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Executive Summary
W Shop24x7 is an e-commerce company designed to become the market
leader in Web based sales oI electronics, apparels ,giIts and accessories.
W We will eliminate the middle man and oIIer creative and eIIective online
retail store that is both Iunctional and beautiIul. The savings are passed
on to our customers who will be paying a Iraction oI what they
normally do Ior current retreated Iashion in stores.
W Shop 24x7 will overcome these problems with an easy-to-use website
and an efficient distribution system.
2
Objectives
W To make Shop24x7 an icon brand.
W To develop an eIIective, well placed e-commerce site.
W To launch an enticing marketing campaign in a controllable and
measurable market that will drive customer's toward the company's
website.
W To create an inIrastructure Ior the IulIillment oI Web-based sales.
3
Mission
W Shop24x7 mission is to provide the Iinest quality and prompt
delivery using the Internet to lower the consumer's cost.
W Employees oI shop24x7 will also be treated in a proIessional
manner with a rewarding work environment and Iair compensation.
When we adhere to this maxim, everything else will Iall into
place. Our services will exceed the expectations oI our customers.
4
Product Line Description
W pparels Ior men, women and kids;
W Electronics and giIts.
W Shoes,toys,kitchenwares,chocolates ,Ilowers etc.
3
How SHOP 24X7 works...
W Sign Up
W Online visitor oI the site will pick up the items to be
purchased.
W ConIirming/Iinalizing the item list selected.
W Proceed to checkout.
W Enter the credit/debit card /Pay Pal inIormation to make the
payment.
W Order ID is sent to the customer via email.
6
Representation of the Buying Process
7
Modes of Payment
W Credit/Debit Card
W Cash on Delivery
W Net Banking
W Cash back Coupons
8
Product Delivery
W Drop Shipping
W Shipping
$
9
Industry Analysis
W The power oI Internet is slowly being unleashed in the developing
countries and its eIIects are now Ielt in day to day liIe. The two
giants oI sia i.e. India and China are leading the way.
W Global Retail Development Index (GRDI), in 2008, puts India as the
IiIth largest retail destination globally. Currently the retail industry
stands at 390 billion and growing at decent rate.
W Internet penetration rate in India is 7.1 which is one oI the highest
in the world.

E-Commerce In India Contd..

1rave| orta|s
7S
CLhers(LLall
and ulglLal
uownloads)
3
Cnllne
Classlfleds
2
TotalRs.9200 Crores

tartup summary
W egal fees for Lhe buslness formaLlon
W Cfflce supplles
W Web developmenL
W 1elephone llne lnsLallaLlon
W uesk chalr flllng cablneLs
W Shelvlng unlLs for lnvenLory sLorage
W CompuLer sysLem wlLh MlcrosofL Cfflce
Culck8ooks ro CuW prlnLer and a broadband
lnLerneL connecLlon
tartup Lxpenses
egal
SLaLlonary eLc 3
Web developmenL
1ota| startup expenses 1600000
tartup assets
Cash requlred 3
CLher currenL asseLs
ong Lerm asseLs 3
1ota| assets 3400000
1ota| requ|rements S000000
Government role in e-retail
W LffecLlve Lelecom pollcles l1 AcL for legal
framework
W ubllc key lnfrasLrucLure(kl)
W CorporaLe plans wlLh hlgh speed servlces
Barriers to e-retailing
W Weak law LnforcemenL AgenclesCyber
Crlmes
W no rlvacy of ersonal or 8uslness uaLa
W no menLlonlng of proLecLlon of lnLellecLual
properLy rlghLs
W Confuslon abouL cusLom duLy Laxes eLc
MARKE1IAC PLAA
,arket egmentat|on
W signiIicant trend in India is that the people are using internet to
perIorm their activities and also as a source oI inIormation.
W With the advent oI new technology ,privacy and security people are
showing their willingness to buy things online.
W Be it paying their bills online ,subscribing to blogs to get daily news
,to communicate with their Iamily and Iriends. Thus there is a great
potential to target these groups.
6
Population break-down of India
ural
72
urban
28
Population
Population of India
Rural
815,581,003

