Analysts at Ken Research in their
latest publication "India Online B2B Platform Industry Outlook to 2025: Driven
by Intuitive Vendor Discovery & Increasing Digitalization in Retail Sector
of India" observed that the fast-growing Indian retail
industry needs to focus on key areas such as logistic infrastructure, market
forces of demand & supply, quality checking procedures, SaaS adoption along
with innovative ways to enable better vendor discovery with a view to promote the growth of the
sector in a more structured & organized way. The report further talks about
the online B2B industry segmentation & the eco-system, detailed profiles of
various players in the market along with their service portfolio. It provides
an operational analysis of the different business models in the industry &
an operational view of the traditional & modern value chain of the retail
space in India. Government focus to promote FDI & acquire investments have
been thoroughly discussed along with digital penetration & case studies,
success stories of various online B2B platforms and the future way forward
& analyst recommendation for establishing an online B2B platform in India.
Industry Overview
There
are ~25 B2B platforms catering
only to the manufacturing MSME’s across India. The industry is at a nascent stage and holds high potential
for growth in the future. The highest user penetration is of online listing platforms as many of MSME’s use this service to
generate business leads. SaaS
has not been able to gain much traction & is very rarely used as of now. Digitization
in the supply chain ecosystem, especially with regard to traders, wholesalers,
dealers, retailers and consumers using apps and other platform-driven methods
hold the key to stickiness and growth in the space. Other major drivers
propelling the B2B e-commerce in India would be increased usage of Mobile
platforms which are providing app-based solutions for customers problems,
development of Artificial Intelligence and Machine learning algorithms to
identify buyer’s behavior and segmentation of categories and social media
marketing and analytics which will drive traffic and increase user penetration
in the market.
Industry Segmentation
The
report explores the industry segmentation of online B2B platform players on the
basis of demand arising from different regions (Tier-1, Tier-2 and Tier-3
Cities) & basis the nature of platforms (Listing platform and marketplace
platform). It further discusses the revenue share of each segment, the major
players of those segments & the growth facilitators of the future. The
competition is not very high in the industry as there is a lack of vertical
platform players in the market, but it is expected with emergence of new
players in future, the industry competition would become fierce. In online
listing segment, the players compete on the basis of listing charges &
subscription rates. IndiaMART is the biggest player in term of users &
suppliers and controls a significant share in the online listing platform
market. On the other hand, highly invested platforms are focusing on providing
business enablement services from SaaS services to logistics services to
lending facilities and are focusing on building technology focused services to
boost operational efficiency and achieve top line & bottom line benefits.
Udaan, Bizongo, Beldara are few examples of such platforms who are offering
business enablement services to MSME‘s in India.
Bottlenecks Faced in the Industry
Bad
quality of leads along with low conversion rates, high commission charges leading
to loss of margins, lack of end to end solutions, lack of quality checking
procedures on platforms leading to loss of repetitive business & stringent
payment terms and often there is a lack of good credit facilities in the
industry, all above factors are considered as major bottlenecks in the industry
by online B2B platform players as well as by MSME manufacturers. To overcome
such bottlenecks, government is facilitating growth of digital literacy in
rural & backward areas to literate the MSMEs of those regions in terms of
use of technology and its benefits. Many online B2B platform players are also
putting in more money & efforts to get the MSME on-boarded by teaching them
about the various services and by providing customizable solution for their
businesses to increase revenue and reduce cost.
Future Strategies-The Way Forward
Special
focus on vertical marketplace platforms needs to be given in order to acquire
expertise. Competition from foreign players with better technological solutions
and investment capability could be seen in the industry in the years to come. Development
of new categories of retail & wholesale would be leading the innovation
scenario, while cost optimization across various service streams will become
important along with harnessing Artificial Intelligence, Data Analytics as well
as Deep Learning Algorithms to facilitate and identify demand and trend
analysis in advance for exploiting future growth opportunity. In future, India
online B2B platform industry is expected to grow at a CAGR of ~20.0% during the
period FY’2019-FY’2025.
Key Segments Covered:-
By Final Consumption Expenditure in India
Retail Spending on Goods
Other Expenditure (Travel, Real Estate, Auto &
More)
By Retail Industry
B2B Retail
B2C Retail
By B2B Retail Industry Entities
Un-Organized B2B Stores
Brand/Distributor Led Stores
Cash & Carry Stores
E-B2B Platforms
By Online B2B Retail
Industry Segments
FMCG & Grocery
Consumer Durables & Electronics
Beauty & Personal Care
Fashion & Accessories
Others
By Online B2B Platform
Region of Demand (Tier-1, Tier-2 and Tier-3 Cities)
Nature of Platforms (Listing Platforms and Marketplace
Platforms)
Key Target Audience:-
OEM Manufacturers
Online B2B Platforms
3PL Firms
FMCG Industry
E-Commerce Companies
Lending Firms/Companies
Industry Associations
Government Associations
Private Equity and Venture
Capitalist Firms
Time Period Captured in the Report:-
Historical Period: FY’2014-FY’2019
Forecast Period: FY’2019-FY’2025
Companies
Mentioned:-
Online B2B Platform Competitive Ecosystem
IndiaMart
Trade India
Bizongo
Udaan
Industry Buying
Moglix
Power 2 SME
Shop
X
Ninjacart
Jumbotail
Alibaba
Other Players include Tradeford, Wydr, Amazon Business
etc.
Key Topics Covered in the Report:-
Present Day Pain Points
of MSMEs in B2B Retail Industry of India
Market Sizing Analysis of
B2B Retail in India
Market Sizing Analysis of
Online B2B Retail in India
Industry Segmentation of
Online B2B Retail in India
Ecosystem of E- B2B
Platforms in India
Service Portfolio of
Indian Online B2B Platforms
Online B2B Marketplace
Business Models
Traditional Retail Value
Chain & Pain Points Analysis
New Retail Value Chain of
Online B2B Players
Digital Penetration of
Indian MSMEs in various Online Services/Platforms
Margin Impact of online
B2B platform Players on MSME’s Revenue
Major Challenges Faced in
Digital Adoption by MSMEs & the Way Forward
Vendor Choosing Criteria
for Online B2B Platform Industry
Government Initiatives
for Online B2B Platform Development
Case Studies on Online
B2B Platforms including Operating Outlook, Financial Analysis and Business
Model, Services, and Investment
Analysis & Shareholding Pattern
Feasibility Report on an
Online B2B Platform in India
For More Information on the research report, refer to below
link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
