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  • IndiaMART Business Model | How IndiaMART Makes Money

    Established in 1996, IndiaMART is a leading online marketplace in India that connects buyers and suppliers, facilitating B2B transactions. It has grown to become one of the largest platforms in the country, offering a user-friendly website and mobile app featuring a wide array of products and services, from industrial machinery to consumer goods. With its headquarters in Noida, IndiaMART also has branch offices in major cities across India, including Mumbai, Bengaluru, and Delhi, enhancing its nationwide reach.

    This article will examine IndiaMART’s business model, exploring how it makes money and showcasing what makes it stand out in the B2B marketplace.

    About IndiaMART
    IndiaMART Business Model
    How IndiaMART Makes Money – Revenue Model of IndiaMART
    IndiaMART Unique Selling Proposition
    IndiaMART SWOT Analysis

    About IndiaMART

    IndiaMART Office
    IndiaMART Office

    Founded in 1996 by Dinesh Agarwal and Brijesh Agrawal, IndiaMART has become India’s leading online B2B marketplace, revolutionizing business connections and transactions. Initially created to connect Indian manufacturers with global buyers, it started as a simple directory for the Delhi NCR region when internet use in India was just 15,000 users. By 1999, IndiaMART had grown to over 1,000 listings.

    During the late 1990s dot-com boom, the platform adapted to support direct buyer-seller transactions and emphasized exports. Offering web page creation for SMEs and later adding lead generation and premium listings, IndiaMART adopted a subscription-based revenue model. Today, it connects 8 million suppliers with 198 million buyers, using AI and machine learning to enhance matchmaking and user experience.

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    IndiaMART Business Model

    IndiaMART Business Models
    IndiaMART Business Model

    IndiaMART offers both free and paid services, especially for SMEs. SMEs can register for free and are added to their industry list, with a free website on IndiaMART. Similar to platforms like YouTube and Spotify, users can pay to upgrade their profiles. Premium memberships offer more business options, generating revenue through subscription fees. 

    IndiaMART encountered major challenges during economic downturns, such as the 2007-2009 Global Financial Crisis, which caused a decline in exports. To adapt, the company shifted its focus to the domestic B2B market, strengthening its position within India.

    IndiaMART hosts a vast database of sellers across various industries, making it a key source for diverse products and services.IndiaMART also offers powerful marketing tools, including email marketing, SEO strategies, and social media marketing, to boost sellers’ outreach and engagement. Partnerships with financial institutions, payment gateways, and media companies strengthen IndiaMART’s services and reliability. 

    How IndiaMART Makes Money – Revenue Model of IndiaMART

    IndiaMART Financials - IndiaMART Business Model Explained
    IndiaMART Financials

    IndiaMART employs a multi-faceted revenue model centered on connecting buyers and suppliers in the B2B marketplace.

    Subscription Fees

    One of the primary streams is subscription fees, where suppliers pay for premium memberships that enhance their visibility on the platform. These subscriptions, available on a monthly or annual basis, offer various benefits, including improved search rankings and access to additional features.

    Pay-Per-Lead

    Additionally, IndiaMART operates a pay-per-lead model, allowing suppliers to purchase leads generated from buyer inquiries, which connects them directly with potential customers actively seeking their products or services.

    Advertising Revenue

    Another significant revenue source is advertising revenue, with businesses paying to promote their products or services through advertisements on the IndiaMART website and mobile applications, thereby increasing their visibility to a broader audience.

    Request for Quote(RFQ)

    The platform also offers Request for Quote (RFQ) services, enabling suppliers to pay for access to buyer requests for quotes, and facilitating direct responses to inquiries.

    Payment Facilitation

    Furthermore, IndiaMART has introduced payment facilitation services that enable buyers to securely complete transactions with suppliers, further streamlining the purchasing process.

    IndiaMART has shown impressive financial performance in recent years, underscoring its strong presence in the B2B marketplace. For the fiscal year ending March 2024, the company reported total revenue from operations of ₹1,197 crore. In terms of profitability, IndiaMART achieved a Profit After Tax (PAT) of ₹374.3 crore for FY 2024. Additionally, the operating profit margin was reported at 42.23%, demonstrating effective cost management and operational efficiency that contribute to its overall financial health.

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    IndiaMART Unique Selling Proposition

    IndiaMART’s Unique Selling Proposition (USP) lies in its ability to offer a comprehensive, trustworthy, and efficient B2B marketplace that seamlessly connects buyers and suppliers.

    IndiaMART SWOT Analysis

    Strengths

    • IndiaMART holds over 60% of the market share in India’s B2B listings, making it a leader in the industry.
    • The platform connects 7.9 million+ suppliers with a wide pool of buyers, facilitating varied business interactions and expanding market access.
    • IndiaMART’s revenue reached ₹1,197 crore in FY 2024, a 20.71% increase from the previous year, showing consistent growth.
    • Advanced use of AI and machine learning improves search functions and matchmaking, enhancing user experience and efficiency.
    • The platform generates millions of business inquiries yearly, offering valuable leads that help boost supplier sales.

    Weaknesses

    • IndiaMART’s reliance on India for most of its revenue poses risks during economic downturns.
    • The platform is less strong in consumer services compared to industrial sectors, indicating some market gaps.
    • Competes with major players like Alibaba and TradeIndia, which can affect profit margins and market share.

    Opportunities

    • Expanding into areas like agro and pharma could diversify revenue and attract more users.
    • Increasing digitization among MSMEs creates a major growth opportunity that aligns with IndiaMART’s services.
    • Expanding globally could allow IndiaMART to access more markets and meet international demand for Indian products.

    Threats

    • Economic challenges can reduce buyer spending, affecting transactions on the platform.
    • Adapting to changing data protection and e-commerce regulations requires continuous investment and can be challenging.
    • Fast technological changes mean IndiaMART needs to keep innovating to stay competitive; falling behind could lead to market loss.

    Conclusion

    IndiaMART is a powerful leader in the B2B marketplace, utilizing its vast network, advanced technology, and strong financial results to effectively connect millions of suppliers and buyers. Its unique selling proposition is centered around a comprehensive platform that primarily serves small and medium enterprises (SMEs), equipping them with essential tools for growth and improved market access.

    FAQ

    Is IndiaMART profitable?

    Yes, IndiaMART is profitable, with steady revenue and profit growth despite some quarterly fluctuations.

    How does IndiaMART work for buyers?

    IndiaMART allows buyers to search for products, compare suppliers, and directly connect with sellers. It offers product listings, price quotes, and a secure payment option.

    Who is CEO of IndiaMART?

    The CEO of IndiaMART is Dinesh Chandra Agarwal.

  • Best Wedding Business Ideas in India

    Indian weddings have one primary goal to create a memorable experience for the couple as well as their families, by focusing on as much opulence as possible. This business opportunity in India, the UK, and other locations around the world needs to be filled to celebrate Indian weddings through a supportive industry.

    The most memorable day in the life of any individual is their wedding day. Almost every parent in India has dreamed of a big fat Indian wedding for their sons and daughters since their childhood. But it varies from person to person, as money plays the main role in these weddings. There are over 10 million weddings celebrated in India every year. For many analysts, that implies that the global Indian wedding industry is recession-proof. This article covers the best wedding business ideas in India which you would like to start with.

    Indian Wedding Business Worth
    Best Wedding Business Ideas

    1. Wedding Planner
    2. Wedding Caterer
    3. Makeup Artistry
    4. Wedding Dresses
    5. Wedding Jewelry
    6. Wedding Blogger
    7. Wedding Magazine
    8. Wedding Videographer
    9. Wedding Musician
    10. Wedding Custom Gifts
    11. Wedding Choreographer
    12. Costume Rentals
    13. Wedding Invitations
    14. Wedding Floral Arrangements
    15. Custom Wedding Cake Designing

    Indian Wedding Business Worth

    Weddings in India in November-December
    Weddings in India in November-December

    The Indian wedding industry is the second largest in the world. A report by the Economist says the wedding industry in India is the fourth biggest industry in India, with people spending around $130 billion each year. This large industry creates jobs for millions of people. India’s big wedding season was set from November 23 to December 15, 2023. A survey by the Confederation of All India Traders (CAIT) estimated that about 3.5 million weddings would happen in these 23 days. This would boost the economy, with around $57.2 billion (INR 4,74,000 crore) expected to be spent on wedding expenses and services.

