Application

of Statistics
In Real life

By: Shrestha Pranay And

Shivam Surya Nirwana
Statistics
Statistics is the discipline that concerns the
collection, organization, analysis,
interpretation, and presentation of data

It forms a key basis tool in business and

manufacturing as well. It is used to
understand measurement systems variability,
control processes for summarizing data, and
to make data-driven decisions.

It is used with machine learning and big data

in various fields but the underlying concept
still consists of the basic measures of central
tendency (mean, median, mode).
 Uses Of Statistics
Today, statistical methods are applied in all
fields that involve decision making, for
making accurate inferences from a collated
body of data.

➔ Weather Forecasts ➔ Sports

➔ Financial Market ➔ Education

➔ Emergency Preparedness ➔ Quality Testing

➔ Political Campaigns ➔ Insurance

➔ Predicting Diseases ➔ Aerospace

Analysing
E-Commerce
in
India
Introductio
n
India is rapidly marching towards becoming a digitally empowered society. The push for e-
governance, the proliferation of smartphones, increasing Internet access and booming digital
payments are fueling the country’s journey towards a trillion-dollar digital economy by 2025. The
widespread acceptance of Digital is being seen as a catalyst for overall economic growth, and with
the combination of favorable demographics and policy reforms, India presents a unique and
powerful growth story.
As most Indians have started shopping online rather than stepping outside their houses, the
Indian e-commerce sector witnessed an increase. Also, as per the Mckinsey report, ~96%
consumers have tried a new shopping behaviour; ~60% consumers are expected to shift to
online shopping and continue beyond the COVID-19 pandemic.
India is arguably the world’s most promising Internet economy, with a rapidly increasing ‘netizen’
population. With improving data affordability, consumption growth and newer financial products,
the e-commerce market is set to grow, be it across e-tail, travel, consumer services or online
financial
services. From the next set of online shoppers, three out of every four customers are expected to
come from Tier II cities or beyond, and a vast majority of them would be less tech-savvy, seek
Major E-
Commerce
Platforms of India
 * Values of sales and profit are in millions of US $
Correlation Analysis (Amazon)

* A positive correlation shows the direct relationship between sales and profit
of the company.

* As the coefficient is close to 1, there is a very high correlation between these

two variables i.e., Sales(Y) and Profit(X).
 450000
400000 386064

350000
300000 280522

250000 232877
Profits

200000 177866
150000 135987

100000
50000
0
0 5000 10000 15000 20000 25000

Sales
 * Values of sales and profit are in millions of US $
Regression Analysis (Amazon)
 * Values are in crores

Cross Analysis with other companies

Amazon Flipkart Shopclues Snapdeal
2014 8890 2840 79.2 933
2015 10700 9530 209.46 1457
2016 13598 13170 180.3 1180
2017 17786 15560 273 527
2018 23288 21650 209.46 899.2
2019 28052 43615 270.30 882.9
2020 38606 34610 200 530
 Chart Title
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2014 2015 2016 2017 2018 2019 2020

Amazon Flipkart Shopclues Snapdeal

 Rise of
E-Commerce in
India
Owing to the increasing internet
user base and favorable market
conditions, India has a lot of
potential in the e-commerce
industry. Growing at an exponential
rate, the market value of the
e-commerce industry in India was
approximately 64 billion U.S dollars
in 2020. This number is estimated
to reach 200 billion U.S. dollars by
2027.
E-Commerce Market Size Forecasts Until
2027
Propellers to this
Rise
Growing Demand Govt Initiatives Increasing
E-commerce companies Government initiatives like
reported sales worth Digital India is constantly Awareness
US$ introducing people to
4.1 billion across online modes of As the awareness of using
platforms in the festive commerce internet is increasing,
week of October 2020 more and more people
(October Favourable FDI policy are getting drawn to
15-21), driven by increased is attracting key E-commerce.
demand for smartphones. players
Of the total sales, 55% Whether it’s sellers, buyers,
share was generated from users or investors, more
Tier-II cities such as and more people are
Asansol, Ludhiana, adapting to the use doing
Dhanbad and Rajkot. commerce online.
 Soaring
Revenue

Revenue in the eCommerce market is projected to reach US$55,099m in 2021.

The online grocery segment that is around $3 billion will reach $29 billion in size by
2024, i.e. Online grocery orders will grow from 8,70,000 per day in 2020 to more
than 5 million per day by 2024.
 Growth of
Users

In the eCommerce market, the number of users is expected to amount to 948.4m by 2025. Although
shoppers between 25 and 34 years of age have been the most active on E-commerce portals, a surprising
number of older people have increasingly started to shop online. However, the age group of 15-34 years are
the major consumers of E-commerce as the popularity of web series among millenials is growing
immensely
Shares of Various Segments in Online
Retail
The online retail market in India is estimated to
be 25% of the total organized retail market and
is expected to reach 37% by 2030.

Electronics & apparels are currently the

biggest contributor to online retail sales in
India with a share of 40% each. By 2025, non-
electronics categories are expected to take
80% share in online retail in India.

Driven by lower data rates and investments to

enhance customer experience, the Indian e-
retail witnessed a rapid increase in shopper
penetration, as online platforms are innovating to
onboard the next billion of shoppers.
S
h
 Mode of
Payment

In India, 66.6 billion transactions worth US$ 270.7 billion are projected to shift from cash transactions to card and
digital payments by 2023 and rise to US$ 856.6 billion by 2030. In terms of the real-time digital payment
infrastructure, backed by UPI and 24x7 NEFT, India has been ahead of the curve. The COVID-19 pandemic has led to
a further rise in digital, contactless payments as customer behaviour has shifted from cash to card. In addition, market
engagement and convenience are bound to improve dramatically with new players introducing their payment deals
and growing acceptance of 'Buy Now Pay Later' schemes.
Conclusion
The Indian E-commerce industry has been on an upward growth
trajectory and is expected to surpass the US to become the second
largest
E-commerce market in the world by 2034. India e-commerce sector will
reach US$99 billion by 2024 from US$30 billion in 2019, expanding at a
27% CAGR, with grocery and fashion/apparel likely to be the key drivers
of incremental growth.

The Indian e-commerce sector is ranked 9th in cross-border growth in

the world, according to Payoneer report. Indian e-commerce is projected
to increase from 4% of the total food and grocery, apparel and consumer
electronics retail trade in 2020 to 8% by 2025.

Huge investments from global players, such as Facebook, which is

investing in Reliance Jio—are being recorded in the e-commerce
market. Google also reported its first investment worth US$ 4.5 billion
in Jio Platforms. This deal was followed by the purchase of Future
Group by Reliance Retail, expanding the presence of the Ambani
Group in the
Much of the growth in the industry has been triggered by increasing
internet and smartphone penetration. As of August 2020, the number
of internet connections in India significantly increased to ~760 million,
driven by the ‘Digital India’ programme. Out of the total internet
connections, ~61% connections were in urban areas, of which 97%
connections were wireless.

The Government of India's policies and regulatory frameworks such

as 100% Foreign Direct Investment (FDI) in B2B E-commerce and
100% FDI under automatic route under the marketplace model of
B2C
E-commerce are expected to further propel growth in the sector.

Through its Digital India campaign, the Government of India is aiming

to create a trillion-dollar online economy by 2025.
 Sources Used
➔ https://www.statista.com/outlo
ok/243/119/ecommerce/india#
market-globalRevenue

➔ https://en.wikipedia.org/wiki/E-
commerce_in_India#Market_size
_ and_growth

➔ https://www.ibef.org/industry/e
commerce-presentation
Thank You