Ecommerce On India Mart
Ecommerce On India Mart
PROJECT
ON
INDIA MART
SUBMITTED TO:
ANSHU SONKAR
IndiaMART.com is a B2B marketplace that assists buyers and sellers trade with each
other at a reliable, common platform.
.
Envisaging and Developing a Market Entry Strategy
After deciding to plunge in the Indian Market it is required to plan carefully for
succeeding in the long run. Some areas need special attention:
Partnership
Deciding whether to take on an Indian joint venture partner or to establish a mainly-
owned or wholly-owned subsidiary.
Indianmarket
Developing an understanding of the peculiarities of the Indian market is necessary, so
that issues which come up can be effectively and timely tackled with few surprises
Labor laws
Understanding legal compliance requirements which must be met once entry is
effected, viz. corporate laws, labor laws, direct and indirect tax issues, etc.
Safty valve
However, the government has softened its stand on the need for each investment to
create jobs directly. Many companies — foreign and domestic — are bypassing the
tough regulations by either subcontracting labor or through early retirement schemes.
Planning exit options in case the project does not proceed as desired. A ship should
essentially carry lifeboats!
Incentives to investors
Investors setting up units to manufacture goods for export can set them up as EPZs, or
100% EOUs outside EPZs. 100% foreign equity is welcome in both. Export earnings are
exempt from income tax.
Type of Office
Overseas companies which do not opt to set up a subsidiary or form a joint venture with
an Indian partner can establish the following types of offices:
Foreign companies usually open representative/ liaison offices but they are not
allowed to carry on any business or earn any income in India and all expenses are to be
borne by remittances from abroad.
A project office is the ideal method to establish a business presence for a limited
period of time.
Success
Success in India will depend on the correct estimation of the country's potential,
underestimation of its complexity or overestimation of its possibilities can lead to failure.
While calculating, due consideration should be given to the factor of the inherent
difficulties and uncertainties of functioning in the Indian system.Entering India's
marketplace requires a well-designed plan backed by serious thought and careful
research. For those who take the time and look to India as an opportunity for long-term
growth, not short-term profit- the trip will be well worth the effort.
Market potential
India is the fifth largest economy in the world (ranking above France, Italy, the United
Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is
also the second largest among emerging nations. (These indicators are based on
purchasing power parity.) India is also one of the few markets in the world which offers
high prospects for growth and earning potential in practically all areas of business.Yet,
despite the practically unlimited possibilities in India for overseas businesses, the
world's most populous democracy has, until fairly recently, failed to get the kind of
enthusiastic attention generated by other emerging economies such as China.
Infrastructural hassles
The rapid economic growth of the last few years has put heavy stress on India's
infrastructural facilities. The projections of further expansion in key areas could snap the
already strained lines of transportation unless massive programs of expansion and
modernization are put in place. Problems include power demand shortfall, port traffic
capacity mismatch, poor road conditions (only half of the country's roads are surfaced),
low telephone penetration (1.4% of population).
Indian Bureaucracy
Although the Indian government is well aware of the need for reform and is pushing
ahead in this area, business still has to deal with an inefficient and sometimes still slow-
moving bureaucracy.
Diverse Market
The Indian market is widely diverse. The country has 17 official languages, 6 major
religions, and ethnic diversity as wide as all of Europe. Thus, tastes and preferences
differ greatly among sections of consumers.
Customized Solutions
THEY are geared to
adapt to our
customers' unique
demands and offer
customized solutions
with equal ease.
Corporate Websites
india mart take into account individual needs and offer assistance in
planning & implementing online marketing strategy. Each customer is
assigned a project manager, with a team of proficient website designers,
programmers, content writers and web marketing professionals. india mart
also undertake the task of web promotion and ensure online visibility.
It is a cost effective tool that reduces time and costs involved in reaching out
to a prospective buyer. An online b2b product catalog is not just a showcase
of the company and its products, but also a great marketing tool to enhance
revenue generation as it caters to the scattered domestic market as well as
the international market.
E-commerce Solution
An online buying process, B2B or retail, would never be complete without e-
commerce deployment. Though the most common form of online shopping is
reflected in retailing of goods and services, our e-commerce solution is
suitable for the B2B segment (for negotiated prices, bulk deals, sample
exchange)
Enquiry basket that allows visitors to select multiple products & add to
the virtual cart to send a consolidated order / enquiry and request a
quote for the same.
Multimedia CD Presentation
Customized Solutions
india mart solutions are aimed reducing communication costs apart from
offering a secure and reliable communication solution. experienced in
serving mail users across small, medium & large enterprises and have
developed the most inexpensive email management system, with flexible
utilities.it offer the best telephonic and online support to customers as and
when required.
