What do you think of buying now and paying later? Sounds so fascinating! That’s right, nothing can be compared with the happiness of a shopaholic that comes with this idea of buying now and paying later. Well, this ain’t just an idea anymore!
Buy now, pay later (BNPL) has been a great success ever since its development. As the name implies, BNPL provides the customers with the offer of buying their favorite product now and paying the cost anytime later.
The major reason behind the success of the Buy now, pay later model is its ability to attract a large audience and enhance E-commerce sales. That’s why more and more companies across the world are adopting this remarkable online retail business model.
However, the Buy now, pay later model is kinda similar to credit card payments! There have been many questions raised on its similarities. But the offerings come in the BNPL model, and cannot be found in the credit card payments. In fact, it has raised its average order value by 33% in the retail industry.
In this article, you will be getting a brief description of how this amazing business model works and Why ecommerce companies opting for how it is increasing E-commerce sales. Let’s get started!
Similar to its name, the Buy Now, Pay Later Business Model is pretty simple. The customer purchases any product and instead of paying the whole cost of the product at once, they pay it in the form of installments over a certain period. So, when you don’t have the complete amount of money, you can still buy it and pay the money afterward.
Customers can choose the finance provided by the stores themselves or a third party like PayPal and Klarna Credit. It doesn’t matter which payment method you choose, the pay later service will work tremendously for you.
Through this method, the retailer gets enhanced sales and shifts the product from inventory pretty quickly.
The Buy Now, Pay Later business model is initiating a new line of offerings for the customers to buy any product in installment, just as they used to purchase through the layaway business concept.
The Target Audience of Buy Now, Pay Later
Among the immense number of consumers in the retail industry, Buy Now, Pay Later is used by almost everyone! According to statistics,
33% consumers are in the age group 18-25
40% consumers are in the age group 26-34
62% consumers are in the age group 35-50
16% consumers are in the age group 51-64
By looking at these figures mostly grown-ups and millennials are the regular users of the Buy Now, Pay Later business model. And now, many bigger e-commerce companies have also adapted this business model strategy, and customers’ sales are increasing tremendously.
How does the Buy Now, Pay Later (BPNL) business model work?
Usually, in credit card payments, the consumer contacts the corresponding bank or credit card company. But, In the Buy Now, Pay Later business model, the consumers are directly connected with the merchants.
This payment mechanism was initiated by companies such as Afterpay, Klarna, and Affirm around 5-15 years ago. These companies established an entirely different business model for merchants to increase their customers worldwide.
They used the consumer’s debit card as the payment means for the transaction. This has extensively grown ever since the pandemic happened! During the financial crisis, people could still purchase their essentials and pay the money in installments.
On a general basis Buy Now, Pay Later companies to charge 5-6% of commission from the merchants. The purchasing behavior when compared with the conventional credit card payment methods, demographics are entirely different.
The Buy Now, Pay Later companies earns from the consumers by charging interest on the âloanâ amount. Many companies also earn from late fees. Late fees are penal fees charged to users in case of an inability to repay.
Why are E-commerce companies using Buy Now, Pay Later (BPNL) model?
When we look at previous statistics, the Buy now, pay later model is mostly adopted in the retail sector. But with time, this is evolving on a great scale. Many companies, from all service sectors across the world, are adopting this amazing opportunity to attract more customers.
When a company offers installment payment on various products, customers’ purchasing also increases. With this buy now, pay later services, e-commerce companies will offer many more additional services in order to improve their customer’s experiences. This will result in the involvement of higher consumer costs.
As other industries adopted this tremendous business model, healthcare is the last on the list. Even Walnut has also adopted this service in its healthcare sector.
Walnut Website
Furthermore, Buy now, pay later also reduces the financial stress from the company, and customer engagement heightens.
As the E-commerce platforms are growing with an extensive speed. Adding buy now, pay later service into it would take the graph, exponentially.
We have noticed great growth of the buy now, pay later business model. No doubt, it has taken the retail industry to the next level of sales and customer engagement. The buy now, pay later model is more budget-conscious and careful with consumer protection.
This unique business model is likely to grow more vigorously in the upcoming years. With that in mind, we can state that the buy now, pay later model has brought various advantages for industries, especially the retail sector.
FAQ
What are some of the Buy Now, Pay Later companies?
Affirm, Afterpay and Klarna are some of the Buy Now, Pay Later companies.
What is Buy Now, Pay Later business model?
The customer purchases any product and instead of paying the whole cost of the product at once, they pay it in the form of installments over a certain period.
How do Buy Now, Pay Later companies make money?
The Buy Now, Pay Later companies make money by charging merchants a 2% to 3% merchant fee.
The Electrical Industry is rapidly growing with modern technologies. More new user-friendly appliances and the wiring in a building or the miniature circuit breakers (MCB’s) are far better and safer than the earlier ones. In today’s world, the rapid growth of industries has increased the demand for electrical goods and services. These are getting fulfilled by mega private and public sector companies.
Havells India has emerged as the leading electrical goods manufacturer and supplier in India amid all this competition among different electrical giants to become the leader. It also provides high-quality products in its category.
Havells India Limited is a Noida-based electronic goods manufacturing company also called FMEG or Fast moving Electrical goods company. It came into existence in 1958. The founder of Havells was Qimat Rai Gupta. The name Havells comes from its first-ever owner Haveli Ram. At that time, Havells was restricted to the walls of Delhi as most manufacturing of the products took place in Delhi that time. Havells is also among one of the leading companies in India to manufacture and produce quality electrical goods, circuits, devices, and appliances, etc. Havells owns popular brands such as Lloyd, Standard, Crabtree, and REO.
Areas of Operation
Havells is a global brand with its footprints in nearly 50 countries on different continents. A few of the names include Dubai, UK, Sri Lanka, Nigeria, Kenya, Myanmar, Iraq, Bangladesh, Nepal, etc. In India, it has 13 state-of-the-art manufacturing facilities and supplies electrical goods to all parts of the country.
Key Products and Services
Havells manufactures a wide variety of electrical goods and equipment. From wires to large size motors, everything is available in Havells Electric empire.
Wires and circuits: Fireproof copper wires, different types of industrial cables, miniature circuit breakers, Industrial circuit protection equipment, Switchboards are some of the electrical goods under this category.
Appliances: Ceiling fans, exhaust fans, table fans, pedestal fans, and other electronics, such as air purifiers, motors, juicers, mixer grinders, and other small domestic electronics.
Lighting: Havells manufacture LED bulbs, professional lights, and bulbs, night lamps, etc.
Solar equipment: Havells India also manufactures solar inverters and solar power optimizers for sustainable energy solutions.
The Target Audience of Havells India
The key customers of Havells India are owners of small-scale industries, large-scale industries, and medium-scale industries. They require electricity for running their assembly lines or machinery. The people are willing to purchase electrical appliances for household purposes or as gifts during festivals and those builders or contractors. They are associated with mega construction projects and need bulk quantities of electrical cables and appliances. Also, the solar division of Havells deals with customers willing to install solar electronics and go green.
