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
➡️ Marketing and Sales: Platform for sales, Advertising, Promotion, Customer
➡️ 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
Investment Ideas - 12885322