Vanig Business Analysis v1...Business Model Alibaba mainly focuses on business-to-business trade but it still supports consumer trade through its e-commerce web portal Tmall (B2C),

VANIGBUSINESS ANALYSIS

Contents

About US

Market Analysis

ASEAN Competitor Analysis

Risk Analysis

Financial Analysis

ABOUT US

What is Vanig

Vanig is an integrated e-commerce

and supply chain solution powered by

Blockchain.

Vanig simplifies and eliminates

intermediaries and manual processes

and brings in transparency to the

entire Supply Chain process.

Vanig’s E-commerce platform is safe,

secure, easy to use, benefits both

buyer and seller and allows

cryptocurrency payments.

VANIGVanig is an e-commerce website powered by

blockchain and created in order to eliminate the

middleman as well as reduce cost for the

consumer. The company is entering the market by

using hyperledger solutions to implement

transparency. Vanig is looking to bring this

innovative tech solution to South East Asia. Now

seems to be the perfect time for the company to

enter the market since none of the major

ecommerce giants in Asia have initiated the use of

blockchain on their platform.

HOW TO BUYVANIG tokens will be used to buy products and

make secure payments on the platform. Money

transfer from buyers to sellers will be near

instantaneous.

Buyers can still use traditional forms of payments

such as credit cards, PayPal and other third party

payment portals supported by the site. Although

it might result in higher transaction fees.

Market Analysis

Target Market

Vanig is initially looking to target the demographic of South East Asia (ASEAN- an association of 10 Southeast

Asian Nations), as it is expected to be one of the next booming e-commerce markets in APAC (Asia-Pacific).

The size of ASEAN’s Market is expected to reach $88 billion USD by the end of 2025 (from $5.5 billion in 2015).

Driving Factors

The two main driving factors of South East Asia’s e-commerce boom are the growing middle class and the

rapid expansion of the Internet access:

• The middle class population in ASEAN is estimated to reach 400 million in 2020 (from 190 million in 2012).

• Internet access in ASEAN is estimated to reach 600 million by 2025 (from 200 million in 2017) .

COMPETITORANALYSIS

ASEAN

Business ModelAmazon seller fees include account fees and referral fees. In

2018, the average fee for amazon sellers is estimated to be 15%,

although it varies greatly based on product category.

The shipping rates to Asia and the Pacific Islands also vary

based on preferred shipping times and product category:

• Standard Category- on average $4.5 per shipment

• Expedited Shipping- on average $13 per shipment

• Priority Courier Shipping- on average $26 per shipment

Amazon accepts a variety of payments such as debit and

credit. The company also implemented Amazon Pay, service

that allows the consumer to use the payment method already

associated with the Amazon account, charging a processing

fee ranging from 2.9% to 3.9%.

Business ModelAlibaba mainly focuses on business-to-business trade but it still

supports consumer trade through its e-commerce web portal Tmall

(B2C), which rivals Amazon. Sellers are charged an annual fee ranging

from $5000 US to $10000 US as well as a commission fee between 2% to

5%, dependent on product category.

Tmall has partnered up with eight Chinese logistic companies to launch

an international parcel-forwarding serving that is aimed to simplify and

lower the cost of shipping online purchases from China to select Asian

locations. Shipping cost varies greatly based on product category but

freight consolidation helped Tmall lower their shipping cost by 30% to

50%. Regarding payment methods, Tmall supports AliPay (also part of

the Alibaba Group) as well as bank cards; transaction fee is estimated to

be 3% to 7%. The company also requires a management fee deposit of

$2000 to $15000.

Business ModelJD.com mainly focuses on business-to-consumer trade. Sellers

are charged an initial deposit of $15000 US as well as a

commission fee of 5% to 7%, dependent on product category.

Although they are both major players within the e-commerce

market, JD.com differentiates itself from Alibaba by running its

own logistics network.

Nevertheless, the company also relies on third party providers.

