Graduation Project

 
Opportunity Assessment and Operation Model for Fashion Sales Consultancy in
E-commerce
Submitted by
Sachin
Under the Supervision of
Dr. Rajdeep Singh Khanuja
Assistant Professor

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTER OF FASHION MANAGEMENT (MFM)"

Submitted to

Department of Fashion Management Studies (FMS)

National Institute of Fashion Technology (NIFT)

NIFT Block, M.P. Bhoj (Open) University Campus, Kolar Road,
Bhopal, PIN - 462016
Ph. 91 755 249 3736 1
Web: www.nift.ac.in
Chapter 1. Professional Services

Professional Services
Market
Accounting Advertising Architecture Engineering Legal
Research

Scientific
Notary Public Relation Consulting Other Services
Research

Indian Market Size Segments

Large Scale Firms
INR 27,000 Crs (2020) Strategy
Small Scale Firms
10,000 Consulting Firms Management
Mid- Sized
Major hub: Delhi, Firms Human
Operations
Mumbai, Chennai & Resources
Fre
Kolkata with 6,000 ela Financial
firms nc Technology
Advisory
er
Source: Associated Chambers of Commerce and Industry, Careerizma.com
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 2
Chapter 1. Professional Services

Key Firms in Consulting Industry

Big Four Big Three/MBB
• Focus on Implementation • Focus on Strategy
• Solution to ‘help me do it’ • Solution to ‘what should I do’
• C-suite level problems
312 US$
46.2
000 Billion 270 US$
10
00 Billion

276 US$
42.4
000 Billion US$
210
8.5
00 Billion
284 US$
36.4
000 Billion
US$
105
4.5
00 Billion
US$
219
29.8
000 Billion Number Of Global Revenue
Employees FY19

Source: Company Portals

MFM/18/335 | Opportunity Assessment & Working Model for Fashion Consultancy in E-commerce 3
Chapter 1. Professional Services

PricewaterhouseCoopers

Spread across 158 One of the largest Among the world’s Ranked as one of the Servicing 84% of the
countries professional services top 10 most World’s Most Fortune 500
firms in the world powerful brands Attractive Employers companies & over
with 2,76,000 (Brand Finance Index in 2017 by Universum 1,00,000 businesses
employees 2017)

Parent Company Type Founder Headquarters Key People Key People India
Pricewaterhouse Members have Samuel Lowell London, United Robert Moritz Shyamal
Coopers different legal Price, Edwin Kingdom (Global Mukherjee
International structures; both Waterhouse,  Chairman) (Chairman)
Limited (PwCIL) UK and US firms William Cooper  Satyavati Berera
are LLP (COO)

Source: PwC Resources

4
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce
Chapter 1. Professional Services
History, Purpose and Values
William Cooper establishes his
own practice in London
Partners change name to Price,
Waterhouse & Co.
Cooper Brothers & Co, McDonald, Currie &
Co & Lybrand, Ross Bros & Montgomery
merge to form Coopers & Lybrand
Coopers & Lybrand merges with
Deloitte Haskins & Sells in a number
of countries around the world
Partners approve sale of PwC
Consulting to IBM
Shortens its brand name to PwC
but legally remains
PricewaterhouseCoopers
Source: PwC Resources
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce
Samuel Lowell Price sets
PURPOSE
1849 up in business in London
“In an increasingly complex world, we help
1854
intricate systems function, adapt and evolve so
1865 Price, Holyland & Waterhouse they can benefit communities and society –
join forces in partnership whether they are capital markets, tax systems or
the economic systems within which business and
1874
society exist. We help our clients to make informed
Formation of Lybrand, Ross
1898 Brothers and Montgomery decisions and operate effectively within them.”
1957
VALUES
1982 Price Waterhouse World
Firm forms
1990
Price Waterhouse and Coopers
1998 & Lybrand merge to create
PricewatwaterhouseCoopers
2002
Implemented the Connected
2004 Thinking methodology
2010
5
Chapter 1. Professional Services

PwC: Line of Services

Assurance Advisory Tax & Legal

Advosory Regional Delivery Government Reforms

Consulting Deals & Infrastructure
Corporate Centre
Development (GRID)

Agricultural &
Deal Strategy &
Strategy Management Social Sector Natural
Operations
resources

Corporate Finance
Forensic Technology & Investment Capital Project Infrastructure
Banking

Financial Risk & Responsible

One Cyber Transaction Business Oil & Gas
Regulation
Service Advisory

Govt. & Public Energy Public sector &

Sector Valuation Govt.

