Flipkart – Dutch Uncles

Live Commerce: The New Way to Shop

Shalmoli Sarkar — Wed, 10 Nov 2021 08:30:02 +0000

In October 2021, e-commerce behemoth Flipkart announced its partnering with homegrown short video platform Moj to enable video and live commerce experiences. An e-commerce platform partnering with a short video content app is expected to improve customer touchpoints and boost video commerce to engage with the upcoming 200 million first-time e-commerce shoppers.

Last-mile delivery and heavy discounts – remained the two main anchors latching on which the e-commerce platforms firmed their place during their emergence in India. But, with the breakout of the Covid-19, the dependence on online purchases grew exponentially. Be it cosmetics, fresh fruits, and vegetables. FMCG, electronics, apparel, or toiletries, today’s digitally-savvy consumers are purchasing everything online. With this, their expectations of having done satisfactory online shopping have surpassed the basic- on-time delivery and discounts. Till date, the online shopping experience was lacking the touch of human interaction that cannot be fulfilled with chatbots.

Therefore, the e-commerce platforms are replicating the same brick-and-mortar offline shopping experience through live commerce where the hosts can have a real-time interaction with the potential consumers through live video to make instant purchases eventually giving repeat businesses in the future.

According to a report by RedSeer consulting firm, the gross merchandise value of live commerce through short video is estimated to touch $ 5 billion in India 2025.

‘‘

According to a report by RedSeer consulting firm, the gross merchandise value of live commerce through short video is estimated to touch $ 5 billion in India 2025.

How live commerce will create value for e-commerce?

Live commerce can help D2C and e-commerce brands and e-commerce in two areas:

Increased conversions: According to a study by Mckinsey, the companies that have adopted live commerce are said to have reported a 30 percent conversion which is 10 times more than conventional e-commerce.
Improve differentiation and brand appeal: There is a tooth-nail competition for brands operating in the online space with similar offerings especially in the apparel and cosmetics vertical. Live commerce uplifts a brand’s appeal, bringing out its distinctiveness to pull in additional web traffic. According to Mckinsey’s findings, companies are experiencing an increase in their younger audiences by 20 percent.

How do retailers and brands are using live commerce?

Here are some of the global brands that are reaping the benefits through live commerce:

Shein: Chinese fast-fashion retailer Shein hosts a live stream in collaboration with fashion influencers every week on different trending styles. A live video is raw and unplanned that gives out honest reviews to naturally connects with the audience. Shein’s live videos are popular among its customers.

Maybelline: According to Harvard Business Journal, thousands of new products are launched annually out of which a mere 5 percent of them taste success. Maybelline uses live streaming to reveal new products, product lines. They created hype by introducing teasers such that they attracted audiences’ interest to attend the live stream. When it comes to cosmetics, their shades might differ from the catalogue shade from what when we use it, therefore a live video gives an idea to the customer about what might a particular shade look like on their skin.

Maybelline’s live streaming of its new lip flush oil lipsticks sparked a conversation with its audience and sold off 10,600 pieces of it.

According to statistics shared by Bain& Company in India, live commerce companies SimSim and Bulbul have gained y-o-y growth of 0.5 million and 1.2 million respectively.

Scope of live or video commerce in India

Although in its infancy, live commerce has sufficient scope in India. Unlike conventional e-commerce shopping that is transactional, it adds a fun element and brings the element of discovering new trends or hacks. With the increasing number of Gen Z and millennials joining the workforce they are the future customers already inclined to consume video content due to OTT platforms and significant time being spent on social media.

The post Live Commerce: The New Way to Shop appeared first on Dutch Uncles.

Rules to Acquire – Mergers and Acquisitions in India

Aakash Sharma — Fri, 30 Jul 2021 05:35:11 +0000

Acquisitions and mergers are a major route for many start-ups, SMEs and even established companies in their business life. The origin of many of today’s most prominent companies can be traced back to this business practice – Disney/Pixar and Marvel, Exxon and Mobile, and Google and Android, among many others.

In India, various regulatory frameworks manage mergers and acquisitions (M&A) activities. The objective of these laws is to build the process of M&A more transparent so that it will protect the interest of shareholders and entities involved.

‘‘

The economic development since 1991 has resulted in a drastic change of economic environment for the commercial sector in India, enhancing the market for commercial control categorized by M&A and other varieties of corporate reformation.

