INDIA INTERNET WORLD

Session DC 109 September 27, 2001
B2B Commerce in India: Prospects and Markets

Our Route:
  1. Defining B2B E-commerce
  2. Sector & Size
  3. Impending Issues
  4. Public B2B Marketplaces
  5. Success Roadmap for Indian Businesses
         Large Businesses
         Small & Medium Enterprises
  6. Success Stories
A. Defining B2B E-Commerce

q Understanding Commerce - Definition of Commerce e-commerce: Commerce is the focus and not the 'e'
q Services & Solutions
- e-commerce not to be confused with merely online payment, or establishment of online sale counters. The idea is to either expand markets by exploring more opportunities, and/or to cut costs on existing supply channels using the 'e' as applicable to particular industry/business
- In B2B segment 'match-making' is of utmost importance as against 'online payment' that is considered crucial in case of B2C segment
- B2B domain can be broadly classified into private and public online marketplaces

q Private vs. Public Marketplaces
Private Marketplace: Single Seller-Single/Limited/multiple buyers. eg JindalStainless.com
Public Marketplace: Multiple Seller-Multiple Buyers (usually set up by third-parties). eg. IndiaMART.com

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B. Sector & Size
Sector Size
Domestic qComputing and Electronics $ 2000m
qChemical and Petro-products $ 1300m
qAutomotive $ 700m
qPharma and Medical $ 200m
qPaper and Office Products $ 200m
qFinancial Services $ 2100m
qTravel and Hospitality $ 1800m
qBusiness Services $ 500m

International qHandicrafts N.A.
qApparel & Garments N.A.
qChemicals & Pharma N.A.
qAuto & Heavy Engineering N.A.

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C. IMPENDING ISSUES

q Multi-entity setup: identifying key participants in the marketplace ie., buyers, suppliers, support service providers (logistics, payment etc)
q Cost benefits: whether the online setup will offer cost efficiency as compared to the existing offline system
q Technical Limitations
q Resistance - Organization & Personal
q Internet connectivity & PC penetration
q Government Participation

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D. Public B2B Marketplaces

q Definition
q Ideal Role - Industry Information, Match-making, Sales Lead Generation (domestic & international), Branding, Payment, Logistics, Insurance, Verification, Sampling & Ratings, Security & privacy, integration with offline startegies
q Present Role - Information, Match-making, Sales Lead Generation (domestic & international), Branding
q Government Participation, Associations and Trade Organisations

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E. SUCCESS ROADMAP FOR INDIAN BUSINESSES
Large Businesses
o Private Marketplace
oContent, Brand & Sales Promotion Alignment with Marketplace
oPhased Implementation - Sales Lead Generation, Cost Cutting


Low Investment High Investment
Existing Market Public Marketplace Private Marketplace
New Markets Public Marketplace Static Website Public Marketplace Dynamic Website Online Marketing


SME Businesses
o Public Marketplace Alignment
o Service & Solution Alignment
o Content & Process Alignment
o Branding & Sales Promotion Alignment

Low Investment High Investment
Existing Market Static Catalog Website Customized, Dynamic Catalogs; Public Marketplaces
New Markets Public Marketplace Website Public Marketplace Dynamic Website Online Marketing

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F. SUCCESS STORIES

INTRADING (An Exporter from India benefiting from Indiamart's B2B services)
IndiaMART.com's successful business model featured on CNBC as analysed by McKinsey.
- refer http://www.indiamart.com/press-section/mediasays/cnbctext.html

Other case-studies
www.jindalstainless.com - A comprehensive B2B initiative for Jindal Organization
www.radico.com - An initiative focusing on Export of Body Decoration Products
www.lovson.com - Amongst the largest B2B initiatives on the web by a Merchant Trader …… and over 1400 more

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