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SNAPDEAL V2.O? “Ticket to Redemption or a shot in the Dark?”
Prepared by: Dhroov SharmaManav Singh
ABOUT SNAPDEAL
SnapDeal is an Indian e-commerce company incorporated in
February 2010 as a daily deal platform inspired by groupon.com but
expended in September 2011 to become an online market place. The
company is based in New Delhi. The CEO of the company is Kunal
Bahl and Rohit Bansal
Investors
47 50
133105
627
500
200
113
0
100
200
300
400
500
600
700
2011, Nexusventure & Indo-
US venture
2011, Ebay 2014, Ebay 2014, Blackrock 2014, Softbank 2015, AlibabaGroup
2015, JasperInfotech
2017, Nexusventure
Round of Funding ($ mn)
Funding ($ mn)
JOURNEY OF SNAPDEAL
2010
2012
2013
2011
Feb 10
Gets Launched as online
deals merchant.
Jun 10
Acquires Grabbon, Banglore
based deals Company
Jan 11
Attracts 1st investor i.e Nexus
Venture ($10 million)
Dec 11
Decides to shut down deals
& start offering products
Jan 12
Initiates Marketplace as 1st 10
sellers come to sell wares
Dec 12
Closes the year with 1000
sellers selling their products
Apr 13
Gets investment from global
e-commerce giant eBay.
Jul 13
Hits a milestone of 20k+
sellers selling their products
JOURNEY OF SNAPDEAL
2015
Snapdeal v2.0
2014
Feb 14
Receives second round of
funding from eBay - $133 millAug 14
Got funding from
Industrialist Mr. Ratan Tata
Oct 14
Gets $627 mil funding from
Japanese corp, Softbank
Apr 15
Acquires Freecharge, India’s
leading website for recharges
Sep 16
Snapdeal unveils a new brand
identity with Unbox Zindagi
COMPETITORS ANALYSIS
0
5
10
15
20
25
30
35
40
45
50
2014 2015 2016 2017
Competitor's Market Share (%)
Snapdeal
Amazon
Flipkart
Others
• Above graph shows that till 2015 snapdeal was doing very
good but after 2015 it’s share decreased rapidly.
GROWTH OF THE COMPANY
• In Initial stage snapdeal received less amount of funding from
Investors because of new startup in E-commerce sector
• Later, Snapdeal received good amount of funding from
investors and more number of Investors showed their keen
interest in their business
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
0.00 Sep-09 Jan-11 Jul-11 Apr-13 Feb-14 May-14 Oct-14 Apr-15
2 8 40 50 134 100
637
2506 22
208 216
682
100
1779
5000
Round of Funding ($mm)
Implied Valuation ($mm)
PAST APPROACHES OF THE COMPANY
Started their journey with the slogan
“Bachatey raho!” with the motive of
providing everything in cheaper prices.
Bachatey raho! was not successful as
company was expecting, so they rebrand
their slogan with “dil ki deal” and choose
Aamir khan as their brand ambassador
After the succession of “dil ki deal” they
reached to maturity stage so to be in
growth the again, they rebrand themself
with new ideas and new slogan “unbox
zindagi”
CURRENT MARKET SCENARIO
• As per below graph, the monthly users for snapdeal is decreasing
drastically. While other bands are increasing their market share with
new ideas, because of stagnation in snapdeal that’s why they decrease
• Due to this, customers preference is also changing from snapdeal to
filpkart
• As per 2016, 61% customers preferred flipkart while only 28%
choose snapdeal for purchasing
0
5
10
15
20
25
30
35
40
45
50
Ap
r-1
4
May
-14
Jun
-14
Jul-
14
Au
g-1
4
Sep
-14
Oct
-14
No
v-1
4
De
c-1
4
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Monthly Active Users (%)
Amazon
Flipkart
Snapdeal
INTERNET USERS IN INDIA
• Indian market is in the favor of Ecommerce and India is becoming
digital
• Internet users are increasing day by day in India, can be seen in
below graph. Though this we can see the future growth in the
market
189.6
278
354
427
503
0
100
200
300
400
500
600
2013 2014 2015 2016 2017
Internet Users in India(mn)
Internet Users
E-COMMERCE GROWTH IN INDIA
• People are changing their preference from traditional purchase to
modern purchase and due to this E-commerce is growing rapidly
can be seen in below graph
0
5
10
15
20
25
30
35
20102011
20122013
20142015
2016
5.3 79.5 9.5
16.4
21.4
30.2
E-Commerce Growth in India ($bn)
Growth ($bn)
FUTURE FORECAST
• As per the rapid growth of E-commerce & M-commerce market
in current scenario, we can assume that the E-commerce & M-
commerce market will get more penetrate in Indian market in the
near future
10.3 16.02 23.42 31.39 38.9 47.45
77.7%
55.5%
46.2%
34.1%
23.9% 22%
0
10
20
30
40
50
60
70
80
90
2015 2016 2017 2018 2019 2020
Retail eCommerce Sales in India (Forecasted)
Sales ($bn) Growth (YoY)
6.0210.46
16.81
23.64
30.2
37.96
58.5%
65.3%
71.8%
75.3% 77.6% 80%
0
10
20
30
40
50
60
70
80
90
2015 2016 2017 2018 2019 2020
Retail mCommerce Sales in India (Forecasted)
Sales ($bn) % of Retail eCommerce Sales
• So, as above points we can conclude that snapdeal have great
opportunity to penetrate in the market again
RECOMMENDED STRATEGIES IN v2.0
• Improving the quality of customer services.
• Product range will be tip to toe.
• Product will be delivered within 48 hours.
• Improved and attractive packaging.
• Use of mass communication for promotion.
• Launching the TV channel for the customers who found difficulties
in surfing Internet.
• Telephonic order can be placed.
• Service will available in all the cities.
• More secure payment method.
• Tie up with the more merchant bank.
• More combo and attractive deals.
• Just in time inventory
• Snapdeal Supreme for videos and games.