India Online B2B Platform Industry Outlook to 2025
Driven by Intuitive Vendor Discovery & Increasing Digitalization in Retail Sector of India
May 2020
106
About the Report
About the Report
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, Business Model, Services, and Investment Analysis & Shareholding Pattern
Feasibility Report on an Online B2B Platform in India
Products
Products
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
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.
Table of Contents
Table of Contents
1. Executive Summary
2. Introduction to Business to Business Retail Marketplace & Online Retail Space in India
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
3. Ecosystem & Service Portfolio of Online B2B Platforms
Ecosystem of the E-B2B Players
Market Sizing Analysis of Online B2B Platforms of India
Online B2B Platform Market Segmentation – Region of Demand
Online B2B Platform Market Segmentation – Nature of Online Platform
Service Portfolio of B2B Platform
- Online Listing & Marketplace
- Business Enablement (Digital Ancillary & SaaS)
4. Business Model Analysis of E-B2B Platforms in India
Online B2B Marketplace Business Models
Cross Comparison of B2B Marketplace Models (Financial)
Cross Comparison of B2B Marketplace Models (Operational)
Company Profiles of Online B2B Platforms (Industry Buying, Power 2 SME, Moglix)
5. Operational Value Chain of B2B Retail
Traditional Retail Value Chain & Pain Points Analysis
Modern Retail Value Chain of E-B2B Players
Modern Retail Value Chain of E-B2B Players – Gap Analysis
6. Demand & Supply Side Analysis of Online B2B Platforms in India (Survey Results)
Adoption Rate of MSME for Online B2B Platforms in India
Major Challenges Faced in Digital Adoption by MSMEs & the Way Forward
Demand Survey Analysis of Online B2B Platforms
Online B2B Platform Choosing Criteria for MSMEs
Margin Impact of E-B2B Players on MSMEs Revenue
7. Government Initiatives & Investment Analysis in Indian Online B2B Marketplace
Government Initiatives for Online B2B Development
Investment in Online B2B Space Gaining Traction in India
8. Competitive Analysis of Online B2B Platforms in India
Cross Comparison of Online B2B Platforms (IndiaMART, Trade India, Bizongo, Udaan, Industry Buying, Power 2 SME, Moglix)
Preference of Online B2B Platforms
Case Studies of Online B2B Platforms (IndiaMART, Trade India, Bizongo, Udaan)
Company Profiles of Online B2B Platforms (Industry Buying, Power 2 SME, Moglix)
9. Success Stories of Few Online B2B Platforms in India
Cross Comparison of Successful Online B2B Platforms (Shop X, Ninjacart, Jumbotail, Alibaba)
Company Profiles of Online B2B Platforms (Shop X, Ninjacart, Jumbotail, Alibaba)
10. Future of Online B2B Platform Industry in India
Future Outlook of the Online B2B Platforms in India
Future Segmentation of the Online B2B platforms in India
Future Trends & the Way Forward
11. Feasibility Study of Online B2B Platforms in India
Is It Feasible to Invest in an Online Platform?
Why is B2B the way forward?
