Bussiness Model for Doosh Groove cultural center

1. Course: Managing Creative and Lifestyle Businesses
Prof. Anchal Jain | Prof. Amit Karna
March 15, 2022
Submitted by: Group 2
Chitra Swathi K (PC20200019) Prasanth Kumar (PC20200144)
Anuj Sharda (PC20200208) Vaibhav Patil (PC20200174)
Vinod M (PC20200278) Karthikeyan R (PC20200127)

2. Outline
Jaypore
Introduction
Research
Methodologies
Strategy
Assessment
Competitor
Benchmarking
ABG
Acquisition
Future
Challenges
Growth
Recommendations

3. Introduction
• A cultural & lifestyle brand that focuses on discovering the
best designs from artisans and craftsmen across India.
• Set up in 2012 by Puneet Chawla and Shilpa Sharma as an
online platform to primarily serve the US market.
• Soon pivoted to serve the Indian market observing the
strong local demand.
• Focuses on products with unique and high-quality
craftsmanship. Product line includes apparel, accessories,
jewellery, home décor etc.
• Head office in New Delhi. Major offline stores in Delhi,
Bengaluru, Mumbai.
• Got acquired by ABG in 2019 for Rs. 110 Cr.
Genesis of the brand –
Mass Market Luxury Products
Massive White
Space
• The Indian consumer was growing in the socioeconomic ladder
and now had higher disposable income.
• There was an aspiration to grow experientially but the fashion
landscape had limited options for this burgeoning segment
who wanted more than ‘ordinary’ but less than ‘luxury’.
• The brand was born to cater to this white space.
• Strong curation skills, differentiated offerings, and the ability
to identify a niche segment were the brand’s keys to success.

4. Research Methodology
Primary Research Insights from Primary Research
1. Personal Interviews
• Co-founder (Shilpa Sharma)
• Store manager (Jaypore Delhi store)
• Current employee (Senior Designer, Manish Kakkar)
2. FGDs
• Conducted FGD with people across various age groups
• 2 students
• 2 elderly women/men
• 4 young working men/women
3. Store Visit
• Visited stores of contemporary brands in Ahmedabad
(BIBA, Keri, Fab India, Global Desi)
1. Competitive landscape analysis
2. Industry market research reports
FGD
• Prefer offline shopping experience for ethnic wear
• Once developed an interest towards a brand, tough to
switch
• Buying ethnic wear is a family event, so shopping
experience is important. Women usually have greater
say in decision making
• Use cases of ethnic wear for women extends beyond
occasions to office and casual wear unlike men and kids
Secondary Research
Personal Interviews
Store Manager:
• About 80% in-store visits are by repeat, well-informed
customers
• Customers are informed about new stocks via WhatsApp
and phone calls
• In-store staff have prior experience working in designer
boutiques and international brands

5. Strategy Assessment| Early Business Decisions
Customer Acquisition Strategies Dealing with Low Conversion Rates
Online vs. Offline Presence "To get an existing customer to buy more would always be
easier than to bring in a new customer" - Shilpa Sharma
• Started with focus on Indian diaspora in the US. Realised
that acquiring customers abroad would be more
expensive.
• Quickly pivoted to serving local customers instead.
Customer acquisition costs in India were much lower.
• Most customer acquisition abroad later happened
organically through word-of-mouth.
• Started with an online-only approach with no offline
presence.
• Realised that offline presence is crucial to establish
credibility and to supplement the core online business
• Today, the business continues to be ‘online-first’.
• However, the offline stores act as important feeders to
the online sales, creating a strong virtuous cycle.
• The conversion rates [total people who buy/total people
who visit the site] for Jaypore were shockingly low in the
early days (1%) compared to most other websites ~20% [1]
• Jaypore countered the low conversion rate by focusing on
extracting more value from each customer. [1]
• Average Order Value (AOV) for Jaypore was ~Rs. 4k as
opposed to Rs. 1k to 1.2k for most other sites in 2012-13. [1]
• The gross margins at Jaypore in the early days were ~40%,
which were considered to be slightly below industry
standards. [1]
• To counter this, Jaypore forayed into private labels which
helped them boost their profitability and margins.
• Another strategic choice was to start with apparel first and
then expanded to other segments.
Dealing with Low Margins
Source – Fortune India