The Business Model of Havells India
Havells Logo
Havells always tries to integrate and bring its customers together by giving them a wide variety of choices according to their interests. Havells opened nearly 500 Havells Galaxy brand showrooms across India where customers can get a wide variety of equipment and electrical goods at justified prices. Also, Havells had created different sets or groups of electrical goods according to the sections of the society and their financial sections. The middle-class range focuses more on attracting more Customers to this financial group. It provides the customers with a wide variety of options and choices. That’s what a customer wants, ‘options’.
What’s unique about Havells India Business Model
The strategic approach of Havells towards its customers was the key to their success in the Indian market, where they expanded their company globally. Also, they acquired some brands that gave them extra support in building a customer base. It even assisted them in expanding even more such as acquiring ‘Crabtree,’ a UK-based switchgear brand.
Havells started trading for its stocks to go public as a shortage of funds was a problem for them at that time. Later on, they acquired the famous lighting brand Sylvania. But, it created some troubles for the company as they suddenly became global from local in terms of marketplace and management.
By providing more and more options to customers in recent years after studying the needs of the middle-class section of India, Havells sales have boosted to the next level. It’s still going on.
The brand’s advertisement and branding also proved fruitful in increasing customer interest. Commercial ads of the company have pushed it to some extent in terms of digital marketing.
Its slogans were eye-catching, attractive, and customer-friendly approaches such as ‘Bijli bachaye, Roshni failure, ‘ better light, better life, ‘ Wires that don’t catch fire’ etc.
Currently, Havells is a leading brand in Electrical goods and services in the country. It’s also running its business globally. The population of India is the second-largest in the world. That’s a huge profit point for Havells. Havells Managed to win the hearts of Indians as an electric goods company. Many Indians trust the brand for its quality.
The key sources of income for Havells come from sales of household appliances and industrial electrical goods. The Havells galaxy provides a wide variety of products for commercial businesses as well as for home requirements. From here, it generates a lot of profiles.
In 2021, Havells reported high profits in its quarterly reports of companies performance. Due to the growing demands in the electrical consumer industry, the brand is witnessing a surge in profits under the ‘Make in India‘ program. In this, people are selecting more Indian goods over the Chinese ones.
Conclusion
From its starting till today, Havells always grew stronger despite all challenges. Today it produces a high percentage of electrical goods for the country’s development and for fulfilling household needs. In upcoming times, if the company introduces more renewable sources of electricity such as more solar solutions, it might see a huge surge in profits as the era of sustainable development is at its peak.
From small factories in and around Delhi, Â manufacturing in giant factories and that too with high precision modern technology shows the emergence of Havells India in the Asian region. The company’s business in Africa and other continents is also going great. It hopes to continue so that this Indian brand makes marvels overseas in the field of the electrical goods industry.
FAQs
Is Havells an Indian brand?
Havells India Limited is an Indian Consumer Electronic Products & Electrical Appliances company based in Noida.
Who is the CEO of Havells?
Anil Rai Gupta is the CEO of Havells.
Who started Havells company?
Qimat Rai Gupta was the Indian entrepreneur who founded Havells in 1958.
Is Lloyd Havells a brand?
Yes Lloyd is owned by Havells. Havells owns some of the most prestigious brands like:
Havells
Lloyd
Crabtree
Standard
Promptec
What is the number of employees in Havells India?
There are around 5,781 employees in Havells India.
India is a huge market for almost all types of products and services. The private players play a pivotal role in fulfilling the needs of this gigantic population. The business market of these private companies is growing huge day by day with the increase in demand for goods and services. Earlier, if a person wanted to buy a packet of edible oil, he might have 3-4 varieties. But now, it has increased to 30-40. The actual competition comes to the limelight, and only the superior brands providing the best quality survive here.
The Adani Group of companies is one of the largest private companies in India. It has a global presence in almost 50 countries. The Chairman of the Adani group is Gautam Adani. He is even one of the richest people in India. Adani group’s widespread business includes airport and seaport management, coal mining, power generation, Renewable energy production, edible oil production, food processing, etc. The company has its headquarters in Ahmedabad in the state of Gujarat in India.
Adani Group of companies came into existence in 1988 by Gautam Adani. He is also the Chairman of the group. Adani operates across India and overseas in several businesses such as Renewable energy production, maintaining port facilities, oil and gas production, mining, and food processing. The group is a private conglomerate with nearly 17,000+ employees in the year 2021. In April 2021, the company crossed 100 billion dollars in market capitalization.
The Adani Group operates coal mines in India. In addition to that, it also owns seaports such as Mundra port, Krishnapatnam port, Hazira port, etc. The group owns several solar farms in the country. These farms produce enormous amounts of electricity. Adani took up the responsibility of the operation of several airports in India- Jaipur, Guwahati, etc. The Adani group operates several Special economic zones in the country near to its seaports. The group is also involved in defence equipment manufacturing with its facility in Hyderabad. Apart from India, Australia is also one of the primary locations for the business operations of the Adani group. There are several other facilities in different countries.
Edible oil and food processing: Adani Wilmar produces the famous edible oil Fortune. It is the first choice of millions of Indians. Also, other food products under the brand name Adani Wilmar are Soyabean, rice, pulses, etc.
Adani Oil and Gas: Adani works jointly with Indian Oil works under the name of IndianOil-Adani Gas Pvt. Ltd. Also, Adani owns the Adani Total Gas system that connects cities as networks for the distribution of CNG and PNG.
Renewable Resources: Adani group Operates Adani Green Energy Ltd that operates solar parks and Wind farms in India. It provides pollution-free green energy-generated electricity to thousands of households.
Adani ports and logistics: Adani owns India’s largest private seaport Mundra Port that operates the world’s largest coal terminal. Adani provides logistics facilities to millions of tonnes of goods through sea routes as well as Land routes. Adani SEZ extends economic support to the country.
Mining: Adani operates Coal and iron ore mines. These mines produce valuable minerals that find utilization for power generation in thermal power plants and Steel production in Steel plants.
The primary consumers and customers of Adani Group is the Middle-class section of the society. They include the customers who purchase food products of Adani Group such as edible oils and Soya chunks. But, the Adani group works with large companies and the government. The deals in mining, oils and gases, Renewable energy, defence equipment are possible with the government and private entities. Then the logistics and ground departments of the group supply services to the local public.
Business Model of Adani Group
Adani Group Logo
Adani Group is an Indian multinational conglomerate. Adani Group has a diverse number of subsidiaries. Each of them has a different kind of Business model. But, the common business model for such a giant company is always aligning with the government’s interests. Adani Group has made some remarkable developments during the reign of many governments. It also follows acquisitions in the case of mining.
Apart from this, the rise in demand for renewable energy is fulfilled primarily by Adani in India as Adani owns chief solar properties in the Nation. From major industries to minor industries, the Adani group always tries to invest in a variety of Businesses to strengthen their business empire.
What’s unique about Adani Group’s Business Model
The uniqueness of the business model of Adani lies in the following secrets:
1. The Adani Group witnessed some developments in the stock markets as they became the third country to cross $100 billion in market capitalization.
