By 2020, the business-to-business (B2B) segment of the burgeoning e-commerce industry in India is set to grow by 2.5 times to touch Rs 45 lakh crore, says a report by Ahmedabad-based e-commerce consultant firm Ecumen.in. By end of 2015, the B2B e-commerce industry in India is estimated to be around Rs 19.13 lakh crore.
According to Ecumen, the global trend too will be on similar lines with the B2B set to take its own bigger leaps as compared to the B2C is concerned. The global B2B e-commerce market is expected to reach $1.7 trillion by 2015 and is twice as big as B2C market.
By 2020, global B2B market is expected to reach $6.7 trillion, almost four times from present size. Countries like USA, China, and Japan have the highest share of B2B market as compared to B2C," said Chirag Dagli, Director - E-commerce Strategies, Ecumen.in.
What's more, within the among the B2B drivers, classifieds alone stand at a value of $ 150 million wherein market size of the public marketplaces (transactions) is expected to be around $ 20 million by the end of 2015. However, as per the report, the current growth rate of public market places is 60% as compared to classifieds which is around 30%.
The report identified early public market places in B2B e-commerce segment such as Tolexo and Industry Buying that came up with the 'one stop shop' concept for industries. The report, however, also identified certain hurdles in the B2B e-commerce market such as implementation of technology, logistics and taxation, among others.
"B2B Technology implementation is difficult, and reaching to target profession requires approached e-marketing and differential marketing. B2B e-commerce in India have to develop strong business and logistical connections with exporters and businesses to ensure smooth product delivery. Interstate taxation is also a big problem wherein SMEs are restricting their online presence due to thinner margins online," Ecumen.in stated in the report.
Meanwhile, in terms of future potential, the report stated that among the B2B e-commerce, public market places could emerge as the lead segment.
"If 100% FDI capital is allowed in B2B e-commerce market, it would promote innovation like ERP integration (buyer and supplier), single window buying and service and solution alignment as per the business needs. Also, implementation of GST in 2016 would make India one market and that could help B2B e-commerce flourish," the report observed.