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e-Tailing Market in India April, 2013

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Executive Summary

Executive Summary Today India is considered as one of the most desirable retail destinations in the world with tremendous growth potential which is being driven both by the growing economy and favorable demographic subset that the country possess. One of the subsectors with in the growing retail sector is the e-Tailing (online retail) market. The advent of e-Tailing market in India started in late 1990‘s and early 2000‘s with the launch of online portals like Rediff.com, Sify and Bazzee.com (now ebay.in). But the real revolution took place with the launch of Flipkart.com in 2007, which totally changed idea and landscape of the e-Tailing business in the country. The India‘s e-Tailing market which is still in its nascent stage, has grown rapidly since the launch of Flipkart. In 2012, the e-Tailing market in India was estimated to be USD 1.3 Bn which has grown at a CAGR of 51% since 2008, when it was valued at USD 250 Mn.

Going forward e-Tailing revenues in India will increase by close to seven times by 2016, jumping from US$1.3 billion in 2012 to US$9 Bn in 2016. By 2020, the e-Tailing market will touch USD 70 Bn mark and will make around 8.2% of the total retail sales in India. Though the growth in the e-Tailing market is majorly being driven by the growing economy and large subset of young and growing middle class population, there are some other specific business drivers that have also been identified. These include high penetration of technology (computer, smartphones and Internet), multiple payment channels offered to address the disparate needs of different consumer segments and favorable buyer profile with increasing online ‗social‘ connections . However, to make the growth sustain in longer term, the industry needs to overcome through some of the key challenges pertaining to logistics, payments and tough consumer profile of the country.

Over the past five years, various venture capitalists have invested heavily in the Indian e-Tailing market , thus helping many new players to emerge in the Indian eCommerce ecosystem. At present the Indian e-Tailing market hosts more than 400 e-Tailers who all follow either of the four business models including — standard, deal-based , club-based and marketplaces models of doing eTailing business in India. Moreover, growing e-Tailing market have also encouraged various large Indian retailers (for example Croma) to build an online presence and cater the growing competition with in the market. Moreover, an increasing number of foreign online retailers like Amazon.com are trying hard in lobbying the Indian central government to ease the regulatory environment that restricts them to take on the rapidly growing e-Tailing market in India. Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Overview

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Key stages in the evolution of e-Tailing in India

1996-98 – Rediff.com was launched in 1996 – India introduced new ISP policy in 1998, which ended VSNL‘s monopoly on internet – Sify became India‘s first private ISP in 1998

2000 – Bazzee.com was launched based on the eBay model – Foreign portals Yahoo & MSN launched Indian sites – ITC launched E-Choupal

2007 – Flipkart was launched based on the Amazon.com model – Over 47 Mn estimated internet users in India, accounting for close to 4% of penetration

2008-12 – 3G enabled Mobile and Data services were launched – Many e-retailers like HomeShop 18, Yebhi, Myntra, Jabong, Snapdeal were launched – Internet users in 2012 increased to c.110 Mn

1995 – Videsh Sanchar Nigam Limited (VSNL) introduced internet via dialup across 6 cities in India on August 15

Source: Secondary Research; Department of Telecommunications, Govt. of India; Industry Estimates © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Current market size and projections

e-Tailing Market Size (US$ Mn)

Key segments

70000

• Computer peripherals was the largest selling segment in 2011, followed by Camera & Mobile segment and Lifestyle segment which held the second and the third places, respectively

9000

250

300

400

600

• By late 2015, Camera & Mobile is forecast to take the top position pushing computer peripherals to the third position • Apparel segment which is worth USD 130 Mn, is considered to be the fastest growing segment that has registered an annual growth of 362% as of July 2012

1300

2008 2009 2010 2011 2012

• Computer peripherals, Camera & Mobile and Lifestyle segments together accounted for than 70% of the total eTailing market in 2011

