E tailing market in india 2014 - sample

e-Tailing Market – India

March 2014

2 E-TAILING MARKET IN INDIA 2014.PPT

Executive Summary

Market

e-Tailing market size in India was valued at INR xxx bn in 20-- and is expected to reach INR xx bn by 20--

The market is expected to attain a CAGR of approximately xx% during the period 20-- – 20--

Emergence of m-Commerce, improving customer experience, online reputation management and informing customers about products were the major trends followed by the players

Drivers and Challenges

Trends Changes in Business Models

Refreshed Strategies

Competition

Major e-Commerce Vendors

Player 1 Player 2 Player 3 Player 4

Player 5 Player 6 Player 7 Player 8

Drivers

Increased Spending Power

Increasing Internet Penetration and PC Users

Ease of Transaction

Need to save time

Challenges

Online Advertising and Customer Acquisition Costs

Losses incurred for COD

Costs Stack-ups

3

•Macro Economic Indicators

•Introduction

•Market Overview

•e-Commerce Technology

•Drivers & Challenges

•Trends

•Competitive Landscape

•Consumer Insights

•Market Opportunity

•Strategic Recommendations

•Appendix

E-TAILING MARKET IN INDIA 2014.PPT

4

Online Retailing – Evolution in India

1996 2011 2010

• Indiamart.com started operations as a B2B online marketplace in India

2012

• Rediff.com started its online shopping portal in 2001, focusing on electronic market

2001

• Network18 Group started its Homeshop18.com and compareIndia.com

2006 2007

• Future Group started its online shopping portal FutureBazaar.com in 2007

• Snapdeal was launched and is deemed as one of the most successful daily deals website in India

• Taggle.com, a deal website closed its operations in the country citing reasons such as unprofitable price wars in the industry

• Amazon.com has entered India through Junglee.com in the e-tailing territory, and current FDI scenario is becoming stringent

Is considered to be the oldest and the largest online B2B marketplace, wherein, it broke even in the first year of its launch and has been registering a profitable growth since then

It registered revenues of INR 12.2 mn which constituted 1.5% of the total sales of the Future Group

It is estimated to be growing by 40-50% on a monthly basis and boasts of having more than 400 employees thereby establishing its presence in 50 cities across the country


5

High Internet penetration coupled with rise in disposable income is driving growth in the market

• Currently, this segment is the fastest growing category out of the overall Indian e-Commerce market

•At the beginning of the third quarter of 20--, the market had over 35 mn unique visitors spread across the nation

• Some of the fastest growing product segments in the market comprise apparels, accessories, home & electronic

appliances, books and consumer goods to name a few

• Eyeing the immense growth opportunity, several players have entered the market resulting in stiff competition

e-Tail Market Overview – India

b

a

c

0

c b

20--e

e

20--e

f

20--e 20--e

d

INR bn

xxx

20--e 20--

a

e-Tail Market Size & Growth – India


e-Tail Market – Major Players India

Website Market Reach - (2012)

Player 1 Xxx

Player 2 Xxx

Player 3 Xxx

Player 4 Xxx

Player 5 Xxx

Player 6 Xxx

6

SAMPLE The 4P’s summarize the pressure points of how, what , where and how the e-tailing ecosystem works

• In close tandem with the general marketing activities, e-tailing concerns also conform to the same 4P’s of marketing activities

• Just as physical retail chains need to follow certain tactics in order to promote their products at the right place at the right price, e-tailing concerns also follow the same in order to sustain in the competitive scenario

E-tailing – 4P’s of Marketing

Product

xxx

Place

xxx

Price

xxx

Promotion

xxx


7

SAMPLE Cost Stack-ups have emerged as one of the major hurdles for e-Commerce vendors in recent times

Cost Stack-ups Impact •Unlike the initial days of e-Commerce’s inception in India, vendors are now taking a toll due to

the continuous cost stack-ups that occur while operating in the market These cost stack-ups are tough to avoid, however players are keen on minimizing them without hampering

the growth of their businesses

• Some of the major costs that add up and consequently lower the operating margin can be illustrated as below:

