retailers have effectively
entered emerging markets by navigating local conditions and consumer preferences.
E-Commerce Sales Outlook for Emerging and Developing Markets: 2015–2020

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2013 2014 2015 2016 2017 2018 2019 2020

KNOW YOUR TARGET MARKET: DEMOGRAPHIC AND INCOME

Understanding local consumers is essential for shaping a successful strategy. Home to over 85% of the
world’s population and totalling six billion people in 2016, emerging markets will continue to drive global
disposable income growth through 2030. As a result of rising income and the expansion of the middle
classes, emerging and developing countries represent attractive opportunities for consumer goods
companies. And internet penetration will continue to grow: Euromonitor International projects the
percentage of the population with internet access in emerging and developing countries will increase from
34% in 2015 to 45% in 2020 and 50% in 2025. This increased access is changing and informing consumers’
decision-making process along the path to purchase. For this reason, it is imperative that companies consider
how demographic factors differ between emerging and developed markets. Age: Rise of the millennial
consumer A natural and gradual shift in consumer demographics will continue to shape commerce around
the globe. Members of the millennial generation, also known as Generation Y or the “Echo Boomers”, were
born between 1980 and 1994 and will take centre stage as consumers in the future. In fact, millennials
represented over 1.5 billion people in emerging markets in 2015. In both developed and emerging markets,
the demographic cohort following Generation X is the first generation to come of age using digital
technology and services, making them a prime audience for retailers to reach through the internet. For this
reason, it is important for companies to understand how to target this segment. Across many markets, this
generation is, on average, more educated, better able to multi-task and has had greater exposure to the world
of information through the internet when compared with preceding age groups. Despite the fact that baby
boomers are currently the largest generation of active workers, millennials have increasingly more
purchasing power and decision-making influence in economies worldwide.
China and India represent the biggest markets of millennial consumers, with over 600 million people
combined in 2015—twice the size of the total US population. Millennials in countries such as Indonesia,
Brazil, Russia and Mexico accounted for over 25% of the total population in each country in 2015. Given
the prominence of this demographic in years to come, it is critical for companies to know how this
generation makes decisions along the purchasing path. Having grown up with the internet, millennials are
highly attached to their smartphones, which they use for browsing, researching products and services,
conducting price comparisons and when companies create a trusted payment environment and comfortable
user experience, completing purchase transactions.
 60%

50%

40%

30%

20%

10%

0%

Income: Expansion of the middle class

In 2016, there will be more than 1.1 billion households with an annual disposable income over US$10,000
(in purchasing power parity terms) across major emerging markets and developing countries. The expansion
of the middle class in these countries continues to bring a new way of living. There is a clear disparity
among the world’s largest emerging markets and the average incomes of their middle income households
from 1995 to 2015. Saudi Arabia, for instance, had the highest average disposable income at US$33,393 in
2015, while Ukraine had only US$3,086—a difference of over US$30,000. At the same time, China has
aggressively grown its average disposable income with 308% (or US$2,337 to US$9,532) period growth.
Similarly, countries like Kazakhstan and Vietnam increased their disposable income by 317% and 107%,
respectively, in the last 10 years. These disparities demonstrate how consumer conditions vary significantly
across emerging and developing countries and highlight the importance of tailoring retail sales strategies to
suit market-specific conditions. For example, retailers and manufacturers should approach consumers in
Brazil differently from those in India.
 Average Disposable Income Climbs across Emerging Markets

40000

35000

30000

Saudi Arabia
25000 Malaysia
Kazakhstan
Argentina
20000
Chile
Poland

15000 Turkey
Mexico
Romania
10000

5000

0
1995 2015 2025

Internet penetration rates

Consumers connecting online Understanding if—and how—consumers access the internet is a second early step for
developing an e-commerce strategy. Access to the internet varies significantly across emerging markets, and
companies seeking to target consumers in these countries will need to understand local internet conditions to develop
an effective strategy for that market. For example, in 2015, the United Arab Emirates had the highest number of
people using the internet at 92% of the population; by contrast, the internet usage rate remained below 50% in Mexico,
Ukraine, Peru, the Philippines and Vietnam in that same year. Many emerging markets are experiencing rapid change
in connectivity: from 2010 to 2015, Chile, Russia and Argentina saw the fastest internet penetration increase, from an
average of 40% of the population using the internet to an average of 70%. In places where this growth has taken place
very rapidly, many consumers are accessing the internet for the first time—and for many of the newly connected, the
idea of shopping online may not yet be intuitive. Further, shopping online versus in-store presents different “risks” to
consumers, including a greater perceived threat of payment fraud, the possibility that a product will not meet the
consumer’s expectations, or that the product will not arrive at all. Retailers in markets where perceived risk is a barrier
will need to work to build greater trust with consumers before they feel comfortable shopping online.
Mobile internet subscription rates
More devices at-hand In some countries, mobile phones are the main way consumers access the internet,
suggesting strong growth potential for m-commerce. The rise in mobile internet access in emerging and
developing countries increased sharply between 2010 and 2015, with the number of mobile internet
subscriptions growing from 299 million to two billion in just five years. China represents the biggest market,
with 660 million subscribers in 2015. Similarly, Brazil, Indonesia and Russia have rapidly increased their
mobile internet subscription rate, collectively representing a total market of over 397 million in 2015. In
countries where mobile is the primary way of accessing the internet, retailers must adjust their strategies to
ensure a very strong mobile experience and be sure they are positioned to take advantage of consumers
shopping on-the-go. For example, companies will need to ensure their website is mobile-optimised, evaluate
whether an app is an appropriate tool considering their value proposition and target audience and look for
ways to use mobile technology outside of the purchase transaction, such as to engage with consumers
through social media.

UNDERSTAND PAYMENT PREFERENCES

The payments dilemma
Tangential to the developmental state of e-commerce in a market, but equally relevant for brands seeking to
enter a market for the first time, is understanding consumers’ preferred payment methods. While card-based
payments are the dominant method of payment in developed markets, cash payments are by far the preferred
method across the consumer populations of most emerging markets. The prevalence of cash can be
attributed to a variety of factors ranging from the dominance of traditional retail and foodservice outlets in
these markets that generally do not accept card payments to credit card application requirements that are
difficult for lower and middle class consumers to meet. It’s easy enough to transact with cash at brick -and-
mortar locations, but cash payments cannot be processed for online transactions, posing a dilemma for
internet retailers—especially purely online players—who want to attract customers from Southeast Asia and
other emerging and developing countries through internet channels.
Case study
Lazada
Lazada launched as a pure e-commerce player in 2012 and quickly grew sales to nearly US$1,025 million
by the end of 2015. Formerly owned by German Rocket Internet, Lazada was purchased by Alibaba in early
2016 and has a strong presence in Indonesia, Malaysia, the Philippines, Thailand and Vietnam, some of the
most cash-prevalent markets in the world. To circumvent the issue and ensure that the majority of potential
consumers in these markets could shop on Lazada’s platform, Lazada implemented a cash-on-delivery
service. This gives consumers the option of either paying online via a card at the time of purchase or paying
in cash when the product is delivered. Allowing cash on delivery has proven to be a very successful strategy.
According to a 2015 interview between the Philippines’ Business Mirror and the CEO of Lazada e-Services
Philippines Inc., 75% of the company’s Philippines revenue comes from cash-on-delivery sales, with chief
executive Alessandro Piscini telling Thailand’s the Nation that approximately 70% of Lazada customers
prefer cash on delivery in that country as well. The paradox of accepting cash There are two substantial
caveats to a cash-on-delivery strategy, however. First, allowing cash-on-delivery significantly increases the
complexity of delivery logistics, wherein logistics divisions or third party logistics companies handling
deliveries on behalf of retailers must prepare employees making deliveries to accept cash and ultimately
deliver the payment back to the retailer. Additionally, some consumers will, upon receiving the product in
person, decide to make an immediate return. That means the delivery person must also be prepared to accept
returned merchandise and store these items until they can be returned to the retailer. These circumstances are
relatively easy to manage when logistics are handled by the retailer directly, for example, in the case of
MercadoLibre’s MercadoEnvíos service or Alibaba’s logistics network. But they make cash-on-delivery
more difficult to establish when a third-party logistics company is used for deliveries or if the notion of
cashon-delivery is not yet commonplace in a market, as is the case in many emerging and developing
markets whose e-commerce markets are not yet heavily consolidated by a small handful of players.
In Mexico, for example, where cash payments account for 82% of all consumer purchase transactions due to the fact
that 51% of the population over the age of 15 was considered unbanked in 2015, many major e-commerce companies
offer cash upon receipt of the product. This is done in an attempt to facilitate online purchases by consumers that
would prefer not to risk their payment information or are cardless. In an interesting strategy, some retailers, including
the leading company in Mexican e-commerce, MercadoLibre, which does not operate stores, allows consumers to
make a purchase online via MercadoLibre and then pay for their purchase in cash at an outlet of the convenience store
chain Oxxo, which has more than 14,000 locations throughout Mexico. This brings to light the second potentially
disadvantageous factor surrounding cash-on-delivery strategies: even in cash-preferred markets, some consumers may
not be interested in paying cash on delivery. Offering cash-on-delivery or the option to pay cash at a brick and mortar
location has not proved to be the panacea for boosting e-commerce in Mexico, where online sales accounted for just
2% of total retailing in 2015 despite the extensive efforts made by companies to facilitate card-less payments. This is
low, compared to global level of 7% as well as in comparison to others in Latin American markets such as Brazil and
Argentina, where online sales accounted for nearly 4% of total retail sales.

