Evolution of Ecommerce in India

Since the e Commerce industry is fast rising, changes can be seen over a year. The sector in India
has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014. The sector is
expected to be in the range of 22 billion USD in 2015. Currently, eTravel comprises 70% of the
total eCommerce market. eTailing, which comprises of online retail and online marketplaces, has
become the fastest-growing segment in the larger market having grown at a CAGR of around
56% over 2009-2014. The size of the eTail market is pegged at 6 billion USD in 2015. Books,
apparel and accessories and electronics are the largest selling products through eTailing,
constituting around 80% of product distribution. The increasing use of smartphones, tablets and
internet broadband and 3G has led to developing a strong consumer base likely to increase
further. This, combined with a larger number of homegrown eTail companies with their
innovative business models has led to a robust eTail market in India rearing to expand at high
speed

The rapid growth of e-commerce in India

Over the last two decades, rising internet and mobile phone penetration has
changed the way we communicate and do business. E-commerce is relatively a
novel concept. It is, at present, heavily leaning on the internet and mobile phone
revolution to fundamentally alter the way businesses reach their customers. While
in countries such as the US and China, e-commerce has taken significant strides to
achieve sales of over 150 billion USD in revenue, the industry in India is, still at its
infancy. However over the past few years, the sector has grown by almost 35%
CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 20131 .
Industry studies by IAMA2 I indicate that online travel dominates the e-commerce
industry with an estimated 70% of the market share. However, e-retail in both its
forms; online retail and market place, has become the fastest-growing segment,
increasing its share from 10% in 2009 to an estimated 18% in 2013 .
Calculations based on industry benchmarks estimate that the number of parcel
check-outs in e-commerce portals exceeded 100 million in 2013. However, this
share represents a miniscule proportion (less than 1%) of Indias total retail market,
but is poised for continued growth in the coming years. If this robust growth
continues over the next few years, the size of the e-retail industry is poised to be 10
to 20 billion USD by 2017-2020. This growth is expected to be led by increased
consumer-led purchases in durables and electronics, apparels and accessories,
besides traditional products such as books and audio-visuals.
E-commerce logistics models: A radical shift from regular logistics:
The strong emergence of e-commerce will place an enormous pressure on the
supporting logistics functions. The proposition of e-commerce to the customer is in
offering an almost infinite variety of choices spread over an enormous geographical
area. Firms cannot compete solely based on sheer volumes in todays ever-evolving,
information symmetric and globalised world of e-commerce. Instead, the realm of
competition has shifted to delivering to ever-shortening delivery timeliness, both
consistently and predictably. Negligible or zero delivery prices, doorstep delivery,
traceability solutions and convenient reverse logistics have become the most
important elements of differentiation for providers. While the current logistics
challenges relating to manufacturing and distribution of consumer products and
organised retail are well-known, the demands of e-commerce raise the associated
complexities to a different level. E-commerce retailers are wellaware of these
challenges and are cognizant of the need to invest in capital and operational assets.
Reaching the customer: Going beyond the traditional definition
The essence of e-retailing is in its ability to transcend physical boundaries and reach
customers in a manner different from the traditional brick-and- mortar stores, to
their very doorstep. However, the base of the e-retailing model is technology and
logistical solutions that facilitates the customer acquisition and the final reach