12. Analyst Recommendations
Proposed Business Framework
Market Positioning Strategies
Product Offerings & Service Portfolio
Third Party Contacts & Joint Ventures
Value Added Services & USP
13. Appendix
Research Methodology
Disclaimer
Contact Us
List of Figure
Per Capita Final Household Expenditure in India, 2013-2019
Consumption Expenditure as a Percentage of GDP, 2014-2019
Indian Final Consumption Expenditure Segmentation (Retail Spending on Goods, Other Expenditure on Goods & Services), FY’2019
Indian Retail Market Segmentation (B2B Retail Market, B2C Retail market), 2019
E-B2B Retail Segmentation (Unorganized B2B Stores, Brand/Distributor Led B2B Stores, Cash & Carry Stores, E-B2B Platforms), FY’2019
Online B2B Retail Segmentation on the basis of Industries (FMCG & Grocery, Consumer Deliverable & Electronics, Beauty & Personal Care, Fashion & Accessories, Others), FY’2019
Online Startups in India, 2017-2019
Internet Users in India, 2014-2019
Market Size of Indian Online B2B Platform Industry, FY’16-FY’19
Working Model of an Online Listing & Marketplace
Working Model of a Back Office for SaaS OEM
Adaptation of SaaS in India
Online B2B Marketplace Business Model
Traditional Retail Value Chain & Pain Points Analysis
Modern Retail Value Chain of E-B2B Players
MSME Digital Penetration Rate in India
Digital Engagement of MSME’s with Various Services
Margin Growth for MSMEs due to Digital Adoption
Estimated Revenue Impact on MSMEs due to Adoption of Digitalization
Funding acquired by E-B2B Platforms, 2016-2019
IndiaMART Business Model
IndiaMART Buyers Geographical Concentration
IndiaMART Paying Subscribers- Suppliers Geographical Concentration
IndiaMART Overall Revenue Contribution by Entities
Trade India Business Model
Bizongo Business Model
Revenue Generating Proportion of Business, Bizongo
Udaan Business Model
Proportion of Sellers on Udaan
Shop X Business Model
Ninjacart Business Model
Jumbotail Business Model
Alibaba Business Model
Growth of Internet Users (mn), 2019-2023
Growth of B2B Retail in India ($ bn), 2017-2020
Non Agricultural MSMEs (mn), 2016-2021
Online B2B Platform Space in India ($ mn), FY’19-FY’25
Industry Segmentation Basis Region of Demand on E-B2B Platform, 2019-2025
Industry Segmentation Basis Nature of E-B2B Platform, 2019-2025
Future Growth Comparison between Peer Industries of Online B2B Platforms
Capitally Efficient Growth Comparison of B2B Platforms & B2C Platforms
Number of Online Shoppers, segregated on the basis of Regions, 2016-2022
Proposed Business Framework for a Vertical Online B2B Packaging Platform
Research Methodology- Market Sizing Approach
Research Methodology- Survey Demographics
List of Table
B2B Retail Category Industry Margins, FY’19
Online B2B Retail Segmentation on the basis of Industries (FMCG & Grocery, Consumer Deliverable & Electronics, Beauty & Personal Care, Fashion & Accessories, Others), FY’2019
Online B2B Platform Market Segmentation – Region of Demand (Metros & Tier I Cities, Tier II Cities, Rest of India), FY’19
Online B2B Platform Market Segmentation – Nature of Online Platform (Online Listing Platforms, Online Marketplace), FY’19
Cross Comparison of B2B Marketplace Models (Financial)
Cross Comparison of B2B Marketplace Models (Operational)
Cross Comparison of Major Online B2B Platforms (1/2)
Cross Comparison of Major Online B2B Platforms (2/2)
Key Operating Parameters- IndiaMART
Financial Analysis of IndiaMART
Share Holding Pattern of IndiaMART
Key Operating Parameters- Trade India
Financial Analysis of Trade India
Share Holding Pattern of Trade India
Key Operating Parameters- Bizongo
Investment Analysis of Bizongo
Financial Analysis of Bizongo
Share Holding Pattern of Bizongo
Key Operating Parameters- Udaan
Investment Analysis of Udaan
Financial Analysis of Udaan
Share Holding Pattern of Udaan
Key Operating Parameters- Industry Buying
Investment Analysis of Industry Buying
Financial Analysis of Industry Buying
Key Operating Parameters- Power2SME
Investment Analysis of Power2SME
Key Operating Parameters- Moglix
Investment Analysis of Moglix
Cross Comparison of Successful B2B Platforms (1/2)
Cross Comparison of Successful B2B Platforms (2/2)
Key Operating Parameters- Shop X
Investment Analysis of Shop X
Financial Analysis of Shop X
Share Holding Pattern of Shop X
Key Operating Parameters- Ninjacart
Investment Analysis of Ninjacart
Financial Analysis of Ninjacart
Key Operating Parameters- Jumbotail
Investment Analysis of Jumbotail
Financial Analysis of Jumbotail
Share Holding Pattern of Jumbotail
Key Operating Parameters- Alibaba
Financial Analysis of Alibaba
Share Holding Pattern of Alibaba
Research Methodology- Consolidated Research Approach
Research Methodology- Primary Research Approach
Primary Research Approach & Operational Analysis Inclusion
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