Shipping costs also varies greatly based on product category

but JD.com tries to offer free shipping on as many items as

possible. Regarding payment methods, JD.com supports

WeChat Payment, JD Pay as well as bank cards; transaction fee

is estimated to be 5% to 8%. The company also requires a

management fee deposit of $8000 to $50000.

Business ModelVanig will focus its model on selling directly to consumer.

The revenue model will be based of multiple revenue streams:

• Seller Fees- a competitive 5% of each sale.

• Fiat Transaction Commission- fee of 1.5% to 3.5%.

• Monthly Subscriptions to offer “Pro Features For Sellers”

• Seller Pro Package - $50 per month in Asian countries & $ 100 per

month in developed countries.

• Pro Seller + Store Accounts Package- $100 per month in Asian

Countries & $200 per month in developed countries.

Vanig plans on working with third-party shipping providers and plans

on offering free shipping for orders over $25 in Asian countries, and

over $50 in developed countries.

Regarding payment methods, Vanig supports crypto-currency

payments (no transaction fees) as well as Fiat currency payments.

E-Commerce

Top Players

Market Share($B USD)

RISKASSESSMENT

Vanig SWOT Analysis

Weaknesses

• Competing with e-commerce giants who have access

to large capital.

• High level of investment required.

Threats

• Competitors with better research-intensive strategies

and high investment capital enter the market.

• Market uncertainty could result in collapse of

cryptocurrency.

Strengths

• Lower fees and commissions.

• Integration of the blockchain innovation allowing for

cryptocurrency payments.

• Supply Chain Benefits due to raw material and

manufacturing tracking.

Opportunities

• Adaptation of Vanig supply chain by other major

players.

• Partnerships with other e-commerce market leaders.

• Establishing a Vanig store brand.

FINANCIALANALYSIS

Financial Projections

Based on anInvestment of20$M USD

$3,179,501

$14,945,205

$40,769,109

$63,572,683

-$6,800,499

$1,270,205

$11,469,109

$25,222,683

-$20,000,000

-$10,000,000

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

By 2019 By 2020 By 2021 By 2025

Revenue and Profit

Revenue Profit before tax

Vanig Marketing Plan - Launch

Goals and ObjectivesGoal: Onboard and nurture key seller partner relationships.

Identify sellers to pursue and build relationships with for onboarding to platform. Invest in partners that will share

our values and vision and will promote Vanig.

Seek exclusive partnerships to drive buyers to Vanig as the exclusive means for purchasing from those seller

partners.

Create promotional marketing and sales materials to market and onboard new sellers. Sellers should be aware of

Vanig’s unique benefits.

A. Immediate payments.

B. Low seller fees.

C. Rewards program.

Vanig will identify and build relationships with key sellers that can influence other sellers to want to sell their products

through Vanig as well. We will do this by targeting specific successful stores regionally to be onboarded early to the

platform. Providing this level of onboarding control will ensure a smooth red carpet process that all systems are ready

for buyers and sellers understand how to run their shops.

Key Objectives:

1.

2.

3.

Create in-app tips to promote seller engagement.

A. Sellers - active sellers, target them to showcase our seller pro features and pre+ store features, that offers

analytics, insights into products, categories, buyers, sales etc.

B. Sellers - ones that haven't sold anything - target with tips on which are hot product categories and trending

products.

C. Sellers that haven't logged in recently / updated their product catalogue - same as above but giving them

reasons, incentives to login and list their first products.

Invest in ad campaigns that target new sellers to join Vanig as a new seller.

A. Print media.

B. Social media marketing.

C. Paid articles, advertisements.

D. SEO and Adwords campaign.

E. Influencer endorsement on social media platforms.

4.

5.

Goal: Launch and develop new regional markets and opportunities.

1. Identify key regions appropriate for expansion.

2. Develop localized language support for new launch countries.

3. Translate ad campaigns for new countries and make sure adverts are culturally and customs appropriate for

new regions.

