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FIRST CRY.

COM CASE STUDY


PRESENTATION

TEAM NO 5
INTRODUCTION
 In 2002 Supam Maheswari experienced first hand the difficulties of
purchasing high quality baby care products.

 India to buy essentials for his new born daughter and during work
related travel throughout Asia.

 He had an even harder time finding good diapers baby oil, soaps,
lotions toys and apparel especially in small towns.

 Amitava saha he founded pune based brainbees solution Pvt Ltd the
parent company of first cry.com

 First Cry.com built strong relationships with mothers by offering


purchasing flexibility through the use mobile online, offline shopping
and the larges range of Baby and maternity products in Asia.
Contd

 Their inventory level is good because more than 90,000 item form over 1200
international Indian Brands.

 The inventories are including mattal, Ben10, Pigeon, Funskool, Hot wheels,
Nuby, Farlin, Medala Pampers, Disney, Barbies Gerber and Fisher Price.

 BACK GROUND FOUNDERS

 Supam Maheswari the founder and CEO of First cry.com graduated from (IIM)
Ahamadabad.

 Amithva saha the company’s other co founder earned a mechanical


Engineering degree from the Indian Institute of Technology.

 In December 2010 with seed capital of Rs.25 million raised from personal
resources and friends.
contd
 Maheswari and Saha kick started Brain bees solution the parent company
to first cry.com and goodliffe .com

A PROMISING BUSINESS ENVIRONMENT:-

 At Kearney’s 2015 global retail development index reported that Indias


retail market is expected to grow U.S. $ trillion by 2020.

 2014-15 retail sales in India totalled U.S.$ 925 billion with compounded
annual growth rate of 5.8%.

 In India 50 million babies aged 0.2 and 3048million children aged 0-12
making it becoming market player in this segment.

 The domestic baby and child care market including apparel footware, toys,
babies tolltries has grown at CAGR 17% since 2012.
Contd

 Among the BRIC countries (Brazil, Russia, India China)


percapita spending on baby personal care products was the
lowest in India.

 The purchasing will be increased day by day.

 In another important change in this market was the


emergence of youngsters in both urban and semi urban areas
an independent informed and self conscious buyer group.

 This was bound to happen since India’s E-commence market


had already shown sign of exploring surging from U.S$ 2.5
billion in 2009 to 2014 $ 13.5 billion.
contd
 India’s online baby care market has experienced strong growth
opportunities in recent years powered by 27 million births a year.

 Along with a with a growing middle to upper class the online baby
products market was valued at around 2.25 billion (U.S.$37.4-468)

Challenges on the way.

 Inspite of these encouraging statistics concerning the Indian e-


commerce turned out to be tougher and more expensive than
expected.

 Emerging timely delivery was not easy no singly courier company


could cover the entire country.
Contd

 Orders generated from major cities generally fulfilled by small


often unreliable third party services that delivered by bicycle.
Since major multinational such as DHL and feedback did not
cover rural areas.

 Low credited card penetrations coupled with the


unwillingness of credit card holders.

 The delivery – some customers are interested to get their


products and after paying for the products to the salesman.
Competitors

 First cry.com faced though competition from baby one.com.


Other competitors are hopskotch.in. Baby buzzle.com and my
babycart.com where the other contenders Baby box.in,
Toonz.in.

 Some what different business approach Flipkart, Amazion dio,


snapdeal and other generic online retailers were also angling to
capture their share of attractive manner.

 Opscloth retailed primarily on online flash sales of international


baby and children’s brand.

 Founded in 2007 as an online book store. Flipkart had come a


long way to emerge as Indias leading e-commerce.
Business Model
 Realizing the consumer wanted combination of offline and online
shopping First cry none its competitive edge by offering a by brid
model of click and bricks.

 Franchise model was adopted with each store branded First Cry
.com.

 The Franchise store which offered a wide range of products and


facilitate the last mile delivery.

