This is an Industry Project presentation on emerging e-Tail companies of India. The project contains Business Models of 4 emerging e-tail companies namely Teabox, Urban Ladder, Lenskart and Big-Basket

1. LOGO
Overview of e-tail in India
Emerging E-tailing Business
Kaushik PKN

2. Contents
Objective
Overview of Retail Industry
Online Retail in India
Emerging e-tailing Companies
Conclusion
2

3. Objective
Study emerging online retail companies
Identify their growth drivers
SWOT Analysis of those companies
Future prospects of these companies
3

4. Overview of Retail Industry
All businesses that sell goods and services to
consumers fall under the umbrella of retailing
Shops may be on residential streets, streets with
few or no houses, or in a shopping mall
One of the pillars of Indian Economy with an
annual turnover of $ 500 billion
3 types of Retail Businesses
 Unorganised Retail
 Organised Retail
 Online Retail
4

5. Unorganised Retail
It is estimated that over 95% of retail in India is
done through the unorganized sectors
Many of unorganised retailers are not registered
and they do not pay sales tax, income tax or
VAT
5

6. Organised Retail
Beginning in the mid- 1990s, there was an
explosion of shopping malls and plazas
Customers’ requirements are catered to by
trained staff
Organized retailing has become an experience
characterized by comfort
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7. Online Retail
Online Retail is the new concept that is gaining
popularity in India
It all started with flipkart coming up with online
selling of books in India
Their success inspired them and competitors to
enter to other sectors
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8. Growth of Online Retail
New Concept
gaining
popularity in
India
Flipkart came
up with selling
Books Online
Its success
inspired them
& Competitors
to enter to
other sectors
8

9. Problems of Big online retailers
Big
Online
Retailers
Losses
Consolid
-ation
Predat
-ory
Pricing
Losses
• Big Players are not
making profits
• Surviving on
Investors Money
Consolidation
• Companies are
hoping to
consolidate their
position with
investors’ backing
• This Business Model
doesn’t encourage
co-existence
Predatory Pricing
• Pricing products
lower than cost
• Not good for overall
economy
9

10. Emerging Online Retailers
Now, comes the new set of Online retailers
targeting niche market segments
They are not thriving least price model but with
innovative products and top of the line
technology
They don’t fear competition and are actually
operating in profits
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11. Parameters for Selection
Should target niche market segment
Smaller Area of Expertise
Should not depend on death of
Competitors for survival
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12. 12

13. Teabox - Introduction
 Founder - Kaushal Dugar started the company with the
vision to provide the best Tea to his customers
 It takes at least 5 to 6 months for the produced Tea to
reach the customer
 Tea is sourced directly in their place of origin and
packaged within 48 hours of production
 Tea was then delivered to consumers by using courier
services of Fedex and Bluedart
13

14. Teabox - Funding
•Seed
Funding of
$1 million
from Accel
Partners
•Accel has
previously
invested in
companies
like Rovio,
Dropbox &
Spotify
•Teabox
hopes to
rise $5-$10
million in
2nd round of
funding &
expand to
Russia,
China,
Japan etc.,
14

15. Teabox – Business Model
 Sourcing – Established warehouses at source of tea
production, enabling packaging within 48 hours of
production
15

16. Teabox – Business Model
 Logistics – Third party courier services like Fedex and
Bluedart
 Marketing - Customer can see the garden of origin, time
of bloom and date of plucking as done by vineyards
16

17. Teabox – Business Model
Based on prediction, along with
customer’s ordered
consignment
Customer
Orders
Analytics
Algorithm
Sample
Sent to
Customer
Customer Browses the site and
orders a tea flavour of his choice
Algorithm based on analytics
predicts customer’s next
choice – Success Rate – 90%+
Technology – Extensive use of technology, the
company is run like a tech company
17

18. Teabox – Business Model
0.25%
40.00%
59.75%
Market Size
Tea Box
Branded Tea
Others
18

19. Teabox SWOT Analysis
Strength Weakness
SWOT
Analysis
OpportunityThreat
•No sampling is
done which is a
must, for
exporting
•A big Industry,
with no clear
market leader
•No competition
with same
positional
statement
•Scalability of the
business model
•Sourcing
•Technology
•Innovative
Marketing strategy
19

20. Teabox – Future Trends
Expand same
Business Model
To Cereals
& Spices
Establish
Warehouse
In Europe
Grab 5% of
the $ 40 Billion
Tea Market
Growth Road map
Following are the fields Teabox is
concentrating for Expansion
20

21. 21

22. Bigbasket - Introduction
 Founders - V S Sudhaken, Mr. Hari Menon, Mr. Vipul
Parekh, Mr. Abhinoy Choudhari and Mr. V S Ramesh
 The founders had previously started online grocery shop
Fabmart, which was later expanded to physical retail
chain Fabmall
 After its acquisition by Aditya Birla group in 2006, they
reassembled and started Bigbasket.com in 2011
22

23. Bigbasket – Business Model
Sourcing
When they start,
they follow Just-in-
time model
After establishment,
they buy from
manufacturers and
maintain Inventory
23

24. Bigbasket – Business Model
 Logistics – Warehouse each in Bangalore, Hyderabad
and Mumbai, as well as hubs
 Goods are sent to hubs and from there, to customers
 The routing is done automatically and the vehicles are
GPS-tracked.
 They use analytics to predict weekly demand so that the
company can optimise logistics and supply volumes to
drive better margins
24

