WEB EXCLUSIVE BRANDS

SCOPE

• What is WEB

• Why adopt WEB strategy

• Success matrixes

• Challenges

• Opportunity

WEB

Web Exclusive Brand is one that sells unique

products online

• Web Exclusive : Selling only online.

• Unique Products: Pvt label /not available elsewhere

attempts to create a monopoly of sorts

WHY GO WEB ROUTE?

To answer this lets examine the evolution of

fashion ecommerce in India

IT ALL BEGAN WITH…

The “GILT” Model -

• Back-stock liquidators / supply?

• Consumer proposition - deep discounts

• COD – the additional grease

No risk proposition lead to trial, but little repeat

FOLLOWED BY..

The Retailer Model: • Consumer Proposition – accessibility • Multi Brand Retail • Fresh seasonal goods • Consumer cocaine – discounts & free

shipping

Delivered top-line, cash-burn but still no loyalty

THE PROBLEM..?

Business not sustainable

• Low Gross Margins

• High Discounts

• Negative Net Margins

• High COA

• Poor repeat / loyalty

Each transaction led to more cash burn!

THE WISH…

…….a business model that compels consumers

to return again and again & shop at full price

Win customer loyalty without discounts; how?

THE MAGIC RECEPIE

Recipe: Loyalty on the rocks

• Unique / fab merchandise……….60 cl

• Spin a Brand story...………………20 cl

• Value equation…………………….20 cl

• Discounts ………………………….Skip

Stir (don’t shake) - gets them helplessly loyal

ENTRE WEB

The Brand route to create the helplessly loyal consumer • Focus on a sharp TG segment • Invest in Brand positioning & imagery • Bring focus to consumer experience • Offer unique and desirable merchandise • Value pricing

and build lasting values

THE CHALLENGES

From trading to full value chain • Design & manufacturing • Building a brand • Investment in inventory • High COA due to targeting • More difficult to scale

Its like doubling the odds of failure!

WHAT HELPS

Online business is real business too – get your fundamentals right:

• Founding team must bring all key skills & experience • Get the consumer facing proposition right • This is not a valuation game • Investor is patient & yet allergic to burns • Timing is right • Lady luck supports

It’s a long haul & there are no short cuts

SUCCESS MATRICES

WEBs = Destination shopping = high performance • Conversion Rate • Repeat • WOM - Organic traffic • Minimum discounting • Gross & Net margin

Makes good business sense

FINALLY

WEB suitable:

• For Fashion & Lifestyle segment

• When Founders have the skill & passion

• When scale at any cost is not the game

• When bottom-line is as important…. • When quick multi-million $ exit is not core

When you are in business for the right reasons!

OVER TO YOU