Business models and players in ecommerce industry

Abstract

India’s online retail industry is growing at a fast pace of 50% CAGR over the last five years, thanks to the increase in internet penetration, which is expected to grow at the CAGR of 60% and changes in lifestyle. The entry of new players in the niche segments and the investments by the large brands are the drivers of the industry. Online retail still constitutes only a miniscule portion of the total retail market in India. This shows the volume of untapped potential in Indian market. The growth of e-retail is reflected in the deteriorating financials of the brick and mortar store retailers. There are also other reasons such as economic slowdown and local competition that attribute to the decrease in revenue. This force brick and mortar retailers to have online presence. For example, Shoppers stop, Lifestyle have started to sell apparel and lifestyle products through online.