SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India

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SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
SELLING ONLINE IN INDIA
BUSINESS SWEDEN
October 2015
India
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
AGENDA

 Background of this study
 Introduction to India
 E-retail market in India
 India entry cases
 Selling online for Swedish companies
 Business Sweden in India

BUSINESS SWEDEN                          10 DECEMBER, 2015   4
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
INDIA IS THE WORLD’S THIRD LARGEST ECONOMY
BASED ON PURCHASING POWER
  World’s largest economies                                           India’s GDP composition
  Nominal GDP at PPP, 2015                                            Share of total

          1. China                                             18,9

            2. USA                                            18,1                                           17%
                                                                          Agriculture      36%
           3. India                               7,9
                                                                                                             30%
         4. Japan                        4,8

    5. Germany                        3,8                                                  26%
                                                                          Industry
        6. Russia                       4,3
                                                                                                             53%
          7. Brazil                 3,2                                   Services         38%
    8. Indonesia                   2,8

    40. Sweden               0,4                                                         1980-81           2014-15

              India has surpassed Japan to become the world’s 3rd largest economy in PPP terms
              This has been enabled by a massive economical shift from agriculture to services over the course
               of thirty years
              Focus now on growing the manufacturing share of the economy – “Make in India”
SOURCE: RESERVE BANK OF INDIA, IMF, ECONOMIC TIMES OF INDIA

BUSINESS SWEDEN                                                                                             10 DECEMBER, 2015   5
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
THE COUNTRY IS SET TO BECOME ONE OF THREE
DOMINANT ECONOMIES GLOBALLY
  GDP at Purchasing Power Parity
  Share of world total

                     28%

                                                     23%

                                               18%                                                               2060: Second
      17%                                                       16%   17%
                                                                                                                 only to China

                                                                                                                 2030: Parity with
                                                                               9%                                Euro area
                                7%
                                                                                    4%            3%   4%
                                                                                                             2%

             China                     India               US          Euro Area         Brazil         Russia

                                                           2011   2030      2060

SOURCE: OECD ECONOMIC POLICY PAPERS, 2012

BUSINESS SWEDEN                                                                                                     10 DECEMBER, 2015   6
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
INCREASED DISPOSABLE INCOME AMONG YOUNGER
PEOPLE LEADS TO MORE DISCRETIONARY SPENDING
  Gross disposable income per household
  USD

                                                                                                              Sweet spot
   6 000                        +40% in 4 years
   5 000

                                                                         % of total earners in age
   4 000
   3 000
   2 000

                                                                         income band
   1 000
          0
                  2010        2011        2012        2013        2014

               Increasing disposable income leading to more demand for discretionary items like fashion apparels,
                home décor etc.
               The population aged 25-39 have the highest ‘collective’ gross income
               In the coming five years, this age group will continue to have the highest gross income in India

SOURCE: EUROMONITOR, INCOME AND EXPENDITURE: INDIA, DATAMONITOR

BUSINESS SWEDEN                                                                                              10 DECEMBER, 2015   7
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
INDIAN CONSUMERS ARE MOVING FROM PRICE
CONSCIOUS TO BRAND CONSCIOUS
                                                                            India’s first
                                                                             H&M store
                                                                             opened on
                                                                             02 Oct 2015
   Shopping becoming an experience, not a
    necessity
        Higher income levels are increasing the
         interest in brands
        Shopping for basic goods and food is
         often done by servants and maids.
         Shopping for discretionary items is
         therefore more of an entertainment
   Brand consciousness and demonstration                  GUCCI store
    effect supports retail sales to a large extent          in New
                                                            Delhi, India
   Increased availability of credit and use of
    ‘plastic money’ have contributed to a strong
    and growing consumer culture in India

SOURCE: ECONOMIC TIMES, GUCCI, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                            10 DECEMBER, 2015   9
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
CUSTOMERS ARE NOW SPREAD ACROSS THE COUNTRY
AND NOT JUST RESTRICTED TO METROS
  Urban agglomeration / cities in India