There are several hypotheses as to why cash-on-delivery or cash at third-party locations have not proved
popular in Mexico. One of these is that it requires payment to be made in full before receiving the product—
not necessarily an attractive option if retailers and banks provide interest-free financing for in-store and
online, credit card-based purchases. And unlike in developed markets, where such financing is generally
limited to durable goods with high unit prices, this financing is available in emerging and developing
countries across a wide range of product categories, allowing consumers to make payments towards a
purchase over the course of an extended period of time, sometimes up to 18 months. Looked at from another
angle, high-income consumers are more likely to be banked and have access to a credit card or alternate
method of financing beyond what is offered by retailers, as well as a greater ability to make a purchase
without making payments over time, whereas store financing is favoured by consumers who find it
inconvenient or impossible to pay the full cost of their purchase up front. As a result, those who are least
likely to pay by card are also the consumers that are most likely to rely on store-offered financing, an option
that is sacrificed by paying in cash.
Case study
Alibaba
One company that has risen above a complex logistics environment to ensure reliable delivery is Alibaba,
now the largest retailer in China and one of the largest internet players globally. In the earlier days of its
operations, Alibaba relied on local delivery services. But recognising that consumers wanted a high quality
delivery system to match a strong shopping and payment experience, the company formed its own
distribution system to ensure purchases would arrive reliably and within a predetermined time frame. As in
many emerging markets, Alibaba was working to persuade consumers who were not habitual internet
shoppers to increasingly shop online. Building trust amongst consumers, not just during the path to purchase
but also to the very end of the consumer’s interaction with the brand, is a key component in convincing
consumers to even consider the online channel. While not every new retailer in a country can or should build
their own distribution system from scratch, it’s important for companies to commit to providing services that
customers expect. Identifying customers’ preferences and finding logistics partners that can deliver on those
preferences are key tasks for any company seeking to enter a new market. The operational environment Of
course, it is never easy to find or build a high-quality distribution network, and in many emerging markets
the universal challenges associated with efficiently and correctly delivering millions of packages are further
compounded by operational complexities that may be more common in emerging markets than in countries
that currently lead e-commerce sales. The lack of proper infrastructure, for instance, could diminish or
complicate the process for establishing proper business operations in a market. Countries with large rural
populations represent an immense challenge for last mile delivery, while dense urban areas in emerging
markets bring other difficulties, like heavy traffic and other logistical restrictions that make it difficult to
transport goods. In both areas, formal addresses may not be commonplace. These challenges are real and
new entrants should arrive informed and with a plan. At the same time, these market conditions also signal
opportunities for companies that are prepared to adapt to them. For example, companies that plan efficient
delivery routes will likely find that home delivery can be much more cost-effective in densely-populated
cities than less densely-populated ones as seen in the US. This makes it easier to offer low-cost or free
shipping, which consumers across markets identify as one of the key features they expect from internet
retailers.
This is evidenced by retailer Konga.com’s strategy. Konga launched in 2012, selling only to consumers
living in Lagos, later broadening its reach to all of Nigeria. Shipping costs for items purchased on
Konga.com varies by where the consumer is based, with Lagos having the lowest shipping costs. At the time
of this writing, major cities other than Lagos had shipping fees 33% higher than Lagos, while shipping to
locations outside of major cities cost three times as much as shipping to Lagos. A second benefit is that
shipping to major cities is often faster, given that they facilitate more efficient warehouse locations.
Densely-populated cities also tend to have thriving networks of convenience stores and / or independent
small grocers, which make prime pick-up partners especially for pure e-commerce players, who do not have
their own network of brick and mortar stores to rely on as distribution centres. Amazon, for example, is
piloting this strategy in a number of markets, including partnering with convenience store chain Oxxo in
Mexico, as well as 7-Eleven in the US and Canada. Pick-ups at third-party locations are another strategy for
improving retailer margins.
Rural opportunities
Due to the limited infrastructure in many rural areas across the emerging and developing countries, it can be
more challenging for businesses to reach rural markets and get the products consumers purchase online into
buyers’ hands. This makes urban areas an obvious target for emerging and developing countries market
growth, but by no means are they the only option. Thanks to the growing popularity of the internet and
smartphone access even outside urban areas, internet retailers have the potential to boost rural consumption
via digital channels. Limited infrastructure affects internet retailers looking to ship product to rural areas, but
they also impede efforts to establish brick and mortar locations. As a result, consumers in rural areas are
often underserved by store-based channels, making those with digital access receptive to online purchases.
Towards this end, Alibaba has identified growing share in rural areas as a strategic priority. AliResearch,
Alibaba’s research division, estimated in 2014 that by 2016 total e-commerce sales from rural China would
reach US$75 billion. Alibaba plans to reach these consumers by using Taobao stores as pick-up partners,
building rural distribution centres and encouraging more rural sellers to list on the platform.
Emerging and developing
Emerging and developing countries are countries, which don’t match the criteria of developed markets
according to the imf, are classified as emerging and developing. It is composed of 170 countries:
Afghanistan, Albania, Algeria, American Samoa, Angola, Anguilla, Antigua, Argentina, Armenia, Aruba,
Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belize, Benin, Bhutan, Bolivia, Bosnia -
Herzegovina, Botswana, Brazil, British Virgin Islands, Brunei, Bulgaria, Burkina Faso, Burundi, Cambodia,
Cameroon, Cape Verde, Cayman Islands, Central African Republic, Chad, Chile, China, Colombia,
Comoros, Congo, Democratic Republic, Congo-Brazzaville, Costa Rica, Côte d’Ivoire, Croatia, Cuba,
Curacao, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea,
Ethiopia, Fiji, French Guiana, French Polynesia, Gabon, Gambia, Georgia, Ghana, Gibraltar, Grenada,
Guadeloupe, Guam, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, India,
Indonesia, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Kiribati, Kosovo, Kuwait, Kyrgyzstan, Laos,
Lebanon, Lesotho, Liberia, Libya, Macau, Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali,
Martinique, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique,
Myanmar, Namibia, Nauru, Nepal, New Caledonia, Nicaragua, Niger, Nigeria, North Korea, Oman,
Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Puerto Rico, Qatar, Réunion,
Romania, Russia, Rwanda, Samoa, Sao Tomé e Príncipe, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra
Leone, Sint Maarten, Solomon Islands, Somalia, South Africa, South Sudan, Sri Lanka, St Kitts, St Lucia, St
Vincent and the Grenadines, Sudan, Suriname, Swaziland, Syria, Tajikistan, Tanzania, Thailand, Togo,
Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda, Ukraine, United Arab
Emirates, Uruguay, US Virgin Islands, Uzbekistan, Vanuatu, Venezuela, Vietnam, Yemen, Zambia,
Zimbabwe. Developed countries are countries that have a high level of development. According to the
International Monetary Fund (Imf) the following 38 countries are classified as “developed countries”:
Andorra, Australia, Austria, Belgium, Bermuda, Canada, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Israel, Italy, Japan, Liechtenstein,
Luxembourg, Malta, Monaco, Netherlands, New Zealand, Norway, Portugal, Singapore, Slovakia, Slovenia,
South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, United States. Middle class
households are households with between 75% and 125% of median income in a given market.
Impact of e-commerce on emerging market

The internet revolution is really about customers, suppliers, groups, organisations, government, and the
general public. It has created fundamental shift of market power from the seller to buyer taking into
considerations provisions guiding business transaction on the internet. In the new economy customers
expectations are very different than before. A company understanding of this difference and its ability to
capitalise on it will be the key to success. The web, the internet and emerging computing and
communication technologies have redefined traditional boundaries of business in relation to time, geography
and creating new virtual communities of customers and suppliers with new demand for products and
services. Electronic commerce (EC) has been recognized globally particularly in the developed markets as a
mechanism for business organisations to reach global markets and guiding a wide spread of customers in
different geographical locations.

The adoption of e-commerce is widespread and also regarded as an essential tool for the efficient
administration of any organisation and in the delivery of services to its clients. According to Laudon and
Laudon (2013) the trend of e-commerce began in 1995. It requires the digital goods for carrying out their
transactions. Digital goods are goods that can be delivered over a digital network. E-commerce is rapidly
transforming the way in which enterprises are interacting among each other as well as with consumers and
governments. As a result of changes in the landscape of ICTs, e-commerce is now growing rapidly in
several emerging markets and developing economies (UNCTAD, 2015).

E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger foothold
in the multilateral trading system. E-commerce has the ability to play an instrumental role in helping
developing economics benefit more from trade (WTO-2013). The growing use of the Internet, tablet
devices, and smart phones coupled with larger consumer confidence will see that e-commerce will continue
to evolve and expand. The adoption of e-commerce in Nigerian business organisations has increased since
the users of internet in Nigeria has grown from 0.1% in 2000 to 29.5% of its population in June 2010 and
still has the potential to grow higher (Ayo, Adewoye and Oni, 2011). According to Tunde, (2013) Nigeria
recorded an estimated 25 per cent growth in online shopping with revenues valued at N62.4 million in 2011.

E-commerce refers to the use of communications technology particularly the internet to buy, sell and market
goods and services to customers. The Internet has brought about a fundamental shift in national economies
that are isolated from each other by barriers to cross-border trade and investment; isolated by distance, time
zones and language; and isolated by national difference in government regulations, culture and business
systems (Mohammad, 2004).

Electronic commerce has facilitated the emergence of new strategies and business models in several
industries in developing countries, Nigeria inclusive. Significant changes are happening in supermarket
retailing with the introduction of online shopping, especially in terms of channel development and
coordination, business scope redefinition, the development of fulfillment centre model and core processes,
new ways of customer value creation, and online partnerships. In fact the role of online supermarket itself
has undergone some significant changes in the last few years (Irene Yousept, 2004). The electronic
commerce segment of the retail market has witnessed tremendous growth in terms of participation in the
Nigerian economy in the last one year (Adewale, Ayo-Oyebiyi and Adebayo, 2013).

According to Johnson (2012) over 100 firms both local and foreign have shown greater interest in the sector
alleged to worth over $50 billion annually. She said the industry has no doubt opened doors for the coming
generation of young Nigerian entrepreneurs. Electronic commerce industry has no doubt increased the
percentage of local content in products and services as well as increased utilization of local capacity.

