koovs.com 2018€¦ · koovs private label & the best of brands curated by design and creative...
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STRICTLY PRIVATE & CONFIDEN TIAL
AGENDA
The Prize: A Billion Pound Company (Hardman & Co 1 March 2018)
Koovs plc May 2018 2
STRICTLY PRIVATE & CONFIDEN TIAL
HIGHLIGHTS
India is dynamic, attractive and investibleAnd the fastest growing fashion market in the world
Koovs has built authority in Western fashion in India Affordable, aspirational and authentic
Koovs has increased brand awareness to 21%Through engaging marketing content
Koovs has developed a state-of-the-art technology platformPositioned for scale and rapid innovation
Koovs is led by a strong and entrepreneurial management team With a proven track record in fashion and tech
Koovs has a strong 5-year planWith robust growth assumptions
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INDIA IS THE MOST EXCITING MARKET IN THE WORLD
65%
Population: 1.3bn
under 35
241m users(vs. US 240m)
India is a market of young, aspirational and digitally savvyconsumers.
65% of its 1.3 billion population is under 35 years old.
India has the largest number of Facebook users in the world:241m (vs. 240m in the US)
7% - 8% annual GDP growth forecast for 2018-2022 (IMF)
India is the largest democracy in the world.
English is widely spoken, especially in a business ortransactional context.
The stability of its democratic government, the businessinfrastructure in place and its solid fundamentals make Indiaan investible economy, which offers a significant upside to theWestern markets.
The Indian government invested $3bn into fibre and $32bninto 4G mobile networks.
In 2017, there were 470m people using broadband and over299m smartphone users in India. These numbers are predictedto rise by 40% and 60% respectively by 2020.
“Huge potential” Jeff Bezos
In June 2016 Amazon said it wouldincrease its investment in India by$3bn bringing the total amountinvested in India to more than $5bn.
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KOOVS: THE EMERGING ASOS OF INDIA
We are the only online western fashion brand designed in London specifically for India: Affordable, Aspirational & Authentic
• We bring Fashion Authority and Credentials
Koovs Private Label & the Best of Brands curated by design and creative team based in London for the young stylish Indian consumer. Brand awareness increased from 1% to 21%. Brand has emerged as the top decision making criteria (Redseer May-18)
• We lead in Customer Experience & Engagement
2.4m on social media and the highest Net Promoter Score in the online apparel retailing sector
• We have the latest scalable technology, designed for the mobile generation
Always connected via social media and lifestyle content, driving 80% of Koovs’ transactions on mobile
We are an established business with an experienced team- Established Brand, Customer Experience, Technology and Operations
- Senior team with track record of building ecommerce businesses
HATTIE X KOOVS
STEP INTO BRAND CAMPAIGN
NIKHIL CHINAPA X KOOVS
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KOOVS JOURNEY
2012 2013 2014 20162015 20182017
MIL
ESTO
NES
PRO
DUCT
Launch Womenswear Private Label
Launched Curated Brands
Launch Menswear
Private Label
LaunchFootwear
LaunchK Denim
& Knitwear
LaunchK Active
Launch of Collaborations *
KOOVS.COM Fashion Launch
KOOVS Floats on AIM
KOOVS plc
Brand Awareness 21%
Koovs LaunchesBrand Campaign
Social Media followers reach 2m
£10m Revenue2m web
visitors a week
1st Facebook Live Live streaming Fashion Chat
NPS Score 56% Redseer
Brand Awareness <1%
Favourite Fashion PortalGlobal Youth Marketing Forum
No.1 for Customer ExperienceForrester
* Henry Holland, Giles Deacon, Mawi, Manish Arora, Gauri & Nainika, Masaba, Hattie Stewart, Nikhil Chinapa, Daniella Helayel, Pankaj & Nidhi
Awards
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WHY KOOVS: THE SECRET SAUCE
Private Label
Customer Experience
Management Team
EARINGS BY MAWI X KOOVS
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PRIVATE LABEL: GREAT FASHION, GREAT PRICES, DESIGNED IN LONDON
• 3,000 new Private Label options per season, 50% under INR999• Highly desirable collaborations with International & high profile Indian designers
Proven strategy: ASOS, Boohoo
GOODINR499-999
£6-12
BETTERINR999-1999
£12-24
BESTINR1999-4999
£24-59
ENTRY EVERYDAY PREMIUM
GOOD 50%Mostly Private Label
BETTER 30%Private Label &
Curated Domestic Brands
BEST 20%Collaborations &
International BrandsPRICE
FASHION
Femella
New Look
Gauri & Nainika Collaboration
($33-$82)
($17-$33)
($8-$17)
£/$ = 1.385
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BEST FOR CUSTOMER EXPERIENCE & ENGAGEMENT
Leaders in engagement through editorial lifestyle content & social media - Facebook 1.9m + Instagram 500k – FB engagement 3x higher than nearest competitor
(Meltwater)
- Favourite Fashion Portal
(Global Youth Marketing Forum 2017)
Customers rating Koovs highly for product quality and customer experience
- Consistently achieving highest NPS – 56% in January 2018
(Redseer Consulting January 2018)
- Ranked No. 1 for Best Customer Experience in Online Retailers
