bplan e-retail final

8/7/2019 Bplan E-retail Final

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EXECUTIVE SUMMARY:

Kapsons is one of the leading retailers of Northern sector in

readymade garments, dealing with top most national and Internationalbrands. We are the first north India owned western apparel store. Our

intentions are to obtain 80% market share and become a central hub

of shopping activity for the local population as well others who

enjoy wearing Kapsons brands. It is the goal of KAPSONS to become

North India’s top cultural retail store. We hope to obtain both high

profits and a reputation for great customer satisfaction by offering a

large variety of high quality and rare products to our customers

through all modes available. We want to provide a central location forthe growing loyal customers. E-retailing has witnessed a dramatic

change in the business across the globe. This has given way for the

retail outlets to do business over internet.

The Business model we will follow will be Bricks and Clicks i.e.

transition of the traditional retailers to ecommerce by offering

products on internet.

Objectives

1. To create a shopping environment that caters to the apparelneeds of the urban and sub urban anywhere and everywherethey need.

2. To earn 80% market share and become the number one ethnic &western wear apparel store in North India and achieve namerecognition all over the country.

3. To receive a 20-30% (modest) profit margin within the first year.

4. To have a customer base of 1,000 by the end of the firstoperating year.

5. To achieve a net profit of less% in first year and to achieve

a positive net profit by year two.



Mission

Kapsons’ mission is to offer quality, name brand western wear in anassortment of sizes and styles to access all the potential markets andcustomers through Online medium and to incorporate traditional retail

practices with internet technology.

The business model will follow the Business to consumer (B2C)pathway.This is the most common model in e-commerce. In this model, online

businesses sell to individual consumers. In this model the businesshouse will have an e-commerce website which will list all their productcategories with detailed information about products with photographs,flash animation and comparing similar products etc., for quick decisionmaking over web.

Some of the main reasons why consumers and businesses prefer shopping online:1. Better pricing2. Larger product selections3. Convenient, easy to shop around for selection of different vendors and best prices4. Many product review resources5. Effortless product comparison



• Bottoms

• Dresses

• Footwear

• Innerwear

• Accessories

Brands page should not be visible as this will affect the shopping

psychology of the user. Some brands may remain untouched. Also by

not dividing the webpage brand wise will keep our MBO legacy alive.

All brands visible together may improve the possibility of shopping all

brands together and also gives more variety and options to the user.

There will be a scroll in bottom which will symbolise all the brands that

we own and sell.

• Item Page: Item 1 – 10.. so on with MRP or our offer price and

Item code

• Selecting items and adding to the cart

• View cart

• Cart page : cart items ; total amount of shopping ; continue

shopping ; proceed to checkout

• Checkout page : Enter personal details ; credit card details ;

submit order

• Confirmation page : order details ; order tracking number

A link of “Track your order” – tracking the delivery of the order by the

user.

Features of a shopping cart:



• Search Engine Friendly

• Email Marketing Built-in

• 100% Self Manage Your Store

• User Friendly Navigation• Multiple Category Levels

• Site Statistics Reporting

• Import/Export & Instant Backup

• Fast Product Search

• Up sell with Related Items

• Coupon & Email Promotions

• Newsletter & Archiving

Built-in

• Multi-Level Security• Fast & Helpful Phone

Support

• Custom Pricing for

Client/Membership Login

• Industry standard Gateways

& Merchant Accounts

Compatibility

STEP 2: Back office management /manpower or Human Resource:

➢ Kapsons solutions will develop the website as per the requirement.

➢ A team working on the back end systems of the website will be

called as control panel

Control Panel: This panel will include the following manpower forvarious tasks:

If we distribute this task Category1 wise i.e. MEN, WOMEN, KIDS

➢ A Photoshop expert to edit the clicked photographs or to edit the

visuals received from the vendors in order to make the pictures

suitable for website format. The task of the Photoshop expert will

be divided team wise. If total is 40 brands , approximately 150

images(visuals) a day

• A group of people will be updating the items, products, prices,schemes etc. this group will be divided Category wise and

include:

➢ Marketing person – making schemes , special prices as

per the inventory,



• Items selection for uploading and item deletion which are non

available.

