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Pepperfry.com ORT Consultancy Group
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Disrupted in the furniture market based on new distribution channel
Situation 10 y old e-tailer Disrupted in the furniture market based on new distribution channel Knowledge of India market Strong relationship with suppliers Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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New entrants into the market
Complication Loses in the last years New entrants into the market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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How to maintain leadership and be profitable?
Challenge How to maintain leadership and be profitable? Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Threats Analysis Competitors
Online: horizontal market places & specialists Offline IKEA: Disruptor? Alliances between local suppliers: turn into competitors Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Opportunities Analysis Emerging furniture market
IKEA doesnt know local market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Strenghts Analysis Growth 7x in last 3 years
Packaging & Delivery (Pepcart) - > damage rate < 2% -> NPS over 60 ->Delivery rate 92% Consumer and suppliers knowledge & relationships -> Database information -> understand customer end to end cycl High negotiation power with manufacturers Curated list Growth 7x in last 3 years Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Weaknesses Analysis Losing in the last 5 years Only online sell
Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Analysis Situation Challenge Analysis Alternatives Recommendation
Implementation Finance Conclusion
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450 – 480 million internet user based
Analysis 450 – 480 million internet user based 90 – 100 million online 25 – 30 million Pepperfry target - 5.5 m registered customer - 60 % driven by repeat customer Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Decision criteria Leverage on your current strengths Increase revenue
Time to market Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Alternative #1 – International expansion
Decision criteria Detail Leverage on your current strengths Lack of experience in international markets. + Attractiveness of Indian culture Increase revenue - Implies investment in build branding and expansion process Time to market - Time costly Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Alternative #2 – Expansion to selling other products
Decision criteria Detail Leverage on your current strengths - Despite of knowing Indian market your brand is associated with furniture. Increase revenue = Investment in identify cross selling product. + Increase sales Time to market - Identify local suppliers and selection process Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Alternative #3 – Vertical integration: Start manufacturing furniture
Decision criteria Detail Leverage on your current strengths - Lack of experience in manufacturing. Not aligned with core competencies. Increase revenue Investment in factories Time to market - Long term strategy Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Alternative #4 – Strength your omnichannel strategy in India
Decision criteria Detail Leverage on your current strengths + Knowing of Indian furniture market. Increase revenue + Alliances with Air Bnb + Spin-off distribution and packaging to serve other companies. Time to market = Invest in R&D Strength foothold in Indian market From Online & Offline to Online & NEW Offline + Online to Offline Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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= Alternatives Decision criteria International expansion
Expansion to selling other products Vertical integration: Start manufacturing furniture Strength your omnichannel strategy in India Leverage on your current strengths Increase revenue = Time to market Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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R&D Pepcart Marketing Online to Offline Offline
Recommendation Strength your omnichannel strategy in India: leveraged on your core competencies R&D Pepcart Marketing Online to Offline Offline Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Implementation Situation Challenge Analysis Alternatives
Recommendation Implementation Finance Conclusion
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Financial Assumption: Current Fixed Cost Get Found: IPO Situation
Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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Risks Risk: other competitors succeed into the market
Market don’t grow as expected: company pioneer into the market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
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How to maintain leadership and be profitable?
Conclusion How to maintain leadership and be profitable? Strength your omnichannel strategy in India: leveraged on your core competencies R&D Pepcart Marketing Online to Offline Offline
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