- Hiteshwar Marhariya- Jiviteshpreet Singh- Varun Yadav- Nikhil Dhamija

Market Analysis : Niche Fashion E-Commerce

Department of Management Studies , IIT ROORKEE

Contents :

Market PotentialKey Market TrendsOverall environment including Economic/Legal

Analysis Consumer Segment analysisCompetitive Landscape AnalysisValue Chain Analysis

Market Potential And Key Drivers:

Source : ASSOCHAM

Revenue Forecast : E-commerce Industry

2014 20180

5

10

15

20

25

30

35

40

45

50

Revenue in bn $

Revenue

Image Consulting :

Can employ fashion designers for providing consultations to customers.

Can open customer care centres for providing fashion advice via chat or video calls

Customers can upload their pictures and professionals can provide advice keeping in view the products range available.

Employing certified professionals for consultation or motivating existing employees for getting certified and turn into experts in Image consulting

Can provide catalogue to the customers according to their dressing as per roles and goals to create an appropriate personality fit.

Key market trends :

Projected Indian E-commerce MarketPercentage share of Apparel in e-commerce

Percentage of clothes in apparelsFrequency of online purchase of clothes

* Source : Baggout.com

* Source : Baggout.com

Macro Environment : Social

Demand Analysis of Indian apparel industry Valued at around 200,000 crore, in 2011 Estimated to increase to over 400,000 crore by 2016 Projected to grow at a CAGR of 15%

•Projected to grow at a CAGR of 15%

As is evident, in India, apparel is still lagging behind in terms of growth rates, especially relative to global averages. Thus there is apparent potential for growth in online apparel retail, in the near future.

Women's Wear is expected to be the largest sector in the Indian apparel industry by 2016

Macro Environment (Cont)

Country Internet User 1 year growth % Penentraition China 641,601,070 4% 46.03% United States 279,834,232 7% 86.75% India 243,198,922 14% 19.19% Japan 109,252,912 8% 86.03% Brazil 107,822,831 7% 53.37% Russia 84,437,793 10% 59.27% Germany 71,727,551 2% 86.78% Nigeria 67,101,452 16% 37.59% United Kingdom 57,075,826 3% 89.90% France 55,429,382 3% 85.75%

Internet Access Following table shows top 10 countries by internet accessibility in the country in 2014.

*Source : Internet Live Stats (www.internetLiveStats.com)

India is on third position with highest percentage growth in internet user. which clearly reflects opportunity available for E-Commerce in India.

Macro Environment (Cont)

Demography of India

Share of Men and women among all internet users

More women are now going online than men and their user-base has grown about 30 per cent this year across metros and tier I cities, an IAMAI-IMRB report said today. According to the report, 'Internet in India', female Internet users have grown at about 30 per cent to an estimated 20.77 million this year from 16 million in 2013.

61%

39%

Internet User By Gender( INDIA)

Male Internet User

Female Internet User

Macro Environment (Cont)

College going girls Non Working Women Working Women0

1

2

3

4

5

6

7

8

20132014

Use

rs I

n M

illi

on

Macro Environment (Cont)

Internet Usage among female

Source : IAMAI

The information Technology Act 2000 (IT Act 2000) governs the online issues commerce in India.

IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that the e-commerce entrepreneurs and owners must ensure cyber law due diligence in India.

The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code etc.

Further, online shopping in India also involves compliance with the banking and financial norms applicable in India.

Perry4law and Perry4Law Techno Legal Base (PTLB) recommend that all e-commerce entrepreneurs and owners must do a proper techno legal due diligence before opening an e-commerce website.

Further, e-commerce websites in India must ensure privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc as well.

Macro Environment : Legal

E-commerce is presently an essential ingredient of India's trade facilitation policy.

Indian e-business has grown at a compounded annual growth rate of 30% since FY09 and is expected to be $18 billion by FY15

Foreign Direct Investment(FDI) is limited to traditional brick-and-mortar stores. The entry of foreign-owned virtual stores online and e commerce platforms continues to be restricted.

