How Meesho DISRUPTED India’s $83 Billion E-Commerce Industry | GrowthX Wireframe

GrowthX
28 Sept 202315:15

Summary

TLDRMeesho, India's unique horizontal e-commerce platform, stands out as profitable amidst a $83 billion industry with 19,000 companies. Founded by Sanjeev Barnwal and Vidit Aatrey, it pivoted from a fashion delivery startup to a social commerce marketplace, empowering housewives and small businesses across tier 2 and 3 cities. Meesho's innovative B2B2C model, trust-building strategies, and logistics partnerships have led to over 3000 crores in revenue, making it a case study in e-commerce profitability and scaling for real GDP impact.

Takeaways

  • 📈 India's e-commerce industry is a massive $83 billion market with over 19,000 companies, with Meesho standing out as a profitable horizontal e-commerce platform.
  • 🌟 Meesho is the first horizontal e-commerce company in India to turn profitable, disrupting the industry with its unique business model.
  • 🛍️ The founders of Meesho, Sanjeev Barnwal and Vidit Aatrey, started with a vision to bring fashion online but pivoted to a social commerce model after initial struggles.
  • 🔄 Meesho's pivot involved creating a supply-side marketplace for resellers, leveraging the trust and influence of word-of-mouth in tier 2 and 3 cities.
  • 📲 Meesho's platform enables homemakers and small businesses to sell products via WhatsApp statuses, handling delivery and payments, thus empowering a new wave of entrepreneurs.
  • 📈 Meesho has grown to over 3000 crores in revenue, largely by targeting the Bharat demographic, which includes first-time internet users and those prioritizing value over speed.
  • 📱 Meesho's success is attributed to its deep understanding of Bharat's shopping insights, focusing on trust, value, and word-of-mouth influence in tier 2 and 3 towns.
  • 💡 Meesho's business model is unique in that it charges zero commission to sellers, instead making money from ads and logistics commissions, creating a win-win for both sellers and the platform.
  • 🚀 Meesho's growth strategy includes increasing market size by attracting first-time internet users and enhancing retention through trust-building and a wide range of products catering to various purchase frequencies.
  • 💰 The platform's financial success is also due to significant reduction in marketing costs, focusing on organic growth and leveraging the social circle influence for customer acquisition.
  • 🌐 Meesho's story is an example of how Indian startups can scale towards real GDP impact, contributing to India's goal of becoming a 10 trillion dollar economy by 2030.

Q & A

  • What is the current value of India's e-commerce industry?

    -India's e-commerce industry is worth 83 billion dollars.

  • How many e-commerce companies are there in India, and what makes Mishu stand out among them?

    -There are more than 19,000 e-commerce companies in India, and Mishu stands out as the only horizontal e-commerce platform that is profitable.

  • What is the significance of Meesho's recent profitability in the e-commerce landscape of India?

    -Meesho's profitability is significant as it marks the first time a horizontal e-commerce company in India has turned profitable.

  • What was the initial business idea of Meesho's founders, and why did it fail?

    -The initial business idea was 'Fashion Near You', which allowed customers to pick clothes from a catalog of local shops for instant delivery. It failed because people preferred variety and a look at multiple options before buying clothes, rather than just fast delivery.

  • How did Meesho pivot from its initial idea to its current successful model?

    -Meesho pivoted by focusing on social commerce, empowering housewives and small businesses in tier 2 and 3 cities to sell items via their WhatsApp statuses, and bringing all of them onto one platform.

  • What is the core insight that Meesho's founders had about Bharat (rural India) shopping behavior?

    -The core insight was that Bharat users, being new to the internet, have a trust deficit and prefer word-of-mouth recommendations. They value the money they spend and are not as concerned with delivery speed as with the value they receive.

  • How did Meesho manage to convince Bharat users to pay and shop on their platform?

    -Meesho managed to convince Bharat users by building trust through a B2B2C model, where resellers they had already built relationships with introduced the platform to their customers, and by offering a wide range of products that catered to the value-conscious shopping behavior of Bharat users.

  • What is Meesho's revenue model, and how does it make money?

    -Meesho makes money primarily from logistics commissions and ads. They charge zero percent commission from sellers, but because of the large volume of orders, they have a monopoly over their third-party delivery partners, allowing them to dictate commissions.

  • How did Meesho increase its brand awareness from 24 to 94 within two years?

    -Meesho increased its brand awareness by leveraging its strong relationship with resellers, maintaining the reseller model as part of their order flow, and effectively marketing to their target audience.

  • What is the significance of Meesho's business model for the growth of India's economy?

    -Meesho's business model is significant because it scales towards real GDP impact, contributing to India's goal of becoming a 10 trillion dollar economy by 2030. It also serves as an example for other Indian startups on how to create large, sustainable businesses.

  • How does Meesho's approach to e-commerce differ from other major players like Flipkart and Amazon?

    -Meesho's approach differs in that it doesn't compete directly with Flipkart and Amazon. Instead, it focuses on increasing the size of the e-commerce market by targeting first-time internet users and Bharat users, who are new to online shopping.

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Etiquetas Relacionadas
E-commerceProfitabilityIndiaMeeshoStartupSocial CommerceSupply ChainCustomer InsightsMarket GrowthLogistics
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