"Businesses once grew by one of two ways; grass roots up, or by

acquisition. Today they grow through alliances.

Peter F.
Drucker

Chumbak India Private Limited

Industry and Company Overview

July 2014
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Contents

Industry Overview : E-Commerce

News, Trends and Forecasts

About Chumbak

Financial Information

Demographics and Product Line

Legal and Regulatory Issues

Lessons for Sustenance and

Success

Talent: E Commerce

Marketing and Branding Strategy

Way Ahead

Information Dissemination

E-Commerce Overview
Indian e-commerce is growing but low
compared to UK and US
75% is travel related
12.5 % is online retailing
Has grown on an average of 34% a year
since 2005 and will grow reaching $2
billion in sales by 2015
In 2011, investors invested around
$305 million into e-commerce

Source : Mckinsey report

E-Commerce : Focus Areas and Key Drivers

Focusing on younger and more effluent
customers
Offering aggressive pricing

Emphasizing speed and convenience

Rising standards of
living and change in
lifestyle

Increased usage of
internet

Key Drivers
E-Commerce

Lower prices

Wider product
line/range

Source : Mckinsey report

Key Challenges
Design & Infrastructure

Trust

Customer Tastes

Supply Chain
Management

International brands in
the 18-25 years segment

Retail & Distribution

Customer Tastes

Supply Chain
Management

Expansion Challenge
Gain acceptability in the emerging metros and
smaller towns
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Chumbak
E-Commerce
Vivek Prabhakar
Alicia Dsouza
Shubhra Chadda

Vibrant

Theme : India
2010

Quirkiness

Fun

First store in 2013 in Bangalore and grew up to 20 more within 7

months

Started as a Facebook page and has a Fan Base of more than

147,824 across the world

Funding Partners

Seedfund
Founded in 2006 by Bharati Jacob, Mahesh Murthy & Pravin Gandhi
Indias leading early-stage venture capital fund
Operations in Bombay, Bangalore and New Delhi
Matrix Partners

Founded in 1877 in Boston and established in India in 2006

Founder Paul Ferri
Offices in Mumbai, China, Beijing, Shanghai and Silicon Valley

Demographics and Product Line

70 employees and 80 additional
members store

200 stores in India and 70-80 in

Japan and West Asia

Apparels
and
Accessories
Stationary

Souvenirs

Product Line

Travel

Home and
Lifestyle

Lessons For Sustenance and Success : From

the CEO
Get your hands
dirty
Work smart and
work hard.
Celebrate even
the smallest
achievement

Say No to
perfection

Be Social

Focused
passion better
than just
passion

Sustainability
&
Success

Build a strong
team

Invest own
money in the
venture

Source : Yourstory.com

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Focus on customer feedback and
listen to the customers
An angry customer is in fact a loyal
customer and makes the effort to
give the feedback

Create product
combos

Good today is better than perfect

tomorrow

Promote store
URL on
packaging

Being social through social media

Social media considered as a medium
to have fun and speak to people

Customer
Relationship
Focus on today to
lead to a perfect
tomorrow
Social Media

Chumbak
weekend
contest in
social media
sites

Marketing and Branding Strategy

Information Dissemination

Social
Networking
Sites

Stores

Two Way
Communication

Google Adword

Word of mouth
through
customer
relationship
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News, Trends and Forecasts

First brand to get Facebook

case study

One of the three global

companies featured as part of
Googles global case study

Seedfund invest over $2

million in 2013

Matrix Partner invests in 2014.