Business
Restructuring
Services
Source: PwC Resources
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 6
Chapter 1. Professional Services

Hierarchy

Source: PwC Resources

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 7
Chapter 1. Professional Services

Company Social Responsibilities

Global Goals: For Sustainable Development

Source: PwC Resources

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 8
Chapter 1. Professional Services

Corporate Affairs and Culture

 80% of workforce is
Millennial
Opportunities for
Work  Inclusion, Diversity,
development
Equality, Respect &
Tolerance in a
Respectful Work
Employees Environment

 Flexible working
Corporate hours
Fringe Benefits
Culture
 Global code of
conduct

Source: PwC Resources

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 9
Chapter 2. Abstract

Abstract
• E-commerce is one of the latest and most growing industries all around the globe
• E-commerce industry is backed up by young population and digital penetration
• COVID-19 outbreak and lockdown further increased the need of e-commerce
• E-commerce companies in India are struggling with profits
• The purpose of this research is
– To understand the Indian e-commerce market
– To explore the critical dimensions of successful online fashion portals in India and how they won
customers’ attention, devotion and loyalty for the business
– To understand the challenges of these e-commerce players
• Ultimately, the goal is to evaluate the opportunity of fashion sales consultancy in online fashion business
• Research focuses on Online Fashion Sales Consultancy as one of the feasible solution e-commerce
portals

Keywords: E-Commerce, online fashion, E-tail, fashion E-commerce, online fashion sales consultancy,
fashion sales consultancy in E-commerce, online fashion sales consultancy

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 10
Chapter 3. Introduction

Introduction
Global E-commerce Market (Billion US$)
6542
5695
4927
4206
3535
2982
2382

525 578 660 727 783

360 439
2017 2018 2019 2020* 2021* 2022* 2023*

E-commerce Market (Billion US$)

1.8 Billion Online Shoppers
63% of shopping occasions begin online
50% of the consumers shop more on
mobile than in-store
Data Source: Oberlo.in, Statista.com
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce
Linear (E-commerce Market (Billion US$) )
Fashion
• In 2019, retail e-commerce sales worldwide amounted to
US$ 3.53 trillion
• E-retail revenues are projected to grow to US$ 6.54
trillion in 2022
• Most popular online activities worldwide
11
Chapter 3. Introduction

Research Aim & Objective

Research Problem
A customer study to assess the opportunity of fashion sales consultancy in
fashion E-commerce and to develop an operational model for the same
Research Question
On the basis of customer research and operational model, what is the scope of
fashion sales consultancy in fashion E-commerce?
Research Objectives
• To understand the Indian fashion E-commerce industry
• To study the major Indian fashion E-commerce players to map the client
company’s competitors
• To study the consumer behavior, problems, needs and their views on
potential solution of online fashion E-commerce client
• To develop an operational model of fashion sales consultancy for
prospective E-commerce clients for enhanced online fashion shopping
experience

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 12
Chapter 3. Introduction

Research Methodology
Research Design
Exploratory Research Framework and Consumer Research through
Questionnaire Survey

Data Collection

Secondary Sources Primary Sources

• Online articles Questionnaire based digital
• Company websites consumer sample survey consisting
• Industry and business analyst of 10 open ended questions
websites
• Website analytical tools
• Companies’ financial statements

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 13
Chapter 3. Introduction

Research Methodology
Sampling
• Stratified Convenience Sampling Method
• Respondents from every region of India and from tier-1, tier-2 and tier-3
cities
• 300 respondents of age group 18-35 years

Scope and Limitation

Scope
Scope of wide and deep future
research for the same topic and pilot
run of the operation model of fashion
sales consultancy in E-commerce
Limitation
• Limited by the data available on the
open platforms
• Sample size of consumer research
• Majority of respondents from North
and West regions
• Non-feasibility of pilot run of the
operational model of fashion sales
consultancy

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 14
Chapter 4. Literature Review

Indian E-commerce Market

• India is on its path to surpass the US E-commerce market to become the second largest E-
Market commerce market in the world
Overview • Estimated market size of US$ 63.7 Billion
• Expected to grow annually by 13.5% (CAGR 2020-2025)

Drivers Challenges
Drivers & • Rising Income • Unaware market
Challenges • Increase in internet users • Discounts-led market
• Favorable FDI policies & Investments • Low or negative Returns
• Govt. initiatives: Digital India, BahratNet • Low conversions and high order returns

• India is adding approximately 10 million daily active internet users to the internet
community
Trends
• E-commerce market is led by Electronics and fashion category
• Tier-2 and tier-3 markets are growing and has lot of potential

Key Players
Key
Players Amazon Flipkart Myntra AJIO Tata Cliq

Source: ibef.org
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 15
Chapter 4.1 Literature View

E-commerce in India
Internet Users (Million) Indian E-commerce Market Size (US$ Billion)
835

700
665.31 200
560
150

63.7
50

2018 2020 (F) 2022 (F) 2026 (F)

2018 2019 2020 (F) 2023 (F)

As of 2019, internet subscribers in India stood Fastest growing Ecommerce market

at almost 665 million
Expected to grow by approximately
Internet Penetration is growing at a CAGR of 200% by 2026
24%
Expected to reach US$ 84 billion by

Internet users is the 2nd highest globally

2021

Data Source: ibef.org

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 16
Chapter 4.1 Literature View

E-commerce in India
Fashion E-commerce Market (INR
E-commerce Segmentation Billion)
3% 3%
Apparels Footwear
8% Electronics Bags & Accessories

Apparels 293
9%
Home & Furnishing 113
48%
Baby, Beauty & Personal
care 176
66
Books 838
29% 492
Others

2020 2024 (F)

Estimated to be 25% of the total organized Online fashion market is growing at a CAGR of
retail market and 14.1% (2020-2024)
expected to reach 37% by 2030
The market's largest segment is Apparel
Most of the growth for E-retail’s the country is
going to come from tier-2 cities 8th Global Revenue Ranking

Data Source: ibef.org, statista.com

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 17
Chapter 4.2 Literature View