 Were carefully screned and selected by an in house team.

 The team helped the set up the stores franchises could


investment on 18-24 months.
contd
 First Cry installed kioks in its stores to enable customer to browse
its wide section (31) and (32). The brands are 1200 for the
products is there in 90,000.

 First Cry kept same prices for both online and offline customers.

 First Cry adopted an inventory model shipping products across


the country from its own.

 If ordered First Cry.com they are giving the same day or the next
day.

 The First Cry launched a personal care e-commerce, venture


called goodlifr.com
contd
 Through which it sold products in categories such as make
up fragrance. Skincare, both body hair care, men’s toileterios
natural and organic products and health nutrition.

Service Back End:


 In addition an automated email or Telephone call was made

to each customer who phased an online order chose to pay


COD orders were dispatched only after they had confirmed by
customers.

 Intelligent Promotion:
 In January First Cry.com launched as national television
compaign featuring the slogan “mommy knows best”
contd
 The goal was to build strong brand differentiation based on the idea
that babies are demanding mommies always know what is best for
them.

 The company claim that with over 70,000 products first cry.com was
Asia’s largest online baby and children’s store was simultaneously in
the ad and on its website face book and twitter account.

 The Company gives ad to channels but rather cost of tge ad was high
and return was low.

 The company launched an or-ground compaign celebrating the


happiest cry ever through which first cry box was delivered to few
mothers at hospital across the company.
contd
 The company formed box partnerships with over 6000
hospital in 30 cities working closely with top chains such as
apollo Aditya Birla group.

 In the next four months the company was partnered with 500
maternity and primary care hospitals in Bangalore.

 In March 2015 First cry launched world of mom.com


showcasing its efforts to become India’s most beloved with
mommy community.
Growth Story:

 Within three years first cry.com marketing 100 natural and


international brands to being Asia’s largest in online portal
selling 400 brands to more than 50,000 registered under
plus other non registered users.

 Within three years the first cry.com to four warehouses in


Pune, Delhi, Bangalore and Kolkata.

 First cry was able to differentiate from competitors with its


franchise stores. Starting with its first store June 2011. It had
opened more than 50 stores in 45 different cities by January
2014.
Investment
 In may 2011 six months after brain bee solution pvt ltd was
founded invested U.S.$ 4 million private equity.

 In February 2012 the company jumped on the brand wagon with


e-commerce portals. Such as Flipkart, myntra.

 Investment from technology invest IDG ventures India and sait


partners.

 In January 2014 in what was the largest investment in an e-


commerce company selling just one category of products.

 In- Febuary 2015 is series D round of funding led by valiant


capital the company raised an additional us 26 million.
Customers feed back
 Given the size of the market captured by first cry there was
no shortage of happy customer.

 Enjoying the delivery of quality products at reasonable


practices.

 First cry for the best delivery services of shipping service.

 But not every one was thrilled with the company’s services.
Out of 67 posts to First cry customer’s feed back page
between may 16, 2015 and june 15, 2015 were compliants
about poor shipping delivery.
Future
 Fistcry had been leading india’s online baby care products
market had stopped up in marketing the operations to the
best competiton

 Manik and Arora managing director IDG ventures

 As the company scales rapidly the challenge will be


maintaining service quality as logistics become more complex
said gaurav saraf director of Epiphany ventures

 He cautioned that this was a marathon, not a sprint and that


ther would be many more milestones ahead
Conclusion
 From the 2009 it was a minimum level of E-commerce was
done. After words it was increasing

 2009- 2.50, 2010 -5.90, 2011- 6.30, 2012- 8.50, 2013-11.00,


2014-13.50

 The people were interested to buy a product with payment mode


is cash they are 45%, and the debit card is 21%, credit card is
16%, through internet bank is 10%, prepaid card/ phone wallet is
8%

 The future will be good position for the first cry.com because
the past five year data is growing up so that the position of first
cry is good level

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