E-commerce companies, which have FDI infusion, have created corporate structures which technically enable them to receive FDI infusion even while sticking to the regulatory guidelines.

Macro Environment : Economic

Macro Environment : Technological

Consumer Segment Analysis

1) By type of City Tier 1 cities : Chesterfield type coats, blazers & Duffle coats Tier 2 cities : Casual & semi fashionable Coats Metro cities : Fashionable Coats

2) By Age groups Under 6 Years : Baby type Coats 6-19 years : Sleeveless Coats and Fashionable Coats 20-34 years : Fashionable Coats 35 years & above : Full length Coats

Consumer Segment Analysis (Cont)

3) By profession Business Class : Formal Coats Service Class : Semiformal Coats Home-makers : Casual Coats

4) By Income groups Less than 40k per month : Coats with price range upto Rs 1000 Inbetween 40,000 to 80,000 p.m : Coats with price range between Rs1000

to Rs3000 Above 80,000 per month : Coats with price range above 3,000

Competitive Landscape Analysis

Companies Brands avl Products Prize Range

ebay.com 5000-6000 1850000 $0.06- $10000

yebhi.com 100 6000 600-6000

myntra.com 141 3000 350-21500

snapdeal.com 120 2700 350-9700

flipkart.com 80 2200 600-6000

fashionara.com 35 1200 500-20000

fashionandyoou.com 75 1200 300-6000

shopclues.com 25 1100 200-22000

jabong.com 70 600 500-8000

amazon.com 120 478 600-10000

homeshop18.com 12 410 600-3400

naaptol.com 15 311 400-7000

indiatimes shopping 18 274 500-10000

infibeam.com 8 250 350-6000

shoppersstop.com 25 158 500-5000

koovs.com 18 120 800-8000

yepme.com 1 61 400-1100

inkfruit.com Not mentioned 30 300-1200

* All prices in INR except ebay.com

Source : Data collected from respective e-commerce sites

Value Chain Analysis

Inbound Logistics:3 cases to be considered : Which all products should company store in their own Warehouse? Which all products can be directly picked from supplier, packed at a packing

center and couriered to customer? Which all products can be packed at supplier end and supplier has the

responsibility to courier?

Operations: Following things needs to be taken care : How will the products be displayed on their website? How can customer choose from various options and comparison between

options? How the stock data base is maintained? How the stock can be replenished of faster selling product?

Value Chain Analysis: Primary Activities

Outbound Logistics: What all processes will be involved in delivering the products to customers? What will be the mode of delivery and the mode of payment?

Marketing & Sales: Which all social media platforms to be chosen for promotions? How to give an excellent service to regular customers to get word of mouth

promotions ? What all are the payment options available for the customer to get an easy

access of the product ?

Services: How many customer care executives needs to be deployed and what will be

the working hours? How much time will the company take to resolve customer issues? Does the company also provide size check options to the customers?

Value Chain Analysis: Primary Activities

Firm Infrastructure: How many warehouses are needed and at what locations to cover all potential

markets? How the packaging will happen if the parts are to be delivered directly from

supplier?

Human Resource: How the employees of the organization are involved in its functioning and how they

behave as a brand carrier of the organization ?

Technology: How will the User Interface look like ? How the company provides Real time tracking system for the customers? How can the Real time information stock availability be carried to suppliers as well

as the customers How will the automatic orders be generated for stock replenishment? Procurement : Brand association, Win Win Situation, Just in time order availability

Value Chain Analysis : Secondary Activities

Procurement: How are the suppliers contracted and with a win-win situation both for

supplier as well as organization? How can a supplier feels the sense of involvement in the activities of the

organization? How can the Just in Time orders can be placed to supplier after getting an

order from the customer?

Value Chain Analysis : Secondary Activities