1 Thamel

Abstract
In our case study we have included the study on different cases; each case study is analyzed in detail in different parts. It includes study on thamel.com, esewa, ebay, mondex and PayPal. Thamel.com is ecommerce based company serving the diaspora Nepalese community by defining a new way of online business. TDC has developed local solutions to local problems with increased local product development and sales, and has attracted and retained customers by localizing its online content. The company has also expanded markets for local vendors, and has encouraged the establishment of new businesses. E-Sewa is a dynamic and interactive platform for electronic payment which has changed the way of payment, gradually replacing the traditional way of payment. It has become an infrastructure for internet and network services mainly for Nepal. It has provided secure and efficient way for online payment mostly for utility payments. eBay is as an attractive ecommerce based business model that eliminates the need for a sales force and inventory. It has provided the new modern method for online business saving time for business with secure, effective and efficient technique. Due to these features it has been widely accepted by diverse community of people. MONDEX is the best choice which can be used as an alternative to paper cash. It provides safety, reliability, efficiency and portable means of online payment accepting payments from diverse fields. It has become beneficial for consumers around the world making the business easier and safer. PayPal is the modern technique of business payment acting as an alternative to the traditional way of payment. The online business has flourished well due to the way PayPal works which provides an easier and safe method for online payment. PayPal is the easier and efficient way for online payment with wider acceptance from people from different sectors.
Acknowledgement
No creation in this world is a solo effort. For completing this case study successfully we have got help from many people. We are grateful to the persons and our friends who have helped us to accomplish this project by giving us proper guidance and required materials. In particular we would like to thank: Mr.Rajan Karmacharya, our lecturer for giving us the guidance for performing the overall study. Mr.Balkrishna Joshi of Thamel.com for giving us the permission to study the overall process of the company and providing information we needed. Mr.Bishwas Dhakal and Nita Khanal of eSewa for providing the detail information about eSewa.
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Part
Case Study on Thamel.com
Contents
Abstract ............................................................................................................................................ i Acknowledgement .......................................................................................................................... ii
1.1 Company Overview .................................................................................................................. 1 1.2 Company Origin........................................................................................................................ 2 1.3 Company Structure ................................................................................................................... 4 1.4 Market Overview ...................................................................................................................... 4 1.5 Modus Operandi Of TDC ......................................................................................................... 6 1.5.1 Export Division .................................................................................................................. 6 1.5.2 Thamel Remittance ............................................................................................................ 7 1.5.3 Thamel Gift Shoppe ........................................................................................................... 8 1.6 Business Ecosystem ................................................................................................................ 10 1.7 Conclusion .............................................................................................................................. 11
Bibliography ................................................................................................................................. 12
1.1 Company Overview

