market research report : online and offline classifieds market in india 2012
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Online and Offline Classifieds ‐ India
May 2012
2ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
Executive Summary
Market
Drivers & Challenges
Trends
Competition
•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 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
•Emergence of mobile classifieds•Value added services•New ventures in online space•Emergence of local classifieds
Drivers:– Increasing internet penetration– Cost effective advertisements– Growth in online advertising– Favorable demographics– Growth in the services sector– Growth in print media– Vernacular presence– Growing circulation and customer base
Challenges:– Language barrier
– Online payment mechanisms
– Low scope for advertisements
– Low visibility and coverage
Online Players Offline Players
Consim Info Infoedge Monster D B Corp Bennett, Coleman & Co Jagran Prakashan
Quikr OLX Sulekha HT Media Deccan Chronicle Lokmat Media
3
•Market Introduction•Market OverviewClassifieds Market – IndiaOnline Classifieds Offline Classifieds
•Business Model•Revenue Model•Drivers & Challenges•Trends•Major PlayersTraffic Statistics
•PE Investments•Recent Developments•Strategic Recommendations•Appendix
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
4
SAMPLE Classifieds are increasingly becoming a popular mode of advertisements for both online and offline space
Classifieds Market – Introduction
Classifieds
Offline Classifieds
• Newspapers comprise the major part of this segment
• Ads are typically short and are charged/word
• Mainly text with no graphics
Classifieds – Segmentation
Classifieds
General
Real Estate
Recruitment
Automobiles
Classifieds – Types
MatrimonialOthersOnline Classifieds
• Comprises of extensive ad space and structure
• Longer messages and use of graphical text
• Wider scope for searches
• 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 is a distinct type of advertising medium with both online and offline modes
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
5
SAMPLE
• Classifieds market comprises of two segments: Online Classifieds
Offline/Print Classifieds
• Classifieds market is witnessing a change in the share of market segmentationWith growing internet usage, print classifieds market faces stiff competition as the online segment posts rapid growth
•Online classifieds segment is growing rapidly and is attracting many small and big players Players are venturing into new market segments to offer differentiated services
•Offline classifieds continue to operate with their 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
Online classifieds is expected to grow faster than the offline segment
Classifieds Market – Size and GrowthClassifieds Market – Overview
Note:• Online classifieds market includes recruitment, matrimonial, automobile and real estate classifieds
• Offline classifieds market includes newspaper classifieds
Classifieds Market – Segmentation
INR bn
a
b
c
d
e
0
Xyz%
2016e2015e2014e2013e2012e2011
62.7%
43.8%
B1A1
2011 2016e
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
53.2% 46.9%
6
SAMPLE Online classifieds operate on a business model that 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
aaa
aaa
aaa
aaa
xxx
xxx
xxx
xxx
Classifieds act as a medium between the advertisers and final consumers
Classifieds act as a medium between the advertisers and final consumers
Advertiser Consumer
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
7
SAMPLE Offline classifieds have a revenue structure which is determined by the advertisement costs
Offline Classifieds – Revenue Model
xxx
Ad Style
Edition
xxx
xxx
xxx
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 newspaper’s total ad
revenues
Agencies also provide assistance for classifieds advertising in lieu of
some charges
At roughly 25% margins, they are more profitable
than display advertisements
Ad Size
Area Coverage
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
8
Online Market Drivers
Offline Market Drivers
Common Drivers
• Increasing internet penetration
•Cost effective advertisements