6. Strategy Assessment | Consumer Orbits and finding the MUSE
Connoisseur
Amateur
Novice
Jaypore had a very strong
focus on identifying the right
target segment or the ‘MUSE’.
Jaypore’s target customer was
a woman who is well-read,
well-travelled, socially
connected, has a fine taste in
aesthetics, and one who
valued quality over
affordability – A TRUE
CONNOISSEUR.
Once the muse was identified,
Jaypore has always been about
the connoisseurs.
Connoisseur
Amateur
Novice

7. Strategy Assessment | Creating and Managing value for the MUSE
Quality and
Aesthetics
Cabal
Events
6 new collections
per day
1:1 interactions,
Special gifts
Focus on quality and
aesthetics to fulfil
the needs of the
core customers
instead of ‘deals’ to
attract the
amateurs/novices
Special ‘Cabal
Events’ for their top
customers who are
allowed sneak peeks
and exclusive access
to products before
launch
Launch of 6
collections/day or
~2000/year to
satisfy the
connoisseur desire
and need of
‘knowing’
Managing the value
for customers by
sending meaningful
gifts, allowing no-
questions-asked
returns, personally
handling queries etc.
Connoisseur

8. Strategy Assessment | Stakeholder Analysis (Forming an Ecosystem)
Design Procurement Manufacturing
Distribution
& Logistics
Sales &
Marketing
Private Label
Company designers, Artisans/
craftsmen, craft co-operatives
& communities
- Craft clusters – Ministry of
Textiles
- Partnership with various
communities & artisans
based on seasonal demand
Centralized
procurement of fabric
and handed over to
the artisans/craftsmen
At the artisans/craft
communities
location
Ensured by Jaypore Social media
marketing
Branded products | Marketplace model
Jaypore
SMEs, Vendors Connoisseurs

9. Strategy Assessment | Value Proposition
Exceptionalness, Rarity and Authenticity
Rarity
• Private labels
• Focus on pure artisanal / handicrafts
Authenticity
• Offline stores
• Experienced top management
• Sustainable supply chain
• High quality
Exceptionalness
• Curated products (Aesthetic)
• Instore experience (Self)
Muse Characteristics
• Conscious consumers with mature purchasing habits
• Invest time and thought in researching before making a
purchase decision
• Principles of sustainability, authenticity, supporting the local art
and craft communities
• Make a statement away from mass consumption
High
High
Low
Low
Rootedness
Assimilation
2 1
3 4
Muses are chosen
so that they adopt
and refer, evident
via WOM

10. Increasing the AOV & CLV
• Jaypore chose to stick with connoisseurs only, this limited the
customer base they could target
• New product categories were introduced to attract more
connoisseurs
• Jaypore slowly emerged as a one-stop solution, thereby
increasing the AOV and the CLV of the existing customers
Strategy Assessment | Increasing CLV, AOV & Offline presence
"Jaypore was always meant to be for connoisseurs.. may be
the novices will never come and that's ok" - Shilpa Sharma
Increasing offline presence
• Jaypore started with one store per city strategy
• Offline presence is now being increased to build credibility
and fill in the Value-Market fit gap
• They started with their offline store in Delhi first
• The next destination was Bengaluru, where they have now
expanded with stores in HSR Layout, Indiranagar, Whitefield
and Kammannahalli.
• Mumbai also has a Jaypore offline store now.
First store in Delhi Main store in Bangalore

11. Competitor Benchmarking|Comparison with Fab India
During pre- and post-acquisition, Jaypore has maintained its high aesthetic value in its offering
Inferences
• In the quest to scale up, Fabindia diluted its product
offering and moved away from 1st quadrant to 4th
quadrant
• Jaypore stayed true to its brand to satisfy the
connoisseurs by delivering artisanal hand-crafted
products which are truly Indian
• Other players solely focus only on craft-
based merchandise in isolation of the craft
communities
• Only stand-alone stores with a better ambience and in-
store experience compared to the competitors
High
High
Low
Low
Ephemeral
Aesthetics
2 1
3 4

12. Competitor Benchmarking |Store Visits and Insights
Related stores are located in the same area in the mall Description of the muse in the stores
Information about the craft and art form displayed in the store Product tags with information about the craft and
craftmark stamp (which adds authenticity)

13. ABG Acquisition of Jaypore
Double digit growth of ethnic wear market led ABG to acquire 5 ethnic wear brands since 2019 starting with Jaypore
• ABG trying to make up for its lack of presence in ethnic
wear market
• Launched sarees under the Rangmanch brand and men's
ethnic wear under a sub-brand LP Maharaja
• Has shelled out over 535 Cr in investments across 5 ethnic
wear brands
• Aim of creating a strong online presence
Strategic changes and future plans for Jaypore
• Introduction of new product categories after acquisition
• Menswear
• Kid's wear
• Personal care
• Transition to omni channel. Plans to open 6-8 offline store in
coming 2 years.
• Change in pricing strategy. Started offering discounts
• Inventory reduced by 30% after acquisition in FY20
• Focus on increasing market share and reaching to a wider
audience.
• Emphasis on volumes and affordability to penetrate into
smaller cities.

