E tailing market in india 2014 - sample

e-Tailing Market – India
March 2014

2E-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 20112010
• Indiamart.co
m 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.c
om and
compareIndia.c
om
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--e20--e
d
INR bn
xxx
20--e20--
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
SAMPLEFinancial 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/LossTotal 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 bnINR bn

11
SAMPLE
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--
xxxxxx
Business Highlights (x/x)
Description News
xxx
xxx

12
SAMPLE
Business Highlights (x/x)
Description News

13
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
Public: Foreign Company – Player 1. (x/x) – SWOT
Analysis

14
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
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
SAMPLEFinancial 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.
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/LossTotal 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
SAMPLEKey Recent Developments
Description News

18
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
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
MedLow High
Mobile Usage
Low HighMed
xxxxxx xxx
xxx xxx xxx

20
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

22
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

23
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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