Cost of items Free Shipping

Discounts Inventory &

Write-offs and Warehousing

Packaging Manpower

Costs

Gross Margins

After taking into account all the cost stack-ups an e-

Commerce vendor witnesses a significant decline in its

gross margins, thereby resulting in lower profitability


8

SAMPLE Porter’s Five Forces Analysis

Bargaining Power of Buyers • xxx

Impact xxx

Threat of New Entrants • xxx

Impact xxx

Bargaining Power of Suppliers • xxx

Impact xxx

Threat of Substitutes • xxx

Impact xxx

Competitive Rivalry • xxx

Impact xxx


9

SAMPLE Public: Foreign Company – Player 1. (x/x)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Name Designation

Head Office Hyderabad

Category Products/Services


10

SAMPLE Financial Snapshot Key Ratios

Financial Summary • The company incurred a net profit of negative INR 2.1 bn in FY 2012, as

compared to net profit of INR 33.5 bn in FY 2011

• The company reported total income of INR 3355.5 bn in FY 2012, as compared to INR 2568.5 bn in FY 2011

• The company earned an operating margin of 1.11% in FY 2012, a decrease of 0.68 percentage points over FY 2011

• The company reported debt to equity ratio of 0.19 in FY 2012, an increase of 867.92% over FY 2011

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (USD)*

PE Ratio (Abs)*

Particulars y-o-y change

(2012-11) 2012 2011 2010 2009

Profitability Ratios Operating Margin -0.68 1.11% 1.79% 4.09% 4.80%

Net Margin -1.37 -0.06% 1.31% 3.35% 3.67%

Profit Before Tax Margin -1.28 0.64% 1.91% 4.38% 4.70%

Return on Equity -5.08 -0.24% 4.84% 10.83% 10.37%

Return on Capital Employed -3.32 4.99% 8.30% 16.69% 18.30%

Return on Working Capital -3.76 29.47% 33.23% 41.66% 48.50%

Return on Assets -1.33 2.08% 3.41% 7.48% 8.54%

Return on Fixed Assets -7.84 7.05% 14.90% 50.78% 77.79%

Cost Ratios Operating costs (% of Sales) 0.69 98.89% 98.21% 95.89% 95.19%

Administration costs (% of Sales)

1.64 15.92% 14.28% 12.86% 12.49%

Interest costs (% of Sales) 0.02 0.15% 0.14% 0.11% 0.14%

Liquidity Ratios Current Ratio -4.55% 1.12 1.17 1.33 1.33

Cash Ratio -6.28% 0.60 0.64 0.84 0.86

Leverage Ratios Debt to Equity Ratio 867.92% 0.19 0.02 0.02 0.01

Debt to Capital Ratio 729.66% 0.16 0.02 0.02 0.01

Interest Coverage Ratio -44.59% 7.35 13.26 36.05 34.71

Efficiency Ratios Fixed Asset Turnover -23.27% 6.38 8.31 12.35 16.16

Asset Turnover -1.33% 1.88 1.90 1.82 1.77

Current Asset Turnover 4.36% 2.87 2.75 2.49 2.50

Working Capital Turnover 43.69% 26.63 18.53 10.13 10.07

Capital Employed Turnover -12.83% 3.16 3.62 3.16 2.78

Improved Decline

Net Profit/Loss Total Income

33.5

0

1000

2000

3000

4000

-20

0

20

40

60

2012

-2.1

3355.5

2011

2558.5

2010

51.4

1531.8

2009

41.9

1140.6

INR bn INR bn

Public: Foreign Company – Player 1. (x/x)


11


Key Business Segments Key Geographic Segments

100%

50%

0%

20--

100%

48% 45% 44% 43%

52% 55% 56% 57%

0%

50%

100%

20-- 20-- 20-- 20--

xxx xxx

Business Highlights (x/x)

Description News

xxx

xxx


12


Business Highlights (x/x)

Description News


13

SAMPLE • xxx • xxx

• xxx • xxx

T O

W S

Public: Foreign Company – Player 1. (x/x) – SWOT Analysis


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SAMPLE Private: Foreign Company – Player 1. (x/x)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Category Products/Services

Head Office Mumbai


15

SAMPLE Private: Foreign Company – Player 1. (x/x)

Shareholders of the Company Ownership Structure

Name No. of Shares held

Xxx Xxx

Xxx Xxx

Xxx Xxx

Total Xxx

100.00%

Foreign Holdings

Note: Foreign Holdings include foreign institutional investors, foreign companies, foreign financial institutions, non resident Indians, overseas corporate bodies or others


16

SAMPLE Financial Snapshot Key Ratios

Particulars y-o-y change

(2012-11) 2012 2011 2010 2009

Profitability Ratios Operating Margin 12.92 -30.07% -42.99% N.A. N.A.

