Insurance industry in India is not a recent development. It has its route extended even in the writings of Kautilya, Manu, Yagnavalkya etc. Insurance is in fact a very reasonable move to diminish the risk of loss by transferring it from one unit to another in exchange for payment.
Various insurance companies guarantee to provide a person with compensation for listed losses and damages in return for the payment of a predetermined premium.
As is explicitly understood, insurance is a method of risk management to protect people and assets from uncertain losses. It pools funds from various insured entities to pay for the losses incurred. However not all kinds of risks are protected through insurance. For a risk to be ensured it should meet certain characteristics.
The insurance sector has divided insurances into two parts, namely life insurance and General insurance. Life insurances engage with human lives while General Insurance or Non Life Insurance deals with things other than human life. The duration for the insurance can be short-term or long-term.
Life Insurance
Life insurance is in fact an agreement between an insurance policy holder and an insurer where the latter guarantees to pay a sum of money to the designated beneficiary in exchange for a premium after the death of the insured person. These policies are lawful agreements and they also list the restrictions that are in place for the insured Events.
General Insurance
General Insurance policies on the other hand guarantees payments which are dependent on the laws that a particular financial event incurs. Any insurances that are not determined as Life Insurances are called General or Non Life Insurance. Automobile policies, home owners policies etc. are a few examples. They are also known as property and casualty insurance.
Insurance Industry Before Independence
Insurance is considered to be having deep-rooted history. As mentioned earlier there are mentions of insurance in ancient scriptures, especially the ones written by Kautilya and Manu. However, reliable and concrete evidence of the beginning of the insurance industry in India can be traced back to 1818.
In that year Oriental Life Insurance, a British company was set up in Kolkata to become the first insurance firm in India. They were started to cater to the needs of the European Community in India during that time. These insurance companies however treated Indians and foreigners differently.
Indians were always charged with higher premiums to distance them from taking up insurances. Followed by that in 1823 a company named Bombay Mutual Life Assurance Society and in 1829 Madras Equitable Life Insurance Society was formed.
It was in 1914 that the Government of India started issuing returns of insurance companies. It was preceded by the Indian Life Insurance Companies act, 1912. It was known as the first ever initiative to control life insurance dealings.
Life Insurance Companies Act made it mandatory for the insurance companies to issue the tables of premiums and their periodical valuations to be counter checked by an actuary.
In 1928 the Indian Insurance Companies act was enacted. It gave power to the government to keep an account of the statistical information regarding Life and Non Life Insurance that are being transacted in India by both Indians and foreigners.
The insurance act of 1938 had comprehensive provisions that ensured efficient controlling of the activities of insurers to protect the interest of the people.
Number of Registered Private Insurance companies across India
Growth of Insurance Industry – Post Independence
The provisions of insurance were extremely advantageous for the economic activity of the nation. It also created a sense of social security amidst the people. Needless to say the insurance industry in India thrived post independence.
When the insurance industry was taking its form in India, there were absolutely no regulations. This was in the 19th century. In 1956 the Government of India took over the Life Insurance Company. Followed by that in 1972 the government took over the General Insurance Business of the country.
Life insurance Corporation or the LIC had a monopoly over the insurance industry. It consolidated 154 Indian, 16 non-Indian insurers and also 75 provident societies—245 Indian and foreign insurers in total.
In the late 1990s LIC was privatised and the insurance industry was open to the private sector. Foreign Investment Promotion Board or FIPB was formed to assess the promotion of Foreign Direct Investment in India and also to be the sole agent to handle matters related to FDI.
The board is chaired by the Secretary of the Department of Industrial Policy and Promotion known as DIPP that is within the office of the Prime Minister. It aims to promote FDI in India where they promote investments both domestically and internationally by providing investment in the nation through international companies, foreign investors or NRIs.
Insurance Industry post 2000
The insurance industry in India has grown phenomenally from 2000 as the government allowed private sector investment in the industry up to 26%. Until then all private life insurance companies were taken over by LIC. Followed by privatisation, private players in the industry are increasing and the role of LIC in the market is seeing a steady decline.
One of the main reasons for the continued growth of the insurance industry is because the insurance industry in India is not a high capital cost industry unlike telecommunications or oil.
Being a developing country most of the employment in India is in the informal sector. Because of this government’s continue to make insurance compulsory in the formal sector which will limit the opportunities to cross subsidise the informal sector.
Similarly the state has also taken initiatives to offer insurance on a voluntary basis to the informal sector workers since most of the poor in India work here. The government has constantly been looking for reducing large-scale out-of-pocket expenditure, to provide universal healthcare coverage, improve the standards of living and better utilisation of health services.
All these things being absolutely necessary can be solved to a great extent by providing insurance to all. The IRDAI or the Insurance Regulatory and Development Authority of India regulates and promotes the industry in India. It is formed to protect the interest of the policy holders and to ensure that their rights are protected.
Future of Insurance Industry in India
Considering the current market scenario there is an increase in the General or Non Life Insurance Sector compared to the Life Insurance sector. It is predicted that the former will soon start to compete with Life insurance companies in the future.
However there is absolutely no doubt that the new insurance companies that are going to be set up in the near future will surely experience a positive growth and expansion in the Life and General Insurance sectors.
The fact that incomes are rising, lifestyles are changing constantly, newer trends are emerging in the industry are excellent signs for the sector to strive for better product innovation, efficient claims management, multi distribution and many other regulatory trends.
The growth of the insurance sector has also assured in the light of various insurances with which the Indian government had come up. Some of them are
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Rashtriya Swasthya Bima Yojana (RSBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Both the government and companies are committed to protect their employees, especially the ones in the lower and lower middle income divisions. In the future we can expect the growth of more insurance policies with lower premiums. This will augment the economic stature of the nation significantly.
FAQ
What is the market size of the insurance industry in India?
The overall market size of the insurance industry in India is expected to grow over US$ 280 billion in 2020.
Which is the biggest insurance company in India?
Life Insurance Corporation of India (LIC) is the biggest and oldest insurance company in India.
How many insurance companies are there in India in 2020?
There are 68 insurance companies operating in India as of 2020.
Washing is one of the most important chores of an Indian household. We have many international and national companies that have held the market for so long. However, Tide stands a level higher than the rest of them. They have woven their marketing strategies in such a manner that even after 20 years of its launch in India, many of us do not know that Tide is a US company.
They have revolutionised the Indian detergent market with their synthetic compounds that made Tide one of the most profitable brands of P&G. Although it was launched in the US as a heavy-duty laundry detergent in 1946, it entered the Indian markets only in 2000. Since then there hasn’t been a look back for Tide.
According to various studies, it is estimated that Tide holds 13% of the Indian detergent market share and is third only to Indian companies like Ghadi and Nirma. Over the years, they have been successful in carving out their own space in the industry despite being a foreign company. At this juncture, the article will explore the marketing strategies of Tide which renders them so indigenous.
The first factor that enabled Tide to have a stronghold in the competitive yet incompetent Indian market was its ability to launch products and advertisements with a clear understanding of the problems of the users.
Firstly, it is widely known that people in charge of the households are genuinely trying their best to make things smooth and easy. However, removing tough stains have always come up as a herculean task.
Time and again, Tide has come up with modifications in its product that makes it easier to remove stains that contain carbohydrates and proteins. Similarly, their ads completely acknowledge the difficulties faced by users and portrays themselves as offering a solution to their problem.
Their ads are also reflective of national and regional sentiments regarding festivals, the whiteness of clothes etc. They have also addressed the issue of detergents being harsh on hands and have offered solutions for that as well.
Perfect Targeting of Audience
In India, family is a very important entity and women are the ones who take most of the familial decisions. Although the gender roles associated with domestic chores have been changing, the fact largely remains that women are in charge of domestic chores. This has inadvertently made Tide focus on Indian women through their ads. Especially homemakers.
