market study india. bebedeparis pdf

your baby gifts everywhere

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Franchise network Your best franchise opportunity


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Our business: births! There will always be births – making this a very reliable business.


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The business

bebedeparis is leader in the Spanish baby gi9s sector:

. 7.540 gi9s per year.

. An emergent e-‐commerce business.

. Time to internaConalize.


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The business

bebedeparis is a leading company with more than 20 years of experience in its sector: Baby Gi9s for Newborns.

The company targets people or companies who want to send a gi9 to the new parents.

bebedeparis offers a large catalogue containing more than 200 different baby gi9 baskets, covering a broad price range starCng at €50 up to €300.

The delivery of the gi9s is in less than 24h. The gi9s are delivered by our perfectly uniformed bellboy in Madrid and Barcelona. Other ciCes, private delivery service.

Given the success of our products and the increasing number of shops who wish to order our products, Bebedeparis has started a new commercial line by wholesaling to mulC-‐brand shops.


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The business The business started in 1994 with a babies’ shop in Barcelona.

Now in 2015, the business in each country consists in retail sales (with no shops) to customers and also wholesale selling to mulC branding babies’ shops.


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Founders & Shareholders

Elena Gomez del Pozuelo Founder / General Director

A serial Internet entrepreneur with more than 11 co-‐founded companies. Expert on e-‐commerce and digital markeCng. President of Adigital (the Spanish Digital Economy AssociaCon).

es.linkedin.com/in/elenagomezdelpozuelo

Sara Fernandez de la Aldea Founder / CEO

Internet entrepreneur with 22 years experience in product design, logisCcs, imports and exports. Responsible in dealing with customers and prospects.

es.linkedin.com/in/sarafernandezdelaaldea

Luis Comas Founder

A well-‐known lawyer in Spain. Over 30 years experience advising MNC. 17 years as global legal leader at PWC. Currently General Counsel and member of the Management Board of the Volkswagen Group in Spain.


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Shareholders

Juanjo Azcárate

CEO at CCC. Vicepresident of Adigital. Founding shareholder at Womenalia, GesCón de Medios (Zenith OpCmedia), Incipy, Inesdi, Increnta, Incube, Yoquieroescribir, HallSt…

Alfonso Torres

CIO at AUIRGA GLOBAL INVESTORS. Shareholder and member of the Management Board at Womenalia, HallSt...

AROÑUCA 2007 SL

Represented by Rafael Saenz de Santa María and Juan Saenz de Santa María. Business angels specialized in technology based start-‐ups.


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2011 2014

CHANGE BRANDING

FROM “la Cigüeña del Bebé” To “BebeDeParis”.

2015

Chronology OUR BIRTH

La Cigüeña del Bebé S.L. started in Barcelona with a shop.

Sara Fernandez was in charge of the business

1994

ECOMMERCE Elena Gómez IncorporaZon.

Central warehouse Madrid

We opened a showroom in Barcelona.

Wholesales Opening of the new

wholesaling commercial line.

PRESENT internaZonalizaZon process through

a unique e-‐commerce master franchising concept, granZng only

one license per country.


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Vision To create the 1st world network in baby gi5s

your baby gift everywhere


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competitors A highly-‐fragmented local market.

there is no other international network in baby gifts

.


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. Service, service and service.

. PerfecCon and glamour.

. Fast and elegant. ·∙ Very prepared for selling to companies. . 100% saCsfacCon amongst our customers

and moms. . Word of mouth.

Why we are different?

Our bellboy


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A baby is born.

The customer buys a gi9 online or through his phone.

We prepare the gi9.

We deliver it to the hospital or a home address.


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Client acquisition

EXHIBITIONS CALL CENTER OTHERS

E-COMMERCE COMMERCIAL WORK

CUSTOMERS: .Retail

.Wholesale


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Customer Profile 31%

Large Accounts -‐ Mul>na>onal Companies

Small and Medium-‐Sized Companies

36% Individuals

33%

Today, bebedeparis has a fixed clientele, divided into Large Accounts or MulCnaConal Companies and Small and Medium-‐Sized Companies, with around 12.000 customers only in Spain.

These customers have made special agreements with bebedeparis, as their Human Resources policies include providing a courtesy gi9 for employees, customers and business partners when they give birth.

The Human Resources Department, or General Manager’s Assistant are normally in charge of buying the gi9 baskets.