14. Recommendations (1/3)
What ABG
wants
Steps taken by ABG and
concerns with it
Recommendation (What and How)
More
Revenues
• Introduction into new
product categories
• Good strategy. No
concerns.
• Product like Dressing Gown and Bath Robes which are
not offered right now
• Private labels for wallet and belts which resonate with
brand Jaypore instead of listing other brands like
justtanned.
Higher
Awareness
• Marketing to everyone–
even the novices
• Without targeted
marketing, Jaypore will
not help reach the muse
of the brand and would
be approaching the
wrong customer orbits
• General awareness of the brand can be increased
through ATL marketing (hoardings) at strategic
locations choices like airports
• Generate organic marketing through the connoisseurs
using gifts instead of blatant advertising.
• For example, brands like Sabyasachi focuses on
augmenting its value and use indirect marketing by
partnering with wedding event shows like Band baaja
bride on NDTV and sponsor couture for celebrities

15. Recommendations (2/3)
What ABG
wants
Steps taken by ABG and
concerns with it
Recommendation (What and How)
Broadening
the Price
Spectrum
• Creating new collections
with one premium
variant and one low-
cost variant
• Reduced prices defies
brand proposition
• No price reduction in the main Jaypore brand
• Do not even create a low-price variant for Jaypore as
this would end up attracting other customers like
amateurs and novices
• Launch a new brand altogether under ABG umbrella to
cater to the other customers and not under the brand
name of Jaypore
Expansion of
the Offline
Footprint
• Plan to move to even
tier 2 cities and beyond
• They will need to dilute
the prices for increasing
affordability in smaller
towns which contradicts
the brand proposition
• Expand to international cities, In India only focus on
metros and tier 1. No tier 2 and tier 3
• Suggested cities are Chennai, Kolkata, Hyderabad,
Ahmedabad and Jaipur
No offline presence in East India

16. Recommendations (3/3)
What ABG
wants
Steps taken by ABG and
concerns with it
Recommendation (What and How)
Expansion of
the Customer
Base
• Moving to new
customer segments –
amateurs and novice
• This can drive
connoisseurs away from
the brand
• Increase number of connoisseurs.
• Launch a new ‘invite only campaign’ in addition to
Cabal events where current connoisseurs can bring in
the new connoisseurs.
More
Volumes
• Focusing on mass
production, offering
high discounts
• Will tarnish the brand's
USP of 'slow crafted
artisanal offerings'. It
will end up becoming
'yet another Fabindia'.
• Drive volumes by focus on increased frequency of
purchase and increase average order value
• Frequency increase through increase in engagement
• Average order value can be increased by entering into
unexplored premium categories

17. THANK YOU

18. References
1. https://www.fortuneindia.com/enterprise/jaypore-growing-from-clicks-to-
bricks/102691#:~:text=We%20deal%20in%20products%20that,in%20India%20but%20also%20globally
2. https://www.jaypore.com/
3. https://www.instagram.com/jaypore/
4. https://www.facebook.com/jaypore/
5. https://www.google.com/maps/search/jaypore+store/@18.6633419,72.4127337,7z
6. https://www.youtube.com/c/Jaypore/about
7. https://www.abfrl.com/businesses/other-businesses/
8. https://www.adityabirla.com/media/media-releases/abfrl-e-commerce-brand-jaypore-forays-into-menswear
9. https://www.livemint.com/companies/news/aditya-birla-fashion-and-retail-acquires-jaypore-1560186894864.html
10. https://economictimes.indiatimes.com/prime/consumer/abfrl-is-on-a-shopping-spree-and-wants-to-dress-all-
ethnic-but-can-it-maintain-its-exclusivity/primearticleshow/82004352.cms
11. https://www.fibre2fashion.com/interviews/printinterview.aspx?Id=12790&sectionType=Face2Face
12. Images – Internet Search Engines (E.g., Bing, Google)