Whenever they launch a product or a campaign, they make sure that it will be attractive for Indian homemakers. Most of their ads and campaigns can be seen pitching themselves exactly in places worthy of it. For example, they have launched their soap bars and detergents in a range of varieties and prices which will suit the needs of their target audience.
Unique Campaigns and Catchy Tag Lines
This is one of the most important aspects of Tide’s marketing strategy. Their campaigns always have a positive social message while emphasising the benefits of using Tide. For example, campaigns like #TideGivesExtra, #TideWhite etc. have been successfully able to benefit from exploiting the Indian desire for white clothes and attention.
They have also identified the loopholes and problems in the sector to come up with effective campaigns. One such campaign would be that of white collars. We all know the embarrassment that a dirty collar can bring. Identifying this, Tide launched the #CollarUpWithTide campaign which was an immediate hit. Similarly, its unique campaigns and catchy tag lines have helped the company tide over its competitors.
When it comes to marketing strategies, the packaging is its cornerstone. Tide has aced this part of marketing with grace and creativity. Its vibrant orange and white packaging is very distinguishable amidst any crowd.
Tide Packaging
Apart from the colour, it has also brought in many innovations to its packaging too. They have recently launched a package that suits e-commerce platforms that prevent leakage and damage when transported over long distances through unpredictable modes. However, it is yet to be launched in India.
They also have special packaging like packets, sachets, cartons, cans etc. which attracts the customers as it gives them a wide variety of choices.
Tide Different Packaging’s
Affordability and Positioning Through Segmentation
Tide has been successful in being economical while being a premium brand. This is because they have launched products in different price ranges. They have divided their products into popular, premium, super-premium and what not. Hence, while it becomes accessible to the mass population, it also gets equated with other premium brands. Such an effective marketing strategy has helped Tide to expand its bases to all sections of society.
Conclusion
Upon analysis of the marketing strategy of Tide, it becomes evident that it is their ability to understand and respond to the issues of the Indian households that made it so popular and close to the consumers. They have also not held themselves back in promoting strong social messages.
To be welcomed and accepted as an indigenous company in such a short span of time is not an easy task. Tide makes the importance of understanding the target audience more clearer now.
Lessons have to be learned from their constant efforts to expand into newer sections of society without being too elitist. Considering its dynamic strategies there is no doubt that Tide will continue to grow its business in the industry in future as well.
FAQ
When was Tide detergent launched in India?
Tide detergent was launched in India in 2000.
Is Tide detergent an Indian company?
No, Tide detergent is an American brand of laundry detergent owned by P&G.
What is the target market of Tide detergent in India?
Tide Detergent primarily targets Women age group from 18 to 54 years old.
We Indians are well-familiar with this digital job portal company, Naukri.com! The very amazing job search platform, established by Sanjeev Bikhchandani in March 1997.
Naukri.com is nothing new, the company was established long ago through its parent company, Info Edge. The founder- Mr. Bikhchandani is an Economics graduate from Delhi University, India.
After a thorough study and knowledge of marketing and the corporate sector, he went to IIM Ahmedabad for his master’s graduation degree. Mr. Bikhchandani got the job at a lucrative management company, HMM but soon after working there, Mr. Bikhchandani left the company and went to start his own venture.
They begin with offering the review of different company’s salary review reports. These reports were sold to various companies based on their requirements. And that’s where Naukri.com was founded!
Today, Naukri.com is a completely digital recruitment portal that receives around 3,569,323 distinct visitors along with 28,554,744 page views every day. Naukri.com has a google ranking of 6th among the top 10 job portables companies in India. In this article, we will be briefly discussing the business model of Naukri.com. Let’s get started!
Naukri.com is counted among India’s top employment websites that generally operate in India as well as the Middle East. The company was founded by Sanjeev Bikhchandani when he founded Info Edge Ltd in 1995. Naukri.com is headquartered in Noida, India, and functions entirely through the internet. The company has officially over 49.5 million registered job seekers and around 15,000 resumes are added daily.
Naukri.com offers great customer services that attract the customers the most. These services also come as paid ones. According to records, in the Fiscal year (2013-14), Naukri.com received over 51,000 corporate customers who opted for the paid services of this company. And, these customers were provided with the service of job postings, database access, listing, or advertising on various other sites. The company has over 100-5000 employees.
Where does Naukri.com operate?
One of the biggest Indian digital job portal companies, Naukri.com operates in over 56 offices across 42 cities in India as well as overseas. The company was founded in 1997 and is widely used in India and the Middle East.
Key Features of Naukri.com
The key features that come with Naukri.com for its registered customers include:
Custom Application Process
Company Branding
Automated Screening Process
Actual communication and notification to the employees
Employee referral automation
Integrated tracking
Target Audience of Naukri.com
Naukri.com has around 15,000 major clients. Its registered customers are categorized under job seekers and job providers. The company majorly focuses on people between the age of 25-35 years old. Those who need a good job and searching for it around. Naukri.com provides them an easy way to search for a job they prefer and get themselves ready for it.
Business Model of Naukri.com
Naukri.com follows two distinct forms of business model, that is Business-to-Business and Business-to-consumer model. These models are described below:
Business-to-consumer model
Through this business model, Naukri.com offers tons of services such as profile enhancement, resume writing, recruiter reach, and various other premium job openings.
Business-to-Business Model
Through this model, the company provides the RESDEX product which offers end-to-end recruitment services to numerous corporate companies including big and small. This service gives the vacancy listing, resume database excess, SMS marketing, and others; to the companies. A large portion of revenue is generated through the Business-to-Business model.
How does Naukri.com make money?
The job portal company, Naukri.com generates its revenue from pay-per-click advertising, email marketing, database sales, and many others. There are numerous ways this job portal company makes its money. Naukri.com provides a platform for job seekers where it allows them to connect with the job news and openings. The company works as an intermediate between the job seekers and providers and brings out the best deal. Some of the ways Naukri.com makes money are listed below.
Advertising
When a company has any job openings, they bring them to Naukri.com for a better selection of candidates. Naukri.com displays the company’s job openings on its homepage and gets a huge number of visitors. Naukri.com earns its money when a user clicks on the company’s news.
Email Marketing
The companies with the job openings contact Naukri.com to send out the job vacancy to the candidates through email. Companies give Naukri.com money for each email sent.
Database Sales
Naukri.com holds the information about all the registered candidates including their resume, contact details, profile, and others. Naukri.com sells this database to companies with job openings. Through this, they earn suitable money.
Premium Content
Naukri.com charges little amount of fees from the candidates as well as the recruiters registered on its website. Naukri.com often charges some money on certain premium services according to reputable and large companies.
Conclusion
Naukri.com originated from the Info Edge company which was founded in 1995. Its business model is based on B2B as well as B2C. And this brings out great results and revenue to the company. Naukri.com is widely famous across India and the Middle East. The company has a long way ahead with great profit in hand.
FAQ
Who is the founder of Naukri.com
Sanjeev Bikhchandani is the founder of Naukri.com
Who is the CEO of Naukri.com?
Hitesh Oberoi is the current CEO of Naukri.com
Who are the competitors of Naukri.com?
Monster, Timesjobs, JobSitesIndia, Shine, and IIMJobs are some of the top competitors of Naukri.com.
As we move higher in the digital realm, education is also undergoing significant changes. Since the last decade we have seen a lot of E-learning platforms mushrooming across the world and India was not an exception. As pandemic held on to their natural course of life, digital learning platforms were an abode of hope and connectivity.
Even before the pandemic, these firms had significantly reduced the issues of physical accessibility, unequal distribution of facilities etc. Among a large variety of online learning platforms Vedantu was one platform that stood out and was committed to providing quality education to every student associated with it.
Vedantu was founded in 2011 by Vamshi Krishna, Pulkit Jain, Saurabh Saxena and Anand Prakash. The firm is owned by Vedantu Innovations Private Limited. Their business model is explicated below.