    Best Wedding Business Ideas

    Many niche businesses cater to weddings. They are either full-time or part-time businesses. The factors and incentives that encourage people to go into this line of business are the ability to get good returns on little investment in the business as long as you are passionate about the job. It is a cost-effective business that can be started with little initial investment.

    Wedding Industry Business Ideas in India
    Wedding Industry Break-up By Services

    Here are some wedding related business ideas in India that are highly profitable:

    Wedding Planner

    The job of a wedding planner is to assist with the designs, management, and planning of a client’s wedding. The planner takes care of every aspect of the program from food to decorations and entertainment. A wedding planner eliminates the stressful and energy-consuming part of planning a wedding leaving the couples to cherish the event fully, without caring.

    According to a survey, the wedding planning market in India is expected to hit INR 2 trillion by the year 2024. Many wedding planners have begun to charge up to 15% of the wedding budget as their consultation fee. Wedding planners can earn good money by helping couples plan every part of their big day, making it one of the best wedding business ideas. A wedding planner business idea helps couples organize everything for their special day making it stress-free for them.

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    Wedding Caterer

    One of the most important aspects of weddings is the food. Because food taste and quality of service are becoming serious issues to consider, more couples prefer to have professional caterers prepare and serve the food during the wedding event. A wedding caterer takes care of the meals based on the couple’s request.

    Catering for wedding events has become quite popular due to the wide range of menu options that are possible. Starting a catering service business is a great idea for entrepreneurs who are well-organized, hardworking, creative, and able to accommodate and adapt to changing customer needs and demands. It’s a business that can be done part-time while you gain experience, build a client base, and buy equipment.

    Makeup Artistry

    A makeup artist is someone who uses cosmetic techniques and processes to create beauty as desired. Every bride wants to look her best on her wedding day. The makeup business is practicable as a one-man business with low overheads. Makeup artists are some of the top earners in the entertainment, bridal, and beautification industry. Their level of income is a factor in their pedigree, experience, and network. This can be a profitable wedding related business idea in India.

    Wedding Dresses

    Starting a wedding dress business is a great marriage business idea, as many brides look for the perfect dress to make their day extra special. Based on an estimate, the average clothing budget for a wedding in India is $375,500 or more. Wearing an exclusive designer sari for the event can cost as much as INR 110,000 and more. So the clothes business is a huge success. If you do not have too much capital to invest in the business, and funding is a barrier for your business then you can still cater to money-conscious couples. You can start with a wedding dress rental service with a few dresses, a business telephone, a business card to start with, and a website, you are ready to get started with your business.

    Wedding Jewelry

    According to some estimates, families might spend up to $250,000 on elaborate bracelets, earrings, necklaces, and other jewelry items for the whole family as part of the Indian wedding. So this is a very profitable business idea. You can also rent the jewelry.

    Wedding Blogger

    Weddings are usually a very hot and attractive topic, especially among young unmarried people. They are always interested in the latest trends in weddings, including the latest gown/dress fashion, creative wedding hashtags, wedding themes, rings, cake designs, flowers, decorations, and many other things. During these weddings, the brides-to-be always need help and information regarding the ceremonies, events to be held, and dress to wear on occasion to make their dream wedding a huge success. To fulfill these needs publishing a wedding blog is usually easy and cheaper to start than publishing a magazine.

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    Wedding Magazine

    Even though capital intensive, you can start a wedding magazine. Start publishing bridal magazines and in no time you will be popular. The business requires licensing and permits. You need seasoned writers, editors, photographers, and location drivers.

    Wedding Videographer

    A wedding videographer’s job is to capture the whole event. Becoming a wedding videographer is yet another easy business idea and can be a lot of fun. You get to spend your professional life at parties where people are energetic, positive, and excited. You also get to engage with the challenge of turning one of the most important events in someone’s life into a visual souvenir that they’ll be happy to watch over and over again.

    To make a wedding videography business successful, you’ll need a vehicle so that you can travel freely, as well as the space and equipment necessary for editing.

    Business Ideas for Weddings
    Wedding Related Business in India – Wedding Videography

    Wedding Musician

    Modern-day musicians have a huge customer base at weddings. Employ your compilations of music from a variety of eras to please every generation in music at weddings. Couples with bigger budgets are springing for both a DJ and a band. They may want their first dance song to be played live but prefer a DJ later in the evening for a nightclub atmosphere. Or some may stick with the live band all night.

    Wedding Custom Gifts

    Offer personalized engraving or monogramming services for wedding gifts. The main challenge is making sure each piece is high quality. Personalized gifts are meaningful and can sell at higher prices, making this a profitable business idea. You can start with simple tools and grow as you get more clients, using social media to show your work and attract more people.

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    Wedding Choreographer

    Offer dance choreography services for couples who want a special dance at their wedding. You can run this business from a home studio. The main challenge is building a client base and marketing your service, but couples often highly value this, making it a profitable wedding business idea.

    Costume Rentals

    Clothing rental is a great wedding business idea with many benefits. It supports sustainable fashion by reducing waste, as people rent instead of buying new clothes. It’s cost-effective, letting customers wear designer outfits for special occasions without paying full price. Plus, you can run a clothing marriage rental business online, so you can reach customers anywhere without needing a physical store.

    Wedding Invitations

    You can make special, one-of-a-kind invitations for people’s weddings, either as digital ones or as real printed ones. Styles change fast, so you’ll need to make new designs often. But people always love invitations that feel personal and unique. How much money you make depends on the price of materials and what people are willing to pay. This can be a fun and profitable idea for the wedding business in India.

    Wedding Floral Arrangements

    Marriage Business in India
    Best Wedding Business Ideas – Floral Arrangements

    A wedding floral arrangements business involves creating beautiful flower designs for weddings, like bouquets, centerpieces, and decor. Flowers add beauty to weddings, so this is a great wedding business idea. To start, learn floral design skills and make a portfolio of your work. Connect with local flower suppliers to keep a steady supply. Set prices for different services, like bridal bouquets and venue dĂŠcor. Create a website and use social media to show your work and attract clients. It is one of the best wedding industry business ideas that will cater to you with maximum profit.

    Custom Wedding Cake Designing

    Offer custom wedding cake services, letting couples design a cake exactly how they want. The main challenges are creating detailed designs and delicious flavors, but happy clients can lead to more word-of-mouth referrals. Each cake can be very profitable, and you can grow your business by sharing photos of your cakes on social media to attract more couples.

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    Conclusion

    India has one of the largest population centers in the world today, it will continue to boast one of the largest wedding industries in the world as well. Over the next 10 years, as incomes rise in the country, the wedding industry may begin to close the gap between it and the United States. Though there was a huge drop in the wedding business in India during the pandemic, it started getting better as things went back to normal. In the future, we can look forward to seeing many more weddings.

    FAQ’s

    How do I start my own wedding business in India?

    1. Choose the Type of Wedding Business You Want to Start and a Name.
    2. Choose a Business Entity.
    3. Write a Detailed Business Plan.
    4. Get an EIN.
    5. Get a Business Bank Account and Business Credit Card.
    6. Get Any Funding You Need.

    Is the wedding business in India profitable?

    Yes, owning a wedding venue can be a very profitable business, but not if you take on too much debt. This business requires a lot of work, and if you get in over your head in terms of debt and assume you’ll book 50, or 100, or 150 weddings a year, you could find yourself working nonstop which can put you in a difficult situation.

    Do wedding planners make a lot of money?

    The typical wedding consultant salaries are wide open from a few hundreds to a few thousand. The wedding planners earn wages of $100K a year easily and there are some who could barely cross $15K. The difference in a wedding consultant’s salary is the number of years they’ve been in the business.

    Is wedding planner a good business?