Organisations operating in emerging markets like Nigeria cannot compete solely on past record of success in
today’s rapidly changing business environment that is characterized by boundary blurring, disintermediation
and hyper competition. To move ahead of their rivals they need to seek innovation constantly at every level
of activities. Their ability to generate successful business models and strategies as well as new products, will
be the key for their survival in the 21st century. The first step of such innovation is internet, which made the
traditional commerce to evolve in to e-commerce trend. It is surprising however, to note that despite the
enormous benefits derived from e-commerce in the field of business, trade, industry and commerce,
in emerging markets like Nigeria, it is widely speculated by business analysts and stakeholders that most
organisations and business operators hardly embrace the immeasurable advantages of e-commerce in their
businesses.

The present system of business transaction in most organisations in Nigeria is slow as a result of the manual
processes that have become a drawback to operational efficiency as customers are asked to wait indefinitely
on queue or come back another day because of the slow manual process or sometimes. One wonders what a
customer in desperate need of medical attention in the government hospital could do in such a situation.

Despite advances in computer systems and the acceptance of such technologies by organisations in the
developed economies or markets, the same level of adoption is not evident among several organisations in
developing economies or emerging markets like Nigeria, its adoption is very slow and characterized by
infrastructural problem, government policies issue and so on. It is against this background that this research
study is being carried out to investigate the impact of e-commerce on emerging markets.

Emerging Markets: India, eCommerce Statistics and Challenges

The success of Indian eCommerce has risen to such a degree that the country is now reconsidering its ban on
foreign investments in its eCommerce sector. Amazon and eBay, which are currently only allowed to
function as third-party marketplaces, are anxious for a lift on the ban, which will allow them to sell their
own merchandise. But beyond the opportunities soon to be available to the eBays and the Amazons of the
world, U.S. retailers should also be hopeful for what the future holds in India, the world’s second most
populous country.

To fully understand the eCommerce opportunities happening in India, here are a few statistics to put it into
perspective:

1. India’s e-Commerce market grew by 88 percent in 2013 to USD $16 billion.

2. India’s Internet base, as of August 2013, was at 150 million users, representing about 10 percent of the
country’s total population.

3. Popular products sold in India include those in tech and fashion categories, such as mobile phones, iPads,
accessories, MP3 players, digital cameras and jewelry.

4. Indians spend 8 hours per day online according to a study conducted in 2012.
5. Myntra.com just surpassed Flipkart.com as India’s biggest online retailer with 13.17 million unique
visitors in the month of June 2013.

6. The mobile audience in India is growing with 78 percent of shoppers preferring to shop on mobiles for
deals on purchases and with 60 percent shopping on mobiles to save fuel.

7. About 75 percent of online shoppers in India are 35 years old or younger, although those between the ages
of 35 and 44 show the highest usage.

8. Medium-term growth for India’s economy is positive due to its young population, low dependency ratio,
healthy savings and investment rates, and increasing integration into the global economy.

Although the opportunities are vast, doing business in India still carries some challenges, such as a
reluctance from some of the country’s population to shop online.

“Around 30% of people who buy from retail stores actually research about the product online,” said a
reporter for DazeInfo.com. “However, 25% of people are still skeptical about online security and don’t share
their financial information online. 20% people, who blamed high shipping costs as the main reason, follow
this, while 15% are unsure about the handling of the product during transit and receiving the product in a
good condition.”

The difficult shipping situation is primarily due to India’s underdeveloped infrastructure, a common issue
shared by many emerging countries. India, however, has initiated several infrastructure improvement
projects, which will do much more for the country than just easing the logistics of getting products into
online shoppers’ hands.

“The rural roads programme has built more than 300,000km of new roads in rural areas,” explained
FTAdviser.com. “This has resulted in a roughly 50-100 per cent increase in household income for those
affected. More recently, a plan was announced to build 24 cities along the Delhi-Mumbai Industrial Corridor
by 2040, with phase one scheduled for completion by 2019.”

Additionally, U.S. eCommerce companies will be happy to hear that there are no sales taxes assessed on
goods shipped into India. Furthermore, some goods, such as laptops and other electronic products, aren’t
subject to duty. It’s important, however, to understand that there are indirect taxes like a 1 percent landing
charge for all products entering the country. To get an overview of what fees could be tacked onto imports,
DutyCalculator.com is a helpful resource.

Finally, U.S. businesses wanting to take advantage of the growing e-Commerce opportunities in India must
take the language barrier into consideration.

The Most Common Ecommerce Challenges for Online Businesses

1. The need for online identity verification

2. Delivering an omnichannel customer experience
3. Outshining the vast competition
4. The need to revamp selling tactics
5. Shopping cart abandonment
6. Maintaining customer loyalty
7. The headaches of product return and refund
8. The struggle of competing on price and shipping
9. Competing against retailers and manufacturers
10. The heightened demand for data security

Ecommerce challenges can be opportunities

Surviving the fierce ecommerce competition requires outstanding strategies. Be prepared to address all
possible ecommerce problems and focus on building a customer-centric culture. This way, you may not only
address customer service issues but you may also find what makes your customers tick, and offer them an
online shopping experience they'll remember.

FUTURE OF E-COMMERCE IN EMERGING MARKETS

E-commerce is the technology which is expected to become more popular in the future. While e-commerce
is the maturing market, emerging economies are poised to become the next mega market as the adoption of
internet rises gradually. Emerging markets are the hotbeds for e-commerce that comes with unique
opportunities and challenges across the regions.

In emerging markets, the e-commerce has been growing exponentially, and at a rate may soon surpass the
developed countries in 2018. As, e-commerce achieves higher penetration rates in developing countries, and
it will overcome obstacles to adopt the high-speed networks which are fast enough for Smartphone and
shipping cost.

Future of Ecommerce in Emerging Countries

These obstacles can only be overcome by better infrastructure and greater scale. As, the popularity of e-
commerce grows in some of the major industry sectors like retail, manufacturing, online businesses,
logistics and supply chains, etc. A larger share of the online population will be purchasing online goods by
2018 in many countries. Around 50% of the population in emerging markets will shop online by 2018,
which is not far from the average penetration of 63% in developed countries.
The growth of E-commerce in Emerging Markets

The future potential growth for e-commerce across the developing world is quite strong enough. The total
annual online retail sales across our markets (Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia,
South Africa and Turkey) could reach up to 3.5 trillion and has impacted the companies across multiple
industry sectors like retail, finance, manufacturing, security, and technology. The main drivers behind this
soaring demand for online shopping are the rapid increase in internet access as well as expanding incomes.

The emergence of e-commerce over past decade has radically transformed the economic landscape and has
found the great amount of increase in the factors that led to the development of the internet. While
developed countries who have been offering e-commerce have shown some impressive performance in their
respective economies.

7 BENEFITS OF ECOMMERCE TO ORGANIATION

Around 50% percent of people in emerging markets will shop online by 2018 which catch up quickly to the
average of 63% in developed countries. For example in India, nearly 2/3 of the internet access is done on
Smartphone whereas in China 3/5 is done. While, China and India are still dominating the e-commerce
market outside the US, companies in Africa, Southeast Asia, and Latin America have helped in the
makeable growth of their respective regions. The current scenario of online marketing in these countries is:-

China

China is the largest and most innovative retail e-commerce market all over the world. Online retailing in
China is expected to grow from 17% in 2017 to 25% by 2020. Alibaba dominates the e-commerce sphere in
China and in many parts of Asia which accounts for 1/10 of China’s total retail sales.

India

E-commerce has transformed the way business is done in India. Due to the increase in smartphones ad
mobile phone, the online shopping has resulted to rise in India gradually. Flipkart and Snapdeal are the two
most dominating online stores dealing in India. The value of e-commerce market is expected to cross $50
billion by the year 2018.
Africa

In Africa, some of the countries like Kenya, South Africa, Nigeria etc are experiencing information and
communication technology revolution which is increasing the access to mobile banking. Over 60% of Africa
has mobile phone coverage and over 10 times as landline phone in use. Alongside, a growing middle class in
Africa, e-commerce growth is creating the foundation around each region.

Latin America

By 2019, 15.1 million people in Latin America are expected to buy goods and services through online which
is a dramatic increase from 12.1 million in the years 2016. According to the survey, it is clear that the e-
commerce market for Latin America is still smaller than Asia or other countries.
E-commerce Drivers in Emerging Markets

With the use of e-commerce, accelerating on the back of improved internet penetration in emerging markets,
it is important to understand the specificities of customers and how they approach for online shopping.
Unlike, in most advanced economies, both the choice and range of goods offered by web retailers in
developing markets are limited.

To provide an expansive range of payments options is also the key factor which reaches to a wider audience,
as most of the emerging nations are significantly under banked. Some of the e-commerce drivers in
emerging markets state that:-
  Choice and range enhanced by global shipping

There are many retailers in developing countries who have limited stock of goods. Due to which domestic e-
commerce in some of the regions can, therefore, be limited in terms of international products. For ex- China
has low-cost wealth for fashion and electronic products, but if we search for specific types of authentic
brands such as Gucci handbags, etc can be difficult.

Nonetheless, the segment faces challenges and remains held on at the border controls during busy festive
periods and the lengthy return time for damaged products.

 Emerging consumers more active in social media shopping

Although, the use of Smartphone and mobile phones or laptops or desktops boosts up the internet
penetration rates, emerging market consumers are well ahead of their counterparts by using the handset to
shop. The importance of mobile phones is a necessity rather than a choice to shop.

Many emerging markets in Asia, Pacific, Africa, etc are mobile first enabled device accessed by consumers.
Laptops or desktop are simply found in much fewer homes rather than developed countries.

 A range of payments to server underbanked shoppers

Many emerging markets have a large number of underbanked populations. In Brazil, more than 15+
population held with no bank accounts. In order to reach a wider audience, online retailers should provide as
many payment options as possible for their customers so that their customers do not face these disruptive
issues.

