Crafts Villa 1 4z1m1m

CRAFTSVILLA Presented by: Group 3, Section : S3 1. Anirvaan Ghosh

12DM-022

2. Dharma Teja

12FN-043

3. Jency John

12DM-065

4. Sameer Doda

12DM-126

5. Sarthak Mukkar

12IB-041

6. Sourabh Dang

12FN-133

7. Tripti Bansal

12FN-146

HANDICRAFT SECTOR: INDIA

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$100 billion industry worldwide

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Indian market:$7 billion

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The total exports of crafts items: Rs. 13412.92 Crore.

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Industry’s share in India's exports: 1.51 %

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over 4 Million artisans and designers

http://www.epch.in/hed.htm

Three major ways of selling: 

Sell to major retail stores in India

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Export to shops and buyers overseas

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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

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No middlemen

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Bringing buyers and sellers on same platform

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Marketing to sellers

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Craftsvilla studio: Provide to artisans to go online, in selecting products and taking picture

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Brand Building for artisans

CRAFTSVILLA ARTISAN FUND 

help artisans get raw materials and to fund their kids’ education.

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helps them continue the traditional art forms and does not lure them into working for machine-made products.

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Marketplace to Discover Unique Indian Products

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Owned by Kribha Handicrafts private limited

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Founded by Monica Gupta and Manoj Gupta

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Founded : Jan, 2011 and Launched Sept, 2011

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Initial Investment: 10 lakhs

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Headquarters: Mumbai

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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 



15% commission on sales 20% if managing shipping also

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

BUSINESS STATS 

Average ticket size : Rs. 950 per purchase

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close to 5 repeats per year

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Acquisition costs on average :Rs 500 and scaling lower at a fast pace

CORE COMPETENCY 

Acquiring sellers from remote places

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Attracting buyers

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Marketing

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Brand building for individual sellers

SUCCESS INDICATOR 

1300+ shops

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130,000 + products

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revenue growth of 70% month on month

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ship out 10,000 items every month

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Top sales in metros (Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Pune, Chandigarh, etc..)

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best contribution margins

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new customers acquisition

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over 2, 00,000 s signed up

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growing at over 25% per month in s

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strong active s base at over 50%

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9 minutes on average spent site with good repeat behaviour

FUTURE OUTLOOK 

scaling up on “seller” acquisition across India

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Addition of new categories monthly. food (organic unique teas), religious books, clothing

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expand targeting the foreign markets (UK / US)

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Thailand and Indonesia for the supply side

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Looking for 2nd round of investments of over 100 million USD

COMPETITORS  E-Bay.com

 Shopo.com

 Etsy.com

 Mela.com

 Shopleaf.com

DIFFERENCES • No listing fees like E-Bay • No restriction on artisan collectives or NGO’s like Etsy • Presence of Craftsvilla studio for handholding artisans to go online • Facilities for photo shoot, content writing

• SAP on cloud

DIFFERENCE FROM OTHER E-COMMERCE MODEL 

No discounts offered

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No stocks kept

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Completely marketplace

CHALLENGE 

How to retain the talent

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How to reach out to new artisans

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How we reach out to global customers

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Convincing consumers to shell out money online

WHY WE THINK THIS TYPE OF MODEL WILL WORK 

Sustainable

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Cost efficient model

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Very few reliable offline buying opportunities

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Sales are high even without no discount offered

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Has first mover advantage in online handicrafts in India

 INTERNET PENETRATION ON RISE 

Number of Internet s in India has crossed 100 million , expected to cross 350 million by 2015,

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Online shoppers in India is expected to jump from 7 million to 75 million by 2015

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The number of rural internet s 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 s for almost 40%, according to a t study by apex industry body ASSOCHAM and ComScore.

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About 75% of online audience is between the age group of 15-34 years making India is one of the youngest online demographic globally.

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15-24 years of age group has been the fastest growing age segment online with 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 s, and is sixth globally on this count.

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48% s of smartphones are less than 25 years, Nelsen report, 2012

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Overall, there are 70 million mobile Internet s in India. "We expect India's next 150-180 million Internet s 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 

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

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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 s. 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 s. 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

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Next 10 years, e-commerce in India expected to grow by at least 50 per cent CAGR

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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