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B2B e-commerce to touch Rs 45 lakh cr by 2020 in India

Global B2B e-commerce market expected to reach $1.7 trillion by 2015

BS Reporter  |  Ahmedabad 

B2B e-commerce to touch Rs 45 lakh cr by 2020 in India

By 2020, the business-to-business (B2B) segment of the burgeoning industry in India is set to grow by 2.5 times to touch Rs 45 lakh crore, says a report by Ahmedabad-based consultant firm in. By end of 2015, the 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 set to take its own bigger leaps as compared to the B2C is concerned. The global market is expected to reach $1.7 trillion by 2015 and is twice as big as B2C market. By 2020, global 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 market as compared to B2C," said Chirag Dagli, Director - Strategies, in.

What's more, within the among the 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 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 market such as implementation of technology, logistics and taxation, among others. "Technology implementation is difficult, and reaching to target profession requires approached e-marketing and differential marketing. 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," in stated in the report. Meanwhile, in terms of future potential, the report stated that among the e-commerce, public market places could emerge as the lead segment. "If 100% FDI capital is allowed in 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 flourish," the report observed.

First Published: Fri, September 04 2015. 17:32 IST