It is an established fact that almost 80% of the virus attacks are through e-
mails and over 60% of the mails are spam. Imagine what havoc a virus
attack can cause to an enterprise where each individual is handling crucial
data. Add to it the work hinderance due to heavy spam and server
downtime. With our experience and technical skills, we have developed an
enterprise mailing solution that skillfully tackles these issues. This system
can work with your existing mailing system as well, with advanced features.
Apart from ensuring 99% uptime for the mail servers, we also power our
managed enterprise mailing solution with online virus scanner & spam
controller that enables users to work more efficiently. We offer managed
mail servers for companies with large setup and heavy mail traffic, that are
secure, maintain privacy & confidentiality and are able to handle as many
users as an enterprise may have.
india mart managed mail server solution also allows all internal users to
communicate over LAN with other cost-effective features like Auto Dialing,
Address Mappings, Auto Reply, Forwarding, Mailing lists etc. Our solution
also lets our customers retain control over certain functions, e.g. creating a
new user or maintaining mailing lists etc., giving sufficient independence to
them.
POP accounts with webmail are a perfect solution for people constantly on
move. Our pop a/c's with webmail service allows the users to check mail
from anywhere, using e-mail programs such as Eudora or Outlook. All you
need is a computer and access to the internet.
Apart from the standard features, our pop acounts are powered with online
virus and spam protection software that enables the user to work more
efficiently. Some of the other features of pop acconts are:
LMS also generates useful MIS reports that assist individual users to
measure the effectiveness of their responses and gives the administrator a
complete overview of what is happening at the lead management front in
the organization
Suppliers Directory
Expansion plans
There are 2-3 things:THEY have started to utilize database of SMEs (Small and Medium
Enterprises) to expand offerings. BY participate in almost 150 trade fairs across the world - half
of them in India, half outside - and end up spending almost a million dollars per year on that. To
strengthen buyer relationships and came out with a sourcing guide or a buyers guide, which lists
our clients, and has additional advertising for revenues. That also brings buyers back to
IndiaMart.com as a platform for updated information. Most of the big companies in space have
been print Yellow Pages initiatives that have gone to the Internet. For going to Print is a buyer
acquisition strategy, and there can be other media like mobile and Interactive TV going forward.
The other is a geographical expansion - by cover about 60-100 cities from 25 offices across
india, and want to penetrate deeper and broader into Indian territories, going into Tier 2 and Tier
3 cities as well.and might even look at international opportunities.
Business model
Earlier in January, online B2B marketplace IndiaMart raised an undisclosed amount of money
from Intel Capital: a total of $23 Million was invested in IndiaMart, One97 Communications and
Global Talent Track. Founded in 1996, Indiamart claims to have over 15,000 clients, with offices
in 26 cities, covering 100 towns in India. In 2007-08, they reached $10 million in revenues, and
the company claims to be cashflow positive.
. IndiaMart has been a profitable company since day one. THEY have been growing consistently
over the years, whether it was a downturn or not, within a range of anywhere between 30-40% to
65-70%. If you just compute the basic CAGR it is approximately 40-60% CAGR per year over
many years. But those were times when our total revenue base itself was at a smaller size. I don’t
think that many businesses were adept at using the Internet at a very large scale 4-5 years ago.
In the last 10 years, two things have happened - the Internet penetration and connectivity have
become somewhat reliable and secondly, businesses have started responding to the opportunity
on the Internet. The second generation has now started participating in the businesses, and
an inflexion point is about to come in the Indian business Internet usage, the same way it
did in China 8-10 years ago. Now I feel that at a large revenue base like ours, to maintain a
growth of 40-60% over the next few years we might have to spend a larger amount of money on
different activities like advertising and marketing, and a strong management team. We have not
been advertising.
We create websites, microsites and catalogs. We do a complete turn key package - designing,
hosting, offering higher listing on Indiamart, Search Engine Optimization. We submit the sites to
various business directories. So this is a subscription package where you know the website
designing and hosting portion has become a minuscle in terms of revenue. Most of the people
come to Indiamart not to have a four page microsite designed for Rs. 25,000, but because they
see that there is a value in listing that they get on Indiamart platform.
We launched a buy lead section, a business prospect finder section, which is mostly for lead
generation section. So is a mix of things - a cataloguing plus basic listing fee that comes under
subscription revenue, pure listing fees which are on the top of basic listing fees that could be
premium listing and payed listing and banner advertising. Then there is a pay per lead revenue. If
you see then 5-6 years back 80-90% of our business was purely cataloguing and
subscription revenue only 5-10% was pure listing fee and advertising fee. Today 60-70% is
cataloguing revenue and about 30% comes from purely listing and premium listing fee…
you know those are experienced Internet and Indiamart users, and going forward I think that pay
per lead would also become a sizeable chunk of that.
competition,
. Alibaba comes in equally with a large number of suppliers from China - that is their strength
and weakness both. Indian suppliers typically do not want to compete with Chinese suppliers,
and they will have to do that on an Alibaba type of platform. The whole world has been looking
at China as their supplier, which is why Alibaba has done so well. If the buyer preference
changes, they will start logging on more to IndiaMart more because they know that AliBaba
provides chinese suppliers.
