home shop 18 - corporate presentation

8/3/2019 Home Shop 18 - Corporate Presentation

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Promoted by Network18 Indias premier Media &

Broadcasting Group which

owns the most admired media

brands in the country.

HomeShop18 Stellar Credentials


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In 2007, our journey started as an idea

Are we retail or TV channel ?

Who will buy our products men or women ?

Which age group will buy ?

Who do we hire, how many do we hire ?

sales center should be 50 or 100 seater ?

What products will work ?

Perceived as down market ?

What kind of content will work ?

Which cities should we target ?

What will be our price points ?

Should the messaging be in English ?

Should we invest or outsource ?

Own warehousing - now or later ?

What investments should we make now ?

How should we build credibility ?

There were no past experiences to learn from, there were only questions

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Sauna Belt

Rudraksh

Hair-raising (!) solutions

Before-and-after miracles

Thus far, India had only witnessed teleshopping

Magic products, dubbed infomercial, tacky executionNo credibility!

The image of Home shopping was linked to teleshopping

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It was a difficult situation

The consumer was skeptical

The brands were scared

Honestly, so were we

But, we knew there was potentialprovided we built Credibility.

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Brand

Brand

Distributor /

C&F A

Distributor /

C&F A

Wholesaler /

Semi-wholesaler

Wholesaler /

Semi-wholesaler

Traditional &

Modern Retail

Traditional &

Modern Retail

Master Franchisee

Master Franchisee

Customer

Customer

FMCG: HLL, P&G, ITC

McDonalds, Yum Brands

McDonalds, Yum Brands

Distributor /

C&F A

Distributor /

C&F A

A Direct-to-Customer opportunity

Brand

Brand Customer

Customer

And yet.. 30 km out of any metro, consumers struggle to find quality products and big brands!

The Potential and the Opportunity was driven due to

Consumerism & huge Distribution/Supply Chain gaps

Classic Distribution Models

Unmatched potential, driven by TV & Internet

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ATelevision Company (Indias OnlyHome Shopping Broadcast Organization)

6 hours live programming

Own studio, PC

R and broadcastinfrastructure

Complete integrated in-house

infrastructure

A Sourcing Company / Buying House

400+ brands

69 product categories

Unique forTV propositions, national

launches

We knew it was a Direct to Customer distribution model

But it wasn't just one, so we built many

Credible brands and quality execution

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Indias First 24 hour Sales Center

24 x7 x 365, multi-lingual, in-house 250-

seat Sales Center

Integrated In-/out-bound, pre-/post-sale

systems

Customer history, on call Customer centric from product

selection to after sales service

Real-time update on 20000 SKUs

A Logistics & Fulfillment organisation

Unparalleled 2750 city, doorstep delivery

system

15-day Money Back Guarantee

Unmatched convenience of cash on

delivery Unique system of reverse pickup from

customer doorstep

Invested in an unparalleled service infrastructure

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Indias 1st& only 24 hourTV

shopping channel

Indias No.2shopping website

A logistics footprintreaching

2750towns

24 hour in-house

400-agentsales center

400+ vendors,

20000 SKUs

Integrated,

real-timeIT Systems

On our way to Pioneering Home Shopping, we have

accidentally established some significant benchmarks

Leaving no stone unturned to build CREDIBILITY & TRUST

for Home Shopping as a domain.8


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-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Mar '08 Mar '09 Mar '10 Mar '11

Calls(daily)

1,700

15,00025,000

40,000

0

1

2

3

4

5

6

7

8

Mar '08 Mar '09 Mar '10 Mar '11

0.12Mn

1.5Mn

3Mn

7.5Mn

Customerbase

So, has the concept worked?

Has the customer accepted this new domain of shopping?

A new customer every 8 sec, 2Mn CRMbase, 18% repeat

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350

2,000

3,000

9,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Mar'08 Mar'09 Mar'10 Mar'11

Ann. Gross Sales (INR Mn)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Mar '08 Mar '09 Mar '10 Mar '11

425

2,200

5,000

10,000Daily Transactions

And has it worked for our Brand partners and

Vendor associates?

4.5% of digicam market Largest retailer of steel dinner sets 5+ cr Jewellery every month

Largest retailer for Reebok 2nd Largest retailer ofMicrowave Ovens for Whirlpool

ALaunch Pad, Liquidation platform and anAlternate Distribution channel

that Demonstrates, Distributes andBuildsBrand Equity

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And along the way, many questions got answered

Women

20%

Men

80%

We believed that women were the key buyershowever men form over80% of all our buyers

We thought only electronics would sell Jewellery, Home Appliances

and Home & Kitchen contribute to more than 40% of the business

Jewellery,

Appliances &

Kitchen

45%

Electronics

55%

Metros

30%

Rest of India

70%

We thought the target lay in smaller towns But,Metros today contribute 30% of the business

Delhi

Mumbai

Bangalore

Hyderabad Pune

Jaipur

Lucknow

Ahmedabad

Customers across demographics & geographies seek

Convenience & Value more than anything else.

Clearly, EVERYTHINGSELLS!

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De-risked the concept

Built the underlying infrastructure

Developed capability and domain knowledge

And this is just the beginning , we have so far only

The journey in the true sense begins now

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130Mn TV households

Fragmented & insufficient product distribution

48Mn internet penetration and 30% y-o-y growth

Driven by a potential for growth, that is unmatched.

A multifaceted organization, with a strong potential

...reaching out to a whopping 25 mn consumer Households daily

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Reach, distribution, customer interface and speed to market at no cost

Reach and Access 130Mn TV HH pan India

550Mn viewers

75% HH decision makers

Over5mn customers through Online Website

Launch pad

Test market new products and services

Supplement existing S&D Network

Customer interface Talk directly to customers

Analyze customer feedback and sales data

Profile customer data and buyer information

Low cost medium No upfront distribution expenses

Success based compensation model

So whats in it for brands, franchisees and retailers?

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Convenience Anytime shopping : DINK, working women and BPO

Armchair shopping : delivered at doorstep

Access : delivery across 2750 towns

Multiple and easy payment options

Value Innovative and unique products at no extra costs

Transparent selling process

Quality

Only credible brands and quality products

Quality assurance and assessment of products

15 days, no questions asked Replacement Guarantee

Catalyst for innovative products

Aspirational, psychological and LAM benefits

And whats in it for customers?

Unmatched value, quality and convenience

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Demonstrate your Products

BuildBrand Equity

Reach out to a 500mn TV audience

Reach to more then 4 mn customers online

Our web site:www.homeshop18.com

Distribute your products in 3000+ towns

Gather consumption data on daily basis

&Most of all

Drive unmatched Convenience, Quality &

Value to the largest consumer market in the

world.

So come Partner with us if you want to

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Thank you!

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home shop 18 - corporate presentation

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