2. The uniqueness in Adani’s business model includes a wide variety of businesses that bring profits from different sources as Adani invests in diversified businesses. It balances the profits and losses.
3. The Adani Group invests in the most profitable businesses such as renewable energy, oils, and gases. It is because these are in growing demand. Targeting the requisite fields of Work always brings profit at one point or the other.
4. Adani group invests not only in National projects but also in International projects. One such project includes a $7 billion coal mining project in Australia that has gone through high degrees of controversy. However, it turned out to be a highly profitable project for the group. Adani also owns ports in Australia that transports coal in Queensland.
How does Adani Group make money?
Adani group has a lot to provide to its customers, from food products to the cooking gas used for cooking them. The company’s chief source of revenue mainly comes from its six key companies. Adani imports coal and edible oils from foreign soils. This trade provides profit to the company as they sell them at bit profitable prices. Also, it owns a vast amount of cargo intake through its ports from which it gets money from shipping companies.
The Adani group gets orders from the government that leads to profits. It does this by working with the government in the defence and aerospace sector. International investments provide many parts of the revenue as it’s a global conglomerate. So, the overseas profit also matters a lot. Other sources of income mainly come from other diversified businesses in which the company has heavily invested.
Conclusion
After the Tatas and the Ambanis, the next name always comes up as Adani Group while counting for the most famous people in diversified businesses. Investing in different sectors always reduces the chances of heavy losses. It is because the sources of profits when maintained properly are always more than the one which brings losses. Adani group will expand further in upcoming years and the business empire of Adani will expand more and more with this pace of success.
FAQs
Who is the owner of Adani Group?
Gautam Adani is the owner of Adani Group.
What does Adani group do?
Adani Group operates in various sectors like:
Edible oil and food processing
Oil and Gas
Renewable Resources
Ports and logistics
Mining
What is the number of employees in Adani Group?
There are around 17,000 employees working for Adani Group.
In the era when cryptocurrencies have taken up the centerstage of the new dawn of the digital economy, there are a plethora of options available to you to invest. However, it is extremely important to be aware of the cryptocurrency that you are planning to invest in and its future implications. It is mainly because of the fact that the world of investment is full of uncertainties and with great rewards come greater risks. In this article, a cryptocurrency named Stellar Lumens is scrutinized to come to a conclusion whether it is a good investment or not.
Stellar is an open-source network for currencies and payment where it is possible to create, send and trade digital representations of all forms of moneyâdollars, pesos, Bitcoin and what not. It was incubated in 2014 and was launched in 2015.
It aims to bring together all of the world’s financial systems under a single network. They have designed it in a way that is suitable for the users in developing countries as well. It had added to Stellarâs popularity significantly.
The decentralised network of Stellar is spread across multiple servers like any other platforms that makes use of blockchain technology. It has no single owner, but is owned by the public.
What is unique about Stellar?
It uses blockchain technology to complete its transaction. Being a decentralized network, it handles millions of transactions every day. What makes Stellar unique is its compatibility with the requirements of a common man.
Unlike traditional blockchain based systems like Ethereum and Bitcoin, Stellar is faster, cheaper and energy efficient. Its end user experience is more like that of cash.
Lumens are the native digital currency of Stellar. It requires only a small amount of Lumens to initiate the account and transactions. After that, the platform does not give preference to any one currency.
Being a decentralized network any kind of currency can be used through Stellar. Its primary intention is to make peopleâs savings more useful and accessible. It has a built in system which converts money sent through Stellar into desired currency.
At first the currency is automatically converted to Lumen and then if the recipient is an India, it is converted to India rupee.
How does Stellar work?
To cover its basic intention to track ownership, it uses ledger where a network of independent computers cross check each otherâs works. Its lack of central authority makes it impossible to tweak the numbers and transactions in Stellar.
Its efficient algorithm called Stellar Consensus Protocol (SCP) overlooks the process and ensures that everything is in sync. The Stellar ledgers store two important pieces of data for each account. First, how much they own and secondly, what do they plan with this money.
It is the Nodes that check the ledger and run the core Stellar software. The agreement between the nodes when you initiate a transaction completes it. Hence, Stellar networks are verified by multiple nodes. Their well-documented functions help you proceed with your transactions in ways that you prefer. You are even capable of issuing assets.
Why is Stellar a good Investment?
Growth of Stellar has been phenomenal in 2021. It has returned 424.4 percentage year to date. Analysts who have studied the growth of stellar for a long period of time do not see it slowing down in the near future.
Stellar Growth Chart
Its current affordable prices and potential to improve makes it ideal as an investment destination. Another reason why Stellar is a good choice for investing is because of its unique upgrades that augments the flexibility of Stellar core and customer based applications.
Furthermore if Stellar encourages further decentralized applications in its platform it will result in massive increase in the value of Stellar which will make it further profitable for the people who invested in it.
Another reason why it is preferred amongst prospective investors is because of its simple and low-cost transactions and through it, the accessibility to the global economy.
Before you move on to invest large amounts of money in Stellar, remember that there are lots of risks that are associated with such investments. While it provides great incentive and returns also expect that there will be potential risks although lumens has been faring well till date.
Be sure to analyze your financial stability before making any investment moves. Stay up-to-date with the information regarding Stellar by also having sound information about current market and trends.
Where to Buy Stellar Lumens?
Apart from purchasing Lumens directly from the Stellar platform the following are a few places from where you can purchase Lumens
Bitfinex
Binance
GMO Coin
NovaDAX
Coincheck
Bittrex
Upbit
Huobi
Coinbase
Kraken
Godex
FAQ
Can I buy stellar on Coinbase?
Yes, you can buy, sell, convert, send, receive, or store XLM on Coinbase.
Is Stellar energy efficient?
Yes, Stellar is more energy efficient than Bitcoin based systems.
Who is the founder of Stellar?
Jed McCaleb is an American programmer and entrepreneur who founded Stellar in 2014.
We are well-familiar with the popularity of Asian Paints in India. The company was established in 1942 as a paint manufacturing firm. Asian Paints has been the leading paint company for over 70 years, since its establishment.
Asian Paints is tremendous with its paint quality and apart from that, the company is quite famous and impressive with its colorful advertisements. With this, Asian Paints functions on the incredible marketing strategies that cover up its all grounds of services including place, promotions, price, and product. The marketing strategies of Asian Paints are very impressive as it has kept the company on top, always.
Asian Paints is headquartered in Mumbai, India, and is known as the third-largest paint company across Asia. Its services operate in more than 19 countries under various subsidiaries. Asian Paints has its subsidiaries established in numerous countries, which are titled APCO, PPG Asian Paints, Sleek Kitchens, Kadisco, Berger, Taubmans, Scib Paints, and many more.
The company has optimized its marketing strategies in a very competitive way and presented the company with a very strong market position. Asian Paints manufactures its paints in a very distinct manner of categories in various forms such as decoration, industrial segments, and automotive. In this article, we’ll be discussing the marketing strategies of Asian Paints. Let’s get started!