E-tailing Model

Marketplace Model Inventory-led Model

Shipment Product Purchase

Delivery Warehousing
Payment Shipment
Delivery
Payment

Source: ibef.org
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 18
Chapter 4.3 Company Profiles

Key Players

KEY
PLAYERS

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 19
Chapter 4.3 Company Profiles: Flipkart

Overview
Parent Company Walmart • 100 million + users
• 80 million + products from 80 categories
Company Type Private Limited
• Around 30% market share of Indian e-commerce
Founded 2007 • INR 2305 Crs of loss in FY19
• Subsidiaries: Myntra, Ekart, PhonePe and many other
Head Office Bengaluru
online shopping related ventures
Key Personnel Kalyan
Unique Features
Krishnamurthy
• Available in 5 languages
• Bills, Insurance, Flights, Bus & Hotel booking services
Employees 30,000+
• Smart payment options: Debit card EMI, Pay Later etc.
Revenue (FY19) INR 4234 Crs • Flipkart axis debit card
Source: Flipkart, Wikipedia, yourstory, Google News
20
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Flipkart

Flipkart’s journey to become Industry Leader

2007-2012 2014-2017 2018 Onwards

Establishing Business Growth and Acquisitions Global Identity

• Softbank invested
• Became the first
US$ 2.5 billion in
Founded in 2007 with Indian internet
Flipkart
single category of retailer to register
• PhonePe registered
books US$ 1.9 billion
10 million android
• Acquired Myntra
users

• Added three regional

language interfaces
2007 2012 2014 2016 2017 2018 • Adding over 1 Million
sq. ft. warehousing
area

• Walmart acquired
• Launched lifestyle • Cross 100 million
77% stake in
and fashion registered users
Flipkart for US$ 16
portfolio • Acquired PhonePe,
billion
• Launched private India’s UPI based
• Invested in e-
label DigiFlip app
commerce startups

Source: Flipkart, Business Strategy Hub, Google News

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 21
Chapter 4.3 Company Profiles: Flipkart

Business Model Canvas

Key Partners Key Activities Value Customer Customer
Sellers, Design, develop & Proposition Relationship Segments
Manufacturers & optimize Exclusive Product Reliable Platform
Distributors Manage supply Launches Urban Market
chain & sellers Customer Support
Subasidiers: Marketing & HRM Unique Features Value Seekers
Customer Reviews
Myntra, Ekart &
PhonPe Key Resources Convenience Channels Discount Lovers
Private Labels: Official website
Owner: Walmart SmartBuy, MarQ etc Wide Selection Seller Program Customers
(81.3%) Payment System Software targeted by
Logistics Trusted Value Applications products
Payment Partners Technology Products Social Media

Cost Structure Revenue Streams

Technology & infrastructure support cost
Commission Structure
Warehouse management & delivery cost
Advertising & promotional cost (INR 1300 Cr in FY19) Shopping Fees (Flipkart Assured Program)
Workforce Maintain Cost (Avg. US$ 30 mln annually)
Own Shipping Service E-kart

Source: Flipkart, Business Strategy Hub

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 22
Chapter 4.3 Company Profiles: Flipkart

Business Position & Marketing

Marketing Initiative
7 th
18th
Category
Country Rank Rank • Print Media
• TV Advertisements
• Multichannel Digital Marketing
122nd • Celebrities & Influencer Engagement
Global Rank • Streaming Services

• Big billion days: October

Focus Area • India ka Fashion Capital
• Big Shopping days: March
Customer Focus
• In app games, movies, shows and
Clientele from all over India reality shows

Economic Class Middle Class • 5 language support

• Flipkart Saathi
Lifestyle Urban & Sub-urban • Seller education program
Product Focus Value • Flipkart Plus loyalty program
• Flipkart Affiliate program

Source: Flipkart, similarweb.com

23
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Flipkart

Flipkart SWOT Analysis

Strengths
India’s Largest E-commerce retailer Weaknesses

S W
Own Payment gateway & logistics Limited distribution Channel
Acquisition: 2gud, Myntra, Cost of acquisition
upstream commerce and others High bargaining power of users
Strong Parent company ‘Walmart’

Opportunities Threats
Growing Indian e-commerce market
Supply Chain
Expansion in other developing
countries
O T Competition
Government Regulations

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 24
Chapter 4.3 Company Profiles: Amazon

Overview
Parent Company Amazon Inc • 150 million + users
• 110 million + products
Company Type Private Limited
• Around 30% market share of Indian e-commerce
Founded 2012 • INR 5685 Crs of loss in FY19
• Subsidiaries: Amazon Seller Services, Amazon Pay and
Head Office Bengaluru
Amazon Retail
Key Personnel Amit Agarwal
Unique Features
(President)
• Amazon Prime
• Amazon pay
Employees 60,000+
• Availability in Hindi & English
Revenue (FY19) INR 75945 Crs • Amazon Business for Corporates
Source: Amazon, Wikipedia, yourstory, Google News
25
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Amazon

Amazon’s journey in India

2007-2012 2014-2017 2018 Onwards

Establishing Business Growth and Portfolio Addition Strong presence in Indian Market