    A full time and experienced wedding planner can earn between 10-15 percent commission of the total wedding budget. So, for a wedding budget of INR 10 lakh, one can easily earn at least INR 1 lakh. Wedding planning requires creativity, people management, time management, and working at unearthly hours.

    Are wedding planners in demand?

    Yes, wedding planners are in demand because they help couples organize everything, making the wedding day easy and enjoyable.

  • Infosys Business Model – How Infosys Makes Money?

    Infosys is a leading multinational specializing in technology-driven solutions like business consulting, IT, and outsourcing services. Infosys enables businesses across various sectors to use end-to-end services, including digital transformation, AI, cloud computing, and cybersecurity.

    Infosys uses its expertise and technology to help organizations cut costs, improve operations, and reach their goals, making it a trusted global partner.

    This article will explore Infosys’s business and revenue models in depth, helping readers clearly understand the company’s growth trajectory.

    About Infosys
    Infosys Business Model
    How Infosys Makes Money | Infosys Revenue Model
    Value Proposition of Infosys
    Infosys SWOT Analysis

    About Infosys

    About Infosys
    Infosys Office

    Founded in 1981, Infosys is a global consulting and IT services company listed on the NYSE, with over 317,000 employees. Started with an initial capital of $250, it was registered as Infosys Consultants Private Limited on July 2, 1981. In 1983, the company relocated to Bangalore, Karnataka. In 1999, Infosys became the first Indian company listed on NASDAQ, gaining access to capital markets and boosting its growth.

    On August 24, 2021, Infosys became the fourth Indian company to achieve a $100 billion market capitalization. Recognized as one of India’s leading Big Tech companies, Infosys ranks as the second-largest Indian IT company by revenue and the third-largest by market capitalization as of March 31, 2024.

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    Infosys Business Model

    Infosys Strategies and Models
    Infosys Strategies and Models

    Infosys’s business model is all about providing innovative and personalized technology solutions for clients. The company offers a range of services, including application development, systems integration, consulting, and outsourcing.

    Clients typically begin their partnership with Infosys by outlining their specific needs and goals while collaborating with the company’s solution architects. Next, Infosys examines the client’s current IT setup to identify challenges and opportunities. After this, Infosys works with clients to develop customized solutions, which may involve creating new applications or integrating existing systems. 

    The company focuses on quality and efficiency through careful project management and industry best practices, ensuring that its solutions provide real value. Additionally, Infosys offers ongoing support, including troubleshooting and performance optimization, to help clients make the most of their technology investments. Infosys offers services like Infosys NIA, an AI platform, and Infosys Finacle, a banking solution, that supports sectors like finance, retail, and healthcare in driving digital transformation for clients.

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    How Infosys Makes Money | Infosys Revenue Model

    Infosys primarily earns revenue through fees for consulting, IT services, and outsourcing, making it a key partner for businesses in many industries. Additionally, Infosys licenses its software products and platforms, which diversifies its income and ensures a steady cash flow. This varied revenue model also reduces market risks, as long-term contracts and repeat business from loyal clients provide stable income. This allows Infosys to invest continuously in innovation and new capabilities.

    Process Improvement

    A major revenue driver for Infosys is Process Improvement. By using advanced technologies like automation, AI, and cloud computing, Infosys enhances both internal processes and client solutions. Regular performance benchmarking and continuous improvement create added value for clients and increase revenue by optimizing workflows and reducing costs.

    Workforce Efficiency

    Workforce Efficiency is also key. By shifting more work to offshore locations with skilled talent at lower costs, Infosys reduces expenses, improves margins, and offers competitive pricing. This model gives Infosys the flexibility to scale efficiently with project demands, boosting revenue.

    Knowledge Reuse

    Another strategy is Knowledge Reuse. Infosys’s experience and strong knowledge management allow it to reuse established solutions, reducing development time and expenses. This reuse maintains high service quality, fosters client trust, and promotes repeat business.

    Strategic Projects

    Strategic Projects through Centers of Excellence (CoEs) drive growth by focusing on high-impact projects that meet industry needs, creating revenue from innovative, large-scale initiatives.

    Software Services

    Finally, Software Services form 95% of Infosys’s revenue, with a skilled workforce delivering high-quality digital solutions. The Global Delivery Model also plays a key role, particularly in North America, where Infosys earns nearly two-thirds of its revenue.

    With its strong resources and capabilities, Infosys provides valuable solutions, strengthens its market position, and supports sustainable growth, making it a trusted IT partner worldwide.

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    Revenue of Infosys Limited worldwide from financial year 2014 to 2024

    Revenue of Infosys Limited worldwide from financial year 2014 to 2024
    Revenue of Infosys Limited worldwide from financial year 2014 to 2024

    Value Proposition of Infosys

    Infosys’ value proposition is distributed across 4 categories: 

    • For Enterprises: Infosys offers creative solutions that align with business goals, helping enterprises adapt to changing technologies and market demands while streamlining operations and enhancing customer experiences. 
    • For Government Organizations: Infosys provides expertise in navigating regulatory landscapes and ensuring data protection, improving operational efficiency and service delivery. 
    • For SMEs: Infosys delivers cost-effective solutions that boost productivity and engagement, enabling SMEs to compete with larger companies. 
    • For Startups: Infosys supports startups with industry knowledge and scalable resources to accelerate their growth. 
    • For Global System Integrators (GSIs): Collaborating with Infosys allows GSIs to leverage technical expertise and global delivery for innovative digital transformation solutions.

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    Infosys SWOT Analysis

    Infosys Strengths

    • Comprehensive Training Programs: Infosys provides extensive employee training and competency development, utilizing a mix of classroom, virtual, macro, and microlearning methods.
    • Wide Course Offering: The company offers approximately 1,500 continuous education courses, ensuring employees have access to a diverse range of learning opportunities.
    • Digital Transformation in Training: Infosys actively modernizes its training processes by leveraging digital platforms, enhancing the overall learning experience.
    • Industry Leadership in Employee Development: Recognized for its innovative training initiatives, Infosys is considered one of the best in the IT industry for employee training and skill enhancement.

    Infosys Weaknesses

    • Client Dependency Risks: Infosys relies heavily on North America for over 60% of its revenue, exposing the company to geopolitical and regulatory risks that can hinder growth.
    • Integration Challenges from Acquisitions: The company has struggled with integrating acquisitions due to cultural misalignment, leading to significant financial losses, such as the $90 million write-off from failed acquisitions like Panaya and Skava.

    Infosys Opportunities

    • Rapid Growth in IT Ecosystem: India’s IT industry is growing at 15.5% annually, outpacing the overall economic growth and presenting Infosys with significant opportunities, particularly in the software product sector, projected to reach a $1 trillion global market by 2025.
    • Rising Demand for Cloud Solutions: The public cloud services market in India is expected to grow at an impressive rate of 22.9% annually, with projections of reaching $17.8 billion by 2027, offering Infosys ample opportunities to provide cloud-native solutions and digital services.
    • Dominance in Outsourcing: As the leading outsourcing destination, India comprises 55% of the IT and Business Processing Management services market, with projected spending in the IT sector set to increase by over 11.1% to $138.6 billion in 2024, creating substantial growth prospects for Infosys.
    • Strategic Expansion and Acquisitions: Infosys’s size enables it to effectively acquire smaller competitors, leveraging past successful acquisitions to enhance its market position and drive further business growth.

    Infosys Threats

    • Cybersecurity Risks: With advancing technology, Infosys faces heightened threats from data breaches and cyberattacks.
    • Geopolitical and Economic Challenges: Geopolitical uncertainties and economic fluctuations, such as trade wars, currency volatility, and policy shifts, pose significant risks to Infosys’s cross-border operations and profitability.
    • High Employee Attrition: Infosys experiences a high attrition rate of 12.6%, one of the worst in the industry, resulting in increased recruitment and training costs as the company struggles to retain talent.
    • Intense Competition and Regulatory Hurdles: Operating in a competitive IT landscape with rivals like Accenture and IBM, Infosys faces pressure to innovate and manage costs.

