slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
FabMart PowerPoint Presentation
Download Presentation
FabMart

Loading in 2 Seconds...

play fullscreen
1 / 10

FabMart - PowerPoint PPT Presentation


  • 123 Views
  • Uploaded on

FabMart by MRPL aims to bridge the divide between the urban and rural parts of India when it comes to retail. The model is an interesting mix of online and offline, by leveraging the power of technology and the good will of retailers on the ground. So, our retailer network on the ground forms a significant part of our strategy and in helps us in creating a mutually beneficial model to both us and the our retail partners on the ground. FabMart deals in Shoes, Mobiles, Bags, Sunglasses, Laptops, Watches, Perfumes etc. Free shipping and 100% secure shopping are our brand promises. We are a small but young and energetic team based out of Bangalore. In addition, we have our field team which is responsible for building and managing our partner network.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'FabMart' - guest47398


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

GROWTH IN CONSUMER CONSUMPTION

Consumption will grow 4x over 2005 – 2025. Urban India will account for more than two-thirds of this growth as urban household income will grow 3.3x over the same period.

Aggregate annual consumption

(Bln, Indian rupees, 2000)

Source: MGI India Consumer Demand Model, v1.0

slide3

GROWTH IN CONSUMER CONSUMPTION

Consumption will grow 4x over 2005 – 2025. Urban India will account for more than two-thirds of this growth as urban household income will grow 3.3x over the same period.

Aggregate consumption per Urban Household

(Indian rupees, 2000)

6.1%

2.9%

Source: MGI India Consumer Demand Model, v1.0

slide4

URBAN CLASSIFICATION AND FOCUS OF ORGANIZED RETAIL

Urban areas are classified into four types depending on population. Traditionally, organized retail chains focus on tier 1, 2 and tier 3 (limited). There is a clear gap when it comes to Tier 4 cities.

Bangalore

Hyderabad,

Mumbai Kolkata

DelhiChennaiAhmadabadPune

Surat

Kanpur

Nagpur

Lucknow

Jaipur

Kochi

Vadodara

Indore

Ludhiana

Madurai

Bhopal

Patna

Nasik,

Agra

Varanasi

Rajkot

Tiruchirapalli

Amritsar

Faridabad

Aurangabad

Allahabad Gwalior

JodhpurRaipur

Bhubaneswar

RohtakRurkelaUdaipur

AnandFaizabadHassan

ShimlaRoorkeeShillong

Tier 1Major cities

Tier 2Mainstream cities

Tier 3Climbers

Tier 4Large towns

8 cities

Population > 4 million

26 cities

Population > 1 million

33 cities

Population > 500,000

33 cities

5,094 towns

* Population for each city estimated using the average urban household size

Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand Model (v1.0); MGI analysis

slide5

POTENTIAL IN TIER 4 CITIES

40% of total disposable income is generated in Tier 4 cities

Total Households

(million, (share))

Average income per household

(1000, Indian Rupees)

Total disposable income

(Bin, Indian Rupees (share))

Note: Disposable Income estimated using income distribution of households from NCAER and model estimates of average household income;

Figures are rounded to the nearest integer and may not add up to 100% Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand

Model, v1.0; MGI analysis

slide6

SUMMARY OF OPPORTUNITY

This leaves a huge unmet demand in serving the needs of affluent customers in smaller towns.

  • Existing ‘mom-and-pop’ stores are not able to meet the demands of affluent customers in towns.
  • Organized retail chains are yet to penetrate these towns.
  • Ecommerce is not yet a viable channel given that customers are not tech savvy, psychological barriers and limited infrastructure.
slide7

FABMART – TARGET SEGMENT

The key focus of FabMart by MRPL is to address the needs of affluent customers in Tier 3 and 4 cities.

FabMart by MRPL by MRPL

Organized retail

Focus of FabMart by MRPL

Key success factors to serve affluent

customers in towns

1

  • Product availability – A wide range of products and services should be available.
  • Convenience – The process of shopping should be convenient and fun.
  • Confidence – Customer should trust the seller and the brand.
  • Operational control – A high quality of customer experience needs to be ensured with a tightly managed service delivery model.
  • Lean & scalable model – Since volumes will be low in any given town, the model should be lean but highly scalable.

2

3

4

5

slide8

COMPETITIVE ANALYSIS

In the target towns

E-commerce

Shopping from adjacent cities

Mom & Pop stores

Large format retail

  • The typical mom-and-pop store serving customers in the town
  • Large format retail stores that are occasionally seen in some tier 3/4 towns
  • E-commerce chains such as Flipkart, Myntra etc.
  • Customers going to the nearest city to buy goods that are not normally available

Comments

Value proposition to the customer

  • Pros:
  • Convenience
  • Trust
  • Instant gratification
  • Cons:
  • Limited variety
  • May not be the best deals
  • Pros:
  • Convenience
  • Trust
  • Instant gratification
  • Variety and deals
  • Cons:
  • Is not present in most of the target towns
  • Pros:
  • Variety and good deals
  • Cons:
  • Various links in the value chain (from a small town point of view)are not yet mature i.e. Technology, Logistics, Payments etc.,
  • Trust deficit
  • Familiarity with online shopping required
  • No touch-and-feel experience
  • Pros:
  • All the benefits of a typical LFR store
  • Cons:
  • Involves prior planning and travel
  • Returns are not possible if the city is located at a distance

Comparative Threat

  • Low-Medium
  • Low
  • Low-Medium
  • High
slide9

ABOUT FABMART BY MRPL

  • FabMart by MRPL aims to simplify shopping for customers in smaller towns in India while offering them an unmatched online shopping experience. We are the only company in India that is exclusively focused on catering to customers in small towns by bringing in a wide range of products offered by a multitude of brands.
  • We want to combine our industry expertise, technology know how to offer our customer in towns two things: Fastest and best e-commerce experience, and Timely delivery in the towns.
  • The Team
  • Alphonse Reddy Founder & CEO,
        • 12 years industry experience spanning sales, marketing, strategy and finance.
        • BE (BITS, Pilani) and MBA (INSEAD Business School)
  • Investors/Advisory Team
  • HemuJaveriExecutive Director, Forum Synergies, a $150m PE fund.
  • Previously CEO of Madura Garments, Nike and Home Solutions.
  • Anand Morzaria CEO of Pennywise Solutions.
  • MSc Finance (BITS, Pilani)
  • AshishAgarwalInvestment Director, Navis Capital, a $3b PE fund. MBA (INSEAD Business School)