CRAFTSVILLA

Presented by: Group 3, Section : S3 1. Anirvaan Ghosh 2. Dharma Teja 3. Jency John 4. Sameer Doda 5. Sarthak Mukkar 6. Sourabh Dang 12DM-022 12FN-043 12DM-065 12DM-126 12IB-041 12FN-133

7. 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.htm

Three 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 pittance Middlemen 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 artisans

CRAFTSVILLA ARTISAN FUND

help 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 Model

Craftsvilla

Craftsvilla

Intermediary

Owns customer relationship, data but not transaction

REVENUE MODEL

COST
payment gateway Photo-shoot, content writing, Marketing The shipping costs and everything else is done by the seller

15% commission on sales 20% if managing shipping also

BUSINESS STATS

Average 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 COMPETENCY

Acquiring sellers from remote places Attracting buyers

Marketing
Brand building for individual sellers

SUCCESS INDICATOR

1300+ 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 OUTLOOK

scaling 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

COMPETITORS
E-Bay.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

Shopo.com

Etsy.com

Mela.com

Shopleaf.com

SAP on cloud

DIFFERENCE FROM OTHER E-COMMERCE

MODEL

No discounts offered No stocks kept

Completely marketplace

CHALLENGE

How 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

WORK

Sustainable 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 India

 INTERNET PENETRATION ON RISE

Number 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-focusprofitablegrowth-rather-than-mindless-topline-growth-804281.html

 FEMALE AND YOUNG POPULATION ON RISE

Female population accounts for almost 40%, according to a joint study by apex industry body ASSOCHAM and 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 RISE

Currently, 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 shopping

 MOBILE INTERNET ON RISE IN RURAL

AREAS
mobile-internet usage mark to reach the 100 million mark in

one year The demand for mobile internet via smartphones is rapidly catching up in rural areas As 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 million Small 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 online

 E-COMMERCE ON RISE

India'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