Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Paul Schulte, MA, MALD
Paul@schulte-research.com
www.schulte-research.com
(+852) 9705 0777
Gavin Liu, CFA – Senior Analyst...
2
SchulteResearch
India E-Commerce Overview: Great Growth Potential:
Analog India becomes digital
Source: eMarketer, Stati...
3
SchulteResearch
Alibaba has stake in the biggest online grocer in India: Indian
agriculture and groceries has 0 online &...
4
SchulteResearch
Indian Beauty Products: All cash market.
Source: Redseer, Schulte Research
Market Share
2%
98%
Beauty Pr...
5
SchulteResearch
B. India e-Commerce is growing rapidly, driven by smartphone penetration
Source: eMarketer, Schulte Rese...
6
SchulteResearch
Amazon in India
7
SchulteResearch
Amazon’s Acquisitions in India. Watch Amazon transform Indian agriculture
Online Payment
Lending
Insuran...
8
SchulteResearch
Amazon India VS Standard Chartered India
9
SchulteResearch
The Amazon moment for banks has arrived: Standard
Chartered Stock Price trashed. It’s trading at 0.4 x b...
10
SchulteResearch
Alipay & Paytm have nearly identical user interfaces: Alibaba
gets 250 mn new customers in 24 months wi...
11
SchulteResearch Paytm app covers a comprehensive array of needs for the Indian consumer:
Alibaba has migrated to India....
12
SchulteResearch
Paytm Mall brings to India the same hot strategies used by Taobao &
Tmall. PLUS, the ease of O2O retail...
13
SchulteResearch
Walmart in India
14
SchulteResearch
History of Flipkart - NOW Walmart
Source: Flipkart, Schulte Research
(Credit)
(Content) (Electronics)
(...
Tencent In India
16
SchulteResearch
Walmart in China So Far…
Source: Walmart, Statista, Schulte Research
• Walmart entered the Chinese mark...
17
SchulteResearch
Tencent and Flipkart (10 Apr 2017) - $1.4 bn for Amazon of India
Source: Flipkart, Reuters, Techcrunch,...
18
SchulteResearch
Tencent and Ola (11 October 2017) – $1.1 bn for ride sharing app
Source: Ola, Reuters, Medianama, Schul...
Upcoming SlideShare
Loading in …5
×

VF2018: BABA, AMZN, WALMART, TENCENT In India: Turning payments into lifestyle companies (Paul Schulte, Founder and Managing Editor, Schulte Research)

1,520 views

Published on

Schulte Research is an independent research service provided by IND-X Advisors Limited. Paul Schulte has 27 years of experience as an analyst. He has experience in economic policy, sell side research, buy side, and academia. His research integrates analysis of banks and liquidity with corporate credit to get a clear and robust view of equity markets. For more information, visit the company's website at www.schulte-research.com.

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

VF2018: BABA, AMZN, WALMART, TENCENT In India: Turning payments into lifestyle companies (Paul Schulte, Founder and Managing Editor, Schulte Research)