Urban
314,285,151

Total 1,129,866,154
7
W India has only 52 million active internet users and only 40 oI them
shop online. Thus the number oI sophisticated users are very Iew.
lthough this Iigure may grow at a consistent pace but the growing
market will attract new competitors also.
uy on||ne
40
uo noL buy
onllne
6
No Cf Cn||ne Users
8
Age Segmentation
W The median age in India is about 25 years old, this demonstrates the
Iact that halI oI the Indian population is youth which preIer and
generally use internet as mean oI communication and interaction. Be
it maintaining social networking through websites like Iacebook,
twitter, hi5 or building proIessional network through websites like
linkedin.
Customer Segmentation
W The primary customers Ior the Shop24x7 are urban middle class
who are well versed in using the technology, are well educated and
are comIortable shopping online. Shop24x7 has product categories
like music, video, computers, electronics, mobile phones, and
personal product categories.
9
Target Customers
W Internet users, small business users, home application users.
Pricing
W Pricing should be determined in conjunction with a careIul analysis oI each oI
the Iollowing elements.
Cost of Goods
W It is very important to know the full cost oI purchasing and owning a
given item Ior sale. t some cases we use loss-leader promotions, the
loss-leaders are strategically positioned in the store so that customers
will have to walk past more proIitable items in order to get to the
deals.
Purchase Price
2
Pricing Contd..
Initial Markup:
W Initial Mark-Up (IMU) is the diIIerence between your retail price
and your purchase price. It is calculated as a percentage oI your
retail price
Competitor Prices
W We are, oI course, not setting your prices in a vacuum. Other
retailers will be oIIering the exact same items, similar items, or
substitute items. Our aim to maintain competency in pricing without
neglecting our proIit.
Retail Strategy
2
romot|on trategy
earch Lng|ne Cpt|m|zat|on
Lffect|ve e|ferv|ce
W 1he oLher lmporLanL beneflL of Shop24x7 ls LhaL ln effecL lLs selfservlce
1he purchasers can go aL Lhelr speed and do noL requlre Lhe expenslve
lnvolvemenL of a sales represenLaLlve or a cusLomer servlce asslsLanL ln
some cases lL may be useful Lo make avallable a lve Pelp feaLure buL Lhls
wlll be used by a mlnuLe fracLlon of vlslLors lf Lhe onllne sLore has been
well deslgned
Cn||ne anners Advert|sements (ay per C||ck)
W Cur onllne sLore shall selecL some webslLes LhaL have good lndlan Lrafflc
on Lhem and where Lrafflc ls closer Lo our LargeL markeL We shall Lry Lo
selecL lndla based webslLes and blogs as adverLlslng on Lhem ls much
more cheaper as compared Lo lnLernaLlonal level webslLes
22
Promotion Strategy Contd..
Offline advertising
W Press media advertisements and posters in particular oIIline events
to bring customers to its website.
Social media (Facebook Fan page)
W Store page shall be maintained at Iacebook.
W Special oIIers and Products shall be displayed there and updates
shall also be posted to get customers Irom most Iamous social
website oI today.
23
rowth Dr|vers
The growth in the E-tailing market is driven by the need to save
time by urban India. Besides with over 2.5 billion internet users,
access to internet has also played an important role in growing the
markets.
Changing demographics (youthIul India), changing liIestyles and
exposure to the developed markets sure give a Iillip to this Iledgling
industry.
The soaring real estate costs in India have certainly inspired many
an online venture. lso E-tailers have developed many innovative
promotions to lure customers and there by growing the market
24
Barriers to Growth
The cost oI customer acquisition is pretty high in India about
1100 INR/customer which eats into the margins, as most goods
retailed are low value items such as books, CD`s and electronic
gadgets.
High margin goods such as apparel are not very popular because oI
the touch and Ieel Iactor. Most Indian`s are not comIortable using
their credit cards Ior shopping and there is always a Iear oI 'what
you see may not be what you get.
There may be a problem with complaint resolution, especially aIter
receipt oI wrong goods or delayed delivery.
23
INTERNATIONAL EXPANSION
1oint Venture
W Shop24x7.com has plans Ior Chinese debut to Iorm a joint venture
with Joyo.com, the country's largest online retailer oI books, music,
videos and DVDs.
W The deal is expected to close in the next couple oI months, with 49
shares will be oI Shop24x7.com
W In light oI the cultural diIIerences in China, we believe that
Shop24x7.com has acted prudently in Iorming a JV with an
established company with what appears to be a solid management
team.
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Product liability
W The Product Quality Law, the Law on the Protection oI the Rights