Investment amount not
disclosed

300 percent growth year on

year as reported by Business
Standards
Forecast and Way Ahead : Increase contribution of its online sales to its overall
earnings to at least 30% focusing on various technology models
Plans to develop 60-65 kiosks across India and have retail stores across malls and
high streets by March 2015

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Financial Information

Online sales account

to15% of total sales

60% of total sale

Bangalore, New
Delhi and Mumbai

Eyeing at an annual revenue of Rs

400 500 crore in the next 3 to 4
years

Reached breakeven within the first three

years

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Legal and Regulatory Requirements

Information
Technology Act

Indian Contract
Act & Indian Penal
Code

Encryption laws of
India
(Cloud computing)

Cyber Law

Techno Legal
Regulations of
India
(Cloud computing)

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India Circus A Growing Competitor

@home
Founded by Krsna Mehta and a Mumbai
based company

Westside
Department
Store

Based on a similar theme of India with

product line ranging from home decors to
personal accessories

Comme Un
Monde in Paris
and France

Operates on the hybrid model offline

and online with substantial presence in
the retail stores

Urban Yogi in
Dubai and UAE

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Key Talent : E Commerce

Rich Content
Development

Social Media

Online
Merchandising

Key Talent

Digital
Advertising

Branding
Promotions &
Sales

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Key Roles : E Commerce

Requirement

Skill Sets
Web Designer and Web Developers

Rich content development

Technical Development
Creative Writing

Experience in web developing and

designing using both front end and back
end technologies
The upcoming technology is cloud and
the role requires experience in cloud
platform
Technical or Creative writer
Experience in content management
systems.
Candidate with technical experience with
expertise in modifying the appearance of
website.
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Key Roles : E Commerce

Requirement

Skill Sets

Digital advertising
Candidate with strong analytical
experience and able to manage key
performance indicators
Statistical and Engineering graduates

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Key Roles : E Commerce

Requirement

Skill Sets

Online Merchandising

Merchandising team with previous

B2C experience.
Experience in online merchandising
tools and techniques

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Key Roles : E Commerce

Role

Skill Sets

Social Media

Create and manage content on FB,

Twitter, LinkedIn, Pinterest and
Instagram.
Manage the social media sound
bites.

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Key Roles : E Commerce

Role

Skill Sets

Branding ,Promotions and

Sales
Experience in e commerce sales,
branding and promotions.
Working with email marketing
team to target and deliver those
promotions to segmented
audiences
Client facing sales and business
development experience

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Support Roles : E Commerce

Technical

Legal and
Compliance

Customer
Support

Support Roles

Finance &
Accounts and
Administration

Operations &
Supply Chain

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Support Roles : E Commerce

Role
Technical Support

Skill Sets

This would include Information

Security Professionals, Network
Engineers, Desktop Engineers and
Asset Management Team.
All roles would require substantial
relevant experience and technical
skills based on level hired for
Being abreast with upcoming
technologies is the key to all roles
Excellent communication skills

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Support Roles : E Commerce

Role
Finance & Accounts and
Administration

Skill Sets

Qualified finance and account

professionals with relevant
experience
Experience in Indian GAAP and
reasonable exposure to IFRS and
USGAAP
Relevant experience in
administration and personnel
management
Excellent communication skills

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Support Roles : E Commerce

Role

Skill Sets

Operations and Supply Chain

Relevant experience in inventory,
operations, logistics, warehouse
management, supply chain etc.
Experience of delivering in a rapid
paced environment as the
ecommerce market is growing at a
fast speed.

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Support Roles : E Commerce

Role

Skill Sets

Legal and Compliance

Strong knowledge of regional legal
and statutory compliance
Prior experience in negotiations,
preparation of legal contracts and
evaluation
Experience in compliance auditing
and process streamlining to ensure
100% compliance

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Support Roles : E Commerce

Role

Skill Sets

Customer Support
Voice and Non Voice Support
Passionate about assisting the
customers in their queries and
clarifications
Focus on strong customer
relationship building
Excellent communication skills
both written and verbal

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Way Ahead

Growing
Business and
Expansion
Hire the best

Fun, Quirkiness
and Vibrant

Appreciation for
quality work

Transparency

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Compliance

Compliance

Followed at
Chumbak

EPF
Employee state insurance
Professional Tax
Minimum wages
Registers for Payment of Bonus/Gratuity
Child Labour Prohibition & Regulation
Display of Memorandum of Association (MOA)
Display of Certificates, Notices, Acts and Rules
Registers under Contract Labour Act
Employee Database

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Thank You!

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