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    Conclusion

    Infosys’s client-centric approach focuses on building long-term relationships through dedicated account management, enhancing satisfaction and loyalty. The company invests significantly in research and development to foster innovation and uses flexible pricing models to meet diverse client needs. By implementing a global delivery model, Infosys achieves operational efficiency, providing cost-effective, high-quality solutions that position it well in the dynamic technology landscape.

    FAQ

    What is the main source of income for Infosys?

    Software Services form 95% of Infosys’s revenue, with a skilled workforce delivering high-quality digital solutions. The Global Delivery Model also plays a key role, particularly in North America, where Infosys earns nearly two-thirds of its revenue.

    What is the main business of Infosys?

    Infosys primarily offers IT services and consulting, specializing in digital transformation, software development, and technology solutions for businesses worldwide.

    Who are Infosys biggest clients?

    Infosys’ biggest clients include:

    1. Google
    2. Microsoft
    3. Bank of America
    4. Goldman Sachs
    5. Johnson & Johnson

  • BlackRock Business Model | How Does BlackRock Make Money?

    One of the big three index fund managers, BlackRock Inc. is a multinational investment company based in the USA. It is considered the biggest investment management company across the globe and has more than USD 9.42 trillion in its asset management. 

    BlackRock is globally considered while investing any fund, as it is great with assisting the assets of its clients, based in every part of the world. In simple words, the American company provides investment and technological services to its institutional as well as retail clients.

    BlackRock is one of the few investment firms accessible to everyday investors. For a long time, companies like Bain Capital have provided excellent returns to their investors but were closed off to the public being private equity firms. Blackrock’s decision to go public in 1999 gave many people who otherwise wouldn’t have the chance to access (what was then) private equity.

    Speaking of the clients, the client base that is spread around the globe firmly relies on BlackRock for access to mutual funds, and college savings and also while making investments focused on objectives related to retirement income. BlackRock is also a business that guides its clients in exchange-traded funds (ETFs).

    It is a publicly-traded company and offers a wide range of funds and portfolios. The categories covered by BlackRock are equities, money market instruments as well as fixed income. BlackRock has now become a synonym for success in the financial world. 

    People simply keep on wondering about its work ethic that has pushed it beyond limits when compared to other similar companies. While BlackRock has become an industry leader there is a story behind it and the strong base of services that is provided to its customer. This is potentially good for investors but what about the company? How did BlackRock generate $17.8 billion in revenue they did in 2023? Do they simply take a fee for the returns they bring investors or do they have other ways of obtaining income?

    Here we will have a look at the firm base and learn the in-depth critical approach that the investment company makes while dealing with its client. 

    BlackRock – About

    Founders Robert S. Kapito, Susan Wagner and Larry Fink
    Incorporated 1988
    Headquartered New York City
    BlackRock Founders - Robert S. Kapito, Susan Wagner and Larry Fink
    BlackRock Founders – Robert S. Kapito, Susan Wagner and Larry Fink

    BlackRock was founded in 1988 by Lawrence (Larry) Fink and 7 other partners who wanted to put clients’ interests first. They felt they could manage assets in a way that better mitigated the risk of investing. Headquartered in New York City, they’ve since grown to 70 offices in 30 countries with over 19,000 employees globally. They currently have just over $10 trillion in assets under management. Their target customers for funds management include insurance companies, mutual funds, and pension funds – all of whom are looking to grow the existing pool of capital they have. Most of their products relate to investment advisory and administrative fees.

    BlackRock is the world’s leading asset manager company that provides investment, advisory, and risk management solutions. The company has till now helped millions with their financial difficulties by providing better solutions. BlackRock is known to assist its clients by helping them meet immediate spending needs, build wealth, and retire securely. 

    BlackRock has brought forth a huge revolution in the process of investment management. Moreover, the asset management company is the private company for the iShares group of STFs. 

    Headquarters and Areas of Operations

    The multinational finance assistance company has its headquarters situated at 50 Hudson Yards, New York City. Speaking of the areas where it operates, BlackRock is a multinational company that has over 70 offices in 30 countries. But that’s not it, the company even has clients in over a hundred countries.

    Key Services 

    In simple language, BlackRock provides services such as asset management, risk management, mutual funds as well as exchange-traded funds, and index funds. While its core services include portfolio construction and balance sheet solutions. This includes sustainability and even the climate risk advisory. 

    Similarly, BlackRock also provides capital markets and transaction support in its area of core services. With that, data, analytics & financial modeling, enterprise risk & regulatory advisory are some of the other core services that BlackRock provides. 

    Number of Funds Owned by BlackRock Globally by Fund Types and Region
    Number of Funds Owned by BlackRock Globally by Fund Types and Region

    Target Audience

    BlackRock is a financial asset management company, that has a wide range of clients, and yet they all somehow fall in the financial sector. That being said, most of BlackRock’s client base is filled with official institutions. 

    They have clients based around the globe that include central banks, sovereign wealth funds, multilateral entities, single and multi-family offices, as well as government ministries and agencies. 

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    BlackRock – Business Model

    Here’s a detailed explanation of the business model of BlackRock.

    Illustrated below is a Business Model Canvas of BlackRock that highlights the overall workings of the business model of BlackRock.

    BlackRock Business Model Canvas
    BlackRock Business Model Canvas

    This BlackRock business model is underpinned by 3 key pillars:

    • Investment & Risk Management: BlackRock’s primary focus is managing investments and risk for a diverse group of clients – ranging from retail to institutional investors. This core activity is central to their operations, allowing them to deliver value and sustain a competitive advantage in the asset management industry.
    • Tailored Investment Solutions: BlackRock delivers specialized investment solutions to a broad spectrum of clients, including retail investors, institutional investors, wealth management firms, and insurance companies. Their strength lies in offering a diverse array of financial products, such as ETFs, along with bespoke solutions designed for high-net-worth individuals, ensuring they meet the unique needs of each client segment.
    • Technology & Financial Resources: BlackRock stands out for its use of cutting-edge technology, especially the Aladdin platform for managing risks. Its financial strength, trusted brand, and global connections also play a big part in its success.

    Customer Segments

    BlackRock provides its solution to a huge range of retail and corporate investors. Amongst its clientele, three major groups are included, which are as follows:

    • Official Entities: This group includes treasuries, the Federal Reserve, supranational, as well as the Govt agencies.
    • Taxable Entities: It is a group of clientele served by BlackRock that includes Investment firms, health insurers, other firms, third-party fund backers, and also small investors. 
    • Tax-Exempt Entities: The third and last category of clients includes inheritances, NGOs, as well as establishments.

    These clients belong to multiple geographic areas. It includes those in America, APAC, Europe, the Middle East, and several zones of Africa. However, the firm has a majority of its clients based in America. 

    Value Propositions

    BlackRock has service lines that include single and multi-asset classes. These classes are the ones that trade in equities, fixed income, options, and money market instruments. 

    Meanwhile, the company also facilitates direct guidance that is backed by multiple internet portals. It also has its own virtual portal called the BlackRock Solutions portal. 

    Now talking about its sector competence, the firm aims at hiring highly trained and skilled money managers. Similarly, the finance assets firm has a group of industry experts who watch over the aforementioned finance experts.

    Channels

    BlackRock is very particular when it comes to serving its customers. The company serves its clients through an in-house group of qualified portfolio managers. It even serves its clients with the help of financial experts who know about all of the firm segment operations. The said financial experts serve their clients out of the office premises and are based in London, Hong Kong, Atlanta, Madrid, Tokyo, Sydney, and more. 

    With that, BlackRock is also known to serve its clients taking the help of a chain that includes approved middlemen, thrift institutions, health insurers, banks, and freelance experts that serve the firm’s retail investors. 

    Key Activities

    BlackRock is also known to serve its retail and corporate clients with a vast scope of portfolio and risk mitigation solutions. They serve this service in over a hundred countries. The company is known to collaborate with a range of affiliate corporations while catering to the needs of its global clientele.

    Black Rock Revenue Model: How does BlackRock make money?

