Madhu Joshi’s Post

The Quick Commerce market in India is forecasted to generate a revenue of US$3,349.00m in 2024. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028. The average revenue per user (ARPU) is estimated to be US$127.70. On the other hand, none of the QCom ventures are currently profitable. While one’s losses widened to Rs 1,272 crore in FY23 from Rs 390 crore in the previous year, another’s losses surged to Rs 4,179 crore, compared to a loss of Rs 3,629 crore in FY22. A third is trying to get closer to a breakeven by the first quarter of FY25, after its losses widened to Rs 1,190 crore in FY23 from Rs 1,021 crore crore earlier. (Source: Financial Express) All of this makes the premium brand (Sid's Farm is not a luxury brand, please note) marketer in me slightly nervous. Like me there are several other marketers who would be monitoring this tidal surge of this channel. Has it changed consumer behavior significantly? Certainly true for some categories like snacks and beverages. If you are a manufacturer, you probably best be on the bandwagon. However, the next surge in demand has to be planned better by these large platforms along with brand leaders for the niche brands in their fold, is what I feel. Merely spending ad dollars on traditional digital property on these platforms won't cut it. Specialized virtual stores in virtual stores must come up. The consumer must be allowed to interact with the brands and discover their journeys (of course after safeguarding the interests of the platform). If it is not thought through now, demand for niche brands will be limited to impulse purchases leading to a plateauing out and then decline of sales for such brands. Love them, hate them, they are here to stay for a while. What other questions rise in your mind as brand leaders as basic consumer buying behavior is being remolded by time-bound deliveries? #quickcommerce #saleschannels #premiumbrands #dairyindustry #d2c #d2cmarketing #d2cbrands #foodforthought #questionsworthasking

The Booming Indian Retail Market: A Land of Opportunity The Indian retail sector is a retail powerhouse, contributing a whopping 10% to the GDP and employing millions. It's also a growth champion, expected to reach a staggering $2 trillion by 2032 . Here's a glimpse into this dynamic market: 1) Market on Fire: With a current size of $1.3 trillion, the Indian retail sector is projected to surge by 9% annually. 2) Dominant Segments: Groceries, apparel & footwear, and consumer electronics reign supreme in the market. 3) Evolving Landscape: Organized retail (think supermarkets and malls) is gaining traction, but traditional stores remain a strong force. 4) E-commerce Boom: The Indian e-commerce space is witnessing an explosion, expected to reach a GMV of $350 billion by 2030. Winning Strategies for the Indian Retail Market: This exciting market offers immense potential, but also unique challenges. Here's your toolkit for success: 1) Omnichannel Play: Seamlessly integrate online and offline channels to create a frictionless customer experience. 2) Decoding the Customer: Indian consumers are value-conscious and increasingly tech-savvy. Tailor your offerings, pricing, and marketing accordingly. 3) Value First: Competitive pricing and promotions are key to attracting customers in this value-driven market. 4) Tech Embrace: Leverage data analytics to understand customer preferences and optimize inventory. Explore omnichannel marketing and social commerce to stay ahead. 5) Localization Matters: Adapt your products and branding to resonate with regional preferences and cultural nuances. 6) Building Trust is Key: Especially in e-commerce, focus on customer service and transparent business practices to build lasting trust. 7) Navigating Regulations: The Indian retail sector has complex regulations, especially for foreign investors. Partner with a local expert for smooth sailing. Ready to Dive Deeper? By understanding the market dynamics and implementing the right strategies, you can unlock the exciting opportunities in the Indian retail landscape. Let's discuss how you can win in this dynamic market! #IndiaRetail #RetailGrowth #Ecommerce #Business #India #Retail

