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2 PwC Evolution of e-commerce in India: Creating the bricks behind the clicks 3 ForewordAcknowledgement Recent years have seen a remarkable transformation in the way India shops and trades. E-commerce has taken the world of retail by storm and captivated the imagination of an entire generation of entrepreneurs, with e-commerce ventures with various business and commercial models. The explosive growth in the last few years has already catapulted the biggest rms among these ventures past the billion-dollar territory. The sector has grown three times in four years to nearly 12.6 billion USD in 2013. Various industry estimates project that the sector will further growth ve to seven times over the next four to ve years. Online retail, while today representing a small fraction of the e-commerce space is one of the fastest growing segments. It is also the most challenging in fullling its fundamental proposition of transcending physical boundaries to deliver a variety of products to the customer’s doorstep. Logistics and infrastructure in e-retailing becomes the very backbone of the fullment network and the basis on which stringent service level expectations are set and met, and customer mind-space among competing alternatives is won. In India, these are arguably the weakest links, and therefore the enhanced need for greater attention and management bandwidth to these critical functions. We estimate that a large proportion of investment in e-commerce retail will ow into logistics and infrastructure. In the absence of an incumbent ecosystem, e-commerce providers are beginning to build these functions from scratch. This will also spawn infrastructural investments into allied sectors such as warehousing, air cargo, road and rail-based transport transportation. As delivery reach and fullment networks become more entrenched and increasingly complex, opportunities will emerge for logistics service providers and 3PL players. All of these trends point to a bright future for talented entrepreneurs, operational managers as well as greater employment opportunities for blue-collared workers. On behalf of ASSOCHAM I would like to thank the team at PwC for preparing a comprehensive and neutral white paper ‘Evolution of e-commerce in India: Creating the bricks behind the clicks . The e-commerce industry is one of the fastest growing sectors in the country today, spurring rst generation entrepreneurs, large scale manufacturing by SMEs, jobs and most importantly impacting the infrastructure growth of the country. We hope that this paper will be read by all the relevant stakeholders of the industry and that they will benet from its extensive research. Manish R Sharma Logistics Leader, PwC India D S Rawat ASSOCHAM ‘
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