and Interests oI Consumers, the Contract Law and the General
Principles oI Civil Law.
W Implied warranties. Detailed regulations and standards regarding
labeling, perIormance and health and saIety.
28
E-commerce In China
E-commerce In China Contd..
Advertising
W The dvertising Law, which requires companies that publish adverts
to obtain a licence to do so and to veriIy the content oI the adverts
Ior accuracy, is draIted widely enough to cover cyberspace
advertising.
W The Commercial Industrial dministrative Bureau issues certiIicates
oI approval to websites.
29
eta|| ector |n Ch|na
W eLall sales ln Chlna amounLed Lo nearly $2 Lrllllon ln 2
W Chlna's reLall sales are expecLed Lo grow by around ln 2
W 8y 23 Chlna ls polsed Lo zoom Lo Lhe poslLlon of Lhe Lhlrd blggesL
consumer markeL globally afLer Lhe uS and !apan
W Cn||ne reta|| Cnllne shoppers grew 68 beLween 29 and 2
Lo 83 mllllon Cnllne reLall sales have been predomlnanLly
consumerLoconsumer LransacLlons Powever wlLh over 29 of lLs
populaLlon uslng Lhe lnLerneL onllne reLall sales are polsed Lo grow
over 3 per year
3
Retail Sector In China
3
Orqonised ketoi/
20
unorqonised ketoi/
80
ConLd
W WlLh Chlna wlLnesslng lncreaslng lnLerneL peneLraLlon a
number of reLall glanLs expanded Lhelr onllne operaLlons
Accordlng Lo Lhe ino oin 5tore lroncise 4ssociotion
(CCIA) nearly 34 of Lhe Lop reLall chaln owners sLarLed
offerlng onllne shopplng servlces ln 2 1hls helped e
commerce Lurnover ln Lhe counLry rlse 22 Lo 43 Lrllllon yuan
W Sales of Lhe Lop reLall chalns ln Lhe counLry grew 22 Lo
66 Lrllllon yuan ($233 bllllon)
32
Foreign investment in retail
W On the issue oI equal ownership between the domestic retailer
and the Ioreign investor, the 4220rcial S0ct4r M0asur0s
brought out in pril 2004 by the Chinese government were in
contradiction with the Acc0ssi4n Pr4t4c4l as well as the 2007
FDI Guidanc0 atal4u0.
W While the 4220rcial S0ct4rM0asur0s restricted Ioreign
investment to 49 equity Ior Ioreign-invested retail chains with
more than 30 outlets, the Acc0ssi4n Pr4t4c4l as well as the FDI
Guidanc0 atal4u0 oI 2007 allowed Ior equal ownership.
33
ConLd
W The Chinese government`s Ad2inistrativ0 M0asur0s f4r F4r0in
Ent0rpris0s 4r Individuals Establishin Partn0rship Ent0rpris0s,
brought out in 2009, now permits Ioreign investors or individuals to
set up retail enterprises in partnership with domestic entities in China.
W The Chinese Ministry oI Commerce has also been gradually
delegating the authority to approve all Ioreign-invested retail
businesses to provincial commerce branches, Iacilitating the expansion
oI Ioreign retail players within the country.
34
TRADE BARRIERS
China has taken signiIicant and oIten impressive steps to reIorm its
economy since acceding to the WTO.
During this period, China has revised more than one thousand laws,
regulations and other measures in an eIIort to bring its trading system into
basic compliance with WTO standards.
Each year, China has made annual reductions in its tariII rates, eliminated
non-tariII barriers, expanded market access Ior Ioreign services providers
and improved transparency.
ll oI these steps were designed to deepen China`s integration into the
international trading system, as well as to Iacilitate and strengthen
economic reIorms that China had begun 20 years earlier
TYPES OF TARIFFS
Import charges:
China maintains a high tariII on import oI goods.eg 30 on
motocycles,30 on audio video players & recorder.35 on raisins.
Antidumping &safeguard measures:
s oI January 2010, China had a total oI 102 antidumping measures in
place (some oI which predate . China`s membership in the WTO) aIIecting
imports Irom 17 countries and regions, and 18 antidumping investigations
in progress.
1rade rate quota
under 1C sysLems Chlna places quanLlLaLlve resLrlcLlons on Lhe
amounL of Lhese commodlLles LhaL can enLer aL a low ln quoLa"
Larlff raLe and any lmporLs over LhaL quanLlLy are charged a
prohlblLlvely hlgh duLy
Chlna was Lo esLabllsh large and lncreaslng 1Cs for lmporLs of
wheaL corn rlce coLLon wool sugar rapeseed oll palm oll
soybean oll and ferLlllzer wlLh mosL lnquoLa duLles ranglng from
percenL Lo 9 percenL
eta|||ng serv|ces
lthough China has made great strides since September 2008 in approving
Ioreign retail outlets, the United States continues to have concerns that
China treats domestic companies more Iavorably than Ioreign companies
regarding zoning and urban development requirements and imposes
additional inIormal minimum capital requirements on Ioreign suppliers.
Sales away from fixed location:
Since 2005, China has signiIicantly liberalized its regime Ior direct selling
services, and a number oI Ioreign direct sellers have received licenses to
operate. number oI concerns remain, as China maintains unduly
burdensome 'service center establishment requirements and other
restrictions aIIect Ioreign direct sellers.
39