process. E-commerce further brings to the table vagaries in customer orders

accompanied with difficult scenarios such as free delivery, order rescheduling,
cancellation, returns and cash-on-delivery. Additionally, an expected minimised
turn-around-time (TAT) which will potentially lead to word-of-mouth publicity,
feedback and customer retention to the e-portal or website. An information network
which shares updated information with respect to inventory status, demand
schedules and forecasts, shipment schedules and promotion plans among all the
stakeholders of the supply chain will form the backbone of an e-retailer. Domestic
suppliers Master warehouse Regional distribution centers Retail store 1 Retail store
2 Retail store 3 Retail store 4 Domestic suppliers Domestic suppliers Parcel hub /
sortation center E-fulfillment center Delivery Pick-up point International suppliers
Need for different management of physical infrastructure
The business model of the conventional retailers and e-commerce providers differ
significantly. The conventional infrastructure model relies on increasing depth and
breadth of coverage through several inventory nodes, warehouses and stocking
points connected by based on various other factors ranging from production cycles,
nature and variety of the SKUs to even local taxation laws. The conventional order
point occurs at retail stores and static customer fronts located at the end of the
chain, and inventory requirements are predicted empirically based on several
months or years of past data. In fact, competing sales channels may also duplicate
infrastructure, an indication of the typical sub-ordination of the logistics function
within the overall sales and distribution process.
On the other hand, ecommerce providers operating either through inventory-led or marketplace models,
are entering an entirely different paradigm of operations, where management of the
supply chain is core to the business of creating more business. With real-time
demand and tight delivery expectations, the supply chain needs to be built from the
customer-end, with the fundamental difference being the proliferation of delivery
points and the need to move large number of orders of small parcels (one or two
goods) across the length and breadth of the country at an affordable cost. In India,
foreign direct investment (FDI) within the business-to-consumer (B2C) e-commerce
segment is not allowed where as foreign investment in the business-to-business
(B2B) e-commerce segment is allowed. This means that inventory led e-retailing
model cannot attract FDI whereas market-place based e-retailing model can still
attract FDI. Most e-retailers have started practicing the market-place business
model with suppliers storing on their behalf and delivering as per the requirement
and thus falling under the B2B category.

The need to build infrastructure for increased agility

The key to success in e-commerce is an efficient last-mile network to ensure
timebound delivery while maintaining agility in the logistics chain. The fundamental
SKU at the delivery point is a parcel, of varying shapes and sizes, while the pincodes of the operation become the determinant of the last-mile network model. The

up-stream infrastructure will then need to be built as a layer over this last-mile
network with strategic location choices of fulfillment centers proximal to delivery
modes. The operations will need to be tightly controlled in such a way that the
inventory stocks are converted to parcels and pushed down the chain efficiently, as
well as that the fulfillment centers are replenished. The balance between inventory
and supply chain costs is therefore a dynamic decision to be taken, considering both
cost and service level considerations. While the conventional logistics models have
evolved in a way to expand reach for businesses at the lowest cost in a push
model, e-commerce businesses will feel the need for greater agility in their supply
chain that will be more responsive to customer demands that are variable and less
predictable. The sheer variety of the product and destination choices and fulfillment
modes will mean that the provider cannot afford to stock the entire supply chain
with sufficient inventory to fulfill customer needs. The customer order point will
need to be pushed further upstream, from where pull from the customer is
recognised, tracked and met through rapid fulfillment methods.
The implications of product choices on infrastructure networks
The network design and the agility of the supply chain will also be influenced by the
products carried. E-retailers have been able to attract significant customers to
online buying but these are still limited to very exclusive categories such as
consumer electronics, apparels and lifestyle, books, music and video. In the future,
other categories such as food and beverages, departmental store, home
furnishings, autoparts, healthcare and office equipment will also see increased ecommerce activity.
It is important to note that each product category will have its own customised
logistics requirements which can alter the balance between inventory and supply
chain costs. Within the apparel and lifestyle category, for example, localised
suppliers or warehouses can be used to good effect in tune with the buying patterns
and ensuring seasonal inventory replenishment. For books, music and video, a large
centralised inventory for a large region may be better suited. For consumer
electronics and durables, which have lesser SKU proliferation, higher product value
and higher security and handling needs, a JIT and direct fulfillment model may need
to be put in place. For hot and cold merchandising, localised sourcing and
continuous availability of temperature controlled infrastructure throughout the
supply chain becomes the critical need. The challenge is to ensure that the supply
chain needs of the specific product segments are married with customer
propositions that offer better customer value than traditional retail models.
Logistics infrastructure to be the weakest link in the Indian e-commerce story
Logistics in developing economies such as India may act as the biggest barrier to
the growth of the e-commerce industry. Till date, logistics models developed in India
target the metropolitan and the Tier-1 cities where there is a mix of affluent and

