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E-commerce Business Plan Draft for your reference. Contact me in-case you are interested to partner.TRANSCRIPT
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window to the Entrepreneur World
Business Plan: Online Retail StoreRETAILER OF THE FUTURE!
MECHIAN PROJECTS’
Bangalore
Business Plan
Author: Raghunandan Rao P.Year: 2013, Oct
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur WorldO
nli
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Ret
ail
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Contents
• About Mechian Projects’
• Introduction to the Business Idea
• Market Information
• Resulting Evolution
• The Attractive Future
• Business Process
• Value Addition
• Infra Requirements
• Organization Structure
• Revenue & Growth
• Ramping Up
• Next Steps
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Mechian Projects’ – A window to the Entrepreneur
World
About Mechian Projects’
Targeting Business Excellence…
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tore - Business Start ups’
- Business Modeling
- Business Planning
- Business Implementation Support
- Start Up Strategies
- Business Support
- Business Development Initiatives
MPs’
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Linking E-Commerce, Transportation & Courier
Networks, Local Global Retailers: the Business Idea
Online Retail Store – Introduction to the Business Idea!
A Global Retail Network connecting Local Retailers delivering
products to customers everywhere!
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• Local Retail Network connects the locally present retailers to customers, promising
delivery at minimum service time to customers.
• Connects unique product sellers across the globe with effective supply chain methods
delivering products at nominal prices.
• Targets to be the largest retail network carrying multi product segment required for any
and every lifestyle segment of population
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Connecting local customers to domestic retailers
Deploying logistic and transport networks
Online Retail Store – Business Idea!
Opening up domestic avenues ensuring availability and reachability
of local products across all domestic markets
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Customer
Retailer
Distributor
Delivery Boy ORS
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Expanding globally connecting local customers to
global retailers
Online Retail Store – Business Idea!
A Global Retail Network connecting Local Retailers delivering
products to customers all over the world!
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MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Indian Retail Segment estimated at $450 Bn.
95% covered by Un-Organized Retail!
Online Retail Store – Market Information
Opening up e-commerce for unorganized retail will result in reverse
evolution with small players growing big!
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Retail Market Size!
Company Revenue (INR) % Market Share
Market Size 1,600,000 Cr. 100.00%
Unorganized 1,520,000 Cr. 95.00%
Organized 80,000 Cr. 5.00%
Pantaloon Retail 4,097 Cr. 5.12%
Shoppers Stop 1,927 Cr. 2.41%
Westside 821 Cr. 1.03%
Big Bazar 6,914 Cr. 8.64%
Reliance Fresh 7,599 cr. 9.50%
Note: Data as on 2010-11,
Source: Deloitte report “Indian Retail Market Opening more doors” year 2013
- Organized retail growing at 35% CAGR
- E-commerce - Fresh market backbone
- FDI in Retail introducing large organized players – a hit
to small players existence
- Un Organized Retail losing market share, jobs and lively
hood of small players.
- With the penetration available, local stores can perform
better through e-commerce by
- Better service levels being closer to the customer
- Better home delivery service through distributed
loads to various outlets
- Easier returns or issue management
- Easy to develop better customer relations
A business targeting improvement of the Unorganized
sector!
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Transforming Retail Industry, linking local to global
and global to local markets
Online Retail Store – Resulting Evolution
Evolution improving country and global performance pulling down
the poverty line, improving employment and economy!
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• Opportunity for retailers to be a modern retailer offering e-commerce service
• Improvement in domestic and global trading with global sales avenue for local products at
economic prices
• Improved business for transportation and courier services with improvement in domestic
and international trade.
• Improved employment, improvement in product quality, economy and spending power
• Opportunity for local small scale producers to enter global trading avenues
• Provides access to local products globally & global products locally
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Avenues for added services provide invaluable
opportunity for ORS to succeed along with its partners!
Online Retail Store – The Attractive Future!
Possibility of reducing transaction terminal cost to be explored!
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- Investing into local products with globalization: an extended business
- Extension into Retail, Branding, Domestic Trading, Exports & Imports,
transportation, 3PL services and other varoius business subsets.
- Offers Corporate Business Services such as Improved Forecasting, industry
reports, quality controls, accurate demands, etc.
- Offers cost effective marketing, offers, market trials, etc.
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
4 stage ordering to delivery process with efficient
processing and service levels
Online Retail Store – Business Process
Strong delivery team, essence of a robust E-Commerce Business!
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Ordering
Cu
sto
mer Access website to
place order
Order confirmed along with payment
Expected Delivery Time informed to customer
Ret
ail
er
Forward order to local retailer
Order pick and confirm invoice
Track order status and inform pick up team
Dis
trib
uto
r
Pick up Order and confirm in transit
Transfer goods to distribution hub
Distribution process to deliver goods
Del
iver
y B
oy
Deliver goods to customer
Track delivery by receipt confirmation
Close order
Picking Delivering Closing
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Providing intelligence to sourcing, commitment to
quality and diligence to delivery service
Online Retail Store – Value Addition
Targeting a profit making lean business unit!
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tore To Customers
• Latest products in the market.
• Connect geographies!
• Trustable user feedback
• Providing Quality Index
• Connect to the nearest store
• Link up trustable stores
• Economic Home delivery
To Retailers
• Introduce E-Commerce business
• Connects to the global customers
• Identifies competition, supports growth
• Business Planning Support with web utilities
• Links up with suppliers
To Distributors / DSP’s
• Opens up new business avenues
ORS adding value -
To Product Brands
• E-Ads and Marketing
• Product quality and market feedback
• Real demand and competition
• Accurate Forecasting
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Intelligent Web Application, Distribution Service
Provider, IT Hardware & Management Resources
Online Retail Store – Infra Requirements
Low hardware investments, high resource running costs – A
challenge for sustaining the business!