Whereas, in countries like USA & UK payments are primarily be carried out online via bank card. China
accepts stand-alone, mobile phone credit card and of course cash on delivery. The online retailer's primary
goal must be to survive in cash driven environment which still dominates the most of emerging markets.
Challenges Faced by E-commerce in Emerging Markets

It is easy to connect with new customers by expanding into new international markets especially with the
help of online channels. For e-commerce portal to achieve the growth in new markets, they must use local
languages to communicate & connect with the customers. Indeed, nearly 60% of customers spend their time
more on e-commerce websites.

But companies must also look at some of the challenges when viewing international expansion
opportunities. Here are several key challenges that are faced by e-commerce in emerging markets:-

 Technical infrastructure

To launch sites in international markets does not mean that those websites must be hosted by servers in those
markets. Many times, it is not possible due to the local infrastructure limitations. Latency issues are usually
common when robust solutions are used which smartly distribute the load of a server across large regions
such as Europe.

 Logistics status

Internet and e-commerce have ushered in the era of untold changes in culture, conversation, and
consumption.According to the survey, a provider for international services for businesses, savvy companies
that ship overseas, have increased their revenue up to 17%. Further, some of the international markets are
famous for local corruption.
  In-market customer support

Companies keen to expand their business in international markets, but they must not forget that customer
support is the most vital aspect of their business. If your business provides customer support to your
customers through email or phone call or live chat, etc it must deploy a localized version for the new
consumers too.

 Relevant Payment method

Most of the payment providers by market allow for simple adoption in CRM platform. You must look for
the partner who can identify the proper payment methods for each market. Therefore, there must be proper
arrangement for payment options for your business and customers too.

E-commerce booms in emerging markets

E-commerce continues to soar in emerging markets, driven by growing middle classes, increased internet
penetration, and the expansion of mobile commerce.

The e-commerce potential of developing countries has long been clear. A 2015 survey conducted by Credit
Suisse Research Institute on the latest emerging consumer showed that the overall annual online retail sales
across surveyed markets – which included China, Brazil, India, Mexico, South Africa, Russia, Saudi Arabia
and Turkey – could reach $3.5 trillion USD as e-commerce spending converges with existing levels in
developed countries. In addition to the rapid rise in internet access, other factors propelling online retail are
expanding incomes, which are resulting in a larger emerging middle class shopping online for products and
services.

Mobile commerce leads the way in emerging markets

The majority of consumers from emerging markets are predominantly making online purchases through
smartphones rather than by means of the fixed-line-based internet, due to the fact that in regions which
include Asia Pacific, Latin America and Africa, mobile handsets are the first web-enabled device the
majority of the populations have access to. Already fully established e-commerce markets may have much
higher mobile device counts and internet access, however, consumers in developing countr ies make greater
use of smartphones to shop compared to their wealthier counterparts.

According to the survey conducted by Credit Suisse, if internet usage across the developing countries
reaches the levels found in developed countries, this would result in an additional one billion internet users
in the nine countries surveyed, with India and China likely to have the largest number of prospective
consumers to this projection. At the time the survey was conducted, two-thirds of the internet access was
through smartphones in India, and close to three-fifths in China. This indicates the importance of having a
well-thought-out mobile commerce strategy for companies planning to benefit from the ongoing e-
commerce boom in emerging markets.

Current developments

Although developing countries still need to catch up with developed countries in terms of e-commerce
infrastructure, they are likely to see stronger sales growth in the future. Because of this, the global e-
commerce landscape may change rapidly over the course of the coming years.

According to LSE’s Emerging Markets Forum:

“While China and India continue to dominate the e-commerce market outside of the US, companies in
Africa, Southeast Asia, and Latin America have helped spur growth in their respective regions and should
be watched as potential global competitors in this space.”

A good example is Indonesia, which has set itself apart as a mobile-first country. It was recorded that in
2015 more than 70% of Indonesia’s online sales were made through mobile devices. Latin America’s e-
commerce market, meanwhile, reached $100 billion in 2018 and is expected to grow by 25% to the end of
2021. With three Latin American nations (Brazil #2, Mexico #6, and Argentina #8) in the top 10 countries
overall for total internet usage, yet with rates of online shopping that lag behind those seen in the United
States and Canada, the fundamentals are in place for further growth.

Source: Latin American Business Stories/Americas Market Intelligence

Developing countries currently present a variety of unique opportunities in maturing to some of the biggest
e-commerce segments. Their shortcomings, such as payment challenges and poor logistics infrastructure
mean there is also significant untapped potential, which if tapped into could lead to continuous progress. An
expanding middle class, with more spending power, will also continue to boost e-commerce markets in
emerging regions.
Reasons Why E-Commerce Is Set to Grow in Emerging Markets
The Emerging Consumer Survey 2018 shows that today's emerging consumers are just as connected as
their peers in Europe or the USA, and are as likely, if not more so, to opt for online retail
services. Smartphones are a key driver for online access.

The rapid adoption of smartphones and subsequent access to the internet has allowed emerging market
consumers to be a major global force across a range of online activities including online retail, gaming
and eSports. Internet access among Emerging Consumer Survey respondents is now around 80 percent or
more in all countries except Indonesia and South Africa. Quite clearly, lower average spending power has
not deterred consumers across our emerging economies to gain access to the internet and start benefiting
from its range of services. In conjunction with total population sizes, it clearly makes them stand out among
the economies surveyed as the biggest online retail markets.

There is huge growth potential for online retail. We note that current online spending of around USD 1.29
trillion across the economies surveyed would increase to around USD 2.7 trillion if the share of online retail
spending were to increase to just 25 percent in China and 15 percent elsewhere, and assuming that total
retail spending increases at 5 percent per year.

In our view, there are a number of factors indicating that online retail spending across emerging markets is
far from played out.

1. Urbanization Coincides with Greater Propensity to Shop Online

As urbanization is set to continue to rise across emerging markets, it should coincide with a
growing share of online consumer spending in our view. This is due to the fact that greater
urbanization and population density help to ease the logistical challenges that online companies
face when developing their services.

2. FMCG and Food Delivery to Support Growth

At present, online shopping is dominated by more price-elastic consumer items such as books, electronics or
apparel. Going forward, however, we expect stronger online retail growth to be generated by so called fast -
moving consumer goods (FMCG), such as beverages, food or toiletries. To indicate the upside potential of
FMCG, we note that, in Europe, only 2.4 percent of grocery sales are made online compared to over 12
percent of other retail sales. Not only is the share of FMCG and groceries purchased online very low (with
the exception of China), but continued urbanization should also help to lower logistical challenges.

3. Traditional Retailers Developing Online Capabilities

Given their dominance in terms of market share, it seems that only a few companies have been quick to
realize the demand potential for e-commerce services. As a result, companies such as Amazon have been
able to grab market share, leaving traditional retailers under significant pressure due to their lack of online
presence. Recently, omni-channel strategies (e.g. offline retailers developing online capabilities) have
become increasingly popular. For example, Google and Walmart are cooperating in the US, while Lidl has
set up a collaboration with DHL in Germany. These developments are likely to intensify competition among
the various companies active in the segment, but should still allow for continued growth in online consumer
spending.
4. Pure-Play Online Companies Expanding Offline Offerings

Though connectivity and mobile access are the most relevant factors for more traditional purchases, other
factors such as improved delivery logistics, ease of buying and retailer presence are also relevant, not least
in the area of online FMCG.
Some of the key online players have realized that they need to expand their service offering to cater for these
consumer demands. Improving consumer access and convenience should help grow e-commerce revenues
further as "saving time" is one of the key reasons why consumers buy online according to Nielsen.

5. Cross Border E-Commerce As an Additional Driver

Greater connectivity allows consumers to become familiar with products and services that are not
necessarily produced locally. According to Nielsen’s 2017 Online Shopper Trend Report, the share of
Chinese consumers who buy products from overseas websites has doubled to 64 percent since 2014.
Although the share of Chinese consumers who buy from overseas websites is rising, we note that the lion’s
share of their buying remains domestically focused leaving lots of potential for further development.

6. Data Analytics Can Drive Online Revenues Further

The proliferation of the number of online sales channels (e.g. desktop, mobile, tablets) implies a growing
need for advertisers and retailers to understand consumer behavior across these channels in order to
maximize the benefit from online sales. Technology, and specifically data analytics, can help in this regard
as these allow for the optimization of consumer marketing, which in turn should help drive online commerce
growth further.

7. Greater Adoption of Mobile Payments in Emerging Markets Drives Growth

Owing to the development of internet access and smartphone ownership, digital non-cash payment systems
are possible. At the same time the intensity of a country's e-commerce activities correlate with the
willingness to make non-cash payments. India is likely to follow China, where the share of cash in retail
transactions has fallen from 61 percent in 2010 to 38 percent in 2016. At the same time, the share of mobile-
based payment transactions has increased to more than 11 percent in China from zero five years ago.

E-commerce growth correlates with non-cash payments

The speed of technological progress and the subsequent sharp decline in the cost of technology has allowed

emerging consumers to leapfrog various stages of development compared to consumers in developed

markets. There is every reason to believe that there is still much to come in this area.

What is an eCommerce Business Model?