Some companies may prefer to order their baskets over the phone. The web page also includes a hotline in each country alended by a direct sales person.


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Some of our customers


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Baby baskets

!  Personalized gi9s. !  Licenses; e.g. gi9s for football fans. !  Gi9s for special events; baby showers, bapCsms, etc. !  Personalized company gi9s. !  Special gi9s for twins. !  Special gi9s for older siblings. !  Special spa gi9s for moms. !  Special spa gi9s for stressed dads. !  Special gi9s such as photo sessions, baby massages,

baby sinng vouchers, etc. !  Special gi9s such as personalized DVDs and books.

!  Diaper cakes. !  GreeCngs cards. !  Text proposals. !  Photo frames. !  Xmas presents. !  Gi9 vouchers. !  Personalized embroideries. !  DifferenCated baby-‐boy and baby-‐girl gi9s. !  Gi9s are classified by theme, price and occasion (birth,

christening, etc.).

There are more than 200 different gi9 basket combinaZons available. Customers can choose from:


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Order history Order History in Spain

bebedeparis started its internaZonal expansion in 2014


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The heart of the company The bebedeparis warehouse

The heart of bebedeparis is its warehouse. A well-‐organized storage area of about 300/ 600 sqm depending on the country’s potenCal, fully stocked with products and baskets and serving as the business base for the franchise concept.


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Internationalization plans bebedeparis is now looking for exclusive internaConal franchisee partners in each country.

The company has prepared a compelling business strategy aimed at bringing success to both franchisor and franchisee.

More than 80 different domains have already been registered worldwide.

.com

.cn

.com.ar

.com.br

.es

.fr

.it

.jp

.mx

.ru

.pe

.co.uk

.de

.cl

.ma

.in

.tw

.at

.be

.dk

.hu

.ec

.pl

.pt

.cz

.se

.ae

.us

.com.ve

.ch

.nl

.hk

.ca


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Benefits of a bebedeparis franchise franchise

12 reasons to choose bebedeparis


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1st reason

The future is online: e-‐commerce and mobile commerce in Europe 2013: €280 billion, + 20% (every year).


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2nd reason Country exclusivity:

Possible franchisee income is very high: ranging from €0.25 million to €20 million, covering 2-‐5% of births in the country in 5 years.

The turnover in each country depends on 3 factors:

1.  The number of births per year. 2.  Internet penetraCon and development of e-‐

commerce in the country. 3.  Purchasing power of companies and private

individuals.


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3rd reason No high street retail store is needed: only a local warehouse (around 300-‐500 sqm on the outskirts of a large city) with no major investment outlay.


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4th reason A secure business that is not subject to fashion, regulatory changes, etc. Babies will always be born and companies and friends will always send gi9s to new parents!.


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5th reason The Franchisor will produce all the products needed by the franchisees network so all the Stocks will be provided by Franchisor.

So franchisees do not have to worry about products. They only have to place their orders 2/4 Zmes a year to Franchisor (3 months in advance).

The Franchisor will send the merchandises 3 months a9er the placement of the order.

There is no stock le9overs -‐ only lasCng products that do not change from year to year because tradiConal gi9s are always fashionable.


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6th reason One of the biggest issues the franchisee may encounter is to seile the right sizes. In bebedeparis we solve this problem by selling just 1 size of baby clothes (3/6 months), and always use tradiConal colors: blue, pink, white and grey.

Most mothers-‐to-‐be prepare their baby layele for 0 to 3 months. Therefore, we only offer gi9s for babies aged 3/6 months – it’s much more pracCcal!.


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7th reason The Franchisor provides franchisees network with an exclusive, unique collecZon with the best quality products at very reasonable prices.

The franchisees will order to the franchisor all the products he may need for the next three months, every three months. Nevertheless, the first order will cover the first 6 months and it will be selled by the franchisor.


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8th reason Our unique collecZon can be offered to babies’ shops by wholesales.

Due to the big margin in products, the Franchisee can also become the exclusive distributor of all the bebedeparis products not only by retail but also by wholesaling to babies’ shops.

This allows them to obtain even greater incomes.


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9th reason Become part of a leading internaZonal e-‐commerce network and start doing business immediately (a great deal of mulCnaConal companies are already customers).

