MUMBAI, FEBRUARY 22: The Skumars.com e-commerce initiative is well on trackand will go online by the third quarter of 2000, Vikas Kasliwal, chairman ofthe group said here on Tuesday.As part of its campaign to increase awareness on e-commerce in the country,the company is launching a four-week campaign on television across 18different satellite and regional channels, print media advertising in 334editions in 11 languages and outdoor advertising on 18 lakh square feet ofhoarding space.
The Skumars.com project will employ 50,000 V-sats across the country toprovide Internet connectivity, the rationale being to overcomeinfrastructural bottlenecks like connectivity in the country.
Over the last couple of months, the project attracted international interestfor the sheer size of the project. The Financial Express had reportedearlier that Hughes from the US and Gilat an Israeli company, are primecontenders to bag the world's largest V-sat order. Mukul Kasliwal, director,S Kumars group, said that negotiations are in the final stages and that thedeal will be closed soon.
Eventually, Skumars.com intends to leverage its retail network across thecountry by equipping them with computer terminals, which will connect to theInternet via the V-sat network.
Mukul Kasliwal said that the company would use a content, commerce,connectivity model to create revenue streams. The business model, beingbuilt on a 4C platform (connectivity, content, communities commerce), isdesigned to work in a rural environment. Till that market is tapped, MukulKasliwal says, e-commerce cannot take off in India.
On the possibility of acquisitions, Mukul Kasliwal said, "Why block capital?We'd rather go in for alliances." He added that the company is scouting forpartners who will provide content.
Mukul Kasliwal also indicated that Skumars.com is building paymentmechanisms which does not rely on credit cards. More pertinently, thattraditional Indian anaganwadis will be roped in to take care of thelogistics.
Potential franchisees which include the existing retailers for the company'stextile products, have to pay Rs 2 lakh to join the network. This equipsthem with a V-sat, a computer terminal, printer, and a UPS.
While not elaborating how, Vikas Kasliwal said that franchisees can lookforward to a 40 per cent return on their investments. These franchisees willbe supervised by strategic business associates (SBA), who, in turn, aresupervised by the parent company.
When the project takes off, "we will need at least 20,000 franchisees to beeconomically viable," Vikas Kasliwal said.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.