Electronic commerce, or eCommerce, is a business model that lets businesses and consumers make
purchases or sell things online. There are six major eCommerce business models:

 Business to Business (B2B)

 Business to Government (B2G)
 Business to Business to Consumer (B2B2C)
 Consumer to Consumer (C2C)
  Consumer to Business (C2B)
 Business to Consumer (B2C)

Emerging Market Under Business- to-Business E-commerce

Electronic Markets For B2B

There are several types of markets structures operating in the B2B electronic market domain. However, we have identified
13 dominant structures based on our study of about 200 B2B market sites in operation today. The selection of B2B
market sites for this study was primarily on the basis of Forbes.com’s 2001 listing of Best of Web B2B sites
The list includes auction sites, catalogue aggregators and exchanges. However there are others that are least understood.
These include extranets, trading partner networks and buyer and supplier centric market structures and consortia
market places. One set of market structures includes Extranets, TPN and web EDI. These are enabled when computers
cutting across organizational boundaries are connected to a single network for the purpose of sharing vital data of
interest to the network members. An Extranet uses Internet protocols and public telecommunication system to securely
share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses.
However, two narrower applications of Extranets are TPN and web EDI. These market structures increase the
collaboration capability of the network members and help in speeding up business processes. They also help
eliminate duplication of resources, cut costs and improve responsiveness of the supply
chain.
The set of market structures, one or a small group of either the buyers or the sellers will initiate the market place, host and
monitor, enroll market participants and moderate the market behavior if required. In a buyer centric marketplace, buyers take
the initiative to host the market and appropriate greater benefits than other market participants and so the suppliers in a supplier
centric market. Two well-known variations of seller and buyer centric market structures are forward and reverse auction
sites respectively. Alternatively, a few buyers belonging to a sector of an industry or a few suppliers of products to
get together and create a consortium market place.
The set of market structures includes Neutral Auctions, Exchanges, Catalogue Aggregators, On-linec ommunity and
Click & Mortar. We define a neutral auction as one in which several forward and reverse auctions are hostedsimultaneously.
Bidders understand that there are substitutable products available for the item that they may be bidding for in one such
auction. For instance, when a second hand capital goods or surplus inventory is put on sale in a site, the items are not
unique to give any significant advantage to the seller. Neutral auctions have contextual relevance only in electronic markets. In
traditional markets, it is practically not possible to know the existence of such substitutable auctions hosted at other
places and participate in those auctions due to high search costs. In some sense, we introduce a new market structure
through our definition of neutral auctions. However, it is consistent with the observation made by Bakos [10] that
when search costs come down, new markets (those infeasible in an era of high search costs) are invariably created.
Unlike an auction, exchanges promote many-to-many relationship. In our definition, any market structure where both
buyers and suppliers negotiate prices, usually with a bid and ask system, and where prices move both up and down
would be classified as an exchange. Typical examples of exchanges include trading in commodity markets such as
metals, crude, bandwidth in telecommunication networks and energy. Catalogue aggregators standardize information
coming from diverse sources to enable comparisons of similar products. Catalogue aggregator acts as a neutral
intermediary and may also provide additional services to buyers such as comparison across
multiple vendors, trust, logistics, and payment mechanism .It is also possible to virtually host a community or special
interest group belonging to one sector of the industry. For instance, a group of neurosurgeons could be organized
into an online community. As the community grows in size and reaches a threshold a virtual market place can be organized.
A large online community attracts the attention of several suppliers of products and services pertaining to the group.
Several firms operating in that sector could target their marketing. Several reputed players operating in traditional B2B markets
have established their presence in the electronic market domain also. The market in such cases is more appropriately defined
as click & mortar. Our definition of the 13 market structures fall under three distinctive categories: collaborative mechanisms,
quasi-market mechanisms and neutral market mechanisms. Collaborative mechanisms consist of market structures that
fundamentally enable the market participants to engage in a variety of collaborative exercises. The first set of
three market structures belong to this category. The second category consists of a set of market structures that have an
inherent bias towards one of the market participant viz., the buyer or the supplier. The bias arises on account of several
factors including the rules governing the market place, the ownership and the market participant initiating it. The second set
of five market structures that we have introduced belong to this category. The last five market structures are characterized by
neutrality in the market.
Irrespective of the type of the market structure each one of them respects several governing principles behind the
functioning of electronic markets. For instance, catalogue aggregators significantly bring down product search costs
and improve transactional efficiency. Auction sites increase the reach of the market and make the price discovery process
very efficient. However, each market structure has specific relevance to organizations.

Business 2 Business (B2B)

In era of internet eCommerce is an emerging pattern in Indian market to sell or buy things via internet.
Every 1 out of 5 customers buying through ewebsites like Amazon, Alibaba, Flipkart, Shopclues of
Banggoods. It is very easy to buy anything through websites. When a seller is selling directly to the
customer, it is called B2C commerce and when a seller is selling via such websites, it is called B2B
Commerce.

Definition

B2B ecommerce which is also known as eCommerce, short for business-to-business and electronic
commerce, is selling products or services between businesses through the internet via an online sales portal.
In general, it is used to improve efficiency for companies. Instead of processing orders manually – by
telephone or email – with ecommerce orders can be processed digitally.

Different Differences between business-to business (B2B) and business-to-consumer (B2C)

When selling to consumers, it is very important to understand the consumers’ feelings. Consumers need to
trust your organisation and they need to feel nice and comfortable when purchasing at your company. It is
all about emotion; it turns out that 20 percent of the decision to make a purchase is logical and 80 percent is
emotional. Facts are being used to justify an emotional choice. Although consumers do have various
emotional motivations to buy products, purchase behaviour is often the same. Consumers are purchasing
products for their own usage, because they like it to buy something new. Most of the times it’s not a
necessity. Therefore, consumers are not buying every day and they are not buying a lot of products at the
same time. In other words, order quantities and order value is relatively small. Also, for a lot of consumer
goods, purchases are being done just once in a longer period of time. Think about a new TV: consumers are
buying a new TV once every couple of years, and they are just buying one (maybe two) TV’s per purchase.
Since consumers are buying because they like it, emotion is an important aspect for B2C companies to focus
on. By having state of the art product design, packages and more, B2C resellers can anticipate on customers’
emotions.

Main features of typical B2B ecommerce

There are a lot of benefits of integrated ecommerce. Sana Commerce has even defined 36 benefits based on
their customers’ experiences and shares the most important ones here. 1.Customer specific pricing 2.Product
discounts 3.Tier pricing 4.Customer specific product catalogues 5.Real-time order placement 6.Re-ordering
7.Order history 8.Facetted search 5. Design of B2B web stores When designing a web store it is important to
keep the design and functionality as light, clean and simple as possible. The focus should be on helping B2B
buyers to navigate through content and not bother them with unnecessary features. The following features
and functionality will ensure your customers have a positive B2B web store experience: Ensure your web
store is fast. Nothing is more annoying for customers than a web store that takes a long time to load. Slow
speed is one of the main rea sons why visitors leave a web store and can also lower your search engine
ranking. Making sure your web store loads within one to two seconds is important for a good user
experience. When considering elements such as full screen video, first think about the impact on your
loading time. Make bulk purchasing easy and fast by providing a multi-add to cart feature and enabling bulk
ordering. Create a responsive website that automatically adapts screen sizes and capabilities to the device a
customer is using e.g. laptops, smartphones or tablets. Offer suitable B2B payment methods such as invoice
billing, credit cards and ACH payment processing. Ensure a consistent corporate identity throughout the web
store so there is uniformity between all the pages. That means keeping the corporate identity layout uniform
throughout your tabs, buttons, commands, imagery, and menus. Usage of design templates will ensure
consistency in your web store. The readability of the website is largely dependent on contrast, color, font
and the use of formatting features. The right contrast between the background of the website and content i s
one of the most basic yet most important web design principles. With regard to the color scheme used,
customers generally prefer to visit light and bright web pages. People process information best in black and
white as our brains are designed for simplicity and efficiency. Similarly, a simpler font will increase the
readability of the web page. Most design experts agree that san-serif fonts work best for online design.
Formatting can also greatly improve the design of your web store. Avoid long chunks of text and instead use
headlines, bulleted lists and bolding to increase readability.

Available B2B applications and software

Here are some of the well-known software companies which offer software services and are used to manage
business's operations and business-to-business customer relations.
 Contalog
 Sana Commerce
 EPiServer
 NetSuite
 Insite
 Hybris

E-commerce in Emerging Market Under Business 2 Government (B2G)

Business to government (B2G) is when a company markets its products and services directly to a
government agency. This agency could be a local, county, state, or federal agency.

An example of a B2G relationship is when an ammunition manufacturer sells ammunition to the US Army.
And an example of a local B2G relationship is when a private engineering company sells its engineering
services to a county government to develop a new water and sewer system for the community. In B2G,
companies typically bid on projects when governments announce Requests for Proposals (RFPs).

Interacting with government agencies is very different from working with other businesses or consumers.
Due to having to deal with bureaucracies, business deals tend to move at a much slower pace than in other
sectors. Ecommerce companies can definitely bid on government contracts, the same as other companies.
Unlike many B2C transactions, however, many government agencies will not go directly to an eCommerce
website and place an order.

There are exceptions to this, of course.

A local government agency could, for example, place an order directly from an eCommerce company for a
part to repair a piece of equipment. It depends on a variety of factors including the size of the agency and the
need.

E-commerce in Emerging Market under Business 2 Business 2 Consumer (B2B2C)

In B2B2C ecommerce, a company sells products to another company which are then sold to consumers. An
example of a B2B2C arrangement is when a wholesale distributor sells merchandise to retail stores that then
sell the merchandise to end users. The B2B2C model is comprised of three parts: the first business (the
business of product origin), an intermediary, and the end user.

There are several different ways the B2B2C model can be used in eCommerce applications. For example, a
company could partner with another company to promote its products and services, giving the partner a
commission for each sale.

The primary advantage of the B2B2C business model for eCommerce companies is the acquisition of new
customers. This is an important consideration for new eCommerce companies that need a way to rapidly
grow their customer base.
E-commerce in Emerging Markets under Consumer 2 Consumer (C2C)

Another model most people don’t typically think of is the consumer to consumer business model. The rise of
the digital landscape has really enabled the concept to take off, with companies like eBay, Craigslist, and
Esty leading the way.

In C2C ecommerce, consumers sell goods or services directly to other consumers. This is most often made
possible by third-party websites (such as the examples we previously mentioned) or marketplaces, that
facilitate transactions on behalf of the buyers and sellers.