    BlackRock Revenue (2020-2023)
    BlackRock Revenue (2020-2023)

    Although Blackrock handles the large investments and also the huge amount of flow of cash, how exactly does the money asset manager make money for itself? BlackRock works on three of its prime channels to generate its revenue. These channels are:

    • Investment Management Fees: BlackRock’s main revenue source comes from charging fees for managing assets on behalf of clients, which include retail investors, institutional investors, wealth management firms, and insurance companies. These fees are generally calculated as a percentage of the total assets under management (AUM).
    • Performance Fees: BlackRock generates extra fees linked to the performance of specific investment portfolios. BlackRock is rewarded with additional compensation if a fund or portfolio exceeds established benchmarks or targets. In FY 2023, performance fees contributed $554 million, which is roughly 3% of total revenue.
    • Services and Commissions: This includes charges for the following:
      – Technology Services: BlackRock provides investment management technology systems, risk management services, wealth management, and digital distribution tools to clients, including insurance companies, banks, pension funds, and asset managers. In FY 2023, technology services generated $1.49 billion, representing approximately 8% of the total revenue.

      – Advisory Services: Revenue is generated from advisory services for global financial institutions, regulators, and governments. In FY 2023, this segment contributed $159 million, representing approximately 1% of total revenue.

      – Distribution Fees: Revenue is derived from the distribution and servicing of its products. In FY 2023, this segment accounted for $1.26 billion, representing around 7% of the total annual revenue.

    BlackRock Revenue Breakdown

    Derived from BlackRock’s fiscal year 2023, which concluded on December 31, 2023.

    BlackRock Revenue Breakdown 2023
    BlackRock Revenue Breakdown 2023

    BlackRock – USP

    BlackRock’s value proposition lies in providing smart investment solutions, advanced technology, and a focus on sustainability to help clients achieve their financial goals. Here are BlackRock’s key value propositions:

    • Retail Investors: When it comes to retail investors – BlackRock’s offering revolves around a comprehensive selection of investment products and solutions designed to fulfill their financial needs and help them attain their investment goals. The company features a wide range of mutual funds and ETFs, which allow investors to gain exposure to different asset classes, sectors, and regions. These offerings are structured to enhance diversification and provide effective risk management strategies, ensuring that investors have the tools necessary to build a balanced and resilient portfolio.
    • Institutional Investors: For institutional investors, the focus is on delivering investment management solutions that support them in achieving their objectives. The company provides a variety of services, including portfolio management, risk management, and advisory services – all designed to assist institutional investors in effectively managing their assets, generating returns, and minimizing risk
    • Wealth Management Firms: The value proposition for wealth management firms focuses on delivering investment products and solutions that cater to the needs of their high-net-worth clients. The company collaborates with wealth management firms to provide a variety of investment options, including mutual funds, ETFs(exchange-traded funds), and separately managed accounts, all tailored to address the requirements of high-net-worth individuals and their families.
    • Government Entities: focuses on delivering investment management solutions that assist them in managing their assets and fulfilling their financial obligations. The company provides a variety of investment options, including fixed income, equities, and alternative investments, specifically designed to help government entities generate returns, mitigate risk, and achieve their investment goals.
    • Corporations: Here it revolves around offering tailored investment management solutions that empower them to manage their cash effectively and invest corporate assets wisely. The company provides a broad spectrum of investment options, including cash management services, corporate bond investments, and risk management strategies, all designed to help corporations enhance returns, mitigate risk, and fulfill their financial objectives. By delivering these comprehensive solutions, BlackRock equips corporations with the resources they need to navigate complex financial landscapes and optimize their investment outcomes.

    BlackRock SWOT Analysis

    BlackRock SWOT Analysis
    BlackRock SWOT Analysis

    BlackRock Strengths

    • Market Leadership: BlackRock stands as the largest asset management firm globally, boasting just over $10 trillion in assets under management. This immense scale provides the company with notable advantages, such as economies of scale, a wide array of investment products, and a global presence. As a result, BlackRock can deliver its clients access to a diverse selection of investment opportunities spanning various asset classes and regions.
    • Brand Presence: BlackRock has established a solid reputation for its innovation, risk management, and commitment to client service. The success of its iShares exchange-traded funds (ETFs) and numerous awards for its investment products and services further enhance this reputation. As a result, the company can attract and retain top talent while fostering long-term relationships with both institutional and retail clients.
    • Multi-faceted Business Model: BlackRock provides an extensive gamut of investment products and services, encompassing both active and passive strategies, alternative investments, and advisory services. This varied business model allows the company to navigate market volatility and meet diverse client needs effectively. Furthermore, BlackRock has made substantial investments in technology to enhance client service and increase operational efficiency.

    BlackRock Weaknesses

    • Heavy Reliance on a Limited Client Base: Although BlackRock has a vast and varied client base, it relies heavily on a small number of key clients for a substantial portion of its revenue. The loss of any of these clients could considerably affect the company’s financial performance.
    • Asset Concentration: BlackRock’s large scale is indeed a strength, but it also poses concentration risks. A considerable portion of its assets under management is found in its largest funds, potentially leading to outflows if performance declines or investors choose to move their capital.
    • Regulatory Exposure: As a significant and influential entity in the financial markets, BlackRock faces heightened regulatory scrutiny. Changes in regulations could affect the company’s operations, profitability, and reputation.

    BlackRock Opportunities

    • The surge in global assets under Management: BlackRock is strategically positioned to capitalize on the rising global wealth trend and the increasing demand for investment products. The company has a solid foothold in emerging markets and the potential for further expansion in these areas.
    • ESG Investing: Leading the charge in environmental, social, and governance (ESG) investing, BlackRock is well-positioned to benefit from the ongoing trend and the increasing demand for sustainable investment products
    • Technology: With significant investments in technology, BlackRock is poised to enhance its investment processes, improve client service, and unlock new business opportunities. 

    BlackRock Threats

    • Rivalry: There is considerable rivalry from other asset managers such as Vanguard, State Street, and Fidelity. This competition may result in fee compression, capital outflows, and lower profitability.
    • Market Turbulence: Overdependence on market performances could lead to outflows, reduced revenue, and lower profitability. 
    • Digital Security Risks: BlackRock is a prominent financial services firm facing potential cyber vulnerabilities. A breach could incur substantial economic losses, regulatory fines, and damage to its reputation.

    BlackRock has achieved remarkable success in investment management through its innovative business model that leverages technology, data analytics, and passive index investing. As a leader in the industry, its influence is set to persist and it will be intriguing to observe how it adapts to future developments and challenges.

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    Conclusion

    BlackRock has become the largest as well as the most powerful firm in the financial industry. With its tireless efforts, it has made its place amongst the financial giants on a global scale. Its business model that caters to various sectors has thoroughly transformed the industry while also influencing others. 

    Yet, the company is searching for ways to innovate and come up with a new path to help its clients and also grow more targeting the world.

    FAQs

    What is BlackRock?

    BlackRock, Inc. is a global asset management firm founded in 1988. It is the world’s largest asset manager, providing investment, risk management, and advisory services to both retail and corporate clients.

    Who are BlackRock founders?

    Robert S. Kapito, Susan Wagner and Larry Fink are the founders of BlackRock.

    What is BlackRock net worth?

    As of October 2024, the net worth of BlackRock company is $141.03 billion.

    What does BlackRock do?

    BlackRock offers a wide range of investment solutions, including single and multi-asset baskets that invest in stocks, fixed-income, options, and money market funds. It utilizes its technology platform, Aladdin, to enhance portfolio management and trading efficiency for clients across global markets.

    How BlackRock makes money?

    BlackRock makes money by charging fees for managing people’s investments, offering financial advice, and providing technology tools for other investment companies.

    Who are BlackRock?

    Some of BlackRock’s competitors are Charles Schwab (SCHW), The Goldman Sachs Group (GS), Morgan Stanley (MS) and Interactive Brokers Group (IBKR).

    Who is BlackRock owned by?

    Laurence D. Fink is the founder, CEO and Chairman of BlackRock.

    Who is the richest person at the BlackRock?