•Growth in online advertising
•Growth in print media
•Vernacular presence
•Growing circulation and customer base
• Favorable demographics
•Growth in the services sector
Drivers – Summary
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
SAMPLE
9
SAMPLE
Language barrier
Low presence of vernacular languages in online medium poses a barrier for online classifieds market
•Non‐availability of vernacular languages in online classified space poses a barrier as the target consumers get restricted to the literate population only
• However, online advertisements in regional languages such as Hindi, Tamil, Telugu and Malayalam outperform English ones Indians respond better to regional language ads as compared to English ads, by almost 30%
•Non familiarity with English alienates many people from using online media for classifieds services and choose newspapers instead
• Absence of online classifieds in regional languages acts as a major challenge for the online classifieds market in India
Impact
Online Offline
Preference of Language of Internet Users Urban Literacy Levels in India
English
28%
72%Vernaculars 58%
42%
Non English LiterateEnglish Literate
Total Urban Population
of India– 266 mn
Urban Literate
Population‐217 mn
Internet Users in India – 49 mn
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
10
Major Public Companies ‐ Summary
Note: All figures are in INR mn and are based on the latest financials available
36,111.7
27,120.0
7,328.5
‐1,000
‐500
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
‐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
Net Profit/Loss
57,820.7
40,124.0
26,322.4
Size of the Bubble represents Market Capitalization in INR mn
ba fedc
SAMPLE
11
SAMPLE
Public: Domestic Company – Company Abc. (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Name Designation
Note: The list of products and services is not exhaustive
Bhopal
Head Office
12
SAMPLE Public: Domestic Company – Company Abc. (x/x)
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR xxx mn in FY 2012, as compared to net profit of INR xxx mn in FY 2011
• The company reported total income of INR yyy mn in FY 2012, as compared to INR yyy mn in FY 2011
• The company earned an operating margin of 20.64 per cent in FY 2012, a decrease of 7.19 percentage points over FY 2011
• The company reported debt to equity ratio of 0.61 in FY 2012, anincrease of 4.11 per cent over FY 2011
Key Financial Performance Indicators
Indicators Value (dd/mm/2012)Market Capitalization (INR mn) 36,111.70Total Enterprise Value (INR mn) 36373.2EPS (INR) 11.01PE Ratio (Absolute) 17.62
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin ‐7.19 20.64% 27.83% 27.84% 12.32%
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%
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%
Return on Working Capital 21.88 98.17% 76.28% 58.89% 36.50%
Return on Assets ‐6.00 13.10% 19.10% 14.08% 3.28%
Return on Fixed Assets ‐11.34 25.50% 36.84% 28.72% 5.95%
Cost RatiosOperating costs (% of Sales) 7.43 79.20% 71.77% 71.47% 87.37%
Administration costs (% of Sales)
‐12.91 0.00% 12.91% 12.32% 12.05%
Interest costs (% of Sales) 0.00 1.06% 1.06% 3.24% 4.22%
Liquidity RatiosCurrent Ratio ‐35.51% 1.51 2.34 2.12 1.33
Cash Ratio ‐22.47% 0.58 0.75 0.81 0.23
Leverage RatiosDebt to Equity Ratio ‐4.11% 0.61 0.63 0.90 3.04
Debt to Capital Ratio ‐18.40% 0.18 0.22 0.33 0.68
Interest Coverage Ratio ‐26.58% 19.59 26.68 8.81 2.99
Efficiency RatiosFixed Asset Turnover 2.87% 1.85 1.79 1.74 1.59
Asset Turnover 1.92% 0.95 0.93 0.85 0.88
Current Asset Turnover 12.84% 2.40 2.13 1.88 2.40
Working Capital Turnover 91.25% 7.10 3.71 3.56 9.76
Capital Employed Turnover 0.30% 1.52 1.52 1.62 3.55
Improved Decline
Total Income Net Profit/LossINR mn INR mn
a
b
c
0
a
b
c
20090
2010 20122011
13
SAMPLE Public: Domestic Company – Company Abc. (x/x)
Key Business Segments Key Geographic Segments
Key Recent Developments
Description News
Overview • xxx
Readership • xxx
Businesses • xxx
0%0%0%0%1%0%0%0%1%1%
‐50%
0%
50%
100%
150%
2012
4%
95%
2011
1% 4%
95%
2010
3%
95%
2009
1% 3%
96%
Event
Radio
Printing Corporate
Others
0%
50%
100%
2012
14,638
Note: Business Segments and Geographic Segments are based on total revenues