These ecommerce marketplaces allow smaller businesses, or even hobbyists, to sell their products at their
own pricing without having to maintain their own online storefront.

E-commerce in Emerging Market Under Consumer 2 Business (C2B)

Typically, when we think of commerce strategies, we tend to think of them from the starting point of the
business. However, consumer-oriented models, like Consumer to business, are growing in popularity.

In the C2B ecommerce business model, individuals sell goods and services directly to companies. We see
this most commonly in websites that allow individuals (contractors or freelancers) to share work or services
they’re skilled in. Often, businesses will put in a request or a bid for that person’s time and will pay the
person through that platform.
One of the most recognizable examples of a C2B business is Upwork, a freelancing platform that connects
organizations directly with talent. It’s marketed is a ‘marketplace for work’ and gives businesses the ability
to find and source project support, ranging for anything from software development and content creation to
UX design and even financial needs for things like bookkeeping or filing tax returns.

Another intriguing, newer example is that of influencer marketing platforms such as Upfluence or GRIN. In
a similar fashion to Upwork, both of these platforms connect businesses with individuals selling services. In
this case, people are ultimately selling the ability expand a brand's reach and visibility by sharing across
their social media networks.

One of the key benefits of this business model is that it allows consumers to set their own price and can also
often help expand their individual reach by giving the more visibility.

E-commerce in Emerging Market Under B2C

B2C (Business-to-Customer) ecommerce is the exchange of goods or services over the internet between
online stores and individual customers.

The origins of B2C for Ecommerce

The origins of ecommerce date back to the late 1990s. With increased internet usage, many businesses saw
the benefits of selling directly to consumers over the web. There are now over 100,000 B2C
ecommerce businesses in the United States alone.

Ecommerce growth is rapidly increasing: online sales predicted by some analysts to grow approximately
10% in 2015 over 2014 levels. The estimated $279 billion worth of ecommerce sales in 2015 compares to
2010 sales of $176 billion. Online sales as a percentage of all retail sales, projected at a range of 9-11% for
2015, still leave the industry significant room for market-share driven growth.

Why B2C Ecommerce is Experiencing Rapid Growth

Ecommerce simplifies the shopping experience for both consumers and vendors. Successful online
stores can be launched in a matter of days, while shoppers appreciate the ease of making important
purchases from the comfort of their own home.

User-friendly design

Shoppers at physical storefronts are acutely aware of the store layout, cleanliness, and ease of finding
products and information. These factors are equally present for ecommerce businesses, with shelves and
shiny floors replaced by:
  Color scheme: A website that's hard on the eyes will turn off some users. Make sure the text is
clearly visible in contrast to the background and the colors reflect your brand — in a good way.
 Navigation: No matter how informative the content or attractive the products, consumers need to find
it. Simple navigation that clearly points users in the right direction is essential for maximizing the
hard work you put in to assemble inventory and
 Layout: Much like navigation, the page itself needs to be presented in an attractive manner. Don't
clutter the page with too much info: use tabbed menus if necessary so browsers aren't overwhelmed.

E-commerce in the time of COVID-19

 The COVID-19 crisis accelerated an expansion of e-commerce towards new firms, customers and
types of products. It has provided customers with access to a significant variety of products from the
convenience and safety of their homes, and has enabled firms to continue operation in spite of contact
restrictions and other confinement measures.
 Despite persistent cross-country differences, the COVID-19 crisis has enhanced dynamism in the e-
commerce landscape across countries and has expanded the scope of e-commerce, including through new
firms, consumer segments (e.g. elderly) and products (e.g. groceries). Meanwhile, e-commerce transactions
in many countries have partly shifted from luxury goods and services towards everyday necessities, relevant
to a large number of individuals.
 Some of these changes in the e-commerce landscape will likely be of a long-term nature, in light of
the possibility of new waves of the epidemic, the convenience of the new purchasing habits, learning costs
and the incentive for firms to capitalise on investments in new sales channels.
 Despite the efforts of some governments to foster e-commerce during the COVID-19 crisis,
persistent digital divides imply that not everyone has been able to participate. Moreover, regulations that are
not adapted to e-commerce can create barriers to firms, such as in the case of emerging omni-channel sales
models or new modes of delivery. While many of these challenges existed before COVID -19, the current
crisis and the new role of e-commerce for individuals and firms has heightened the need for policy action.
o For consumers, systemic challenges related to connectivity, financial inclusion, skills and
trust (e.g. digital security, privacy and consumer protection) have been brought into sharp relief. To address
this issue, governments could expand affordable and quality broadband to rural and underserved areas,
enhance financial inclusion, and foster trust and the acquisition of skills to participate in e-commerce.
o For firms, policy makers should reduce regulatory uncertainty to support the creation of
innovative business models, e.g. in the context of an increasingly complementary relationship between
offline and online sales strategies.
o Governments also need to address the particular need of SMEs, including by ensuring a fair
playing field in the context of intermediated services (e.g. online platforms). Ensuring sufficient competition
in the retail sector and a well-functioning enabling environment for e-commerce, including communication
services, logistics or trade, is also crucial.
The COVID-19 crisis is likely to have long-lasting effects on e-commerce

There has been a shift in demand from brick-and-mortar retail to e-commerce

The COVID-19 crisis has led people in many OECD countries to significantly limit physical interactions.
Self-imposed social distancing to avoid contagion, together with the strict confinement measures
implemented in many OECD countries, have put a large share of traditional brick-and-mortar retail virtually
on hold, at least temporarily (OECD, 2020[1]). In the United States, retail and food services sales between
February and April 2020 were down 7.7% compared to the same period in 2019. However, sales increased
for grocery stores and non-store retailers (mostly e-commerce providers),1 by 16% and 14.8% respectively.
In the EU-27,2 retail sales via mail order houses or the Internet in April 2020 increased by 30% compared to
April 2019, while total retail sales diminished by 17.9% (Figure 1). The resulting shifts from brick-and-
mortar retail to e-commerce are likely significant across countries. For example, while in the United States
the share of e-commerce in total retail had only slowly increased between the first quarter of 2018 and the
first quarter of 2020 (from 9.6% to 11.8%), it spiked to 16.1% between the first and second quarter of 2020.
The development is similar for the United Kingdom, where the share of e-commerce in retail rose from
17.3% to 20.3% between the first quarter of 2018 and the first quarter of 2020, to then rise significantly to
31.3% between the first and second quarter of 2020. Similar changes are also observed for other regions,
including the People’s Republic of China (hereafter China), where the share of online retail in total
accumulated retail sales between January and August 2020 reached 24.6%, up from 19.4% in August 2019
and 17.3% in August 2018.
The COVID-19 crisis has increased the share of e-commerce in total retail

Note: For the United States, data provides estimates for e-commerce as a percent of total retail sales, based
on data from the Monthly Retail Trade Survey and administrative records. Data for the second quarter 2020
are preliminary estimates. For the United Kingdom, data provides Internet sales as a percentage of total
retail sales. Quarterly data are simple averages over monthly estimates. For the 27 members of the European
Union (EU-27), data indicates the percentage change of retail sales compared to the same period in the
previous year. Total retail sales exclude motor vehicles and motorcycles. Retail sales via mail order houses
or via Internet includes retail sale activities where the buyer makes his or her choice on the basis of
advertisements, catalogues, information provided on a website, models or any other means of advertising
and places his or her order by mail, phone or over the Internet. Only the latter can be considered e-
commerce according to the OECD definition. See (OECD, 2019) for a discussion on e-commerce
definitions.
Source: OECD’s elaboration based on data from the US Census Bureau, the Office for National Statistics in
the United Kingdom and Eurostat.

While official statistics are not available for most other countries, estimates suggest that online orders were
up across several regions during the first half of 2020, including Europe, North America and Asia -
Pacific (OECD, 2020[2]). For Asian-Pacific countries, e-commerce had already increased significantly
during the first quarter of 2020, while the increase occurred later in Europe and North America, namely after
several OECD countries followed Italy’s example and introduced confinement measures within a short
period of time of each other. The fact that Google searches for delivery options almost doubled in some
countries before actual confinement measures were brought in place (e.g. Germany, United Kingdom)
thereby illustrates the close relationship between consumer expectations, government action and behavioural
change (Figure 2).
Google search interest in “delivery”, selected OECD countries (February to April 2020)

Note: Axis represents search interest (all categories) for the term “delivery” (or equivalent in each country)
for a given date and country, relative to the highest search interest for the term “delivery” (value of 100)
observed in the considered period and country. Rolling three-day averages. For example, the highest number
of searches for “delivery” in the UK occurred on 24 March 2020 (100). The three day average for that day
(23-25 March 2020) is 91 (depicted). The number of searches at this point in time was around 9 times higher
than it was around 31 January 2020. The confinement date is the day at which stay at home requirements
were introduced that required “not leaving house with exceptions for daily exercise, grocery shopping, and
‘essential’ trips. In Italy requirements became even stricter the 20th of March.
Source: OECD’s elaboration based on Google Trends and Oxford COVID-19 Government Response
Tracker.
 LITERATURE REVIEW.
Gupta (2014) in her paper “E-Commerce: Role of e-commerce in today’s business in Emerging
Markets”, presents a comprehensive definition of e-commerce while isolating it from e-business. The
paper enlists the different e-commerce models i.e. B2B, B2C, B2G and C2C, narratively analysing
the nitty gritties of each. Rina (2016)also elaborates the different applications of e-commerce in
“Challenges and Future Scope of E-commerce in India”, at the same time, defining the degree to which
they are operational in the country.
Gunasekaran, Marri, McGaughey, & Nebhwani (2002) give a broad outlook of electronic commerce within
organisational systems in “E-commerce and its impact on operations management”, defining it with
reference to e-trading and elaborating- how it has permeated every field of business. The paper identifies
the revolutionary role played by earlier internet applications like e-mail and eletronic data interchange and
details the revolutionary changes brought by the internet technologies in manufacturing, marketing,
purchasing, design, production, selling and distribution, warehousing and human resource management.
Internet based technologies have enabled businesses to shorten development, purchase and procurement
cycles, maintain upto date product and market information, significantly increase the speed of
communications and increase the quality of customer relationships by facilitating close contact and
constant communication. The paper studies in depth, the significance of web based technologies in different
business operations, thus, improving their efficiency through effective B2B e-commerce.

