Improved Security, Mobile Technology, Shopping Connectivity accelerating ecommerce-

The e-commerce industry is likely to generate 2.5 lakh jobs in online retail this year, as the hiring in the sector is expected to grow at 60-65%, says a report.

A majority of e-commerce departments and businesses have increased their turnover since last year and present a good opportunity for the industry to develop further, says theAssocham report.

India’s e-commerce market was worth about $3.8 billion (nearly Rs 25,710.8 crore) in 2009, it went up to $17 billion (nearly Rs 11.5 lakh crore) in 2014 and to $23 billion (nearly Rs 1.6 lakh crore) next year. It is expected to touch $38 billion-mark (nearly Rs 2.57 lakh crore) by 2016, it said.

“E-commerce industry is likely to generate nearly 2.5 lakhs jobs in the online retail industry in 2016 including temporary employees, supply chain, logistics, ancillary units etc,” it said.

There are nearly 3.5 lakh people working under e-commerce industry. Also increasing smartphone ownership and investment from retailers are fuelling the rapid growth of mobile-commerce in India.

Mobile-commerce (m-commerce) represents only 20-25 per cent of the country’s e-commerce market. This share is expected to grow as businesses, including those operating in the online to offline space such as taxis and restaurants, look to seize greater market share.

It is also likely to be further accelerated by advancements in mobile technology and improvements in security and connectivity of shopping and payment platforms.

“The hiring activities are expected to grow by over 60-65% in this sector and may help create between 5-8 lakh employment opportunities in two to three years,” Assocham Secretary General D S Rawat said.

The chamber said m-commerce is growing rapidly as a stable and secure supplement to the e-commerce industry.

As per the report, one-third of MBA students from top business schools, including the IIMs, prefer working for the fledgling e-commerce sector, over traditional favourites like consulting and financial services jobs.

“India is successful in becoming the largest e-commerce market in the world. The rapid transformation in logistics, innovation, consumerism and productivity prove to be an interesting case study for other emerging economies,” Rawat said.

Effect of ecommerce – Size of Retail Stores in Malls Shrinking

At present, online retail sales amounts to less than 1% of the total retail sales in India. But the ecommerce industry is growing at a remarkable speed. Result: Offline retail stores will continue to co-exist with online shopping portals, albeit in modified small sizes due to the rise of ecommerce.

Size of department stores and electronic retail stores shrinking

As footfalls decrease in malls, property owners are trying to find new ways to attract visitors. And one of the strategies implemented by them is to reduce store size of retail stores to make way for international brands, entertainment zones and food outlets.

According to Think India, Think Retail 2016 report, from 60,000–70,000 square feet, the size of anchor stores has now been reduced to 20,000–25,000 square feet.

“Our focus is to make the malls much more experiential. The key to success is in having the right tenant mix,” shared Pushpa Bector, Executive VP of DLF Mall of India.

While the space of retail stores is decreasing, the space for food & entertainment zones in malls has grown from 8-9% to 15-20%.

Omni-channel retail will grow

Experts predict that the share of modern retail (malls) in the total retail industry will drop from 17% to 13% in the next 4-5 years. And ecommerce’s retail contribution will reach 11% by 2019.

But the future of India’s potential $1,200 billion retail market belongs to a mix of online and offline retail. In the recent times, many ecommerce companies like Flipkart, FabFurnish, Zivame, PepperFry, Myntra and Lenskart have opened offline stores. On the other hand, many traditional retailers too like Aditya Birla Group, and Landmark Group have launched their online stores.

Retailers’ mantra is to get rid of any unproductive space & expenses and embrace the current omni-channel retail trend.

http://indianonlineseller.com/2016/02/effect-of-ecommerce-size-of-retail-stores-in-malls-shrinking/

India Posts’ latest Rs 322 crore investment proposal benefits ecommerce

In a bid to strengthen its position in the e-commerce market, India Post has proposed to invest Rs 322 crore till 2019-20 to augment parcel handling capacity through which it projects to earn a revenue of Rs 1,608 crore.

An official in the Department of Post told PTI that with the current pace of growth in e-commerce segment, India Post would be handling 40 lakh parcels per month in the near future and the capacity needs to be augmented accordingly.

“The Department is proposing to invest Rs 322 crore in the period from 2015-2016 to 2019-20 to augment and develop parcel handling capacities,” the official said.

He said India Post centres would be equipped with modern handling devices, conveyor belt and security systems to ensure faster and safe processing.

