LAUNCH OF SECOND HAND ELECTRONICS STORE

Group 6 Rashi Garg(19), Ankit Gupta(23), Goral Shroff(49), Nishant Singla(50), Vaibhav Wadhwa(55)

Second-hand stores sell a huge variety of merchandise, from baby clothes to power tools and DVDs. No matter what the economy is like, second-hand businesses are attractive because they allow consumers to buy gently used, quality goods at a fraction of retail price. Starting a second-hand store is less expensive than most other types of retail operations, but to be successful you will still need to put a good deal of research and dedication into your business.

FORMAT: SECOND HAND GOODS STORE

On the basis of ownership On the basis of operational structure On the basis of retail location On the basis of brands
Sole proprietorship / Partnership Independent Retailer Business-associated location

Multi-brand retail

CATEGORY : CONSUMER ELECTRONICS

Mother Category: Consumer Electronics Category: Laptops, Phones, Gaming Consoles, Portable Music players, DVDs, Accessories Sub Category Segment Sub-segment Brands Variants

SKUs

CATEGORY MIX
Width Length

Depth
Consistency

TYPES OF CATEGORIES
Destination: Laptops, Cell phones, Gaming consoles Routine: Movie DVDs, Music CDs, Games CDs, portable music players Occasional/ Seasonal: desktop computers

Convenience: Accessories, headphones, chargers

EXISTING COMPETITION
Unorganized Players
GizmoHub faces competition from stand alone stores in the unorganized sector which buy & sell second hand goods such as TVs, Washing machines, mobile phones, music systems etc. However, there is no player in this market which has covered products like DVDs, Games CDs, gaming consoles, laptops, tablets, accessories etc.

Gray Market
Gray market where consumer electronics are bought and sold at lower prices is another competitor. Here, the surety about product quality is lacking.

Online portals
The toughest competition is posed by online portals which buy and sell used products in various product categories. Eg. Olx, Quikr, ebay, lynx-india etc have established themselves very well in this business and have a sizeable presence in the used goods market

YNew
Its Indias first organized reseller of second-hand screen products. It has one store in Hyderabad as well as an online presence (www.ynew.in)
It provides free pick-up and delivery , product testing and certification, price fixing, product showcase, installation etc.

Strengths
1. Allows the customer the actual look and feel of the product before making the purchase 2. Builds trust as there is face to face communication between GizmoHub and the buyer 3. Can provide its customers with after sales service 4. GizmoHub has a varied category mix which provides it with first mover advantage in the upcoming market

Weakness
1. Investment in renting store space, designing, layout, dcor of the physical store etc. 2. Limited geographical reach 3. Increased expenses due to overheads, salaries to staff etc. 4. Increased operational expenses reduces profit margins

SWOT
Opportunities
1. A multichannel retail format would enhance reach and increase customer base 2. India is a huge market for buying and reselling of used goods in various product categories 3. Franchising to expand quickly across India

Threats
1. Online portals which are in to the same business are well established with a strong customer base

2. Online portals can expand faster & at a lower cost

3. The business idea is easy to imitate

GAP ANALYSIS

Online 2nd Hand Retailers/ Brick and Mortar Retailers/ Individual Sellers

BRANDING: LOGO

Technology Easy to Buy, Easy to Sell; For What its Worth! https:// www.gizmohub.com

BRANDING: TAGLINE BRANDING: WEBSITE

CATEGORY MIX
Main Category: Gadgets and Gizmos
Sub Category 1: Laptops and Accessories Laptops/ Chargers/ Batteries/ Mouse/ Keyboard/ Other computer accessories

Sub Category 2: Mobile Phones and Accessories Smartphones/ Multimedia phones/ other phones/ accessories Sub Category 3: Music and Games Portable music players/ speakers/ tablets/ gaming consoles/ CD-DVD packs Sub Category 4: Cameras

SEGMENTATION AND TARGETING

Functional: Buyers/ Sellers Age Based Segmentation 8-15 Years, 16-20 Years, > 21 Years Products which can cater to all these segments

8-15 years: Music and Gaming Products 16-20 Years: Music and Mobile Phones >21 Years: Cameras, Laptops and Mobile Phones

POSITIONING
A reliable and expert store which provides quick and inexpensive access to latest technology Tagline: Technology Easy to Buy, Easy to Sell; For What its Worth!

MARKETING STRATEGY
PRICING
Cost of purchase of the product from the seller + testing and refurbishing cost + markup (depending upon the condition of the product like year of original purchase, condition etc.) Cost also includes free service warranty for 30 days after the purchase MODE of PAYMENT Cash/ Credit Card/ Debit Card System Points System/Loyalty Scheme

LOYALTY TABLE
Credit 2000-5000 5000-10000 10000-20000 20000-30000 Points per month 200 300 500 1000

PLACE
The initial sore would be launched in electronic markets a Tier 1 city like Nehru Place Market in Delhi The expansion plan would be to open 35-40 stores in a city and to target all Tier 1 cities

VISUAL MERCHANDISING

VISUAL MERCHANDISING
Front Entrance- Glass doors containing posters of the stores and promotional offers playing if any Store divided into 4 parts according to different sub-categories 1 sales person to assist and operate gadgets in each section wearing a proper gizmo-hub cap and uniform Light colors and effective primary lighting to be used (as seen in images) Sound- Latest Bollywood/Hollywood numbers in low volume

Scent- to be controlled to give the feeling of freshness

Graphics to be used on the wall to tell customers about existing offers and signages at the roof to guide them

ELEMENTS OF COMMUNICATION
Ads on Local TV channels, newspapers and radio channels
Can use this platform for the launch of the store also Ads be made of attractive deals

Fliers Digital Space

Website
Separate sections for buyers and sellers Product Showcase section Location and contact number of stores

Facebook
Using Facebook Ads and creation of a Facebook page Display of attractive deals

Word of mouth