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Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B entities via mobile devices. Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats. With growing numbers of mobile devices and mammoth wireless subscriber base, the focus is slowly shifting to mobile platforms. Leveraging on enhanced reach like MVAS and diverse features like of e-commerce, m-commerce is poised for greater adoption acrossIndia, in the coming years.
Although mobile commerce market inIndiais in nascent stage, m-payment and m-banking segments have shown significant growth over the last few years. Initiative taken by the government and financial organizations to reachIndia’s un-banked population can ensure tremendous growth in the latter segments. There are around 600,000 territories that require banking facilities but only around 89,000 bank branches are there in the country.
2. Executive Summary
•Classifieds market in India was valued at INR xx bn in 2011 and comprises of two segments:
Online Classifieds which accounts for INR yy bn
Market Offline/Print Classifieds accounts for INR zz bn
Overall classifieds market in India will be driven by the growth in services sector, favorable
demographics and growth in advertising industry
Drivers: Challenges:
– Increasing internet penetration – Language barrier
– Cost effective advertisements
– Online payment mechanisms
– Growth in online advertising
Drivers & – Favorable demographics
– Low scope for advertisements
Challenges – Low visibility and coverage
– Growth in the services sector
– Growth in print media
– Vernacular presence
– Growing circulation and customer base
•Emergence of mobile classifieds
•Value added services
Trends •New ventures in online space
•Emergence of local classifieds
Online Players Offline Players
Competition Consim Info Infoedge Monster D B Corp Bennett, Coleman & Co Jagran Prakashan
Quikr OLX Sulekha HT Media Deccan Chronicle Lokmat Media
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 2
3. •Market Introduction
•Market Overview
Classifieds Market – India
Online Classifieds
Offline Classifieds
•Business Model
•Revenue Model
•Drivers & Challenges
•Trends
•Major Players
Traffic Statistics
•PE Investments
•Recent Developments
•Strategic Recommendations
•Appendix
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 3
4. Classifieds are increasingly becoming a popular mode of
SAMPLE
advertisements for both online and offline space
Classifieds Market – Introduction
Classifieds is a distinct type of advertising medium with both online and offline modes
• Advertisements are grouped under headings classifying the products or services being offered
• Cheaper than larger display ads and mostly placed by private individuals with single items to buy or sell
• Usually comprise text with no graphics and short statements about the requirements of buyer or seller
Classifieds – Segmentation Classifieds – Types
Classifieds
General Recruitment
Online Classifieds Offline Classifieds
Others Classifieds Matrimonial
• Comprises of extensive ad • Newspapers comprise the
space and structure major part of this segment
• Longer messages and use • Ads are typically short and
of graphical text are charged/word
Real Estate Automobiles
• Wider scope for searches • Mainly text with no graphics
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 4
5. Online classifieds is expected to grow faster than the offline
segment
Classifieds Market – Overview Classifieds Market – Size and Growth
• Classifieds market comprises of two segments: INR bn
Online Classifieds a
Offline/Print Classifieds
LE
• Classifieds market is witnessing a change in the share
of market segmentation
b
c
Xyz%
MP
With growing internet usage, print classifieds market faces
stiff competition as the online segment posts rapid growth
