India E-Commerce Growth Spilling into Ecosystem

March 26th, 2016 Comments off

India eCommerce ecosystemThe growth in e-commerce in India is also giving a boost to a wide array of players that are directly or indirectly part of the e-commerce ecosystem. These include manufacturers of packaging material, 3PL (third-party logistics) providers that provide tailor-made solutions for e-commerce, IT companies that help retailers in transitioning from offline to online or provide digital marketing / data analytics services to e-commerce players and traditional media companies that are benefiting from the rising advertising spending of Internet businesses.

Logistics is where the promise of online gets the offline reality check. The challenges of catering to geographically diverse customers and an inadequate and underdeveloped logistics infrastructure are further compounded by complex tax regulations. Given these complexities, some e-commerce players have built inhouse logistics companies (e.g., E-Kart of Flipkart and Amazon Logistics of Amazon) for superior Read the Full Article

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Largest OpenStack Cloud Platform Deployments

March 15th, 2016 Comments off

Largest OpenStack DeploymentsOpenStack is a Free and Open Source Cloud Computing platform catering to the Infrastructure as a Service [IaaS] AT&T will likely become the largest OpenStack environment in the world, as they expect to build out their private cloud to 500k nodes (servers) and span across hundreds of data centers. AT&T hopes to run every call through its OpenStack infrastructure by 2020. They expect to have the first 60 data centers up and running by the end of 2015. AT&T evaluated Red Hat, VMware and HP, but eventually the decision came between Mirantis and Red Hat.

By March 2015, all of PayPal’s front and mid-tier was running on OpenStack, and 20% of was running on OpenStack. In addition, 100% of development Read the Full Article

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Indians Buy 100 Mn Smartphones in 2015

March 3rd, 2016 Comments off

SmartPhone Shipments in IndiaAs per IDC, smartphone shipments in India grew 15% yoy to reach 26mn units in 4Q15, taking the total 2015 shipment count to 104mn units (+29% yoy). The yoy shipment momentum slowed in 4Q15 as sales via offline channel (which comprises the bulk of smartphone sales) were sluggish. 4G LTE enabled Smartphone volume has picked up significantly. We believe this may be due to increased vendor focus on the online sales channel (driven by online mega sales push by leading Indian e-tailers during the festive season in Oct-Nov) which saw increased competition from local / Chinese vendors alike and heavy discounts from e-commerce players.

In terms of market share, Samsung continued to lead the market with a 27% share (helped by the success of its J-series line-up), followed by Micromax (which witnessed Read the Full Article

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Net Neutrality & LoopHole in India

February 19th, 2016 Comments off

Net Neutrality IndiaThe Telecom Regulatory Authority of India (TRAI) via its new tariff order has suggested that no service provider can offer or charge discriminatory tariffs for data services on the basis of content. In addition, the regulator has suggested that any plans not meeting these rules cannot be valid beyond a period of six months. However, we note that most telcos offering such tariff plans have already rolled them back. Lastly, the TRAI has exempted closed electronic communication networks (CECN) which is a Big Loop Hole in Net Neutrality Law despite being Told to the TRAI to plug all such loopholes.

The regulator has suggested in its tariff order that rules prohibiting differential pricing for data will not be applicable to CECNs. However, except Read the Full Article

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Logistics of eCommerce in India

January 5th, 2016 Comments off

eCommerce IndiaWe’d like to present some stunning facts about the Logistics Industry supporting eCommerce in India.

India’s three pure e-commerce logistics companies – Delhivery, Gojavas and Ecom Express – have already achieved reasonable scale. Flipkart and Amazon have built large in-house capabilities through Ekart and Amazon Transportation Services, respectively. Traditional players such as Blue Dart and Gati have also entered this segment. The seven companies together deliver ~1m parcels a day.

Pure logistics companies cover only the top 4,000-5,000 pin codes out of ~30,000. Coverage will have to increase meaningfully when growth increasingly starts coming from smaller towns, and that will require heavy investment. The larger players have successfully raised Read the Full Article

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Can SnapDeal become Alibaba of India ?

December 16th, 2015 Comments off

Snapdeal SME Online Platform Snapdeal seeks to build an Alibaba-like model in India – a pure marketplace empowering SMEs. The company believes consumption opportunity in India could be huge, online penetration is low, and the private capital market has deepened, bringing entrepreneurial capabilities to the fore.

Snapdeal estimates India’s private consumption at US$1.4tn, 60% of GDP now, and potentially rising to ~US$2.5tn in the next Read the Full Article

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