Industry Analysis (9/10)
E-Commerce Industry🛒📦
E-Commerce has transformed the way of business. The Indian e-commerce market is estimated to be worth over $55 bn in Gross merchandise value in 2021 and is expected to grow to $350 bn by 2030. Young Demography and increasing digital penetration are some key drivers of this sector.
🌟 Cyclicity: This industry is fairly cyclical, better economic conditions would lead
to consumer spending and in turn, make this sector profitable.
🌟 Value Chain:
➡️ Inbound Logistics: Product Sourcing, Vendor contracts, Quality testing
➡️ Inventory Management: Demand forecasting, Warehousing, Working capital
issues
➡️ Marketing and Sales: Platform for sales, Advertising, Promotion, Customer
retention
➡️ Service: Product delivery, Logistics, Return and Redressal
🌟 Revenue Drivers:
➡️ Product pricing margins
➡️ Seller commissions
🌟 Cost Drivers
➡️ Inventory costs: Production, Warehousing
➡️ Infrastructure: Digital Platform, Delivery and Return
➡️ Marketing: Advertisement and Promotions
🌟 Growth Drivers:
➡️ Economic Conditions
➡️ Digital Penetration
➡️ Omni Channel approach
🌟 Key Market Players
➡️ #INDIAMART