The most important resource that the firm relies upon is the quality of the teachers and the skill set of the technical team. The live interaction of the teachers along with their ability to adapt and improvise depending on the requirements of the students have significantly helped in the growth of Vedantu.
Being an online platform the structure and organisation is also as important as the skill sets of the teachers. They have a very well organised website at the perusal of the students.
Vedantu Website
Key Activities of Vedantu
The major activity that drives Vedantu forward are their live classes and materials. Apart from that they also provide various free courses and free materials that are useful for classes from 6 to 12 and also for students preparing for various competitive examinations.
These free classes and materials are in fact testers which the students can use before they decide to sign up for their paid services. Their classes are mostly live and cover the syllabuses of all subjects from class 6 to 12. The price of the paid services vary depending upon the class of the student and also the courses that they wish to enroll in.
Value Proposition of Vedantu
One of the major highlights of this EdTech company is it’s personalised classes and live interaction. Unlike the pre-recorded classes of its competitors, it ensures that they hire skilled teachers who are capable of devising better learning methods based on the requirements and mindsets of the students.
This unique customisation is inclusive of white boarding technologies, video, two way audio et cetera. This startup is also a favourite choice for students who are preparing for competitive examinations.
Like most of the online classes Vedantu also records live classes for the benefit of absent students. They ensure better affordability and accessibility by providing classes and support that functions even with low internet bandwidth.
Vedantu has to incur a lot of expenses like any other offline operating firms. The company spends a large part of its revenue on the teachers, depending on their experience and their contribution of courses to the platform.
Including the teachers there are over 1300 employees working in the firm whose salaries need to be catered to. Vedantu thrives on advertisements and promotions for which they spend another large part of their revenue.
Revenue Stream of Vedantu
Vedantu has only a single revenue stream which is through their subscription model. It is safe to conclude that this start-up follows a B2C formula to connect to it the end users. B2C stands for Business to Consumer.
In the subscription model they charge students a certain amount of money depending on their class, course, duration of the course et cetera. These plans vary widely and hence his pocket friendly. You can choose one depending on your needs. So as to ensure credibility and assured quality they also have many demo classes.
The popularity of these subscriptions are accelerating over the years and in 2019 the number of subscriptions almost doubled than that of the previous year. Although they have a single revenue stream, they make sure that they make the best out of it.
Through their Unique Selling Proposition and marketing strategies, Vedantu have been successful in establishing itself as a reputed online learning platform. It has received various funding’s right from the pre-seed rounds.
Investors like Ramaswamy, Accel, Trifecta Capital Advisors, GGV capital, KB Global Platform Fund, Legend Capital et cetera are a few of them. Recently this Bangalore-based educational startup raised $100 million during its series D funding round from a US-based investment firm named Coatue.
After this, Vedantu is valued at $600 million from earlier $275 million as on February 2020. They have been able to raise nearly $200 million till now.
FAQ
What is the valuation of Vedantu?
The valuation of Vedantu is $600 million as of 2021.
Who is the founder of Vedantu?
Vamsi Krishna, Pulkit Jain, Anand Prakash, and Saurabh Saxena are the founders of Vedantu.
Who are the competitors of Vedantu?
Chegg, BYJU’S, Meritnation, Toppr, Wonderschool and Simplilearn are the competitors of Vedantu.
Small businesses are in fact the biggest assets of any nation, especially developing countries. The amount of employment that they generate and hence the ripple effect that it gives to multiple families at different levels helps in the upliftment of the economy as a whole in its self.
This is one of the major reasons why every government put in a lot of effort to boost small businesses. However, 2021 will not be a cakewalk for them due to various reasons. The pandemic and lockdown restrictions only add to their pile of problems.
Long gone are the times when businesses used to plan their events at the beginning of every business year and stick to them. Now due to the uncertainties regarding the intensity of waves, casualties and restrictions in place, it is extremely difficult for these firms to plan their activities to ensure a proper flow of revenue or interactions at least.
The fear of plans being shut down and the resulting economic loss prevents them from planning things at the site of slight improvement as well. This lack of planning further aggravates the uncertainty and adversely affects the companies
Lack of Physicalities
Considering the fact that Coronavirus situations are bleak and uncertain everywhere it is likely that the remote working will be continuing during a larger part of 2021 as well. Although it has proven to be a very effective method, it comes with its own disadvantages. Many small businesses find it difficult to run their business in the absence of off-line interactions especially due to the nature of the kind of business they do.
Technological Divide
The lack of adequate technology has rendered a lot of small businesses rather helpless. The continuous technological advances on the other side further push them back in the race. This technological divide costs small businesses a huge sum of money.
The pandemic further aggravated the situation by creating a circumstance wherein they had no other option but to update their technology. While this has also helped quite a number of small businesses to adopt newer technology which they would have never done otherwise, it has also led to the permanent shut down of many others due to their inability to cope up with this competition.
There is still continued neglect by the government with regard to helping small businesses to bridge this technological divide. And hence it will continue to be a huge challenge for them in 2021 as well.
As most of the economic activities came to a standstill since March 2020, many organisations had to cut down a lot of employees to sustain themselves without permanently shutting down.
Unlike most of the cases, this unemployment was detrimental to the smaller businesses in its self and not just to the employees. On one side they had no other option but to let go of even their most valuable workforces while on the other side it cost them a fortune by letting them go.
With the lack of a proper workforce and the continued financial constraints that these small businesses are facing, unemployment and the loss caused by it will continue to be a challenge for them.
Changing Market
Earlier the changes in trends and the strategies required to stay afloat and even prosper were more far fledged than now. But these days patterns and desires of consumer behaviour are changing so drastically that every business needs to adapt to newer marketing strategies to be active in the industry.
This can be clearly observed with regard to the larger changes that have come to the television industry wherein the patterns of viewership changed drastically post lockdown and almost all businesses had to change their marketing strategies to fit into this new change.
Such a highly dynamic market situation will stunt the growth of small businesses. Unless and until they evolve techniques to shift from one strategy to other in a cost-effective manner the current situation will continue to be hostile for them.
Work-Life Balance
The lack of work-life balance is one of the biggest challenges that is going to affect the productivity of small scale businesses. Earlier people were clearly able to divide their professional and personal life by giving proper time to both.
With the advent of work from home, people had no other option but to mix both of them together endlessly which makes them feel that there is no end to work and there is no time for themselves away. This makes them more burned out.
The varying restrictions across the globe have also affected every component of businesses. Small scale firms being not so established becomes the worst affected. Those companies whose materials are sourced from other states or countries get affected due to the restrictions that are in place there. This lack of uniformity staggers the activity of the firm as a whole.
When production gets affected it has a ripple effect on each and every aspect that follows; up to the delivery of the product to the customer. Improper production also means increased cost. Since the pandemic situation is not completely tackled, small businesses will continue to be at the risk of skewed productions and the confusion and stagnation that follows.
Conclusion
An analysis of all the challenges that small businesses are facing in 2021 brings one conclusion. All of the obstacles can be tackled with effective support from the stakeholders and the government. Addressing the issue of the technological divide is the most important thing to be done immediately.
As far as the restrictions are concerned governments can plan them in such a way that it does not hamper economic activities while controlling the extent of overall movement of the population. The businesses should also adapt to effective mechanisms wherein they can shift their strategies and tools as the business climate demands.
FAQ
What are the challenges of small business?
Finding the right talent, Tax complexity, Cash flow issues and lack of adequate technology are some of the challenges faced by small businesses.
What is one of the common difficulties faced by small business owners?
Lack of cash flow is one of the most common difficulty faced by small business owners.
How many employees should a small business have?
A small business should have 50 or fewer than 50 employees.
