A Presentation on Ecommerce industry and category building

Submitted by
Chetan Agrawal
09619975352
chetan423@gmail.com
Shopclues


A company incorporated in July, 2011 and within short span it has reach of 5500+
brands with Rs 350 Cr GMV.
With 33000+ merchant base, It offers 4+ million SKUs.
Awarded e commerce site of the year in 2013.
One of the early bird that introduced marketplace model in Indian E commerce
Industry.


Indian E commerce Industry
63200,
79%
16800,
21%
Indian Ecommerce
Industry
Travel (79%)
Rest of others
Strength Future
121 Mn Internet user base Consolidation of Market and CAGR
40% for next 5 yrs (PWC)
250 Mn debit and credit card
holder
Logistics infrastructure a
differentiator
117 Mn Smartphone user and
expected to be 500 Mn in 4 yrs
Innovation at every step and
category expansion
Internet and logistics Penetration
at 2
nd
and 3
rd
tier cities
FDI and entry of many foreign
players
Disposable income among youth Internet penetration 13% to grow
rapidly.

Major players in India: Flipkart, Amanoz, Myntra, Jabong, Shopclues
With Population of 1.23+ Bn and increasing disposable income, India has huge
potential for ecommerce industry

Footwear/Jewellery & Watches
495, 35%
496.8, 36%
400, 29%
Categories Market share in
Ecommerce Industry
Indian Footwear Industry
Indian Watch Industry
Imitate Jewellery Market
Total Market share: INR 1400 Crs
High Potential Market and growth
Many new brands introducing in
the market
Higher Category expansion
potential
With changing consumer taste,
Imitate Jewellery have higher
growth potential
Category Flipkart Amazon Shopclues
Footwear Most of the major brands
available and higher buying
options
Relatively new category
introduced.
Needs more sub
category options and
products
Jewellery Most of the major brands
available and higher buying
options
Most of the major brands
available and higher
buying options
Relatively new
category and few
options
Watches Most of the major brands
available and higher buying
options
Most of the major brands
available and higher
buying options
Relatively new
category and few
options
Role of Category Merchandising Manager
Category Product
Management
Promotional Plan
and execution
Profitability
Strategy and
category expansion
Content management through
collaboration with other stake
holders
Consumer and Competitor Analysis
for better category performance
Budgeting, Forecasting and Execution for Merchant and Customer base
expansion



Huge investment in the online business leading to price and profitability war
Technology advancement to neutralize product feel issue among customer
Reverse logistics infrastructure to be enhanced for customer service
Handling and packaging of jewellery at merchant location
Imitate Jewellery market still at nascent phase respective to other developed
market
A dedicated logistics partner to overcome supply chain issues



Potential Challenges in the Category
Merchant Performance
Analysis and Training
Category Building
Understanding of the Product category and its consumer insight
Competitor analysis and market trend analysis
Analysis
Category analysis and merchant on boarding plan
Category budgeting, forecasting and micro level expansion plan
Promotional Plan , sales strategy
Competitive pricing model for stock turn and liquidation
Planning
Step by step execution through merchant on boarding and product
classification
Execution of promotional strategy for expanding consumer base
Execution
Time to time execution review and re planning through understanding
challenges ahead
Category Profitability review
Review
Delivering Data (Estimated findings as per Datasheet)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2012 2013 2014 2015 2016 2017
0.55
0.85
1.24
1.71
2.25
2.83
ShopClues Market Share (%)
Shop Clues Market
Share (%)
0.00
40.00
80.00
120.00
160.00
200.00
2012 2013 2014 2015 2016 2017
6.60
14.24
29.06
56.28
103.74
182.49
Category Size in Shopclues in Crs.
Category Size in
Shopclues in Crs.
Estimated CAGR (2012 17) for the Category: 95%
Shopclues market share will be ~ 3% by 2017 if it goes with same speed. A marketing
push can deliver it up to 5%
Being a start up and itself a nascent category, it has high chances of triple digit
growth if planned and executed properly.
Many data in the datasheets are assumption and mentioned accordingly. Rest of the
data is taken from shopclues website and other internet sources.

Thank You