March 23, 2015
We visited Dominos’s 72,000 sq. ft. commissary located close to Mumbai to understand the competitive advantage the company derives from its supply chain. Note that the commissary is a key component of the supply chain and it coordinates the supply of raw materials to the stores. The commissary serves 240 stores across c800km radius in west India (stores across Maharashtra, Gujarat, Goa, and regions of Udaipur (Rajasthan), Indore (Madhya Pradesh)) and it has potential to serve c400 stores. While the key contracts (rates, terms) are negotiated centrally, the commissary is responsible for day-to-day orders (for vegetables, flour etc) and it ensures that all stores receive raw materials in 2-3 days. Note that beverages are provided directly to the store by the vendor.
It maintains three warehouses: Read more
March 9, 2015
The total value impact of the long-term growth story for e-Commerce should not be underestimated, in our view. One of the key reasons for this relates to current annual online spending per buyer. Across the developing world, eMarketer estimates that buyers spend c.US$600 per year. This compares with an average of US$1,500 for most developed countries and very high levels of more than US$3,500 for buyers in the UK and Australia. Estimates from eMarketer indicate that the total value for the online retail market in the key emerging and largest developed countries may reach US$2trn by 2018. This would represent an annual average increase of 19% from 2013 levels.
Scenario analysis for the e-Commerce globally
Retail We calculate total retail spending for the key regions by forecasting nominal GDP by year for the next 10 years and assuming Read more