4. Identify nearly sellers for onboarding.

5. Invest in ad campaigns and influencer marketing to build new buyer traffic.

Vanig will identify and target new markets for expansion and develop partner relationships in those markets to build a

seller base before launching to buyers. Being aware of regional social media and advertising networks will be

important to build appropriate and rewarding campaigns to drive new buyers and sellers into Vanig’s marketplace.

Key Objectives:

Goal: Engage customer audience to grow brand awareness.

Creating brand awareness will be driven through multi-channel marketing sources from print to social media and

digital display to influencer outreach. We will identify key relationships with influencers, key sellers, and early adopters

to increase our brand outreach to new buyers. Educational outreach will be highly important to educate new buyers

on how easy it is to shop at Vanig to lower any barriers to new technology that may exist in segments.

Develop educational promotions to lower adversity/barriers to new technology so buyers understand ease of

shopping through Vanig. Buyers should be interested in Vanig’s approach to ecommerce.

A. Low cost.

B. Product origin information.

C. Reliability.

D. Rewards program.

Create promotional pieces highlighting unique sellers in our ecosystem to increase sales.

Identify key influencers and platforms for paid promotions and outreach.

1.

Several objectives will focus on creating a rewards program to rewards early buyers for using Vanig and completing

specific goals in the platform like sharing their purchases to social media. Targeted marketing for specific e-

commerce states in the platform such as items left in cart, will keep buyers and sellers active in platform. This

targeting will bring buyers back to our platform to complete purchases, write reviews or follow up on upsell

opportunities.

Key Objectives:

2.

3.

Invest in marketing campaigns to drive new buyers to Vanig.

A. Print media.

B. Social media marketing.

C. Paid articles, advertisements.

D. SEO and Adwords campaign.

E. Influencer endorsement on social media platforms.

Develop rewards program and marketing material to increase buyer acquisition, engagement and repeat

shopping. Buyers will be rewarded for engaging with and sharing Vanig.

A. Consider launch promotion of 200 tokens to first 5000 shoppers who make a purchase in the launch month.

In-app tips to promote buyer engagement.

A. Buyers that left items in shopping cart.

B. Buyers based on their browsing history, targeting deals while they are in the site in specific pages/product

categories.

C. Buyers that didn't visit our site for over a week - email enticing them to come back with tokens to purchase

again.

D. Request buyers to submit reviews.

4.

5.

6.

Goal: Develop feedback system to increase buyer/seller happiness.

1. Implement timely email surveys to increase feedback engagement

2. Create in-app single question surveys that can get quick feedback without interrupting the user experience.

3. Build easy to access customer service portal that houses help docs and FAQs as well as quick chat support.

4. Develop list of feedback questions that align with company goals and objectives

A. What is working?

B. What isn’t working?

C. What can be improved?

D. What new features do you look forward to?

5. Incentivize feedback with token rewards

With a new ecosystem it will be important to invest resources into receiving, evaluating and implementing feedback

from both our buyers and sellers. Vanig will rollout a system and process to request feedback actively through several

mediums to collect data to inform decisions on how we operate, feature implementations, and bug fixes.

Key Objectives:

Phillipines & Malaysia - Mar'19 Vietnam - Sep '19Month Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total

Market Share (in BILLION USD)

Size of Target Market (Phillipines) 0.20% 0.40% 0.60% 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00% $0.08

Size of Target Market (Malaysia) 0.20% 0.40% 0.60% 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00% $0.08

Size of Target Market (Vietnam) 0.20% 0.30% 0.50% 0.60% $0.02

Vanig Market Share (2% +0.1%/m) $0 $0 $375,221 $750,442 $1,125,664 $1,500,885 $1,688,495 $1,876,106 $2,182,409 $2,335,561 $2,641,864 $2,795,015 17,271,662$