2016

2020

• In 2012, the e-Tailing market size in India was estimated to be USD 1.3 Bn and the same is forecast to reach to c. USD 9 Bn by 2016. Other surveys suggest that the market will continue to grow at more or less the same pace after that too and reach c. USD 70 Bn by 2020 • Currently, Indian e-Tailing market constitutes a very small part (0.25%) of the overall retail market; but is projected to grow to 8.2% by 2020

• Toy segment accounts for c.USD 50 Mn of the overall eTailing market in 2012. And the same is expected to grow at a CAGR of 25% in future

“…Computer, camera, mobiles and electronics contribute to the largest cluster. It contributes more than 60 per cent to our overall business…” >> Subhankar Sarkar, CEO, Indiatimes.com

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Regulatory Framework

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Regulatory Framework

e-Tailing business or the online retail business in India is governed by regulatory factors that are are more or less similar to the applicable to that applicable for the offline retailing business

Direct Tax

FDI •

The Indian FDI policy restricts foreign retailers to carry out e-Tailing business in the country. They can only engage in Business to Business (―B2B‖) e-Commerce trading Foreign online retailers can operate with their Indian subsidiary but are not allowed to sell directly to consumers. Buyers to such sites need to make their purchases through third-party suppliers, either online or in person

In Feb 2013, Amazon.com sent a team of its top official to India to discuss the possibility of re-working the policy (lobby) with the policy makers to allow FDI in online retail Amazon.com operates in India through Junglee.com — an online shopping portal that enables buyers to compare various products and their prices listed on other e-commerce web sites

― …We talked to the government officials on all kinds of issues... (we are) trying to find a better way to serve our Indian customers, both sellers and buyers … We have nearly 9,000 employees here in the country (India) and we are looking ways to better serve our customers …‖ >> Paul E Misener, Global Vice President, Amazon (on meeting with India‘s Commerce and Industry Minister Anand Sharma)

All companies incorporated in India are subject to tax at an effective rate of 32.45% of the income

A company is also subject to the minimum alternate tax provisions whereby it is liable to pay 20.01% of the profits as tax, if it is higher than the tax payable under the normal provisions of the Act

Transfer Pricing (TP) •

Introduced in 2001, the provisions of TP regulations apply to all ‗international transactions‘ entered into by MNCs with their overseas associate enterprises

Indirect Taxes •

Multiple indirect taxes are levied either by the central government or by the state governments on sales, purchases or movements of goods in their respective jurisdictions

Various indirect taxes include – customs duty, central value added tax, state value added tax, service tax, central sales tax and entry tax

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key Drivers

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Key business drivers: Ease of access thanks to high penetration of computers, phones and internet (1/3) Active Internet users (Mn) 800

110

• The active Internet user base is expected to grow to 300 Mn by 2017 and to 800 Mn by 2020

2012

• The growth in internet users will be driven by growing adoption of fixed broadband and the launch of 3G/4G services

300 25 2005

• India is the third-largest internet market in the world with 110 Mn active users as of 2012

2017

2020

People with Smartphones (Mn)

450

• Smartphone users are expected to grow to 250 Mn by 2017 and 450 Mn by 2020

250 1 2005

40 2012

• With a mobile subscriber base of 864 Mn recorded at the end of 2012, India has the second largest mobile phone user base in the world. Out of this, around 40 Mn people are smartphone users

2017

2020

• Increasing preference for high-end handsets and the younger generation‘s desire to use mobile Web technologies will further fuel the smartphone growth in India

PC Shipments (Mn) 18 9

10

11

14

• In 2012, India registered a total of 11 Mn PC shipments, up from 9 Mn in 2008 • PC shipment is expected to grow to 14 Mn by 2014 and 18 Mn by 2016 • Increasing internet penetration in smaller towns will drive the growth

2008

2010

2012

2014

2016

Source: Secondary Research; Industry Estimates © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key business drivers: Multiple payment channels to address disparate needs of different consumer segments (2/3)