But then it becomes important for Alibaba to market their services in India better to
develop their supplier base. Then there’s going to be competition for you to get suppliers…
Obviously, and if you really see the market size is very large. It’s a trillion dollar trade
opportunity. By the entry of Alibaba, the supplier base will be more educated - more competition
is more market development. If you see the example of Naukri.com and Monster both are
existing together, and both are equally big. If you see China, it has an equally large player called
Global Sources, Made in China, EC21 and there might be 200 smaller ones.
Travel
A major foreign exchange earner, it
accounted for almost 2% of GDP in
2004.
NEW CLIENTS
Archive
We serve thousands of clients in India and abroad. These clients belong to
diverse industries and are of varied sizes ranging from SMEs to big corporate
houses. Here we present a cross-section of our clients who have benefited
from our solutions.
http://www.shawlsandmore. http://www.jewelry-
com/ manufacturers.com/
The products manufactured A rich blend of
by Shingora are known all innovation, creativity
over the world for their and authenticity, the
exquisiteness and unique finely crafted pieces of
designs. This is infact a jewelry manufactured
resultant of our focus on and exported by Nupur
quality and strong customer Overseas have created
orientation. a rage in both national
and international
markets.
http://www.eldecogroup.co http://www.brakewel.co
m/ m/
Eldeco Infrastructure and Since the time of its
Properties Ltd. became one establishment, Brakewel
of our esteemed clients in has a respectable
March 2002. The company presence in OEMs,
has also availed a Special Domestic, Aftermarkets
Software Website services and Exports. The
from us making the website company has a technical
more dynamic. The collaboration with ASK
phenomenal success of the Group, Japan which is
company can also be one of the largest
attributed to its web friction material supplier
presence. to various OEM's in the
world.
http://www.jindalstainless.c http://www.suryaherbal.c
om/ om/
The organisation had a As part of their
rather specific requirement. marketing strategy, they
Due to the nature of the opened up contact points
business and clientele, it and branches globally. To
needed a solution where assist the offline
they could receive RFQs, marketing network and
which could be managed augment their marketing
online by the marketing efforts, they got in touch
team. Further it had to be in with us for online
sync with their existing marketing of their
setup. products.
Client Profile
Premier Infrastructure, a proprietorship firm established in 2004, is the subsidiary of Premier
Group- a leading service provider for construction works of cement & fertilizer plants and
industrial buildings. The group brings together various technologies for addressing the
communication & infrastructure management needs of globally distributed Enterprises and
Telecom Carriers. In its ongoing endeavor, the company boosts of a niche client profile, already
having served the likes of Reliance, Tata Teleservices and Airtel, among many others.
Business Challenges
Premier Infrastructure wanted to establish themselves in the International B2B space. The
client posed the below challenges to IndiaMART.com:
Create a brand name for the client in order to attract more clients.
Design an extremely attractive, user-friendly and interactive website.
Emphasis on online promotion for better traffic and widespread on-line presence.
Develop effective and efficient methods to receive business queries.
Provide Premier Infrastructure a competitive edge and opportunity to expand its market
base.
Solutions
IndiaMART.com used its online expertise to provide comprehensive web-solutions keeping in
mind the requirements of the client.
MDC enabled the client to showcase its entire product range. Being dynamic in nature, the
catalog helped the client to make frequent changes in the product categories as per the
requirement. The website's strong online presence, helped in establishing the company as a
well known brand in the category.
TrustSEAL
TrustSEAL acts as a mark of authenticity in the virtual market place. lt ensures the credibility
and trustworthiness of the company based upon its verified records and documents pertaining
to proof of existence.
The website was linked with relevant product categories on IndiaMART's on-line B2B network
to give the client maximum exposure and visibility on the Internet:
Results Achieved
TrustSEAL helped in positioning the brand as a credible source in the online B2B space.
Online presence helped to generate genuine business enquiries.
The firm's business activities have been enhanced with extensive promotion on
IndiaMART.com network.
S No. TOPIC PAGE No.
1 Introduction 1
Market entry strategy 2
Corporate Websites
B2BProduct Catalogs
E-commerce Solution
Mini Dynamic Catalog
Offerings
Business model
competition,
INDUSTRIES served by india mart
Business challenges
INDEX