d
e
A
• Online classifieds segment is growing rapidly and is 0
S
attracting many small and big players 2011 2012e 2013e 2014e 2015e 2016e
Players are venturing into new market segments to offer
differentiated services Classifieds Market – Segmentation
• Offline classifieds continue to operate with their
A1 B1
traditional models and target niche audiences
• Overall, the classifieds market in India will be driven
by the growth in services sector, favorable
demographics and growth in advertising industry 43.8% 46.9%
62.7% 53.2%
Note:
• Online classifieds market includes recruitment, matrimonial, automobile
and real estate classifieds
• Offline classifieds market includes newspaper classifieds 2011 2016e
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 5
6. Online classifieds operate on a business model that
SAMPLE
integrates both advertisers and consumers
Online Classifieds – Business Model
Registration/ Membership
The modus operandi of the online classifieds business initiates with a registration with the respective portal and paying the
required membership fees upfront to become a registered subscriber
Advertiser Consumer
xxx aaa
xxx Classifieds act as a aaa
Classifieds act as a
medium between
medium between
the advertisers and
the advertisers and
final consumers
final consumers
xxx aaa
xxx aaa
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 6
7. Offline classifieds have a revenue structure which is
determined by the advertisement costs
Offline Classifieds – Revenue Model
SAMPLE
Offline classifieds or newspaper classifieds, have a revenue structure that is primarily determined by various factors
associated directly with the costs of the classified advertisements
Newspaper classifieds
account for 10‐15% of a Ad Size xxx
newspaper’s total ad
revenues
Ad Style xxx
At roughly 25% margins,
they are more profitable
than display
advertisements
Edition xxx
Agencies also provide
assistance for classifieds
advertising in lieu of
Area Coverage xxx
some charges
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 7
8. Drivers – Summary
Online Market
SAMPLE Offline Market
Common Drivers
Drivers Drivers
• Increasing internet • Growth in print
penetration media
• Favorable
demographics
• Cost effective • Vernacular
advertisements presence
• Growth in the
services sector
• Growth in online • Growing circulation
advertising and customer base
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 8
9. Low presence of vernacular languages in online medium
poses a barrier for online classifieds market Online Offline
Language barrier Impact
• Non‐availability of vernacular languages in online classified space poses a barrier as the target
consumers get restricted to the literate population only
LE
• However, online advertisements in regional languages such as Hindi, Tamil, Telugu and
P
Malayalam outperform English ones
Indians respond better to regional language ads as compared to English ads, by almost 30%
services and choose newspapers instead
S M
• Non familiarity with English alienates many people from using online media for classifieds
A
• Absence of online classifieds in regional languages acts as a major challenge for the online
classifieds market in India
Preference of Language of Internet Users Urban Literacy Levels in India
English Literate Non English Literate
English
Total Urban
28%
Population
Internet Users in of India– 266 mn 42%
India – 49 mn Vernaculars
72%
Urban 58%
Literate
Population‐
217 mn
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 9
10. Major Public Companies ‐ Summary
Net Profit/Loss
4,000
Size of the Bubble represents Market Capitalization in INR mn
3,500
3,000
57,820.7
2,500
2,000
1,500
7,328.5
27,120.0
36,111.7
26,322.4
P LE
M
1,000 40,124.0
500
0
‐500
S A
‐1,000
‐5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000