• Keeping a track of the seasonal fashion trends and market

demand.

• Selecting the right product from the inventory to ensure fastsales.

• Maintaining reports for best sellers, slow sellers

• Sales forecast monthly.

➢ Customer relationship executive – regular mailers, SMS,

schemes and contact with the customers.

➢ Content manager – Responsible for the content and item

description as well as brand description on site. Framing the

mailers and newsletters scheme content and other material likepolicy framing about each brand and item related to the website.

➢ Order manager-This person will take care of all the orders

submitted online.

• He will maintain a database of the orders.

• Keep the track of the payments.

• Submit that order to the inventory or to the regional

office.

•

Check availability of the item in the stores or inventory.• He will update the track of the order for the User

➢ Documentation executive- Maintain files for the customers

with User ID and personal details.

• Get the order packed and couriered to the destination.

• Working upon the complaints and coordinating with the stores

to resolve the problems arising on order shipment and delivery

• Coordination with the courier companies and negotiating rates.

➢ Customer support executive – Taking daily calls from the

customer;

Query handling

Order tracking information



Complaints registration and informing accordingly in

the stores or the order manager. Schemes

communication with the callers. Policies and rules for

shopping conveyed to the customers.

Total manpower requirement on an initial basis:

The manpower/ personnel requirement has been decided on the

criteria of our launching of this project. We will divide teams on the

basis of category 1 i.e. men , women & kids. Our priority is to pull

crowd of all ages to our online portal. Initially we can filter our visuals

as per the demand of the brands. Later on after getting the clicks we

can work upon individual brands.

As per the team in category 1 – it depends on the team how do they

divide their items category or give schemes etc.

➢ Photoshop expert (2 in each category) – 6 nos.

➢ Marketing personnel as per category 1– 3 nos.( We can

accommodate only 1 marketing manager for the e-portal

depending on the work)

➢ Customer relationship exec - 3 nos.

➢ Content manager – 3➢ Order manager – 3

➢ Documentation exec. – 3

➢ Customer support exec. – 3

➢ TOTAL personnel - 27

Website maintenance and development will be taken care by our

Infosoft team with uploading and deleting.

Payment gateway:Selecting the modes of payment through 3rd party:

➢ Debit/ credit card

➢ DD/cheque

➢ Bank transfer



The moment payment is confirmed. This order will be submitted to the

appropriate regional store where the store manager will enter the

article under the expenses and generate a cash voucher for the online

sales. This print cash voucher will be treated as money by the

accounts for the balance sheet.

STEP 3: Infrastructure requirement:

How clients, customers, partners and suppliers may connect to anInternet company right through the Internet.

Customers using computers, telephones, etc., can connect to theInternet through dial-up lines to the public switched telephonenetwork (PSTN). Through the PSTN Internet Service Providers (ISPs)can be reached. The ISPs can also be reached through dedicated linesthat generally offer higher bit-rates, such as digital subscriber lines(DSLs), as well as T1, T4 and other links. Connections can also beestablished from LANs, routers, hubs and PBX and other switches onthe Customer Premises In addition to the plain old telephone system(POTS) other operators offer connections to the Internet. Theseinclude cable television operators, electric power companies, etc.

Most are integrated with other networks; including packet switchedpublic data networks (PSPDNs) that use routers and similarswitching/directing devices.

On the other side of these networks you will find the host computersof the product/service provider or seller. These people may have co-located or outsourced storage facilities. The latter are datawarehouses containing information on products, services, clients,partners, suppliers, billing, payments, etc.

Security is of a major concern. This includes concerns about the

following, among many other security problems:• Credit card numbers, expiration dates, and owner information

getting in the wrong hands.

