India’s tech industry to gain a foothold in global markets 

The pandemic has birthed six major global megatrends that will remain relevant for the coming 5-8 years and beyond. The trends include: 

• Global Talent Pool Transformation
• Global Supply Chain Replanning
• Global Big Tech Regulation
• ESG-Led Business Models
• Formalization of Circular Economy
• Technology for Good @Pace and Scale
• North America, Europe, and Asia are potential markets for India’s tech startups as these markets are large. But, the challenge lies in market access. Nasscom along with the government will help Indian tech companies to find customers globally, for which they are setting a target of enabling 1000 deep-tech startups out of India by 2025. There will be more than 80 mentors from the world, who will empower these startups through their great experience and connections in global markets. 

How does the payment gateway in India work?

A question must be popping in mind how can a payment gateway aid in managing cash flows for an online business? The answer lies here. When a customer uses online payment mode through a credit/debit card, wallet, net banking, etc, the payment gateway conveys about the happening transaction to the website, the business owner, and the issuing bank with the help of payment processors and card network. Once the transaction is successful the amount is deposited in the business owner’s account after subtracting the payment gateway charges.

Most payment gateways in India assure a settlement of T+2 days, 2 here is the number of working days required to deposit the amount directly into the bank account of the merchant. But, if there are festivals or weekends, or bank holidays occurring in between it will be added to the minimum settlement period of 2 days, further delaying the process of depositing in the bank. For instance, say a transaction took place on 23rd Jan falling on a Wednesday, ideally, the amount should have been deposited on 25th Jan, now consider that it is a festival day, the bank would remain closed. The following 26th Jan being a national holiday and weekends would take the settlement period up to 6 -7 days.

This results in fewer funds being deposited in the bank and impeding the continuity of business activities such as paying bills, the salary of employees, wages of workers, purchasing raw material, etc. Therefore, faster settlement of transactions is essential for online businesses. 

Paytm’s T+1 payment gateway for quick settlements

Paytm’s payment gateway will offer T+1 settlement throughout the year, which will take only one extra day for depositing the amount in the bank. Unlike T+2 payment gateways, Paytm’s payment gateway will take a minimum of one business working day to deposit the amount irrespective of bank holidays and festivals. There will be zero times when the settlement period will exceed 6 days. Instant settlement by payment gateways will help small to mid-sized startups or businesses to better engage with their vendors and suppliers with liquid cash in hand and aid make an advance payment to procure raw materials. Low settlement periods are a boon to the businesses such as online grocery where the inventory turnover demands a continuous restock that requires a steady flow of cash or where the business model involves cash transfers in the form of awards, rewards, cashback, etc.

What lies ahead for the startups in snacking and smaller FMCG and beverage brands?

In the reality show, Shark Tank India we have witnessed several snacking startups, health beverages, and Ayurvedic foods are focussing on health and pitching for investments. The FMCG space is no longer occupied by the big companies and brands that have always been around. The covid year has made the masses realize the importance and potential of running their own business and saw a sudden increase in homegrown brands that promise to deliver chemical-free, all-natural FMCG products. The COVID educated, environmentally aware consumer base shifted their loyalty from big brand names to smaller newer brands and products. Therefore, smaller FMCG companies or startups should not shy away from serving the rural and semi-urban due to their low-income levels. There has been an evolution in the lifestyle of Indians across the semi-urban and rural segments that have primarily contributed to the surge in revenue generated by the FMCG sector in the country, and hence there holds a faster and broader growth for the FMCG sector in rural India.
Selling FMCG products in rural India can be driven through word-of-mouth sales, groups, and recommendations from friends and neighbours, which Dabur currently will be leveraging through Indane’s customers. If one customer is aware of the convenience of getting Dabur’s products delivered at the doorstep then the entire neighbourhood will try to avail products through this facility.

Extramarks and Arsenal: A healthy combination

Restricted to homes for over a year and a half, and studying through gadgets and digital devices is making kids glued to the screens which in turn is making them devoid of co-curricular activities and the joys of playing outside. Sports intervention in academics is necessary for enhancing the overall personality of a child. By introducing grassroots-level learning programmes, football workshops and expert sessions Extramarks will be encouraging students to understand the importance of exercise, nutrition, and healthy lifestyle from professionals and find some good, healthy role models to emulate, and who knows Arsenal’s next budding football talent might be from India.
As the students saw school doors shut for 1.5 yrs the physical education period or sports period has vanished from the syllabus. This is where Extramarks’s sports offerings will differ from other edtech platforms that currently provide digital learning solutions for academics. It will also help the platform scale its business globally as with this association it will be serving in markets where football is a popular sport.

What lies ahead for edtech startups associating with sports clubs?

By launching sports learning programmes in association with sports clubs for students the tech companies are benefited from a huge potential of expansion, become a product differentiator offering co-curricular lessons other than academic, inculcate the importance of healthy lifestyle and making school children understand that sport can be a career option and not just a hobby.