Mishra & Kotkar(2015) trace the timeline and development of B2C e-commerce in “A Study on
Emerging of Markets in E-Commerce in India: A Comparative Analysis of Flipkart and Amazon”with its
inception in the
mid 1990s through the advent of matrimonial and job portals. However, due to limited internet
accessibility, weak online payment systems and lack of awareness, the progress was very slow. The Indian
B2C e-commerce industry got a major boost in mid 2000s with the expansion of online services to travel
and hotel bookings which continue to be major contributors even today.Das & Ara(2015) observe in
“Growth of E-Commerce in India”that though online travel and hotel bookings still control the lion’s
share of e-commerce market, their share has comparitively fallen over the years due to the recent
augmentation and consequent rise of e-tailing services. There has been a tremendous surge in the volume of
investment in this sector. With the e-commerce markets in the west reaching their saturation, investors see
tremendous potential in the Indian market, in the light of which, many start ups have received funding
from venture capitalists and private equity firms. China's Alibaba Group and affiliate Ant Financial
became the largest shareholders of One97 Communications, the parent of Indian e-tailer Paytm, by
investing $680 million, in 2015 (Aulakh, 2015).
To tap and $210 million in Ola cabs. (Mac, 2014). Similarly, New York firm Tiger Global
Management has funded companies such MakeMyTrip, Flipkart, Myntra and Quickr. The availablity of
funds has presented a favourable ecosystem and growth opportunities for big as well as small companies. It
has enabled local startups to survive in cut throat competition against foreign giants and has facilitated the
penetration of e-commerce to every facet Growth of E-commerce in India: An Analytical Review of
Literature of human life; such that the differntiation between e-commerce and traditional buisness is
getting blurred.(Aggarwal, 2014).
Through “Probles and Prospects of E-Commerce”, Raghunath & Panga (2013) present a
comprehensive analysis of various nuances of e-commerce while accentuating that, in present time every
business activity, be it advertising, ordering, payment etc, can be performed in the digital ecosystem. The
paper also enlists numerous points on the importance of e-commerce which are responsible for its
development as the new convention. It has enabled the creation and exploitation of new business and
services. E-commerce has not only augmented the performance of internal business management, but,
has also enabled better customer relationships by promoting a business model that is essentially based on
information sharing. The accessibility of internet connectivity and other online tools herald a new
revolution. SWOT analysis of e-commerce conducted by Awais & Samin (2012) highlights ubiquity,
low operating cost, improved customer interaction and time saving as the unique strengths of e-
commerce,but, at the same timeaccentuates upon the necessity for the firms to adapt themselves to the
changing environment and innovate constantly to come up with better offerings for customers. With an
increase in the number of players in the B2C segment, competition for the first position is set to intensify,
making it imperative for the firms to enhance service quality and to invest in logistics, so as to derive
benefits from increase in the disposable income of houseolds, rise in internet subscriptions and
infilteration of mobile commerce. (Das & Ara, 2015). In the face of rising competition, the survival of the
firms will depend upon how efficiently they are able to bridge the exsting gaps in e-commerce
transactions. The ubiquitous nature of internet has enabled e-commerce to defy geographical boundaries and
permeate different markets,so as to elicit demand from sub-urban and rural areas, after having succesfully
tapped its potential in metropolitan cities. In anticipation of increasing demand from Tier 2 and 3 cities,
many e-commerce firms are undertaking efforts to widen their reach by investing in better infrastructure. In
the light of growing number of websites, offering similar goods and services, greater significance is
being attributed to Internet Marketing, which shall play an unparalleled role in audience acquisition
for e-commerce websites, by displaying the advertisements on search engine result pages and other
portals. Internet Marketing shall not only propel e-commerce but will also emerge as an important support
tool to brick and mortar stores.(Gangeshwer, 2013). Apart from Internet Marketing, Deshmukh,
Deshmukh & Thampi (2013) recognise another important development: m-commerce, which they
identify as a subset of e-commerce. “Transformation from E-commerce to M-commerce in Indian
Context” reviews the current and potential status of e-commerce and m-commerce in the Indian market,
while projecting the latter as the potential future. The paper discerns ubiquity, personalization, flexibility
and immediacy as the singular advantages of m-commerce. The authors affirm the idea that smart phone
penetration and rise in inetrnet user base, mostly driven by youth, shall propel the growth of e-commerce.
Statistical data is used to emphasize that the infrastructure requisite for m-commerce development
already exists, however, it is yet to be properly deployed. With mobile penetration providing a boost to
digital downloads and enabling cheaper monetary transfers, the need of the hour is to enhance customer
confidence by providing them assurance of safety and privacy, which shall accelerate movement
towards a cashless economy. Despite innumerable prospects, the growth of e-commerce in India has not
been upto its full potential due to certain challenges that inhibit the growth of firms. The growth of digital
commerce in India is impeded by inadequate infrastructure, logistics failure, lack of tax uniformity and
declining margins. In the face of intense competition, firms have to pamper the customers with
huge discounts, everyday offers and liberal returns policy which proves detrimental to their profits. As
against the firms following inventory model, e-marketplaces are more adversely affected by subsidies as
they have to offer incentives to the seller for listing their products on the website in addition to the
humungous discounts and wide range of offers to the customers. The increasing fulfillment costs (includes
every cost incurred from the point an order is placed till the time its delivered to the customer.), lack of
last mile connectivity in many sub-urban and rural areas and the rising reverse logistics also hinder the
the growth of e-commerce firms by resulting in huge loss.(Rina, 2016).
 RESEARCH AND METHODOLOGY
The objectives of the study are given below.

Objectives of the Study

 To study how e-commerce aid in the economic development of developing countries.

 To identify the relationship between e-commerce and emerging market.
 To identify the significant impact of e-commerce on emerging market.
 To assess the influence of e-commerce in developing an economy.
 To study the impacts of e-commerce in emerging markets.
 To study social e-commerce in emerging markets.

Limitations of the Study

This study is e-commerce in emerging markets.
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data collection (internet, questionnaire and
interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.

Scope of the study

The potential for e-commerce development is enormous. Now a days one can buy products online through
some sites like Flipkart and Amazon. In the age of e-commerce everything from gym equipment to laptops
are available online. E-Commerce is a super set of business cases. It includes E-trading, E-Franchising, E-
Mailing, E-Engineering etc. Scope of e-commerce can be enumerated as follows:

1. Exchange of digitized information

2. Technology-enabled
3. Customers retention
4. Accounting
5. Supplier integration
6. Support the exchange

1. Exchange of digitized information: The digitized information exchange can represent

communications between two parties, coordination of the flow of goods and service, or transmission of
electronic orders. These exchange can be between organizations or individuals.

2.Technology-enabled: E-Commerce is about technology-enabled transactions. Web browsers are perhaps

the best Know of these technology-enabled customer interfaces. However, other interfaces including
automated teller machines (ATMs) also fall in the general category of e-commerce. Business once managed
transactions with customers and markets strictly through human interaction; In e-commerce, such
transitions can be managed using technology.
3. Customers retention: E-Commerce enables organizations to get classified and customized market
information that helps in retaining customers through fast order fulfillment and effective customers
relationship management (CRM). End-to-End supply chain management in e-commerce provides the
opportunity the overall flow of demand and supply and results in fruitful customers retention.

4. Accounting: Financial accounting, treasury management and asset management are best possible in e-
commerce because of integrated database. Financial planning and strategy determination become more
convenient in e-commerce.
5. Supplier integration: For lowering inventory-carrying costs and broader availability of material and
opportunities suppliers network can be integrated through EDI to implement just-in-time (JIT) inventory
management.

6. Support the exchange: E-Commerce includes intra and interorganizational activities that support the
exchange. The scope of e-commerce includes all electronically based intra and interorganizational activities
that directly or indirectly support marketplace exchange. In this sense, we are talking about a phenomenon
that affects both How business organizations relate to external parties customers, suppliers, partners,
competitors, and markets and how they operate internally in managing activities, processes and systems.

METHODOLOGY
Primary research is defined as a methodology used by researchers to collect data directly, rather than
depending on data collected from previously done research. Technically, they “own” the data. Primary
research is solely carried out to address a certain problem, which requires in-depth analysis.