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Website
Business
Development TeamIT Hardware
CUSTOMERS RETAILERS DISTRIBUTORS
IT Hardware
IT Team
Analytics Team
INTERNAL
Customer Care / Support Team
Marketing Team
Operations Team
Finance Team
Hardware Investments
- Website
- IT Hardware (HHT’s or scanners for Delivery Team,
Computers & Printers for Retail Stores)
Resources
- Business Team and Operations team
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Country Operations runs with ~260 executives in the
business team
Online Retail Store – Organization Structure
160 prime areas covered costing ~13 Cr. p.a. for executive resources
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Country Manager
Zonal Manager (4)
Area Managers (4 x 4)
Unit Manager (4 x 4 x10)
Marketing Manager (1)
Marketing Executives(4 x
4)
Business Development Manager (1)
BD Executives(10)
Finance Manager (1)
Fin. Executives(4)
IT Manager (1)
IT Executives(10 x 4 + 10)
Business Team
Operations Team (3PL)
Business Team Structure for
operations in 160 areasOperations
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Distribution Service Provider reports to Unit Managers
Fixed & Variables, Payment linked to DSP performance
Online Retail Store – Organization Structure
ORS defines cycle time, productivity through operational guidelines
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Country Manager
Zonal Manager
Area Managers
Unit Manager
3PL DSP
Country divided into 4 zones
Each zone divided into 4 areas
Each area divided into 10 units
1 unit takes care of multiple streets
DSP Operations
- Service level commitment from DSP to ORS. Linked variable payment.
- Online tracking of service levels
- DSP follows ORS process defined for last leg distribution
- DSP manages operational resources
- Operational procedures as per ORS guidelines
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
With 5% on Invoice value, 10 years to achieve 2%
organized retail market share - 1,260 Cr. of billing!
Online Retail Store – Revenue & Growth
60% CAGR – Extensive marketing required to achieve the target!
40:60 split on ORS revenue between Business Team : DSP
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Note: All numbers in lakhs
Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Particulars Stage 1 Stage 1 Stage 2 Stage 2 Stage 3 Stage 3 Stage 4 Stage 4 Stage 5 Stage 5 Stage 5
Investments 4 - 2 - 10 - 17 - 20 - - 52
Operations 46 92 120 148 371 595 914 1,232 1,881 2,205 2,530 10,135
Investments 1 - 9 - 29 - 66 - 132 - - 236
Operations 11 22 128 234 588 942 1,413 1,884 2,830 3,302 3,775 15,128
Investments 7 - 63 - 210 - 280 - 560 - - 1,120
Operations - - - - - - - - - - - -
Investments 11 - 74 - 248 - 363 - 712 - - 1,408
Operations 57 114 248 382 959 1,537 2,327 3,116 4,711 5,508 6,305 25,263
Invoice Value 1,140 2,280 4,956 7,632 19,188 30,744 46,536 62,328 94,212 110,154 126,096
Growth 100% 117% 54% 151% 60% 51% 34% 51% 17% 14%
Industry Market Share 0.00% 0.00% 0.00% 0.01% 0.01% 0.02% 0.03% 0.04% 0.06% 0.07% 0.08%
Org. Retail Market Share 0% 0% 0% 0% 0% 0% 1% 1% 1% 1% 2%
Business
Numbers
Retailer
DSP
ORS
Total
Party Total
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
5 Stage milestone to achieve country operations
Online Retail Store – Ramping Up!
5 stages in achieving country operations
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Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
# Units: 1
An. Rev: 1.2 Cr.
Inv. Val: 23 Cr.
# Units: 10
An. Rev: 3.9 Cr.
Inv. Val: 77 Cr.
# Units: 80
An. Rev: 32 Cr.
Inv. Val: 624 Cr.
# Units: 40
An. Inv: 15.4 Cr.
Inv. Val: 310 Cr.
# Units: 160
An. Rev: 63 Cr.
Inv. Val: 1261 Cr.
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Starting with 1 unit with minimum of 100 retailers,
extending up to 160 units over 10 years
Online Retail Store – Ramping Up!
Revenue from one retailer expected at 4,750 INR / Month
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Particulars Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Units 1 10 40 80 160
Areas - 1 4 8 16
Retailers 500 10,000 40,000 80,000 160,000
Inv. Value pa (Lakh) 2,280 7,632 30,744 62,328 126,096
Retailers (#) 200 700 3,000 6,500 14,000
Inv / Month / Retailer
(INR)95,000 90,857 85,400 79,908 75,057
Rev / Month / Retailer
(INR)4,750 4,543 4,270 3,995 3,753
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Implementation of Stage 1 in 2 years 5 months
Online Retail Store – Next Steps
2 years 5 months business model to achieve 22.8 Cr. Of invoice
value with 1.14 Cr. Of revenue
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Note: All numbers in lakhs
Setting up Basic Infra
Preparation of Business plan for Customers + Retailers + ORS
Pilot run in 10 retailers (internal customers – expenses)
GO LIVE with 100 retailers
Achieving Stage 1 Milestone
2 months
1 month
1 month
1 month
2 years
2 years 5 months
MP: Mechian Projects’ – Online Retail Store
MECHIAN PROJECTS’
A Window To The Entrepreneur World
Mechian Projects’
Contact Us
Raghunandan Rao P.
Mechian Projects’
Bangalore
+91 - 9880452523
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