Asian Paints majorly focuses on manufacturing products that are decorative and of great quality. Its key product is industrial paint. Alongside, the company produces paint solutions and services for homes.
Asian Paints manufactures products for not only one category of audience, in fact, but the company sells its products to various segments of customers through targeting strategies. We have described some of its specialized products and their target audience right below:
Apcolite, tractor distemper, and tractor emulsion target the customers from the economy segment.
Asian Paints Royale targets its customers from the premium segment.
Moreover, the company also offers undercoats, coatings, putties, and primers along with its other services. Therefore, Asian Paints provides a complete package of painting solutions along with appliances and tools.
Place Strategy of Asian Paints
Asian Paints is quite famous on the global level also. The company operates in many countries across the globe. Asian Paints optimizes its place strategy through 5 regions network including the Caribbean region, the South Pacific region, the Middle East region, South East Asia, and South Asia. Asian Paints holds a wide distribution network with a strong market position.
Asian Paints provides an open-door and flexible policy for dealers for getting into the retail market and work on marketing and distribution nationally. The company is India’s largest paint company whose manufacturing factories are established in many countries.
Asian Paints has optimized its features and services entirely for market promotion. The company uses great innovative techniques and taglines to promote its products to a specific segment of customers. It uses taglines to catch the eyes and ears of its target audience and they would reach out immediately.
Through this strategy, Asian Paints receives great customer support and sales. Along with this, the company advertises its products through various channels to reach out to customers.
Since its establishment, the company’s advertising part has become more substantial and majorly focused on brand awareness. Asian Paints has signed with various prominent celebrities in India such as Deepika Padukone, Ranbir Kapoor, and Rahul Dravid as its brand ambassador.
Asian Paints organizes various campaigns and social media contests to promote its products and attract more audiences.
The company’s website provides the customers with the features of uploading their pictures with their walls painted by Asian Paints products.
However, its products are manufactured for different segments of the audience so that there wouldn’t be an issue of price. Such as its premium products which are specialized for high-income people and medium and economic segment of customers, the company offers different products at the best pricing.
Besides, its price segments also vary based on the raw material used in the product and its features. Asian Paints offers paint’s discount offers for its customers at high pricing. The company’s painting consultancy services are pretty much higher than the painting service providers.
Asian Paints marketing strategy isn’t based only on its products, price, or promotion. The company optimizes its marketing strategy through segmentation, positioning, competition z targeting, and analysis.
Asian Paints is the leading paint company across India and is known as the third-largest across Asia. The company made an annual revenue of around INR US$2.9 billion in 2020. Its paint products are categorized into various segments such as innovative, automotive, decorative, and industrial.
Alongside, Asian Paints provides painting equipment also including wood primers, strainers, wall primers, and putty. Asian Paints holds a very strong position in the market and with its current marketing strategies, the company is set to achieve more heights of success.
FAQ
Who is the founder of Asian Paints?
Champaklal Choksey, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil founded Asian Paints in 1942.
Is Asian Paints and Indian company?
Yes, Asian Paints is an Indian company founded in 1942 by Champaklal Choksey, Chimanlal Choksi, Suryakant Dani, and Arvind Vakil.
What is the revenue of Asian Paints?
The revenue of Asian Paints is US$2.9 billion as of 2020.
What if your personal search on the internet gets leaked? These days, we might not know what could happen next, with one touch of your fingerprints leads to a terrible episode. Hackers are well known about this fact in misleading the given information with just one click on the history of our personal search engine.
For instance, if you’re ferreting, how do you deposit money in the bank? On google, then the next time, you may get an email regarding the question you have searched on Google. Later, the mail asks you to do the Call to Action in the mail, then without any second thoughts, you would go and click for the mail. And next your account in which you are planning to deposit a hefty amount gets hacked.
Thatâs wherein an internet privacy company- DuckDuckGo on 25th September 2008 with an intention to safeguards your personal information under your control and conditions without any tradeoffs.
DuckDuckGo has developed as an idea for a better search engine that risks its terms to protect your personal information on the internet. In the world, Google tracks down our private stuff, where DuckDuckGo comes in with an audacious move to challenge the hacker by protecting our search history with the help of its own private search engine. Moreover, DuckDuckGo plays as an anonymous website in order to impede userâs private search into the public.
DuckDuckGo commenced its operation in 2008, where its headquarters are located in Paoli, Pennsylvania, United States. The company was founded by Gabriel Weinberg and renders services worldwide.
Main Product and Services of DuckDuckGo
DuckDuckGo has a search engine that bestows utmost service to protect your personal information to an indefinite extent. DuckDuckGo guards the searcherâs privacy without any trade-off and eliminates the filter bubble of personalized search results.
Recently; DuckDuckGo introduced Email Protection, as email plays a vital role in opening a Google account and ultimately shows what stuff you have looked on Google, comes as a suggestion in your email account. This could be done with the help of DuckDuckGo Email protection by hiding your address.
DuckDuckGo plays the protective card in many searchers, without getting into the wrong hands. Their only ultimate aim is to protect the personal information, which has been ferreted by the users generally on the internet. So, DuckDuckGo proposes to earn the trust and confidence of internet users.
Business Model of DuckDuckGo
DuckDuckGo doesn’t store any personal information about peopleâs search as well as take utmost care in protecting peopleâs search. The company uses its search engine to create buzz, where your search history relies upon DuckDuckGo.
Besides, DuckDuckGo established an alternative search engine and also generates additional apps to protect your private stuff from Google, Facebook, WhatsApp and other possible tracker apps.
You may wonder, how does DuckDuckGo earn revenue out of this? The answer is Advertisement and anonymous affiliate.
DuckDuckGo sells advertisements directly based on the userâs interest and spurns the method of hyper-targeted advertising systems of Google and Facebook.
On the other hand, DuckDuckGo earns revenue in terms of having an affiliate relationship with other unbeknownst companies to spike their business technology requirements.
DuckDuckGo being a search engine earns its revenue from the number of searches they get on their platform. But the unique feature of its business model mainly focuses on advertising and commission or affiliate programs.
Advertising
DuckDuckGo earns money from advertisements without jeopardizing the privacy of its users by sending advertisements from the keywords typed on the search bar. They do not show targeted advertisements based on search history, web history or interests of a person. The user is also given an option to disable the advertisement showing on the page.
Affiliate Marketing
DuckDuckGo uses affiliate marketing to earn more profits. The company uses Amazon and eBay affiliate programs to earn. When people use DuckDuckGo to go to the Amazon site and buy a product, DuckDuckGo receives an affiliate commission from Amazon.
The Amazon Commission rate ranges from 1-10 per cent based on the product category. The eBay partner program gives 1-6 percent commission to DuckDuckGo on purchase.
The value earned by DuckDuckGo from these revenue forms canât be calculated or known because the number of people using the search engine isnât known because of the companyâs privacy rules.
Conclusion
DuckDuckGo is considered the best search engine that offers privacy to its users. At times privacy is difficult with the usage of the internet and mobile phones that track our location and activity, DuckDuckGo offers its users a chance at privacy. As of March 2021, the company had 97,653,174 searches on an average daily.