                                                                     19 cities with more than 2 million people and
                                                                      additional 34 cities above 1 million people
                                                                     Various strategies applied to reach right consumers
                                                                       “Skimming” in tier-I cities becoming less relevant
                                                                        (but can still work – e.g. Jimmy Choo in
                                                                        Chandigarh)
                                                                       Brand-building in metro’s and subsequent
                                                                        cascading to tier-II cities
                                                                       Some retailers have seen positive effects from
                                                                        focusing on a few tier-II cities instead of going
                                                                        for all-India

                                          Above 10 Mn inhabitants    Lately, foreign retailers are using e-tailing to reach
                                                                      affluent customers spread across metros, tier I-IV
                                          Above 4 Mn inhabitants      cities and small towns
                                          Above 2 Mn inhabitants

SOURCE: CENSUS OF INDIA

BUSINESS SWEDEN                                                                                               10 DECEMBER, 2015   10
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
AGENDA

 Background of this study
 Introduction to India
 E-retail market in India
 India entry cases
 Selling online for Swedish companies
 Business Sweden in India

BUSINESS SWEDEN                          10 DECEMBER, 2015   11
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
IN 3 YEARS, APAC RETAIL SALES IS EXPECTED TO
OVERTAKE EUROPE AND N. AMERICA COMBINED

                     Retail sales (USD trillion)       2012      16.2               2015F   18.4          2018F        22.8

          CAGR %                                                           4
                                                                                4,9
                           5
                                                                     4,3                                          11
                               5,0                        4,1
                     4,3                                                                                               10,3
              3,8
                                                                                                            7,6
                                                                                                   6,3
                                                         2012       2015F 2018F

          2012      2015F 2018F
                                                                               10
                                                              0,5       0,6         0,8
                                                                                                   2012    2015F 2018F
                                             4
                                                              2012    2015F 2018F
                               1,4     1,5       1,7

                               2012   2015F 2018F

SOURCE: PWC

BUSINESS SWEDEN                                                                                                        10 DECEMBER, 2015   12
SELLING ONLINE IN INDIA - BUSINESS SWEDEN October 2015 India
INDIAN RETAIL MARKET SIZE IS SIMILAR TO THAT OF
GERMANY

 Retail sector market size
 2013-2014, USD billion, selected major markets

                                                3 190         3 080

                                                                      1 600
                                                                                            534                  518                  495           234
          Market size
                                                 USA          China   Japan                India             Germany                   UK         Nordic

                                                 318          1,393    126                1,267                   82                    64           25

     Population (million)

                                                 10.0          2.2     12.7                  0.4                  6.3                   7.7          9.3
 Per capita spend on retail
     (USD’ thousand)
                                                                      Highest            Lowest
SOURCE: STATISTA, GFK, GTAI, IBEF, BUSINESS SWEDEN ANALYSIS                   NORDIC: SWEDEN (81), NORWAY (62), DENMARK (49), FINLAND (42)

BUSINESS SWEDEN                                                                                                                               10 DECEMBER, 2015   13
E-RETAIL MARKET IS WITNESSING ROBUST GROWTH
AND WILL QUADRUPLE IN THE NEXT 6 YEARS

 E-tailing industry in India
 (USD billion)

                    Infancy                                                         Rapid growth

                                                                                                                           22,2
                                                                                                              19,9
                                                                                   CAGR              17,5
                                                                                    27%
                                                                                            14,1
                                      CAGR                                         10,6
                                       52%
                                                                          7,6
                                                                  5,3
                                                        3,5
                         1,5            2,3
         1,0

