My Dear PC

Revolutionizing the Indian PC

Industry through ONLINE PC
solutions.

Topics Discussed

Global Vs Indian PC MARKET

Finances & Projections

Start-up Cost required for the
venture.
The projections for the first 3 years.
Sensitivity Analysis.

How is the Computer Market

Segmentation different in India
compared to other Global economies?

The Dilemma

Case Study & SWOT Analysis

The Indian Market Scenario.

The Assembled PC.
Branded Vs Assembled The
Dilemma!

Case Analysis for a suburb in

Mumbai.
SWOT.

The Solution
The Branded Assembled.
Lets go ONLINE!

The Statistics

How is the Computer Market

Segmentation different in India
compared to other Global economies?

Global Vs Indian - PC MARKET

Country-wise Market Segmentation

United States

India

Europe

44%
24%

33%
23%

22%
23%
12%

14%
11%

10%

12%

10%

9%

15%

13%

12%

12%
5%

HP

Dell

Apple Toshiba Acer Others

Global Vs Indian - PC MARKET

Dell Lenovo

HP

Acer

HCL Others

The Indian Market

The Indian Market Scenario.

The Assembled PC.
Branded Vs Assembled The
Dilemma!

The Indian PC Market

The Indian Market Scenario

Others

44%

Dell

15%

Lenovo

13%

HP

12%

Acer
HCL

Despite having had a presence of over a decade in

the Indian market, globally established players such
as Dell, HP have been unable to capture any market
leadership in India.

12%
5%

Almost 44% of the Market is still mainly represented

by the unorganized market, i.e. the Assembled PCs
market.

WHY??
Price Sensitivity

The Personal Touch

Lack of Options

An average Indian consumer is

price sensitive. A Branded PC
costs substantially higher than
a similarly configured
Assembled PC in Indian Market.

The local Assembled PC

vendors have cordial relations
with the consumers.
Consumers trust the vendors
opinions and are more
comfortable dealing with them.

Global players offer only preconfigured PCs in India. They

do not offer customizations,
that the local vendors can offer
with Assembled PCs.

The Indian PC Market

Samsung (Monitor)

Sony (Disk Drive/Burner)

Intex (Cabinet)

iBall (Keyboard & Mouse)

Creative (Speakers)

The Assembled PC
USP

The Indian PC Market

Branded Vs Assembled The Dilemma!!

The Changing Scenario
The Urban India is growing brand conscious. Brand is slowly becoming synonymous with quality and service.
However, high pricing and lack of options have hindered the growth of Brand in the PC industry. There is always a
trade off between quality, service, price and customization for the consumer before buying a PC.

The Dilemma!!
Quality
Service
Branded PC

The Indian PC Market

Price
The Trade-off

Customization
Assembled PC

The Solution

The Branded Assembled.

Lets go ONLINE!

The Solution

The Branded Assembled

There is a logical, yet a very simple solution to this Dilemma faced by the Indian Consumer, Branded Vs
Assembled
A Brand selling Assembled PCs.

Branded PC

Assembled PC

Brand Selling Assembled

PCs

Bridging the Gap

The Internet

Its about taking advantage of the changing scenario

in India. Corporates and Individuals likewise have
started relying on the Brand value of the products,
associating Brand with Quality and service.

The Urban Indian Consumer, on the whole are opting

to shop online.

However, Brands may not be providing to the exact

need and specification of the consumer. This is
where we come in. We bridge the gap between what
is available and what they want.
So we provide them a good trade-off without any
compromise on quality, service or requirements at a
price comfortable to them.

The Solution

Studies by Google India show that a 3-digit growth

rate is expected in 2013 in the online shopping
market.
Only second to Travel, Electronic Goods contribute
hugely to the online shopping market, because the
consumers get a better deal and trust the online
brands to provide good quality in electronics.
Basically, we aim to turn the unorganized sector of
the PC Industry to an organized market using
innovative and a never tried before way Going
ONLINE.

Lets Go ONLINE!
Urban Indian consumers are now confident enough to make online
purchases of up to Rs. 25000, from Rs. 2000-5000 in the recent past
- First Data Corporation & ICICI Merchant Services.

Rs. 25,000/GO

Thats exactly what an average Assembled PC costs in India.

How? - Lets Go ONLINE

A very user friendly and easy to use website.
Users can COMPLETELY customize their PCs as per their requirements.
From motherboard to mouse and from cabinet to camera, the user can select every single component exactly
the way they do it when they buy an Assembled PC from a local vendor.