Amazon launched its
marketplace model
which enabled third-
party sellers to trade
their products
2013
• Launched Amazon
Payments Hit US$81 billion in
• Private labels Symbol
GMV and US$2.2 billion
& Myx for clothing in operating profits
and Solimo for home
& kitchen
• Launched Amazon
Pay Later credit
service
2015 2016 2017 2018 2019
• Planning to add over
2 million sq. ft.
warehousing area

• Largest online store in • Bought 5% share • Crossed 150 million

India in 2015, adding in fashion retail registered customers.
over 55,000 new chain Shoppers Stop • Amazon India Retail
products per day for INR 180 crore Revenue: INR 1390
• Most Visited e- • Fashion studio in Million
commerce website of Gurgaon • Amazon India Retail
India Revenue: INR 112 Billion

Source: Amazon, Business Strategy Hub, Google News

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 26
Chapter 4.3 Company Profiles: Amazon

Business Model Canvas

Key Partners Key Activities Value Customer Customer
Sellers Design, develop & Proposition Relationship Segments
optimize Exclusive Product Reliable Platform
Publishers Manage supply Launches All e-commerce
chain & sellers Customer Support users
Logistics Marketing & HRM Fast Delivery Customer Reviews
Urban and
Payment Partners Key Resources Convenience Channels suburban people
Fulfilment Centres Official website with internet
Technological Infra Wide Selection Seller Program connection
Online Platform Affiliate Program
Private Label: Safe and Reliable Applications
Symbol, Solimo etc. Prime

Cost Structure Revenue Streams

Technology & infrastructure support cost
Commission Structure
Operations of fulfillment centers
Customer service centers Transaction Fees
Software development
Prime Subscription Fees

Source: Amazon, Business Strategy Hub

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 27
Chapter 4.3 Company Profiles: Amazon

Business Position & Marketing

Marketing Initiative
8 th
17 th
Category
Country Rank Rank • Print Media
• TV Advertisements
• Multichannel Digital Marketing
111th • Apni Dukaan campaign
Global Rank • Streaming Services

• Amazon Prime Days

Focus Area • Wardrobe refresh, end of season &
mega fashion sale events
Customer Focus
• Black Friday
Clientele from all over India • Great Amazon Festival sale

Economic Class Middle Class • Amazon Family

• Amazon Fresh
Lifestyle Urban & Sub-urban • Kindle Unlimited
Product Focus Value & Premium • Amazon Pantry
• Amazon Prime

Source: Amazon, similarweb.com, Google News

28
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Amazon

Amazon SWOT Analysis

Strengths
Strong brand name Weaknesses

S W
Differentiation & Innovation Losing margins in Indian market
Superior logistics & distribution Only Online presence
system High bargaining power of users
‘Glocal’ approach

Opportunities Threats
Growing Indian e-commerce market
Omni-channel retail
More acquisitions
Expansion in other developing
O T Aggressive Competition
Government Regulations

countries

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 29
Chapter 4.3 Company Profiles: Myntra

Overview
Parent Company Flipkart • 50 million + users
• 150,000 + products
Company Type Private Limited
• Around 6% market share of Indian e-commerce
Founded 2012 • INR 539 Crs of net loss in FY19
• Flipkart along with Myntra own 70% of the online
Head Office Bengaluru
fashion retail market in India
Key Personnel Amar Nagaram
Unique Features
(CEO)
• Try and Buy
• Flipkart Pay Later
Employees 5,000+
• Myntra Insider & other programs like Myntra Move
Revenue (FY19) INR 1041 Crs • Myntra Fashion Superstar
Source: Myntra, Wikipedia, yourstory, Google News
30
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Myntra

Journey to become India’s Top Fashion Portal

2007-2012 2014-2017 2018 Onwards

Establishing Business Growth and Portfolio Addition Focus on Positive Returns

• Acquired by Flipkart in • Bought rights to

Myntra was founded a deal valued at INR manage Esprit Holdings
to sell personalized 2,000 crore company’s 15 offline
gift items • 1,50,000 products of stores in India
over 1000 brands • Hit US$ 2 billion in
GMV

• Shut down Jabong

• EOSS in partnership
2007 2011 2014 2016 2017 2019 with fashion brands
• Planning to reduce
discounts

• Revive Myntra website

Converts to Marketplace Launched its first digital
after shutting it down
model and Started selling reality show Myntra
in 2015 to become App
fashion and lifestyle Fashion Superstar which is
only as the sales went
products and moved based on the fashion
down by 10%
away from personalized influencer talent hunt
• Launched Try and Buy
products
Service

Source: Myntra, Wikipedia, Google News

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 31
Chapter 4.3 Company Profiles: Myntra

Business Model Canvas

Key Partners Key Activities Value Customer Customer
Sellers Design, develop & Proposition Relationship Segments
optimize platform Latest Fashion Reliable Platform
Brands Operation of Private Offerings Customer Support Fashion
labels Social media enthusiasts
Logistics Marketing & HRM Discounts & engagement
Offers Urban youth
Payment Partners Key Resources Channels
Customer data Unique Features Official website Students &
Private Labels Technological Infra & Services Corporate
Applications Professionals
with Celebs: HRX, Private Labels:
Wrogn, YWC, Roadsters, Ether etc. Wide Selection Social Media
Anouk, AAY etc. SEO Video Content
Cost Structure Revenue Streams
Technology & infrastructure support cost
Commission Structure
Warehouse management & delivery cost
Advertising & promotional cost Private Labels: About 23% of revenue
Workforce Maintain Cost (INR 425.2 Crs in FY19)