Small ticket loans are speaking opportunities for fintech players in smaller cities

Conventionally the loans offered by banks were for three purposes i.e.personal loans, home loans, and salary overdrafts. The pandemic has tightened people’s purses on discretionary spending due to job losses and paycuts, in which the fintech players are sensing this to be an opportunity to offer credit via BNPL for purchases in online grocery, e-commerce and food delivery. Fintech players like EarlySalary,Dvara Money, NIRA and Bueno Finance are growing steadily in this space with new customer acquisitions monthly with a growth rate of 25-30 percent. Other fintech players offering BNPL such as Simpl, Lazy,PostPe are acquiring customers aged 18-25 years who are novices to the banking system and at the early stage of their credit journey.

The small ticket loans space holds ample opportunities for the fintech players as advancement in technology and digital access is helping the players locate, reach and engage with new customers from smaller cities and towns. As per the joint report of TransUnion Cibil and Google, 77 percent of all retail loan enquiries were from tier-II cities and beyond. In addition to this online searches for loans from non-tier-I cities went up by two-and-a-half times between 2017 and 2020.

Virtual fitness: Fitness apps, virtual coaches, DIY videos, and more 

Being confined to their homes did not deter fitness enthusiasts from working out. The home workout apps in the lockdown witnessed huge downloads and the video streaming platform YouTube was flooded with instructional or DIY workout videos from several fitness influencers for beginners, intermediates, and experts. 

The Indian health and fitness app HealthifyMe saw an increase of 5 million users during the pandemic, contributing nearly a quarter of its user base of 21 million. Besides, workout videos there is also a rise in acceptance of virtual coaching apps, that caters to an individual’s holistic health and nutritional well-being by offering personalised and sustainable nutrition plans based on health goals such as losing weight, gaining muscle, and increasing strength and cardio, etc., grandma recipes, recommends accurate food portion and natural homemade remedies with proven outcomes and most importantly addressing immunity building. Apps on mental wellness such as practicing mindfulness and meditation are also on the rise. Classes that traditionally offered on-site yoga, pilates, and Zumba classes have pivoted online by live-streaming the sessions through digital tools. 

Moreover, the demand for at-home equipment will rise as some individuals prefer working out with machines. Realising this to be an opportunity, fitness and wellness startup Cult.fit in Dec 2021 has acquired at-home cardio equipment brands — RPM fitness, Fitkit, Onefitplus, and Urban Terrain. Earlier in 2021, it had acquired Tread, a Bengaluru-based smart fitness-bike startup.

These brands will provide smart at-home workout equipment that can be connected with smartphones to track performances, compete with friends, and workout in virtual game mode. 

What lies ahead for virtual fitness in 2022? 

The start of 2022 has already begun with a rise in covid cases, which speaks of lockdowns and more losses for the gyms. The livelihood of gym trainers has also been impacted. Therefore, it is the need of the hour for gym chains and fitness centres to launch their apps offering personalised fitness and nutrition catering to unique requirements, live streaming sessions, and hybrid fitness options. 

Also, AR and VR-based technologies are expected to foray into the virtual fitness market offering movement-based cardio exercises, music-based workouts, and game-based fitness activities such as boxing, sword fighting, and dancing thereby, offering an immersive and interactive workout. Also, working out in the metaverse will allow users to work out in groups, cycle racing and running, and compete with friends and peer globally.

What are the benefits of investing in digital gold?

• One can start investing in gold digitally with Re 1.
• It can be used as collateral for online loans. 
• The gold is genuine and the purity is 24k
• Its storage is safe and is 100 percent insured. 
• At anytime it can be converted into coins, bars, and jewellery and will be delivered to the doorstep. 

Its disadvantages include : 

• Rs 2,00,000 limit investment . 
• There is no lack of regulating body like RBI or SEBI 
• Companies charge for extending the storage period.

What is in it for the fintech platforms offering digital gold as an investment?

Investment in gold became an attractive investment due to its resilient nature to market fluctuations. Millennials were found investing in gold more than ever before. With immense trust in technology and apps, millennials will likely invest through these fintech platforms in digital gold. These fintech platforms will have an upper hand over traditional suppliers and will lower the entry barrier since they are making quantities of gold available digitally and will not require a huge amount to buy gold. But, there might be a probability to switch to gold ETFs and gold sovereign bonds since gold can be held for the long term as compared to digital gold.

D2C meat brands making the cut into lower-tier cities

It is natural to think that online purchases of meat and fisheries will not find as many customers as metro cities, but the aspirational mindset of the consumers of tier-II and tier-III cities sets off their experimental taste buds to try new cuisines. Hence, there is an immense potential in these cities that businesses need to unlock.
To cater to unique consumer tastes, Licious has enhanced its portfolio with a ready-to-cook (RTC) and ready-to-eat portfolio to include regional delicacies like chicken ghee roast for South Indian consumers and Kosha Mangsho for east consumers along with breadcrumb coated snacks and tandoori items. Licious plans to expand in 20 more cities.
Similarly, another D2C meat player FreshToHome plans to add new products under its RTC and RTE categories and plans to open 100 new stores across India in the coming 12 months.TenderCuts, a popular D2C meat outlet with its established presence in cities like Chennai, Hyderabad, and Bengaluru is planning to expand into 100 stores by March 2022.
Low rentals for physical shops are motivating these D2C meat businesses to strengthen their presence in cities than metros.