D’Mart is an Indian chain of hypermarkets established by DMart owner Radhakishan Damani on May 15, 2002. DMart has 214 stores in 72 cities across 11 states in India including Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Uttar Pradesh, Daman, and Punjab. So, let’s get started with the D’mart case study.
Mumbai headquartered DMart is owned and operated by Avenue Supermarts Ltd. (ASL). After the IPO posting (as Avenue Supermarts Ltd.), it made a record opening on the National Stock Exchange(NSE). DMart’s valuation rose to ₹39,988 crore after the close of the stock on 22 March 2017. This made DMart the 65th most significant Indian firm, followed by Britannia Industries, Marico, and Bank of Baroda. As of 21 November 2019, the market capitalization of DMart was around ₹114,000 crore, taking it on 33rd position of all recorded organizations on the Bombay Stock Exchange.
This article will shed insights on the supply chain model of DMart, its business model, marketing strategies, How DMart was started, key financial highlights of DMart, growth and future of DMart in India & more.
Avenue E-Commerce Limited, Avenue Food Plaza Private Limited
Parent Company
Avenue Supermarts Limited
Foundation of DMart & Why DMart is Successful?
Unlike Flipkart was established by two 25-year old youngsters toward the beginning of their professions, DMart’s establishing story couldn’t have been more extraordinary as DMart was established in 2002 by a then-45-year-old Radhakishan Damani at a moment that he’d effectively made his millions. When he established DMart, Damani was an incredible name in Indian securities exchanges. He had already got a few worth stocks that surpassed Gillette and HDFC Bank’s valuations.
Damani, who dropped out of a trade degree after the primary year, had first joined his dad’s metal rollers business, yet had begun putting resources into stocks when he was 32. He wound up getting to be one of the greatest stock financial specialists of the 90s, and current securities exchange bull Rakesh Jhunjhunwala believes him to be a tutor. In any case, after an effective financial exchange profession putting resources into shopper confronting organizations, Damani chose to begin his own.
On May 15, 2002, Damani established grocery store chain DMart and embraced techniques that were one of a kind to Indian retail. Up to that point, most retail chains rented their stores, yet DMart picked carefully do its exploration and possessed its very own stores by and large. That technique appears to have worked as DMart has never needed to close down a store since it’s opened in every one of the long periods of its activity.
While other retail players forayed into different classifications, including hardware and design, DMart stayed focussed on its center sustenance and basic food item business. What’s more, when other store chains are on the whole propelling their very own private brands in an offer to improve edges, DMart still stocks just outsider items.
It’s this moderate methodology that has worked for DMart. Other retail chains were picking development, yet for the initial 15 years, Dmart just worked its stores in 4 states. Indeed, even today, the company has 214 stores in 72 cities across 11 states. DMart had a benefit to-deals proportion of 3.7%.
In correlation, other significant Indian retailers don’t passage very also Future Group has a benefit to deals proportion of 0.21%, Spencer’s Retail had a negative benefit to deals proportion of – 8.9%, and Reliance Retailwhich works high-edge classifications including hardware and adornments and has more than double the incomes of DMart just dealt with a benefit to deals proportion of 1.6%.
DMart’s traditionalist yet beneficial approach is by all accounts demonstrated after its author. Damani is famously media-bashful and gives no meetings. He’s said to be modest, all things considered, also he doesn’t appear to talk much, yet is evidently a decent audience, engrossing a lot of data rapidly, and afterward following up on it.
Founder of DMart – Radhakishan Damani
And keeping in mind that Damani’s success has made him hugely rich because of the flood in DMart’s stock value, he’s currently worth $15.5 Billion (over Rs 116,200 Crores) regardless he wears a white shirt and white jeans to work, the dress he’s been wearing since the 80s. Despite everything, he goes for night strolls on Girgaum Chowpatty in Mumbai and unconditionally converses with the outsiders who approach him after his Dmart’s open achievement.
The ultimate start with DMart needs to make a picture among the majority of a rebate store that offers the vast majority of the items from over every single real brand. Fundamentally, a store that offers an incentive for cash! Presently, since individuals for the most part come to DMart on the grounds that they all what they need under one rooftop; consequently, DMart stores are operational in high rush hour gridlock territories and crosswise over three organizations including Hypermarkets that are spread crosswise over 30,000-35,000 sqft, Express group, that is spread more than 7,000-10,000 sqft and in conclusion, the SuperCenters, that are set up at more than 1 lakh sqft.
What’s more, Dmart’s intended interest group being the center pay gathering, it uses Discount offers as a special instrument for baiting the clients and expanding deals too. Generally speaking – Dmart’s prosperity is centered around three things: Customers, Vendors, and Employees! Take Customers. Since Dmart is focusing on center salary family units, every one of their stores is in, or near, neighborhoods and not in shopping centers.
Their thought isn’t to meet each customer’s need like different contenders, yet rather, Dmart tries to meet most normal shopper needs, while offering some benefit for their cash. Furthermore, since, 90% of these stores are possessed legitimately by Dmart, they don’t need to stress over month-to-month rentals and their ascent, or migration chance. Moreover, this is helping them manufacture resources on their books.
This likewise keeps Dmart all around promoted and obligation light, while its tasks produce extra money. All the cash that is spared utilizing this procedure is at the end offered back to the clients as limits! Sellers! Seller connections are the second mainstay of their model. Since he originates from a dealer foundation, his seller connections have been his greatest quality.
Organization Structure of DMart
The FMCG business has an installment standard of 12-21 days, however, Dmart pays its sellers on the eleventh day itself. This causes him to remain in the great books of the merchants and dodges stockouts. Furthermore, since Dmart purchases in mass and pays its sellers well in time, they additionally get the chance to win higher edges. Essentially, their procedure is to “Get it low, Stack it high and sell it shabby”!Workers!This is the third mainstay of their model. DMart offers great cash, adaptability, strengthening, and loose and effective work culture.
They even proceed to employ tenth standard dropouts with the correct frame of mind and duty. They incline toward procuring crude ability and afterward put intensely in preparing, to shape them according to their prerequisite. Representatives are simply educated once concerning the worth framework and arrangements at D-Mart and after that are enabled by giving them the opportunity to work without someone continually investigating their shoulders. There is outright lucidity on what should be accomplished, yet you don’t have to dread targets.
DMart – Business Model & Supply chain Model
The business model lies at the core of a successful company. A good, foolproof business model not only acts as a pillar for a business to grow but also helps it prosper in a comparatively less amount of time.
DMart, often termed as the Walmart of India, has been quite successful in its business so far, and a major credit goes to the robust business model it has developed over the years.
The chain of DMart operates on a B2C (Business to Consumer) model in which the company sells its goods from the manufacturer’s house to that of the end-user. DMart sells a wide range of products ranging from home care and personal care to grocery and staples, daily essentials, home appliances, footwear, luggage, fruits and vegetables, men’s and women’s apparel, and more. These goods, as we all know, fulfill our everyday needs, and hence, have a significant demand throughout the year. Therefore, they wipe out the possibilities of fluctuations due to high demand and helps the brand get the stability that many others dream about.
DMart is recognized for its thrifty cost structure that has made the company keep its losses under control. Here are some prominent characteristics of DMart’s business model:
Low operational costs and fewer expenses
DMart believes in the effective utilization of the spaces instead of adorning its interiors and shelves fancifully. The company works in launching more and more products in fewer spaces for the customers to choose from, which can also be summed up as a low-interior-cost concept to reduce the operational costs. Besides, when you walk into a DMart store you would also find lesser billing counters, which further works in reducing employee costs.
Ownership model
Damani, the company’s founder, had decided quite early in the game to adopt a store-ownership model. This played a major part in making DMart a low or no debt company, thereby strengthening it financially. Furthermore, the company doesn’t accrue any rental costs, which helps DMart open more stores and gain high positive cash flows. The company owns around 80% of all the stores that it is credited for.