The Reason Behind Nasher Miles' Constant Growth in Valuation Nasher Miles, a digital-first luggage brand, witnessed a remarkable boost in its valuation after featuring on Shark Tank India and receiving funding at a whopping $23.8 million in February 2024. The company further raised an additional $4 million from top VC funds in India at a valuation of $30 million in July 2024. Nasher Miles' valuation growth is driven by strategic branding with Rishabh Pant, a Shark Tank boost, a unique variety of designs, and deep market insights from Amazon partnerships, tailoring regional strategies effectively. Surprising and Insightful Data on the Luggage Industry in India (2024): 🔘 The market is expected to grow by 15%, reaching ₹15,000 crore. 🔘 Hard luggage now makes up 55% of the market, up from 33%. 🔘 Revenue for organized makers will jump 15%, driven by travel and tourism. 🔘 ₹700 crore capex planned to double manufacturing capacity and expand retail presence. Key Takeaway from Nasher Miles for D2C Brands: For D2C brands, understanding and timing the use of the below mentioned distribution channels is crucial for reaching and engaging the maximum target audience. 👉 Website Sales Investing in branding and marketing has attracted customers to Nasher Miles' products. Consistent efforts can boost direct online sales, enhance customer retention, and increase margins by avoiding platform commissions. 👉 Quick Commerce & Ecommerce Nasher Miles, already established on ecommerce platforms, plans to expand its quick commerce reach to more cities. Initially limited to FMCG goods, quick commerce now includes various categories. The minimal waiting time in metro cities enhances customer experience, making this expansion a positive move for D2C brands looking to grow nationwide. 👉 Offline Sales Nasher Miles plans to expand its offline presence to 1,000 multi-brand outlets this year  & aim to open 3-5 exclusive brand outlets this year which highlights: - ◻ Offline sales channels are essential for D2C companies with higher price points. ◻ Consumers in Tier 2 and Tier 3 cities in India prefer offline channels. ◻ Strategic timing of offline market entry is crucial for D2C founders. These elements are vital for any D2C brand striving for consistent growth and high valuation in a competitive market. PS: Kudos to Shruti Kedia Daga, Lokesh Daga and Abhishek Daga for cracking the code so well! Namita Thapar, Aman Gupta, Ritesh Agarwal, Anupam Mittal, Vineeta Singh #NasherMiles #SharkTankIndia #StartupIndia #Innovation #SuccessStory #D2C #LuggageIndustry #Valuation

The Indian consumer market is steadily moving upwards towards more premium products. This is a function of increasing incomes, availability of options and sell-side factors like MOVs in ecommerce. This is also visible in the auto segment, where the ₹ 10-20L segment is growing faster than the entry level. There seems to be some consternation around this - is this a sign of K-shaped recovery, or a genuine raising of the consumption baseline? Would love to hear views on this.

Pricing is the least exploited marketing mix. Brands end up deciding their retail prices based on benchmarking their competition without evaluating the Value addition and Brand equity. Developed economies don't have the concept of Maximum Retail Price unlike in India. The same product is priced at significantly different prices in different retail chains. E-Commerce offers an opportunity to test the pricing with various hypotheses and capture maximum value. #eccommerce #datadrivendecisions #datadrivenmarketing #pricingstrategy

Pricing is the least exploited marketing mix. Brands end up deciding their retail prices based on benchmarking their competition without evaluating the Value addition and Brand equity. Developed economies don't have the concept of Maximum Retail Price unlike in India. The same product is priced at significantly different prices in different retail chains. E-Commerce offers an opportunity to test the pricing with various hypotheses and capture maximum value. #ecommercebusiness #pricingstrategies #amazonmarketing #amazonadvertising #amazonfba #vocalforlocalindia

The Indian retail industry has become highly dynamic and fast-paced with the entry of numerous new players. Contributing significantly to the country's economy, the retail sector in India represents over 10% of the GDP and employs around 8% of the workforce, comprising over 35 million individuals. Projections indicate the potential creation of 25 million new jobs in the retail sector by 2030. Furthermore, India is the world's fifth-largest global destination in the retail domain. India stands out as one of the most promising and evolving marketplaces globally, attracting significant interest from multinational corporations eager to tap into the vast consumer base. The race to enter this market is driven by the anticipation of substantial opportunities. Notably, as of 2021, daily e-commerce transactions in India reached 1.2 million, with projections indicating a surge to approximately 500 million online shoppers by 2030, compared to +150 million in 2020. The E-Commerce market is poised to achieve a Gross Merchandise Value (GMV) of US$ 350 billion by 2030. How Can Mystery Shopping Contribute to the Growing Retail Industry? Through the application of mystery shopping, enterprises can pinpoint potential deficiencies in their customer service, refine employee training initiatives, and consequently elevate the overall customer experience. The widely accepted belief is that achieving triumph in the retail sector revolves around delivering an outstanding customer experience. Many well-established retail brands recognize the importance of this principle and proactively invest in mystery shopping as a strategic tool to gain profound insights into customer behaviors and interactions. HS Brands Asia is recognized as the leading authority in India for mystery shopping, compliance measurement solutions, and global-scale brand assurance. Our esteemed reputation is founded on an unyielding dedication to delivering innovative and effective strategies that tackle the diverse challenges businesses face.  #mysteryshopping #retailindustry #retailers #hsbrandsasia #businessgrowth #effectivestrategies #teamperformance #marketinginsights #customerengagement

