IDCEE 2013: Wikimart overview - Maxim Faldin (Co-founder & Co-CEO @ Wikimart)
Transcript of IDCEE 2013: Wikimart overview - Maxim Faldin (Co-founder & Co-CEO @ Wikimart)
overview
Wikimart history2009 2010 2011 2012
$12.5 mlnfrom Tiger Global
$17 mlnfrom Tiger Global
& RussianInstitutional Investor
$12 mlnfrom Tiger Global
& AngelsFundraising
Business model
Key metrics
B2C Marketplace Marketplace + Retail
Marketplace + VMI
1 -powered Retail
$0.7 mlnfrom Angels
1 VMI — Vendor Managed Inventory
GMV, mln $GP, mln $Retale sales, mln $MerchantsVisits (Dec), mln
7.1
2,400
11.14.6
2.21.5
2,200
5.6
3.4
1,300
1.30.7
400
0.4
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overview
Wikimart in reality: sweat, mistakes, and hard-learned business model
2008 2009 2010 2011 2012 2013
Business model
"eBay for Russia"
“Russian Rakuten”
SEO-driven B2C marketplace
Marketplace + Stock retail
VMI-driven retail +
Stock + Marketplace
VMI + Stock +
Marketplace
Market
Moscow Moscow Moscow Moscow Moscow Moscow + Regions
Key discoveries
Classic auc-tion-style model irrelevant in Rus-sia. C2C taken by
classifieds
20,000 online
merchants exist in Moscow, acquisi-tion cost low. SEO works fantastically
Merchant quality insufficient, can't
be improved on a current scale
Marketplace gross margin, service
quality insufficient, becomes a threat
Stock retail re-quires different online MKT, sig-nificant working
capital/warehouse
Model works, need scale-up.
Merchant quality improves
Merchants
- 400 1,300 2,200 2,400 3,000
VMI-partners
- - - - 70 200-300
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overview
Wikimart business model
23 mln customers 1
1 23 mln people were making online transactions out of 68 mln people regularly using Internet in 2012.
Merchants2,400
Suppliers100
Wikimart stock3,000+ SKU
VMI stock100,000 SKU
Marketplacemerchandise2,000,000+ SKU
Predictably convenientOne service standard for every purchase
Human touchAttitude of a small shop
around the corner
One-stop-shopLarge available selection
for all my needs
Smart ChoiceEasy to make the right choice
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overview
Pure Market Place: endangered species
Vertical e-commerce: not a multi-category player
Offline stores for online customers: no format yet
Vendor managed inventory: future of e-commerce / market place
Flash sales: a feature, not a business
Main e-commerce models
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