Net Margin 12.47 -30.07% -42.54% N.A. N.A.

Profit Before Tax Margin 12.92 -30.07% -42.99% N.A. N.A.

Return on Equity -30.19 -91.70% -61.51% N.A. N.A.

Return on Capital Employed -29.53 -91.70% -62.17% N.A. N.A.

Return on Working Capital -389.15 -468.48% -79.33% N.A. N.A.

Return on Assets -8.54 -28.71% -20.17% N.A. N.A.

Return on Fixed Assets 841.28 -166.44% -1007.7% N.A. N.A.

Cost Ratios Operating costs (% of Sales) -12.92 130.07% 142.99% N.A. N.A.

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity Ratios Current Ratio -21.41% 1.10 1.39 N.A. N.A.

Cash Ratio -37.74% 0.70 1.13 N.A. N.A.

Leverage Ratios Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.

Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios Fixed Asset Turnover -76.39% 5.54 23.44 N.A. N.A.

Asset Turnover 103.49% 0.95 0.47 N.A. N.A.

Current Asset Turnover 159.69% 1.35 0.52 N.A. N.A.

Working Capital Turnover 744.33% 15.58 1.85 N.A. N.A.

Capital Employed Turnover 110.89% 3.05 1.45 N.A. N.A.

Private: Foreign Company – Player 1. (x/x)

Improved Decline

Financial Summary

• The company incurred a net profit of negative INR 15.3 mn in FY 2012, as compared to net profit of negative INR 129 mn in FY 2011

• The company reported total income of INR 508.6 mn in FY 2012, as compared to INR 303.4 mn in FY 2011

• The company earned an operating margin of negative 30.07% FY 2012, an increase of 12.92 percentage points over FY 2011

Net Profit/Loss Total Income

-15.3

0

100

200

300

400

500

600

-150

-100

-50

0

-129.0 303.4

508.6

INR mn INR mn

2011 2012


17

SAMPLE Key Recent Developments

Description News

Private: Foreign Company – Player 1. (x/x)


18

SAMPLE • xxx • xxx

• xxx • xxx

T O

W S

Private: Foreign Company –– Player 1. (x/x) – SWOT Analysis (x/x)


19

SAMPLE Consumer Behavior & Preferences: e-Commerce Segments (x/x)

e-Commerce Usage Frequency

Med Low High

Mobile Usage

Low High Med


xxx xxx xxx

xxx xxx xxx

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SAMPLE Consumer Behavior & Preferences : Analysis

• xxx

e-Commerce User’s Gender Split – Age Wise

57%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

35+ Years

~100%

25-34 Years

70%

18-24 Years

43%

xxx xxx

When targeting the consumers of 18-24 years

• xxx

When targeting the consumers of 25-34 & above 35 years

• xxx

Product Mix Strategy


21

SAMPLE Social Media Domain (x/x)

Social Networking Penetration – India v/s Global

12.5%

xxx

India Global

7.1%

India Global

8.3%

xxx

10.0%

India forms the 2nd largest user base standing at

13.7% of the total user base of Google Plus which stands at 90 mn , ranking

behind the US

Global Rank Rank in India Cities

1 1 xxx

4 2 xxx

8 3 xxx

Google Plus – User Base

Google Plus User Base – Top Cities

31.5

13.7

0

10

20

30

40

%

xxx

xxx


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SAMPLE Mobile Platforms (x/x)

• xxx

a

b

c

d

e

0

mn units

+61%

20--e

e

20--e

d

20--e

c

20--e

b

20--

a

Market Size – Smartphone in India

a

b

g

c

d

e

f

0

INR’000

c

20-- 20--

b

20--

a

Smartphone Minimum Price Point - India


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Thank you for the attention The e-Tailing Market – India 2014 report is a part of Netscribes’ Information Technology Series. For more detailed information or customized research requirements please contact:

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E tailing market in india 2014 - sample

Documents

leverage ratios

company information

sample xxx

xxx xxx xxx

cost stack

interest costs

company incurred

company earned