Thamel.com (TDC) is marketing and Development Company established in 1999, located at Panipokhari, Kathmandu, Nepal. The company sells goods and provides remittance service through its online portal www.thamel.com. With high quality customer services and as pioneer in the field of e-commerce in Nepal, the company has already built trusted brand name. This in turn has helped TDC to rapidly grow and expand further the services it offers. The company currently has three divisions: Thamel Gift Shoppe: Basically sells gifts to the Nepalese diaspora1, which are then procured and delivered locally to their family and friends still living in Nepal. Thamel Remit: provides comparatively low cost remittance services than other remittance services in Nepal. Export Division: helps entrepreneurs export products by providing e-commerce platform.
The most profitable out of them is gift portal, built on a collaborative platform of about 50 different Nepalese vendors. The social value proposition that the company provides these vendors is exposure to global market and generates new sales that would have been otherwise never possible without TDC platform. TDC offers both software and expertise to the affiliates in its network. On, other hand, it has been messenger of sentiments of Nepalese Diaspora to their homeland Nepal in many occasions. With 12 years of IT experience and more than Rs 10,000,000 investments in infrastructure development, TDC has mastered in technology proficiency. Thus, they enable several selected vendors to export their products directly to customers abroad. Through partnerships with local and international banks, TDC also provides low rate online remittance transfers and other financial services to its customers.
http://bscitinnepal.blogspot.com
The goal of TDC is to create new opportunities for Nepalese workers, generate cultural value, and help move local businesses in a new direction. To accomplish these goals, TDC has built several key practices into its business model: 1. Targeting the Diaspora: Nepalese Diaspora, like all Diasporas, feels pride towards their homeland, and wish to connect to it from afar. The companys motto is We are the messengers of sentiments of Nepalese people residing abroad. TDC taps both the sentiments and resources of the Diaspora to the benefit of local Nepali industry. 2. Empowering local business: TDC empowers local businesses with ICTs and enable them to reach to global market. According to Joshi, Our key contribution to Nepalese society is to kind of help them think differently in strategy, implementation, and stressing the point of localization of content. 3. Innovative use of technology: With more than Rs 10,000,000 investments and 12 years of experience, TDC has pioneered the use of ICTs to empower businesses within the country. 4. Localization: The Company has expanded globally by focusing locally: products and promotions take into account local contexts and cultures; all gifts are produced and procured locally; even the software platform used by the company was developed locally. 5. Customer service: TDC has brought a Western-standard of customer service to Nepal. In the process, it has built a trusted brand name that gives it a competitive advantage over its rivals, while also making it easier to offer new products and services.
1.2 Company Origin

Thamel.com (TDC) was founded in early 1999 with an initial investment of Rs 17,50,000. Thamel.com is named after tourist hub Thamel at Kathmandu. The site was initially set up to be the first comprehensive online directory of local Nepalese businesses and aimed at foreign
tourist. TDC provided local businesses with a profile page, Web site link, and email address. For an additional fee, the company offered to design, register and host a businesss homepage. TDC was also the first portal to offer city maps, java enabled chat, and online tools to learn basic Nepali.
Within a year of its start, the sustainability of company was in doubt as things did not work as they had expected. At the end of first year, most of the companies didnt renew their subscriptions. This was because they could not easily see a direct benefit from their Web presence. There was no mechanism for companies to discern whether or not email inquiries or store traffic was generated through the online business directory. A substantial decrease in tourism also hurt the business model.
The problem in business model made TDC to rethink. Thus, they made research. Interestingly, the research revealed that 80% of TDC site visitors were Nepalese Diaspora, not foreign tourist the site was intended for. They had visited the site for Nepali news feeds and chat rooms. As a result, TDC decided to set up a small e-commerce portion of the site aimed at the Nepalese Diaspora. The site allowed Nepalese Diaspora to purchase a small number of cakes and flower arrangements online. These goods were then procured locally in Kathmandu and delivered to friends and relatives still living in the city. Upon delivery, a digital picture was taken of the gift recipient and sent to the gift sender as confirmation of delivery.
The business was slow and steady until Dashain. During Dashain, TDC began selling gift certificates that would allow the recipient to choose and purchase a goat themselves at the local Khasi market. TDC ensured recipient personal tastes allowing them to choose color and size of goat as they are significant for offering. Around 225 goats (Rs 21,00,000 worth) were sold during the first year. The success drew huge attention of local press that was then picked up by BBC World. As a result, the company got massive publicity and great deal of awareness among the Nepalese Diaspora about the companys services. Then, the company kept e-commerce part of the business at top priority, and new vendors and products were quickly added. Dashain provided the local context that was key to the turnaround of the online venture.
1.3 Company Structure

Thamel.com is a privately held firm based in Kathmandu that is also registered in the State of Oregon, USA to do retail transactions. Final decisions are made by the founders and heads of the company, Bal Krishna Joshi and Rajesh Joshi (no relation). They have implemented an American style of management that takes into account local sensibilities. The company currently employs 50 people fulltime and expands to up to 100 people during peak festival times. New employees will be hired primarily on the specific skill set they bring to the operation. Mr. Balkrishna Joshi himself takes part while hiring new staff as well as while training new staff on how to operate. Employees who work at least a year also qualify for shares in TDCs employee ownership plan. Currently, 15% of the company is owned by the employees. This entitles them to 15% of company profits as long as they remain employed at the company, but no direct ownership of shares of the company. The target is to increase this number to 40% over the next several years.
1.4 Market Overview