25. Bigbasket – Business Model
 Advertising – They don’t spend much on Advertising
 They go to apartments, organise events, convert a
couple of residents as their consumers
 Then, they expand by the positive word of mouth
 They advertise in websites like Justdial etc.,
 Other than these, the other Above the Line advertising
they do is by Radio
25

26. Bigbasket – Funding
26
Mar-2011 Mar-2012 Sep-2012
Mar-2013
Seed Funding - $1.1
Mn+ by Mr & Mrs.
Ganesh Krishnan
Operations started in
Bangalore with this
funding
$10 Mn funding by
Accent Capital
Expanded to Mumbai
& Hyderabad
Expanded to NCR-
Delhi & Chennai
Introduced Auto-fill
feature based on data
analytics
Was processing 10000
orders/month with average billing
amount of Rs.1200
$3 Mn of funding from
Lion rock capital
Sep-2014
$32.8 Mn of funding
led by Zodius capital,
ICICI venture & Helion
partners
Dec-2014
Expanded to Pune &
plans to expand to 10
cities by Dec-2015
At the time of latest
round of funding
Bigbasket was valued
at $160 Mn

27. Bigbasket SWOT Analysis
Strength Weakness
SWOT
Analysis
OpportunityThreat
•Big retail brands
are opening
Online portals
•Increased
Smartphone
penetration
•Generous funds
from Investors
•Problems with
delivery system
•Delyver
acquired to solve
this
•Led by pioneers of
E-Commerce in
India
•Sourcing directly
from Producers
27

28. Future Trends
Increase the
Number of
In-house
Brands to
Increase margins
Improve
Technology
For delivery
& free-up
Delivery boy
Expand in all
Metros
Growth Road map
Following are the fields Bigbasket.com is
concentrating for Expansion
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29. 29

30. Lenskart - Introduction
 Founders – Peeyush Bansal, Amit Chaudhary and Sumeet
Kapahi started the company with the vision to simplify the
process of buying eye-wear
 Lenskart is a well-defined company, which talks about
simplifying the shopping experience by going to the
consumer's doorstep
 Offers a great variety of eyewear, encouraging ownership of
multiple eye-wears
 They have kept things as lean as possible, with only one
warehouse
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31. Lenskart – Business Model
 Lenskart follows an inventory-based business model
 Respective teams select and stock goods in the
Lenskart warehouse and put them on the portal
 The vendors themselves manage logistics and delivery
for all the brands
 Lenskart earns around 45% of revenue by selling its
flagship Lenskart brand products
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32. Lenskart SWOT Analysis
Strength Weakness
SWOT
Analysis
OpportunityThreat
•Indian public is
still not open to
purchase eye-
gear online
•Trust deficit on
testing personnel
•They can offer
unlimited varieties
to customers with
their lean
operational model
•Lack of trust in
its Business
model in Tier-2
and Tier 3 Cities
•No big Competitor
•Advanced and
Patented
Technology usage
32

33. Future Trends
Expand in Tier-2
And Tier-3
Cities
Own delivery
System since
Eye-wear is
a delicate item
Improve
Customer
Service
Growth Road map
Following are the fields Lenskart.com is
concentrating for Expansion
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34. 34

35. Urban Ladder - Introduction
 Founders - Ashish Goel and Rajiv Srivatsa started the
company with the vision to provide curetted destination
for home solutions
35
6%
93%
1%
Market Share
Organised Market
Unorganised Market
Urban Ladder

36. Urban Ladder – Investments
 In May 2012, it had raised $1 million in angel funding from
Kalaari Capital
 Urban Ladder raised $5 million in the second round of funding
from Saif Partners
 Urban Ladder has raised 21 million in Series B round of
funding led by Steadview Capital along with existing investors
SAIF Partners and Kalaari Capital
 Ratan Tata, Chairman Emeritus of Tata Sons has also made
a personal investment in Urban Ladder
36

37. Urban Ladder – Business Model
 Sourcing – vendors in Jodhpur and Jaipur in Rajasthan,
as well as from the cities where it delivers
 Logistics – Urban Ladder delivers products themselves
 They make it a point not to use third party logistics,
because they feel this damages customer service
 Delivery teams are led by women to ensure proper
installation
37

38. Lenskart – Business Model
 Designing – Urban Ladder has an in-house team of
experienced designers for designing furniture
 Technology – Separate team to maintain website
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39. Lenskart SWOT Analysis
Strength Weakness
SWOT
Analysis
OpportunityThreat
•Non dependency
on third party
logistics,
detrimental in
initial stages
•Intense
Competition
•A big Industry,
with no clear
market leader
•No threat of
acquisiton
•Imminent entry
of IKEA to Indian
Market
•Customer
Engagement &
Web Experience
•Low Marketing
Cost
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40. Future Trends
Brace for the
Competition
From imminent
Entry of IKEA
Improve
Market share
By targeting
Unorganised
sector
Expand its
Operations to
Tier-2 & tier-3
cities
Growth Road map
Following are the fields Urban Ladder is
concentrating for Expansion
40

41. Conclusion
The Emerging companies do not depend on
least pricing for attracting their customers
They use technology to drive their growth
All the companies have the trust of investors
and are getting huge funding
All the above companies are achieving
operating profits, something not achieved by Big
players in Online Business
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42. Bibliography
Wikipedia.com
Investopedia.com
Teabox.com
BigBasket.com
Urbanladder.com
Lenskart.com
Forbes.com
Techcrunch.com
Hindustan Times
Accel.com
Times of India
Hindu
Flipkart.com
Snapdeal.com
Amazon.com
eBay.com
Olx.com
Yourstory.com
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43. LOGO