For example, in Spain we already have as customers very big mulCnaConal companies that could become customers in other countries.

We provide our franchisees with our client contacts in other countries.


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10th reason Orders from other franchisees across the world will benefit all the franchise network, taking advantage of the digital marketing investment across the entire network.

Every franchisee invests around 13% of its turnover in its own digital marketing to get orders online in his country.

The sum of all franchisees’ investments will benefit everyone. For example, there will be Spanish companies with employees in other countries, such as Mexico. The order is paid in Spain but the franchisee in Mexico will dispatch it and get paid by the company in Spain.


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11th reason Franchisees do no need to worry about online and digital marketing as this can be managed by a central agency in Spain that employs SEM specialists (google adwords) in several languages.

If the franchisee has experience on digital marketing he can choose his own agency in his country. Nevertheless he will have a contractual obligation to spend a 9-15% of his annual income for his own digital marketing to promote its own sales.

The Head Office provides each franchisee with its own web in its own language. e.g.: www.bebedeparis.fr, www.bebedeparis.de, www.bebedeparis.mx…

The Head Office will adapt the franchisee’s web to local country legislation and payment methods.

Franchisees should focus on: .marketing the service amongst big companies (human resources or purchasing departments) .logistics, i.e. preparation, personalization and delivery of the gifts.


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12th Reason and the most important reason!

A very profitable investment: the recommended retail price is 3.10 Cmes the purchase price.

That is, franchisees have a 70% margin on their sales, which is one of the greatest margins on sales in European Franchises.

Depending on the country, franchisees should start making profit in their second year.


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India franchise network


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Births in India

·25.642.200 babies were born in 2013. (50 births per minute).

·Fecundity rate of 2.5 babies per woman. (Higher than any European country)

·Estimated growth rate of 1,6%.


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Consumers •  The dynamism of the economy has brought an

increasing purchasing power to the middle class (350 million).

•  There has been a direct proportion of growth between the increased Indian purchasing power and the light childcare products market. Educated Indian parents acknowledge the importance of using childcare products, this leads to quickly accepting new childcare occidental products.

•  Furthermore, Indians are much more aware about brands. Consumers tend to buy branded products that they recognize. Thus, is essential to invest in marketing and advertising in order to promote a product.

•  Great variety of birth cultures in India, most of them involve presents. (Hindu birth culture, two religious rituals specially relevant that involve presents: Jatakarma and Nama-Karana)

•  Anyhow, great deal of emotions & feelings when offering a gift: we have to impress!

Source: Llegar al consumidor indio-Banco Santander http://bit.ly/1x7MYiJ


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$5.410

$0

$1.000

$2.000

$3.000

$4.000

$5.000

$6.000

India

Purchasing power parity

Source: The World Bank-GDP per Capita: http://bit.ly/18gtvTm

PPP is used to compare economies and incomes of people by adjusting for differences in countries to make an meaningful comparison.

India’s share in world GDP in terms of PPP, makes India’s economy as the third largest in the world.

Despite high inflation in recent years, prices in the country are still well below those in advanced economies, explaining the higher ranking for India on the PPP measurement.


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Interesting Facts: India

233.904.000

16.000.000

0

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

India Spain

Contract workers

Source: Spain: SBA Fact sheets 2013 India: New companies data base service: http://newcompaniesindia.in/

823 754

2785

1984

0

500

1000

1500

2000

2500

3000

3500

4000

India Spain

MNC foreign affiliates

MNC headquarted in the country

MuZnaZonal Companies presence


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Competitors: India A lot of little companies but very atomized, no specialists in corporate gifts

•  The market research company RNCOS, estimated in 2012 that the Indian market of light childcare products accounted for over 9.000 million €. It predicted a growth annual rate of 17%. Being able to achieve by the end of 2015 a market valued in 15.000 million €.

•  The elevated fertility rate, together with an increasing conscience of consumers and purchasing power, aggressive marketing strategies, change of habits and the growing acceptance of high-end products will allow to maintain the high demand over childcare articles.

•  Moreover, the light childcare products market of India is a highly fragmented and informal market, that accounts with more than 90% of small and medium sized independent selling points. The convenience and affordable prices of these small business has allowed the preponderance of the informal sector.

