Strategy

Future of e-Commerce:

Uncovering Innovation

www.deloitte.com/in

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Contents

Foreword

Message from ASSOCHAM

Message from ASSOCHAM

Overview of e-Commerce

Innovative and Emerging Business Models

Modern Enabling Technologies

Cyber Security Challenges

Taxation Challenges

The Way Ahead

Acknowledgements

About ASSOCHAM

References

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Foreword

Hemant Joshi

The listing of Alibaba on the New York Stock Exchange

at the valuation of $231 billion has brought global

focus on the e-commerce market. The e-commerce

industry continues to evolve and experience high growth

in both developed and developing markets. With the

emergence of non-banking players in the payments

industry and innovative vertical specific startups, the

Indian e-commerce market is expanding at a rapid

pace. The digital commerce market in India has grown

steadily from $4.4 billion in 2010 to $13.6 billion in

2014 while the global market is forecasted to reach

$1.5 trillion in 2014. Increasing mobile and internet

penetration, m-commerce sales, advanced shipping and

payment options, exciting discounts, and the push into

new international markets by e-businesses are the major

drivers of this unprecedented growth.

The M&A deals (Softbank’s $627 million deal with

Snapdeal, Flipkart acquired Myntra for $370 million,

Ola Cabs acquired TaxiForSure for $200 million) and

sky-rocket valuation of these e-commerce giants rising

in last one year shows that the sector is heating up.

The question would be whether these valuations are

sustainable despite showing no signs of profitability.

The global players like Amazon and Alibaba have deep

pockets to rely on their parent companies for continuous

funding support. The homegrown players would

definitely need different metrics to preserve the investor

confidence build in the sector.

The big retailers are increasingly focusing on their digital

strategies in order to gain...