KOOVS.COM 2018€¦ · Koovs Private Label & the Best of Brands curated by design and creative team...

STRICTLY PRIVATE & CONFIDEN TIAL

KOOVS.COM 2018

Introduction to Koovs plc


AGENDA

The Prize: A Billion Pound Company (Hardman & Co 1 March 2018)

Koovs plc May 2018 2


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

3Koovs plc May 2018


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.

4Koovs plc May 2018


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

5Koovs plc May 2018


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

6Koovs plc May 2018


WHY KOOVS: THE SECRET SAUCE

Private Label

Customer Experience

Management Team

EARINGS BY MAWI X KOOVS

7Koovs plc May 2018


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

8Koovs plc May 2018


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

9Koovs plc May 2018


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

10Koovs plc May 2018

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


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



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%



£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



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



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


KOOVS.COM 2018€¦ · Koovs Private Label & the Best of Brands curated by design and creative team...

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Transcript of KOOVS.COM 2018€¦ · Koovs Private Label & the Best of Brands curated by design and creative team...