boAt sees offline sales growth trump online this year. Offline sales growth at boAt Lifestyle surpasses online channels this year, marking a significant shift in consumer preferences. Aman Gupta, co-founder, highlights the surge in offline sales, with a third of total sales expected from in-person shopping, reflecting India's strong affinity for offline retail. boAt's success in the audio devices market, especially in Truly Wireless Earphones and neckbands, is attributed to its affordable pricing and attractive discounts on online platforms like Flipkart and Amazon. Post-pandemic, boAt and other direct-to-consumer brands are investing heavily in omnichannel distribution, expanding their presence in retail stores and exclusive outlets alongside e-commerce platforms. With a focus on localization and expanding physical presence, boAt aims to capture a larger market share, currently boasting 18% in wearables and a staggering 42% in audio devices. Aman Gupta emphasizes the importance of innovation in distribution, marketing, and product development for building successful electronics brands in India. Despite initial challenges, boAt's journey reflects the transformative power of digital platforms and social media in brand building and consumer outreach in the electronics sector. #boAtLifestyle #OfflineSales #Innovation #ConsumerPreferences # Experienced in Consumer Durables & FMCG with 17 years' expertise. Skilled in field force management, leadership, client services, and strategy planning. Seeking new opportunities.

There’s enough and more that one comes across in publications on the consumer goods space, in India and across the globe on a regular basis. Personally, reading the developing stories allows me to learn and get insights on the trends unfolding in my field of work. Initiating an experiment of compiling the interesting stories that I may have read in the past week, and which may be helpful to anyone wanting to understand the consumer space a little bit better. Some of them in this edition include - - How Regional players in the Indian consumer goods space are growing in aspiration and presence, leading to their no longer being ‘Davids’ but increasingly becoming the ‘Goliath’ in their areas. Forbes India Kirana Club - How Licious created an online brand in the unorganised and completely offline market, and their recent move into the offline space. Business Today - How falling grocery prices across the Atlantic are leading to dropping ‘greedflation’ & ‘shrinkflation’. moneycontrol.com Financial Times - What grocery stores can do (US context) with the online channel, which is growing and is popular with a segment of their customers, but is hugely unprofitable. Harvard Business Review Dive in at your leisure - and yes, it will be great to have your feedback on this experiment. Happy reading :) #allthingsconsumer

Hey everyone! 🌟How many people do you think engage in online shopping in India compared to the USA and China? 🤔💻 Undoubtedly, India has seen massive e-commerce/e-retail growth over the last decade! 🚀 But where do we stand among these economic giants? 🌐📊 According to a recent report by Bain & Company , China leads with over 35% of retail spending happening online, the USA follows at nearly 24%, whereas in India, it's only 5%-6% of retail spending! 😲📉 So, What does this mean? It signifies that India remains a significantly underpenetrated market in the e-retail and e-commerce segments. At least, if we anticipate reaching a 15%-16% penetration in the e-retail space, there's a substantial untapped opportunity. 💡💼 #VentureCapitalists in this sector will likely continue investing for the next decade, recognising this potential. 🚀💰 The e-retail industry is consistently growing at an impressive 17%-20% annually! 📈✨ This growth shows that we've only just begun in India! 🌱🌟 To sum up, the e-commerce journey of the past decade is just the tip of the iceberg, especially with the increasing purchasing power of Indians! 🛒🚀 Follow me (Gouri Sankar Dash) for more such insightful posts.