Cash on Delivery

Credit / Debit cards

Online Banking

• In India cash on delivery (COD) is the preferred payment mode for about 58% of the transactions (volume) done online. As against this, in the developed western markets, COD constitutes only 15% of the transactions

• The number of cards issued has grown at a CAGR of 17.3% since 2005 to reach 205 Mn in 2012. The same is projected to grow at a CAGR of 13.5% in the next 3 years to reach 300 Mn by 2015

• Online bank transfer is also a common online payment method in India

• Online lifestyle retailers such as Myntra.com and FashionandYou.com rely on COD for at least 60% of their transactions. Similarly, for Flipkart, COD drives half of its sales • While COD is the best way to acquire new customers, return rates on these orders can be staggering. Venture capitalists report COD return rates of up to 25% in some categories

• In FY2012, the overall spending on credit cards and debit cards stood at USD 19 Bn and USD 10 Bn, respectively

• According to a survey conducted by Asia Pacific Technographics, in Q3 2011, about 24% of online buyers in India used online banking payment at least once for a purchase made online • As of 2011, about 7% of bank account holders in India used online banking services as compared to 1% in 2007

• Indian consumers still lag behind on card payments as compared to the consumers in developed economies . About 33% of the transactions (volume) for online shopping is done using credit /debit “…Indian consumers are much more cautious about cards shopping online as compared to the West. They are reluctant to divulge credit card details. The cash on delivery service has helped a lot of traditional consumers turn to online shopping…” >> Sachin Bansal, CEO, Flipkart

Source: Secondary Research; Industry Estimates © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key business drivers: Favorable buyer profile with increasing online „social‟ connections (3/3) Facebook Users (Mn) 71 46

• India has the third largest active user-base of Facebook in the world, after US and Brazil • According to Facebook estimates, the Monthly Active Users (MAUs) have increased 54% y-o-y, to reach 71 Mn in December 2012, which amounts to over half of the internet users in India

Dec 2011

Dec 2012

• The largest user base falls under the age group of 18-24 years, which accounts for nearly half of the total users

Twitter Users (Mn)

33

38

• India ranks second across the globe in having active users on Twitter • The active users on Twitter in India increased by 15% to 38 Mn in Q4 2012, up from 33 Mn in Q2 2012

Q2 2012

Q4 2012

• More than 80% of Twitter users in India are male, which is on the higher side as compared to the global average of 47%

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key Challenges

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Key challenges

Key challenges Poor Knowledge and Awareness • Most Indians possess only functional knowledge of internet and have limited understanding of transacting online. The concern is even more so for the rural India • According to industry estimates, around 50% of Indian Internet users are unaware of the possibilities of online transactions and security therein. This makes them reluctant to disclose their credit card and bank details Logistics and Shipment Services • Logistics and courier services in India requires lots of improvement. The country is lagging far behind in this aspect as most of the towns and small villages are still not serviced by many of the courier and logistic companies • This prohibits the delivery of goods to as high as 60% of the Indian population that lives outside of major cities such as Mumbai and New Delhi

Online Transaction

Profit Margins

• Penetration of plastic money, credit card, debit card and net banking system is very low, which curtails the growth of e-Tailing business in India

• Adoption of price war strategy and mass media advertising has resulted in a very high customer acquisition cost, thus hitting the margins of the e-Tailers

• Also, issues concerning online security and transaction frauds have always been on the minds of the buyers

• Moreover, high rejection of COD by buyers leads to a loss of sale along with loss of product transit fees paid

• Moreover, high occurrence of failed payments with failure rates of 35%, also restricts buyers to revisit the portal

• According to Avendus, online retailers incur an additional expense of INR 3565 for every transaction involving COD

Consumer Profile • A majority of Indian buyers are still reluctant to shop online. Instead they prefer brick and mortar models so as to have a look and feel of the product and spend time in buying • Having been seduced during the holiday season with offers like free shipping and end season discounts, consumers prefer to wait for special deals from the merchants

