1. 1. Vivek Pandey
2. 2. $500 bn Walmart Worldwide Sales $2 tr Indias #1 online retailer sales $70 tr India GDP $15 tr India Online Sales $5 tr US GDP $50 bn US retail market $15 bn World GDP $1 bn Indian Retail Market Amazon Worldwide Sales
3. 3. $500 bn Indian Retail = Walmart Sales $2 tr India GDP $70 tr World GDP $15 tr US GDP $5 tr US retail market $50 bn Amazon Worldwide Sales $15 bn India Online Sales $1 bn Indias #1 online retailer sales
4. 4. ABCs objective was to aim for the top spots in online B2C/B2B stationery, school & office suppliesmarket. We had only 4 months(July - Nov,2012) of active operations after 6 months((Jan-June,2012) of initial ground work which resulted in 17000 SKUs, 200+ Brands & 100 + dealernetwork, operational touch points in Pune, Bangalore, Kolkata & Mumbai. ABC is the only sitewhich has brought all the leading stationery houses under one roof. Over the past couple ofmonths I have reached out to all of the VC/PE/Angel community with the objective of raisingfunds ( 2-3 Million USD). I got a very good response on the space/model but translation of thatinto funds could not happen . I got commitment of investment only if we reach certain level ofmaturity and we cant reach there till I get certain level of investment. A Big Deadlock !!.Unfortunately we couldnt break it. With no inflow of funds, we have decided to shut it down (more than 2 months).As you can infer, I adopted a wrong strategy( at hindsight) of focussing too much on building a goodplatform with one of the best merchandize selection, new look and feel, cool features, related blog andothers. It took us 6 months to go live and I hardly focussed on the sales and marketing during thatperiod. By the time I went live, I exhausted most of my funds. I was in the market at the wrongtime to raise funds. I did not have enough money left to spend on sales, marketing operation etc.Within just 4 months of operations I had to shut down.
5. 5. ABC is still the "best" positioned portal targeting both school and office domain with a commonthread of "stationery" which no site in India currently offers. We wanted to be agnostic to anyparticular domain ( school or office).Our overarching strategy was "nursery to boardroom(NtB)",though we came in the market with the tagline of "largest stationery..." to grab the mindshare. Ifyou carefully see, we are much beyond than stationery and have smartly chosen our merchandize.Office Electronics are big puller, that will drive customers, and we already have high profitablecategories like premium pens, high end art and paints, premium accessories, kids stationery etc.and yet we are not de aligning from our NtB strategy. If required it can remolded, rebranded tosuit your requirement and take off any overlapping sections. We were also preparing to launchcorporate gifting, office printing, office s/w, office housekeeping etc. I can seriously vouch thatthere are not enough strong players in currently in south, east and west zones.After burning more than 35 Lakhs, I have to now go back to a corporate job to support my family andrecover the losses. which also means I am left out with only one option..i.e acquisition route. I amvery flexible on the sales terms and all I want is someone experienced and passionate to rebuildthe brand , put together a new team and take it forward. I am willing to do a majority staketransfer without any cash component.
6. 6. ? Macro and Micro View? Evolution & nature of ecommerce in India? Business Analysis of Ecommerce? Business Models in ECommerce
7. 7. Overall Context of the GrandSecond Coming of Ecommercein India
8. 8. Amazon & eBay (1995) AMZN Rev. $15m $2.8b EBAY Rev. $5.7m $0.5b Fabmart & Baazee (2000) IndiaTimes, Rediff, Sify Plus 1000 more Lack of depth in business models People and Infrastructure not ready No depth in funding sources
9. 9. The post-IRCTC worldGraphic courtesy Forbes magazine Better Logistics 1st Gen entrepreneurs Stronger Business Models Deep Pockets
10. 10. First half of the decade, internet outpaced Ecommerce Second half of the decade Ecommerce is outpacing the internet What Happened?? IRCTC Rising Income, Falling Fares Google and Facebook Cheaper Mobiles and BRIC Funds and Entrepreneurial CamerasVacuum Sluggish growth in Retail Rise of busy working class
11. 11. Roads < BroadBand < Mobile Multilingual, Internet-Illiterate Customers Fuzzy Legal Framework Pricing Competing with Fakes
12. 12. What doesnt kill you makes you stronger Understanding the hype is more important thanparticipating in it As always, a notable few events rather than alinear progression of them has created thetipping point situation in ecommerce Ecommerce in India is different than Ecommercein US or Europe.
13. 13. The Business of ElectronicCommerce
14. 14. Entry Barriers5432CompetitionSuppliers1 Retail0 Ecommerce SubstitutesBuyers
15. 15. Inbound OutboundMarketingOperations Service Logistics Logistics and SalesProcurementTechnologyHuman ResourcesAdmin/Finance/Management
16. 16. Logistics? Operations?Operations Logistics Technology? Marketing (Brand)? Service? Human Resources?
17. 17. SourcingMarketingLogistics E-CommerceCRMTechnology
18. 18. Non-Technical Suppliers Fixed technical overhead for each supplier Fragmentation Price Undercutting Opaque vs. Transparent Volumes/Deals downward spiral Uncertainty and Competition
19. 19. Front End All About Scale Back End Supply Chain and ERP Privacy, Security and Legal Framework The Long Haul Recommendation Engines Learning Machines Bayesian Classifiers And much, much more
20. 20. You cannot make the customer happy, you can only not make himunhappy 24X7 support, free shipping, 30 day return, COD all are becomingHYGIENE factors Rising costs of quality call center executives Multiple fronts opened simultaneously by customers
21. 21. Ecommerce biggest ad spender afterFMCG Does brand play a role in ecommerce?Does it in retail? Is Big Bazaar a brand?Is Flipkart? How different is Amazon asa brand from Coke as a brand?
22. 22. Search Engine Optimization Online Reputation Management Paid Search Auctions Affiliate Marketing Display Networks Remarketing Dynamic Ads Social Media Marketing Social CRM Email/Database Marketing
23. 23. Fragmented, Low-Tech Suppliers Sourcing Capital Intensive and Sophisticated Logistics Demanding, Active and Pampered Customers CRM Scale and RigorTechnology Beyond Ad SpendsMarketing
24. 24. Buy and SellMarketHybrid PlaceEcom BusinessModels
25. 25. Ebay, Baazee, OLX, Alibaba Pure Platform Play Auctions Drop Shipments Ratings Liability and Frauds Brand and Competitive Advantage?
26. 26. Logistics Gamble Inventory Risk Demand Forecasting Supply Chain Management Stock Accounting, Tax Implications
27. 27. Sell and Buy Facilitated Drop Shipment Merchant ERP Affiliate Auctions + Market Place + Buy and Sell +Affiliate = AMAZON
28. 28. Ecommerce is still a business, and the fundamentalbusiness concepts will always apply It may not be such an attractive industry from a soundbusiness perspective A website is just the front end of ecommerce, there are alot of other loose ends to be tied Players must find a niche and a source of competitiveadvantage The business models must be understood and chosen veryearly.
29. 29. Macro and Micro View Evolution & nature of ecommerce in India Business Analysis of Ecommerce Business Models in ECommerce