eCommerce in India has disrupted and scared several Retailers as it is being chased by Technocrats & Investors from across the Globe. WE attended a conference of Consultants, investors and companies shared research on the pervasiveness of e-commerce across every industry and service in India and the conflation of telecom and technology that is enabling this change. The dizzy rate of change in the sector and the tricky business of determining e-valuation drivers are the challenges faced by Venture Capitalists. Here are some of the Views of the Top Most Guys in the Indian eCommerce Space
Just Dial (JD) continues to dominate the search classifieds market given its significant scale in search requests and business listings, its customer first approach (making consumers come back again and again) and margin improvement led by a move towards mobile and scale benefits. JD is a market leader in local search with 364 mn visits during FY13 [Voice, SMS, mobile internet, PC internet]. JD earns its revenues by charging merchants a fee to list on its platform and places them preferentially in search results.
Just Dial Search Plus Service
In Dec-13, JD introduced the “Search Plus” service. These services are aimed at enabling Just Dial’s users to undertake several day-to-day tasks conveniently on a
JustDial, the Local Yellow / White Pages Search Engine which diversified into e-commerce is spending heavily in expanding its reach by adding more sales force augmented with online Ad campaigns.
Currently it has a good presence in about 25 cities, although is touching 100 cities through either its own sales team or freelancers. Further, it intends to spend Rs600-1000mn to increase awareness and promote JD Search+ in FY15. Management believes that despite these additional costs / expenditures, benefits of operating leverage should lead to ~100 bps margin expansion.
Justdial does depend on Google for traffic
Justdial is exploring various areas for users to offer to sell as well as buy, goods and services through it’s website. As a first step in this direction JDL is in process of developing a car listings website in which users can search and rate car models being offered for sale, list their cars for sale and receive price quotes from vendors of both new and used cars.
In collaboration with service providers and vendors, JDL is in the process of developing the ability for users to complete a number of bookings and purchases which are integrated in the search results from company’s website.