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. $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. 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. 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. ? Macro and Micro View? Evolution & nature of ecommerce
in India? Business Analysis of Ecommerce? Business Models in
ECommerce
7. Overall Context of the GrandSecond Coming of Ecommercein
India
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. The post-IRCTC worldGraphic courtesy Forbes magazine Better
Logistics 1st Gen entrepreneurs Stronger Business Models Deep
Pockets
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. Roads < BroadBand < Mobile Multilingual,
Internet-Illiterate Customers Fuzzy Legal Framework Pricing
Competing with Fakes
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.
18. Non-Technical Suppliers Fixed technical overhead for each
supplier Fragmentation Price Undercutting Opaque vs. Transparent
Volumes/Deals downward spiral Uncertainty and Competition
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. 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. 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. 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. Fragmented, Low-Tech Suppliers Sourcing Capital Intensive
and Sophisticated Logistics Demanding, Active and Pampered
Customers CRM Scale and RigorTechnology Beyond Ad
SpendsMarketing
24. Buy and SellMarketHybrid PlaceEcom BusinessModels
25. Ebay, Baazee, OLX, Alibaba Pure Platform Play Auctions Drop
Shipments Ratings Liability and Frauds Brand and Competitive
Advantage?
27. Sell and Buy Facilitated Drop Shipment Merchant ERP
Affiliate Auctions + Market Place + Buy and Sell +Affiliate =
AMAZON
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. Macro and Micro View Evolution & nature of ecommerce in
India Business Analysis of Ecommerce Business Models in
ECommerce