Affordable rates of products
It is usually observed that in the FMCG sector, the retailers pay off the credit to their vendors within a period of 3 weeks whereas DMart pays off their credit within a week. This helps the company benefit in many ways including the huge discounts that they get from the vendors, which in turn is entirely rewarding for the end-users too.
Affordable rate of products with tons of discounts on various products leads to increasing the overall footfall and spike up the sales volume. This increasing sale also helps the manufacturers to rely on the brand and bring in more stocks for the rising demand, which extends another volume discount from the manufacturers’ end.
DMart levies a ‘Slotting Fee’. As the term might indicate, it is a fee that DMart charges from the manufacturers to store their products on the shelves of DMart stores, which is also sometimes referred to as an entry fee. DMart, on the other hand, with its appealing marketing strategies and attractive discounts ensures that the products are sold out as quickly as possible.
Sales channel
As discussed earlier, DMart opts for a B2C (Business to Consumer) business model, where the company sells the products directly from manufacturers to the end-consumer. The company purchases its goods in bulk and this eliminates the middleman (distributors and wholesalers) from the chain, which helps in passing their commissions as discounts to the consumers.
Target customers
DMart’s target customers are the middle-class groups and lower-middle-class groups, those who often want to buy low-cost goods that come with hefty discounts but are of good quality. This makes DMart attract an extensive customer base than many other retailers.
Regional Goods
A land of diversity, India nurtures an array of region-specific goods. This gave DMart an amazing opportunity to capture the niche markets with products specific to different regions. DMart researches the popular local brands of a particular region and makes them available, thereby avoiding people’s need to go to the local Kirana stores. This has helped DMart to gain more market share.
Operating strategy
Contrary to their peers and rivals, DMart has always stuck to their own stores and deliberately avoided the malls, which might have otherwise risked the overall sales of the company and increased the expenditure.
Besides, the company is also not very comfortable expanding geographically. The company had its stores only in 4 Indian states until 2014, which only expanded in recent years to 11 states. One another thing is that DMart attracts low marketing costs because the main marketing strategy of DMart is that the company is recognized among its end-users via “word of mouth”.
DMart is a company that doesn’t believe in marketing aggressively unlike many of its competitors. The company maintains a marketing mix where its Unique Selling Position (USP) lies in offering the products at less than Maximum Retail Price (MRP). This is the most important factor that contributes to keeping the company ahead of its peers.
DMart is a company that takes pride in the laudable CSR initiatives that it takes. Over the years, the company has grown to be a huge support for its employees and other communities alike with the help of its socially responsible business practices. This undoubtedly spreads positive vibes all around.
In its “Better School, Bright Futures!” campaign, DMart has launched an amazing program in various schools that are there in and around Mumbai. The sole aim of which helps students understand things better and create an ecosystem that allows them to benefit from better education, mentoring research facilities, and new networking opportunities.
Embracing Low-Cost Advertising Mediums for Promotion
DMart looks up to visual and print mediums to promote its brand name and products. The print medium of advertising revolves around newspaper ads with information about their products, discounts, sales, and coupons.
On the other hand, the visual component of advertisement comprises the banners, flexes, and hoardings that are put to display in locations near the stores to mention the product-specific offers, seasonal discounts, and other freebies that the company offers from time to time.
Digital Presence of DMart
DMart was founded back in 2002 and boasts of an enviable offline presence but when it comes to digital presence it bothered little about it to be true. However, the company has taken a few steps to place it ahead on the digital front. These steps include the installation of a chatbot on Facebook Messenger and the launch DMart Ready.
As of now, DMart uses Facebook as a medium for information, which the brand uses to inform and clear customers’ doubts. The company is yet to explore Instagram and Twitter fully, the proper utilization in the upcoming times will surely help the company set itself more stable in the future.
DMart marketing
Factors Affecting the Profit of DMart
Damani is a calm man who stays under the radar, yet his triumphant characteristics are too obvious to possibly be missed. The following are his ways to deal with a business that drove him to thundering achievement:
Design of Logo
Like Warren Buffett, Damani too has been a worth speculator who might take a shrewd perspective on the long haul. When he turned into a business person, he held a similar methodology and manufactured DMart without depending on any speedy alternate ways. For example, he never rents the property for his stores however gets it. In the long haul, it spares him from a major rental outgo. This was a key factor behind the productivity of DMart.
What Is Trifle That’s Important
Damani began little and did not rush to grow. Low scale gave him superior control of the store network and enabled him to concentrate on benefits directly from the earliest starting point. In the 18 years of its reality, D Mart has turned a benefit every year.
Evaluation Of People
Damani started with purchasing an establishment of Apna Bazar. That was the point at which he started fabricating individual relations with merchants and providers. He esteems both and they never let him down. The stores never leave stock.
Selling As Cheap
Damani realized what he was doing: offering individuals buyer results of everyday use at substantial limits. That turned into his sole objective. One of his strategies was to pay his providers and sellers inside days rather than weeks which was the business standard. They gave the merchandise at a less expensive rate to him in lieu of early installment. He passed on the money-saving advantages to his clients, which guaranteed steady success.
Go Steady And Slow
In spite of the fact that D-Mart began 18 years prior, despite everything it has 119 stores in a couple of states, a modest number contrasted with those claimed by Ambani and Biyani. Rather than fast development, Damani received a moderate pace which gave him his emphasis on productivity. That is the reason D-Mart has not closed a solitary store since it began and creates higher per-store incomes than the stores of Ambani or Biyani.
Neglect the Herd
Damani had learned and drilled with the progress the craft of not following the crowd while he was a financial specialist. As a business person, he has a similar methodology. There have been such a large number of brand new thoughts in retail, for example, different online business patterns, which he didn’t give any significance. Designs or patterns can’t impact the man who realizes what he needs and how he can get it.
Available Locally
Despite the fact that DMart is the best basic food item retail chain in the nation, Damani has restricted it towards the western states. One reason is his dependence on neighborhood supplies rather than expand supply chains.
A Job Has Conversation
Damani stays under the radar which bears him all-out devotion to his work. His moderate and quiet ascent in a discouraged division is a sign of his resolute spotlight on work. He has once in a while given a meeting to a TV channel or a paper.
Avenue Supermarts running the DMart chain of stores in the nation revealed a 21.4 % year-on-year net benefit development and a 32.1 % year-on-year income development for the quarter finished March 31, 2019, (Q4) at Rs 203 crore and Rs 5,033 crore, separately.
For the three months finished December 31, 2018, DMart had announced its slowest net benefit development in eight quarters at 2.1 % as it pondered developing challenges in basic food item retail.
Second from last quarter income development came in at 33 % (year-on-year), which is likewise a merry quarter, said experts, suggesting the organization had figured out how to keep up its pace of development as far as the top line in Q4 in the midst of focused power. The numbers were comprehensively in accordance with Street gauges. A survey by investigators of Bloomberg had pegged net benefit at Rs 211 crore and income at Rs 5,122 crore for the quarter under audit.
Income before intrigue, duty, deterioration, and amortization (Ebitda) for Q4 was at Rs 377 crore, up 27.9 % throughout the year-prior period and again extensively in accordance with Street assessments of Rs 395 crore. Yet, Ebitda edges contracted for the third straight quarter, however, the drop was negligible at 20 premise focuses to 7.5 % from a year sooner.
This is additionally the most reduced as far as Ebitda edges for DMart in 75%. While the organization did not indicate same-store deals development for Q4, examiners said it was somewhere in the range of 15 and 18 % for the period under audit.
Same-store deals development is the development of a similar deal of stores for one year or more. For the entire year finished March 31, 2019, (FY19), Neville Noronha, overseeing executive (MD) and (CEO), Avenue Supermarts, said same-store deals development was 17.8 % even as income grew 32 % year-on-year to Rs 19,916 crore and net benefit went up 19 % from a year sooner to Rs 936 crore.