        2010            2011           2012            2013       2014   2015 E   2016 E   2017 E   2018 E   2019 E      2020 E
         E-tailing industry in India is estimated to reach USD 22-30 billion by 2020
         During the past decade, e-retail sector was held back due to factors such as lower internet penetration,
          poor mobile internet connection, Indian retail consumers’ can’t touch, won’t buy mentality, trust on genuinity
          of products sold online, and limited availability of product categories online
SOURCE: PWC, BCG, TECHNOPAK, STATISTA, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                                       10 DECEMBER, 2015   16
E-TAILING WILL BE DRIVEN BY INCREASING ACCESS,
LOWER ONLINE PRICE & HIGHER DISPOSABLE INCOME

                  1   Increase in the number of internet users and internet penetration

                      2       Leapfrog from no internet to mobile

                          3     Demographic shift towards higher disposable income

                          4     Online lower prices, deals and discounts

                      5       Positive PE / VC sentiment and inflow of investments

                  6   Innovative tweaks to retail business model

BUSINESS SWEDEN                                                                           10 DECEMBER, 2015   17
INCREASING NUMBER OF INTERNET USERS WILL OPEN
UP NON-TRADITIONAL CATEGORIES
                                                                                                                 How is it shaping e-retail
    E-retail drivers                                               Description
                                                                                                                          industry
                                                                                                      243       E-retailers are able to sell
                                            Internet users (million)                                             more number of units of
                                            Internet penetration (%)                                             current products
                                                                                                                Adding new product lines
                                                                                            155                  to satisfy wider consumers
1                                                                                                                needs
                                                                                                                Finding niche segments to
 Increase in the
                                                                                 90                              garner first-mover-
    number of
                                                                                                                 advantage
  internet users
   and internet                                                            51                                   Entry of new e-retailers
   penetration                                                     32                                            with innovate business
                                                  16          21
                                       5                                                                19,9     concepts
                                                                                      7,5      12,5
                                       0,5  1,5  1,9  2,8  4,3
                                    2000 2002 2004 2006 2008 2010                           2012   2014

                                  Internet users has grown 11 times in the past decade
                                  By 2018, internet users will double and cross 500 million users
SOURCE: KPMG, INTERNET LIVE STATS, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                                              10 DECEMBER, 2015   18
‘SHOPPING ON THE GO’ USING MOBILE HAS SHAPED
APP-ONLY MODEL
                                                                                                     How is it shaping e-retail
    E-retail drivers                                              Description
                                                                                                              industry
                                                                                                    E-retailers are
                                                                                                     experimenting with and
                                               Mobile internet users (million)                       enhancing their App-
                                                                                           314
                                                                                                     platforms
                                                                                                    Myntra, India's largest
                                                                                  236                online fashion retailer has
                                                                      213
2                                                                                                    shut down its website and
                                                          159                                        switched to an app-only
  Leapfrog from                                                                                      channel since May 2015
  no internet to                         110
                                                                                                    News reports suggest
     mobile
                                                                                                     Flipkart, India’s largest
                                                                                                     ecommerce player is
                                                                                                     planning to go app-only
                                                                                                     from September 2015
                                        2013              2014      2015 E       2016 E   2017 E

                                  Indian consumers in rural areas and tier-III cities are
                                   leapfrogging from no internet to mobile towards smartphone
                                   revolution, skipping the desktop PC and laptop steps
SOURCE: KPMG, IAMAI, STATISTA, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                                  10 DECEMBER, 2015   19
LOWER ONLINE PRICES AND DISCOUNTS TO PULL MORE
CONSUMERS TOWARDS E-TAIL
                                                                               How is it shaping e-retail
    E-retail drivers                                           Description
                                                                                        industry
                                                                              In order to attract new
                                                                               customers and capture a
                                                                               larger market share, e-
                                                                               retailers have come up with
                                                                               lower pricing on products
                                                                               vis-a-vis brick-and-mortar
                                                                               stores, flash sales,
4
                                                                               seasonal sales and more
   Online lower                                                               Bonus discounts for
   prices, deals                                                               purchases made through
  and discounts                                                                App-only

