E-tailer Disruption in Furniture Market - Strengthening Position
In India's competitive furniture market, a 10-year-old e-tailer, Pepperfry.com, faces challenges from new entrants and needs to maintain leadership and profitability. Despite recent losses, the company leverages its knowledge of the local market and strong supplier relationships to identify opportunities for growth. With a focus on packaging, delivery, and customer relationships, Pepperfry.com aims to address weaknesses and capitalize on strengths to stay ahead of the competition.
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Presentation Transcript
Pepperfry.com ORT Consultancy Group
Situation 10 y old e-tailer Disrupted in the furniture market based on new distribution channel Knowledge of India market Strong relationship with suppliers Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Complication Loses in the last years New entrants into the market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Challenge How to maintain leadership and be profitable? Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis Threats Online: horizontal market places & specialists Offline IKEA: Disruptor? Competitors Alliances between local suppliers: turn into competitors Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis Opportunities Emerging furniture market IKEA doesnt know local market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis Strenghts Packaging & Delivery (Pepcart) - > damage rate < 2% -> NPS over 60 ->Delivery rate 92% Consumer and suppliers knowledge & relationships -> Database information -> understand customer end to end cycl High negotiation power with manufacturers Curated list Growth 7x in last 3 years Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis Weaknesses Losing in the last 5 years Only online sell Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Analysis 450 480 million internet user based 90 100 million online 25 30 million Pepperfry target - 5.5 m registered customer - 60 % driven by repeat customer Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Decision criteria Leverage on your current strengths Increase revenue Time to market Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Alternative #1 International expansion Decision criteria Detail - Lack of experience in international markets. + Attractiveness of Indian culture Leverage on your current strengths - Implies investment in build branding and expansion process Increase revenue Time to market - Time costly Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Alternative #2 Expansion to selling other products Decision criteria Detail - Despite of knowing Indian market your brand is associated with furniture. Leverage on your current strengths - Investment in identify cross selling product. + Increase sales = Increase revenue - Identify local suppliers and selection process Time to market Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Alternative #3 Vertical integration: Start manufacturing furniture Decision criteria Detail - Lack of experience in manufacturing. Not aligned with core competencies. Leverage on your current strengths Increase revenue - Investment in factories Time to market - Long term strategy Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Alternative #4 Strength your omnichannel strategy in India Decision criteria Detail Leverage on your current strengths + Knowing of Indian furniture market. + Alliances with Air Bnb + Spin-off distribution and packaging to serve other companies. Increase revenue = Time to market Invest in R&D From Online & Offline to Online & NEW Offline + Online to Offline Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Alternatives Vertical integration: Start manufacturing furniture Strength your omnichannel strategy in India Expansion to selling other products Decision criteria International expansion Leverage on your current strengths = Increase revenue = Time to market Strength foothold in Indian market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Recommendation Strength your omnichannel strategy in India: leveraged on your core competencies R&D Pepcart Marketing Online to Offline Offline Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Implementation Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Financial Assumption: Current Fixed Cost Get Found: IPO Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Risks Risk: other competitors succeed into the market Market don t grow as expected: company pioneer into the market Situation Challenge Analysis Alternatives Recommendation Implementation Finance Conclusion
Conclusion How to maintain leadership and be profitable? Strength your omnichannel strategy in India: leveraged on your core competencies Online to Offline R&D Pepcart Marketing Offline