•  Nevertheless, investors are focusing on e-commerce platforms in order to achieve a greater presence on a rapidly growing market. Furthermore, direct foreign investment is getting more and more involved in the e-commerce sector, which will favour the formalization and organization of the Indian Market

*Source: El mercado Indio de la puericultura ha crecido de manera sustancial en los últimos años, atrayendo la atención de muchas empresas internacionales. Key4communications.com


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Our direct compeZtors: Specialists

mybabycart.com

firstcry.com

babyoye.com


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Our direct compeZtors: Specialists


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We will have to be present in marketplaces like:


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What products can work in the Indian Market?

What categories of products do have the best commercial output in India? Products of the categories of hygiene, child cosmetics, food products and accessories, fashion and design, nappies and toys register high levels of demand and can be easily encountered in small and medium selling spots

What categories of products do have the worse commercial output in India? Products considered basic or very accessory, such as child furniture, published or paper based products, school merchandising, educative kits and sport tools amongst others.


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Source: E-commerce in India-Wikipedia: http://bit.ly/1j8PyQt

12.500.000.000€

14.000.000.000€

0€

2.000.000.000€

4.000.000.000€

6.000.000.000€

8.000.000.000€

10.000.000.000€

12.000.000.000€

14.000.000.000€

16.000.000.000€

India Spain

Generated revenue by e-‐commerce transacZons (€)


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Internet penetraZon. E-‐commerce India


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Our estimations in 5 years time for India

. Baby gifts for 0,5% of all births in the country; 120.000 orders.

. Average order price: €30 (2438,76Rs).

. Possible annual franchise income: €4.200.000.

.Ebitda: 1.144.618 €

Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain, under no circumstance these estimations imply a contractual or legal binding between the franchisor and the franchisee. Furthermore the franchisee acknowledges and assumes that the success of the business and objectives herby shown depends entirely on the franchisee performance.


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0,5% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

India Spain

The % of total amount of births served in 5 years Zme Total births per country



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35€

112€

0€ 20€ 40€ 60€ 80€ 100€ 120€

India

Spain

Average order price taking into account PPC and e-‐commerce development



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4.200.000€

1.882.342€

0€

500.000€

1.000.000€

1.500.000€

2.000.000€

2.500.000€

3.000.000€

3.500.000€

4.000.000€

4.500.000€

India Spain

Possible income esZmaZons in 5 years Zme



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Franchise conditions Exclusivity: 1 franchisee per country. The entrance fee includes:

1.   Business and brand exclusivity in the country for 10 years. 2.   Transfer of know-‐how from a proven business in Spain. 3.   OperaZons manuals: a general manual, an operaZons management manual, a human

resources manual, an equipment and maintenance manual and a legal manual. 4.   70% margin on every sale, the most favourable condiCons in all the sectors. 5.   There is no breaking of the stock as the collecCon is permanent. 6.  The central has a disposable stock in the warehouse through out all the season. 6. System of personalised, conZnuous and technical assessment. 7. Support and conZnuous communicaZon amongst all the departments and the central. 8. IniZal trainning (both theoreZcal and pracZcal) as well as recycling seminaries. 9. IntegraCon of a consolidated company in the childhood fashion business. 10. Ecommerce planorm

190.000€ ENTRANCE FEE


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.CustomizaZon of IT pack €10,000 Website in the native language, back office, etc…

Franchise conditions other investments and cash flow needed to open a bebedeparis franchise in a country

.Digital markeZng investment on its website 15% of the total incomes per year.. From 3.000€/month depending on the country.

.IniZal stock for the first six months: from €90,000

ENTRANCE FEE

.EsZmated warehouse and office adjustment costs €30,000 Initial investment: civil works, furniture, uniforms…

.3 % royalZes that will be invoiced every 3 months

.EsZmated equipment €22,000 Office equipment, printing machines, embroidery machine, company car…Most of them can be leasing


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Franchisee profiles Relevant

1.  Economical capacity. The starCng investment in India will be around: 300.000€. 2.  Business experience and a client and contact network in the entrepreneurship sector of his country. 3.  Entrepreneurship character and capacity to develop an economical acCvity. 4.  CommunicaCon and business skills, specially with clients, suppliers and employees. 5.  Disciplinary spirit but with capacity to be creaCve and innovaCve. 6.  Perseverant. 7.  Working capacity and being able to work towards targets. 8.  Demonstrated abiliCes in management and an educaConal background on business, markeCng or similar.