The company doesnât have stock that is listed, since stockholders would have control over the company and can push to make changes to the belief of the company which is privacy.
The belief of the company that user privacy is the goal of the company has caught the attention of people who are reeling back to gain their privacy and thus making the search engine gain more traction.
FAQ
What is DuckDuckGo?
DuckDuckGo is a company that deals with internet privacy. It is a completely anonymous search engine that provides the same results to all its users since the search results to its users based on their search history, web history or their interests.
Who is the founder and owner of DuckDuckGo?
DuckDuckGo was founded by Gabriel Weinberg in 2008 and the company is headquartered in Paoli, Pennsylvania, United States. Previously, Gabriel Weinberg had launched a social network application which is now defunct, Names Database. He has also drafted a bill called Do-Not-Track Act 2019 for complete privacy protection.
How does DuckDuckGo make money?
DuckDuckGo makes money by using two forms of revenue: Advertising and affiliate marketing. Advertising based on the keywords on the search box and affiliate revenue through Amazon and eBay affiliate programs.
Nowadays, people are working for future prosperity, where something you have earned in the present will reflect as a beget in the future; that too something huge in return.
Have you heard of Mutual funds, where a pool of money is collected from many investors to be funded in securities, bonds and other money market instruments? A Mutual fund plays as an investment as well as a company. Mutual funds works, where you as an investor buy a unit of share of a part of the mutual fund say as, portfolioâs value. Therefore, technically, the investor buys partial ownership of the company and its assets.
If the funded amount showed positive returns which highly depends on the securities the investors decided to buy, then the investors receive profit, while in the case of deprivation in the return; vice-versa. The investor of mutual funds earns their returns in three different ways such as- dividends, Capital gain and a hike on the mutual fundâs scheme.
Most prevalent mutual fund schemes in India where investors participate in stock markets in the long run because the return in those markets is comparable high to others.
Sector-specific fund
These mutual funds have high risk in terms of high potential return, where the investors fund their money in specific sector segments such as mining, banking, infrastructure etc.
Index funds
Index mutual funds are a medium risk factor, to those who donât want any fund manager to manage their returns.
Tax saving funds
These funds are a tax deduction, where these investments have a 3 year lock-in period that plays as tax benefits to the investors.
Debt Funds
These ilk of mutual funds are credit risk, which has a low-risk appetite as well as low outcome. Debt funds are suitable for those investors who are coveting steady income from the fixed investment such as Government bonds or debentures.
Money Market Funds
Investors who are seeking reasonable returns in the investment over a short period of time can enroll into money market funds. Moreover, it has a low-risk factor where the return comes in liquid form so it will be a reasonable return on investments.
Hybrid Funds
It is similar to Balanced funds, despite the proportion of equity assets being juxtaposed to balanced funds. This kind of mutual fund is highly recommended to retired or geriatric who expect low risks.
Balanced Funds
Balanced mutual funds divide the investment between equity and debt mutual funds, where moderate returns with comparatively low risk vary according to the market risks.
Open-ended funds:
Here, the investor can enter, redeem or exit at any point in time because an open-ended mutual fund doesnât have any fixed maturity period
Close-ended funds
Close-ended funds have a fixed maturity date, so the investors can only enter into the market during the initial period of any mutual funds scheme known as the new fund offer; Furthermore, their investment can be redeemed only when the maturity period expires.
Gilt funds
These mutual funds invest only in Government securities, which has no credit risk associated with their investment but has a high interest risk rate.
Mutual fund value as a part of individual wealth in financial assets
The mutual fund industry in India was established back in the year 1963 at the launch of Unit Trust of India by the Government of India. The first very step to the millennials happened in 1964, where UTI introduced the first mutual fund scheme in India and public sector enterprises likewise SBI, Punjab National Bank, Indian Bank, and Bank of Baroda entered the scheme, which was worth 6,700 Crores at the end of 1988.
After a great heyday in India regarding mutual funds, the industry colluded to open a portal for the private sector and by 1993 onwards India has burgeoned in the Mutual fund Industry.
According to the statistics, it is reported that the Indian mutual fund industry had assets under management of 31.43 trillion as of March 2021 which resulted in a jump of 41% in fiscal 2021.
Recent changes by SEBI in the Mutual Fund Industry in India
In June 2021, some amendments were made to SEBI regulation 1996, where they should comply with those new rules of the mutual fundsâ stated by 1st September 2021. The mutual fund is required to share details of risk, performance, outcomes, portfolio to investors only for the scheme they have invested in.
Major Players in the Mutual Fund Industry in India
The money invested in the mutual funds is managed and the schemes are operated as per the regulations of mutual funds by entities registered under the companies act for this specific purpose and they are known as Asset Management Companies. The major AMC offering services in India 2021 are:
Current Condition of the Mutual Fund Industry in India
The Mutual Fund Industryâs Assets Under Management (AUM) saw a rise of 41 per cent in FY 2021. As of 30th June 2021, the AUM was valued at INR 33.67 trillion. In fiscal 2021, the biggest attraction was the corporate bond funds with net inflows of INR 3,299 crore. The highest net outflows of INR 28.923 crore were seen in credit risk funds.
Conclusion
Indian People are big fans of Cricket and the players too. And these cricketers are big fans of Mutual Funds or it seems as they say âmutual funds SAHI HAI!â. The mutual fund industry is rapidly growing and the SAHI HAI campaign that was launched in 2017 has contributed a lot to this growth as people are aware of mutual funds and results in investor education.
The first quarter of FY 21-22 added 12 lakh investors to the fast-growing mutual fund industry in India. As more people learn about the benefits and security provided by mutual funds, the industry is expected to see favorable growth in the coming years.
FAQ
What is the mutual fund industry?
Mutual Fund Industry are the companies that pool money from various investors and invests the money in securities like stocks, bonds and short term debt. A portfolio is the combined holdings of the mutual fund of the company.
What is the total revenue of the Mutual Fund Industry in India?
As of 30 June 2021, the AUM (Assets Under Management) of the Indian mutual fund industry is around INR 33.67 trillion. The AUM of the Indian Mutual fund Industry as of 30 June 2016 was INR 13.81 trillion. The industry has seen a two-fold increase in the span of 5 years.
Who is governing and regulating the mutual fund industry in India?
Mutual funds are primarily regulated by the Securities and Exchange Board of India (SEBI). The approval of the Reserve Bank of India (RBI) on a mutual fund is required to provide a guaranteed returns scheme. The Ministry of Finance of India acts as the supervisor of the RBI and SEBI. The mutual funds are regulated by SEBI, RBI, the Companies Act, Indian Trust Act, Stock exchange and the ministry of finance. Â
The pandemic has transformed the world into a digital one. There has been observed drastic change with the people in the field of shopping. And with such an advancement, people are entirely relying on the internet for any purchasing.
From household products to festive clothing, everything is available on the Internet and people are purchasing these as well. A wide fraction of people prefer online shopping apps for any purchase.