SOURCE: AMAZON, FLIPKART, SNAPDEAL, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                           10 DECEMBER, 2015   21
INNOVATIVE TWEAKS TO FILL-IN THE BUSINESS MODEL
GAPS SUCH AS…

    E-retail drivers                               Description                              How is it shaping e-retail industry

                                               Indian customers have started       Major e-retailers are expanding their delivery
                                   Free and     to expect door delivery of           reach to interior parts of India
                                    quick       goods, from small pocket book
                                                                                    For instance, Amazon India has chosen India
                                    home        to a large furniture, free of
                                                                                     Post as its primary delivery partner servicing
                                   delivery     charge or at a minimal cost
                                                                                     over 19,000 pin-codes through 140,000 post-
                                                                                     offices across the country
6
                                               Certain consumers might want        E-retailers have come-up with a friendly return
   Innovative                      Friendly     to return damaged/ defective         policy, wherein consumers can return
 tweaks to retail                   return      goods, whereas others might          damaged/defective goods with 7-30 days
    business                        policy      have a second thought about          timeframe depending on the product category
     model                                      purchasing a particular product

                                               India has lower credit and debit    E-retailers gambled and introduced ‘Cash on
                                                card penetration                     Delivery’ system, a unique collection process
                                   Cash on                                           that allowed the customer to make cash
                                               350 million debit cards and 19
                                   delivery                                          payments upon receiving the goods
                                                million credit cards in 2014, as
                                                per Reserve Bank of India           Today, all major e-retailers have cash on delivery
                                                                                     as a payment option
SOURCE: BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                                        10 DECEMBER, 2015   23
…CASH ON DELIVERY, MAKING IT THE MOST WIDELY
USED PAYMENT MODE

 Mode of payment in Indian e-tailing industry
 2014

                                                                                         Cash on delivery is a popular mode of
            45%
                                                                                          payment and has been one of the
                                                                                          defining pillars of India's ecommerce
                                                                                          boom. Every 1 out of 2 payments are
                                                                                          made through cash on delivery
                                                                                         37% of online Indian shoppers pay
                                                                                          through debit and credit card mode of
                                21%                                                       payment
                                                   16%                                   Mobile wallets, which have seen a
                                                                                          surge of activity in the last few
                                                              10%
                                                                            8%            months, contribute 8% of all
                                                                                          payments
                                                                                         In India, many customers tend to
                                                                                          prefer cash on delivery as the online
        Cash on            Debit card          Credit card   Internet   Mobile wallet
                                                                                          payment modes are yet to catch up in
        delivery                                             banking
                                                                                          many parts of the country

SOURCE: TRAK.IN, IAMAI, BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                                 10 DECEMBER, 2015   24
OVERALL, INDIAN CONSUMERS SEEM WILLING TO BUY
MOST THINGS ONLINE
% respondents who said they have bought category online during 3 month period (May-July 2014)

 Product categories                 Global avg.   India            US               UK        Germany         Japan              China

 Electronics                             77%      79%             83%               84%        90%             53%                96%

 Home appliances                         59%      67%             46%               65%        58%             41%                83%

 Home furnishings                        53%      59%             56%               65%        66%             53%                65%

 Apparel & fashion                       76%      84%             87%               85%        88%             66%                97%

 Sports & outdoor                        52%      52%             56%               53%        66%             36%                78%

 Beauty products                         57%      68%             50%               56%        62%             48%                85%

 Household items                         45%      60%             36%               48%        40%             41%                84%

 Groceries                               45%      52%             26%               60%        36%             68%                90%

 Toys, kids, babies                      49%      61%             48%               53%        49%             32%                75%

 Music & games                           62%      65%             74%               75%        66%             46%                69%

 Books                                   73%      70%             82%               82%        80%             65%                89%

           >75% have bought the category online     50%-75% have bought the category online
INDIA’S E-TAILING ECOSYSTEM HAS PLATFORMS FOR
EVERY CATEGORY