    Larry Fink is known to be the richest person at BlackRock because of his title of being a single individual shareholder at the firm.

    What does BlackRock own?

    BlackRock’s investments span various sectors, with a prominent focus on technology. Its top holdings include major companies like Microsoft (MSFT), followed by Apple, Amazon, Nvidia, Alphabet (GOOGL), Meta, Alphabet (GOOG), and Tesla.

    How is BlackRock different from other firms?

    BlackRock is different from other firms because it is very large and offers a wide variety of investment options. It uses advanced technology and data to help clients and focuses on sustainable investing to benefit both people and the planet.

  • The Bhavish-Kamra Saga: A Tweet That Cost Ola Chief & the Company INR 3500 Crore

    In the times of social media skirmishes, few battles get as heated — and as public as the recent spat between Ola CEO Bhavish Aggarwal and comedian Kunal Kamra. Over the weekend, this unlikely duo locked horns in a now-viral exchange that quickly spiraled into a full-blown public relations disaster for Ola Electric, costing the company dearly — not just in market value but also in customer trust.

    How It All Started: Kamra’s Call to Action

    It all kicked off with a simple tweet from Kunal Kamra, who, in true comic fashion, used his platform to bring attention to Ola Electric’s service issues. Sharing a photo of an Ola showroom, Kamra raised a rather critical question: “Do Indian consumers have a voice? Do they deserve this?” His tweet highlighted how daily wage workers — many of whom rely on two-wheelers like those Ola manufacturers — were left in the lurch by the company’s poor after-sales service. Kamra tagged government officials, including Minister of Road Transport Nitin Gadkari, to amplify the issue.

    Kamra’s concerns were not entirely unfounded. Ola Electric’s customer service has long been a point of contention, with many users complaining about subpar service centers, delayed responses, and a lack of resolution for faulty electric vehicles (EVs). But instead of addressing these criticisms head-on, Bhavish Aggarwal decided to take a different route.


    Bhavish’s Response: Sarcasm over Solutions

    Aggarwal’s response came swiftly — and sharply. Rather than engaging with the substance of Kamra’s tweet, Aggarwal chose to dismiss it as a “paid post,” insinuating that Kamra had been compensated to criticize Ola. “Find some real work,” he wrote, taking a jab at Kamra’s career, adding that if Kamra was so concerned about Ola’s services, he could work for the company instead. Aggarwal’s sarcasm reached new heights when he further mocked Kamra, saying, “Chot lagi? Dard hua? Aaja service center. I will pay better than your flop shows pay you.”

    While one might argue that sarcasm has its place in social media banter, this wasn’t one of those moments. The fact that Aggarwal, the CEO of a billion-dollar company, chose to mock a comedian rather than address legitimate customer concerns sent ripples through the internet — and not the good kind.

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    Kamra Claps Back: Enter ‘Olan Musk’

    Of course, Kamra, known for his acerbic wit, wasn’t about to let Aggarwal off the hook. In his response, the comedian took another swing, this time labeling Aggarwal as “Olan Musk” — an obvious jab at Aggarwal’s perceived likeness to Elon Musk, who is equally famous for his confrontational social media presence. Kamra doubled down on his criticisms, calling out Ola’s lack of accessible service centers and inadequate customer support, further stoking the fire of customer frustration.

    While Kamra’s retort had the internet in splits, the real losers in this spat were Ola Electric’s customers. As Kamra pointed out, many of them have faced long-standing issues with refunds, repairs, and basic service. Instead of offering a roadmap to fix these problems, Aggarwal’s reaction only seemed to confirm that customer grievances were not a priority for the company.

    On October 17, 2024, Kunal Kamra once again took a dig at Ola Electric, this time going after their mysterious silence on customer complaints and refunds. Kamra, always ready with a sharp one-liner, pointed out the glaring absence of any concrete plan from Ola to resolve the ongoing grievances. Taking to X (formerly Twitter), Kamra quipped, “Ola Electric hasn’t disclosed any plan to issue refunds or put an end date to current customer complaints. We don’t even know if there is a plan…”

    But he didn’t stop there. Kamra added another punchline directed straight at Ola’s CEO Bhavish Aggarwal, humorously urging him to step up his game with a little less Kunal involvement. “All I can do is let @bhash know that he has to put out a public plan that doesn’t include employing me,” he joked, keeping the banter alive.

    It seems Kamra’s light-hearted yet biting commentary is here to stay in this saga. Whether or not Bhavish takes him up on that job offer, one thing’s for sure: the comedian’s trolling game isn’t going electric anytime soon.


    The Consumer Outcry: Ola Electric’s Reputation Takes a Hit

    The aftermath of the exchange wasn’t just limited to witty one-liners on Twitter. In fact, Kamra’s tweets opened the floodgates for other disgruntled customers to voice their frustrations. Many shared their own experiences with Ola’s lackluster customer service, turning the online spat into a digital referendum on Ola Electric’s ability to provide reliable post-purchase support.

    Netizens pointed out that for many Indians, especially those who rely on two-wheelers for their livelihoods, a malfunctioning scooter is no small inconvenience. For daily wage workers, an unreliable EV can mean lost income and missed opportunities, making the stakes far higher than just the inconvenience of waiting for repairs.

    Amid the outcry, one Twitter user, Aditya Shah, added fuel to the fire by sharing screenshots that purportedly showed Ola Electric’s involvement in a paid influencer campaign. Shah claimed that multiple influencers had been approached to post positive tweets about Ola Electric’s products just a month earlier, making Aggarwal’s accusation of Kamra being a “paid critic” seem especially hypocritical.

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    The Financial Fallout: INR 3500 Crore Problem

    If this were just another social media spat, it might have blown over with little impact. But for Ola Electric, the consequences were far more tangible. The company’s stock took a nosedive in the days following the exchange, dropping by 8% on Monday (October 7, 2024) after Kamra’s viral tweets. This marked the company’s third consecutive day of losses, bringing the total market value loss to INR 3500 crore — a staggering amount for any company, let alone one still trying to cement its place in the highly competitive EV market.

    Ola Electric's Financial Fallout
    Ola Electric’s Financial Fallout

    Investor sentiment, already shaky due to broader market conditions and the ongoing Israel-Iran war, took a further hit. The public perception of Ola Electric, already marred by service complaints — was now compounded by the CEO’s inability to handle criticism constructively.

    As many finfluencers pointed out on LinkedIn, Bhavish Aggarwal’s decision to engage in a public feud instead of focusing on improving his company’s services only exacerbated the damage to Ola Electric’s reputation. Investors, it seems, are losing confidence in the company’s leadership — and for good reason.

    The Bigger Picture: Can Bhavish Handle the Heat?

    Bhavish Aggarwal’s response to Kamra’s criticism raises a larger question: can he handle constructive criticism? In the startup scenes, where customer feedback is king, a CEO’s ability to listen, adapt, and improve is crucial to long-term success. Aggarwal’s decision to dismiss Kamra’s legitimate concerns — and by extension, the concerns of thousands of Ola Electric customers suggests a troubling lack of humility.

    For a company like Ola Electric, which is positioning itself as a leader in the EV revolution, customer trust is everything. With increasing competition from players like Ather Energy, Bajaj Auto, and Hero Electric, Ola can’t afford to alienate its customers — especially not with a public spat that reinforces the perception of poor service.

    What’s Next for Ola Electric?

    Ola Electric is now under even greater scrutiny, not just from customers but from regulatory authorities as well. The Central Consumer Protection Authority (CCPA) has already issued a show-cause notice to the company for violating provisions of the Consumer Protection Act, 2019. With allegations of service deficiencies, misleading advertisements, and unfair trade practices, the company faces the possibility of legal action if it fails to provide an adequate response.

    Meanwhile, Bhavish Aggarwal might want to rethink his approach to social media. While Elon Musk has turned his Twitter antics into a personal brand, Bhavish’s attempts at mimicry have backfired, costing his company both financially and reputationally.