Irrelevant

1.  Knowledge and experience in the e-commerce or digital marketing sector. 2.  Having an operative warehouse. 3.  Sex or age of the candidate are absolutely irrelevant.


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Franchise selling process 1. The Franchisor receives an informaCon request by a candidate. 2. IniCal answer through phone or by e-‐mail by the Franchisor, in order to establish personal contact. 3. Email with general informaCon of the Franchise. 4. Skype conversaCon with the candidate and if it is posiCve , the Franchisor sends the ConfidenCality Agreement ( NDA) 5. Once the NDA is received dully signed, the Franchisor will send specific details as the Franchise Agreement and precontractual informaCon. 6. PreparaCon of the orientaCve Business Plan for the country of the candidate. 7. Discovery day by the possible Franchisee. 8. NegoCaCon and signature of the franchise agreement. Payment. 9. Franchisor visits the possible headquartes of the Franchisee. 10.The Franchisee will receive further informaCon and will receive his training for a week in Madrid.


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Executive Summary

1. BebeDeParis, is a first mover company in the layeles and baby gi9s sector, which was created in 1994 as La Cigüeña del Bebé, SL. 2. BebeDeParis is the 1st global online network in baby gi9s and offers one of the greater margins to their franchisee by offering up to 70% over every sale. 3. There is no need for retail shops, just a warehouse where deliveries are processed. 4. Bebedeparis is looking for internaConal franchisees in order to offer them an exclusive franchise for each country. 5. The central offices where the logisCc centre is set are located at the Polígono industrial Európolis de Las Rozas, Madrid. 5. BebeDeParis accounts a completely automated system for the communicaCons between franchises and central offices. 6. Furthermore, every franchisee will have its own and exclusive e-‐commerce web from which he can make its retail and wholesale selling. 7. The strategy used by the firm for the expansion is done through its own webpage in Spain and through its franchisees’ webs. 8. Its biggest asset is the centralizaZon of all the processes through its logisZc centre in Madrid: Design, patronage, buying's, logisCcs, commercials, expansion and administraCon. 9. BebeDeParis has a permanent collecZon of classic gi9s for babies, whose design is internally elaborated by a professional team. 10. Great advantage: baby gi9s never go out of fashion and we only work with one measure: 3 to 6 months. 11. We always work with the best fabrics. Our designs are recognized by their tradiConal colouring in the babies world: blue, pink, white or light grey. 12. BebeDeParis accounts as well with a collecCon of stuffed items, cosmeZc products and a wide range of complements.


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Business’ keys .70% margin on every sale. Right now, the most favourable condiCons in all the sectors. .Almost 70% of the sales are done by companies that gi9 their employees or business associates whenever they give birth and a 30% of the sales are done by individuals to gi9 their family and friends. ·∙There is no breaking of the stock as the collecCon is permanent and the central has a disposable stock in the warehouse through out all the season. .System of personalised, conZnuous and technical assessment thanks to a follow up of the sales. .Support and conZnuous communicaZon amongst all the departments and the central. .IniZal training (both theoreZcal and pracZcal) as well as recycling seminaries. .IntegraCon of a consolidated company in the childhood fashion business, with more than 20 years of experience and a conCnuous growth.

The franchisees in each country can have up to 3 ways of income.

Income of retail selling (70% margin) .Income of sales to companies and individuals in the Bebedeparis web page of their country. This are automaCc e-‐commerce sales. .Income of sales to companies with an annual agreement for the delivery of baby gi9s to their employees and business associates.

Income of wholesale selling (33% margin): .Income for the sales to baby fashion related shops at their countries. Each franchise is also the exclusive distributor in his country for all the products and collecCons of Bebedeparis being able to sale both to retail shops and online shops.


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Elena Gómez del Pozuelo [email protected]

Sara Fernández de la Aldea [email protected]

TEAM

Founding partners

InternaConal Team

Ecommerce/digital markeCng: Rocío Carreras [email protected]

InternaConal expansion: Juan Carlos Agulló [email protected]

Finance/AdministraCon: Rosa Muñoz [email protected]


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market study india. bebedeparis pdf

Business

baby gifts

baby gi9sfornewborns

dierent baby gi9 baskets

gescndemedios zenithopcmedia

yearsasgloballegalleaderat

vicepresidentof adigital

importsand exports

large catalogue