 Big 3
 Horizontal online
 market place

                                   Apparel and fashion

                                       Furnishing

 Vertical product
 category champions                     Grocery

                                   Beauty and wellness

                                                     .
                                                     .
                                              and more

SOURCE: BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                          10 DECEMBER, 2015   27
HEATING COMPETITION BETWEEN BIG THREE
HORIZONTAL ONLINE MARKETPLACES

 E-retailing market share by players                             Year started                              Oct 2007                        Jun 2013                        Feb 2010
 2014, by GMV*
                                                                 Marketplace since                         Apr 2013                        Jun 2013                        Sep 2011

                   Rest                                          Revenue (2013-14)                   USD 451 million                  USD 27 million                  USD 26 million
                    9%
                                                                 Annual GMV *                        USD 4.5 billion                 USD 2.0 billion                  USD 3.5 billion
          Amazon
          15%                                                    Unique visitors
                                           Flipkart                                                     23.5 million                    23.6 million                     17.9 million
                                                                 (UV)**
                                               44%
                                                                 % change in UV***                             80%                            142%                               90%
                                                                 Registered
                                                                                                          45 million                      25 million                      40 million
                                                                 customers
        Snapdeal
                                                                 # of sellers                                30,000                          18,000                         100,000
           32%
                                                                 Product range                           10+ million                       17 million                     10+ million

                                                                 Funding so far                       USD 3.2 billion                 USD 2.0 billion                 USD 1.1 billion

                                                                                         * GMV: Gross Merchandise Value - total sales value of the merchandise sold in 2014-15
SOURCE: MORGAN STANLEY IN BUSINESS STANDARD , ECONOMIC TIMES, CRUSHBASE.COM, FINANCIAL   ** For the month of May 2015
EXPRESS, BUSINESS TODAY                                                                  *** % change in in the number of unique visitors since May 2014 to May 2015

BUSINESS SWEDEN                                                                                                                                                     10 DECEMBER, 2015   28
FOUR TYPES OF ONLINE RETAILERS AND
MARKETPLACES

 Pure inventory led model             Hybrid model               Managed marketplace              Pure marketplace

 Sells only owned inventory  Sells owned inventory           No owned inventory            No owned inventory

 Does not sell 3rd party       Sells 3rd party products      Sells only 3rd party          Sells only 3rd party
  products                       also                           products                       products

 No used goods                 No used goods                 No used goods                 Used goods are allowed

 Prices are fixed              Prices are fixed              Prices are fixed              Prices are discovered

 Control on fulfillment and    Control on fulfillment and    Control on fulfillment and    No control over fulfillment
  return                         return                         return                         and returns

SOURCE: INFOSYS, PWC

BUSINESS SWEDEN                                                                                          10 DECEMBER, 2015   29
MYNTRA: AMBITIOUS PLANS TO TIE-UP WITH 40-50
FOREIGN BRANDS OVER THE COMING 6-12 MONTHS
                                                                                        Foreign brand tie up
                                         Myntra

                                                                 International
        Private label               Multiple brands
                                                                   business
 For in-house designed          Caters to brands           Caters to foreign
  brands                          currently sold in India     brands with no
                                  through brick-and-          presence in India
                                  mortar

                                                                    2016

                                                             Target of adding 40-50
                                          2015                international brands by
                                                              first half of 2016
                                 Currently 20 global
             2014
                                  brands sell through
 Started international           this platform
  business division with         Major brands are from
  a focus on brining              the US, UK and
  foreign retailers into          Europe
  India
SOURCE: INTERVIEW WITH MYNTRA

BUSINESS SWEDEN                                                                                   10 DECEMBER, 2015   31
AGENDA

 Background of this study
 Introduction to India
 E-retail market in India
 India entry cases
 Selling online for Swedish companies
 Business Sweden in India