Number of Sellers 0 0 1000 1250 1500 1750 2000 2500 3500 4000 4500 5000 10,000$

Additional Revenue Streams

Seller Pro $50 30% 0 0 0 15000 18750 22500 26250 30000 37500 52500 60000 67500 330000

Pro Seller + Store Account $100 20% 0 0 0 20000 25000 30000 35000 40000 50000 70000 80000 90000 440000

Seller Comission Fees 10% -$ -$ 37,522$ 75,044$ 112,566$ 150,088$ 168,850$ 187,611$ 218,241$ 233,556$ 264,186$ 279,502$ 1,727,166$

Advertising Revenue 5% -$ -$ -$ 37,522$ 56,283$ 75,044$ 84,425$ 93,805$ 109,120$ 116,778$ 132,093$ 139,751$ 844,822$

Total Revenue -$ -$ 37,522$ 147,566$ 212,600$ 277,633$ 314,524$ 351,416$ 414,861$ 472,834$ 536,280$ 576,752$ 3,341,988$

One Time-Cost

Cash Capital

General Expenses

Advertising/Marketing $150,000 $500,000 $500,000 $150,000 $150,000 $150,000 $150,000 $300,000 $200,000 $200,000 $200,000 $200,000 $2,850,000

E-Commerce Staff $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $100,000 $100,000 $100,000 $100,000 $100,000 $1,025,000

Supply Chain Staff $58,000 $58,000 $58,000 $58,000 $58,000 $58,000 $58,000 $100,000 $100,000 $100,000 $100,000 $100,000 $906,000

Mixed Integration Staff $36,000 $58,000 $58,000 $58,000 $58,000 $58,000 $58,000 $75,000 $75,000 $75,000 $75,000 $75,000 $759,000

Employee Salaries $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $130,000 $130,000 $130,000 $130,000 $130,000 $1,350,000

Rent/Lease Payments/Utlities $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $30,000 $30,000 $30,000 $30,000 $30,000 $290,000

One Time-Cost

Hyperledger Infrastructure $200,000 - - - - - - - - - - - $200,000

Strategic and Market Advisors $400,000 - - - - - - - - - - - $400,000

Postage, Shipping & Communication $100,000 - - - - - - - - - - - $100,000

Business Insurance $500,000 $500,000

Computer Software & Equipment $500,000 - - - - - - - - - - - $500,000

Travel Expenses $150,000 $150,000

Business Licenses $150,000 - - - - - - - - - - - $150,000

Professional Services $250,000 - - - - - - - - - - - $250,000

Furniture & Fixtures $100,000 - - - - - - - - - - - $100,000

Research & Development $200,000 - - - - - - - - - - - $200,000

Misceallanous $250,000 - - - - - - - - - - - $250,000

Total Expenses $3,239,000 $811,000 $811,000 $461,000 $461,000 $461,000 $461,000 $735,000 $635,000 $635,000 $635,000 $635,000 $9,980,000

NET CASH FLOW 3,239,000-$ 811,000-$ 773,478-$ 313,434-$ 248,400-$ 183,367-$ 146,476-$ 383,584-$ 220,139-$ 162,166-$ 98,720-$ 58,248-$ 6,638,012-$

CUMULATIVE CASH FLOW 3,239,000-$ 4,050,000-$ 4,823,478-$ 5,136,912-$ 5,385,312-$ 5,568,679-$ 5,715,155-$ 6,098,739-$ 6,318,878-$ 6,481,044-$ 6,579,764-$ 6,638,012-$ -

Cash Flow Forecast 2019 20M

Cash Flow Forecast 2012 20MSingapore - Mar'20 Hong-Kong - Sep'20

Month Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total


Size of Target Market (Phillipines) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Malaysia) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Vietnam) 0.80% 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Singapore) 0.20% 0.40% 0.60% 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Hong Kong) 0.20% 0.30% 0.50% 0.70%