Among these, Amazon is one of the most established shopping applications across the world. In fact, Amazon is counted among the triumphant companies that hold the position to beat the consumer and retail industry!
With the popularity of Amazon, many small businesses consider it quite dominant in the retail industry. People are acknowledging how Amazon’s immense success is causing great loss to small businesses. Whether these are accurate and true, can’t be asserted right away! But a question arises, Is Amazon killing small retail businesses?
Well, looking back at some previous analytics, this accusation on Amazon isn’t something new. As of 2019, Steven Mnuchin, the United States Treasury Secretary also mentioned that Amazon, being a harm to the retail industry. To discuss this matter briefly, we have presented this case study- Is Amazon killing small businesses? Let’s begin!
Amazon, being the world’s one of the biggest online shopping companies, managed its way to success even in the dreadful pandemic of 2020. It made a huge profit towards the sales. At the beginning of 2020, Amazon made a profit of $5.2 billion beating its previous record of $2.6 billion in 2019.
The most significant thing about Amazon’s success is that the company modifies its policies and practices based on the resources and customers’ requirements. The company adjusted its services during the pandemic, that’s why it made such a remarkable profit.
With the immense success and fame of the company, the accusations on Amazon for killing the small businesses increased more vibrantly. The small businesses entirely blame Amazon for destroying the consumer and retail industry. Many examples and proves came out claiming Amazon for killing the small businesses but, many of these couldn’t be proven accurate.
Amazon Annual Net Revenue (in billion U.S. Dollars)
Consumers’ perspective during the Stay at Home orders
With the dreadful condition of Covid-19, people have become more cautious with their lifestyle, especially in the shopping part. People across the globe changed their offline shopping techniques into digital ones. And on that note, Amazon experienced massive progress and development. Because of this, Amazon made such a great profit even during the global crisis.
Amazon spent over $4 billion on further Covid-19 costs. And with this, the company took over various services adaptation. Amazon functions with great strategies and process improvements.
But even after this, Amazon is considered the destroyer of small businesses. It is highly criticized by the critics in a bewildering manner. But the company believes in helping and driving more audience to the small businesses but not in being a destroyer for them. However, the company remains on the top, regardless of its various accusations.
No matter how many proofs come out, any company itself cannot be blamed responsible for the downfall of small businesses.
Amazon’s perspective on being responsible for the downfall of Small businesses
On asking about the accusations made on Amazon, Jeff Bezos, the founder and executive chairman of Amazon mentioned in an interview that the company itself holds a very strong and beneficial relationship with its sellers, who are small and medium-sized businesses. Amazon believes in helping the sellers to gain profit and success as it would bring more choices that could actually lower the prices of their products.
In fact, Amazon works with around 1.5 million small to medium sellers, just in the United States. As the more such sellers would join Amazon, the more benefits the customers will get such as free delivery, shipping, and low prices.
Although Amazon is affecting the small businesses, it means no harm or demise for them and brought a performance standpoint in the marketing field. Amazon has brought a great advantage in the retail industry as reaching customers has become very easy and profitable.
With the digitization in every sector, people are becoming more connected with E-commerce platforms. That’s why small and medium-sized businesses are also enrolling in the digital platform as an advanced marketing tool.
There’s huge competition in the market among established brands and small businesses. And those who would adapt to the changes that come to them will be known as being the biggest.
Modifications by Amazon for Success of Businesses
Amazon has taken the retail industry to an advanced level. And with its popularity and services, it has brought absolute convenience for the sellers to reach out to more customers and suppliers. Many concluded this as contraction to the claim made on Amazon.
As the consumers on the global level are increasing rapidly and so as the digital marketing platforms. People are preferring online shopping more promptly. On that note, small and medium-sized businesses must acknowledge this advancement and work accordingly. This would help them to embrace the changes that come on the way, instead of complaining.
Amazon has worked tremendously to gain the customer’s support and its success. In order to do so, it has widely increased the competition in the retail industry which has not been well received by the small and medium-sized businesses.
Various claims have been made on Amazon, accusing it of killing the small business. But as it has raised the competition, it has also brought several opportunities for sellers (including small and medium-sized businesses) to reach the customers more frequently and with good services in hand.
The whole world is digitizing and as people are becoming more reliant on digital sources for any purchase, it’s a great opportunity for small businesses to modify their services and take up the stand with the E-commerce platforms. This would bring immense advantage for the small businesses. Just that, Amazon has accepted the changes that came for it and adapted it as well. That’s why it has grown to be the biggest online shopping company.
FAQ
Is Amazon killing small business?
Amazon is helping small business and retailers. As because of Amazon independent brands and small businesses can compete with large corporations and established brands.
What impact does Amazon have on small businesses?
The more sales businesses do the more money Amazon generates. Amazon has also invested more than $30 billion in logistics, tools, services, and employees to help small businesses.
Do small businesses sell on Amazon?
Yes, many small businesses are selling their products on Amazon.
The Indian automobile industry is one of the most competitive sectors in the economy. There are approximately 5000 car dealers in India wherein approximately around 11 â 12 cars are being sold every minute. Be it SUV or sedan, as the standard of living is rising in India, people feel like having a car is a necessity.
In the past decade, the popularity of having cars has increased a lot. Due to the advancement in technology, cars have become affordable as well as eco-friendly. With the increasing needs of people in India, the competition in the automobile industry is beyond par. Even when there are many automobile companies in India who sell affordable, luxury all kinds of cars, there is one company that has always been on the top priority of people and that is Maruti Suzuki.
Maruti Suzuki India Ltd has grown to be India’s largest passenger car company, which accounts for over 50% of the domestic car market. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation, Japan, where the Japanese car company boasts of holding around 56.37% of stakes, according to the reports dated September 2020.
The company offers a wide range of cars starting from entry-level cars to stylish hatchbacks and the most modern sedans including DZire, SX4, Grand Vitara, and more. It takes care of the business of the manufacturing, purchase, and sale of motor vehicles and their spare parts (automobiles). Furthermore, it is also engaged in the financing of cars and the facilitation of pre-owned car sales fleet management. The Maruti automobile company has 2 manufacturing plants in Gurgaon and Manesar in Haryana and 1 manufacturing complex in Gujarat. According to the recent announcement of the company in May 2021, the company is capable of manufacturing around 200 cars per day in total.
In this Maruti Suzuki Case Study, you will know all about the History and Success of Maruti Suzuki in India.
Maruti Suzuki was started back on February 24, 1981, to manufacture cars for middle-class Indians. The company was formed as a government company, incorporated as Maruti Udyog Ltd. with Suzuki as its minor partner. Maruti Udyog then signed the license and joint venture agreement with Suzuki Motor Corporation, Japan, on October 2, 1982, which began the start of the long-lasting and successful partnership.
The company started its productions in 1983, which then came to be the choice of every Indian household. The first car it launched was Maruti 800. It was affordable back then and was thus incredibly popular. This model of Maruti is still considered to be a Maruti classic to date. Although the journey of Maruti Suzuki India Ltd. started off in a very different way.