Regulatory Framework for Mergers and Acquisitions

The Companies Act, 2013

The Companies Act is the primary law applicable to all companies registered in India. All business transactions, including mergers and acquisitions, must comply with the Companies Act of 2013.

Securities Laws

The securities in the Indian market are subject to the rules and guidelines issued by the Securities and Exchange Board of India (SEBI). M&A transactions are also dealt with within SEBI’s Substantial Acquisition of Shares and Takeovers amendment of 2018.

Foreign Exchange Management Act (FEMA), 1999

Foreign Exchange Management Act (FEMA) guidelines state that any exchange that intends to settle mergers in India must abide by FEMA guidelines. FEMA guidelines also require the supervision of full-time responsible persons such as administrative staff and secretaries who are members of the companies, as the companies involved in such cross-mergers have a testamentary liability.

Major technology acquisitions in recent years: Flipkart, eBay and Myntra

In 2017, Flipkart raised $ 1.4 billion from global technology leaders eBay, Tencent and Microsoft, announcing a merger with the Indian branch of eBay. eBay invested $500 million in cash and sold their business to Flipkart in exchange for an equity stake in the e-commerce giant. In addition, Flipkart acquired Myntra in 2014 for $300 million. The move consolidated Flipkart’s position in the e-commerce market and placed it on the global map of tech start-ups that “made it big.”

2021 Byju’s Acquisition Spree

Since 2020, edtech decacorn Byju’s has been on an acquisition spree. In July 2021, Byju’s acquired Great Learning, a professional and higher education company, for $600 million, and US-based digital reading platform Epic for $500 million. In April 2021, it bought out Aakash Education Services for a whopping $1 billion, affirming its space in the traditional coaching segment. Most famously, in August 2020, Byju’s bought ‘coding for kids’ edtech start-up WhiteHat Jr for $300 million.

Byju’s acquisition spree is helping the firm increase its lead over its competitors such as SoftBank-backed Unacademy, Simplilearn, UpGrad, Vedantu, Amazon Academy and traditional education institutes.

How do small businesses and start-ups get affected by acquisitions and mergers?

Many financial and business experts argue that acquisitions by big corporates exhibit their predator behaviour as they buy out the competition to maintain a monopoly. And that seems true in many cases; case in point, Facebook’s acquisition of Instagram and WhatsApp. It made Facebook the world’s biggest social media giant with transcontinental reach and access to billions of people’s data.

But in many cases, acquisition mergers are beneficial too, especially for small businesses and start-ups. When a small business gets acquired, it either gets full money for the stake or gains access to its parent companies’ vast resources while maintaining authentic leadership. There are many examples of this, like Tata Son’s multi-million stake in health tech start-up CureFit, Flipkart’s acquisition of Myntra and others. This helps the business grow and proves beneficial for both, the mega-corporate and the new company, which can now have financial stability and support to fall back on.

The post Rules to Acquire – Mergers and Acquisitions in India appeared first on Dutch Uncles.

Why Indian E-Commerce Players are Diversifying into Travel Sector?

Shalmoli Sarkar — Wed, 21 Apr 2021 05:35:04 +0000

It was only when the people had begun to overcome their fears about travelling in the pandemic, that seemed a beacon of hope for the troubled travel industry, we are back to square one with an unexpected rise of covid infections in the country. The travel and hospitality sector that remained sluggish last year is facing headwinds again due to the newly imposed lockdown restrictions by the state government across the country. Amidst such times of distress for the travel industry, e-commerce behemoth Flipkart has surprised us with its announcement of 100 percent acquisition of online travel tech company Cleartrip, especially at a time when the second wave of Covid-19 infections is rapidly rising affecting the travel sector. As per a recent study from IBEF (Indian Brand Equity Foundation) the Indian travel and hospitality industry by 2029 is expected to grow by 6.7 percent to become $35 trillion, contributing around 9.2 percent of the total economy.

‘‘

As per a recent study from IBEF (Indian Brand Equity Foundation) the Indian travel and hospitality industry by 2029 is expected to grow by 6.7 percent to become $35 trillion, contributing around 9.2 percent of the total economy.