The FY19 same-store deals development was higher than the 14.2 % revealed for FY18, division examiners stated, as the firm drove higher deals throughput at its stores. Income from deals per square feet at DMart stores remained at Rs 35,647 for FY19 against Rs 32,719 in FY18, an ascent of about 9 %. The organization additionally included 21 stores in FY19, of which 12 were included in Q4 alone, taking the aggregate to 176 for the monetary year.
Avenue Supermarts runs the DMart grocery store chain of stores. If in any case, the nation experiences a crisis, financial specialists question whether the organization shows enough strength during these intense occasions. But examiners in a note from Systematix Shares and Stocks (India) Ltd. said, ” The continuous crisis in utilization and higher aggressive force in staple retail should confine development in determining deals per square feet to 7% in the financial year 2020 from 13% in FY19.”
While speculators will intently follow how that works out in the coming quarters, Avenue Supermarts’ income development of almost 27% in the June quarter is nothing to get surprised at. Obviously, it should likewise be referenced at the same time that high development rates are a basic for the DMart share, which is one of the most costly stocks in the nation.
It currently exchanges at amazing multiple times evaluated income for FY20. FY20 has begun an idealistic note for the organization. The development in EBITDA (income before premium, assessment, deterioration, and amortization) edge in the June quarter will mitigate financial specialists’ uneasiness about weights on productivity somewhat.
FAQs
What is Dmart?
Founded in 2002, Dmart is an Indian retail corporation that is designed to stand as a one-stop supermarket chain that brings a wide range of products ranging from basic home products, personal products and more.
Where is the Dmart headquarters?
DMart headquarters is in Mumbai, Maharashtra.
Who founded Dmart?
Radhakishan Damani and his family founded Dmart in 2002.
Where was the first branch of D mart?
The first branch of D mart is in Powai’s Hiranandani Gardens.
What is the vision and mission of Dmart?
The mission and vision of DMart is “to provide the best possible value for consumers so that every penny spends on shopping gives them more value for money than they would get anywhere else,” as per the vision and mission statement of Dmart.
How many D mart stores in India are there in total?
Currently, the total number of D mart stores in India were reported to be more than 234 in number, spread across more than 11 states in India, as per February 2022’s reports.
Coworking space is a business for some people and a home to many startups!
Mr. Kushal Bhargava, the Co-Founder of MyBranch sheds some light on the Co-working Industry in India during pandemic times and also shares the interesting startup story of MyBranch in this article. From finding locations, to assisting with documentation, to handling essentials and daily administration, MyBranch takes care of it all! In terms of managing and maintaining workspaces, MyBranch serves as a one-stop shop for all business needs.
To begin, a little background information about Mr. Kushal – He is a qualified Chartered Accountant and holds a master’s in commerce degree from Mumbai University. He is also an active member of the Student’s Committee of WIRC (Western India Regional Chapter) of ICAI. He started managing a pan-India BFSI business after completing his education. An innovative and strategic thinker, Kushal sets the vision for MyBranch and supports its operations team with delivery. He also assists in developing the business and forges ties with companies. In addition, he oversees MyBranch’s ancillary businesses – Meeting Rooms, Virtual Offices, and Managed Offices.
1.What were the major challenges in terms of co-working operations during and post lockdown?
The entire country came to a standstill during the lockdown. We were no different, even though the existing clientele at the time did not decline, the offices were left vacant during the entire lockdown period. Also, when the lockdown was lifted, several restrictions were in place, most of our clients who had expansion plans became reluctant and took a step back.
2. How did MyBranch tackle it efficiently? What were the measures taken?
Not just our country, Covid has impacted the entire world at an unprecedented level. The pandemic laid an impact on business and overall operations up to a great extent. However, still, MyBranch was quick to respond in a strategic manner. During the lockdown, we gave utmost importance to brand building activities because it was supposed to be managed from the ease of our homes. We also planned supporting activities and drills for our customers. We were fortunate to not lose even a single enterprise client due to Lockdown. We maintained constant touch with all our clients and kept them informed about the new and updated office protocol. Also, we strictly followed all Covid-19 guidelines at our offices across India, as a result almost 80% of our clients started working from our offices just within two months of unlocking.
MyBranch Coworking Space
3. How was the company’s start-up journey in context to growth, team building, and customer satisfaction?
We believe, for any startup idea to become successful, the most important thing is its uniqueness and scalability. We utilized the lockdown for focusing on brand-building activities and spreading awareness about MyBranch. And even after we reopened, we ensured all sanitization and fumigation standards are met and our offices are completely safe for the guest employees.
We believe in the phenomenon of ‘Happy customers bring more business’, hence we consider our customers foremost.
MyBranch Logo
4. How do you see the co-working industry pacing ahead of a pandemic? What are the key points the young entrepreneurs, or start-ups in the industry, should keep in mind?
There is no denying that just like any other business, this industry too, has its share of pros and cons. But in the bigger picture, we think the co-working industry is going to boom because numerous offices and organizations have opted for work from home as a permanent way of working and are now seeking small office spaces at different locations instead of consolidated working space. Young entrepreneurs who aspire to enter into this business should most importantly focus on the conceptualization of their ideas. They should lay emphasis on offers leading to maximum satisfaction for the customers, in return, this can get a lot of recognition and references for future deals.
5. What were the learnings you got from your journey as an entrepreneur?
As an entrepreneur, one of the biggest learning we got was — bite only as much as you can chew. It is very important to only cater to as much demand as you can deliver effectively and efficiently. We believe in maintaining quality even if means lesser quantity. As an entrepreneur, you are responsible for all things from top to bottom, and for a business to become successful it is really important to manage all aspects efficaciously. A business can become fruitful with a multi-dimensional approach and a will to never give up.
6. Do you want to share an anecdote or inspirational story that you think would be enriching for our readers.
To us, ours is an inspirational story because contrary to what we thought, MyBranch was able to increase revenue by 8% for this financial year despite 2020-21 being such an unfortunate year in regard to business and humanity as well. This has inspired us to work towards setting up 100 branches across India.
Probably the only growing food company with over 44,000 restaurants spread out in over 111 countries is Subway and it is also one of the fastest-growing franchises in the world. Subway, a food chain specializing in submarine sandwiches. It became the largest fast-food chain in the US in 2002.
About Subway
The founder of Subway, Fred DeLuca was out to fulfill his dream of becoming a medical doctor. He was in the need of money and searched if someone could help pay for his education, a family friend suggested he should open up a submarine sandwich shop. Dr. Peter Buck, Ph.D. in Physics, lent him a loan of $1,000 to become DeLuca’s business partner. They opened up a restaurant called Pete’s Super Submarines as submarine sandwiches were the only specialty. They even planned and set a goal of opening 32 stores in just 10 years.
The story of Subway started in 1965 when Fred DeLuca borrowed $1,000 from Peter Buck and opened his first restaurant in Bridgeport, Connecticut. In a passage of one year, they formed another company to oversee the expansion of their restaurant named Doctor’s Associates, a name derived from DeLuca’s desire to make enough from the restaurant to fund his medical tuition. Over the course of time, the two changed the name of their restaurant chain to Subway in 1968. The Headquarters are in Milford, Connecticut.
Fred DeLuca, the funder of Subway
After Subway’s establishment, it didn’t take much time for it to grow and anticipate incredible success. The first Subway was opened in California in 1978, and by the year 1984, it went international by opening up a franchise in Bahrain.
Fred served as the company’s CEO till 2015. He suffered from an illness for two years, DeLuca finally turned his position over to a person called Suzanne Greco before passing away a few months later. Despite the death of the founder of Subway, it continued to see unprecedented success.
There are 26,744 Subway locations in the US and it actually surpasses the number of McDonald’s locations in the country, making Subway having the leading number of restaurants in the United States. Since then from 2007, Subway has continued to rank high in Entrepreneur’s Top 500 Franchises list.