The expensive and branded meat

Meat sales spiked during the pandemic that gave rise to these D2C meat companies to quickly ramp up their supply capabilities to serve the needs of the consumer and gain trust. With its integrated value chains, a wide array of meat products, quality assurance, and convenience they are paving the positive perception of branded meat which will flourish their business in such cities. However, not forgetting that Indian consumers are price-conscious, a challenge might be awaiting in terms of price point. For instance, lets’ compare the prices of basic fish meat Rohu that in general costs Rs 150 a 1kg but when branded it costs Rs 250- 325.

The D2C meat market going offline in tier-II and tier-III cities hold immense potential as consumers are now concerned about healthy protein intake and are likely to purchase more from brands that engage directly with them. The brands are also driving the importance of hygienic meat that will be a major factor for driving sales in those cities.

The M-Live from Myntra

M-Live is Myntra’s live video streaming and commerce through which it aims to target fashion enthusiasts and social media young men and women who are seeking best-in-class fashion advisory and in-demand trends. The live video streaming consisting of real-time engagement between consumers and brands allows influencers and experts to host live video sessions of product and curated styles enabling viewers to shop instantly from the Myntra app.

The live sessions with fashionistas build a community that benefits an enthusiast from an expert’s styling tips, observations,questions asked, suggestions, etc. Thus, enabling well-informed shopping.

Myntra’s other social commerce propositions

Other than M-Live, Myntra has two other social commerce channels i.e. Myntra Studio and Myntra Fashion Superstar.

With Myntra Studio, users can get access to over 20,000 lifestyle content, shoppable fashion, and beauty products. In the past six months, Myntra studio has grown upto 25 times, and with big fashion brands able to build 2-3 communities with an engagement surge of 3-4 times on its platforms as compared to the ordinary influencer-driven platforms. The platform has stirred shopping behaviour amongst youngsters and premium shoppers from metros to aspirational shoppers from remote towns and cities of India.

Myntra Fashion Superstar is a digital TV reality show that brings out the creativity of fashion and beauty influencers. The images of episode winners are uploaded on the Myntra App where the clothes worn by them are shoppable.

Myntra also organises a live shopping marathon popularly known as Myntra Social Carnival that features more than 50 celebrities and influencers from 8 am to 10 pm only on the Myntra app.

Lastly, the piqued interest of the e-commerce behemoths to foray into social commerce is specially due to the increasing short video user base from tier-II cities and smaller towns. Leveraging which these e-commerce platforms can push their products driving high sales and engagement in the platforms.

D2C Brands going the traditional way 

After foraying into traditional retail these D2C brands such as WOW Skin Science, Sugar Cosmetics and Bombay Shaving Company witnessed a high frequency of orders. Below are some of the D2C brands that are planning to sell their products through physical retail. 

• Peesafe: A female personal care and hygiene brand that was founded in 2013. Cut to February 2021, Peesafe launched its first exclusive stores in 2021 in the cities of Gurugram, Bengaluru, and Ahmedabad; and plans to launch 50 offline stores in the next 12 months. There will be exclusive brand outlets launched through the franchise-owned and franchise-operated model. 

• Plum: Plum a paraben-free skincare brand has recently opened its physical in one of the malls in Mumbai. The purchasing journey of a customer goes through touchpoints of inquisitiveness, awareness, consideration, trials, and purchase. It is not certain that the processes are followed sequentially, but in the online purchases, some of the steps are skipped. A traditional retail store gives a combined experience across all the touchpoints and the assistance of humans also elevates the experience of buying and consuming the product. Plum has its shelf presence in more than 750 assisted outlets and more than 10,000 unassisted outlets. 

• Mellora: Where jewellery purchase in India consists of touch, feel, and trials, Mellora a D2C fine jewellery brand first launched as a digital-first brand. Before, purchasing a customer would like to try out designs, check for genuine gems or stones, etc. which makes having an offline storefront necessary. After, tasting success online, it has ambitious plans to open more physical stores. Currently, having six physical experience centres in cities Bengaluru, Delhi/NCR, and Bhopal, it aims to establish 350 experience centres across India. Moreover, it is adopting a hybrid approach where customers can choose products online and place the order offline in any of its experience stores.
  

  The shift to traditional channels from online – A good move 

Pivoting to offline retail is necessary for the online-only brands where the touch and feel of the product influence the purchase decision of customers. For better growth and penetration, the brands need to have better visibility physically for a larger set of consumer touchpoints. Face-to-face interaction with the brand in terms of fragrance, textures, look and feel increases customer’s persuasion eventually giving a smooth post-purchase experience.