• Orders being accepted from the wrong clients.

• Payments being made to the wrong sources or goods andservices being delivered to the wrong people.



• Viruses being allowed to pass through the system.

To prevent some of these security problems firewalls are installed atcritical interfaces. The firewalls are supposed to filter the traffic, inhibittransmission of unwanted information (including viruses), and prevent

malicious or criminal actions by outside persons. However, a firewallcannot by itself prevent misuse of credit card numbers or identityfraud.

Encryption is a way of improving security. You as a user can encryptyour messages in an end-to-end fashion and having yourcorrespondent at the other end convert the message back into the



original clear-text. Encryption can also be used on individual links inthe transmission chain.

There has always been a competition between users and "authorities."Users want secure encryption end-to-end, and government (law

enforcement) agencies want to be able to read your messages and inparticular illegal ones.

HOW AN E-COMMERCE SITE WORKS

Normally a user will get to know about a online shopping web sitethrough many ways, most frequently all online users will find websites

on the go by using Google search or any other search engines. Whenthey see the web site information link, they click to it, complete thewebsite registration process if any, choose the products they areinterested, compare similar products specification cost etc., andconfirm the items selected and finalize the invoice and make paymentvia their debit card / credit card bank account .Once the payment isreceived the order manager confirms the payment and start

processing the order,and ship the productto the user’s delivery /shipping address.Further if the productis carrying warranty,post sales support andservice should befacilitated to thecustomer in order tocreate good word of mouth and get a good

returning customerbase which is the keysuccess factor for thee-Retailer



STEP 4: SUPPLY CHAIN MANAGEMENT: Order delivery will berestricted only to the Kapsons regional main stores i.e. 6 stores andfinally to the warehouse of Mohali if the stock is unavailable.

Flow chart of the process of Kapsons e-retail SCM plan

Order is not available in the regional storeOrder number with customer details provided to the inventory (warehousOrder is couriered to the required site wit

Unavailable product will not be visible on the site. Information of the inventory will

Website

layout

consisting of

all brands

and items

Selection of

items by

the user

and added

in the cart

Total order

is

confirmed

and amount

is

Confirmatio

n of the

order by

the user

and the

User ID is

allotted and

customer

details are

received.

Payment is

done by the

customer

Payment is

received by the

merchant bank

and the details

are cross

If details are fraud

or not matched, no

transaction is done

and confirmed to

the order manager.

Order cancellation



After/ during the delivery of the parcel to the destination

Details are

confirmed by

the bank to theour order

manager

Order is

confirmed and

processing on

the order starts

after 24 hrs of

Customer can

cancel his order

within 24 hrsduration from

time of

confirming the

A confirmation

mail is sent

after 24 hrs tothe customer

Availability of

the order items

are checked in

the regional

store by the

order mana er

Order items

are available in

the regionalstore

Items are not

available in the

regional store

then are

checked in the

central store

Order number

(CODE) with the

items details and

customer billing

and shipping

Order

package is

couriered

If items are not even

available in the

inventory, the item

will not be visible on

the website. Thus item

has to be in central

Order trackingdetails are

updated on the

website

Emails of order

packaging and

delivery status

to the user

Acknowledgem

ent mails &

SMS after the

receipt of the

order by the

user

Item is finally

delivered to the

customer at the

requested

destination



All couriers will be done through 3rd party. Tie up with theparty. Courier charges will not be included in the item cost. Itwill be charged Rs 100 per order after the order confirmation.

Return policy:

The return Policy should be drafted as per the company functions and

in accordance with the policies of accounts, logistics and marketing

departments.

➢ All wrong and defected shipments will be returned with the right

order with no extra courier charges

➢ Order with wrong sizes or different color will also be accepted for

the customer satisfaction but will not be delivered with

exchanged product. The money will be returned and the person if

wants to buy the right color or size will have to shop from the

nearest store.