Online Security • Various start up and small e-Tailers ignore the importance of authentic software due to budget constraints. They don‘t even install authentic protection services like antivirus and firewall protection • Such steps leaves room for virus, malwares and Trojan attacks which makes it risky to do online transactions in the systems. This can also leak sensitive details of the users

Source: Secondary Research; Industry Estimates © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Consumer Speak

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Consumers play an important role in the e-Tailing market

―…I really love it. Anytime, just take out 15 minutes, if you have something in your mind that you want to buy, just go to that particular website, buy it, so that‘s, you know, great. It‘s better than going out because I can do it everyday. Online, what happens is, you always get discounts. No matter what season, whether it is fresh stock or anything, you always get discounts. That is the benefit. You save time, you save money…..‖ >> Shweta Andrews, Online Consumer

―…Today‘s online Indian shopper isn‘t just regarding e-commerce as an alternative channel, she is recreating and reshaping her lifestyle in the intangible but infinitely engaging e-tailing stratosphere. No longer shackled to a shopping cart or traffic snarls, e-commerce in India is becoming the desirable fusion of product, service, content, commentary and conversation meshed together within the browser window of her connected device…― >> Adrian Terron, Executive Director, Retailer and Shopper, Nielsen India

―…It‘s quick to shop, with a lot of variety, no need to go with everyone to shop, just go online and choose from a lot of different options, time saving and no need to spend money on travelling…‖ >> Rohan Gautam, Online Consumer

© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Appendix – Key Players

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There are over 400 e-Tailers in India currently, and most of them follow either of the four business models Standard • Standard e-Tailers paves the basic model of online retail, wherein products are listed on the web portal, and customers browse and buy the products

Deal based • Deal based e-Tailers focus on providing lucrative deals across product and service categories • Key players include

• Key players include

Club-based

Marketplaces

• Club-based e-Tailers are websites that position themselves as an exclusive private shopping clubs that are open for registered members only

• Marketplaces are websites designed essentially to bring together buyers and sellers and serve as a platform for their interaction

• Membership on such clubs is by invitation only. To become a member you need to be invited by an existing member of the shopping club

• This kind of platform gives a buyer the advantage to choose from a list of sellers offering same product with different offers and price tags

• Key players include

• Key players include

   

Flipkart,com Myntra.com Homeshop18.com Jabong.com

   

Snapdeal.com Mydala.com DealsandYou.com Groupon.co.in

 FashionandYou.com

 Ebay.in  Junglee.com (Amazon.com)  Naaptol.com

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Flipkart.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

Funding Partners

• Name of the Company: Flipkart Online Services Pvt. Ltd • Brand Name: Flipkart.com • Brief Summary: Flipkart.com is an leading Indian online shopping platform that provides books, movies, music, games, consoles, gaming accessories, mobiles, mobile accessories, cameras, camera accessories, computers, computer accessories, network components, software, peripherals, home and kitchen appliances, TV and video products, and personal and health care products • Launch Year: 2007 • Customer Visits: 10.7 Mn unique customer visits per month (December 2012) • Transaction Volume: 30,000 units sold per day (March 2012) • Average Ticket Size: USD 35 (July 2012) • Revenues: Annual revenues of about USD 100 Mn (FY 2011-12) • Standard e-Tailer • Apparel, books, movies, music, games, consoles, gaming accessories, mobiles, mobile accessories, cameras, camera accessories, computers, computer accessories, network components, software, peripherals, home and kitchen appliances, TV and video products, and personal and health care products • Sachin Bansal, Co-Founder & CEO: Sachin currently serves as the CEO of Flipkart and oversees all the customer facing activities of Flipkart ranging from technology to marketing. Sachin has worked for Amazon.com in India in 2006, which he later left to set-up Flipkart. He holds a graduate degree in Computer Engineering from Indian Institute of Technology (IIT) Delhi • Binny Bansal, Co-Founder & COO: Binny currently serves as the COO of Flipkart and oversees all operational activities spanning across divisions like warehousing, logistics and customer support. Prior to Flipkart, Binny too had worked for Amazon.com in India for small period. He too holds a graduate degree in Computer Engineering from IIT Delhi • Helion Ventures, Accel Partners and Tiger Global Management LLC