The popularity of the Subway logo is majorly high because of the logo’s staying power and consistency. Unlike many companies who are unfaithful to the logos they started out with and changed it completely, Subway’s logo has remained mostly the same from the very start.
Subway had created a monogram out of those arrows present in the logo and continues to use that in much of the marketing material. The Subway logo represents the entry and exit of Subway. Customers can see the monogram everywhere from Subway’s commercials to the paper in which they wrap their sandwiches.
Altogether, it has managed to establish a widely recognizable logo that conveys all of the messages to its customers. Subway has managed to get it right, which says they have put a lot of thought and effort into the logo so they are able to keep it throughout the lifetime of the company.
Amazing facts about Subway
After opening the food chain, Pete sold just over 310 submarine sandwiches and charged no more than 70 cents for them.
Rather than going with a less time-consuming process of machine-picking the black olives that other brands use, Subway hand-picks every single black olive to use in their sandwich,
The yummy 6-inch, lunchtime classic was initially called the Snak when it was added to the massive menu in 1977.
There is a combined total of 4,500 Subway stores across the globe. It had stores in over 110 countries in 2017, with the most stores being in the U.K. and Brazil.
Every Subway store uses on an average 16 acres of the leafy green lettuce that we love in our sandwiches every year.
An American decided to rob a Subway store and then thought to best use the stolen money was to buy a Potbelly sandwich at the same place. Later, he was arrested.
According to a former employee, when it comes to the customer’s choice of filling, the meatballs or roast beef are the worst items you could pick due to the amount of time they have been laying around.
During the construction of the first World Trade Center, a Subway store decided to open up a store elevated high above the New York Skyline to feed hungry construction workers.
Number of Subway Stores around the globe
Growth of Subway
Over the years, Subway had struggled to maintain its position in the sandwich arena and retain its establishment in the food market.
In 1974, Subway had started its business through a franchise business model. Exact eight years later, the company with a lot of developments and experience had grown from 16 stores up to 200 stores. Later by 1990 Subway was at around 5,144 locations, with a goal to reach 8,000 stores by 1995. Growing faith of customers in Subway strengthened the company to reach 10,000 stores by 1995.
Subway competed with McDonald’s and surpassed it in the year 2002, becoming the highest number of outlets. In the year 2013, there was an annual revenue of $9 billion from the outlets around the countries. Apparently, the Subway brand has more than 44800 outlets now in more than 114 countries.
Subway in India
After the initial introduction and evolution of this food chain, the focus shifts on India operations. Indian market is a large, younger population that has a high liking towards anything that is ‘made in foreign’ which symbolizes being modern.
Subway is strengthening its delivery network in India by partnering with prominent food aggregators. They are also looking forward to facilitating the customer and introducing mobile ordering for the Indian market.
The popular American restaurant chain, Subway, which has successfully let itself spread across the globe, is also making its place in India. Global sandwich restaurant, food chain Subway has launched its 600th franchise restaurant in India at Bharuch, Gujarat.
The Subway franchise is easy and cheap to set up in a country like India and there is a huge number of Subway stores too. Currently, the American food chain has about 660 restaurants in India, which is the eighth largest market for it in terms of the number of restaurants globally.
Subway’s Indian subsidiary is to be acquired by Reliance Retail, as of August 4, 2021. The company reportedly holds the third-largest share with 6% of the Indian QSR market that is valued presently at Rs 18,800 crore, with Domino’s and McDonald’s, being the current market leaders with 21% and 11% shares respectively.
Mukesh Ambani-led Reliance Industries Limited is looking like it is on an acquisition spree. The company now seems to target the QSR market after tapping in on several sectors including grocery, e-pharmacy, edtech, music, furnishings, and more.
The acquisition deal of Subway India is alleged to be within $200-250 million.
The Bottom Line
Subway is a delicious combination of fresh and healthy menu items, which includes sandwiches and other bakery products, with the speed and convenience of fast food. The restaurant chain Subway has exploded into an international success, and its Indian subsidiary had also been quite revered across the nation. However, the current acquisition deal with Reliance Retail might be putting a stop to the search of Subway Inc for collaboration with a single partner for expanding the business operations but the deal might also usher a bright future ahead.
FAQ
How many subways are there in India?
As of now, there were 660 Subway restaurants in India.
Social media has become crucial for everyone. People of different age groups, teenagers and adults have social media accounts and they use them for various purposes. Social media is basically technologies that facilitate the creation and sharing of information, photos, ideas, videos, and so on.
These days, there are a lot of different social media platforms and the emergence of advanced platforms led to the Orkut downfall. Social media can help share details with the public and also meet other people who are available on the platform. It doesn’t stop there. Social media is now used for marketing and it has proved to be one of the best sources of marketing. The use of social media has been increasing since it came into existence. Orkut was one of the very earliest social media platforms. Orkut founder is a Turkish engineer named Orkut Büyükkökten.
Orkut was Google’s first step towards social media and it was extremely successful. Orkut was launched in the year 2004 and had a lot of competitors like Yahoo messenger, skype, etc. Orkut could very easily get ahead of all the competitors. It could make it through with 3 times more users than Facebook. All these were in the Orkut’s initial stages. Even India and Brazil had a lot of users for Orkut. Keep reading to find out about the rise and fall of Orkut.
the Orkut profile allowed the user to add friends and message them privately
sending scraps to people (which was visible to everyone)
posting images and videos
option of liking each other activity
Orkut games and community polls were a popular feature
a unique Orkut feature is customizing themes
Rating your friends and becoming each other’s fans
The differences between Orkut and other Social Media Platforms
When Orkut started it was just like other social media platforms but with some differences. These differences might have been the reason for their success initially. It had features wherein one can create an account, manage a profile, and so on. Orkut had one good feature that other platforms did not have. There was an option for ‘crush list’ and we can customize themes on this platform. This was not available on any other platform. Other than this, the working of Orkut was similar to the working of other platforms. The Orkut login and interface was quite easy but it lacked other features.
In the year 2014, Orkut was shut down. So why did Orkut fail? It was because it did not have a very good user base and most users started shifting to other social media platforms from Orkut. There were a lot of reasons for this. this, Google was closed to shut down Orkut. The main reason for this was the emergence of other social media platforms that were in most ways better than Orkut. Here, let us analyze the reasons for Orkut’s failure.
One main reason for the failure of Orkut was the competitors growing much faster.
1. Privacy
People love posting on social media and maintaining a profile but at the same time, they expect some privacy. One of the biggest reasons why Orkut was closed, was because everyone could see anyone’s profile and also personal information and contact details. You could stop someone from seeing your profile only if you put them on your block list. Facebook had a few privacy settings and options to show the profile and other details only to people who are added to your friends’ list. This made a few users switch to Facebook, one of Orkut’s leading competitors as it looked much safer than Orkut.
2. Speed
The website was initially fast and worked perfectly well but later, after a few redesigns, it became very slow and the loading took a lot of time. Also, with the number of users increasing, it became a bigger issue. The existing server was not enough to handle so many users and hence the uses had to wait for a long time to reach the landing page. Also, when Orkut was in the initial stage, the average internet speed was quite low.
3. Not Very User-friendly
Initially, Orkut was very easy to use and this attracted a lot of users. The redesigns were very complicated and most of the additions were even irrelevant to the concept of Orkut. Facebook and other social media using were found to be easier than this one. Users see social media as a source for entertainment, fun, and relaxation and hence they expect it to be very simple. Orkut shut down reason being that people started deleting their accounts on the platform.
As Orkut started becoming famous, mobiles and other smaller devices started becoming popular and most users preferred using the same. With this, Orkut could not cope with the changes. Orkut found it very difficult while Facebook catered to customer needs. Also, since it was slow, it was not very comfortable for the users to use it on mobile devices.
