Building Sustainable Internet Retail Enterprise                Sandeep Aggarwal                 Founder & CEO
What is ShopClues.com    I dia’s first a d largest a aged arketplace with a platfor approach,   empowering brands and reta...
Why ShopClues.com? Sellers                                        Buyers 1.   Your own branded online store – manage    1....
E-Commerce Opportunity is Now1.   India is now the 3rd largest country in terms of Internet population but not revenue    ...
India E-Commerce is Currently at Where Chinawas in 20031. India retail will likely touch $1trillion by 2020 and at 6% pene...
E-Commerce Outlook for India HighlyEncouraging                                                         India E-Commerce Ou...
Building sustainable Internet Retailenterprise1.  Take a long-term approach2.  Create a start-up culture3.  Be ready for c...
Take a long-term approach1. Are you ready for a minimum of 3-5 years of   commitment?2. Nothing is going to change overnig...
Create a start-up culture1. Infuse entrepreneurial zeal and passion2. No comingling with your existing business3. Ability ...
Be ready for capital investments phase1. Unless your are a very large retailer or brand, building   Internet retail is not...
Many offline problems will persist and be  ready for new set of problemsThings do not change with the Internet1. Sourcing2...
Solve fundamental issues1.   Focus on customer value proposition2.   Be data driven3.   Supply chain has to be streamlined...
Be metric drivenIf you can not measure, you can not control1.    Traffic2.    Conversion3.    Items in basket4.    AOV5.  ...
Harness your core competencies &  competitive advantage1.   Sourcing legacy2.   Up and running business3.   In-store pick-...
Understand E-Commerce basics  Technology      Retail       Operations
Do not under estimate marketing cost1. Be ready to loose money on 1st order, barely break-   even on 2nd, and perhaps make...
Know the power of scale1. Allocating resources in anticipation is never easy2. Unit cost will be highly unattractive until...
Thank You!!Sandeep Aggarwal, Founder and CEOsandeep@shopclues.comFor your online store at ShopClues.comwww.Shopclues.com/s...
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Building Sustainable Internet Retail Enterprise - Keynote Session by Sandeep Agarwal, Founder Shopclues.com

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Keynote Session by Sandeep Agarwal at Internet Retail Expo 2013: 4th Edition of India's Largest Internet Retail Show.
Official Event Website: http://www.internetretailexpo.com

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Building Sustainable Internet Retail Enterprise - Keynote Session by Sandeep Agarwal, Founder Shopclues.com