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Jabong.com

Company Profile

Business Model Merchandise Sold

• Name of the Company: Xerion Retail Pvt Ltd • Brand Name: Jabong.com • Brief Summary: Jabong.com is a fashion and lifestyle ecommerce portal that caters the fashion needs of men, women and kids. Headquartered in Gurgaon (India), Jabong.com is owned by Xerion Retail Pvt Ltd, which is backed by Germany-based Rocket Internet, a venture arm of the Samwer Brothers • Launch Year: 2011 • Customer Visits: 11.6 Mn unique customer visits per month (December 2012) • Transaction Volume: NA • Average Ticket Size: NA • Revenues: NA • Standard e-Tailer • Apparel, footwear, accessories, fragrances, watches, cosmetics , toys, home décors, home furnishings, kitchen and dining products • Manu Kumar Jain, Co-Founder & MD: Manu serves as a the MD and looks after the marketing activities of Jabong.com. Manu has worked for McKinsey & Co. for close to 5 years. He holds an B.Tech degree from IIT Delhi and a Masters in Business Management from Indian Institute of Management (IIM)-Calcutta

Promoter‟s Profile

• Praveen Sinha, Co-Founder & MD: Praveen is the MD and oversees the entire operations capability of Jabong.com. He has worked in companies like McKinsey & Co. and Microsoft and Maruti Suzuki. He holds an engineering degree from Delhi College of Engineering and a Masters in Business Management from IIM-Calcutta • Arun Chandra Mohan, Co-Founder & MD: Arun too serves as the MD of Jabong.com and is in-charge of sourcing. Earlier, he was a venture partner with Rocket Internet for almost a year and prior to that role, was a senior market analyst with IT research firm IDC

Funding Partners

• Rocket Internet Gmbh

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Myntra.com

Company Profile

Business Model Merchandise Sold Promoter‟s Profile Funding Partners

• Name of the Company: Myntra Designs Private Limited • Brand Name: Myntra.com • Brief Summary: Myntra.com is an leading e-commerce company in India and is the largest online retailer that offers lifestyle and fashion products with over 500 national and international brands under its banner. The Company initially started with B2B (business to business) segment with the personalization of gifts but in 2010 shifted its focus to become B2C (business to customer) oriented firm • Launch Year: 2007 • Customer Visits: 9.3 Mn unique customer visits per month (December 2012) • Transaction Volume: 10,000-12,000 units sold per day (March 2012) • Average Ticket Size: USD 24 (July 2012) • Revenues: Annual revenues of about USD 16 Mn (FY 2011-12) • Standard e-Tailer • Apparel, footwear, accessories, fragrances, watches and cosmetics • Mukesh Chand Bansal, Founder & CEO: Mukesh currently serves as the CEO of Myntra. He has over 10 years of experience in multiple early stage start-ups in Silicon valley (NexTag, eWanted, Centrata, newScale) in various product management and development positions. He has been the Joint Managing Director of Beekay Steel Industries Ltd since November 29, 2006. Mukesh holds a B.Tech degree in Computer Science from IIT Kanpur

• Tiger Global, Accel Partners, Indo-US Ventures, IDG Ventures and Sasha Mirchandani from Mumbai Angels

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: HomeShop18.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

