Yes, Its Billion Dollar Online Babies in India who are wetting their diapers since last few years. I am sure their daddies want to bring them up & so they are bearing the cost of diapers regularly. My good read at www.thinkwithgoogle.com gives me insights & answers to my concerns over online vs offline.
The Wet Diapers Insight:
- To stay ahead in online retail race, Flipkart lost Rs 14 crore per day in FY16
- Losses of Flipkart, Amazon & Snapdeal would have allowed ISRO to go to Mars 24 times
“There are 30 million people using Flipkart and Amazon today on a regular basis and let us say they each spend Rs 100. Now, for these companies to double their revenue they need to get the next 30 million families on board. However, income distribution in India is such that the income falls very steeply after the first 30 million families. So, the next cohort of 30 million families will not be able to spend Rs 100. So from a spending perspective, estimates suggest you might need 80-100 million people to get the same revenue as they will spend considerably lesser. If your unit economics did not work for the first 30 million it is only going to get worse for the next 80 million. So, customer acquisition is only going to grow your losses,” Read more at ET
I always say Online & Offline are two sides of same coin which facilitates a trade-off. New research from Google conducted with Ipsos Media CT and Sterling Brands suggests that
“The relationship between digital and in-store shopping is far more nuanced and interconnected than that.”
The retail industry is undergoing a dramatic shift: In-store foot traffic is down, online research is up and smartphones are becoming increasingly important to the consumer’s in-store shopping journey. That’s the key to unlock the huge potential for offline retailers. Find a Secret for Offline Retailers to Increase Store Footfall.
This is the time to bring innovation, reforms & collaboration into retail ecosystem. Lot of offline niche apps are trying to give cashback to retailers to stick to their platforms & that’s an area to watch that offline digital players don’t make same mistake by Cannibalising Offline Sales .
We appreciate big reforms by Indian Government; The goods and services tax (GST) is expected to kick in by July 1 this year. Snapdeal introduced its GST Guru program not so long ago and it is a hit with online sellers having 10,000 sellers in only a few weeks after its launch.
Here’s my Open Letter to Flipkart’s & Amazon’s of the World to ensure that we build a right ecosystem for benefit of all. We are a country of 20 Mn retailers & that’s only a portion of cake.
This article is intended to Think with Freedom , empower people and businesses to prosper & win with value creation in system.
Yogesh Huja, Founder & CEO of Freedom.Desi