Vanig Market Share (2% +0.1%/m) $3,591,000 $3,591,000 $4,220,533 $4,850,067 $5,302,267 $5,754,467 $5,980,567 $6,206,667 $6,570,200 $6,751,967 $7,115,500 $7,479,033 67,413,267$



Seller Pro $50 30% 210000 280000 350000 150000 165000 180000 210000 225000 240000 270000 300000 330000 2910000

Pro Seller + Store Account $100 20% 180000 240000 300000 200000 220000 240000 280000 300000 320000 360000 400000 440000 3480000

Seller Comission Fees 10% 359,100$ 359,100$ 422,053$ 485,007$ 530,227$ 575,447$ 598,057$ 620,667$ 657,020$ 675,197$ 711,550$ 747,903$ 6,741,327$

Advertising Revenue 5% 179,550$ 179,550$ -$ 242,503$ 265,113$ 287,723$ 299,028$ 310,333$ 328,510$ 337,598$ 355,775$ 373,952$ 3,159,637$

Total Revenue 928,650$ 1,058,650$ 1,072,053$ 1,077,510$ 1,180,340$ 1,283,170$ 1,387,085$ 1,456,000$ 1,545,530$ 1,642,795$ 1,767,325$ 1,891,855$ 16,290,963$

One Time-Cost

Cash Capital

General Expenses

Advertising/Marketing $300,000 $300,000 $300,000 $300,000 $400,000 $400,000 $400,000 $500,000 $500,000 $500,000 $500,000 $500,000 $4,900,000

E-Commerce Staff $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $125,000 $125,000 $125,000 $1,275,000

Supply Chain Staff $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $125,000 $125,000 $125,000 $1,275,000

Mixed Integration Staff $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $125,000 $125,000 $125,000 $1,275,000


Rent/Lease Payments/Utlities $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $660,000

One Time-Cost










Research & Development $250,000 - - - - - - - - - - - $250,000

Misceallanous $250,000 - - - - - - - - - - - $250,000

Total Expenses $3,470,000 $770,000 $770,000 $770,000 $870,000 $870,000 $880,000 $1,010,000 $1,010,000 $1,085,000 $1,085,000 $1,085,000 $13,675,000

NET CASH FLOW 2,541,350-$ 288,650$ 302,053$ 307,510$ 310,340$ 413,170$ 507,085$ 446,000$ 535,530$ 557,795$ 682,325$ 806,855$ 2,615,963$

CUMULATIVE CASH FLOW 2,541,350-$ 2,252,700-$ 1,950,647-$ 1,643,137-$ 1,332,797-$ 919,627-$ 412,542-$ 33,458$ 568,988$ 1,126,783$ 1,809,108$ 2,615,963$ -

Cash Flow Forecast 2021 20MIndonesia Mar'21 India - Sep'21

Month Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Total


Size of Target Market (Phillipines) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Malaysia) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Vietnam) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Singapore) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Hong Kong) 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Indonesia) 0.20% 0.40% 0.60% 0.80% 0.90% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (India) 0.20% 0.30% 0.50% 0.70%




Seller Pro $50 30% 910,000$ 980,000$ 1,050,000$ 450,000$ 480,000$ 510,000$ 540,000$ 570,000$ 600,000$ 675,000$ 690,000$ 720,000$ 8,175,000$

Pro Seller + Store Account $100 20% 780,000$ 840,000$ 900,000$ 600,000$ 640,000$ 680,000$ 720,000$ 760,000$ 800,000$ 900,000$ 920,000$ 960,000$ 9,500,000$

Seller Comission Fees 10% 1,008,000$ 1,031,917$ 1,225,000$ 1,394,167$ 1,563,333$ 1,732,500$ 1,817,083$ 1,901,667$ 2,429,000$ 2,692,667$ 3,220,000$ 3,747,333$ 23,762,667$