Total income
a b c d e f
Note: All figures are in INR mn and are based on the latest financials available
10
11. Public: Domestic Company – Company Abc. (x/x)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol Bhopal
Stock Exchange
Head Office
Products and Services
Category Products/Services
LE Key People
MP Name Designation
SA Note: The list of products and services is not exhaustive
11
12. Financial Snapshot
SAMPLE
Public: Domestic Company – Company Abc. (x/x)
Key Ratios
y‐o‐y change
Total Income Net Profit/Loss Particulars 2012 2011 2010 2009
INR mn INR mn (2012‐11)
a a Profitability Ratios
Operating Margin ‐7.19 20.64% 27.83% 27.84% 12.32%
b b Net Margin ‐6.53 13.71% 20.24% 16.13% 3.65%
Profit Before Tax Margin ‐7.70 20.36% 28.06% 25.88% 7.96%
c c Return on Equity ‐10.14 21.06% 31.20% 26.77% 13.27%
Return on Capital Employed ‐5.59 26.68% 32.27% 30.88% 15.31%
0 0
Return on Working Capital 21.88 98.17% 76.28% 58.89% 36.50%
2009 2010 2011 2012 Return on Assets ‐6.00 13.10% 19.10% 14.08% 3.28%
Financial Summary Return on Fixed Assets ‐11.34 25.50% 36.84% 28.72% 5.95%
Cost Ratios
• The company incurred a net profit of INR xxx mn in FY 2012, as Operating costs (% of Sales) 7.43 79.20% 71.77% 71.47% 87.37%
compared to net profit of INR xxx mn in FY 2011 Administration costs (% of
‐12.91 0.00% 12.91% 12.32% 12.05%
• The company reported total income of INR yyy mn in FY 2012, as Sales)
compared to INR yyy mn in FY 2011 Interest costs (% of Sales) 0.00 1.06% 1.06% 3.24% 4.22%
Liquidity Ratios
• The company earned an operating margin of 20.64 per cent in FY
Current Ratio ‐35.51% 1.51 2.34 2.12 1.33
2012, a decrease of 7.19 percentage points over FY 2011
Cash Ratio ‐22.47% 0.58 0.75 0.81 0.23
• The company reported debt to equity ratio of 0.61 in FY 2012, an Leverage Ratios
increase of 4.11 per cent over FY 2011 Debt to Equity Ratio ‐4.11% 0.61 0.63 0.90 3.04
Debt to Capital Ratio
Key Financial Performance Indicators ‐18.40% 0.18 0.22 0.33 0.68
Interest Coverage Ratio ‐26.58% 19.59 26.68 8.81 2.99
Indicators Value (dd/mm/2012) Efficiency Ratios
Market Capitalization (INR mn) 36,111.70 Fixed Asset Turnover 2.87% 1.85 1.79 1.74 1.59
Total Enterprise Value (INR mn) Asset Turnover 1.92% 0.95 0.93 0.85 0.88
36373.2
Current Asset Turnover 12.84% 2.40 2.13 1.88 2.40
EPS (INR) 11.01 Working Capital Turnover 91.25% 7.10 3.71 3.56 9.76
PE Ratio (Absolute) 17.62 Capital Employed Turnover 0.30% 1.52 1.52 1.62 3.55
Improved Decline
12
13. Public: Domestic Company – Company Abc. (x/x)
Key Business Segments
SAMPLE Key Geographic Segments
Printing Event Corporate India
Radio Others 14,638
150% 100%
100% 1% 1% The company has operated in
50% 96% 0% 95% 0% 95% 0% 95% 1% 50% India for the last four years
0% 0% 0% 0%
0% 1% 3% 3% 1% 4% 4%
‐50% 0%
2009 2010 2011 2012 2012
Key Recent Developments
Description News
Overview • xxx
Readership • xxx
Businesses • xxx
Note: Business Segments and Geographic Segments are based on total revenues
13
14. Major Private Companies ‐ Summary
Net Profit/Loss
900
800
Size of the Bubble represents Total Assets in INR mn
700
600
500
LE 1,329
Times Business Solution
400
300
MP
A
200
S
100
1,024
0 10,167,906 OLX Consim
‐100
‐200
‐300
‐400
‐500
‐400 ‐200 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800
Total Income
a b c
Note: All figures are in INR mn and are based on the latest financials available
14
15. Private: Domestic Company – Company Abc (x/x)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
Products and Services
Chennai
Category Products/Services
LE Key People
MP Name Designation
S A
Note: The list of products and services is not exhaustive
15
16. Financial Snapshot
SAMPLE
Private: Domestic Company – Company Abc (x/x)
Key Ratios
y‐o‐y change
Total Income Net Profit/Loss Particulars 2011 2010 2009 2008
