How Ongoing pain in E-Commerce Segment will Impact Many Device Manufacturers

04:32:00

Indian E-Commerce companies are going through the transformation phase as per my view. The investors pulled back with their wallet and now more demanding with these companies to be self reliant instead of relying on cash burn to gain userbase as well as market share.

We all know that around 60 to 70% of their GMV is coming from Electronics segment predominantly from Smartphone segment. The fall in funding and more pressure to make the organization EBITA positive, E-Commerce companies in India are cutting down commission to discount which is making them less attractive for consumer to sellers on the portal. We must note that many of the retailer took an advantage of E-commerce portal and used as a platform to sell their idle inventory without making any losses.

The change in E-Commerce companies dynamics will have direct impact on Smartphone companies relying heavily on E-Commerce companies for their sale while appointing 3rd party servicing outlets. On a contrary the established home grown Smartphone player's are going to regain the market share in the second half of FY17. The home grown Smartphone player posses strong retail presence as well as relationship and stood with the retailer when the onslaught was going on.

The loss of market share by E-commerce companies in total Smartphone sell through percentage will also impact E-Commerce companies valuation as their chunk of GMV comes from Electronics section.


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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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