Advertising Revenue 5% 504,000$ 515,958$ 612,500$ 697,083$ 781,667$ 866,250$ 908,542$ 950,833$ 1,214,500$ 1,346,333$ 1,610,000$ 1,873,667$ 11,881,333$

Total Revenue 3,202,000$ 3,367,875$ 3,787,500$ 3,141,250$ 3,465,000$ 3,788,750$ 3,985,625$ 4,182,500$ 5,043,500$ 5,614,000$ 6,440,000$ 7,301,000$ 53,319,000$

One Time-Cost

Cash Capital

General Expenses

Advertising/Marketing $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $12,000,000

E-Commerce Staff $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $150,000 $150,000 $150,000 $150,000 $150,000 $1,450,000




Rent/Lease Payments/Utlities $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $200,000 $200,000 $200,000 $1,950,000

One Time-Cost








Professional Services $1,000,000 - - - - - - - - - - - $1,000,000


Research & Development $1,000,000 - - - - - - - - - - - $1,000,000

Misceallanous $500,000 - - - - - - - - - - - $500,000

Total Expenses $8,050,000 $1,850,000 $1,850,000 $1,850,000 $1,850,000 $1,850,000 $1,850,000 $2,000,000 $2,000,000 $2,050,000 $2,050,000 $2,050,000 $29,300,000

NET CASH FLOW 4,848,000-$ 1,517,875$ 1,937,500$ 1,291,250$ 1,615,000$ 1,938,750$ 2,135,625$ 2,182,500$ 3,043,500$ 3,564,000$ 4,390,000$ 5,251,000$ 24,019,000$

CUMULATIVE CASH FLOW 4,848,000-$ 3,330,125-$ 1,392,625-$ 101,375-$ 1,513,625$ 3,452,375$ 5,588,000$ 7,770,500$ 10,814,000$ 14,378,000$ 18,768,000$ 24,019,000$ -

Cash Flow Forecast 2022 20MMonth Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Total


Size of Target Market (Phillipines) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Malaysia) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Vietnam) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% $0.12

Size of Target Market (Singapore) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Hong Kong) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (Indonesia) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Size of Target Market (India) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%




Seller Pro $50 30% 1,750,000$ 1,750,000$ 1,750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 750,000$ 12,000,000$

Pro Seller + Store Account $100 20% 1,500,000$ 1,500,000$ 1,500,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 13,500,000$

Seller Comission Fees 10% 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 3,861,338$ 46,336,055$

Advertising Revenue 5% 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 1,930,669$ 23,168,027$

Total Revenue 9,042,007$ 9,042,007$ 9,042,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 7,542,007$ 95,004,082$

One Time-Cost

Cash Capital

General Expenses

Advertising/Marketing $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $12,000,000

E-Commerce Staff $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $400,000 $400,000 $400,000 $400,000 $400,000 $3,750,000




Rent/Lease Payments/Utlities $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $3,600,000

One Time-Cost










Research & Development $1,000,000 - - - - - - - - - - - $1,000,000

Misceallanous $500,000 - - - - - - - - - - - $500,000

Total Expenses $8,050,000 $2,550,000 $2,550,000 $2,550,000 $2,550,000 $2,550,000 $2,550,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $38,350,000

NET CASH FLOW 992,007$ 6,492,007$ 6,492,007$ 4,992,007$ 4,992,007$ 4,992,007$ 4,992,007$ 4,542,007$ 4,542,007$ 4,542,007$ 4,542,007$ 4,542,007$ 56,654,082$

CUMULATIVE CASH FLOW 992,007$ 7,484,014$ 13,976,020$ 18,968,027$ 23,960,034$ 28,952,041$ 33,944,048$ 38,486,055$ 43,028,061$ 47,570,068$ 52,112,075$ 56,654,082$ -

Operational & rest of world roll out depends on revenue

Documents

Vanig Business Analysis v1...Business Model Alibaba mainly focuses on business-to-business trade but it still supports consumer trade through its e-commerce web portal Tmall (B2C),