5. Google Diverted Its Attention Towards Google+
Google being very successful and developing, started focusing on other projects that were unique like YouTube. With the introduction of Google+, which is also a social media platform that had more features, Google wasn’t giving enough importance to Orkut.
6. Users Preferred Facebook
Customers and users found that Facebook was better for them than Orkut. Facebook had the ability to update quickly to users’ needs. They were able to find out exactly what the user needs and update the website accordingly. Adding the privacy feature was one of the best decisions that Facebook had taken. If only Orkut had tried this first, they would have been in the market for a little while.
7. Not Business Friendly
Orkut was limited to personal interactions, while Facebook became the platform for online marketing and advertisements. Facebook also had many additional features such as games, liking posts and sharing which are crucial for marketing whereas Orkut lacked those features.
With this growing trend, it is very important for companies to work on capturing customers and work more towards retaining customers. Orkut failed in all of this. Market trends and customer psychologies keep changing and Facebook and other social media sites were changing according to it but Orkut failed to do the same and instead they made it more complicated.
Also, Google, on knowing all this, could have worked more on Orkut and made it better. Google also proved to be successful in other ways. From Orkut, there is one lesson that startups and other companies can learn. Coping with competitors is extremely important. Orkut, being launched by Google, could do it but still failed to do so.
Also, all customers expect a lot of things from companies and it is the company’s duty to fulfil all of it or at least some of it. Orkut failed in that too. Very small mistakes have led to the shutting down of a company that was started by Google. After all, little drops of water make a mighty ocean and hence little mistakes that companies do can put them in a very bad place.
Frequently Asked Questions
Is Orkut still working?
Shutdown. On June 30, 2014, Google announced that Orkut would be shutting down completely on September 30, 2014. Users could export their photo albums before the final shutdown date. Orkut profiles, scraps, testimonials, and community posts could be exported until September 2016.
Who invented Orkut?
Orkut Büyükkökten. Named after its creator Orkut Büyükkökten, a Turkish engineer, the social media platform enjoyed unparalleled popularity in Brazil and India, especially among the 20-somethings. Today, they remember Orkut as something they ‘did’ before Facebook.
Why did Orkut fail and Facebook succeed?
Facebook was the main reason behind Orkut’s failure. Though redesigned several times Orkut was not able to retain its user base. Facebook kept it as simple as it could for the user so Orkut’s loss was Facebook’s gain. Orkut never tried really to take up to revive itself.
Is Orkut coming back?
Orkut might come back but rename as Hello
Why did Orkut shut down?
Orkut was one of the most visited sites in countries like India and Brasil in 2008. However, it had to be shut down due to the growing legal issues.
Orkut vs Facebook, which is better?
Facebook is better than Orkut because it has more security, while Orkut has less chance of malware.
When did Orkut shut down?
Orkut was shut down by Google in 2014.
What happened to Orkut?
Many other social media sites became more popular than Orkut so the users shifted to them.
Which countries are the biggest users of Orkut?
Orkut is popular in countries such as Brazil, Paraguay, India, Pakistan, Portugal.
Who is the owner of Orkut?
Google is the owner of Orkut, while the Orkut founder is Orkut Büyükkökten
Orkut or Facebook which came first?
Orkut came out in 2004 just ten days before Facebook was launched.
The pandemic has shown us what digitization is capable of! Our education system has been highly affected by the pandemic. The whole education system has gone from desk to desktop. This has brought a positive factor as well.
There have been tons of education-based applications launched to serve the students in an effective manner. India has entirely moved from the conventional classroom method to the virtual technical classroom. And a great asset to this has been the very prominent UpGrad, which provides higher education, digitally.
UpGrad is a pretty fascinating application and a very successful education-based company. Through this article, we will discuss the business model of UpGrad in order to have a better understanding towards the Ed-tech companies. Moreover, we discuss how this Ed-tech company makes money and also, how it targets its audience. Let’s get started!
UpGrad is known as India’s largest company that provides higher education in many fields, founded in 2015. UpGrad offers higher education through various programs in Technology, Law, Data Science, and Management. There aren’t any specifications for the students. From students to professionals, anyone can sign up for these programs.
The most fascinating thing about UpGrad is that it offers courses in collaboration with the top universities such as MICA, IIT Madras, Jindal Global Law School, Liverpool John Moores University, NMIMS Global Access, Duke CE, and many others.
UpGrad has built a very strong upholding in the Indian education system and it’s all set to achieve definite career success for everyone from the global working environment. UpGrad offers an 85% completion rate for programs, industry-relevant curriculum, placement support, result-based learning opportunities, and significant mentorship to its members.
On a global scale, UpGrad has over 40,000 paid active users right now along with an influence on over a million. In fact, UpGrad is the first-ever company to have a well-recognized PG Diploma in Data Science course from the National Association of Software and Services Companies (NASSCOM) and NOS.
Moreover, UpGrad has been honored with the “Best Education Brands” award from the Economic Times in 2018.
Where does UpGrad operate?
The co-founder of UpGrad, Phalgun Kompalli has done incredible work in the sector of higher education and learning through technology with his award-winning company, UpGrad. The company operates in many countries including India, Africa, the United States, Southeast Asia, and Brazil.
UpGrad offers specific online courses and rewards the learners with a well-recognized certificate in many fields such as Machine Learning, Data Science, Digital Marketing, Software Development, product management, and many others.
Furthermore, it provides unique experiences to its customers through the contents developed by academia and industry experts. Also, effective mentorship and career support.
Target Audience of UpGrad
UpGrad majorly targets people above the age of 22 or 23. Its targeting is quite similar to that of Simplilearn company. UpGrad focuses on the working people in the age group of 23-45, who are eager to learn and improve their skills through online channels.
Business Model of upGrad
UpGrad runs on a pretty effective business model which holds a two-way approach between the students and the educators in order to form a bright future together. In other words, UpGrad acts as the bridge between the educational institutions and the candidates to gain the best knowledge and proficiency. The educational institutions offer their program courses in different subjects through the UpGrad app as well as the website at reasonable prices.
The candidates who are interested in the offered courses, register themselves on UpGrad by filling out the essential eligibility criteria fixed by the institution. After this, the candidate pays the given fees for the course. UpGrad offers two options for submitting the fees: complete fees at once or installment option.
Besides, UpGrad also employs professional guides who would enroll the professional candidates in their courses. This forms a two-way business approach that helps UpGrad in completing its ultimate goals and brings out a convenient way for companies to hire potential people. As we discussed the business model of UpGrad, let’s have a look at what’s unique about this business model.
What is Unique about the business model of UpGrad?
The most unique thing about UpGrad’s business model is that it isn’t any other ed-tech company with educational videos and content. UpGrad is the leading platform that provides the expertise and experience of entrepreneurs as well as professionals. UpGrad offers tons of student-based services and always brings out remarkable results.
UpGrad is working towards more than 15 new courses that would be included in the programs and are all set to expand its locations globally.
UpGrad offers programs at some very reasonable prices as it reflects their commitment towards the education of candidates. Around 50% of revenue is collected from the candidates after completing their program.
For the enterprise business deals, UpGrad receives money from the companies who send their employees for training to UpGrad.
Conclusion
From this article, we got a better understanding of the working strategy of UpGrad. As we discussed the business model of UpGrad, we built the market perspective of the Ed-tech company.
UpGrad carries a strong and effective business model and it is clearly reflected through its results and revenues. But most importantly, the company focuses on the education of its candidates and does not compromise anything for that.
UpGrad follows an effective marketing strategy that always results in various beneficial deals.
FAQ
Who is the owner of upGrad?
Ronnie Screwvala is the Co Founder and Chairman of upGrad.
Is upGrad an Indian company?
Yes, upGrad is an Indian higher education company founded by Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli, and, Ravijot Chugh in 2015.
What is the revenue of UpGrad?
The revenue of upGrad in 2021 was INR 1200 crores.
