Flash Winners - a new e-commerce model for success

The Harsh Reality of E-commerce in India: a Model’s Failure

The Indian Entrepreneurial Dream

‘Those who have no imagination will have to settle for reality’

The story of the successful entrepreneur who starts with

nothing and conquers the world feeds the Myth to be able to launch a company,

get quickly funded with several millions without

having generated even one dollar in revenue, sell the said company less than 3 years after and become

rich.

Unfortunately if you look at the figures from the last

couple of years, 50% of the e-commerce ventures that were launched have had to close their doors within 12 months and today 80% of

the ventures are financially hanging on a thread.

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The Apprehension of Market Codes

‘Those who understand the past are better prepared to build the future’

Instead of basing your market study on the question ‘Is it a good idea to launch an e-commerce venture in India?’ you should focus on finding the

answer to the only question that has an interest, ‘What are the needs of the market and how can I meet them effectively?’

The market is a collective thought that you must understand and apply to your daily activity.

Understanding it, interpreting it and implementing it can have just one goal: making sure your business exists.


The Mutation of the Indian Consumer

‘To understand a system, one must get the most out of it’

The Indian society has reached a point in history where the supply of goods and services is higher than the demand in many fields. The concept of abundance of products makes it so that

man surrounds himself inexorably with objects and

in the end, he sees and swears by them,

surrendering little by little his wish to become more

functional.

Do not trust the appearance, the Indian consumers are not becoming

more westernised. They are becoming more and more modern

and international, but they distinctly remain Indian.

The Indian consumer is mutating whatever the consumer class he

belongs to. It is not a transformation since he retains his cultural uniqueness. However, by

intensifying the consumer society, he could lose his soul!


The Fair Perception of the Winning Product

‘We discern from the world only what we are prepared to perceive’

Winning Products

While innovation is necessary, it should not be considered as

sufficient

The construction of

a range of products

around it is equally

important

Having a range of products,

even more so if they are new,

involves educating the

consumer about the manner in which they have to use

them

The mean of distribution is simply capital

especially in an unorganised

market


Rethinking Inventory Management: A New and More Efficient Model

A New Strategy To Reach Profitability

‘We can no longer think differently because we have been perfectly conditioned to perceive things in a certain way’

The pitfalls which directly affect the profitability of an e-commerce inventory-led model

The first issue is the inventory

risk which weighs over he

unsold products.

Delivery services could also be a thorn

in the entrepreneur’s side and free

shipping remains

something that batters the e-commerce’s

cash flow

The second profitability issue of the

inventory-led model revolves

around the marketing

costs to sustain the e-

commerce


A New Strategy To Reach Profitability

‘The difficulty lies not so much in developing new ideas as in escaping from old ones’ – John Maynard Keynes

The Mass Distribution Model

First you need to understand the structural relationship between the

distributors and the suppliers based on the

question – ‘How can I buy the products at

the lowest price?’

This model of revenue is no longer based

on margins but on the turnover of assets; the

profitability being reached

by the negotiation due

to a high volumes of

sales

The profitability is based on the ‘Back Margin’

model which is the result of the

negotiation between

distributors and suppliers to

generate new sources of revenue

REBATES

DISCOUNTS

COMMERCIAL CO-OPERATION


How can I implement this Model on my E-commerce?

A New Format for E-Commerce

‘The strongest is never strong enough to be hegemonic. At the awakening of the weakest, a new balance of power is established’

BACK MARGINS

REBATES DISCOUNTSCOMMERCIAL CO-OPERATION

Cannot be used at

the beginning

Cannot be used at

the beginning

Key of the model but cannot be used with a format ‘shop’


A New Format for E-Commerce

‘The most critical stone of your business is the foundation’

The new format which shall influence the negotiation between you and your suppliers on a more equitable level to generate new revenue is that of the

SHOWROOM.

This showroom format will allow you to bring up some services for your suppliers around 3 thematic – ‘Image – Distribution – Product Range’

To be efficient, this showroom must be a tool of predictable success!


The System as a Tool to Achieve the Model

‘To reach what is right, sometimes you must get rid of all the received ideas and build a new and more efficient System’

SYSTEM

IMAGE PRODUCT RANGEDISTRIBUTION

How are you doing to develop

an image strategy?

How will you highlight the

new products?

What will be your

undeniable rigour to

reassure your suppliers?


‘What we do in life echoes in eternity’ - Marcus Aurelius

In the coming years, more and more young entrepreneurs will try their luck on the e-commerce market and unfortunately, more and more

failures will emerge from this development.

Annihilation has taken over creation!

The idea of this book is to try to stem this phenomenon of chaos that affects entrepreneurs and give a little hope in this futuristic model that is

e-commerce in India.

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