• Name of the Company: Network 18 Group • Brand Name: HomeShop18.com • Brief Summary: HomeShop18.com is an online retail and distribution venture of Network 18 Group, that offers multiple products like mobile phones, cameras, home appliances, gifts, games, books, laptops, gifts, and apparel • Launch Year: 2011 (Homeshop18 was launched in 2008) • Customer Visits: 4.2 Mn unique customer visits per month (December 2012) • Transaction Volume: Close to 6,000 transactions per day (December 2012) • Average Ticket Size: NA • Revenues: Annual revenues of about USD 18 Mn (FY 2011-12) for overall HomeShop 18 (including on air business) • Standard e-Tailer • Apparel & accessories, baby & kids products, books, cameras and camcorders, computer, electronics, footwear, gifts & flowers, health & beauty, home & kitchen, household appliances, jewellery, mobiles, office & stationery, toys, and watches • Network 18 Group: Network18 is one of the India's leading media conglomerates with operations in television, print, internet, filmed entertainment, mobile content and allied businesses. TNetwork18 operates India's leading business news television channels like CNBC TV-18 and CNBC Awaaz, through its holding in Television Eighteen India Ltd (TV18). It also operates various other television channels in partnership with different media conglomerates in India • GS Home Shopping Inc.: GS Home Shopping is a Korea-based home shopping company that operates its business through television (TV) home shopping, Internet shopping and catalogue shopping divisions

Funding Partners

• Capital 18 Fund, SAIF Partners and GS Home Shopping Inc. (Korea)

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Futurebazaar.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

Funding Partners

• Name of the Company: Future Bazaar India Ltd • Brand Name: Futurebazaar.com • Brief Summary: Futurebazaar.com is a leading online destination that offers home, lifestyle, electronics, gifts, kids, baby and supermarket products in India. Futurebazaar.com is the ecommerce arm of Future Group, one of the India‘s largest retail conglomerate • Launch Year: 2007 • Customer Visits: 1.9 Mn unique customer visits per month (January 2013) • Transaction Volume: NA • Average Ticket Size: NA • Revenues: Annual revenues of over USD 35 Mn (FY 2011-12) • Standard e-Tailer • Apparel & accessories, mobiles, digital cameras, optics, computers, consumer electronics, jewellery, books and stationery, music & movies , food, gift vouchers, watches, luggage & travel products, home décors, home furnishings, kitchen and dining products • Future Group: Future Group is India-based conglomerate that is engaged in businesses like retail, consumer finance, capital, insurance, leisure and entertainment, brand development, real estate development, and retail media and logistics. The Group operates a chain of fashion retail stores, lifestyle department stores, home building and improvement stores, hypermarkets, food and FMCG retail stores, and electronics stores. Future Group also owns and operates Futurebazaar.com, an online shopping portal • Futurebazaar.com is an 100% subsidiary of the Future Group

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Snapdeal.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

Funding Partners

• Name of the Company: Jasper Innovative Marketing Solutions • Brand Name: Snapdeal.com • Brief Summary: Snapdeal.com is India's leading online marketplace, featuring a best priced deals on wide assortment of products across categories. Snapdeal.com is the market leader in the retail services deals space • Launch Year: 2010 • Customer Visits: 4.5 Mn unique customer visits per month (December 2012) • Transaction Volume: Over 25,000 units sold per day (September 2012) • Average Ticket Size: NA • Revenues: Annual revenues of about USD 15 Mn (FY 2011-12)

• Deal-based e-Tailer • Mobiles, electronics, fashion accessories, apparel, footwear, kids, home and kitchen, sports, books; and Services like travel, restaurants, spas & entertainment • Kunal Bahl, Co-Founder & CEO: Kunal currently serves as the CEO of Snapdeal. Earlier, Kunal has worked for the product management and business development with Microsoft's emerging markets group, and with Deloitte Consulting as a consultant in the company's telecom practice in New York and Pennsylvania. Kunal is an engineer from University of Pennsylvania, and holds a business degree from The Wharton School and an executive marketing program at the Kellogg School of Management • Rohit Bansal, Co-Founder & COO: Rohit currently serves as the COO of Snapdeal. Earlier, Rohit has worked in financial services with US-based Capital One. Rohit completed his Masters and Bachelors of Technology degrees in Computer Science from IIT Delhi. Besides work, he pursues an active interest in travelling, adventure sports and trying out whatever seems fresh and interesting • Bessemer Venture Partners, IndoUS Ventures and Nexus Venture Partners

