INDIA ECOMMERCE IN INDIA IS PROJECTED TO BE THE LARGEST AND MOST PROFITABLE NEW 1 BUSINESS STARTUP IN INDIA. THE INDIAN ECOMMERCE MARKET SCALE WAS EVALUATED AROUND $16 BILLION IN 2013, AND IS EXPECTED TO REACH $56 BILLION BY THE FALL OF 2023.1 1 INDIA ECONOMY http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth ‡ PROJECTED MARKET SIZE // Current and Projected Growth Despite challenges to economic growth consistent with an emerging economy, online retail spending in India grew by 67% in 2013, and is projected to grow at a compound annual growth rate (CAGR) of more than 50% between 2013 and 2017 as more customers start purchasing goods online.2 2 1 MARKET SIZE Forrester Research Inc. India Online Retail Forecast, February 2014 – excludes travel. http://www.forrester.com/India+Online+Retail+Forecast+2013+To+2018/fulltext/-/E-RES114981 *VALUES IN $USD BILLIONS PER YEAR // ‡ PROJECTED $231 $52 $17 $15 $12 $110 $345 $78 $27 $25 $30 $356 BRAZIL RUSSIA INDIA CHINA USA UK 2012 2016 eMarketer, February 2013. Includes travel, digital downloads, events, excel gambling. 3 PRODUCT CATEGORIES BY ORDER VOLUME4 1.9 % 1.4 % 0.7% 0.6% 2.2 % 2.2 % APPAREL MEDIA, TOYS & GAMES HEALTH CARE MEDIA CONSUMER ELECTRONICS OTHER eMarketer, February 2013. Includes travel, digital downloads, events, excel gambling. 4 LOCAL SNAPSHOT BEHAVIOR STATISTICS OF ONLINE USERS BUY PRODUCTS EXCLUSIVELY VIA SOCIAL MEDIA.5,7 The Taj Mahal (located in Agra, Uttar Pradesh) stands 561’ tall, took 20,000 workers 22 years, 1,000 elephants hauling materials from all over India and Asia, 28 varieties of precious gemstones to decorate its inlays, and cost the Mughal emperor Shah Jahan 32 million rupees to build in 1653 — over $1b in US currency today.6 PWC- 2013 Shoppers at a Glance; http://goo.gl/SWTqg9 http://www.tajmahal.org.uk/taj-mahal-facts.html 7 http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth 5 6 INDIA CULTURE CONSIDERATIONS INDIA HAS THE SECOND LARGEST POPULATION IN THE WORLD, AND IS THE SEVENTH LARGEST COUNTRY 8,9,10,11 BY GEOGRAPHICAL AREA. ‡ *BILLION PEOPLE, July 2014 est.9 LARGEST POPULATION IS CHINA, AT 1,392,472,656.9‡ INDIA’S POPULATION WILL SURPASS CHINA BY 2028, WHEN BOTH INDIA AND CHINA WILL HAVE POPULATIONS OF OVER 1.45 BILLION.9,10,11 18-24 year-olds are a key economic force behind India’s recent ecommerce boom. Already a major factor behind the growth of the economy, they are expected to represent 64% of the population by 2020.12 http://censusindia.gov.in/ http://worldpopulationreview.com/countries/india-population; 10 http://www.todayonline.com/world/asia/india-population-overtake-china-2028 11 https://www.cia.gov/library/publications/the-world-factbook/rankorder/2119rank.html 12 http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth/ 8 9 COMMERCE EXPERIENCE SOCIAL MEDIA INDIA’S THE THIRD-LARGEST GLOBAL FACEBOOK AUDIENCE POPULATION 13,14 BEHIND USA AND BRAZIL.* *BASED ON PERCENT OF ACTUAL USERS FROM TOTAL POPULATION. 45.6%14 (58m users from BRAZIL 2012 pop: 193,946,886). 78.1%14 (166m users from USA 2012 pop: 313,847,465). DESPITE HAVING MORE PEOPLE THAN EITHER US OR BRAZIL, INDIA’S ACTUAL FACEBOOK USERS ACCOUNT FOR A SMALL PART OF THE 1.2 BILLION POPULATION. HOWEVER, KEY USERS ARE 18-24, THE LARGEST, AND FASTEST GROWING POPULATION SEGMENT.13,14,15,16 11.4%14 (63m users from INDIA 2012 pop: 1,205,073,612).* *100m in 2014 *projected16 http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth/ http://www.internetworldstats.com/stats3.htm 15 http://www.stateofdigital.com/facebook-growth-worldwide/ 16 TechCrunch, “As India user base nears 100M, Facebook hopes to earn big revenue 16 from SMBs.” Mar 1, 2014, Pankaj Mishra 13 14 COMMERCE EXPERIENCE *VALUES IN MILLIONS PER YEAR // ‡ PROJECTED MOBILE MOBILE INTERNET USERS ACCOUNT FOR MORE THAN 60% OF THE USER BASE IN INDIA, WHICH IS FORECAST 17,18 TO REACH 200 MILLION BY 2015. 81.5m *‡ 20m 9.5m Ernst & Young- Rebirth of ecommerce in India, 2012 http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth 17 18 SHOPPING BEHAVIOR PAYMENTS WHILE 44% OF ONLINE SHOPPERS USE CREDIT CARDS, CONSUMERS PREFER TO PAY CASH ON DELIVERY (COD) AS MANY FEEL HESITANT TO 19, 20 SHARE INFORMATION ONLINE. 38m 2015 19 11m 2011 19 The number of users in India making online transactions is expected to grow and expand from 11 million in 2011 to 38 million in 2015.21 http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth Forrester Research, Q3 2011 21 Ernst & Young- Rebirth of ecommerce in India, 2012 19 20