middle classes and the internet penetration is adequate. In India, about 90% of the
goods being ordered online are moved by air, which increases the delivery costs for
the e-retailers. Most e-retailers were initially dependent on third party delivery
firms. However as the market evolves and customer expectations increase, city or
geography centric service levels are becoming the need of the hour. Moreover,
issues specific to e-retailing such as the problems associated with fake addresses,
cash-on-delivery and higher expected return rates have made e-retailers consider
setting up their captive capital intensive logistic businesses. For instance, Flipkart
has set up several regional warehouses and is constantly increasing the supplier
base across the country to achieve low transportation cost by ensuring delivery
from the nearest supplier or regional warehouse. Flipkart is growing its logistics arm
E-Kart whereas Amazon India is building capacities with its logistic arm Amazon
Logistics. While establishing the captive logistics infrastructure was a consequence
of need for better service delivery by actively controlling the logistics chain, it has
pushed up the delivery costs. According to industry benchmarks, the delivery cost in
the captive logistics models are 10 to 2% expensive than the 3PLs whose expertise
lies in quick delivery at an affordable cost. Further, the logistics set-up and
requirements in developing countries are also dependent on the purchasing
behaviour of the customers

Business Model
E-commerce market in India has started to become
crowded and complex with several players fighting
for a fair share of customers mind and wallet. As
the competition in the e-commerce heats up, the
companies are using multiple business models in order
to get customer attention including:
Inventory model e.g. Shopper Stop, Croma
Social networks e.g. TripAdvisor
Aggregator Model e.g. Ola Cabs
e-Marketplace e.g. Flipkart, Snapdeal
Transaction broker e.g. IRCTC
Click and Collect service e.g. Amazon
To survive and sustain operations in the competitive
market, companies are also taking advantage of one or
multiple revenue models including:
Advertising revenue model e,g. Yahoo.com
Subscription revenue model e.g. Flintobox
Transaction fee model e.g. eBay
Sales revenue model e.g. Amazon
Affiliate revenue model e.g. CouponDunia

Enabling Technologies

The greater adoption of Internet and smartphones is

the biggest driver of e-commerce in India. Internet
penetration is rapidly increasing with around 300
million users in 2014. The smartphone is steadily
growing and consists of 35% of the overall mobile
phones market in the country. 7 The success rate of
some of the technologies is directly connected to the
success of e-commerce.
Cloud: Most of the e-tailers are depending on cloud
technology for its flexibility, scalability, availability,
mobility, and efficiency. Cloud communications can
be an important enabler in helping e-commerce
companies in ensuring personalized consumer
engagement throughout the purchase cycle and also
in executing effective and near real-time marketing
campaigns.
Mobile Applications: More than 235 million people
in India access internet through mobile devices. This is
the primary reason for e-tailers to focus their efforts on
mobile app penetration across the country. The mobile
applications are helping to reach more customers
located even in remote and rural areas. E-commerce
companies have been able to bridge the service gap
considerably by sending service updates and other
communication via their mobile app, e-mail, and SMS.
The revenue coming from mobile app is on the rise e.g.
50% for Flipkart while 70% for Quikr. 8 Customers can
get alerts, view product catalogues, purchase and pay
with a simple mobile application offering a compelling
user experience. Also, from mobile usage, the e-tailers
get valuable customer information which can be used
for analytics to improve their services and sales.
Digital Advertisements: The digital advertisement
industry is growing rapidly as there is a growth in
digital communication devices around the world. The
increase in smartphones, tablets is enabling advertisers
to reach a wider audience. According to analysts, the
Indian online ad market will grow year-on-year at 30%
to reach ` 35.75 billion by March 2015. 9 The digital
advertisements are flexible and can be adapted for
any kind of device like Television, laptop, tablet, or
smartphone. The two-way interactive capability and
the ability to customize the ad for target audience also
make digital advertisements more effective.
Search Engine Optimization (SEO): With thousands
of products in the digital catalogues, the e-commerce