BUSINESS SWEDEN                          10 DECEMBER, 2015   33
MOTOROLA: THE TREND SETTER IN E-TAILING ONLY
ROUTE
 Motorola Mobility re-entered the Indian                              FLIPKART WEB-PAGE DURING THE LAUNCH OF MOTOROLA PHONE
  market in February 2014 (after shutting
  down its Indian website in Nov 2012)
 Selected e-retail only channel for re-entry
 Tied-up an exclusive agreement with
  Flipkart
 Sold 2.5 million handsets over 9 month
  period or 9,200 units per day (Feb-Oct
  2014)
 Witnessed a sharp turnaround within 9
  months, based solely on ecommerce
  platform
 So far launched multiple products through
  this route: Moto G, Moto E, Moto X, Moto
  G (2nd gen), Moto X (2nd gen) and Moto
  G (3rd gen)
 Will continue to be an online-only player
  and partner exclusively with Flipkart

SOURCE: THE HINDU, BUSINESS INSIDER, TECH CIRCLE, TRAK.IN, BGR MEDIA

BUSINESS SWEDEN                                                                                                  10 DECEMBER, 2015   34
ENTERING INDIA THROUGH ONLINE-ONLY CHANNEL:
BRITISH BRAND DOROTHY PERKINS
                             Dorothy Perkins, a UK-based fast
                              fashion and apparel brand, entered the
                              Indian market through Jabong in March
                              2014
                             Signed a three year exclusive contract
                             In less than a year (February 2015),
                              Dorothy Perkins emerged as one of the
                              top three women apparel brands selling on
                              Jabong
                             70% of its sales in India comes from
                              dresses and the rest from bags, shoes
                              and accessories
                             Products are priced at par with global
                              pricing at INR 1,500-5,000 (SEK 185-650)
                             "Print ads and bloggers' opinion writing
                              would be our next step to promote the
                              brand. A brand ambassador programme is
                              also in our priority list“
                                                              - Alex Maw
                                      Marketing Director, Dorothy Perkins
SOURCE: INFOSYS, PWC

BUSINESS SWEDEN                                          10 DECEMBER, 2015   35
SWEDEN’S SCA: SALES RAMP-UP THROUGH E-TAILING
CHANNEL

 SCA is present in India since 2011
     Selling major brands such as Libero (diapers),
      Tempo (tissues), Tork (paper hand towels) and
      Tena (adult diapers)
 In 2014, SCA decided to ramp-up its India
  operations and to become a significant player
     Focus on e-commerce channel to distribute
      products
     Tied up with leading e-tailing portals such as
      Snapdeal, Firstcry, Amazon, and PayTM to
      reach out to the Indian consumers in the tier 2
      and 3 cities
 “Currently, online sales account for more than 20%
  of India sales and is exploding”
                                       - Cecilia Edebo
                      Managing Director at SCA India

SOURCE: FORBES INDIA, SCA, BUSINESS LINE, INDIA RETAILING

BUSINESS SWEDEN                                             10 DECEMBER, 2015   36
TESTING THRU E-TAIL AND EXPANSION TO BRICK-AND-
MORTAR STORES: SPANISH BRAND DESIGUAL
                                                            Desigual entered the Indian market through an exculsive deal with etailer Jabong
      India entry thru e-tail route                          in December 2012

                                                            Inked an exclusive tie-up with Myntra in April 2014, following contract expiry with
      Change of e-tailing partner                            Jabong

                                                            Entered brick-and-mortar space by partnering with Shoppers Stop in April 2015
     Launch of brick-and-mortar
               format                                       Launched a first-of-its-kind Desigual shop-in-shop located at the Shoppers Stop
                                                             store in Mumbai

                                                            Scale-up of brick-and-mortar presence through ‘travel retail stores’ in partnership
   Scaling-up of brick-and-mortar                            with The Nuance Group
                                                            Opened duty free outlets at Mumbai and Bangalore international airports

