FASHION AND YOU

Presented by:
Hina Varshney
B.Com (IV Sem)
12D012
 WHAT IS E-COMMERCE ?
E-Commerce as companies or sites that offer to transact or
facilitate the selling of products and services online.

There are 2 types of E-Commerce:

P u r e c l i c k - Pure click companies
are those which have launched a
website without any previous existence as a firm (Fashionandyou.com
&Myntra.com)

B rick and C lick - brick and click companies are existing companies that
have added an online site for information or online selling (Futurebazaar.com,
shoppersstop.com
 SCOPE OF ONLINE
RETAILING
According to an American Research firm Forrester, both US and European online
retail will grow at a 10 percent compound annual growth rate from2010 to 2015,
reaching $279 billion and 134 billion, respectively, in 2015

ASSOCHAM (Associated Chambers of Commerce and Industry of India) believes

that Indian online retail industry could grow to Rs. 7000 crore by 2015. The
current Indian Online Retail market stands at Rs. 2000 crore growing at an annual
rate of 35 percent.

Online Retail prospects both nationally and globally seem bright and one firm
taking proper advantage of this fact is Fashion and You, hereafter an online
fashion retailer
 MANAGEMENT TEAM
PROFILE
CEO P e a r l U p p a l i s an internet industry veteran and has extensive
experience at companies such as Yahoo, Rediff and GE. She Graduated
from IIT Delhi and is also a gold medalist from Delhi College of Engineering.

HarishBahlis the Indian Investor, Co-Founder and Chariman of FNY. Harish

is the founder CEO of Smile Interactive and has incubated and grown several
successful leading online businesses like Quasar (WPP Digital & Smile JV),
Tyroo (Smile & Yahoo JV), Zoomtra and Zumtra. He is also the chairman of
the Digital Agencies Committee of the Internet and Mobile Association of
India.

R ahulNar ve rkar is Fashion and Yous Director of Sourcing who prior to

joining Fashion and You, was the Senior General Manager, DLF Retail
Developers. Narverkar has over 15 years of experience in retail and media.
The website company is owned by Gold square Sales India Private Limited.
 COMPANY PROFILE
Fashion and You is a by invitation-only private sales club, which partners with high
fashion and luxury brands across fashion apparel, designer wear, accessories,
footwear, watches, jewelry, fragrances, kids, home dcor, and holds private sales
events for these brands on www.fashionandyou.com at prices up to 80% off.

It has over 400partner brands such as Dunhill, Calvin Klein Jeans, Gucci, Dolce &
Gabana, Escada, Guess, Blackberry, Ed Hardy, Ritu Kumar Manish Arora and
Tarun Tahiliani.

Fashion and You is a pure click company formed in early 2010 by Pearl Uppal (Ex
Sales Director, Yahoo India) and Harish Bahl. Pearl Uppal, former Director, Sales,
Yahoo India is Fashion and Yous Co-founder & CEO.
 Key Players
Northwest venture partners
Intel capital
Nokia growth partners
Sequoia capital
Smile group
Its founder & CEO, Harish Bahl is a serial entrepreneur & has a
several successful ventures to his credit with large global
players like WPP (Quasar),yahoo (tyroo) & scan group
(sQuad).
 COMPANY PERFORMANCE
Since its inception, fashionandyou.com has been growing at a tremendous pace.
Fashionandyou.com employs ore than 450 people spread across offices and distribution
centers in Gurgaon, Mumbai &Bangalore.

Fashion and You reason of success is its hugely experienced team and its early mover
advantage. The website was operational in November 2009 and was offered only to a few
people who kept on inviting others.

Fashion and You has over 2.7 million registered users and are the countrys most well funded e-
commerce website.

Fashion and You raised $40 million (Rs 201 crore) from a group of investors led by Norwest
Venture Partners and Intel Capital in 2011. This is touted to be the highest investment in e-
commerce space in the country.

In the second round, it raised $8 million from Sequoia Capital India in December 2010.
 GROWTH
In an interview in early 2011, CEO Pearl Uppal was asked what the five year plans for
FNY were. She said she wanted FNY to be the global leader in online apparel retail
and wanted to be responsible for the10% of sales for major apparel brands.

According to a report by the company itself, within 15 months, the company had over
1.8 million member. Every 6 minutes they have a new member registered. They are
working with over 400 brands and have an outreach in over 550 cities.

They also have more than 11,00,000 page views per day with 75,000 members
logging on everyday at exact 11AM (start time of a sales event). FNY has been
growing at a rate of 35% since its inception.
 INTERNAL STRUCTURE
FUNCTIONING
FNY has an employee base of 250 employees working in different departments FNY has four
major departments Marketing, Sourcing, Supply Chain and CRM.

The companys Headquarters lie in Gurgaon while its sourcing offices are in Gurgaon and
Bangalore and Mumbai.

Decision making in FNY is centralized which means all departments and offices report directly
to the HQ and receive orders from there.

As mentioned earlier, CEO of the company is Pearl Uppal, Chairman is Harish Bahl and
Director for Sourcing is Rahul Narverkar. In-depth information about the role of each department
and office is not available easily therefore not mentioned.
 SUPPLY CHAIN
MANAGEMENT
FNYs supply chain remains a mystery as the company is very secretive about it. However, in a
company report for the suppliers and prospective suppliers, hints about its supply chain are provided.

As the company is not into manufacturing and only into retailing, its suppliers are the brands itself.

FNYs Supply Chain (SC) is an 7 step process.

