Crafts Villa 1

PowerPoint Presentation

CraftsvillaPresented by: Group 3, Section : S31. Anirvaan Ghosh 12DM-0222. Dharma Teja 12FN-0433. Jency John 12DM-0654. Sameer Doda 12DM-1265. Sarthak Mukkar 12IB-0416. Sourabh Dang 12FN-1337. Tripti Bansal 12FN-146

Handicraft Sector: India$100 billion industry worldwide

Indian market:$7 billion

The total exports of crafts items: Rs. 13412.92 Crore.

Industrys share in India's exports: 1.51 %

over 4 Million artisans and designers

http://www.epch.in/hed.htmThree major ways of selling:

Sell to major retail stores in India

Export to shops and buyers overseas

sell direct to public

Gaps:highly labor intensive and decentralized

not much visibility in domestic market

largely unorganised

high-quality crafted good are sold for a pittanceMiddlemen

artisans leave the field in search of a better-paying profession

How Crafts Villa is bringing a change?Fair pricing

No middlemen

Bringing buyers and sellers on same platform

Marketing support to sellers

Craftsvilla studio: Provide support to artisans to go online, in selecting products and taking picture

Brand Building for artisans5Craftsvilla artisan fundhelp artisans get raw materials and to fund their kids education.

helps them continue the traditional art forms and does not lure them into working for machine-made products.

Marketplace to Discover Unique Indian Products

Owned by Kribha Handicrafts private limited

Founded by Monica Gupta and Manoj Gupta

Founded : Jan, 2011 and Launched Sept, 2011

Initial Investment: 10 lakhs

Headquarters: Mumbai

Nexus, Lightspeed : Investors, 1.5 m USD investment, July,2012

Business Model

Business ModelFollows a Marketplace modelSellers open shopHandle shipping, set pricesCraftsvilla handles transactionLater pay sellersKeeps a commission and provide them marketing support8Craftsvilla

CraftsvillaIntermediary

Owns customer relationship, data but not transaction

Revenue Model15% commission on sales

20% if managing shipping alsoCost

payment gateway

Photo-shoot, content writing, Marketing

The shipping costs and everything else is done by the seller

Business statsAverage ticket size : Rs. 950 per purchase

close to 5 repeats per year

Acquisition costs on average :Rs 500 and scaling lower at a fast pace

Core CompetencyAcquiring sellers from remote places

Attracting buyers

Marketing

Brand building for individual sellersSuccess indicator1300+ shops

130,000 + products

revenue growth of 70% month on month

ship out 10,000 items every month

Top sales in metros (Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Pune, Chandigarh, etc..)

best contribution margins

new customers acquisition

over 2, 00,000 users signed up

growing at over 25% per month in users

strong active users base at over 50%

9 minutes on average spent site with good repeat behaviour

Future outlookscaling up on seller acquisition across India

Addition of new categories monthly. food (organic unique teas), religious books, clothing

expand targeting the foreign markets (UK / US)

Thailand and Indonesia for the supply side

Looking for 2nd round of investments of over 100 million USD

CompetitorsE-Bay.com

Shopo.com

Etsy.com

Mela.com

Shopleaf.com

Differences

No listing fees like E-Bay

No restriction on artisan collectives or NGOs like Etsy

Presence of Craftsvilla studio for handholding artisans to go online

Facilities for photo shoot, content writing

SAP on cloud

Difference from other E-commerce modelNo discounts offered

No stocks kept

Completely marketplacediscounts-driven ecommerce model would be difficult to sustain and manage. You end up losing money on each shipment. discount customers added more overhead on our customer service as they were the most troublesome. Our signup coupon was being harassed like anything with mulitple signups by the same personallows the company to avoid the high costs of inventory management and leakage in the supply and distribution chain

17ChallengeHow to retain the talent

How to reach out to new artisans

How we reach out to global customers

Convincing consumers to shell out money online

Why we think this type of model will workSustainable

Cost efficient model

Very few reliable offline buying opportunities

Sales are high even without no discount offered

Has first mover advantage in online handicrafts in Indiawhich will make India the second-largest Internet country in the world after China.Among the BRIC Nations, India has been the fastest growing market adding over 18 million internet users and growing at an annual rate of 41%. India is also among the top 3 fastest growing markets worldwide in the last 12 months

19Internet penetration on riseNumber of Internet users in India has crossed 100 million , expected to cross 350 million by 2015,

Online shoppers in India is expected to jump from 7 million to 75 million by 2015

The number of rural internet users increased from 29 million as of December 2011 to 38 million at the end of June and is expected to touch 45 million by the end of December this year.

http://www.moneycontrol.com/smementor/mentorade/starting-up/e-commerce-focusprofitable-growth-rather-than-mindless-topline-growth-804281.html

Female and Young population on riseFemale population accounts for almost 40%, according to a joint study by apex industry bodyASSOCHAMand ComScore.

About 75% of online audience is between the age group of 15-34 years making India is one of the youngest online demographic globally.

15-24 years of age group has been the fastest growing age segment online with user growth being contributed by both male and female segments.

Females and young population are the main consumers, their rise will raise sales for Craftsvilla.Smartphone usage riseCurrently, India has 27 million smartphone users, and is sixth globally on this count.

48% users of smartphones are less than 25 years, Nelsen report, 2012

Overall, there are 70 million mobile Internet users in India. "We expect India's next 150-180 million Internet users will access the Internet through a mobile device

Opens up scope for mobile app for shoppingMobile Internet on rise in Rural areas mobile-internet usage mark to reach the 100 million mark in one yearThe demand for mobile internet via smartphones is rapidly catching up in rural areasAs per IAMAI, at the end of June , there were 3.6 million rural mobile internet users.As per Trai data Wireless subscription in rural areas increased 1.24% over the same period, from 332.38 million to 336.51 millionSmall data packs priced competitively at below Rs 50 for unlimited data usage and downloads. Further content in regional languages and rural-specific apps help. This will help Artisans to go onlineE-Commerce on riseIndia's e-commerce sites are predicted to reach transactions of more than $40 billion by 2015

Next 10 years, e-commerce in India expected to grow by at least 50 per cent CAGR

Retail category penetration has increased to 60 % reach and has grown to 37.5 million unique visitors a month, an overall of 43% annually

Increased confidence in E-commerce will fuel overall sales