Cleartrip’s Financial Woes and the acquisition

Cleartrip was founded in 2006 by Stuart Crighton, Hrush Bhatt, Matthew Spacie that emerged to be India’s most preferred online travel agents by offering customers a personalised travel experience through its innovative mobile and desktop solutions.

The online travel industry was already suffering from low margins in the air ticketing space due to a varying customer base, Cleartrip was facing losses where the pandemic has further aggravated its financial woes. In 2020, the company was forced to lay off 500 employees. This acquisition comes as a sign of relief as they needed robust financial support to sustain their business and employees.

The Flipkart-Cleartrip acquisition is pegged at $40 million which will be a mix of cash and equity. In this deal, Flipkart has decided to acquire Cleartrip’s operations where it will operate as a separate entity with all its employees being retained by Flipkart. This acquisition will help Cleartrip to work closely with Flipkart to leverage its technology solutions to simplify travel experiences for the users.

Flipkart’s interest in the online travel industry

Flipkart eyeing the travel industry is not new. Flipkart’s quest for expansion into the online travel industry began in 2018 when it went to a strategic partnership with Make My Trip by making available Make My Trip’s travel services on its platform, the platform operates by the name ‘Flipkart Travel’. In August 2019 by signing a deal with Gurugram based Ixigo, the search bar on the travel page of Flipkart’s website is powered by Ixigo that allows customers to book flight tickets and has integrations for bus and hotel bookings.

With the pandemic coming into the picture, the travel industry is reeling under low to zero sales. Such acquisitions and partnerships appear to give the travel companies a new lease of life. This investment is a win-win situation for Flipkart since it was already planning to foray into the travel vertical. It will help to explore new areas of growth and offer a wide range of local travel offerings such as food trails, workshops, and cycle rides around the cities for the customer.

What is in it for the start-ups?

It will be beneficial for the travel and hospitality sector to undergo strategic partnerships with e-commerce companies to leverage technologies to offer personalised and enhanced customer experiences. The travel industry will now be offering short staycations, local camping and hiking experiences, contactless travel offerings, mobile check-ins to tap into new revenue areas. From the government side, it plans to open doors for the South Asian country tourists for regional tourism, which will help increase ticket bookings.

The post Why Indian E-Commerce Players are Diversifying into Travel Sector? appeared first on Dutch Uncles.

How the Partnership of a Gaming Platform and Healthcare Service Provider Looks Like?

Aakash Sharma — Sat, 20 Mar 2021 10:35:04 +0000

Market sharing strategies are the cornerstone of future development and expansion strategies for businesses. They help companies understand the competitive landscape, reduce costs, improve business performance, and increase sales. Companies that raise brand awareness and targeted customer segments in emerging markets are often open to cross-industry collaboration.

E-Sports and Healthcare Collaboration: More than Welfare

E-Sports Company Mobile Premier League (MPL) and NxtGen Infinite Datacenter recently announced that they would be joining a growing list of companies to cover the cost of vaccination to their employees and co-dependents.

MPL has announced that it will conduct a comprehensive vaccination campaign for all Indian employees and their relatives. The company is already partnering with healthcare providers. It plans to commence the drive as soon as the necessary government protocols and regulations for the general public’s vaccination are announced.

‘‘

Flipkart, the e-commerce giant, will bear the immunization costs of all Flipkart and Myntra employees.

Healthcare Expansion is becoming a Priority

When entering emerging markets, such as India’s fast-growing IT industry, healthcare companies need to consider the following points:

Identify suitable markets and industries with adequate growth potential and potential.

Develop new marketing channels and optimize communication content that resonates with customers in emerging markets.

Create connections and partnerships with national and local companies through mergers and acquisitions to improve service quality.

Determine effective pricing strategies and ensure that plant capacity is used optimally to increase investment and profitability.

Positive Intervention of MPL in the Vaccine Healthcare Process

The immunization activities employed by MPL will not only cover the costs. They will also include the entire process, including pre-vaccination medical advice, vaccination plans, and the doctor’s vaccination follow-up.

The vaccination campaign is the voluntary participation of employees and their families. More than 2,000 people, who are integrated with the program, will benefit from the drive.

Other Big Companies Are Also Joining the List of Covering Employee Vaccination Drives

Several companies, including Flipkart, Infosys, Accenture, Capgemini, Reliance Industries, TVS Motor Company, ReNew Power, Mindtree and Sify Technologies, have also agreed to cover the cost of vaccines for their employees and families.