players find it easy to be visible with the help of SEO

technology. SEO can help the websites to be more
specific, measurable, realistic, and time efficient and
hence can significantly boost profits. E-tailers should
optimize the critical aspects of their online store and
earn rich snippet displays in search results on various
search engines to drive more targeted, motivated
buyers to their products.
Though the e-commerce sector is growing
exponentially in India, it faces several challenges like
customer mindset, high cash on delivery (CoD) based
orders, reachability, poor courier services and other
policy-related issues.
High competition: There are several players doing
the same business in almost the same way. With
intense competition the profitability is decreasing due
to aggressive pricing strategies, heavy discounts and
offers, free delivery, high commissions to affiliates
and vendors during sale period to name a few. Online
retailers lost around ` 10 billion because of heavy
discounts to attract customers.10
Poor logistic & supply chains: E-commerce
companies live on the reach and the ability to stock
more items than physical stores as these are their
biggest differentiators. With this benefit also comes
the challenge of robust supply chains and logistics
networks, which are not comparable and developed
to global standards in India. The courier companies
do not have nationwide delivery networks and also
do not have the skills of handling commercial value
goods. They also do not have the skills for handling
CoD, recheck return parcels, and other complexities
related to digital sale. This is forcing several e-tailers to
establish their own delivery network across the country
and might have to engage with multiple shipping
methods using FedEx or DHL for the last mile delivery.
Payments: E-commerce companies have to offer a
wide variety of payment options including CoD, credit
and debit card, internet banking, among others.
60-70% of the payments are made using the CoD
option in India as customers fear to share information
online and do not trust the website for secure
payments. Moreover, the return percentage of orders
in CoD is much higher compared to online payments.
To counter these fears, e-tailers have started to provide

facility of paying with Card on Delivery. For example,

Amazons delivery person brings point-of-sale device to
accept payment at customer premise.

Trends
Time for stronger Mergers & Acquisitions: The year
2014 saw some high profile mergers and acquisition
in the Indian digital commerce sector. The biggest one
being the Flipkart and Myntra merger, which was ` 20
billion deal helping reduce completion in the market.
The Ibibo Group, a subsidiary of the South African mass
media company Naspers, acquired Pilani Soft Labs,
which runs bus ticketing website redBus.in for about
$135 million. Ola Cabs acquired the rival TaxiForSure for
$200 million to eliminate competition. These deals have
further bolstered investor confidence in the sector. M&A
trends are expected to follow in the coming years as
the industry consolidates backed by high valuations and
scaling up operations.
Living on valuations: The staggering growth of
digital commerce is attracting investors from within
and outside the country. The homegrown players
Flipkart and Snapdeal are taking every necessary step
to stay ahead in the race. Online players remain optimistic
of the profitability of their ventures in the long
term and continue to invest heavily to build capabilities
and gain bigger share of the market.
As per analysts, the ` 200 billion investments in e-commerce
in 2014 were driven by sky-high valuations. 11
The valuation of Flipkart sharply increased from $1.9
billion at the start of 2014 to reach $11 billion by the
end of the year. 12 It raised $1.9 billion in three rounds
of fund raising despite incurring losses of around ` 4
billion. Similarly, Snapdeal saw its valuation increase
from $350 million to $3 billion after raising funds of
$850 million. 13 Snapdeal also posted losses of ` 2.64
billion in FY14. 14 The valuation can play a major role
for an e-commerce player irrespective of the profitability
of the company.
Vertical specific e-tailers on the rise: Vertical specific
e-tailers find it motivating to focus on a niche product
or service as they can differentiate their services from
mainstream e-commerce players. The value proposition

of these ventures helps them raise funds easily and also

helps in customer acquisition as they generally try to
solve the challenges faced by people daily. The critical
aspect of these industry specific ventures is offering a
compelling and user-friendly experience, mostly driven
by convenience, richness of information, and cost
effectiveness.
Big Basket, an online grocery store, is marketing to
deliver groceries at home without the hassles of traffic
and saving time to do better things. Ola Cabs, a cab
service provider, differentiates its offerings by providing
a great user experience to people looking for car rentals
and cab service.
There are many innovative startups coming in the service
industry trying to organize the unorganized sectors in
India. For example, UrbanClap, an online platform for
customers to scout for the best professionals in the
service industryarchitects, wedding photographers,
yoga teachers, educational counselors or lawyers.
Similarly, innovative startups like Timesaverz provide
online platform for home services plumbing, repair,
electrician, or cleaning to the urban people who are
ready to pay a price for convenience. 15 According
to Deloitte prediction, Massive Open Online Courses
(MOOCs) could be successful for test preparation in
Freemium model, where the basic content would be free
while advanced content and tutoring would be a paid
service. 16 It was predicted that MOOCs could represent
about 10% of all the courses taken globally in tertiary
and enterprise continuing education by 2020. The eVisits
have proven in developed world, and as the necessary
infrastructure is deployed in the developing world, they
are likely to offer affordable primary medical and diagnostic
care to very large populations that do not have
access today. 17 Deloitte had predicted that in 2014,
there will be 100 million eVisits globally, potentially
saving over $5 billion when compared to the cost of
in-person doctor visits.
Retailers are going online: The big retailers are trying
to complement the traditional retailing with digital
commerce by tying up with big e-tailers. The partnership
between Snapdeal & Croma or Amazon & Future Group
owned Big Bazaar is no more a partnership between two
retailers. It has extended to a vendor and technology
partners offering technology and logistics services.