SOURCE: INDIAN RETAILER, FASHION UNITED, FIRST REPORT, FRONTIER MAGAZINE

BUSINESS SWEDEN                                                                                                                 10 DECEMBER, 2015   37
AGENDA

 Background of this study
 Introduction to India
 E-retail market in India
 India entry cases
 Selling online for Swedish companies
 Business Sweden in India

BUSINESS SWEDEN                          10 DECEMBER, 2015   38
ADVANTAGES FROM GOING THE E-RETAIL ROUTE

                                       Get instant access to (almost) the entire Indian sub-continent
                         Reach         Reach affluent customers with high spending power in tier I-IV
                                        cities and small towns accounting for 40-70% of e-tail sales

                                       Take advantage of marketing support for promoting brand visibility,
            Marketing and analytics     sales promotion, and product launch assistance
                   support
                                       Make use of analytics for optimizing and focusing sales effort

                                       Lower investment and low working capital requirement vis-à-vis
                  Working capital       traditional brick-and-mortar route
                                       Try new markets while focusing on your core markets and activities

SOURCE: BUSINESS SWEDEN ANALYSIS

BUSINESS SWEDEN                                                                                   10 DECEMBER, 2015   39
THREE WAYS TO GET ONLINE FOR SWEDISH BRANDS

                  Go through local distributor with significant online
             1
                  presence                                                  (Flipkart)   (Amazon India)

             2    Direct tie-up with e-retailer

                  Go through an international market place via boutique /
             3
                  authorized reseller in Europe

BUSINESS SWEDEN                                                                             10 DECEMBER, 2015   40
1. GO THROUGH LOCAL DISTRIBUTOR WITH
SIGNIFICANT ONLINE PRESENCE

              Sweden                                     India

                              Local distributor          E-retail platform
        Swedish brand
                                (WS Retail)                 (Flipkart)

  Swedish brand ships     Inventory maintained      Products picked from    Places order for
   goods to WS Retail       by WS Retail               WS Retail, packed        products
                                                       and delivered

  Shipping time of 10-    2-5 days                  1-4 days
   15 days

  Receives money          Deducts warehousing       Deducts commission,     Customer makes
   less all costs from      charges, commission        out-bound logistics      total bill payment
   distributor              and in-bound logistics     and payment charges      to Flipkart
                            from payment               from the total
                            received by Flipkart       payment made by
                                                       customer
BUSINESS SWEDEN                                                                10 DECEMBER, 2015   41
2. DIRECT TIE-UP WITH E-RETAILER

                  Sweden                              India

                              E-retail platform
        Swedish brand
                                  (Myntra)

  Swedish brand ships      Inventory maintained by           Places order for
   goods to Myntra           Myntra                             products
   warehouse                Products shipped to
                             customers

  Shipping time of 10-     1-5 days
   15 days

  Receives money           Deducts commission,               Customer makes
   less all costs from       logistics, warehousing             total bill payment
   Myntra                    and payment charges                to Myntra
                             from the total payment
                             made by customer
BUSINESS SWEDEN                                                10 DECEMBER, 2015   42
AGENDA

 Background of this study
 Introduction to India
 E-retail market in India
 India entry cases
 Selling online for Swedish companies
 Business Sweden in India

BUSINESS SWEDEN                          10 DECEMBER, 2015   45
BUSINESS SWEDEN INCREASES BUSINESS ABROAD
WHILE ATTRACTING INVESTMENTS TO SWEDEN

 OUR VISION
   GROWING SWEDEN BY BEING A WORLD CLASS
           PROMOTER OF TRADE AND INVESTMENTS

           OUR MISSION
           WE ACCELERATE AND FACILITATE BUSINESS
           WITH SWEDEN

           OUR OWNERSHIP
           JOINTLY OWNED BY THE SWEDISH
           GOVERNMENT AND BUSINESS SECTOR, WE
           OFFER THE BEST OF BOTH WORLDS