In its first step, FNY signs an agreement with the supplier the brand for sale of its product
After this, an e-catalogue is produced in FNYs in house studio. If the catalogue is approved by
the reviewers, promotions to all members via Email/SMS and social media are delivered about
the sales event.
Then, the sales event is launched at 11AM and lasts for 3 straight days.
At the end of the sales event, the company tallies up all orders and a purchase order is issued
and sent to the supplier.
The supplier then sends the products ordered and these are delivered directly to FNYs
processing unit where they are sorted and packed in FNYs packaging.
After the product is prepared, it is send to the customer the products final destination.
 STRENGTHS
Very Well Funded ($48 million) As mentioned earlier, FNY is one of the most well
funded online retailer in the country.

Early Mover Advantage the fact that FNY set up shop in 2010 and gained tremendous
pace in a short span of time while others were still in their infant phase attracted a lot of
interest from investors and generated a lot of interest amongst consumers.

Board with a lot of experience in the area Their CEO, Chairman and Director for
Sourcing are all well established and know in the industry.

Excellent investors to add more experience in the pot - FNYs list of investors
incorporates both Indian and foreign investors who have invested in some of the worlds
most famous companies. Their expertise can be of great value to FNY
 WEAKNESSES
Website not as easy to operate as others like yebhi.com Yebhi has a very
easy and user-friendly category list and search program.

Consumer doubts over authenticity of products

Slow deliveries FNYs supply chain has a bit of a flaw where they can
never be sure of how many products are available with the supplier as the
Purchase Orders is issued after the sale event ends.

List of products not very well defined FNYs category does not.

Not enough TVC Like Myntra.com, FNY does not involve in a lot of
Television Commercials.
 OPPORTUNITIES
Entry into neighboring countries Entering or launching their web-site in Bangladesh,
Sri Lanka, Pakistan, Nepal and Bhutan to attract more customers.

Mobile Application use of internet on mobile phones increasing drastically and FNY
can really benefit from a mobile application which allows customers to purchase
products from their mobile devices.

Global Presence Entering more countries around the world will be a good idea as their
business model of sales events is very unique.

Indian Handicrafts India has a massive handicrafts industry and there is a strong
demand for it. Selling handicrafts on their websites can be a good opportunity.

Different Website Versions FNY can have different website versions for different states
or regions of the country catering to the local market by selling local products.
 THREATS
Amazon.coms entry into the Indian Market in early 2012 Amazon.com the worlds
largest online retailer announced its plans of entering the Indian online market in early
2011.This entry will happen in 2012 and is a major threat to FNY as Amazon have a
global reputation and are a global leader in all product categories.

Rival websites getting equal interest from investors As mentioned above, many pure
click companies are receiving heavy investments from both national and international
investors. This can be a major threat to FNY.

Rival websites advertising heavily Myntra.com new campaign of Television

Commercials is swooping the Indian Commercial space

Indian customer still not confident enough to shop online Indian citizens are still wary
of online retailers disclosing confidential information such as credit card details. They are
17 also not confident in the quality of a product ordered through electronic channels as
they still believe in touch and feel.
 CUSTOMER DEMOGRAPHICS
52% of FNYs shoppers are female, 48% male

Amongst the 52% female, 53% are between the ages 25-35, 32% between ages
18-25, 14% are above 35 years and 1% are below 18.

Amongst the 48% male shoppers, 42% of the shoppers are above 35 years of
age, 34% lie between ages 25-35, 23% between ages 18-25 and 1% of them is
below 18 years of age.

Apart from big cities, FNY shoppers are also found in tier 2 & tier 3 cities.
However, 39% of the shoppers are from Delhi/NCR, 19% from Mumbai, 13% from
Bangalore, 6% from Hyderabad, 4% from Pune, 4% from Chennai and 1
 Website Ratings
How popular is fashionandyou.com?
Global Rank 3595 Rank in India 288
How engaged are visitors to fashionandyou.com?
Bounce Rate - 25.40% Daily Page views per Visitor - 6.16
Daily Time on Site - 6:59
Who visits fashionandyou.com?
Rank in
Country Percent of Visitors
Country
India 96.3% 288

United States 1.4% 59,384

 Website Ratings Cont..
Where do fashionandyou.com's visitors come from?

Keyword Percent of Search Traffic

1. fashion and you 65.05%

2. fashion and you 14.81%

3. urban touch 2.05%

4. www.fashion and you 1.76%

5. urbantouch 1.56%
 Website Ratings Cont..
How fast does fashionandyou.com load?

Slow (2.098 Seconds), 62% of sites are faster.

What sites link to fashionandyou.com?

Total Sites Linking In - 664

 Achievements
CompanyAchievements
Star Retailer Debutant Award 2010 in the award ceremony held by
Franchise India on December 12, 2010 in New Delhi.
Fashionandyou.com recognized by Dataquest amongst the top 20
Hottest Ecommerce Startups From India.
WAT Awards: Fashion And You got a Silver in the Ecommerce site of
the year category.
 CONCLUSION

The future for both FNY and the online apparel retail market in India seems
very bright indeed. With more and more websites coming up everyday and
attracting an equal amount of investment from the world over, its only fair to
say that the scope for online retailing in India is pretty good, as long as this
good phase in the market isnt like the dot com bubble. However, more and
proper research needs to go in this area in the Indian context to get fair and
accurate results.
 References
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exclusively-in-targets-200b-indian-wedding-market-with-new-
onlineboutique
2. Jha, P. (2011, 05 27). Venture Capital . Retrieved 12 02, 2011,from
VCCircle:http://www.vccircle.com/500/news/exclusivelyin-raises-16 min
series-b-led-by-tiger-global
3. Team, T. (2011, 05 11). Venture Capital. Retrieved 12 02, 2011,from
VCCircle: http://www.vccircle.com/500/news/fashionretail-site-
99labelscom-raises-35m-from-info-edge