    As the Bhavish-Kamra saga continues to unfold, one thing is clear: when it comes to customer feedback, the last thing a CEO should do is mock the messenger. After all, in the age of social media, every tweet counts — sometimes to the tune of INR 3500 crore.

    FAQs

    Who is the CEO of OLA Electric?

    Bhavish Aggarwal is the CEO of OLA Electric.

    What is the price of OLA Electric shares?

    The shares of OLA Electric fell 8.31% to close at INR 90.82 on the BSE. This decline came a day after founder and CEO Bhavish Aggarwal had a public disagreement with stand-up comedian Kunal Kamra regarding widespread service issues impacting many Ola electric scooter owners.

    What are the challenges faced by Bhavish Aggarwal after his dispute with comedian Kunal Kamra on Twitter?

    Aggarwal is now under scrutiny following his dispute with Kamra, which has ignited a broader conversation about professionalism and the appropriate handling of customer complaints.

  • Sarla Aviation’s eVTOL Vision: Cutting Bengaluru’s Airport Commute to Minutes…But Can It Take Off?

    Bengaluru is infamous for its traffic, often turning even the simplest commute into a test of patience. But in a potentially game-changing move, Bangalore International Airport Limited (BIAL) has teamed up with Sarla Aviation to bring a futuristic travel solution straight out of a sci-fi movie. This partnership aims to cut down the 1.5-hour drive to the airport to just five minutes, (yes, you read that right) using an electric-powered, seven-seater aircraft known as eVTOL.

    If you’re wondering what on earth an eVTOL is, it stands for “electric Vertical Takeoff and Landing” aircraft, essentially an airborne vehicle that lifts off and lands like a helicopter but runs entirely on electric power. Sarla Aviation, an aerospace component manufacturing company, announced this partnership with BIAL, making Bengaluru India’s first airport to provide such advanced air mobility solutions.

    The prospect of zipping over traffic in an electric air taxi sounds almost too good to be true, but Sarla Aviation insists it’s closer to reality than we might think. According to the company, their eVTOL is designed to slash commute times in urban settings. Here’s a better real world example for Bengaluru Folks: what usually takes 152 minutes by road from Electronics City to the Bengaluru Airport could be reduced to under 20 minutes. Thus, it is like flying over the chaos of trucks, buses, and bikes at a breezy 250 km/h, cutting through city congestion like a hot knife through butter.

    What’s particularly fascinating is the tech behind this marvel. The eVTOL runs on four double-isolated battery packs powering seven electric motors. It’s capable of flying distances of up to 160 km, though it’s optimised for those short, often infuriating 20-40 km inner-city trips that make city life so exasperating. In the future, this tech could be a game changer for anyone who regularly deals with urban sprawl right from a daily commuter or a business traveller desperate to avoid missing yet another flight.

    Now, as exciting as this innovation sounds, it’s worth noting the practicality of it all. First, there’s the matter of cost. Sarla Aviation has pegged a ticket for the Bengaluru Airport-Electronics City route at ₹1,700. While that’s not prohibitive for frequent flyers or business professionals, it’s still not in the budget-friendly range for the average commuter.

    If Sarla wants mass adoption, pricing strategies will need a rethink, especially as they expand to other cities like Mumbai and Delhi. The company claims the aircraft can perform back-to-back 40 km trips with just 15 minutes of charging in between. However, the real test will be infrastructure. It’s one thing to develop futuristic air taxis. However, it’s another to ensure they integrate seamlessly into a city’s existing transportation ecosystem.

    Bengaluru is notorious for its infrastructural limitations, and questions remain about whether the city can support these flying taxis at scale. What will the environmental impact be? How will regulations adapt? There’s also the challenge of public perception — many might hesitate before jumping into an aircraft for a 20-minute hop to the airport.

    Sarla Aviation has been proactive in addressing these concerns. Last week, they met with Civil Aviation Minister Ram Mohan Naidu Kinjarapu and the Directorate General of Civil Aviation (DGCA) to discuss policies around urban air mobility. Their goal? To make India a leader in this space and ensure smooth regulatory pathways for advanced air mobility (AAM) technologies.

    It’s an ambitious vision, and the success of this project could set a precedent for cities across the country. While the dream of soaring above Bengaluru’s infamous gridlock sounds enticing, there’s no denying the hurdles Sarla Aviation faces. From pricing and infrastructure to regulatory challenges, their journey has just begun. But if they can pull it off, Bengaluru could become a model city for how urban air mobility can revolutionise the way we travel through the congested metropolises.

    At the end of the day, Sarla Aviation’s partnership with BIAL feels like a step toward the future. Whether this takes off (pun intended) will depend not just on technological innovation, but also on how thoughtfully the company approaches real-world challenges like affordability, scalability, and public trust.

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  • An Inside Analysis of Diwali Online Sales Trends

    As per the reports, the revenue in the eCommerce Market is projected to reach USD 58.97 billion in 2024. By 2025 the growth is expected to touch USD 188 billion and to touch USD 350 billion by 2030. Much of this amount is a result of the high sales clocked during festival times.

    Diwali is just around the corner. The last few years spent in trepidation and reluctant celebrations have whetted appetites for a larger-than-life celebration this festive season. This means that the retail market is looking forward to successful festive season sales. As much as the world is now operating almost up to the pre-pandemic levels, online shopping has only gained momentum and preference.

    Diwali – the festival of lights is a symbolic representation of the victory of good over evil, knowledge over ignorance, and light over darkness. Celebrated for over five days in the Hindu month of Kartika, the festival is largely associated with the deities Lakshmi, Goddess of prosperity, and Ganesha, God of wisdom and remover of obstacles.

    The time leading up to the festival is spent in enthusiastic preparation for the celebrations. Homes and offices are thoroughly deep-cleaned, renovated, and decorated. A variety of snacks are prepared or bought, family get-togethers are planned and, of course, a lot of purchasing is done.

    Here is a Diwali sales analysis of the past few years.

    Commercial Significance of Diwali
    2020 – The Demarcation Year
    Diwali Sales Analysis
    Reasons for Successful Diwali Online Sales

    Commercial Significance of Diwali

    Traditionally, Diwali has been associated with prosperity and wealth creation. The auspiciousness of the festival is celebrated by the purchase of precious metal items like gold and silver on the 1st day of this five-day festival – ‘Dhanteras’. The day is also considered auspicious for the purchase of big-ticket items like property, cars, and other white goods like electronics.

    The business community conducts a religious ceremony of their account books to celebrate the beginning of the traditional business new year. This time is considered particularly auspicious to begin new projects and make new investments.

    The Dalal Street’s stockbroking community has been practicing ‘muhurat trading’ on Diwali to celebrate a fortunate start of the new year. Investors place token orders to hold for a long period of time and traders book intra-day profits which normally allows the Sensex to close on a positive note due to high trading volumes.

    The festival of Diwali is followed by the wedding season – adding to the euphoric shopping mood prevailing within the country. The shopping frenzy is fed by irresistible limited-period offers and mega discounts offered by brands through omnichannel marketing.

    2020 – The Demarcation Year

    The year 2020 will undoubtedly go down in history as the time when the world stood still due to the COVID-19 pandemic. For more than six months, the global lockdown wreaked havoc on the economy, with businesses being shut down and people retreating to the safety of their homes.

    As restrictions eased, the world slowly came back to life and the struggle for normalcy began in earnest. In many ways, it was a kind of re-emergence of the human race. A demarcation of sorts. Since then, everything has been segregated into pre-pandemic and post-pandemic, including the retail sales market, especially for festival shopping.

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    Diwali Sales Analysis

    The beginning of eCommerce in India can be traced back to 1995 with the introduction of the Internet. The first wave of eCommerce in India was slow, inefficient, and had low consumer acceptance. After the dot-com bubble burst in 2000, the eCommerce business in India was muted and low-key. It was only after 2005 that the eCommerce business developed significantly, especially in the areas of retailing, group purchasing, traveling, and societal interaction.

    As the online shopping phenomenon penetrated new markets and reached wider audiences, the heavyweights of the industry like Amazon, Flipkart, and Myntra became more and more aggressive in their discounts and sales. Festival sales became a large phenomenon, with most sales timed around the Diwali season.