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: Mydala.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

Funding Partners

• Name of the Company: Kinobeo Software Pvt Ltd • Brand Name: Mydala.com • Brief Summary: Mydala.com is one of the India‘s leading online deal platform that features great deals and discounts on a wide assortment of products and services across categories, based on location and buying patterns via mobile and internet • Launch Year: 2009 • Customer Visits: 0.73 Mn unique customer visits per month (January 2013) • Transaction Volume: Over 80,000 vouchers sold per day (November 2012, Includes transactions registered by partner sites through syndication) • Average Ticket Size: NA • Revenues: NA • Deal-based e-Tailer • Computers, mobiles, electronics, fashion accessories, apparel, footwear, kids, home & kitchen, sports, books; and Services like travel, restaurants, spas & entertainment • Anisha Singh, Founder & CEO: Anisha currently serves as the CEO of Mydala.com. Prior to Mydala.com, Anisha has worked for Centra Software in Boston . She began her career with Capitol Hill working for Clinton administration that helped women entrepreneurs to raise funds for innovative women-led businesses. Anisha holds a Masters degree in political communication, as well as an MBA in Information Systems from American University in Washington DC • Info Edge, Ajay Relan (CX Partners) and Jayanta Basu (CX Partners)

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Company profile: FashionAndYou.com

Company Profile

Business Model Merchandise Sold

Promoter‟s Profile

Funding Partners

• Name of the Company: Fashion and You India Private Limited (owned by Smile Group Venture and Brand Alliance) • Brand Name: FashionAndyou.com • Brief Summary: FashionAndYou.com is India‘s leading online private sales club and is a leader in the online Fashion, Luxury & Lifestyle space that features collections by top designers for men, women and children. The website sources the authentic designer merchandise exclusively for the members through limited-time events • Launch Year: 2010 • Customer Visits: 2.8 Mn unique customer visits per month (December 2012) • Transaction Volume: NA • Average Ticket Size: NA • Revenues: NA • Club-based e-Tailer • Apparel, footwear, accessories, fragrances, watches, cosmetics, home & lifestyle products • Harish Bahl, Co-Founder & Chairman: Harish promoted FashionandYou.com and currently serves as the Chairman. Harish is also the Founder & CEO of the the Smile Group. As an digital media and ecommerce entrepreneur, he has incubated and grown several successful leading online businesses like Quasar (WPP Digital & Smile JV), Tyroo (Smile & Yahoo JV) and Zoomtra. He holds an B.Tech degree from SDM College of Engineering and Technology, Dharwad • Pearl Uppal, Co-Founder & CEO: Pearl currently serves as the CEO of FashionAndYou.com. Pearl is considered as an internet industry veteran and has extensive experience in companies like Yahoo!, Rediff.com & GE Corporate in India. She holds a Masters degree from IIT Delhi and a Bachelors in Engineering from Delhi College Of Engineering • Norwest Venture Partners, Intel Capital, Sequoia Capital India and Nokia Growth Partners

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

www.sutherlandglobal.com 5 June 2013

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Company profile: eBay India (eBay.in)

Company Profile

Business Model

• Name of the Company: eBay India Pvt Ltd • Brand Name: eBay India (eBay.in) • Brief Summary: eBay.in is the India‘s leading online marketplace that offers a trading platform for auctions, fixed price and classifieds modes of person-to-person. This is online trading community where anyone can sell or buy almost anything • Launch Year: 2004 or 2005 (through acquisition of Baazee.com in 2004) • Customer Visits: 17 Mn unique visits per month (January 2013) • Transaction Volume: Over 8,600 transactions per day (March 2012) • Average Ticket Size: NA • Revenues: Annual revenues of over USD 21 Mn (FY 2011-12) • Marketplace