The Solution

A Closer Look

Case Analysis for a suburb in

Mumbai.
SWOT.

Case Study & SWOT Analysis

Case Analysis A suburb in Mumbai

Mumbai Population 20 million.
Mulund (suburb) Population 400,000.
Over 15 shops selling assembled PCs.
A vendor sells 35-40 (average) assembled PCs/month.

Analysis
Limited Reach

Enough Margins

An Average PC vendor in
Mumbai has a reach of around
2-3 suburbs or say 2-3 miles
within the city. This greatly
limits the scalability of the
vendors.

Despite the lack of reach to the

entire city, the vendors sell
around 35-40 PCs/month. The
profit earned is enough to
sustain in the market.

Case Study & SWOT Analysis

Scalable
Opportunity

The market reach is restricted

due to high capital investment
required to set-up shops
throughout the city. Internet
can help overcome this hurdle.

STRENGHTS

No fixed cost of owning/renting property

at preferred locations.
Better bargaining power with the
suppliers. (Better Reach & Quantity)
Access to the ENTIRE market (Mumbai)
unlike other assembled PC sellers.
FIRST brand to sell assembled
computers.

WEAKNESS

SWOT Analysis

SWOT

Case Study & SWOT Analysis

(Mitigation Strategy: First-mover

Advantage)

THREATS

Simple business model: Opportunity to

expand swiftly in other cities.

Less entry barriers.

OPPORTUNIT
IES

Multiple revenue streams (Online

advertising, featured products, etc.)

Initial access to internet required to buy

a PC. (Can be overcome by smart
marketing)
Online payment?? (Multiple mode of
payments can be provided)

E-commerce market in India is worth

around $10 billion and is growing
rapidly.
India PC shipment is expected to reach
12.5 million units in 2012.

Highly volatile market

New innovations like tablets and

Smartphones are a threat to overall PC
industry.
(Mitigation Strategy: PC integration in India
is much lower compared to most developed
countries and the market is still growing)

Financials

Start-up Cost required for the

venture.
The projections for the first 3 years.
Sensitivity Analysis.

Finances & Projections

Start-up Costs
Application of Funds

Amount

Website

80,000.00

Furniture

50,000.00

Computers

80,000.00

Legal Charges

50,000.00

First 3 months Operating Charges

190,000.00

Marketing Costs

100,000.00

Others

50,000.00
Total

600,000.00

Sources
Owned Equity

200,000.00

Borrowings

400,000.00
Total

Finances & Projections

600,000.00

Projections 3 years
(Rupees in Lacs)
Particulars
No. of PCs
Average Selling Price
Total Sales
% Growth in Sales

Total Direct Cost

Gross Profit
% Gross Profit

Administrative Expenses & Other Costs

Depreciation & Taxes
Net Profit
% Net Profit

Finances & Projections

Year 1

Year 2

Year 3

500 nos.

750 nos.

1500 nos.

24,500.00

24,500.00

24,500.00

122.50

183.75

367.50

50%

100%

111.50

165.00

326.25

11.25

18.75

41.25

9.18%

10.20%

11.22%

13.24

12.75

14.98

0.53

1.34

9.01

(2.52)

4.66

17.26

(2.06%)

2.54%

4.70%

Sensitivity Analysis
Particulars

Pessimistic

Realistic

Optimistic

500

750

1000

Gross Profit

11.25

16.88

22.50

Net Profit

(2.52)

2.05

5.76

22,000

21,750

21,300

Gross Profit

11.25

12.50

14.75

Net Profit

(2.52)

(1.27)

0.65

612 PCs

501 PCs

459 PCs

@ Rs. 24,500/pc

@Rs. 25,000/pc

@Rs. 25,250/pc

Rs. 25,005

Rs. 24,090

Rs. 23,630

@ 500 PCs

@750 PCs

@1000 PCs

No. of PCs Sold (Year 1)

No. of PCs

Cost Price per PC (Year 1)

Average Cost per PC

Break-even Analysis (Year 1)

No. of PCs to be sold

Average Sales Price per PC

Finances & Projections

People don't know what they

want until you show it to them.

- Late Steve Jobs

Thank You For Your Time

Niraj Patadiya
n_patadiya@yahoo.co.in
+91 (0) 9870 106 537