2. SCOPE
• What is WEB
• Why adopt WEB strategy
• Success matrixes
• Challenges
• Opportunity
3. WEB
Web Exclusive Brand is one that sells unique
products online
• Web Exclusive : Selling only online.
• Unique Products: Pvt label /not available
elsewhere
attempts to create a monopoly of sorts
4. WHY GO WEB ROUTE?
To answer this lets examine the evolution of
fashion ecommerce in India
5. IT ALL BEGAN WITH…
The “GILT” Model -
• Back-stock liquidators / supply?
• Consumer proposition - deep discounts
• COD – the additional grease
No risk proposition lead to trial, but little repeat
6. FOLLOWED BY..
The Retailer Model:
• Consumer Proposition – accessibility
• Multi Brand Retail
• Fresh seasonal goods
• Consumer cocaine – discounts & free
shipping
Delivered top-line, cash-burn but still no loyalty
7. THE PROBLEM..?
Business not sustainable
• Low Gross Margins
• High Discounts
• Negative Net Margins
• High COA
• Poor repeat / loyalty
Each transaction led to more cash burn!
8. THE WISH…
…….a business model that compels consumers
to return again and again & shop at full price
Win customer loyalty without discounts; how?
9. THE MAGIC RECEPIE
Recipe: Loyalty on the rocks
• Unique / fab merchandise……….60 cl
• Spin a Brand story...………………20 cl
• Value equation…………………….20 cl
• Discounts ………………………….Skip
Stir (don’t shake) - gets them helplessly loyal
10. ENTRE WEB
The Brand route to create the helplessly loyal
consumer
• Focus on a sharp TG segment
• Invest in Brand positioning & imagery
• Bring focus to consumer experience
• Offer unique and desirable merchandise
• Value pricing
and build lasting values
11. THE CHALLENGES
From trading to full value chain
• Design & manufacturing
• Building a brand
• Investment in inventory
• High COA due to targeting
• More difficult to scale
Its like doubling the odds of failure!
12. WHAT HELPS
Online business is real business too – get your
fundamentals right:
• Founding team must bring all key skills & experience
• Get the consumer facing proposition right
• This is not a valuation game
• Investor is patient & yet allergic to burns
• Timing is right
• Lady luck supports
It’s a long haul & there are no short cuts
13. SUCCESS MATRICES
WEBs = Destination shopping = high performance
• Conversion Rate
• Repeat
• WOM - Organic traffic
• Minimum discounting
• Gross & Net margin
Makes good business sense
14. FINALLY
WEB suitable:
• For Fashion & Lifestyle segment
• When Founders have the skill & passion
• When scale at any cost is not the game
• When bottom-line is as important….
• When quick multi-million $ exit is not core
When you are in business for the right reasons!