Merchandise Sold

• Apparel & accessories, beauty & health, books & magazines, cameras & optics, cars & bikes, coins & stamps, computers & peripherals, consumer electronics, fitness & sports, home, tools & appliances, jewellery & watches, mobiles & accessories, movies & music, musical instruments, services & real Estate, toys, games & baby products, travel, Tickets & vouchers, video & computer games

Promoter‟s Profile

• eBay Inc: eBay is an California (US)-based multinational internet consumer-to-consumer company. Founded in 1995, eBay has a multi-billion dollar business with operations localized in over thirty countries across the globe

Funding Partners

• eBay.in is an100% subsidiary of eBay Inc.

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

www.sutherlandglobal.com 5 June 2013

26


Company profile: Junglee.com

Company Profile

Business Model Merchandise Sold Promoter‟s Profile Funding Partners

• Name of the Company: Junglee Corp (acquired by Amazon.com in 1998) • Brand Name: Junglee.com • Brief Summary: Junglee.com is an online shopping marketplace by Amazon which enables shoppers to find and discover products from online and offline retailers in India and from Amazon.com. The website organizes multiple buying options from hundreds of sellers, and leverages Amazon‘s proven technologies and millions of customer reviews to help customers make smart purchase decisions • Launch Year: 2012 (in India) • Customer Visits: 1.1 Mn unique visits per month (December 2012) • Transaction Volume: NA • Average Ticket Size: NA • Revenues: NA • Marketplace • Electronics, apparel, footwear, accessories, books, movies, music, kitchen & home appliances, toys, baby products, sports, health & beauty products • Amazon.com: Amazon.com is an Seattle (US)-based multinational electronic commerce company that operates as the world's largest online retailer. The Company operates in various countries including the US, Canada, the UK, France, Germany, Italy, Spain, Brazil, Japan, and China and has international shipping to certain other countries for some of its products

• Junglee.com is an100% subsidiary of Amazon.com, Inc.

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

www.sutherlandglobal.com 5 June 2013

27


Company profile: Naaptol.com

Company Profile

Business Model

• Name of the Company: Naaptol Online Shopping Pvt Ltd • Brand Name: Naaptol.com • Brief Summary: Naaptol.com is one of the India‘s largest comparison based social shopping portal engaged in helping customers with the latest deals and the lowest prices available from multiple sellers in the market. Naaptol.com also organizes extensive product reviews and ratings from experts that helps in comparison • Launch Year: 2008 • Customer Visits: 6 Mn visits per month (January 2013) • Transaction Volume: 8,000-10,000 transactions per day (April 2012) • Average Ticket Size: NA • Revenues: Annual revenues of over USD 2 Mn (FY 2009-10) • Marketplace

Merchandise Sold

• Mobiles, cameras, computers, gadgets, automobiles, kitchen products, jewellery, gifts, fashion products, health products, home decor products, apparel, sports products, hobbies and passion products, food and beverages, media products, baby care and maternity products, event supplies, and books

Promoter‟s Profile

• Manu Agarwal, Founder & CEO: Manu currently serves as the Founder & CEO of Naaptol.com, along with his other two founded companies, namely ANMsoft Technologies and Design Expo Network Pvt Ltd. Prior to this, Manu has worked as a Project Leader for WaferScale Integration in the US. He holds an BTech degree in Electronics from IIT Kanpur. Manu also holds an MS degree in Computur and Electronics from University of Minnesota

Funding Partners

• New Enterprise Associates (NEA), Canaan Partners and Silicon Valley Bank

Source: Secondary Research; Industry Estimates; Sutherland Analysis © 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

www.sutherlandglobal.com 5 June 2013

28


[ End of Presentation ]

Š 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

www.sutherlandglobal.com 5 June 2013

29

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