Reliance retail is planning to launch its e-commerce

website seeking to attract people from online retailers.
Shoppers Stop is revamping its digital platform, which
currently contributes 1% of the revenue. 18 The extended
reach of the online channel is the primary reason for
offline retailers to launch e-commerce offerings.
Indias e-commerce market is set to hit $76 billion by
2021 from $13.6 billion in 2014, according to e-Tailing
India. 19 However, as business model changes have
become more frequent and delivery more complex,
increasing innovation in promotion, pricing, sale, and
even distribution channels will be seen going forward.
Entrepreneurial ecosystem is evolving with innovative
startups capturing the mass market of India and taking
opportunity in solving some of the big challenges faced
by the country. For example, BigBasket & MyGrahak for
delivering groceries at home, Portea Medical with home
medical care, Housing.com for realty based challenges.
Riding high on commissions
There has been rise in startups that primarily depend
on commissions to earn their revenue. For example,
Freecharges primary revenue source is commissions
from telecom operators which ranges from 2% (for
incumbent operators) to as high as 5% (for new & small
operators). 20 IRCTC, which accounts for almost 40%
of India's online travel, makes 60% of its profit from
commissions on ticket sale. 21
In such business models, the e-commerce provider offers
the online platform to the merchants to gain better
visibility and reach in the market. At the same time, they
provide the market intelligence and data to better target
their products and services compared to competition.
This helps in solidifying the relationship with merchants
and also to increase their user base. For example,
Foodpanda have helped restaurants develop their online
footprint in the market. 22
E-commerce sites such as CouponDunia have also
started to gain commission from brands on redemption
of their free coupons offered by the site. The affiliate
websites of price comparison, cash-back offers, discount
coupons, etc. which are estimated to account for 8%
of e-commerce sales in India, furthermore gain significant
commissions from other e-commerce sites such as
Flipkart, Amazon, Snapdeal to help drive traffic to these
sites. 23 These commissions could range from 5% to 50%
depending on the product range, time span, and the

size of players.
From a transport app service provider Uber in the west
to Ola Cabs in India, the aggregator model has already
written its success story. Aggregators could be market
creators (e.g. eBay, Zomato, Portea Medical) providing a
digital environment where buyers and sellers can meet
and transact or transaction brokers (e.g. MakeMyTrip,
BookMyShow) to process online transactions for
consumers. Their revenue model is generally based on
transaction fees for enabling or executing the transaction
and value proposition is convenience, on-demand
and cost effectiveness for the consumer. Although
the backend of these marketplaces involves extremely
complex integration to create sharing economy, but
the success of these ventures depends on the simplified
experience they can provide to buyers, sellers, and even
the employees. Hence, simplicity is the core to these
types of ventures providing the user desired products
and services at the click of a button. For example,
Ola Cabs punchline Book a taxi with one touch! The
customer, on the other side, not only appreciates the
WOW experience but is also ready to pay for the value
he or she receives.
These companies are poised to disrupt the incumbents
in several sectors such as transport, travel, hospitality,
pharmaceutical among others. This is influencing the
growth of vertical e-commerce in India with startups
such as Portea Medical, Foodpanda, RedBus, Housing.
com building on the customer loyalty and lifetime value
by offering a compelling buying experience so that the
customer moves from brick and mortar stores to online
platforms.
Retailers exploring omni-channel presence
Omni-channel retailing is a relatively new concept that
refers to the development of a seamless approach to
the consumer experience through all available shopping
channels, such as brick-and-mortar stores, smartphones,
tablet computers, personal computers, direct mail, television,
radio, catalog, and the likes.
With e-tailer disrupting the traditional shopping, every
16

