India online Shopping for Handmade Gifts Unusual from Indian Culture - India Jewelry, Indian Clothing, Statues and Sculptures of Hindu Gods.

1. ShalinIndia
We bring a range of high quality products of India at a fair
price to customers worldwide, using trusted local
marketplace platforms for shopping, and efficient global
logistics infrastructure for delivery.
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2. Company Profile
Team Profile
• Shalini Verma – BA, Founder of ShalinIndia. Merchandizing Head
• Sanjay Kumar – MBA, France. 16 years in telecom and IT
• Vinay Sewal – MBA, IIM, 10 years in operations management
• Louis Proton – Masters, Polytechnique, France
• Birgit Gairola – MSc in Business, Germany
• Sidney Harvey – MBA, Washington University, US
• Namrata Sandhu – B.A. Honours Spanish language, Denison US / Madrid Uni
Name and Contact Details of the Company
Shalin Impex Pvt Ltd, A8 / 8 DLF phase 1, Gurgaon 122002, Haryana, INDIA
Sanjay Kumar - 9810080367
Current Revenues & Key Customers/Markets –
– US$ 550,000 in FY 2011, Estimated $ 2 million in FY 2012
– US, UK, France, Germany, Spain and Japan – online customers
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3. Need
• Global customer needs & how they are met currently
– Google search analysis reveals people in developed markets searching
for Indian products – clothing, jewelry, decor, books, and films
– Currently such customers buy from local boutiques who have very
limited range and charge high prices; often not conveniently located
– Or, they buy online from merchants from India - pay high shipping
cost with long delivery period, besides dealing with uncertain customs
charges, difficult return and refund methods, receiving orders through
courier (without invoices or as falsely declared low value item)
• Target customers and market potential
– People in the age group of 25 to 60 in highly developed ecommerce
markets – US, UK, France, Germany, Spain and Japan; reaching out to
400 million confirmed customers on marketplaces
– Large number of small boutiques wanting to sell Indian products
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4. Value Proposition
Our offering
– We sell products from India – clothing, jewelry, tableware, sculpture and
art, home décor, photos & images, books, music cd, music instruments,
games, and film dvds to global customers
– We sell not only to English speaking customers, but also to French,
German, & Japanese customers (Spanish and Italian to follow soon)
How does our offering solve the problem?
– Customers shop on their trusted local ecommerce marketplace platforms
with proper guarantee from platform owners
– Items go online only after customs clearance in different countries; all
listed items are available in inventory; free standard shipping from local
warehouses, delivery in 3 days; local returns and local customer support
in local language
– Watch video: http://www.youtube.com/watch?v=FhJ7isAD-qk
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5. Competition
Competitors and their offerings
Novica Corp – Sells collectibles in the US, store & marketplaces
Exclusively.in – Sells ethnic Indian fashion items in the US and UK
Vishal Jewelry – Dominates Indian jewelry market in US
Fabindia – Big potential threat in the future in all the markets
How is our solution better than competition’s?
– Product range much larger, universal products with Indian feel
– Selling in France, Germany, and Japan too. Spain & Italy to follow
– Control delivery experience for customer – stock inventory to ensure
fulfillment of all orders and restrict defect rates & pre fulfillment order
cancellation rate to 0.5%; return rate 3%; globally distributed
inventory enables free shipping with delivery in 2-3 days; all items
custom cleared before going online; payment in local currency, local
return, and local customer support in local language
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6. Business Model
• How do we plan to make money?
– Multi channel sales, and fulfillment from the same inventory across
channels – Amazon, EBay, and our branded stores; accessing
developed markets – US, UK, France, Germany, Spain, and Japan
– Additional revenues likely from wholesale to boutiques on our
branded store, with local sales support. Boutiques that can not afford
to import from Indian exporters that insist on high MOQ
• How we price products
– Products carefully selected for high sales velocity; apply multiple
factor of 4 or 6 on CP. Net margin of 45 to 50% on SP. Some easily
available items used as loss leaders to meet competition. After 90
days on virtual shelf, start selling on discount, or auction on eBay.
– 67% discounted price to boutiques, and retain 40% margin on SP (no
commission for platform owners and no local distribution cost)
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7. Sales and Distribution
• How we reach out to consumers
– We list products on local marketplace platforms in different countries,
thus accessing platform’s own customers (around 400 million)
– Use multi lingual blogs, ads on local searches, data feeds on local
shopping engines, local directory submission, and press releases
– Rely on viral marketing by satisfied customers; special discounts to
friends and family; some customers write reviews on our products
– Keep inventory in globally distributed warehouses according to
demand in each country; collaboration with Amazon in US, Europe (26
countries) & Japan; Amazon manages our inventory and executes local
distribution (pick, pack, ship) of not only orders coming from Amazon
marketplaces but also orders coming from other channels. Looking at
options beyond Amazon for local warehousing and fulfillment,
particularly in countries where Amazon is not present
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8. Financials
• Current revenues, variable costs, operating profits and net profits?
– FY 2011 – US $ 550,000
– Variable cost – 55%
– Operating profit - $ 30,000
– Net profit - $ 20,000
– Above data is from returns filed with Indian Income Tax
• Projections for next 3 years on current cash flow based self financing
– FY 2012 – 1.5 M$ (est.)
– FY 2013 – 6-8 M$
– FY 2014 – 25 M$
– FY 2015 – 80 M$
• When does your venture break even? When does it start making profits?
– Broke even in FY 2011; Cumulative break even in FY 2012
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9. Investment Rationale
• Our immediate funding requirements
– US $ 4 million
• How we plan to use the funds?
– Build-up of inventory of high selling item; shipping these to foreign
warehouses; in-house marketing & IT team and systems; Brand building via
banner advertising, social media, press releases, PPC, shopping comparison
engines to enable sales from branded stores.
• What justifies an investment in our venture?
– Profitable working business model; 40,000 sales executed; have exceeded all
customer metrics benchmarks; high barriers to entry, as new entrants need 2
years to build sales velocity in social media based marketplaces; legal
compliances in different countries; understanding of business culture,
particularly in non-English speaking countries
• Exit strategy for the investor
– Sell (partial or full) to strategic investors (Indian enterprises interested in
export business) to build a new channel and markets for their products
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10. Additional Information
• Local partners in different cultures for selecting products, content writing,
customer support, and local legal compliances
• Set up wholly owned subsidiary in the US; filed US tax return for 2011
• Arranged with HSBC in Europe to remit rupees to India for all transactions
in Pounds and Euros and comply with European business regulations
• Appointed an agent in Japan (holding license from the Japanese
government), to enable lawful import of our products in Japan, collect
sales revenue, maintain joint bank account, and send remittance to India
• Acquired local URL extensions in Japan, Korea, China, Spain, Italy, France,
and Germany through a trusteeship arrangement with an international
law firm. In 2013, we plan to sell through our branded stores in these
markets
• Shipments in commercial mode so that inward remittances are legal
• Watch ShalinIndia video: http://www.youtube.com/watch?v=FhJ7isAD-qk
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