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online india shopping for unusual handmade clothing gifts jewelry

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India online Shopping for Handmade Gifts Unusual from Indian Culture - India Jewelry, Indian Clothing, Statues and Sculptures of Hindu Gods.

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online india shopping for unusual handmade clothing gifts jewelry

  1. 1. ShalinIndiaWe bring a range of high quality products of India at a fairprice to customers worldwide, using trusted localmarketplace platforms for shopping, and efficient globallogistics infrastructure for delivery.1
  2. 2. Company ProfileTeam Profile• Shalini Verma – BA, Founder of ShalinIndia. Merchandizing Head• Sanjay Kumar – MBA, France. 16 years in telecom and IT• Vinay Sewal – MBA, IIM, 10 years in operations management• Louis Proton – Masters, Polytechnique, France• Birgit Gairola – MSc in Business, Germany• Sidney Harvey – MBA, Washington University, US• Namrata Sandhu – B.A. Honours Spanish language, Denison US / Madrid UniName and Contact Details of the CompanyShalin Impex Pvt Ltd, A8 / 8 DLF phase 1, Gurgaon 122002, Haryana, INDIASanjay Kumar - 9810080367Current Revenues & Key Customers/Markets –– US$ 550,000 in FY 2011, Estimated $ 2 million in FY 2012– US, UK, France, Germany, Spain and Japan – online customers2
  3. 3. Need• Global customer needs & how they are met currently– Google search analysis reveals people in developed markets searchingfor Indian products – clothing, jewelry, decor, books, and films– Currently such customers buy from local boutiques who have verylimited range and charge high prices; often not conveniently located– Or, they buy online from merchants from India - pay high shippingcost with long delivery period, besides dealing with uncertain customscharges, difficult return and refund methods, receiving orders throughcourier (without invoices or as falsely declared low value item)• Target customers and market potential– People in the age group of 25 to 60 in highly developed ecommercemarkets – US, UK, France, Germany, Spain and Japan; reaching out to400 million confirmed customers on marketplaces– Large number of small boutiques wanting to sell Indian products3
  4. 4. Value PropositionOur offering– We sell products from India – clothing, jewelry, tableware, sculpture andart, home décor, photos & images, books, music cd, music instruments,games, and film dvds to global customers– We sell not only to English speaking customers, but also to French,German, & Japanese customers (Spanish and Italian to follow soon)How does our offering solve the problem?– Customers shop on their trusted local ecommerce marketplace platformswith proper guarantee from platform owners– Items go online only after customs clearance in different countries; alllisted items are available in inventory; free standard shipping from localwarehouses, delivery in 3 days; local returns and local customer supportin local language– Watch video: http://www.youtube.com/watch?v=FhJ7isAD-qk4
  5. 5. CompetitionCompetitors and their offeringsNovica Corp – Sells collectibles in the US, store & marketplacesExclusively.in – Sells ethnic Indian fashion items in the US and UKVishal Jewelry – Dominates Indian jewelry market in USFabindia – Big potential threat in the future in all the marketsHow is our solution better than competition’s?– Product range much larger, universal products with Indian feel– Selling in France, Germany, and Japan too. Spain & Italy to follow– Control delivery experience for customer – stock inventory to ensurefulfillment of all orders and restrict defect rates & pre fulfillment ordercancellation rate to 0.5%; return rate 3%; globally distributedinventory enables free shipping with delivery in 2-3 days; all itemscustom cleared before going online; payment in local currency, localreturn, and local customer support in local language5
  6. 6. Business Model• How do we plan to make money?– Multi channel sales, and fulfillment from the same inventory acrosschannels – Amazon, EBay, and our branded stores; accessingdeveloped markets – US, UK, France, Germany, Spain, and Japan– Additional revenues likely from wholesale to boutiques on ourbranded store, with local sales support. Boutiques that can not affordto import from Indian exporters that insist on high MOQ• How we price products– Products carefully selected for high sales velocity; apply multiplefactor of 4 or 6 on CP. Net margin of 45 to 50% on SP. Some easilyavailable items used as loss leaders to meet competition. After 90days on virtual shelf, start selling on discount, or auction on eBay.– 67% discounted price to boutiques, and retain 40% margin on SP (nocommission for platform owners and no local distribution cost)6
  7. 7. Sales and Distribution• How we reach out to consumers– We list products on local marketplace platforms in different countries,thus accessing platform’s own customers (around 400 million)– Use multi lingual blogs, ads on local searches, data feeds on localshopping engines, local directory submission, and press releases– Rely on viral marketing by satisfied customers; special discounts tofriends and family; some customers write reviews on our products– Keep inventory in globally distributed warehouses according todemand in each country; collaboration with Amazon in US, Europe (26countries) & Japan; Amazon manages our inventory and executes localdistribution (pick, pack, ship) of not only orders coming from Amazonmarketplaces but also orders coming from other channels. Looking atoptions beyond Amazon for local warehousing and fulfillment,particularly in countries where Amazon is not present7
  8. 8. Financials• Current revenues, variable costs, operating profits and net profits?– FY 2011 – US $ 550,000– Variable cost – 55%– Operating profit - $ 30,000– Net profit - $ 20,000– Above data is from returns filed with Indian Income Tax• Projections for next 3 years on current cash flow based self financing– FY 2012 – 1.5 M$ (est.)– FY 2013 – 6-8 M$– FY 2014 – 25 M$– FY 2015 – 80 M$• When does your venture break even? When does it start making profits?– Broke even in FY 2011; Cumulative break even in FY 20128
  9. 9. Investment Rationale• Our immediate funding requirements– US $ 4 million• How we plan to use the funds?– Build-up of inventory of high selling item; shipping these to foreignwarehouses; in-house marketing & IT team and systems; Brand building viabanner advertising, social media, press releases, PPC, shopping comparisonengines to enable sales from branded stores.• What justifies an investment in our venture?– Profitable working business model; 40,000 sales executed; have exceeded allcustomer metrics benchmarks; high barriers to entry, as new entrants need 2years to build sales velocity in social media based marketplaces; legalcompliances in different countries; understanding of business culture,particularly in non-English speaking countries• Exit strategy for the investor– Sell (partial or full) to strategic investors (Indian enterprises interested inexport business) to build a new channel and markets for their products9
  10. 10. Additional Information• Local partners in different cultures for selecting products, content writing,customer support, and local legal compliances• Set up wholly owned subsidiary in the US; filed US tax return for 2011• Arranged with HSBC in Europe to remit rupees to India for all transactionsin Pounds and Euros and comply with European business regulations• Appointed an agent in Japan (holding license from the Japanesegovernment), to enable lawful import of our products in Japan, collectsales revenue, maintain joint bank account, and send remittance to India• Acquired local URL extensions in Japan, Korea, China, Spain, Italy, France,and Germany through a trusteeship arrangement with an internationallaw firm. In 2013, we plan to sell through our branded stores in thesemarkets• Shipments in commercial mode so that inward remittances are legal• Watch ShalinIndia video: http://www.youtube.com/watch?v=FhJ7isAD-qk10

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