BUSINESS PROPOSALDELMUM E-COMMERCE WEBSITE

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• 1 PROJECT OVERVIEW• 2 UNDERSTANDING TARGET AUDIENCE• 3 MARKET RESEARCH• 4 PROJECT SCOPE• 5 PROJECT COST• 6 PROFIT

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DelMum aims to be recognized as the number one online supplier of personalized apparel and as a provider of superb customer support. As an e-commerce site DelMum primary goal is to emphasize on sale. It is expected to have a total sale of about fifty million dollars in the first year.The success measure is to be able to establish a strong web presence, attract large numbers of users, effectively promote their products and provide excellent and economical customer support. In the long run,DelMum is also looking to develop an extensive customer base and spread brand recognition. Our mission is to give DelMum a professional on-line presence by giving the users an exceptional user experience with sophisticated interface, intuitive navigation and scalable . Solution to all devices and platformsDelMum started by offering Wholesale. Today we offer a full marketplace to retailers & Manufacturer across India. Today we have over 500 products listed in more than 25 categories. Our focus on delivering convenience and building consumer trust has seen us scale to more than orders a day in a very short time.We look forward to you joining our ever-growing family of over 25,000 merchant on our platformDelMum is India’s largest online marketplace, connecting buyers with suppliers. The online channel focuses on providing a platform for buyers, who can be SMEs, large enterprises as well as individuals. Buyers typically gain access to a wider marketplace; diverse portfolios of quality products to chose from and tap a one-stop-shop which caters to all their specific requirements, thereby aiding the discerning buyer make well-informed choices

PROJECT OVERVIEW

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TARGET AUDIENCE

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TARGET AUDIENCE:

CUSTOMERSDelMum target audience consists of creative, fashion conscious male and female who are looking for unique ways to express themselves through fashion. These women and men are techsavvy with expectations of fast turnaround times high-quality products, and trendy designs. In the first year DelMum target audiences are primarily located in India.

RETAILERS DelMum target audience consists of creative . They are retailers. They want to buy garments for showroom. They can order from shop. This is a good opportunity for him. They can compare product of manufacturers. They can earned income to promote over website. Its is largest online marketplace for manufacturer and retailers.

MANUFACTURERDelMum target audience consists of creative . They are the garments manufacturer, they want to connect retailers and build business. They can sell his goods through this website upload their Product. Its is largest online marketplace for manufacturer and retailers. They can earned income to permote over website.

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MARKET RESEARCH• With the revolution of technology and social media, people have been spending more time on the Internet and purchasing

items online.• In the India. TechSci Research On account of increasing awareness among consumers about product quality, change in

consumer attitude and shopping habits, India’s e-commerce market is expected to grow at a burgeoning rate through 2020. Rising number of high speed internet users is encouraging businesses to innovate and offer a diversified array of products & services online. Over the last few years, with significant improvements in the payment structure in e-commerce market, consumers in India are gradually shifting towards online space and are shedding their belief of online shopping medium being unsafe. Consumer electronics, online travel and apparel & accessories are the market segments exhibiting promising growth. With the option of same day delivery, online groceries stores are also entering into the country’s online space.

• According to recently released TechSci Research report “India E-commerce Market Forecast and Opportunities, 2020”, the country’s e-commerce market is forecast to grow at a CAGR of over 36% during 2015 – 2020, on account of expanding smartphone user base, huge discounts and offers extended to customers by the e-commerce companies, increasing per capita disposable income and growing youth population. India’s e-commerce market is dominated by e-services segment, on account of booming online travel market, which is emerging as the most preferred medium for planning holidays, making hotel bookings and buying tickets for travel by various modes including air, bus and rail.

• “India’s workforce majorly comprises of young consumers who have less time for going out and shopping at regular brick and mortar stores. Such a scenario creates humongous potential for online shopping in a market as huge as India. Moreover, great offers and discounts by the leading e-commerce players further increase consumer interest towards the products.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

• “India E-commerce Market Forecast and Opportunities, 2020” report evaluates future growth potential of India’s e-commerce market and provides statistics and information on market structure, consumer behavior and trends. The report includes projections and demand forecasting. The report intends to provide cutting-edge market intelligence and help decision makers in making sound investment evaluations. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in e-commerce market in India.

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PROJECT SCOPE• Nowadays, India is in a completely growing stage of development and we need to update our business to the growing

needs of the new generation. ‘Incredible India’ has now got a new name – ‘DIGITAL India’. The current generation completely belongs to e-services. Today, every business and service is going the ‘internet’ way. Everyone prefers e-services. which are the most preferred ways to connect to the costumers around the world.

• According to a report released by an American Information Technology Research & Advisory Corporation known as Garner, “e-commerce in India will probably exceed $6 Billion in profits by 2015, estimating a 70% growth from a year-ago”. Nearly 8 million people did their shopping from one of top 4 online shopping websites in 2012, and the number has grown to 35 million this year. By 2016, this online consumer base will rise to nearly 3 times to 100-million, and over 50 percent of the new buyers could be from Tier-I and Tier-II towns. This makes India one of the wildest-growing e-commerce markets in the Asia Pacific region.

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Project Cost• Most importantly, this is just a superficial model that considers only the ‘e’ part of eCommerce. The ‘Commerce’ part is

the row highlighted in red. This is domain specific. Success or failure will depend on how well you manage your sourcing, operations and marketing so that it costs you less than Rs 500 per order while creating value worth more than Rs. 1000 per order for your customers. (The numbers are just examples).

• Here is a look at what it is like to setup an ecommerce business in India now. • The ‘business plan’ below is based on real-life experience from expanding an eCommerce operation.• At the outset, let me clarify a few points:• » A storefront set up at a marketplace doesn’t necessarily have to be ‘Basic’• » A store set up with a SaaS provider doesn’t necessarily have to be ‘Small’• » The model outlined below would work best for products that are fairly unique or not widely available. E.g. Retailers or

manufacturers.

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SCALE COST

Indicative Turnover 1 – 10 million per monthAve no. orders per month (@ ave size

of Rs 1000)5,000

Typical IT infrastructure Online marketplace – E.g. Amazon, snapdeal, flipkart etc.

Legal status and formalities Pvt. Ltd. / LLC: VAT/CST, Accounts, Audits, Payroll

Payment Gateway Premium Plans – PayU, PayTM, etc.

Employee Count (Excluding founders) 5 – 10 (including professional skills – tech, marketing, accounting etc.)

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Setup CostsIT infrastructure 10,000 $– 20,000 $

Office Space (Mumbai, New Delhi) 30,000$ – 60,000 $

Payment Gateway 1,000$ – 2,000 $Operating capital – (3 month fixed operating costs + 15 days variable

operating costs)

1,00,000$ –1,60,000 $

SEO 50,000 $-60,000 $

Promotion 5,00,000 $-6,00,000 $

Total Initial Investment 6,91,000 $-9,02,000 $

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Ongoing fixed costs (monthly)Employee salaries 5,000 $-7,000 $

IT infrastructure 1,000 $– 2,000 $

Office rental 1,000 $ – 2,000 $

Utilities (Power, Internet, Maintenance)

100 $ – 200 $

Total ongoing fixed costs 7,100 $– 11,200 $

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Oder @ Day 500Minimum Oder 30 $

Minimum Charge 10%

Gross margin / order @ Day (500*30) /10 =1500 #

Pay Add @ Day 100

Add Charge 3$

Add Profit @ Day (100*3)300$

Gross profit @ Monthly (1,500+300)*30=54,000 $

Monthly Fixed cost 11,200 $

Net Profit (54,000-11,200) 42,800 $

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