Web Exclusive Brands - Session By Vijay Kumar Misra, Founder , DonebyNone
WEB EXCLUSIVE BRANDS
SCOPE• What is WEB• Why adopt WEB strategy• Success matrixes• Challenges• Opportunity
WEBWeb Exclusive Brand is one that sells uniqueproducts online• Web Exclusive : Selling only online.• Unique Products: Pvt label /not available elsewhere attempts to create a monopoly of sorts
WHY GO WEB ROUTE?To answer this lets examine the evolution offashion ecommerce in India
IT ALL BEGAN WITH…The “GILT” Model -• Back-stock liquidators / supply?• Consumer proposition - deep discounts• COD – the additional greaseNo risk proposition lead to trial, but little repeat
FOLLOWED BY..The Retailer Model:• Consumer Proposition – accessibility• Multi Brand Retail• Fresh seasonal goods• Consumer cocaine – discounts & free shippingDelivered top-line, cash-burn but still no loyalty
THE PROBLEM..?Business not sustainable• Low Gross Margins• High Discounts• Negative Net Margins• High COA• Poor repeat / loyalty Each transaction led to more cash burn!
THE WISH……….a business model that compels consumersto return again and again & shop at full price Win customer loyalty without discounts; how?
THE MAGIC RECEPIERecipe: Loyalty on the rocks• Unique / fab merchandise……….60 cl• Spin a Brand story...………………20 cl• Value equation…………………….20 cl• Discounts ………………………….Skip Stir (don’t shake) - gets them helplessly loyal
ENTRE WEB The Brand route to create the helplessly loyal consumer • Focus on a sharp TG segment • Invest in Brand positioning & imagery • Bring focus to consumer experience • Offer unique and desirable merchandise • Value pricing and build lasting values
THE CHALLENGESFrom trading to full value chain• Design & manufacturing• Building a brand• Investment in inventory• High COA due to targeting• More difficult to scale Its like doubling the odds of failure!
WHAT HELPSOnline business is real business too – get yourfundamentals right:• Founding team must bring all key skills & experience• Get the consumer facing proposition right• This is not a valuation game• Investor is patient & yet allergic to burns• Timing is right• Lady luck supports It’s a long haul & there are no short cuts
SUCCESS MATRICESWEBs = Destination shopping = high performance• Conversion Rate• Repeat• WOM - Organic traffic• Minimum discounting• Gross & Net margin Makes good business sense
FINALLYWEB suitable:• For Fashion & Lifestyle segment• When Founders have the skill & passion• When scale at any cost is not the game• When bottom-line is as important….• When quick multi-million $ exit is not core When you are in business for the right reasons!