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Pitch Deck 2016
Global InnovationOur dream is to challenge the Status Quo of online e-grocery delivery, and help people save money. Our mission is to empower households to take control and better manage their grocery budgets.
The Dream
The Opportunity
Limited optionsResidents and visitors within the UAE struggle to find a premium online e-grocery platform where they can compare prices of different supermarkets products in one platform.
High spendingThe choice of supermarkets is based on the location and convenience, which leads to choosing a relatively expensive retailer and driving to busy Malls.
Time Residents have a busy and fast life, and the option of a quality quickgrocery delivery service is not well investigated
Compare & Save
The only platform in MENA that offers a price comparison
solution of total cart value, that unlocks saving potentials.
Fast & Reliable
Reliable and fast on-demand delivery
service with dedicated personal
shoppers.
Shop from home
The convenience of shopping from the
comfort of your own home.
Positioning
Benefits
First Price ComparisonUAE’s First Price Comparison Website; that Allows User to Compare & Save on Their Daily Grocery Shopping with Premium and Pre Selected Retailers
Best Customer ServiceIn-house Analytic Engines and Third Party API’s to Retain loyal users and understand their behavior patterns and tailor personalized marketing plans
$
InnovativeOn-Demand Grocery Shopping Portal, with dedicated Personal Shoppers, in The UAE
Whilst the UAE online grocery market is still in its infancy, the potential for growth is exponential when we consider:
➔ The relatively low labour and fuel costs in the UAE, which could be a key enabler for new players moving into the online grocery market.
➔ The ability to quickly onboard lessons learned or tried and tested methods from other countries. For example, the concept of ‘store-to-home’ fulfillment, which has replaced ‘warehouse-to-home’ in more recent years.
The e-grocery market in the UAE lacks awareness and
interest from the consumers due to their concerns about
online security.
But Shop On Click can provide consumers with proper
programs and high-security measures of online shopping to
prevent the fraud, thus becoming a market pioneer.
5.3 BillionTotal Mass grocery retail in 2014
74%Grocery Trend in
201570%With F&B contribution
Market Opportunity (UAE)
UAE largest mass grocery retail sales exceeded 5.3 Billion and expected to increase to 20 Billion in 2020
With The Total food and Beverage Market Contributing to 70%
Mass Grocery retail trend in 2015
Sales 2011 2012 2013 2014 2015
Total retail format sales 60.85 65.02 68.13 72.37 76.83
Food retail format sales 21.92 23.28 24.28 25.64 27.06
Total grocery spending 24.48 26.03 27.17 28.72 30.35
6.33% 4.37% 5.70% 5.67%Average growth of 5.51% per year.
Source: Grocery Retail Trends in the United Arab Emirates Report
Market Opportunity (UAE)
Market Validation
Buy Grocery Onlineof online users in UAE
55%
$23 Billion USDSpent on Food in UAE in 2015 making it the 3rd
largest category
Source: The National
Internet penetration in UAEWith high mobile penetration
93%
$2400 Per PersonAverage monthly food expenditure per person
Source Google
Customer’s Profile
Asian/European/Expats consumers
Assign a given budget
Product needs
Seeks suitableproducts
Arab consumers
Emotional attachmentto product/service
Decides consumer’s financial capacities
Food is the 3rd largest category on which money is spent (after rent & fuel)
Purchasing cycle Purchasing cycle
Marketing Strategy
Analyze , Personalization & Segmentation
• Predictive analysis Software (sales KPI’s)
• Mixpanel
• Segment
• Hotjar
• Intercom. Mailchimp
• Hot Jar (live video recording and heatmaps)
• Web Push Notifications
• Content Marketing (howtoshopsmart.com)
• Influencer Marketing
• Referral Marketing
• Adwords, SEO, Retargeting
• Social Media Marketing
• Partnerships
Acquire
EngageFollow up
Variation Activity Stimulation Pleasure
Syste
ma
tic
Pre
stig
eA
chie
vem
ent
Dyn
amic
Control Peace of mind Stability Tradition
Safe
tyB
elo
ngi
ng
Car
eH
arm
on
y
Informal
Helpful
Down to earthReservedSpecialist
Innovative, exciting, energetic, vital
Open, lively, impulsive Warm, generous,
carefree, happy
Analytic, focused, proud, exclusive
Restrained, tranquil, calm
Faithfull, cautious, humble
Familiar, tolerant,
kind
Target oriented, ambitious,
determined, sophisticated
SpontaneousChallenger
InstaShop
El Grocer
Shop On Click
Why are we different
Not the normal supermarket
We have partnered with premium retailers to ensure highest quality of products delivered.
WHY
More Risk = Control
On-demand grocery delivery service, we handle our logistics and operations to ensure premium and on time delivery.
Every Little, Helps..
Different not BetterWe aim to be different not better, thus we prioritize our customers satisfaction by developing a product that will enable them to manage their grocery budgets, and unlock BIG SAVINGS
How we make money?
On Demand
Charge end User a fixed delivery fee based on the volume of their order. Average delivery fee 10 AED.
8% markup on products above AED 12
SaaS Subscription Providing Data & Insights to Retailers / Brands about shoppers behaviors in relation to a specific location and segments
subscription based model where we charge based on the number of MTU data required.
Profit – Loss AED
7,659
4,112,980
33,046,400
301,744
2,577,969
11,271,613
(294,086)
1,535,011
25,846,400
35,679
7,979,980
120,406,400
(20,000,000) - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000
Year 1
Year 2
Year 3
Summary
Total Revenues Net Margins Total Operating expenses Gross Margins
Year 1 Year 2 Year 3 Total
Model 1 On Demand Commission 7,659 1,712,980 25,846,400 27,567,039
Model 2 Subscription - 2,400,000 7,200,000 9,600,000
Gross Margins 7,659 4,112,980 33,046,400 37,167,039
Total Revenues 35,679 7,979,980 120,406,400 128,422,059
Operating expenses:
Sales and Marketing 14,000 84,000 94,844 192,844
Rent & Utilities 58,333 80,000 150,000 288,333
Payroll 213,500 2,166,500 7,800,000 10,180,000
Visa & Licencing Fee 15,000 30,000 30,000 75,000
Legal Expenses - 6,000 6,000 12,000
Technology 911 211,469 3,190,770 3,403,150
Misc - - - -Total Operating expenses
301,744 2,577,969 11,271,613 14,151,327
Net Profit (294,086) 1,535,011 21,774,787 23,015,712
Annual Growth (In Times) 6.22 13.19
Commulative Profits (294,086) 1,240,925 23,015,712 23,962,551
Net Profit Margin -3839.84% 37.32% 65.89% 61.93%
Income Statement AED
Total Capital In Company
80,000$ - Jun 2015 - Present
Required Capital
$500,000 @ 25% Equity
Pre Money Valuation
$2,000,000
Duration
14 Months in the scenario of 0 revenue
Investment Proposal
Use of Investment
15%Marketing & Advertising
55%Salaries & Rent, Legal
5%Contingency & Reserve
25%Technology, Operations & fleet management
5%
55%
25%
15%
Investment
$500,000
Milestones
2016Launch UAE MVP
A new on demand model of shop on click
Oct
2017Reach 1000 Orders / day in Dubai
Following main Dubai Areas coverage
Ma
y
Expand to Turkey
Jun
Incorporate and Raise Funds for EU Market
Target Markets , Netherlands, France
Oct
The Superstars
Mohmed Al AraimiFounder & CEO
Bello Abu BakarChief Technical Officer
Zain KhanCOO & VP Marketing
Ahmed Al HosniCountry Manager Oman