Source: Myntra, Business Strategy Hub

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 32
Chapter 4.3 Company Profiles: Myntra

Business Position & Marketing

Marketing Initiative
65 th
19
th
Category
Country Rank Rank • Print Media
• TV Advertisements
• Multichannel Digital Marketing
1179th • Celebrity & Influencers engagement
Global Rank • Video content

• End of Reason Sales: India’s biggest

Focus Area
fashion sale
• Myntra Big Billion Days
Customer Focus
• Weekend sales and offers
Clientele from all over India • Myntra Fashion Week

Economic Class Middle Class • Try and Buy

• Myntra Insider
Lifestyle Urban & Sub-urban • Studio for fashion inspiration
Product Focus Value, Premium & • Alteration services in selected
services
Bridge to Luxury
Source: Myntra, similarweb.com, Google News
33
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Myntra

Myntra SWOT Analysis

Strengths
Merger with Flipkart Weaknesses

S W
Efficient supply chain & delivery Limited market share growth
End of season sale- huge success High bargaining power of users
Strong Marketing & Advertising
Success of Private Labels

Opportunities Threats
Targeting wedding market
Partnerships with Celebrities
Expansion in global market
Profitability in Private Labels
O T Aggressive Competition in
Online fashion
Discount led market

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 34
Chapter 4.3 Company Profiles: AJIO

Overview
Parent Company Reliance Retail • 3 million + users
• 130,000 + products
Company Type Private Limited
• Around US$ 2 Billion of revenue in FY19
Founded 2016 • Witnessed 78% year on year growth
• Planning to involve jio store for kiosks machines
Head Office Bengaluru
• 200 brands on Just-in-Time inventory model
Key Personnel Nair Vineeth
Unique Features
(CEO)
• Drop and pickup at stores with cash refunds
• Omni-channel retail in integration with 841 trend
Employees 500+
stores
Revenue (FY19) INR10,967 Cr (RR) • ‘Indie’ Artisan Store & many Exclusive brands
Source: AJIO, Wikipedia, yourstory, Google News
35
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: AJIO

Reliance Retail’s E-commerce Venture

2016-2017 2017-2018 2019 Onwards

Establishing Business Growth and Portfolio Addition Focus on Positive Returns

Reliance Retail Reliance Jio's digital

launched its long
awaited e-commerce
platform AJIO
2016 2017
• Extended its offering by
launching men’s wear,
fashion tech and kid’s wear
categories
• Online Retail Launch Site of
the Year' award at the Asia
Retail Congress 2017
platform and the 4,000-
strong Reliance Retail
network for deliveries and
returns
• Big Bold Sale from
11th to 15th June,
2020 with discounts
ranging from 50 to
2018 2019
90% off
• Entry of luxury
brands on AJIO
• Received more than 300
million web visits
• Doubled its product
catalogue to offer over
1,30,000 options
• India’s top 1st party seller

Source: AJIO, Wikipedia, Google News

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 36
Chapter 4.3 Company Profiles: AJIO

Business Model Canvas

Key Partners Key Activities Value Customer Customer
Reliance Trends & Design, develop & Proposition Relationship Segments
Jio optimize platform Complete Reliable Platform
Operation of Private Wardrobe Solution Fashion
Brands labels Customer Support enthusiasts
Marketing & HRM Discounts & Offers Easy returns
Logistics Urban youth
Key Resources International Channels
Payment Partners Reliance’s Support brands Students &
Official website Corporate
Growing traffic & SEO Professionals
Artisans for Indie Omni-Channel Applications
Experience Private Labels
Indie Experience Offline Integration
Customer data
Cost Structure Revenue Streams
Technology & infrastructure support cost
Commission Structure
Warehouse management & delivery cost
Advertising & promotional cost Margin on Reliance’s brands
Employee maintain cost & benefits
Private Labels

Source: AJIO, Business Strategy Hub

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 37
Chapter 4.3 Company Profiles: AJIO

Business Position & Marketing

Marketing Initiative
129 th
45th
Category
Country Rank Rank • Print Media
• TV Advertisements
• Multichannel Digital Marketing
2554th • Celebrity & Influencers engagement
Global Rank • Omni-Channel

• AJIO Everything on Sale

Focus Area • Giant Fashion Sale
• Campaigns
Customer Focus
• Other discounting events
Clientele from all over India • Weekend Events

Economic Class Middle Class • In store pickup & returns

• Just-in-time fashion
Lifestyle Urban & Sub-urban • Authenticity of Products
Product Focus Value, Premium & • Customer Assistance & Support
• Theme Stores
Bridge to Luxury
Source: AJIO, similarweb.com, Google News
38
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.2 Company Profiles: AJIO

AJIO SWOT Analysis

Strengths
Strong Parent Company: Retail Weaknesses

S W
Wide offerings from Private Label Late entry in market
AJIO Own Low market share
Omni-Channel Retailing High bargaining power of users
Awards & Recognition

Opportunities Threats
Targeting handloom fashion market
Fast growth in market
Introducing luxury brands
O T
Profitability in Private Label
Aggressive Competition in
Online fashion
Discount led market
International Players entering
Jio’s rapid growth & investments the market