Maruti Suzuki – 1980
In India, till the early 1980s, the government of India controlled the Indian automobile sector, and privatization did not enter yet. There were only two automobile companies â Premier Automobiles Ltd, which had their popular car, Premier Padmini, and Hindustan Motors Ltd, which made the Ambassador cars. Maruti Udyog Ltd. entered this era with Suzuki Motor Corporation as its minor partner.
Premier Padmini
Maruti Suzuki – 1983
Maruti Udyog signed a license and joint venture agreement (JVA) with Suzuki Motor Corporation of Japan in 1982. This is when the very first factory of Maruti Suzuki was established in Gurgaon, Haryana. In the first 2 years when Maruti was set up, the company was engaged in the importing of fully-built cars from Suzuki, which later grew to include only 33% native parts. This was not what the indigenous company had planned.
Though Maruti was ready with the idea of its own manufacturing facility in India, the company couldn’t continue with its plan fearing the small market here in the subcontinent. Besides, our country was in need of producing fuel-efficient vehicles to meet the increasing demands as the local transport was inefficient. This is why the company thought of adjusting the petrol tax and also reduce the excise duty to ramp up their sales.
Maruti Suzuki began its local production in December 1983 and introduced its Suzuki Alto (SS30/SS40), Suzuki Fronte, and Alto-based Maruti 800.
Maruti Suzuki came up with a new and powerful Suzuki Alto (SS80), a 796 cc hatchback, which replaced the former Maruti 800 model in 1986. The company also successfully manufactured its 100,000th vehicle in the same year.
By this time the company was already recognized for its stronghold in the automobile and at the turn of the new year, Maruti Suzuki also began its foreign exports. It started with exporting a lot of 500 cars to Hungary
Market Liberalization and Maruti Suzuki – 1991
1991 was the year of the liberalization of the Indian economy and by then, the company witnessed around 65% of its components being indigenized. It was also in this year that Maruti further increased its stakes in Maruti. Maruti Udyog then became a 50-50 joint venture with the Government of India and a Japanese automotive company as stakeholders.
Maruti Suzuki – 1994
Maruti Suzuki saw the production of its 1 millionth vehicle in 1994 since it started manufacturing automobiles. This year also saw the inauguration of the second plant of Maruti. Furthermore, the automobile manufacturers also started their 24-hour on-road emergency vehicle service.
Maruti Suzuki – 2000-2002
Maruti emerged as the first Indian car company to launch a call center for its internal processes and customer service in the year 2000. The company also saw the release of many more models of its cars in the next 2 years that followed, including the Esteem Diesel, which was launched in 2002. Meanwhile, Suzuki Motor Corporation also increased its stake in Maruti, which now became 54.2%.
Maruti Suzuki – 2003-2004
The company started the year 2003 with the introduction of the Suzuki Grand Vitara XL-7 and upgrading its Zen and Wagon R models. Later in the same year, the company manufactured the 4 millionth Maruti vehicle and also entered started its new partnership with the State Bank of India. Moreover, the company was also listed on BSE and NSE after which it went public with issues that were oversubscribed tenfold.
Maruti 800, which was the best-selling Maruti car till 2004 was overtaken by the incredible popularity of the Alto model after 2 decades in the same year. Maruti Udyog concluded the financial year 2003â04 with a record 472,122 units as its annual sale, which reached an all-time high since the company began operations.
Maruti Suzuki – 2007
On May 10, 2007, the government of India took an exit from the country’s largest car maker Maruti Udyog Ltd by selling the residual stakes, which amounted to Rs 2,360 crores to a bunch of financial institutions led by the Life Insurance Corporation. In July 2007, Suzuki decided to change the name of its subsidiary to Maruti Suzuki India Limited.
Maruti Suzuki Logo
Maruti Suzuki – 2012 and the Later Years
Maruti Suzuki successfully sold its 10 millionth vehicle in February 2012. The company boasted of having a market share of 45% in July 2014 and then in May 2015, it witnessed the production of the 15 millionth vehicle in India with the launch of the Maruti Suzuki Swift DZire.
Maruti Suzuki was cautious of the environmental factors and understood the need of embracing environmentally friendly automobiles. This is why the company declared that it would phase out the manufacturing of diesel cars by 1 April 2020. Furthermore, by this time the Bharat Stage VI emission standards also came into effect, which announced that the company must significantly invest in its diesel cars to comply with the stringent emission standards.
The company plans to launch its first electric car in the second half of 2021, according to the reports. The car would be named Maruti Suzuki WagonR Electric, which is currently put to test.
Maruti has carved its own league of success throughout the years that it has remained in business. The company now boasts of having 9 subsidiary companies in total, namely:
True Value Solutions Ltd
Maruti Insurance Agency Logistics Ltd
Maruti Insurance Agency Solutions Ltd
Maruti Insurance Distribution Services Ltd
Maruti Insurance Business Agency Ltd
Maruti Insurance Agency Services Ltd
Maruti Insurance Agency Network Ltd
J J Impex (Delhi) Pvt Ltd
Maruti Insurance Broker Ltd
Maruti Suzuki had surely achieved great success. 5 Main things that ushered in the success of the company are – Affordability, Goodwill, Hatchbacks, Low Maintenance & NEXA
Affordability
In the early â80s cars werenât something that every Indian man or a middle-class family could afford. It was a luxury resource about which only a few people could dream. There werenât many car companies since liberalization came late in India.
When Maruti Suzuki entered the Indian market, the most prominent factor which made it the market leader at that time was the price of its cars. They were very successful in launching cars with excellent features at an Indian budget-friendly price which made it âpeopleâs carâ.
Even to date companyâs cars are known to be in a range which any middle-class man today can afford to buy.
Goodwill
Over a decade ago, Maruti Suzuki launched an advertisement video which said âGhar aa Gaya Hindustanâ which became an instant sensation among people of India. Since the initial years, Maruti Suzuki has been successful in creating a notion into the minds of people that they associate home, the nation with their car.
Their commercial still instills that India comes home in a Maruti Suzuki. The company has received great acceptance for the brand and its customers are very loyal to them. All these years, customer satisfaction has proved that Maruti Suzukiâs goodwill and brand loyalty are very strong and enthralling.
Hatchbacks are the most idol cars for Indian roads and they rule the market. They are everywhere present in the market and are the most preferred body type throughout the nation. Maruti Suzuki initiated the concept in India and its most popular hatchback car Alto is one is the most demanded cars in India to date.
Maruti Suzuki Alto
Low maintenance
When comparing the services of different automobile companies in India, Maruti Suzukiâs service charges are lower. The best thing about their services is that they have various stations and centers across the nation where they serve a huge number of cars daily. Today they make most parts in India under the Made in India and hence their spare parts and components are variably low when compared to other automobile companies.
Since Maruti Suzukiâs cars were always looked at as the mid-range cars that serve the middle-class category they wanted to enter the other market too. That is when Maruti Suzuki launched NEXA. In 2015 they started the delivery and operations of its premium range cars. This helped them engage with their high-end customer category.