  1. 1. Building Sustainable Internet Retail Enterprise Sandeep Aggarwal Founder & CEO
  2. 2. What is ShopClues.com I dia’s first a d largest a aged arketplace with a platfor approach, empowering brands and retailers to exploit the E-Commerce opportunities • Category, product, price, and brand agnostic Customer Care• Among the top 5-6 Largest E-Commerce company in India and the fastest growing• Company started out of Silicon Valley; operating in India for 12 months• World-class team with 75 years of combined experience in E-Commerce, Internet, and retail• 4million+ monthly visitors; 6k+ merchants, 2k+ brands, 800k+ Facebook Fans
  3. 3. Why ShopClues.com? Sellers Buyers 1. Your own branded online store – manage 1. Great selection anytime, anywhere on any device 2. Low price 2. Access to millions of online shoppers 3. Fast delivery 3. A ready to deploy E-Commerce Technology platform with full suite of E-Commerce 4. Reliable sellers services 4. Effective, low cost, and scalable 5. Authentic brands 5. Pay only when you sell 6. Outstanding customer services 6. Focus on your core competencies, leave the heavy lifting of E-Commerce on us
  4. 4. E-Commerce Opportunity is Now1. India is now the 3rd largest country in terms of Internet population but not revenue top-10 for E-Commerce2. E-Commerce has only 0.1% penetration3. India hit the tipping point for the E-Commerce adoption in 2010 and next 10 year the market can be 120x bigger – $10bn by 2015 (Rs. 50k Crores) and $60bn by 2020 (Rs. 3 Lacs Crores)4. Income levels going up, median age 25, Internet adoption widening but accessibility remains a problem5. The occupancy cost for brick and mortar retail is one of the highest in the world with not abundant organized retail space6. Inherit E-Commerce benefits : very scalable, 24/7, 365 days, wider reach, better inventory management, low capital expenditure, better margins
  5. 5. India E-Commerce is Currently at Where Chinawas in 20031. India retail will likely touch $1trillion by 2020 and at 6% penetration (where China was in 2010), the E-Commerce will touch $60bn in India2. If India were to see E-Commerce adoption like China, India can reach $60bn in GMV by 2015-16
  6. 6. E-Commerce Outlook for India HighlyEncouraging India E-Commerce Outlook ($bn.) Penetration from 0.1% to 6.0% by 2020 (65% CAGR)1. In our view, in India E-Commerce is where US was in 1999 and China was in 20042. India E-Commerce is in 1st phase with no player over $150mm in GMV (vs. in US, where eBay has $32bn and Amazon has $28bn)3. No pure play fully managed marketplace in India currently4. We believe that the online shoppers in India will likely go up by 10x from 8mm currently to 80mm and average spend per shopper will go up 5x from $50 to $250 by 2016-175. E-Commerce in India is leap-frogging the organized retail revolution
  7. 7. Building sustainable Internet Retailenterprise1. Take a long-term approach2. Create a start-up culture3. Be ready for capital investments phase4. Many offline problems will persist and be ready for new set of problems as well5. Solve fundamental issues6. Be metric driven7. Harness your core competencies & competitive advantage8. Understand E-Commerce basics9. Do not under estimate marketing cost10. Know the power of scale
  8. 8. Take a long-term approach1. Are you ready for a minimum of 3-5 years of commitment?2. Nothing is going to change overnight and offline will re ai your fa ily Mercedes1. Do not be afraid of making mistakes
  9. 9. Create a start-up culture1. Infuse entrepreneurial zeal and passion2. No comingling with your existing business3. Ability to attract talent
  10. 10. Be ready for capital investments phase1. Unless your are a very large retailer or brand, building Internet retail is not cheap2. Are you ready for long-term capital investment?
  11. 11. Many offline problems will persist and be ready for new set of problemsThings do not change with the Internet1. Sourcing2. Supply chain3. Inventory riskNew problems with Internet1. COD2. Higher returns3. Pricing pressure4. Unchartered territory on many fronts e.g. marketing, payments, delivery
  12. 12. Solve fundamental issues1. Focus on customer value proposition2. Be data driven3. Supply chain has to be streamlined4. Payment issues are resolved5. Return policies are addressed6. Packing and delivery experiences is world-class
  13. 13. Be metric drivenIf you can not measure, you can not control1. Traffic2. Conversion3. Items in basket4. AOV5. Direct Cost6. CPA7. Cohort8. SLA9. Thru-put10. Other indirect expenses
  14. 14. Harness your core competencies & competitive advantage1. Sourcing legacy2. Up and running business3. In-store pick-up4. Customer acquisition5. Brand6. Network7. Economy of scope
  15. 15. Understand E-Commerce basics Technology Retail Operations
  16. 16. Do not under estimate marketing cost1. Be ready to loose money on 1st order, barely break- even on 2nd, and perhaps make money on 3rd2. Digital marketing mix is not cheap3. Buyers have no loyalty
  17. 17. Know the power of scale1. Allocating resources in anticipation is never easy2. Unit cost will be highly unattractive until you achieve scale3. Capacity planning will be challenging
  18. 18. Thank You!!Sandeep Aggarwal, Founder and CEOsandeep@shopclues.comFor your online store at ShopClues.comwww.Shopclues.com/sellSell@shopClues.com

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