(2011‐10)
INR mn INR mn Profitability Ratios
Operating Margin ‐3.23 2.97% 6.20% 8.20% ‐34.70%
a a
Net Margin 1.17 0.87% ‐0.30% ‐37.22% ‐68.89%
0 Profit Before Tax Margin ‐3.23 2.97% 6.20% 8.20% ‐34.70%
b Return on Equity 1.22 0.97% ‐0.25% ‐32.03% ‐54.19%
b Return on Capital Employed ‐2.50 4.85% 7.35% 10.10% ‐41.19%
c Return on Working Capital ‐175.86 ‐173.72% 2.14% 220.11% 347.55%
c Return on Assets 1.19 0.95% ‐0.24% ‐30.32% ‐54.13%
Return on Fixed Assets 15.53 11.02% ‐4.51% ‐647.96% ‐1164.61%
0 d Cost Ratios
2008 2009 2010 2011 Operating costs (% of Sales) 3.23 97.03% 93.80% 91.80% 134.70%
Administration costs (% of
3.23 97.03% 93.80% 91.80% 134.70%
Sales)
Financial Summary Interest costs (% of Sales) N.A. 0.00% 0.00% 0.00% 0.00%
• The company incurred a net profit of INR aa mn in FY 2011, as Liquidity Ratios
compared to net profit of INR aa mn in FY 2010 Current Ratio 58.96% 0.98 0.62 0.59 0.54
Cash Ratio 135.24% 0.63 0.27 0.35 1.21
• The company reported total income of INR bb mn in FY 2011, Leverage Ratios
as compared to INR bb mn in FY 2010 Debt to Equity Ratio ‐35.66% 0.02 0.04 0.06 0.00
• The company earned an operating margin of 2.97 per cent in Debt to Capital Ratio ‐34.83% 0.02 0.04 0.05 0.00
FY 2011 a decrease of 3.23 percentage points over FY 2010 Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
• The company reported debt to equity ratio of 0.02 in FY 2011,
Fixed Asset Turnover ‐17.38% 12.64 15.29 17.41 16.91
an increase of 35.66 per cent over FY 2010
Asset Turnover 30.88% 1.09 0.83 0.81 0.79
Current Asset Turnover ‐26.30% 3.29 4.47 4.05 4.31
Working Capital Turnover 2646.60% ‐199.20 ‐7.25 ‐5.91 ‐5.05
Capital Employed Turnover 29.20% 1.11 0.86 0.86 0.79
Improved Decline
16
18. Traffic Statistics – xyz
Ranks
SAMPLE Most Viewed Sub‐Domains
a
Global Rank
Global Rank 93959
India Rank
India Rank 11243
100.0%
Reach
Reach 0.00124
Audience Snapshot Technical Details
Unique Page Views/Day
Age (Years) 25‐34 Unique Page Views/Day 6.5
Age (Years) (%)
(%)
Search Engine
Gender Male Search Engine 4.8
Gender Redirection (%)
Redirection (%)
Average Load Time
Time (mm:ss) 07:15 Average Load Time 1.182
Time (mm:ss) (Secs)
(Secs)
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 18
19. Recent Developments (x/x)
Oct 2011
SAMPLE
• Bossclassifieds.com introduces its free of cost online advertising and classifieds website in
India
Oct 2011 • Users can avail the website’s services to promote and market their products and services
at absolutely no charge
• Yahoo sold off its stake in Consim Info to Bessemer India Capital Holdings II Ltd., Canaan
Oct 2011
Oct 2011 VII Mauritius and Mayfield XII Mauritius
• The deal was conducted via a stock purchase agreement dated Sep 2011
• AdLift.com, a leading search engine marketing firm joined hands with Getit Infoservices to
Oct 2011
Oct 2011 provide a boost to Getit’s market share within SEO and PPC segments
• Sulekha.com introduced its real estate focused online portal Sulekha.comProperty, which
Oct 2011 will facilitate online buying, selling, rental and provide information on localities and
Oct 2011
brokers
• ZenithOptimedia won the media duties for OLX for an investment of INR 100‐120 mn
Jun 2011
Jun 2011 • OLX relied on ZenithOptimedia’s strategy based on consumers as well as products
understanding
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 19
20. Strategic Recommendations
Driving xyz amongst end consumers
SAMPLE Boost xyz
• xyz • xyz
Strategic Recommendation
Gear up for xyz
• xyz
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT 20
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The Online and Offline Classifieds Market – India 2012 report is a part of Netscribes Business
Service’s Industry Series.
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VENTILATOR MARKET IN INDIA 2012.PPT 21