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 39
Chapter 4.3 Company Profiles: Tata Cliq

Overview
Parent Company Tata Unistore • 2 million + users
• 100,000 + products
Company Type Private Limited
• Struggling with profits
Founded 2016 • Exclusive offerings with authenticity
• Special focused online luxury fashion portal ‘Tata Cliq
Head Office Mumbai
Luxury’
Key Personnel Vikas Purohit
Unique Features
(CEO)
• Drop and pickup at stores with cash refunds
• Omni-channel retail in integration with 500 stores
Employees 300+
• Electronic category with addition of Fashion category
Revenue (FY19) US$ 0.4 million • 3 hours of placing order through CLIQ & PIQ
Source: Tata Cliq, Wikipedia, yourstory, Google News
40
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: Tata Cliq

Reliance Retail’s E-commerce Venture

2016-2017 2017-2018 2019 Onwards

Establishing Business Growth and Portfolio Addition Focus on Profitability

• 1200 brands, 1 crore

Tata Group launched SKU’s across 10
its e-commerce categories
platform Tata Cliq • Received investment of
• Direct selling to
INR 224 Crs
customers by
converting it into an
seller entity holding
inventory
2016 2017 2018 2019 • Raised around INR
313 Crs from its
promoters till
February
• 800 brands mainly in
fashion and electronics Received investment of INR
• Received investment of 292 Crs
INR 172 Crs

Source: Tata Cliq, Wikipedia, Google News

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 41
Chapter 4.3 Company Profiles: Tata Cliq

Business Model Canvas

Key Partners Key Activities Value Customer Customer
500+ Brands Store Design, develop & Proposition Relationship Segments
for Omni-channel optimize platform Latest & authentic Reliable Platform
retail Logistics products More affluent &
Managing Partners Customer Support older audience
Trent’s brands Marketing & HRM Exclusive CLIQ & PIQ
International Mall going &
Logistics Key Resources brands Channels Brand aware
Tata’s Support
Payment Partners Omni-Channel Official website Corporate
Seller entity Professionals
Applications
Exclusive Partnership 500+ store & 100+
kisoks Offline Integration
Customer data
Cost Structure Revenue Streams
Technology & infrastructure support cost
Commission Structure
Warehouse management & delivery cost
Advertising & promotional cost Margins on Tata’s brands
Employee maintain cost & benefits
Selling Entity for Inventory led marketplace

Source: Tata Cliq, Business Strategy Hub

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 42
Chapter 4.3 Company Profiles: Tata Cliq

Business Position & Marketing

Marketing Initiative
291 th
184 th

Country Rank Category Rank • Print Media

• TV Advertisements
• Multichannel Digital Marketing
5859th • Celebrity & Influencers engagement
Global Rank • Omni-Channel

• End of Season Sale

Focus Area • Category based sales event
• Campaigns
Customer Focus
• Other discounting events
Clientele from all over India • Weekend Events

Economic Class Middle Class • In store pickup & returns

• Offline integration with 50 brands
Lifestyle Urban • Certified authentic merchandise
Product Focus Value, Premium & • Customer Assistance & Support
• Theme Stores
Bridge to Luxury
Source: Tata Cliq, similarweb.com, Google News
43
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.3 Company Profiles: AJIO

AJIO SWOT Analysis

Strengths
Strong Parent Company: Tata Weaknesses

S W
First of its kind Omni-Channel Late entry in market
Retailing Low market share
Brand partnerships Small base of sellers
High bargaining power of users

Opportunities Threats
Targeting 2 major segments:
Electronic & Fashion
Fast growth in market
Future of luxury online market
O T Aggressive Competition in
Online fashion
Discount led market
International Players entering
Seller Entity the market

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce 44
Chapter 4.4 Comparative Analysis

Competitive Analysis
  Amazon In Flipkart Myntra AJIO Tata Cliq   Amazon In Flipkart Myntra AJIO Tata Cliq
Overview Website Performance
Founded 2013 2007 2007 2016 2016 Global 111 122 1,179 2,554 5,859
Year Rank
Country 8 7 65 129 291
Head Office Bengaluru Bengaluru Bengaluru Bengaluru Mumbai rank
Parent Amazon.com, Walmart Inc Flipkart Reliance Tata Category 17 18 19 45 184
Company Inc (Walmart Inc) Retail Ltd Unistore rank
Ltd.
Website 224.5 mln 220.26 mln 24.48 mln 17.59 mln 7.99 mln
Employees 60,000+ 30,000+ 5,000+ 500+ 300+ Visits
Users 150 mln+ 100 mln+ 50 mln+ 3 mln+ 2 mln+ Avg. Visit 00:08:26 00:08:53 00:08:53 00:05:37 00:04:54
Duration
Revenue INR 7594 Crs INR 4234 Crs INR 1041 Crs US$ 2 mln US$ 0.4
mln Pages per 7.25 6.57 7.98 3.74 3.63
visits
Social Media Presence Bounce 39.31% 41.90% 42.67% 50.41% 51.94%
Facebook 9.9 mln 9.3 mln 5.2 mln 1.6 mln 1.4 mln Rate
Followers
Product & Service Offerings
Instagram 1.2 mln 1.6 mln 1.6 mln 0.33 mln 0.17 mln Products 110 mln+ 80 mln+ 1,50,000 1,30,000 1,00,000+
Followers Offered

