E tailing market in india 2014 - sample

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E tailing market in india 2014 - sample

  1. 1. e-Tailing Market – India March 2014
  2. 2. 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. 3. 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. 4. 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 E-TAILING MARKET IN INDIA 2014.PPT
  5. 5. 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-TAILING MARKET IN INDIA 2014.PPT 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. 6. 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 E-TAILING MARKET IN INDIA 2014.PPT
  7. 7. 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 E-TAILING MARKET IN INDIA 2014.PPT
  8. 8. 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 E-TAILING MARKET IN INDIA 2014.PPT
  9. 9. 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 E-TAILING MARKET IN INDIA 2014.PPT
  10. 10. 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 Public: Foreign Company – Player 1. (x/x) E-TAILING MARKET IN INDIA 2014.PPT
  11. 11. 11 SAMPLE Public: Foreign Company – Player 1. (x/x) 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 E-TAILING MARKET IN INDIA 2014.PPT
  12. 12. 12 SAMPLE Public: Foreign Company – Player 1. (x/x) Business Highlights (x/x) Description News E-TAILING MARKET IN INDIA 2014.PPT
  13. 13. 13 SAMPLE • xxx • xxx • xxx• xxx TO WS Public: Foreign Company – Player 1. (x/x) – SWOT Analysis E-TAILING MARKET IN INDIA 2014.PPT
  14. 14. 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 E-TAILING MARKET IN INDIA 2014.PPT
  15. 15. 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 E-TAILING MARKET IN INDIA 2014.PPT
  16. 16. 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. 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/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 E-TAILING MARKET IN INDIA 2014.PPT
  17. 17. 17 SAMPLEKey Recent Developments Description News Private: Foreign Company – Player 1. (x/x) E-TAILING MARKET IN INDIA 2014.PPT
  18. 18. 18 SAMPLE • xxx • xxx • xxx• xxx TO WS Private: Foreign Company –– Player 1. (x/x) – SWOT Analysis (x/x) E-TAILING MARKET IN INDIA 2014.PPT
  19. 19. 19 SAMPLE Consumer Behavior & Preferences: e-Commerce Segments (x/x) e-Commerce Usage Frequency MedLow High Mobile Usage Low HighMed E-TAILING MARKET IN INDIA 2014.PPT xxxxxx xxx xxx xxx xxx
  20. 20. 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 E-TAILING MARKET IN INDIA 2014.PPT
  21. 21. 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 E-TAILING MARKET IN INDIA 2014.PPT
  22. 22. 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 E-TAILING MARKET IN INDIA 2014.PPT
  23. 23. 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: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and prior permission is required for guidelines on reproduction. Phone: +91 22 4098 7600 E-Mail: info@netscribes.com Follow us on: E-TAILING MARKET IN INDIA 2014.PPT

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