(Forrester November 2017)
- 40% returning customers
Web, m-site and APP usability
- Website and app: rated top for “ease of use”
(Redseer Consulting January 2018)
FASHION LIFESTYLE CHANNEL
CELEBRITY STYLE
CELEBRITY LONDON DIARIES
RHEA CHAKRABORTY : Campaign Reach 31.4m
LFW : > 27,000 views
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OPERATIONS
SUDEEP GUHAPreviously at Danone, Amazon,
27
BUYING, MERCHANDISING & PRODUCTION
GIRIJA GOSWAMIPreviously at M&S India and Reliance
49
CREATIVE & STUDIO
LAUREN POOLEPreviously Little Mistress Group
3 CREATIVE, 21 STUDIO
CHIEF EXECUTIVE
MARY TURNER20 years CEO experience
Elizabeth Arden, Avon, Tiscali Non Exec ASOS plc 2009-13
EXECUTIVE TEAM 6
CHAIRMAN
WAHEED ALLIChairman ASOS plc 2000-12Chairman Silvergate Media
MANAGEMENT TEAM WITH PROVEN TRACK RECORD IN INDIA & THE UK
DESIGN
SAMANTHA CHILTONPreviously at Primark,
Arcadia, Zara, River Island9 DESIGNERS
FINANCE & HR
ROBERT PURSELLPreviously at Eviivo Limited, AlertMe,
TalkTalk, Tiscali 14 FINANCE & HR
TECHNOLOGY
MARY TURNER25
UK
INDIA
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MARKETING & CUSTOMER CARE
PUNIT CHAHARHead of Digital
Previously StalkBuyLove
POOJA LALHead of Customer Care
Previously at Fashion&You
SUTAPA CHATTERJEEHead Of PR
Previously at PR Pundit, TELiBrahma
STRICTLY PRIVATE & CONFIDEN TIAL
INDIAN ECOMMERCE DOMINATED BY HEAVY WEIGHT MARKETPLACES
APPAREL MARKETPLACESe.g. Amazon, Flipkart
• Commodity apparel• Broad• Transactional• Catalogue• Practical• Trust – Process
• Discount• Reliable/Convenient• Secure
FASHION SPECIALISTSe.g. KOOVS
• Fashion Brand• Curated & Edited• Customer Experience• Lifestyle Editorial• Aspirational• Trust - Fashion
• Affordable• Reliable/Convenient• Secure
Diffe
rent
iato
rsHy
gien
e
“The California Grunge collection is so Boho! Love the yellow fringe dress
and the Coachella festival vibe” Mehernaaz Dhondy
Editor Grazia IndiaFeb 2018
Heavyweight marketplaces are not just competitors they are enablers- Investments in infrastructure, payment systems develop and increase overall ecommerce market
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HISTORIC PERFORMANCE
20.9m
44.2m
81.0m
0m
20m
40m
60m
80m
100m
FY15 FY16 FY17
TRAFFIC
CAGR +97%
0.2m
0.7m
1.3m
0.0m
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
1.4m
FY15 FY16 FY17
1.0%
1.5% 1.6%
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%
FY15 FY16 FY17
ORDERS
CONVERSION
CAGR +145%
CAGR +26%
3.5m
10.2m
18.5m
0m
5m
10m
15m
20m
FY15 FY16 FY17
GROSS ORDER VALUE
CAGR +129%
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£7.9m £7.9m
£0.0m
£1.0m
£2.0m
£3.0m
£4.0m
£5.0m
£6.0m
£7.0m
£8.0m
£9.0m
GOV (£m)
2016/17 2017/18
H1 Impacted by Demonetisation & GST
0%
£10.7m
£6.6m
£0.0m
£2.0m
£4.0m
£6.0m
£8.0m
£10.0m
£12.0m
GOV (£m)
2016/17 2017/18
H2 Impacted by Cash Conserve
• Demonetisation and Goods and ServicesTax (GST) reforms impacted marketgrowth, resulting in flat sales in H1 (Apr –Sep 2016 v 2017) in line with generalmarket performance for the half year
• Requirement to conserve cash in H2 (Oct –Mar 2017 v 2018) led to a 38% reductionin brand and marketing spend, whichresulted in an equal decline of 38% inGross Order Value, resulting in a YTDdecline of 22%
FY18 IMPACT OF DEMONETISATION, GST AND CASH CONSERVATION
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USE OF FUNDS
FUNDING REQUIREMENT TO FY 20/21
Marketing & Content
£42m($58m)
Investment in brand marketing, social engagement and market development
Workingcapital
£4m($5m)
Investment in product options and stock
Capex £1m($1m)
Outsourced model requires limited capex
Operating costs*
£30m($41m)
Gross profit / cash to fund operating costs (net £2m use of funds)
Net of internalcash resources
(£27m)($37m)
Generated by the company’s gross profit
Funding requirement
£50m($70m)
Required to take the company to positive cash flow in FY 21/22
*Excluding marketing
• The total funding requirement to deliver our Koovs business plan is c.£50m .
• The total funding would be split into three tranches of c.£22m in year 1,c.£15m in year 2 and c.£12m in year 3.
• The funds would be used for strategic investment in brand andperformance marketing to drive customer engagement and to expandproduct options.
• Marketing Spend 50% Brand, 40% Performance, 10% creative & PR
• Digital Performance
• Google – Paid search + display advertising to drive traffic/orders
• Facebook – engagement + awareness campaigns
• Targeted affiliate marketing
• Brand and Social Media to deliver brand awareness > 50%
£/$ = 1.385
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PATH TO A BILLION-POUND COMPANY
• Leverage resurgence of ecommerce market growth
• Further build Brand and expand Private Label
• Engage & build customer loyalty with editorial content & social media campaigns
• Continue to deliver market leading customer experience
“Love the pink and green Pop colours and pairing in your
Mi-Centricity capsule collection” Anaita Shroff Adajani
Fashion Editor Vogue IndiaFeb 2018
“Love the shirt its super cool and Techno Jungle is such a
collection that can look great editorially!” Tanya Vohra
Fashion Editor GQ Feb 2018
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