He added volumetric measurement system will also be introduced to ensure revenue based on volume of the consignment having lesser weight but occupying larger space in trans-shipment.

“With the proposed investments, the revenue projections from e-commerce in all segments is Rs 1,608 crore in five years,” he said.

In order to cater to the parcel business, the department proposes to set up automated mail processing centres at Mumbai, Chennai, Bengaluru and Hyderabad with mixed mail sorter and parcel sorter at each location.

The official further said the department is implementing a global positioning system (GPS) in its departmental mail motor vehicles in all the major centres.

The IT modernisation project for India Post is under implementation which would result in electronically connected urban and rural network.

“It would allow increased consistency and reliability in mail, parcels and logistics delivery system in line with global standards,” he said.

The department has also initiated a project for parcel network optimisation for developing a comprehensive business and marketing plan based on current trends in the e-commerce market.

In e-commerce space, India Post is serving more than 400 small- and medium-level customers spread all across the country including all major players like Amazon, Flipkart, Myntra, Snapdeal, Paytm, Shopclues, Yepme, Naaptol, Telebrands and Homeshop18, among others.

BigBasket sells big, but losses have higher score

The online grocery industry is booming, but so are the losses, as BigBasket has discovered. The leading online grocer has witnessed a doubling of its sales, but sadly, a tripling of its losses as well. The company has recorded a sale of Rs. 170.24 crore, up from Rs. 69.72. However, its losses have gone up from Rs. 21.6 crores in the previous year to Rs. 60.61 crore.

Attraction of the online grocery industry

While the profits from selling groceries online would be minimal, the possibility of repeat orders is higher; thereby ensuring greater scope for customer loyalty.With the result, the competition is high in the sector. Apart from PepperTap, Grofers, and ZopNow, BigBasket also has to contend with the big names likeAmazon and Flipkart, who are eyeing the grocery industry.

Many have reduced their operations citing inoperability. Grofers had to close its operations in nine cities last month. Similarly, PepperTap has limited its expansion temporarily.

BigBasket has raised substantial capital since its inception in 2011. The company has raised a grand total of Rs. 580 crores from investors.

BigBasket’s plans to turn its fortunes around

BigBasket delivers orders from its warehouses, a model different from other companies, who associate with local kirana stores to deliver goods. The company is considering banking on private labels like Fresho (fruits and vegetables), and Royal and Popular (for bakery and other essentials).

Industry experts agree that this is a smart move. According to Harminder Sahni, founder MD of Wazir Advisors, “In terms of sales, BigBasket should have grown three-four times this year (FY16). From the consumer point of view, whoever will have a wider assortment of products at a better price will have an edge. Others are merely doing delivery, which was anyway happening. But BigBasket can offer a better price as they have private labels.”

It looks like BigBasket is making the right moves. Hopefully it should be able to bring down its losses and eventually turn profitable in the near future.

Amazon’s delivery man robbed by former employees

The delivery staff of ecommerce companies continue to be at risk as cases of them being robbed and beaten up is on the rise. Just two months ago, Flipkart’s delivery boy was robbed at gunpoint for cash & camera. Now something similar has happened with Amazon’s delivery boy.

Amazon delivery worker beaten and robbed by ex-delivery executives

Syed Amanullah and B Seesh Kumar have been arrested by the Hyderabad policefor robbing an Amazon delivery executive, it has been reported.

Amanullah and Kumar, both used to work for the ecommerce leader. But they were fired a month ago for not working properly. After being sacked, the duo devised a plan to rob one of the delivery staff members.

The robbery plan

On January 24th, they ordered a hair trimmer from Amazon in the name of Rakesh and stated Institute of Management Technology (IMT), Hyderabad as the address and gave Amanullah’s mobile number. On January 26th, when the delivery executive called up to inform that the order is out for delivery, Amanullah asked him to come near Hameedullah Nagar and hand him the product.

The inspector narrated, “At Hameedullah Nagar, Amanullah and Seesh Kumar beat up Fayeem and escaped with his cell phone and a bag containing items to be delivered.”

The police then tracked Amanullah and Kumar’s mobile phones and managed to locate & arrest them yesterday, February 3rd. The stolen Amazon delivery bag with 23 boxes and the delivery executives mobile phone has been recovered too.

The delivery boys working for ecommerce companies already face many issueslike health problems & accidents, heavy load, tough commute and poor working conditions. With incidents like these where they are robbed and beaten up, the problem is only getting worse. It’s high time that health and safety of delivery boys is given priority and strict action is taken against perpetrators.