ONLINE RETAIL SHOPPING (E-TAILING)

WHAT IS E-TAILING

PRODUCT CATEGORIESPRODUCT NAME ONLINE STORE

Apparel,Shoes,Accessories and Home Furnishing

Jabong,Myntra,Yebhi

Indian Ethnic Wear Utsavfashion,dress365days

Home Furnishing Fabfurnish,mabelkart

Personal Care & Well Being Purplle,goodlife

Mom & Kids Care Firstcry,babyoye

Shoes Besttylish,metroshoes

Jewelry bluestone,jewelsnext

Grocery Store Bigbasket,bigbazaar

Florist Fngstore,localflowershop

Deals Site Dealsandyou,coupondunia

Health & Lifestyle Healthkart,naturalmantra

Books Crossword,bookadda

Sports Goods Sites Sports365,mysportcart

WORKING MODEL OF ONLLINE RETAIL SHOP

10801860

3600

CY2012 CY2013 CY2016P

INCREASING AVG ORDER VALUE(INR)

.

20

40

CY2013 CY2016P

ONLINE SHOPPERS(MILLIONS)

Source : ACCEL

278 559

2811

CY2012 CY2013 CY2016P

Fashion + Footwear + Accessories Gross

Merchandise Volume(GVM in millions

$)

18

27

2012 2013 2016P

Mobile…

14

24

2012 2013 2016P

Women Purchasing Power

Source : ACCEL

.

COMPETITIVE RIVALRY

*High

*Low exit barrier because of low fixed assets

THREAT OF NEW ENTRANTS

*Minimal Gov. Regulation

*Patient not required

*No/Less asset specification

POWER OF SUPPLIERS

*Low

*Low supplier Concentration

*High Switching cost for supplier

AVAILABLITY OF SUBSTITUTES

*Higher buyer propensity to shift

POWER OF BUYERS

*Strong

*High Switching cost of buyer

*Lower degree of loyalty to brand

Flipkart• Online retail industry

• Leading e-commerce player in the country

• Founded: September5, 2007

• Founders: Sachin and Binny Bansal

• Employees: 5000+

• India`s first online retailer to hit $1billionin gross merchandise value

• Subsidiaries: We Read Mime360Chakpak.comLetsbuy.com andMyntra.com

• Offers discount

• Provides lowest best possible price

• Upper edge in competitive pricing

• No Kidding No Worries

• Used children to give out the message

• Cash on delivery

• Chief executive delivering orders

• Good website

• Aims most segments except automobiles and groceries

• Quality oriented products

• 30 day replacement guarantee

• 80% orders are handled via warehouses

• Shipping and courier act as an intermediaries in this process

• * Delivers products to 9 95 cities which

includes 2500 pincodes

PlaceProduct

Price Promotion

4C Analysis

•E-commerce company

Company

•Busy people

•Urban population

•People who surf internet

Customer

•Amazon.com

•Snapdeal

•Ebay

•HomeShop18

•Myntra

•Jabong

Competitor

•Accel India

•Tiger Global

•Naspers Group

•Iconiq Capital

•Dragoneer Investment Group

•Morgan Stanley Wealth Management

•Sofina SA

•Vulcan Inc

Collaborator

Segmentation of shoppers

79

21

Genderwise Distribution

Male

Female

5442

2 2

Agewise Distribution

Youngsters

Adults

Elders

Teenagers

56

13

14

17

Income Distribution

Below 10000 INR

10001 to 30000 INR

30001 to 50000 INR

Above 50000 INR

Evolving Online Shopping

12%

18%

13%

16%

41%

Avg Monthly Online Expense

Below 1000 INR

1000 to 2000 INR

2000 to 3000 INR

3000 to 5000 INR

Above 5000 INR

28%

42%

28%

2%

Online Experience Quality

Average

Good

Best

Worst

95%

5%

TS vs OS

TS reduced

TS unaffected

Public Opinion

8013

11

233

Flipkart Ranking

#1

#2

#3

#4

#5

12%

32%

19%

25%

12%

Snapdeal Ranking

#1

#2

#3

#4

#5

14%

30%

16%

20%

10%

Amazon Ranking#1

#2

#3

#4

#5

Online Audio Retail Store• Untapped market segment with huge future growth

prospects; no such exclusive e – retail store available.

• To be launched in three segments:

In – car audio

Home audio

Portable players

• An engaging platform with a dashboard to educate the populace about the audio and sound world.

In – car Entertainment Market

• In-car entertainment increases in volume by 18% in 2013, rising

to 2.8 million units.

• In-car entertainment is set to increase in volume at a CAGR of

15% over forecast period, rising to 4.8 million units by 2017.

Home Audio

• Home cinema and speaker systems records the strongest volume growth in

home audio and cinema in 2013, rising by 13% to 853,000 units.

• Indian consumers are gradually shifting away from audio separates and

other home audio and cinema players towards home cinema and speaker

systems and this general trend is expected to drive sales in the category

over the forecast period.