Defected Item

is delivered

Wrong item is

delivered by

staff mistake.

Customer

wants to

exchange due

to size problemor design/ color

not liked.

User can go to

the neareststore and

exchange with

the new item

within fix time

Customer can

return back the

item and the

right item will be

returned with the

courier cost bore

Customer can

return back item

and exchanged

item will be

delivered with all

courier charges



➢ No exchanges will be allowed and accepted online. Exchanges

can be accepted on the main Kaspsons store or any Kapsons pvt

ltd EBO.

GOVERNMENT REGULATIONS IN RETAIL

For the growth e-commerce, Indian government is taking necessarysteps through effective Telecom policies, introduced Information

Technology IT ACT to create necessary legal and administrativeframework. To build the confidence among common public to increase

online business, The CCA (Controller of Certifying Authority) hascreated PKI (Public Key Infrastructure) i.e. for electronic authenticationvia digital signatures. This will avoid cyber space crimes. To increasethe use of internet, our government has taken various steps to reducecost and offer attractive plans for corporate and end users with highspeed communication services getting increased day by day based onthe demand. This will drive e-commerce transactions to huge growthin e-Retailing sector. For goods or services delivered still there are fewconfusions in customs duty, State and central sales tax, VAT, excise

etc., This has to be clearly spell out by the government.

STEP 5: Marketing Activities

Pre- Launching activities:➢ Hoardings – Stating the arrival of the e shopping in the specific

region.➢ Papers – Stating the arrival of the e shopping in the specific

region.

➢ Radio activity – Stating the arrival of the e shopping in the

specific region.



All Marketing activities should start almost a fortnight before the

launch.

Marketing the website Online:

1. Search engine optimization - all content will be SEO based

2. Pay per click – ad words

3. Online banner visibility on searching portals, media websites,

fashion sites etc(face book , twitter)

4. Flowing of the Mailers and SMS to the existing client database as

a value added service

MERITS AND DEMERITS OF E- RETAILING FOR HOST AND USER

➢ Advantages to the e-retailer:

• Saves on the wages and premises

• Reaches a larger audience



• Accepts order 24 hours a day

• More opportunities of CRM and micro marketing

Merits of E-Retailing

1. The electronic channel gives the existing brick-store retailers

an opportunity to reach new markets.

2. For the existing retailers, it is an extension to leverage their

skills and grow revenues and profits without creating an

altogether new business.

3. E-Retailing overcomes some limitations of the traditional

formats, for instance the customers can shop from the comfort of their homes.

4. The e-commerce software that also traces the customer’s

activities on the Net enables e-retailers to gain valuable insights

into their customers shopping behavior.

5. The e-retail channels transcend all barriers of time and space.

The retailer’s server must be on 24*7. An order can come fromany customer living any place at any time of the day.

6. E-Commerce channels are definitely efficient and retailers do

not have to pay a heavy price for brick-n-mortar shops in costly

shopping malls

➢ Disadvantages :• Credit card and debit card information worries

• Lack of personal and social interaction

• Cant feel the merchandise

• Premium charged for delivery

• Difficulties of returning goods or refund policy



➢ Advantages to the user:• Cost effective

• Convenient, easy and saves time

• Easy search of variety

• Customized shopping

Outlook of E-retailing as a new business plan:

The Challenges The opportunities

• Fierce Competition among

wholesalers & retailers

Find your niche - use the power of

internet to expand your sales

channel and directly engage

customers

• Profit Margin drops as a

result of by price war

Capture market share and

healthier profit in the shortest

time by promoting it online.

• Increasing holding cost of

inventory.

Alternative Channel (Internet) to

clear unsold stocks and end of season clothing.

• Expensive expansion cost for

traditional brick & mortar

clothing business

Using online storefront as a low

cost platform - no high cost for

rental and renovation. It is a low

cost mode of business.

http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

bplan e-retail final

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