retailer is looking for an online and offline presence

either through omni-channel or through marketplace

e-tailers. Retailers that enable more touch points and

focus on delivering a smooth, information-rich integrated
experience will benefit from higher share of
wallet, brand equity scores and ultimately more sales.
Successful cases in the west such as Macy's clickandcollect have not only proven that omni-channel
strategies can increase spending per customer, but also
improve customer satisfaction levels if implemented
properly. Similar option of click-and-collect is extended
by Amazon in India by providing physical locations
to enable customers to pick up the products at time
convenient to them.
According to Euromonitor, store-based retail sales will
increase 10% in the next five years, while online sales
are projected to increase by 40% in India. 24 The retailers
in India have also started to work on their omni-channel
sales strategy. For example, Future Group inked an
exclusive deal with Amazon while Tata Group owned
Croma partnered with Snapdeal to sell private brands
online and to leverage the strengths, investments and
innovations in technology and talent to reach out to
wider set of consumers. While the reverse is also true
with companies like FirstCry opening physical stores later
to complement the online sales and experience. Just as
physical stores are seeking to get into the online and
mobile space, the time is also right for online stores to
make their presence felt in the offline space.
Organized retailers will need to invest significantly more
to compete with the e-commerce giants. According
to analysts, all brick-and-mortar retailers together
spent about 10% of the advertising cost of top online
players.25
Increasing flash sale tactics
Flash sales are limited time offers of physical goods that
is mailed to an address and offered in limited supply
or for a short period of time. Flash sale sites, such as
Groupon and LivingSocial, targeted for US customers,
have enjoyed media buzz and merchant enthusiasm
for years. These types of daily deals are quite popular
in the western world and are now entering the Indian
market. A disruptive new business model, flash sales are
especially run on special days like festivals or weekends.
Such daily deals are now increasingly seen on Indian
e-commerce sites such as Flipkart, Snapdeal, Amazon,
where the stocks are generally cleared in few minutes.
For example, the Micromax subsidiary Yus sale of Yureka

smartphone saw all handsets being sold out in just 5

seconds on Amazon. 26 Such flash sales are also used for
quick experimentation of new products or services.
Snapdeal Savings Day deals are available to people
visiting the popular e-commerce store via desktop,
mobile, or apps, just as you'd expect. On the other
hand, Amazon, in a bid to promote the use of its apps,
is celebrating Amazon Appiness Day, wherein deals are
visible only to people who are browsing the store via
one of Amazon's apps. 27
Digital offers are still a popular promotional marketing
tactic, but merchants are demanding more value from
providers and seeking new ways to distinguish their
offers from those of their competitors.
In response to increasing competition and growing
demands from merchants, digital offer providers are
also trying to differentiate their sites and mobile apps,
attract new sellers and buyers by expanding into luxury
goods and exclusive experiences. For example, Snapdeal
acquired the luxury brand Exclusively.in to provide access
to widest range of aspirational, high-end products and
services.
E-commerce providers such Flipkart also provide a whitelabel
platform for other companies such as Chinese
smartphone-maker Xiaomi, which enable the scalable
execution of multiple flash sales by consolidating
expenses such as technology and sales. 28

Subscription-based ventures on the rise

The e-commerce subscription service is an emerging
trend that all online retailers could learn from.
Successful subscription models are based on product
discovery, demo or utility. Several ventures are offering
a range of products including cosmetics, healthcare,
food, educational toys, etc. on monthly subscription
basis as it provides regular recurring sale, predictable
inventory, steady cash flow and also an option to
upsell. The entrepreneurs who are behind some new
companies such as recreational toys provider Flinto or
healthcare provider HealthKart appreciate the flexibility
the subscription model delivers, as well as the deeper
customer relationships they can develop quickly. 29 The
loyal customers could amplify the brand and refer the

products to friends through word of mouth and social

media. Suppliers can test new products by sending
sample-sized products for free to targeted customers
and the e-commerce platform provider does not worry
about the margin as it gets the monthly subscription
from its customers. 30 In case of white labeling the
products, the e-commerce provider does not have to
manage huge inventory and can manage the demand
of its products better through subscription and it will
not lose in the price war against the incumbents. Such
models are beneficial for both customers and retailers.
The customer gets convenience at door step, free trial
of new products on regular basis. For a business, it
is a blessing as they can not only predict volume and
demand in advance but also reduce stock piling and
wastage. Since the subscription demands upfront
payment, the cash flows are safe and steady thus
maintaining investor confidence.
18