Nepalese Diaspora includes 1.2 million people. However, TDC only represents 3,00,000 as its current market target. TDC is focusing its services basically on developed countries. This is because these countries have higher IT literacy rate and their market needs and more well-defined. Nepalese Diasporas to these countries are also more likely to be able to afford the cost of gift merchandise.
Nearly, three-fourth of customer comes from USA alone. USA, Australia and UK together account 92% Diaspora population TDC is targeting. The customer from other countries like Dubai, Qatar and Saudi-Arabia can be increased since these countries are also hiring High Skilled Nepalese Diasporas (like Doctor, Engineer, Nurse, Supervisor, etc) who are usually aware of use of internet.
The biggest market opportunities for TDC are in Hong Kong and Japan. Their combined Diaspora population equals that of the USA and Canada, but account for less than 2% is current customers.
1.5 Modus Operandi Of TDC

1.5.1 Export Division
TDCs business expansion plans focus largely on increasing exports to both diaspora and nondiaspora customers. Currently the export has been increasing, hence delivering the Nepali products to the International Communities.
The main export from the TDC is mainly the Nepali Handmade Khukuri which reflects the bravery of famed Nepali Gurkha Warriors. For this thamel has also established a separate portal in its website. It is the most expanding export business today for TDC. Besides that company also exports other items like Thangka Paintings which includes Tibetan, Newari and Nepali thangkas.
1.5.2 Thamel Remittance

TDC also deals with money transfer and financial services and it is among most expanding business of the TDC. Thamel.com began to offer money transfer services in late 2002. TDC has approached and partnered with Nepal-based Kumari Bank Ltd (KBL) to launch its money transfer services. In addition to lowering transfer costs, it is the first remittance platform that directly connects the customers, local banks and the recipients between the USA and Nepal. The process is as follows: through an Automated Clearing House (ACH) service, the funds are debited from the customers account and credited to Kumari Banks Nostro account in New York. Once the funds are credited, Kumari Bank delivers the money though its local distribution network. This transferred amount is then debited to the recipient account. This money transfer service provided by TDC much more relevant to the Nepali Diasporas and recipients. Although this transfer process may take 2-3 business days but is provides 50-60% less cost of transfer than other forms of existing transfers services like Western Union Money Transfer, IME etc. Also, it also reduces the danger of carrying cash and hence enhances security. This is why this business is currently expanding in huge manner.
1.5.3 Thamel Gift Shoppe

