A Strong, sustainable future ahead of Pepperfry

Transcript:A Strong, sustainable future ahead of Pepperfry:
A Strong, sustainable future ahead of Pepperfry Presented to Mr. Murty & Mr. Shah By Smurfit Consulting 1 Your challenge 2 To achieve IPO of INR132 billion in 2022 Our recommendations 3 Agenda 4 Analysis Geoff O’Brien 5 The Indian Furniture Market 6 Competitors – Online Indian Furniture 7 Pepperfry Capabilities and Resources 8 Brand Recognition of Pepperfry – 75% organic traffic Excellent Distribution system – 2% breakage, 92% 1st time delivery, NPS 60 Supplier system is deep with strong relationships Marketplace is leading furniture portal in India House Brand gives greater profitability and is 50% of GMV Credible investors raised USD$195m Pepperfry Financial Analysis 9 Recommendation Monika Ghita 10 Your aim is to achieve INR 50m GMV by 2020. 11 At present this target is not achievable until 2021; Pepperfry will not become profitable until 2027. Create a Home Buyer Ecosystem 2. Pepperfry Rental Platform Create a new market – new customer acquisition Achieve more GMV Participate in the shared economy trend 3. Grow GMV through House Brands Sales Partner with bank of Mumbai to provide customer financing Grow sales though highly profitable home brand sales Expand studios to promote home brand sales (Franchise 90% - 10% Own) Strategies Considered 12 House Search Finance Sourcing Legal Advice Home Design Furniture Purchase Alternative strategies 13 Recommendation: Grow GMV through House Brands Sales 14 Provide financing to customers Customer loyalty credit card offering Digital marketing TV advertising Experience studios Franchise 20 out of 27 own studios Establish 26 additional franchise studios by 2020 Introduce augmented reality googles in studios Through this strategy you will achieve profitability and IPO valuation of INR 132billion in 2022. 15 implementation David Madigan 16 1. Implementation: Customer Financing 17 Bank Partner Bank of Mumbai (BoM) Embed customer financing tool on marketplace paid by BoM Commission agreement with BoM paying Pepperfry Balance sheet sits with BoM Typical asset financing rates are 8-10% with net interest margin of 8-10% Create loyalty credit card which is Pepperfry branded with BoM Deal construct Partnership discussion timeline 1 month head of terms agreement 6 months negotiation 12 months rollout 2. Implementation: Driving House Brand Sales 18 Marketing Channels Product Placement Priority on Marketplace TV advertising focused on House Brands Increase Content marketing for better SEO by: Blogging (featured posts) Video posts Social media posts (#Pepperfry) Sponsor Cricket Team Increasing franchise commission to 12% on House Brands from 10% In owned stores