Maruti Suzuki Nexa
Conclusion
The automobile sector has been growing rapidly over the past decade, even after the Covid-19 pandemic. Maruti Suzuki cars have emerged as budget-friendly and low-cost cars with superior after-sales services that have made it Indiaâs top choice for many car owners.
Maruti Suzuki will play a very important role in making cars assessable and available to many Indians in the future as well. Its aggressive management and promotion strategies will cater to huge demand in the Indian automobile market.
FAQ
What is the net worth of Maruti Suzuki?
As of 2020, the total assets of Maruti Suzuki is âš63,627 crore (US$8.9 billion).
Who is the chairman of Maruti Suzuki?
Shri Ravindra Chandra Bhargava is the chairman of Maruti Suzuki.
Is Maruti a Govt company?
Maruti was a Govt company, but in 2002, the Indian government gave the charge of the management of Maruti Udyog Ltd. to Suzuki for a consideration of Rs1000 crore.
Many service based startups in india are establishing their place in the market, this is mainly because many of the new ideas have worked flawlessly for consumers. And that is why India is currently one of the fastest-growing startup ecosystems. Service-based Startups are ruling the market as compared to product-based ones. Examples for the top service startups in India are Flipkart, Quikr, Sulekha, Ola, Yatra and POPxo.
India is also the third-largest startup ecosystem after the US and the UK. The liberated economies and affordable technologies have made it possible for the new age entrepreneur to compete with the already established players.
The service oriented business in india is the fastest-growing sector, as it contributes significantly to the countryâs GDP growth, employment, trade, and investment. In the Indian service based business, e-commerce takes the major share of the pie. According to the Morgan Stanley Research the country’s e-commerce market was estimated to increase from $102 billion to $119 billion by 2020.
On the other hand, there are not many success stories when it comes to product-based startups. A few names that occur to us and which have made some inroads into the Indian startups market share, are Micromax Informatics, a leading consumer electronics company. Gecko, a device that works as a key finder and Goqii, a fitness tracking wearable.
Reasons why Service-Based Startups are more successful?
Indian Startups are known to have a greater advantage with service-based business. Here are some of the reasons why service-based startups are more successful and survive longer in India.
Low Capital Costs
Manufacturing and selling a physical product involve a heavy capital investment, time, and energy. It usually requires taking a bank loan or securing funding from investors.
On the other hand, there are little to no startup, overhead or manufacturing costs involved in service-based startups. A founder can start a setup (from his home or garage), with a few or no employees, and build his reputation through word of mouth marketing. Service based business only needs a small set-up and does not require a huge capital infusion, he can even bootstrap his business.
Faster to Launch
Service-based startups can get a business off the ground and start earning revenues earlier. The service startups need to define their service, find customers, listen to their requirements and start delivering the service. The product based startup ideas take a lot of time and resources to conceptualize, design and create the product.
Lower Business Risk
Every business is prone to some risk, however, service-based business in India face fewer risks. A customer who’s paying for a service usually knows his requirement, hence there is no guesswork involved, and hence, lower risk. You are selling the service and billing for a specific skill or expertise you already own. And, in service based business customers are committed to paying before you even start working.
Flexibility and Adaptability
Furthermore, a service-based startups are much more flexible and adaptable. Not only you can work from wherever you want, but you can easily make adjustments and customize your service as per an individual clientâs needs. For example, If your client isnât too happy with his website or campaign, you can make changes according to their feedback in real-time. Product-based companies in India find it much more difficult to improve or modify, as they may need testing, licensing and re-manufacturing.
With the emerging business opportunities in India, The world biggest startups are no longer just in America or China. There are numerous successful startups in india, which has made the country a leading global startup hub.
According to the latest report by KPMG, the number of startup companies in India has grown from 7,000 in 2008 to 50,000 in 2018. The growth of startups in india is significant, but there oneprimary difference between Global and Indian startups, and that is funding. Itâs quite easy to get going in India, but the problem lies in the later stages where funding becomes more troublesome leading companies with no choice but to get international venture investors.
Successful Service-Based Startups in India
Zomato
Zomato is an online restaurant search and discovery app, providing in-depth information about 1 million restaurants across 23 countries. Zomato is one of the successfulservice based startups in India. It is used by consumers globally to discover good food, rate, and review restaurants, as well as create personal networks of fellow food enthusiasts for trusted recommendations. This service startup was launched in 2008 covering over 331,200 restaurants in 19 countries.
In addition to restaurant search and discovery, Zomato has expanded its offering to include transactions like Online Ordering, Table Reservations, and Point-of-Sale system, creating cutting-edge technology to connect restaurant businesses and customers in ways that will revolutionize the restaurant industry.
Practo
Practoisa health tech companywith the motto of #DoGreat is prospering greatly with 2,00,000 doctors and 20 million patients across the world. This service based startup, kick-started its journey in the year 2008 from Bengaluru by two NITians Shashank and Abhinav Lal.
Practo is the perfect example of âIn the middle of difficulty lies opportunityâ because the idea of PRACTO was initiated from the difficulties Shashank faced concerning his fatherâs health. It is a successful startup in India because of its numerous unique services.
Practo, is a product of Naabo solutions, which became the Home for health by its hassle-free solutions for doctor appointments, delivery of medicine at the doorstep, online consultation with their registered doctors along online appointment booking software for doctors to manage their clinics.
Rentomojo
Rentomojo is a service oriented business in India that was started with the idea of providing online rental services for furniture (for 3 months) in 2014. The startup was started with the aim of providing its consumers with the ever-evolving style without the actual investment costs for furniture.
Rentmojo is a service-based startup that was funded by IDG Ventures India and Accel partners initially and in 2017. The company gained $10 million Series B funding from Bain Capital Ventures and Renaud Laplanche.
Rentomojo expanded its business to renting two-wheelers and appliances in 8 cities with an option of Rent-to-own model by the year 2018. Rentomojo is offering new services in india like cleaning annually, free maintenance with the subscription, swap products, and others.
Conclusion
When it comes to the product based vs service based startups, the success rate of product-based companies is very low than service-based companies in India. The ideas of some of the top Indian startups are quite out of the ordinary.
If one wants to create the most successful startups in india, one needs to think outside of the box. Service startups in India have to keep up with their competition. Their startup ideas should be unique, which always attracts customers and brings forth profit.
FAQs
What is the difference between product-based and service-based company?
A Product-based company creates or designs their products or application for general customers usage. They are not Client-specific. Whereas a Service-based company works only when a client approaches them with specific needs or requirements.
What are service-based startups?
Service-based startups fouses on clients requirements. They can get a business off the ground and start earning revenues earlier. They need to define their service, find customers, listen to their requirements, and start delivering the service.
Which Indian startups are profitable?
There are many Indian startups that are profitable. The country has many unicorn startups:
Byju’s
Swiggy
Oyo Rooms
Dailyhunt
CureFit
FirstCry
PharmEasy
boAt
Licious
Myntra
Is India good for Service-based industry?
India leads in the number of service-based companies in the world.
Which is the best service-based company in world?
Some of the best service-based companies in the world are:
Pratyusha Srivastava