The Thamel.com Gift Shoppe is an e-commerce portal that sells a wide variety of goods including cakes, sweets, flowers, electronics, apparel, cosmetics, jewelry, toys, motor bikes, and other home accessories and appliances. Gifts are purchased by the Nepalese diaspora for procurement and delivery to relatives still living in Nepal. Payment is processed through Verisign, which also provides an address verification to ensure that all orders submitted through email are valid. Once an order is received, Thamel.com calls or faxes the request to the appropriate vendor and determines when the item will be available. With this information, TDC then arranges a pick up and delivery time for the goods. If an item is not available, the customer is informed and can either choose an alternate product or a later delivery date.
Supply Chain
The company contracts with about 100 vendors selling more than 8,000 products online. These vendors which dont use ecommerce themselves, and without the TDC platform, would not be selling products online. Vendors are recruited based on their ability to deliver order on time, the quality of their product, the presence of a locally recognized brand, and the novelty of a vendors background story. Each vendor is required to sign a standard contract with TDC which defines the nature of the business relationship, including pricing structure, commissions, order delivery obligations, and payment terms. Vendors must provide the goods to TDC on credit and are paid on a monthly basis. They must also agree not to sell their products through any other online portal, and offer a gift exchange and not repair on damaged big ticket items like a TV or refrigerator, thereby providing a higher level of customer service.
Demand The majority of TDC business is associated with a festival or holiday. Mothers Day and Sister and Brother Day are the busiest holidays, followed by Fathers Day are Valentines Day. Vendors typically offer, on average, 20-30 products online, often combined in the form of a gift package. Certain products are seasonal, such as sweets associated with specific festivals and goats during Dashain. Other products, like flowers and cakes, are bought regularly, often for birthdays or weddings.
Distribution TDC has five distinct types of items to distribute: perishable, non-perishable, large items, products to be delivered outside of Kathmandu, and export products to be delivered outside of Nepal. Perishable items include cakes and flowers; flowers first come to the central office, while cakes are stored in the producers refrigerators for pickup and delivery in one trip. Like the flowers, nonperishable items are brought in centrally and then distributed. Larger big ticket electronic items, such as refrigerators or washing machines, are delivered from the vendor by a technician who will set up the gift, explain to the recipient how the item works, and provide long-term servicing. A representative from TDC is also present to ensure customer satisfaction and to take a photo for delivery confirmation. Thamel.com uses the Kourtier courier company (and its nationwide network) for deliveries to major cities outside of Kathmandu. No digital photo is taken instead email confirmation is used. At one point, 15% of gift orders were for delivery outside Kathmandu, but now that number has dropped to around 5%. The major cities outside Kathmandu where products are delivered are Pokhara, Biratnagar, Dharan etc.
1.6 Business Ecosystem

Item order/pick up request
Vendor
Deliver item
Purchase order
Item/pick up confirmation
Customer
TDC
Deliver item Delivery confirmation Digital photo Delivery order
Recipient
Digital photo
Delivery Department
Figure: TDC Business eco-system
Different business may have its own type of ecosystem. Here we are focused to TDC business eco-system which is clearly depicted in the above data flow diagram. The business cycle starts with the customer request for goods from Thamel Dot Com. For this the customer need to log in if he or she is already a member of TDC else a sign up is required. TDC request for item with the vendor. The vendor delivers the item to the recipient. The delivery department takes the digital photo of the recipient and delivers it to the TDC. TDC also deliver the order to the recipient through the delivery department.TDC then send the digital photo or e-mail for delivery confirmation.
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1.7 Conclusion
Thamel.com has proved to be a successful business making profit for the diaspora Nepalese community and defining a new way of online business. Localization has also been key to the companys success. TDC has developed local solutions to local problems, increased local product development and sales, and has attracted and retained customers by localizing its online content. The company has also expanded markets for local vendors, and has encouraged the establishment of new businesses. TDC has continuously improved its product and service delivery, developing a trusted and recognized brand name that allows it to more easily experiment with new products and services. The companys unique combination of e-commerce, remittance, and business development services demonstrate how combining the power of IT and diasporas can create opportunities at the base of the pyramid.
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Bibliography
1. http://bscitinnepal.blogspot.com
2. http://money.howstuffworks.com/paypal.htm/printable 3. http://en.wikipedia.org/wiki/Ebay 4. http://www.mondex.com 5. https://www.paypal.com 6. http://thamel.com/ 7. http://www.ebay.com/ 8. https://esewa.com.np/ 9. http://MostVisitedBlogInAsia.blogspot.com
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other parts are also available at:


Thamel.com eSewa Mondex eBay Paypal
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Abstract

Case Study on Thamel.com

1.1 Company Overview

1.2 Company Origin

1.3 Company Structure

1.4 Market Overview

1.5 Modus Operandi Of TDC

1.5.2 Thamel Remittance

1.5.3 Thamel Gift Shoppe

1.6 Business Ecosystem

Figure: TDC Business eco-system

other parts are also available at:

Thamel.com eSewa Mondex eBay Paypal

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