B2B. It's been talked about by more people and at more places than most of us care to remember. So why are we still talking about it? Simply because there are a few changes happening here. B2B traffic is slowly moving away from big markets and sectors, to narrower lanes. It's becoming more niche-oriented, encompassing unorganised areas and markets.
While the first portals to come out concentrated on big industries like steel, automobiles, and chemicals, B2B websites have begun to tackle smaller sectors like paper, cement, plastics, engineering and agro products. "It's about more efficient business processes," explains Rohan Ajila of Indiamarkets.com. "But moving into niche areas is the name of the game. We have moved into every category there is so, while competing with niche portals, what makes us different is the large number of services under one roof."
Currently into 150 kinds of businesses and integrating more continuously, Rohan agrees that niche portals will offer competition. While matching customers to commodities is by now a well-worn theme in cyberspace, most sites still remain bullish about the issue. Vidyadhar Sarfare, CEO, Indiaengineering.com, an e-marketplace for industrial products and services, says: "We will survive because, in a fragmented market, we have the right partners and an experienced team."
To market, to market
As far as the nature of the market is concerned, the rules vary. For businesses like steel and automobiles, where market shares are concentrated in the hands of a few big business houses, it becomes imperative for any online venture to involve these companies. When it comes to segments like plastics, engineering and agro-products, however, where the market is fragmented and largely unorganised, a stand-alone B2B portal makes good business sense.
Rohit Gera, CEO, Indiaconstruction.com, adds, "We do not want to threaten the dealer network that is an integral part of the cement industry. What we would like to do is add on value to their way of doing business and support the middleman. Besides, we are providing a neutral marketplace for our end users."
Others have opted for another route. For example, The Baglas, Appejay Group and Khaitans have formed TeaAuction which, in turn, is being used by HLL, Tata Tea and Nestle. In the case of the plastic industry, the case is the opposite. According to Vikram Somani, CEO, Kagaz.com, "It makes sense for us to play a pivotal role as the paper industry is fragmented, has high inefficiency costs and lacks a trust-based trade. We are filling in the gap that hinders industry growth, and aim to help it become more efficient. We are trade facilitators, not trade replacers."
Ways and means
How do these 'trade replacers' work? For one, the business models and technology being used differs, as each site tries to bring gains to the industry keeping infrastructure considerations in mind. EplasticsIndia has a direct marketing and sales team which goes out to educate users not just about benefits of the site but about the Internet as well. For IndiaConstruction.com, their offline centres are as important as their online presence. "This is like any other business, which requires a certain amount of investment. We want to help people make the transition to buying on the Net with the minimum amount of turbulence."
What you get
The sites all claim to offer a plethora of services for the benefit of users. From a low cost of customer acquisition to an easy break into the International Market, the sky is the limit for those who want it bad enough.
Indiaengineering.com offers logistics services, online payments, and insurance platforms along with international trade development, through marketplace to marketplace alliances. Also in the pipeline are alliances in advanced stages of negotiation with key players in the Asian, European and US marketplaces.
Indiacontruction.com adopts the Net-to-Fax technology to keep those without an Internet connection connected and lure them online. Its target is the middleman who is the link to making the money. As for the margins, they come from advanced subscriptions, premium banner positions and, later, from commissions.
Teaauction.com conducts online auctions for a few hours of the week, while Matmanage.com offers services like sealed bids. Others, like ChemB, have credit options and offer a package deal of solutions with logistics, payment, credit and transport. All this comes at a commission of 1 to 3 per cent, which is pretty much the standard for most.
Where to, now?
Up is the only way, according to most sites. Spouting facts, Vidyadhar Sarfare claims that his marketing team in the back office has currently tied over 950 buyers and more than 50,000 suppliers, 20,000 of which are active sellers, in a little over four months. "We have fulfilled transactions worth INR 750 million, through e-procurement (Reverse Auction) and auctions on our platform, for major industry houses like Bharat Forge, Tata Engg, Atlas Copco, Mico, Thermax, Kirloskar, etc. in India."
Likewise, despite many B2b sites shutting down, an upward curve is what most predict. Anurag Saraf of SteelRx.com says that difficulties arise on the Internet when people try to offer B2b services for an industry which they are not already a part of and have no real links with.
The ultimate winner, then, is the consumer. More to choose from, more flexibility, more services, more ease. So, who's complaining?
Site Reviews
India Markets
B2B marketplace. List your offers, scan offers that meet your requirements, do a category or
product search, hive off excess inventory or machinery, read news. Has launched real world
e-business centres, in major cities, which enable buyers/sellers without a computer to transact
on the net.
Tea Auction
A comprehensive site for tea or chaai. It has two parts - information and auction. Information
is divided and categorised to suit specific needs of the planter, the blender, the buyer and the
seller. In the auction segment, buyers and sellers can participate in the auction.
IndiaConstruction.com
A site for both buyers and sellers of construction equipment. The site has news on the construction industry, and a directory of dealers in construction equipment.
India Engineering
B2B engineering portal. Features a directory of engineering companies, news, tenders, auctions, jobs and humour. You can buy and sell engineering products here.
Kagaz: Portal for Paper Industry
For all those even remotely connected with the paper industry, this is as good a site as any.
Features extensive sections on government policies, taxation, custom duties etc, news and
event and types, properties and testing of paper. Also has sections for different categories of
surfers: manufacturers, customers, traders, associations, equipment, consultants, suppliers, etc.
A bulletin board, free email newsletter and online utilities like paper calculator are added
features.
ChemB.com
The first online chemical bazaar of India is what this URL leads to. How does it work?
Through a secure trading mechanism wherein buyers are prescreened and authenticated,
letting only reputed suppliers to sell through the site from their own customised store front.
Steel RX
A b2b portal for the steel industry. Buyers, traders, manufacturers can log on and trade online.
Tell us what you think of this article