Twitter 1.7 mln 2.4 mln 5.8 lacs 7,511 11,000 Omni-
Followers Channel
Try & Buy
LinkedIn 15 mln 1.5 mln 4.8 lacs 66,815 32,051
Followers (worldwide) Pay Later

Source: Companies’ resources, yourstory, similarweb.com, Wikipedia, Google News, Social Media Platforms
45
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Consultancy in E-commerce
Chapter 4.5 Challenges

Challenges for E-commerce Portals

Product Positioning & Discovery

Low Conversion Rates Requirement of Strong Product Information
Cart Abandonment Rate: 64% in Management System (PIM)
fashion Category People browse only top 8%
search result pages

Challenges

Brand Trust & Loyalty High Return Rates

New Brands
Around 50% order returns in fashion category
Private Labels

Source: Searchmetrics, Digital Commerce 360, Forrester, Salesforce, Fireclick, McKinsey Fashion Report, Shopify

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 46
 Chapter 4.6 Fashion Sales Consultancy

Fashion Sales Consultancy for E-commerce Portals

Fashion Sales Benefits for Users

Consultancy Product related assistance
Maintain Knowledge of Fashion Trends Size & Fit related assistance
and New Styles Trends & fashion assistance
Use Product Knowledge to Sell Various Users’ other queries solving
Types of Products
Size & Fit Assistance
Facilitate Transaction using Sale infra
Overall Shopping experience

Benefits for Sellers Online Fashion Sales

Increased conversion rate
Consultancy: Scope
Luxury Brands & fashion portals:
Reduction in abandonment cart
Tata Cliq Luxury, Tom Ford, Sephora
Reduction in order returns
etc.
Scope of upselling & cross-selling
Individual brands’ portals: Zara,
H&M etc.
Fashion e-commerce portals:
Myntra, AJIO, Tata Cliq etc.

Source: Jobhero
MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 47
Chapter 5. Data Analysis & Interpretation

Consumer Survey: Respondent’s Profile

Gender Profession Annual Family Income
Upto 5,00,000 5,00,000-10,00,000
Female Male Student Employed Unemployed Home Maker 10,00,000-20,00,000 20,00,000-50,00,000
Above 50,00,000

1%
3%
3%
10%

47% 38% 43%

53% 19%
59%

25%

N u m b e r o f r e sp o n d e n t s
Age Group
6% 6%
City wise Number of Respondents
Under 20 Years 22% 68
62
20-25 Years 44 44 Tier-1

Tier-2
25-30 Years 24 22

30-34 Years
66% 4 4 6 6 6 6 Tier-3

East North South West

Region & City Tier

Source: Consumer Survey

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 48
Chapter 5. Data Analysis & Interpretation

Consumer Survey: Buying Habits

Frequency of Online Fashion Shopping Transaction Size (INR)

Every Week 9% 1%
5%1% Upto 1,000
22% 6% 19%
Every Fortnight 1,000-5,000

Every Month
5,000-10,000
Every 2 Months 11%
31% 10,000-20,000
Every 3 Months
More than 20,000
More than 3 Months 20% 73%

226 222

170

Preferred
E-commerce Portals 78
66
56
42
26

Flipkart Myntra Amazon Ajio Snapdeal Tata Cliq Brand's Others

Platforms

Source: Consumer Survey

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 49
Chapter 5. Data Analysis & Interpretation

Consumer Survey: Experience, Needs & Problems

Overall Customer Experience Critical Factors
156 224

128 130
122
104 106 108 142
98 96 94 124
90 110 114
82 96
68 76 869684 828490 9090
56 56 60 64 70
50 52 56
40 44
36 28 32
32 18 12 20
24
20
12 16 22 20
10 10 1416 10 12
2
Quality Variety 6 Price 8 Terms & 8
Delivery Time Payment Offers and
64 62 Policies Options Discounts
Flipkart Myntra Amazon 4 AJIO 2 Snapdeal Tata Cliq2 Brand's 6
Platforms
Rank 1 2 3 4 5 6 7
Delighted Satisfied Neutral Unsatisfied Teribble Very Critical Critical Neutral Somewhat Critical Not Critical

200 204
Issues Desired Services & Features
190
130
148 140
60 70
54 56 48 96
32 78
50
ue ty k s y t g t
ili oo on nc on uc li n en
Iss b L ti lta sh
i
od y m
n g
ed
i & Op u Fa Pr St ay
i zi Cr l i ty ny ns
te
d t
or
P
S d ua a o gh
an Q M sC da Ri er
y Product's Trends Size & Fit Ratings & Styling Fashion Second
Br o le t
ng
uc
t
To S a Ou i l iv Real Look & Assistance Reviews Experts Advice
od No nd De Info
Pr Fi

Source: Consumer Survey

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 50
Chapter 5. Data Analysis & Interpretation

Consumer Survey: Views on Potential Solution

Impact of Social Media Fashion Influencers on Online
Shopping

10% 16% Very High

Utility of Online Fashion Sales Consultant 8%

High

Moderate
5% 1% 20%
Low
18%
45%
41% No Impact

Willingness to Pay for Fashion Experts' Services

(% of Transaction )
35%
5%

32% 1% Up to 5%
Extremely Helpful Helpful Don't Care Can't Say Not Needed 35%
5%-10% Free of Cost

