About Company: How many times have you had a wonderful experience while purchasing a piece of furniture?

Have you ever wasted too much time and energy looking for a furniture that is simple yet classy? If you are struggling to find answers to any of the questions, welcome to Mebelkart. MebelKart.com is conceptualized to make your life easier. MebelKart is focused on providing its Customers "a world class experience " in Furniture retail. Formed by Industry professionals from IIT's and BITS, the Company aims to bring transparency into the system of Furniture selling through the use of technology. We intend to give our Customers the best prices with a lot of variety at one place. For this, we are continuously tying up with various Furniture manufacturers from India and in time, from the world to give our Customers a " world class experience" when it comes to pricing, designs and product quality. MebelKart.com is a bootstrapped company and currently operational in Bangalore and Mumbai. About the Project: This project requires analysis of furniture market in India, e-commerce market in India and the design of the strategy for its expansion. Please refer to the following points. 1. Calculate market potential of the online market? How do you determine industry sales and growth rate? 2. Prepare a model Income Statement and Balance Sheet for the firm based on the projections? 3. Strategy : What is better : Sourcing furniture/home decor from China, Malaysia or getting it from Local Dealers in terms of Price, Delivery Dates 4. Ways to acquire customers online? Considering we are a Internet Company, how can we reach Customers in an offline way( consider use of technology, franchising, etc) 5. What drives customer satisfaction for this industry and for the product(is it price, quality, date of delivery, packaging, guarantee, more and better designs, "different furniture" or something else) 6. Analyze the B2B market and compare it with B2C market. 7. What are the primary risks facing this opportunity? 8. Analyze the effects of entering of IKEA and other players in the market. In which ways can a collaboration be done.

9. If interested kindly do the valuation of the company and of the website http://www.ehu.es/cuadernosdegestion/documentos/1026.pdf br1571146 01144444121 br1743074

Final list of deliverables 1. Calculate market potential of the online market? How do you determine industry sales and growth rate? 2. Balance sheet/ Income sheet Projected statements/ Valuation 3. Strategy : What is better : Sourcing furniture/home decor from China, Malaysia or getting it from Local Dealers in terms of Price, Delivery Dates 4. Ways to acquire customers online? Considering we are a Internet Company, how can we reach Customers in an offline way( consider use of technology, franchising, etc) 5. What drives customer satisfaction for this industry and for the product(is it price, quality, date of delivery, packaging, guarantee, more and better designs, "different furniture" or something else) 6. Analyze the B2B market and compare it with B2C market. 7. What are the primary risks facing this opportunity? 8. Analyze the effects of entering of IKEA and other players in the market. In which ways can a collaboration be done.

The overall Indian furniture market stands at around 12.7 bn $ (Rs. 700 cr) and is posting significant growth over the past decade. This industry is considered as a unorganized sector since only 15% is attributed to organized players and the rest 85% to handicraft production. The consumer market is primarily categorized into 3 segments Household Contract Office furniture

The office segment constitutes around 20% of the total pie with the household segment contributing 65%. B2B Market opportunity

B2B presents several opportunities in the online furniture market. B2B commerce via the online market is a fairly established in the country with major players like indiamart, Alibaba. According to the report by Eprobe Research, E-Commerce has paved a way for the economy to rise in its standard of living which has ultimately resulted in huge revenues and introduction of new products and techniques. B2B Ecommerce Market Size (in terms of transaction volume) as on year-end 2008 was around $77.9 billion. B2B E-commerce market has been increasing at a rapid pace, reaching about $89 billion by December 2009, at a CAGR of 8.77%. While Indias B2B E-Commerce Market worth is estimated to be approximately $48.8 billion in 2011.

India has a large base of SMEs which are functioning in all parts of the country and following archaic forms of conducting business. The B2B market is providing them a global platform so that they can utilize the services of generating trade leads and keeping a track of current information on a real time basis. Foreign online marketplaces are also functioning in India providing businesses an opportunity to cater to the consumers abroad and also form trading partners. Majority of the B2B business is carried over in the office supplies and the contract segments. Among this, most of the business is concentrated in the Metropolitan/ tier I, tier II markets where internet has been able to dig inroads. Drivers: SME businesses in the Challenges 1. Significant Customer barriers - Most of the SME business in India presently takes place through the unorganized retail. Several factors govern the buying process and choice of channel for such SME businesses. Presently, most of these businesses fulfill their furniture needs through local contacts. Furniture being a high involvement product, customers generally research thoroughly and ensure they make a safe investment with reliable quality, post purchase customer service as key attributes. Also, the touch and feel aspect that the customer gets to have in a local retail outlet is missing in a ecommerce channel. 2. Penetration/ Customer awareness Much of the B2B furniture sales in India today happens through local contacts and physical selling. The online B2B market in underdeveloped with several structural challenges. Significant investment in marketing activities will be required to make the brand popular and to increase positive word of mouth. Also, since B2B in furniture involves a trust element, personal selling is generally more effective to push products to the customer than e-commerce. 3. B2B opportunity in specific categories of furniture B2B business opportunity does span a wide range of categories in the furniture/ home dcor space. Hence, to reap this potential, Mebelkart will have to build a suitable product portfolio in line with categories presenting maximum potential. A dedicated website for B2B planned by Mebelkart is a welcome strategy since

Competitors Client call MoM: Market size 12 bn, unfragmented, 4-5 bn office sales No warranty by local manufacturers, no commitment on delivery Model No inventory, local vendor sourcing at manufacturers cost, delivery time Problem with light inventory model Cannot keep track of vendors inventory real time. In the start, this model works, but later on move to Flipkarts model.. Launched about 2 months back.. 3 bean bag sales in Dec.. 35 bean bags in January..Avg 2500 per bag.. All from B2B.. Main cost developing technology, logistics, supplier relationships.. 53% from searches.. Supply at mebelkart.com.. exclusive B2B site Geographical spend and sales 50-50 from Bombay, Bagalore..Planning expansion into Hyderabad, Ahmedabad, Bangalore.. New categories Customer demand, Online feasbility