  1. 1. Paul Schulte, MA, MALD Paul@schulte-research.com www.schulte-research.com (+852) 9705 0777 Gavin Liu, CFA – Senior Analyst BABA, AMZN, WALMART, TENCENT IN INDIA: A PETRI DISH FOR A GLOBAL BATTLE IN 020 FIN TECH
  2. 2. 2 SchulteResearch India E-Commerce Overview: Great Growth Potential: Analog India becomes digital Source: eMarketer, Statista, Schulte Research 98% 2% INDIAN RETAIL SALES IN 2017 Physical Stores E-Commerce 10000 20000 30000 40000 50000 60000 70000 80000 2016 2017 2018E 2019E 2020E 2021E 2022E Indian E-Commerce Sales (in Millions of Dollars) Although India’s e-commerce makes up only 2% of the total retail sales in India, it may rise to 50% by 2023. Indian e-commerce sales estimated growth rate in 2018 is 31%. The estimated CAGR from 2018 to 2022 is 23%. By 2022, India’s ecommerce sector will be worth $70 billion. CAGR: 23%
  3. 3. 3 SchulteResearch Alibaba has stake in the biggest online grocer in India: Indian agriculture and groceries has 0 online & 30% of food is lost in delivery. Source: Statista, Reuters, Schulte Research Founded: October 2011 Net Sales: $190 million (2017) Users: 6 million 40% Market Share ~20% Alibaba Stake Alibaba has largest stake Competitors Two competitors command ~30% market share each Huge untapped potential for online grocers Other retail spending Groceries Online Groceries Retail Spending in India (2017)
  4. 4. 4 SchulteResearch Indian Beauty Products: All cash market. Source: Redseer, Schulte Research Market Share 2% 98% Beauty Product Market Share in India Online Offline 33% 27% 25% 13% 12% Online Cosmetic Market Share in India Nykaa Amazon Flipkart Purplle Others • Amazon India is already selling 2 million beauty products across 19,000 brands. $500 mn market
  5. 5. 5 SchulteResearch B. India e-Commerce is growing rapidly, driven by smartphone penetration Source: eMarketer, Schulte Research E-Commerce Sales: ↑42% (#2 Fastest in Asia) CAGR 45.1% $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E Billion(USD) Retail E-Commerce Sales in India Two Key Figures from 2017 72% of E-Commerce from Mobile Phones 1. 2.
  6. 6. 6 SchulteResearch Amazon in India
  7. 7. 7 SchulteResearch Amazon’s Acquisitions in India. Watch Amazon transform Indian agriculture Online Payment Lending Insurance Finance E-Commerce Home Services Agriculture $700 mn May 2018 2015 2016 Apr 2018 May 2018 2015 2016 May 2018 Sept 2017 2015 Publishing
  8. 8. 8 SchulteResearch Amazon India VS Standard Chartered India
  9. 9. 9 SchulteResearch The Amazon moment for banks has arrived: Standard Chartered Stock Price trashed. It’s trading at 0.4 x book. 52 WEEK RANGE: 52.00-94.80 In 2018, it is down 46% from its high Does Standard Chartered have a plan? So far, I think not. India is (was) a $1 bn revenue business. Will Stan Chart suffer the same Amazon fate as B&N, Sears, JC Penney?
  10. 10. 10 SchulteResearch Alipay & Paytm have nearly identical user interfaces: Alibaba gets 250 mn new customers in 24 months with Pay TM Alipay Paytm
  11. 11. 11 SchulteResearch Paytm app covers a comprehensive array of needs for the Indian consumer: Alibaba has migrated to India. Pay TM IS Alibaba in India as of Jan 2019. Source: paytm, Schulte Research Transportation Government Ecommerce Utilities & Bills Entertainment Financial Services
  12. 12. 12 SchulteResearch Paytm Mall brings to India the same hot strategies used by Taobao & Tmall. PLUS, the ease of O2O retail delivery. People want value. Source: Bloomberg Quint, Indian Times, Forrester, Schulte Research Founded: February 2017 Net Sales: $47 million (2017) Users: 80 million Competitors 15% Market Share 57% Alibaba Stake Market Share Uphill battle against Amazon and Flipkart Paytm Mall gained 15% market share in one year BUT Alibaba has proven record of e-commerce success in Asia-Pacific AND
  13. 13. 13 SchulteResearch Walmart in India
  14. 14. 14 SchulteResearch History of Flipkart - NOW Walmart Source: Flipkart, Schulte Research (Credit) (Content) (Electronics) (Delivery) (Fashion) (White Goods) (Advertising) (Remittance) (Payments) (E-Commerce) (Quality Assurance)
  15. 15. Tencent In India
  16. 16. 16 SchulteResearch Walmart in China So Far… Source: Walmart, Statista, Schulte Research • Walmart entered the Chinese market in 1996 under a joint venture • Since 1996, Walmart has opened 424 retail stores in China & 15 wholesale • Walmart China accounts for only 3% of total revenue So what are the reasons for the sluggish growth?
  17. 17. 17 SchulteResearch Tencent and Flipkart (10 Apr 2017) - $1.4 bn for Amazon of India Source: Flipkart, Reuters, Techcrunch, Schulte Research • Flipkart is India’s leading e-commerce marketplace (40% market share) • Tencent participated in Flipkart’s $1.4 Bn funding round (w/Microsoft & eBay in April 2017) • In the same month, Alibaba invested $45 Mn more in Paytm. • Tencent continues to be an investor in Flipkart (6% shareholder post Walmart deal)
  18. 18. 18 SchulteResearch Tencent and Ola (11 October 2017) – $1.1 bn for ride sharing app Source: Ola, Reuters, Medianama, Schulte Research • Ola is India’s leading ride-hailing service, operating in 110 cities • Uber operates in 30 cities • Ola FY17 Total Revenue – $110 Mn USD • Tencent lead Ola’s $1.1 Bn funding round (w/Softbank in October 2017) • Ola money, is Ola’s own payment system • Ola is also investing in AI and machine learning as well as in-car entertainment (Ola Play)

×