5% Not Interested
24%

Source: Consumer Survey

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 51
Chapter 6. Operational Model

Online Fashion Sales Consultancy: Operational Model

Process
Service • Service Management Process
• Service Delivery Process
Capabilities
• Learning & Development of
Employees Technology
• Dedicaed Department
• Integrating Sellers to the model Already exsisting technology of chat box,
telephone support and customers’ data
with fashion sales consultant
Organizational
Structure Infrastructure
• Roles & Responsibilities Investments to modernize training
• Reporting Relationship infrastructure including physical
• Culture & Governance facilities, conferencing spaces,
classrooms, and associated physical
assets such equipment, office furniture
People and supplies

• Fashion Sales Consultant

• Their onboarding
deevlopmet
training &
Performance Measures
• Frequent trainings for new producst • User Experience
• Conversion rate
• Cart abandonment rate
• Order returns

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 52
Chapter 6. Operational Model

Online Fashion Sales Consultancy: Operational Model

Organizational Process
Structure

Customer
Service
Department
Head
Customer Online
Customer Selection
contacts fashion
looking Customer of
Fashion Sales Other Sub- the online sales
for the encounter products
consultancy department fashion consultant
Head Head desired s issues to be
sales provides
products purchased
consultant assistance
Category/Brand Category/Brand Category/Brand
1 Fashion 2 Fashion 3 Fashion Other
Consultancy Consultancy Consultancy Employee
Head Head Head

Revenue Stream
Category/Brand Category/Brand Category/Brand   Brand owned Inventory led Marketplace Model
1 Fashion Sales 2 Fashion Sales 3 Fashion Sales
Consultant Consultant Consultant platforms Model
Channel Own fashion sales Own fashion sales Different services
consultants same as consultants under types for private
of stores Customer Care labels 1st and 2nd
Category/Brand Category/Brand
1 Fashion Sales 2 Fashion Sales
department party sellers
Consultant Consultant
Revenue Increase in sales Increase in sales Charging
Stream Reduced cart Reduced cart commission of the
abandonment rate abandonment rate services of online
Category/Brand Reduced return rate Reduced return rate fashion sales
1 Fashion Sales
Consultant consultants to the
sellers

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 53
Chapter 6. Operational Model

Other Suggestions

Product
• Realistic Photoshoot without
Channel
excess editing • Targeting tier-2 and tier-3
• Creating looks/outfits with cities
products for bundle purchasing • Omni-channel retail with
• Eco-friendly products collaboration with brands

Technology
Features
• Virtual trial room
• Artificial Intelligence • Product pictures in review
• SEO section
• Models with different skin
tones

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 54
Chapter 7. Other Learnings & Contribution

Other Live Projects at PwC

01 02 03 04
Market Research Biding for a State Project on
Multi-stakeholder
Project for a Government Consultancy to
Social Project
Fashion Brand Project Ministry of Textiles

Contribution:
• Industry Analysis
• Customer Analysis (Behavior,
Purchase Motivation,
Satisfaction & Value)
• Competitor Analysis
(Marketing Mix, Strategies,
Timeline & Future Plans)
Learnings:
• Market research project
handling
• data sources for market
research & ways to get data
• Consumer Survey
Contribution:
Contribution:
Contribution: Assistance in
Assistance in
Assistance in research about • Event Management
• Documentation
other countries’ infrastructure • Documentation
• Research
in textile domain
Learnings: Learnings:
• Cross team working
Learnings:
• • Event Management
Textile education system of
• Working of government • Documentation of Social
China
projects Projects
• Bases for making decisions
• Documentation for bidding • CSR of fashion brands & role
to provide consultancy to
process of associations, unions &
government agency
• Bidding Process govt. agencies in it

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 55
Chapter 8. Conclusion

Conclusion

E-commerce along with offline retail (Omni-channel) is the present and future of retailing. Indian e-commerce market
is growing rapidly because of internet penetration and large population of young people. COVID-19 outbreak and its
expected long term impact also strengthen the e-commerce market in India and across the globe. Fashion giants like
Inditex, Bestseller and Gap are investing heavily in E-commerce presence. Luxury fashion is also looking towards e-
commerce channel in this challenging time.

As per the secondary research and outcomes of consumer survey, I hereby conclude that online fashion sales
consultancy is of utmost importance to luxury & premium brand’s e-commerce platforms in this era of internet.
Inventory led e-commerce platforms should also adopt this service to increase conversion rate and reduce order
return rates and hence can increase their revenue. Marketplace e-commerce platforms can use this service to help
their partner brands or/and sellers grow their revenue and business and can charge them for this additional service.
For e-commerce players who are focusing on Omni-channel retail must adopt online fashion sales assistance service in
order to provide a seamless user experience across all the channels.

During my research project at PwC, I was also involved in other live projects of the company. Participating in these
projects & performing different roles in these projects, helped me grow personally as well as professionally. I am glad
that I got a chance to be a part of such organization during the initial phase of my career.

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 56
 Thank You

MFM/18/335 | Opportunity Assessment & Operational Model for Fashion Sales Consultancy in E-commerce 57