India's electricity business or integration is imminent: the rapid development of the problem revealed

The Internet economy in India is booming compared with the Chinese E-commerce Web site, which has fallen into a vicious circle of "high investment and low returns". According to statistics, in the next three years, the number of Internet users in India is expected to increase from the current 80 million to 2015 230 million. Numerous internet companies are developing in the Indian internet Economy triangle formed by Bangalore, Chennai and Hyderabad.

Ironically, however, India's e-commerce trend has not come from the private sector, but from the online booking business of state-owned companies in India's Ministry of Railways.

Third Wave

The Indian Railway Catering and Tourism Company (IRCTC), under the Indian Railway Company (Indian Railways), began its 2002 attempt to launch a network booking business. From the first day only sold 27 electronic tickets to the current daily Online booking volume of more than 400,000 times, now nearly 30% of the Indian train ticket is set out from the site, IRCTC has become Asia's largest electronic ticketing platform.

While nearly 30% of the site's trade fairs are difficult to pay electronically, IRCTC has become an indispensable tool for Indians and international travellers, even if the train tickets are sometimes not available. "More importantly, before that, the Indians on the Internet to buy tickets are not aware of, irctc to some extent," forced to promote this concept, to eliminate the strange sense of electronic payment, so the basis of e-commerce in India through the railway ticket sales system laid. "Kanwaljit Singh, senior managing director of Helion, one of India's largest venture capital funds, said.

At the same time, IRCTC's operation also enriched the online payment method. Only credit card payments were allowed at the start, but India has a low rate of credit cards, which later came in the form of debit cards and cash cards, speeding up the development of online payment operations in India's banking sector.

With the maturing conditions of fully commercialized operation, more virtual tourism and ticketing websites are becoming popular, among which the most significant is the business model similar to Ctrip's Makemytrip. The first travel agency in India and the United States began to try, and in 2005 opened its online ticketing website. After that, Travelguru and other companies have sprung up, began more electronic booking business, other major players, including India's largest car ticket booking company Redbus also started the online ticketing business, and entertainment areas such as Multiplex theater ticketing website and so on.

If the 2010, made my trip company on the Nasdaq 70 million dollar successful listing marks the peak of the electronic ticketing site, with the Indian version of the "Amazon" Flipkart rapid popularity and expansion of the market focus immediately shifted to the physical field, The second wave of e-commerce development of the climax quietly. In the past two years, books, records, electronic products, online shopping development is particularly rapid, including mobile phone network sales has become a bright spot. ebay's market research report shows that the number of Indian technology products accounted for 44% of the total e-commerce volume.

There are two reasons for the development of e-commerce of real goods, one is the continuous innovation of payment mode: delivery to payment; Another reason is the improvement of logistics system. "Cash on delivery is convenient for those who don't have an electronic account or want to shop online for security reasons, so that the online shopping popularization rate is higher, in addition, the Indian Express company subdivided into a first-line City Express Company and two or three lines of City Express Company, improve the logistics efficiency. Kanwaljit Singh said.

And with the rising popularity of mobile phones and the further easing of the Indian central Bank's payment terms, there is a general view in India that handsets will become the main payment platform for online shopping in the future. India's third wave of E-commerce is expected to arrive within 2-3 years.

"While the number of mobile phone operators in India has challenged the design of mobile payment platforms, the prevalence of Android has largely changed that pattern," he said. Kanwaljit Singh said. The minimum price for a "smart phone" that carries an Android system is 60 dollars. According to statistics, India's existing fixed network interconnection users 100 million, mobile phone users more than 500 million, of which mobile internet users more than 40 million. It is expected that 2013 India mobile internet users will reach 100 million, more than fixed network users.

Out of bullish on the market, Helion investment in Ngpay, a combination of air tickets, train tickets, movie tickets and other business mobile ticketing platform, but now all the mainstream Internet companies are developing their own mobile platform, the third wave of the trend will be born new business model or just a tool there is controversy. "But no matter what, it is certain that it can help companies better preach their stories." Kanwaljit Singh said.

Integration started?

With no language barrier, India's internet economy also presents a different pattern from China. Google, Yahoo and other portals dominate, and Facebook and Google's Orkut and other social networking sites in India, so that the local Indian "Renren" bharatstudent can only firmly occupy the market share old position.

ebay's development in India does not conform to a certain extent that Alibaba's Consumer-to-consumer model seems to have some soil and water in India, and a large number of India's Internet provides localized services in the fields of education, health care and cloud computing.

One notable concern is that in 2011, only one of the 49 Asian companies to Nasdaq listed was from India and 45 from China. In this regard, Kanwaljit Singh believes that India's e-commerce companies have a clear positioning of their target market, only those on the scale of business with international companies comparable to the overseas listing will achieve better results, and for some of the current focus on domestic market enterprises, India's open market or private equity has been able to fully meet its financing needs. "Compared to private equity, the development of VC funds in India is still growing." But money is not the biggest problem. Kanwaljit Singh said. It is understood that now 10~12 's active venture capital fund in the city, the annual investment of 500 million U.S. dollars. In India, private equity funds amounted to $3.3 billion trillion in the first quarter of 2011.

One of India's two biggest financing cases in 2011 was the Snapdeal of $40 million from BVP, a beijing-based Silicon Valley, and a high-end fashion website fashion and you from Northwest China (Norwest Venture and Intel capital to finance 40 million dollars.

However, in the operation of international capital, the Indian electric business is also facing the prospect of reintegration, and in the early development of the rapid progress of the problems also began to show.

The most obvious signal has been sounded. In February 2012, Flipkart, who started out as a sales book, bought India's largest online shopping platform for electronic goods at $200 billion to $2500, letsbuy the industry. The 4-year-old company, which was shorted by speculators in last year's Indian stock market, suffered heavy losses and sparked market turmoil, sparking a debate about whether India's internet has been frothy.

The total amount of e-commerce in India has risen 5 times-fold over the past few years and user demand has been released steadily, but the main focus is now on marketing, says Manu Agarwal, CEO of the Naaptol Company, a

shopping site. The electric business enterprise must strengthen its own execution ability, at the same time deal with the huge challenge in the logistics and warehouse management. The global financial crisis is leading to short-term tension in the financing side and investors will become more cautious. Over the next few years, 80% of competitors may disappear.