How To Build A Big Brand? By Sandeep Maheshwari | Hindi

Summary

The transcript is a detailed discussion about a business idea involving women's clothing resale, facing challenges in scaling up sales beyond a certain level. The conversation covers various aspects such as customer interests, profit margins, the importance of supply chain management, and the preference for COD (Cash on Delivery) over prepaid methods. It also touches on the strategy of reducing margins to increase sales, the impact of seasonal changes on preferences, and the importance of trust in customer relationships, including return and replacement policies. The speaker emphasizes the need for a unique business model to ensure long-term profitability and sustainable growth.

Takeaways

• 😀 The speaker is discussing a business idea related to reselling women's clothing and the challenges faced in growing the business beyond a certain level.
• 📈 The business has reached a plateau and is not growing despite having good margins and a good seller on board due to issues with COD (Cash on Delivery) and trust from the customers.
• 💸 The initial profit margins were high, but the business is not making a profit currently, which is a concern as the speaker emphasizes the importance of having a profit mindset from the start.
• 👚 The focus is on women's clothing, which has a higher interest and good margins, but the business model needs to be revisited to address the issues with COD and customer trust.
• 🛍️ The business relies heavily on advertising and influencers for customer acquisition, indicating the importance of marketing in driving sales.
• 📦 There's a mention of dropshipping, but it's unclear if the business is using this model, as there's a discussion about having a seller who provides COD, which is typical in dropshipping.
• 🔍 The speaker suggests conducting research to find sellers who can offer COD, which is a significant aspect of the business model that needs to be resolved.
• 📈 The business has experimented with different margins and product types, finding that casual wear sells well, especially during certain seasons like Holi, indicating the importance of seasonality in product demand.
• 💡 The speaker highlights the need for a clear business model that focuses on repeat business and word of mouth for long-term sustainability.
• 🚀 The discussion points out that the business needs to identify its 'hero product' that has the best conversion rate, lowest cost, and highest margin to focus marketing efforts effectively.
• 🌐 There's a need for a website and online presence to build trust and provide a platform for selling directly to customers, which could be a key growth strategy for the business.

Q & A

What is the main business idea discussed in the script?

The main business idea discussed in the script is reselling women's clothing, focusing on leveraging social media platforms like Instagram to drive sales and interest.

What challenges are faced in scaling the business?

The challenges in scaling the business include difficulty in growing beyond a certain sales level, issues with suppliers demanding cash on delivery, and customers' trust issues due to return and replacement policies.

Why is the margin important in the business model discussed?

The margin is important because it ensures profitability and provides room for negotiation and pricing strategies that can attract customers without compromising the business's financial health.

How does the script mention addressing the issue of customer trust?

The script suggests addressing customer trust issues by finding sellers who are CD (Cash on Delivery) available, ensuring that customers feel secure in their purchases and are more likely to place orders.

What is the significance of having a good supply chain in this business?

A good supply chain is crucial as it ensures the availability of products, the ability to fulfill orders, and maintain customer satisfaction, which is vital for the growth and sustainability of the business.

Why is it suggested to reduce margins for certain types of clothing?

Reducing margins for certain types of clothing can make the products more affordable and attractive to customers, potentially increasing sales volume and overall revenue.

What marketing strategy is discussed in the script for promoting the clothing line?

The marketing strategy discussed includes leveraging Instagram stories and targeting posts based on audience engagement, such as likes, to drive sales and create a buzz around the products.

How does the script address the issue of returns and replacements in the business?

The script suggests that suppliers should provide clear return and replacement policies to build trust with customers and encourage them to make purchases without hesitation.

What is the role of influencers in the business model described?

Influencers play a role in promoting the products and building brand awareness. They can help in reaching a wider audience and driving sales through their social media presence.

What is the importance of understanding customer behavior in the business?

Understanding customer behavior is important to tailor marketing strategies, product offerings, and pricing models that resonate with the target audience and lead to increased sales and customer loyalty.

How does the script suggest ensuring the sustainability and growth of the business?

The script suggests focusing on profitability from the start, identifying a hero product with good conversion rates and margins, and building a strong brand identity to ensure long-term sustainability and growth.