Indiatimes.com, whose concept is to be a portal for everything, launched Indiatimes Shopping in May last year. It offers a range of products from books and music to kitchenware, clothes, and food. The Indiatimes.com portal is a venture by Times Internet Limited, a subsidiary of the nations leading media conglomerate, The Times of India Group. But launching an e-business, even when backed by a large corporation, is challenging and takes time.

Says Mahendra Swarup, CEO of Times Internet Limited, A lot of information that customers get is from hearsay. They hear that transactions on the Internet are not safe, and believe it. We know that it is safe to buy on the Internet, but we need to communicate to the customers that it is safe.

Assessing the business behind the site
Establishing trust is a different game when communication with customers is electronic, with no face-to-face interactions. We think that e-commerce is something that will grow substantially, says Swarup. However, there are two obstacles which companies like Indiatimes.com will have to overcome: security and trust. In terms of financial transactions, technologically we are secure. Now we have to target other aspects to build business. We will have to focus on the softer aspects of trust, which I believe will have more value for the future than considering only financial security.

The model developed by DNV called EBtrust addresses security by verifying that a business has installed the necessary technology and systems to secure electronic payments. However, it takes a wider approach to building trust in e-businesses. Assessing both management systems and technological solutions, EBtrust reflects the overall capacity and capabilities of companies to operate an e-business. An EBtrust mark is proof that DNV has physically visited the business behind the on-line store, going where the customers cannot, and will continue to conduct regular visits.

Says Swarup, referring to the three EBtrust modules on which Indiatimes Shopping has been audited, A third- party certification of infrastructure, security, and process and organisation is something that instils confidence with customers. We already have a strong brand that instils trust, but we need a certain level of confidence from customers in what we do and deliver.

Since the shopping site is still under development, Indiatimes.com has selected three of the five modules offered by EBtrust. When the site has matured, we will consider being audited according to the last two modules: ethics and web marketing, explains Swarup. So far, only the areas that Indiatimes.com has direct control over the book and music stores have been audited by DNV.

A global market
Indiatimes Shopping ships items within India, and a limited selection to the US. But the majority of its customers live outside India, primarily in the US and UK. The on-line mall is only a click away, making it a convenient place to buy presents for those far-away family and friends. Indians have cultural and family roots, and special occasions like the Diwali festival, an Indian New Year festival taking place around October or November, prompt customers to Indiatimes Shopping in search of that perfect present.

Says Swarup, Through EBtrust, DNV can provide a global benchmark for Indiatimes.com. To a certain degree India is known for its poor logistics. Therefore it becomes important to show that the site has been audited and found to work properly, not just in terms of security. That this is so is borne out by DNVs worldwide reputation.

With around 20 million Indians living outside the country, many with Internet access and credit cards in their pockets, Indiatimes.com will continue to focus on the international market. But with a population of over 1 billion, the domestic market also offers a huge potential. Today only about 5.5 million Indians use the Internet, but predictions are they will total around 23 million by 2003. The increasing number of ATMs in larger cities indicates that the use of plastic money is also on the rise. No wonder the Indian outlook for e-commerce is optimistic. In 1999, Indian e-commerce accounted for a mere US$30 million. A joint study by the Indian National Association of Software and Service Companies and McKinsey predicts a potential for e-commerce revenues worth US$10 billion by 2008.