Flipkart, the e-commerce giant, will bear the immunization costs of all Flipkart and Myntra employees. Flipkart said in a statement to employees that its next phase of the vaccination campaign would cover all employees and existing priority groups.

What’s in it for you?

As IT companies collaborate with the healthcare sector to support the COVID-19 vaccination process, it is clear that cross-sector partnerships are an essential factor in developing new business prospects. Indeed, this approach can also be seen as a go-to-market strategy as it provides active input for product and service design and thus attracts a diverse customer base.

In the healthcare industry, understanding the challenges and risks of technology adoption is imperative. Along with that, having a deep understanding of the healthcare market’s competitive landscape is essential to improve efficiency and drive growth. New companies entering this industry need to consider these key factors.

The post How the Partnership of a Gaming Platform and Healthcare Service Provider Looks Like? appeared first on Dutch Uncles.

How Did Udaan Become One of The Most Innovative Companies in India?

Smruthi Krishnan — Wed, 24 Feb 2021 00:35:05 +0000

The value of an idea lies in the use of it. And all it takes is one person, one idea and the passion and effort to convert that idea into reality. The start-up culture seeped into India a while back in time and today, it has sown its roots deep into the entrepreneurial status quo giving birth to innovations with every passing day.

Young leaders and entrepreneurs today have the opportunity to explore new innovative avenues providing solutions to problems that vex consumers all across the globe. So how did the B2B start-up become Udaan one of the most innovative companies in India?

What is Udaan?

Udaan is a B2B platform that taps on the behind the scene process of a market which essentially involves back-end work in e-commerce websites like Amazon or Flipkart. For instance, merchants selling the product have to go collect the product and deliver it to a Flipkart storehouse. And with increasing orders, the process can become cumbersome and confusing. To ease the process, Udaan came up with its platform to make trading in terms of logistics and sales more convenient and simpler by connecting small and medium retailers across the country. This very basic idea in a disorganized market resulted in Udaan becoming the disruptor in the industry.

How did Udaan come up with the idea?

Outside the scope of the organised sector, several small retailers across the country were unaware of technology, were duped by middlemen, experienced inefficient prices, lacked access to markets, had poor logistics infrastructure and lacked financial transparency. Here enters Udaan as they try to bring together all participants like a wholesaler, distributor, small and big producers within a single platform enabling B2B transaction through an app on the smartphone.

With the proliferation of the internet, e-commerce growth, digital payments, uniform taxation system via GST and advent of technology like artificial intelligence, Udaan had a positive push in becoming the disruptor in the B2B sector. Understanding the inefficiency in the supply chain, Udaan took advantage of these factors and provided a fair platform to connect all participants in the retail industry chain.

The opportunity in front of Udaan is huge. Unlike fast-moving consumer goods companies that focus on a few products, Udaan has a much wider choice in terms of goods available on the platform. A shop owner can get everything from toffee to a 50 kg rice bag and they get to save a larger proportion of their income than before. Sellers also get to reach a larger scale of consumers. According to Udaan, they transact at least 6000 tonnes daily on an average across India, including perishable goods.

What is next for Udaan?

Even without an internet-dependent population, Udaan gained a lot of popularity in Uttar Pradesh, Bihar, Orissa, Chhattisgarh and also in Northeast India. Udaan has already established itself in the market and aims to build a pan-India online network. The Bengaluru-based firm is valued at $7.5 billion as of 2020, making it the fourth most valued start-up in India after Paytm, OYO and Byju’s. By building expertise in every category, they strive to bring a viable solution for producers as well as consumers.

What’s in it for start-ups ?

A major reason behind Udaan’s success is that in the initial period of operations, they provided logistics at subsidized rates of which provided them with ample market exposure. The founding team of experts and people with knowledge as they worked in Flipkart before. As more ex-Flipkart employees joined, Udaan could improve their productivity and tinker with creativity and innovation.

The company provides a unique solution to retailers and wholesalers via a hassle-free online platform. The success of a start-up often depends on the uniqueness of the product or service it provides and how it changes the lives of consumers and producers. In the start-up world, innovations often carve the path for the success of your company.

The post How Did Udaan Become One of The Most Innovative Companies in India? appeared first on Dutch Uncles.