BUSINESS SWEDEN                                    10 DECEMBER, 2015   46
WITH OFFICES IN 57 COUNTRIES, BUSINESS SWEDEN IS
WELL POSITIONED TO GROW SWEDEN

BUSINESS SWEDEN                           10 DECEMBER, 2015   47
BUSINESS SWEDEN HELPS SWEDISH COMPANIES FULFIL
THEIR INTERNATIONAL POTENTIAL
BUSINESS SWEDEN INTERNATIONALISATION SERVICES

   EVALUATE                        CHOOSE                           ESTABLISH                         GROW
   OPPORTUNITIES                   STRATEGY                         PRESENCE                          BUSINESS

Examine opportunities            Understand market and            Establish presence in             Develop and grow your
and choose market                define entry strategy            foreign markets                   international business
 Export Information              Market Analysis                 Incorporation                    Sales and Marketing
 Steps to Export                                                  Business Support Office           Support
                                  Visiting Program
 Trade Facilitation                                               Acquisition Support              Operational Support
                                  Market Entry Strategy
 Market Selection Analysis                                        Recruitment Services             Business Development
                                  Partner Search
                                                                   Sourcing Services                BSO Connect
                                  Bus. Opportunity Project

                                               PROMOTIONAL ACTIVITIES

 Swedish companies can use the official brand of Sweden to open doors and acquire new contacts. Business Sweden
 arranges seminars, site visits, trade fairs, delegations, conferences and many other activities to strengthen brands and to
 increase the visibility for Swedish companies

BUSINESS SWEDEN                                                                                                    10 DECEMBER, 2015   48
25 COLLEAGUES ACROSS TWO OFFICES IN INDIA

                  Experience                 Presence                 Knowledge                    Network

     Established in 1996           Two offices                 25 experienced                Represent Official
      Export support               New Delhi and Bangalore   consultants                   Sweden in India
       activities in India since    Additional support         Focus on international       Dual ownership
       the 1950s in Kolkata          through Swedish             business development          between Swedish Gov
       and Mumbai                    Consulates in Mumbai,      Mainly locally employed       and Industry
      Yearly Track Record:          Chennai and Kolkata        Speak 10 languages           Brand Sweden
        250 projects               Support across South        combined                     Swedish Embassy
        20 incorporations           Asia through Swedish       Combination of industrial    Swedish companies
        600 queries                 Consulates in               and consulting               Indian business and,
      Four experienced              Bangladesh and Sri          experience                    government bodies
       investment advisers           Lanka

BUSINESS SWEDEN                                                                                           10 DECEMBER, 2015   49
WE CAN HELP YOU FROM PLANNING TO EXECUTION

                                Conduct a brief market check on the Indian market
        Market check

                                A deep-dive study aimed at understanding the Indian market
        Market analysis

                                Local partner / distributor identification that fits your requirement
        Partner search

                                Support you in meeting distributors / e-retailers through visiting program
        Visiting program

                                Presentation by Business Sweden representative to selected prominent three to five
        Local representation     e-retailers

                                Express your brand interest in India
        Marketing support
                                Collection of product catalogues from e-retailers

BUSINESS SWEDEN                                                                                          10 DECEMBER, 2015   50
CONTACT US
BUSINESS SWEDEN IN INDIA

NEW DELHI                                BANGALORE                        We are located in India since
Business Sweden                          Business Sweden                  1995 and have offices in
Embassy of Sweden, Nyaya Marg,           Kheny Chambers, 4/2 Cunningham   Bangalore and New Delhi.
Chanakya Puri, New Delhi-110021, INDIA   Road, Bangalore 560052           From our offices in India, we also
T +91 11 46067100                        T: +91 80 415 29100              cover Afghanistan, Bangladesh,
Indien@business-sweden.se                Indien@business-sweden.se        Bhutan, Maldives, Nepal,
www.business-sweden.se/indien            www.business-sweden.se/indien    Pakistan and Sri Lanka
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