India
The company has operated in India for the last four years
14
SAMPLE
10,167,906
‐500
‐400
‐300
‐200
‐100
0
100
200
300
400
500
600
700
800
900
‐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
Net Profit/Loss
Total Income
1,024ConsimOLX
1,329Times Business Solution
Major Private Companies ‐ Summary
Note: All figures are in INR mn and are based on the latest financials available
ca b
Size of the Bubble represents Total Assets in INR mn
15
SAMPLE
Private: Domestic Company – Company Abc (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Category Products/Services
Name Designation
Note: The list of products and services is not exhaustive
Chennai
Head Office
16
SAMPLE Private: Domestic Company – Company Abc (x/x)
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR aa mn in FY 2011, as compared to net profit of INR aa mn in FY 2010
• The company reported total income of INR bb mn in FY 2011, as compared to INR bb mn in FY 2010
• The company earned an operating margin of 2.97 per cent in FY 2011 a decrease of 3.23 percentage points over FY 2010
• The company reported debt to equity ratio of 0.02 in FY 2011, an increase of 35.66 per cent over FY 2010
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin ‐3.23 2.97% 6.20% 8.20% ‐34.70%
Net Margin 1.17 0.87% ‐0.30% ‐37.22% ‐68.89%
Profit Before Tax Margin ‐3.23 2.97% 6.20% 8.20% ‐34.70%
Return on Equity 1.22 0.97% ‐0.25% ‐32.03% ‐54.19%
Return on Capital Employed ‐2.50 4.85% 7.35% 10.10% ‐41.19%
Return on Working Capital ‐175.86 ‐173.72% 2.14% 220.11% 347.55%
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%
Cost RatiosOperating costs (% of Sales) 3.23 97.03% 93.80% 91.80% 134.70%
Administration costs (% of Sales)
3.23 97.03% 93.80% 91.80% 134.70%
Interest costs (% of Sales) N.A. 0.00% 0.00% 0.00% 0.00%
Liquidity RatiosCurrent Ratio 58.96% 0.98 0.62 0.59 0.54
Cash Ratio 135.24% 0.63 0.27 0.35 1.21
Leverage RatiosDebt to Equity Ratio ‐35.66% 0.02 0.04 0.06 0.00
Debt to Capital Ratio ‐34.83% 0.02 0.04 0.05 0.00
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency RatiosFixed Asset Turnover ‐17.38% 12.64 15.29 17.41 16.91
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
Net Profit/LossTotal IncomeINR mn
a
0
b
c
d
INR mn
a
b
c
0
2011201020092008
17
SAMPLE Private: Domestic Company – Company Abc (x/x)
Key Recent Developments
Description News
Overview • xxx
Product Portfolio • xxx
Partnerships • xxx
18
SAMPLE
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
Traffic Statistics – xyz
Ranks Most Viewed Sub‐Domains
Audience Snapshot Technical Details
Global RankGlobal Rank
India RankIndia Rank
ReachReach
93959
11243
0.00124
100.0%
a
Age (Years)Age (Years)
GenderGender
Time (mm:ss)Time (mm:ss)
25‐34
Male
07:15
Unique Page Views/Day(%)
Unique Page Views/Day(%)
Search Engine Redirection (%)
Search Engine Redirection (%)
6.5
4.8
Average Load Time (Secs)
Average Load Time (Secs) 1.182
19
SAMPLE Recent Developments (x/x)
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
Oct 2011Oct 2011
Oct 2011Oct 2011
Oct 2011Oct 2011
Oct 2011Oct 2011
Jun 2011Jun 2011
•Bossclassifieds.com introduces its free of cost online advertising and classifieds website in India
•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 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 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 will facilitate online buying, selling, rental and provide information on localities and brokers
• ZenithOptimedia won the media duties for OLX for an investment of INR 100‐120 mn •OLX relied on ZenithOptimedia’s strategy based on consumers as well as products understanding
20ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2012.PPT
• xyz
Driving xyz amongst end consumers
• xyz
Boost xyz
• xyz
Gear up for xyz
Strategic Recommendation
Strategic Recommendations SAMPLE
21VENTILATOR MARKET IN INDIA 2012.PPT
Thank you for the attentionThe Online and Offline Classifieds Market – India 2012 report is a part of Netscribes Business Service’s Industry Series.For more detailed information or customized research requirements please contact:
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