I had used primary method for collecting responses of people with the help of questionnaires created by me
in google form.
 DATA ANALYSIS AND DATA INTERPRETATION
DATA ANALYSIS
Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal of
discovering useful information, informing conclusions, and supporting decision-making. Data analysis has
multiple facets and approaches, encompassing diverse techniques under a variety of names, and is used in
different business, science, and social science domains. In today's business world, data analysis plays a role
in making decisions more scientific and helping businesses operate more effectively.
I had created 17 to 18 questions to collect responses from people related to my project topic “E-commerce in
Emerging market” with the help of Google forms and Whats app to share links.
Started my questions with “Email Id” to know whoever had responded to my help me in collecting
responses and then continued with next question.
“Gender” by which actually me and the reader of my project will get to know who a male or a female had
responded or the percentage of male or female had responded continued with next question.
“Age Group” to know what age group do the respondents belong. I had asked to fill the options which were
provided by me the particular age group of people from 18 to 60.
Then continued with “Qualification” to know the qualification of the respondent and the options / choices
provided to choose were “Below SSC”, “SSC”, ”HSC”, ”Graduation” and “Post Graduation”.
Moved forward with an idea to know the “Occupation” of the respondent then again thee options provided
were an “Employee”, “Professional”, “Student”, “Housewife” and Others.
And then questioned them their Annual Income with a guessing asked them to choose options from
“Unemployed”, less than 1Lakh”, “Between 1Lakh to 2.5Lakh”, “Between 2.5Lakh to 3.5Lakh” and
3.5Lakh or more.
Then moved on with many more questions related to my topic “E-commerce in Emerging Markets” to know
the choices/views that how much knowledge do they have of e-commerce i.e. internet commerce or internet
transactions in emerging markets.
My 1st question and more questions were as under:-
Do you know the significance of ecommerce in emerging markets and choices were “Yes”, “No” and “Don’t
know”.
Then continued with more questions which are as follows
Are you aware of emerging markets with choices Yes, No, Maybe..
What according to you is the future of ecommerce in India with choices Excellent, Very Good, Neutral, Bad,
Very bad.
From how many years are you using ecommerce with choices less than 1 year, less than 5 year, more than 5
year and don’t know.
For what purpose do you use ecommerce and the choices provided were personal use, business use and both.
From the various types of ecommerce what according to you has the largest market shares and the options
were B2B Commerce, B2C Commerce, B2G Commerce and others.
According to you how is ecommerce helpful to the commerce in emerging markets and the options to
choose were Encourage price transparency, Fastens transactions, Broadens consumer choice and others.
Do you think application of ecommerce has increased marketing in India and the options were Yes, No and
Maybe.
Do you agree that ecommerce as commercial mean with multiple choices and the options were
Strongly disagree, Disagree, Neutral, Agree, Strongly agree.
Do you agree that ecommerce can provide an alternative marketing channel by Eliminating the middleman
with choices Strongly disagree, Disagree, Neutral, Agree, Strongly agree.
Which is the prominent domain in which ecommerce is used in India with some actual options Banking,
Real Estate, Stocks and shares, Matrimony and Others.
What are the challenges to the implementation of ecommerce in India with options Security concern, Lack
of Trust, slow penetration of interest and others.
And ended up my questionnaire with last question
Do you think that the government is doing enough to promote awareness of ecommerce in emerging market
with options Yes, No and Maybe.
Then ended my form with “Thank you”.
 DATA INTERPRETATION
Data interpretation refers to the process of using diverse analytical methods to review data and arrive at
relevant conclusions. The interpretation of data helps researchers to categorize, manipulate, and summarize
the information in order to answer critical questions.

INTERPRETATING MY DATA

1. GENDER

PARTICULARS PERCENTAGE %

MALE 31.1%

FEMALE 68.8%
2. AGE GROUP YOU BELONG TO

AGES BETWEEN PRCENTAGE%

18-28 78.3%
29-39 16%
40-50 6.7%
51-60 15%

3. WHAT IS YOUR EDUCATION QUALIFICATION

QUALIFICATION PERCENTAGE%
BELOW SSC 2.8%
SSC 8.5%
HSC 12.3%
GRADUATION 66%
POST GRADUATION 10.4%
4. YOUR OCCUPATION

OCCUPATION PERCENTAGE%
EMPLOYEE 22.6%
PROFESSIONAL 4%
STUDENT 52.8%
HOUSEWIFE 11.3%
OTHERS 9.3%

5. WHAT IS YOUR ANNUAL INCOME

ANNUAL INCOME PERCENTAGE%

UNEMPLOYED 58.5%
LESS THAN 1LAKH 14.2%
BETWEEN 1LAKH TO 2.5LAKH 13.2%
BETWEEN 2.5LAKH TO 3.5LAKH 5.6%
3.5LAKH OR MORE 7.5%
6. DO YOU KNOW WHAT ARE THE SIGNIFICANCE OF ECOMMERCE IN EMERGING MARKETS

RESPONSES PERCENTAGE%
YES 67.9%
NO 20.8%
DON’T KNOW 11.3%

7. ARE YOU AWARE OF EMERGING MARKETS

RESPONSES PERCENTAGE%
YES 59.4%
NO 22.6%
MAY BE 17.9%
8. WHAT ACCORDING TO YOU IS THE FUTURE OF ECOMMERCE IN INDIA

RESPONSE PERCENTAGE%
EXCELLENT 21.7%
VERY GOOD 40.6%
GOOD 20.8%
NEUTRAL 14.2%
BAD 2.7%

9. FROM HOW MANY YEARS ARE YOU USING ECOMMERCE

NO OF YEARS PERCENTAGE%
LESS THAN 1 YEAR 47.2%
MORE THAN 5 YEAR 7.5%
LESS THAN 5 YEAR 21.7%
DON’T KNOW 23.6%
10. FOR WHAT PURPOSE DO YOU USE ECOMMERCE

USES PERCENTAGE%
PERSONAL USE 55.7%
BUSINESS USE 16.1%
BOTH OF ABOVE 39.6%

11. FROM THE VARIOUS TYPES OF ECOMMERCE ,WHAT ACCORDING TO YOU HAS THE
LARGEST MARKET SHARE

COMMERCE TYPES PERCENTAGE%

B2B COMMERCE 24.5%
B2C COMMERCE 34.9%
B2G COMMERCE 3.8%
OTHERS 36.8%
12. ACCORDING TO YOU HOW IS ECOMMERCE HELPFUL TO THE COMMERCE IN EMERGING
MARKETS

RESPONSES PERCENTAGE%
ENCOURAGE PRICE TRANSPERENCY 24.5%
FASTERNS TRANSACTIONS 39.6%
BROADENS CONSUMERS CHOICE 17%
DON’T KNOW 18.9%

13. DO YOU THINK APPLICATION OF ECOMMERCE HAS INCREASED MARKETING IN INDIA

RESPONSE PERCENTAGE%
YES 73.6%
NO 3.8%
MAY BE 22.6%
14. DO YOU AGREE THAT ECOMMERCE AS COMMERCIAL MEAN
OPINIONS PERCENTAGE%
STRONGLY AGREE 7.5%
DISAGREE 2.9%
NEUTRAL 45.3%
AGREE 35.8%
STRONGLY AGREE 8.5%

15. DO YOU AGREE THAT ECOMMERCE CAN PROVIDE AN ALTERNATIVE MARKETING

CHANNEL BY ELIMINATING THE MIDDLEMAN

OPINIONS PERCENTAGE%
STRONGLY DISAGREE 7.5%
DISAGREE 13.2%
NEUTRAL 34%
AGREE 35.8%
STRONGLY AGREE 9.4%
16. WHICH IS THE PROMINENT DOMAIN IN WHICH ECOMMERCE IS USED IN INDIA

DOMAINS PERCENTAGE%
BANKING 40.6%
REAL ESTATE 12.3%
STOCK AND SHARES 31.1%
MATRIMONY 1.8%
OTHERS 14.2%

17. WHAT ARE THE CHALLENGES TO THE IMPLEMENTATION OF ECOMMERCE IN INDIA

CHALLENGES PERCENTAGE%
SECURITY CONCERN 41.5%
LACK OF TRUST 31.1%
SLOW PENTRATION OF INTEREST 8.5
OTHERS 18.9%
18. DO YOU THINK THAT THE GOVERNMENT IS DOING ENOUGH TO PROMOTE AWARENESS
OF ECOMMERCE IN EMERGING MARKETS
RESPONSES PERCENTAGE%
YES 45.3%
NO 16%
MAY BE 38.7%

These are the interpretation of the data collected by me from 106 persons related to my project .
 CONCLUSION

FINDINGS

• 100 percentage of the students uses the internet.

• More than half of the student says that Flipkart is the most preferred ecommerce website.
• More than half of the students most commonly use the e-commerce website for getting information before physical
store.
• More than half of the students says that they are aware about Decathlon as ecommerce website.
• Less than half of the students says that they know about the Decathlon through word of mouth.
• Majority of the students are satisfied using e-commerce website often.
• Less than half of the students are concerned about the fake products on online purchase.
• More than half of the students says that they use e-commerce website only once in a month.
• Less than half of the students says that KIPSTA is the more preferred brand.
• Majority of the students says that they typically purchase shoes through online purchase.
• Less than half of the students says that they are moderately comfortable while using online purchase.
• Less than half of the students says that privacy concerned once in a while preventing them buying products through
online.
• Less than half of the students prefer cash on delivery while buying the products through online.
• Less than half of the students acknowledge about saving the time while purchasing products through online.
E-commerce has significant impact on emerging market. E-commerce has been hailed by many as an
opportunity for developing countries to gain a stronger foothold in the multilateral trading system...
Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly
less.
• More than half of the students says that description about the product on online is accurate.
• Less than half of the students says that customer service is the best feature about Decathlon.
• Half of the students neutrally satisfied with the Decathlon’s reasonable return and exchange policy.
• More than half of the students gives good rating about Decathlon`s website

SUGGESTIONS

• Company needs to spend a lot on advertising and promotion to create an better reputation among the
public.
• Provide better customer service.
• Need to include varieties of similar items.
• Better if they provide filtered information.

CONCLUSIONS
In this study we have taken cluster sampling method in a selected college, sports students by random
selected students. Decathlon success is a direct result of its detailed pricing and marketing strategies, but
Omnia gave the company the tools to ensure that strategy became a success. After completing this research,
we come to know that Decathlon website is the most preferred website by the sports students. Decathlon has
successfully placed itself into the prospects mind making it as worlds emerging markets with huge sports
products. KIPSTA is the most preferred brand in Decathlon website. Customers gives good rating about the
Decathlon’s service. It provides services through online as well as offline retail shop.
 BIBLIOGRAPHY

• Managerial economics, Author: A.VINOD, First publication in 2009.

• Business research method, Author: Dr.K.VENUGOPALAN, First publication in 2011

WIBLIOGRAPHY

1. www.thebalance.com
2. www.investopidia.com
3. www.corporatefinanceinstitude.com
4. www.yourdictionary.com
5. www.bookauthority.com
6. https://www.academia.edu
7. https://shodhganga.inflibnet.ac.in
8. http://emergingmarkets.com