    Since the eCommerce industry gained a sturdy foothold in India, Indian eTailers have given their customers a big reason to celebrate with whopping discounts, limited-time deals, and easy payment options during the Diwali season. Indian online shoppers have always shown consistent loyalty to discounts and deals—a fact not missed by eTailers.

    Pre-Pandemic Diwali Sales

    The year 2018 saw the eTailing industry rake in a GMV of INR 15,000 crores between the Diwali sale period of one week – October 9th to October 14th. This was a steady growth from INR 5,300 crores in 2015 and INR 11,200 crores in 2017. Leading the eCommerce industry for the festive season were Flipkart and Amazon, closely followed by Snapdeal and Myntra. The festive discounts were primarily driven by the sales of mobiles and fashion verticals, which grew by 70% and 78% respectively from the previous years. Other categories that witnessed significant shopping were electronics, women’s and men’s fashion, and furniture.

    The year 2019 saw a continuation in the growth of Diwali online sales. The total earnings for eTailers for Diwali 2019 touched an all-time high of INR 35,000 crores. Product categories like mobiles, large appliances, home dĂŠcor, and electronics saw a surge in demand. Other categories like beauty, food, health, fashion, and clothing also saw a demand increase for the festive season. Apart from this, eCommerce companies were also incentivizing customers through multi-media access like mobiles, tablets, and laptops.

    Post-Pandemic Diwali Sales

    March 2020 sent the world into hiding in a bid to survive the biggest health crisis. As life re-adjusted to new norms, newer trends emerged, both professionally and personally. Ecommerce became the preferred shopping method even as offline stores struggled with restrictions.

    The festive Diwali season for this year was dictated by affordability and ease of access to a wide assortment of products. In a bid to make up for losses during the long lockdown period, eCommerce players held multiple sale events around Dussehra and Diwali. The response from their customer base surpassed estimated figures to reach INR 58,000 crores, recording a 65% surge from the previous year. Flipkart and Amazon accounted for the lion’s share of 88% of the entire Gross Merchandise Value (GMV).

    Mrigank Gutgutia, Director of the research firm Redseer said, “The overall growth story has been very bullish this festive season. We had foreseen USD 7 billion of sales but the actual figures surpassed our expectations fairly comfortably, showing how comfortable consumers have become with shopping online even in this pandemic hit year. And it has proven that with the right assortment at the right prices which is delivered quickly in the safety of customer’s homes, the value proposition of eCommerce is very powerful.”

    The Redseer report also noted that a large chunk of online shoppers came from tier II and beyond cities. Interestingly, the fashion segment demand dropped in 2020 and demand for categories like home and home furnishings increased due to an upgrade in the work / study-from-home environment.

    As time went by and 2020 dawned into 2021, the journey to normalcy gained momentum with vaccination drives being held throughout the country. Despite inflation and the ongoing pandemic, eCommerce companies were ploughing the way for higher sales and further growth and the Indian consumers did not disappoint. 2021 Diwali saw decade-high sales figures of INR 125,000 crores. As with the previous year, the highest-selling categories were home furnishings and food clocking an increase of 42% and 18% respectively. Items such as earthen lamps, candles, footwear, watches, toys, consumer durables, electronics and kitchen articles, and accessories were the most selling items on Diwali. eCommerce players saw a 5X growth and clocked 3 crore orders in the pre-sale and sale periods combined.

    Diwali Spending Index: An Indicator of the Spending Intent Among Indian Consumers
    Diwali Spending Index: An Indicator of the Spending Intent Among Indian Consumers

    For 2022, Diwali sales figures soared even higher as consumers were all set to welcome the festive season enthusiastically. The heavyweights of the eCommerce industry are well-equipped to meet the high demand of the festive season as people wait for the next sale dates to be announced.

    As per Redseer’s report, INR 24,500 crore (USD 3.5 billion) in sales were registered for the first 4 days (22nd–25th Sept) of the first festive sale event of Diwali 2022. This figure contributed to 60% of the projected GMV for festive sale 1, showing a 1.3x growth compared to the previous year, which contributed to 59% of the projected GMV.

    According to the 2023 RedSeer report, the festive season boosted the Indian eCommerce platforms, with sales totaling approximately INR 90,000 crore. This represents a significant 18%-20% increase from the previous year, driven by an estimated 140 million online shoppers. These festive season sales almost contributed around 17% to the overall annual eCommerce sales for the year 2023.

    Ecommerce Festive YoY Growth%
    Ecommerce Festive YoY Growth%

    According to a RedSeer report, during the 2024 festive season, eCommerce is expected to generate over INR 100-120 thousand crore in gross merchandise value (GMV), which is a big increase from last year.

    This rise in eCommerce sales is driven by a few key factors:

    1. Pent-up Demand: Especially in categories like mobiles and electronics, where people tend to wait for festive deals. Fashion demand has been slower this year but is expected to pick up.
    2. Premium Products: Brands are offering premium products at discounted prices to encourage shoppers to buy high-end items.
    3. New and Trendy Items: New products and limited-time ranges, especially in fashion, will be launched during the festive season to attract shoppers.
    4. Steady Growth: Ongoing growth in segments like beauty, personal care (BPC), and quick commerce (q-commerce), with a boost during the festive period.

    Looking Back at E-commerce Diwali Sales from 2010 to 2024
    During the 2024 festive season, eCommerce is expected to generate over INR 100-120 thousand crore in gross merchandise value (GMV), which is a big increase from last year.
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    Reasons for Successful Diwali Online Sales

    The shift to online shopping, especially during the COVID-19 pandemic has been one of the strongest catalysts fuelling the online Diwali sale drive. There are moreover, a few other reasons due to which Diwali festival sales are seeing steady year-on-year growth.

    Preferred Mode of Purchase by Indian Households for Their Festive Season Shopping

    Etailer Initiatives

    Online eTailers are employing tools like flash sales, card offers, free delivery, and no-cost EMIs for large ticket purchases. These tools make it easy for customers to make their purchases. Flash sales often trigger impulse buys by customers, especially on first-time products which are, usually, not discounted. Added to this are the special rewards attached to specific credit cards which further add to the deep discounts and offer extra cashback. These initiatives are coupled with easy exchange/return policies and extended warranties, which are difficult to resist and convert into successful sales.

    Top Wallet & Bank Card Offers

    eTailers enter into strategic partnerships with banks like HDFC, SBI, ICICI Bank, Standard Chartered, American Express, etc. They then offer exclusive privileges and financial benefits to their customers.

    Personalized Product Feed

    The shopping history of a consumer is an information mine for the eTailer. They track the shopping habits of the consumer and based on shopping preference, feed the customer with product details and oncoming deals through their social media, WhatsApp, etc.

    Amazing Deals

    Thanks to low prices and amazing offers, Flipkart and Amazon continue to grab attention. Flipkart’s big Diwali sale offered discounts on TVs, appliances, wearables, tablets, smartphones, and more for five days.

    Similarly, Amazon’s Great Indian Festival sale offered big discounts on a wide range of products. Both sales attracted a lot of customers with eye-catching deals and huge savings on many items.

    Diwali Marketing

    Diwali marketing is when businesses create special offers and ads during the festival to attract customers. They use bright and festive themes to get people’s attention. Brands offer discounts and deals on products like clothes, electronics, and gifts. This helps them sell more and make the most of the shopping season during Diwali.

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    Conclusion

    What was just a decade ago, a traditional industry with customers shop-hopping on particular sale days or weekends has become a finger-trigger industry that allows customers the convenience of shopping from the comfort of their homes.

    It is no wonder, then, that the eCommerce industry has gained popularity and has become the preferred medium of shopping. There is no doubt that it has better market penetration, a better product catalog on one platform, and, in some cases, better deals to offer the customer.

    FAQs

    What are the reasons for successful Diwali sale online?

    Some of the most popular reasons for successful Diwali sale online are:

    • Etailer Initiatives
    • Top Wallet & Bank Card Offers
    • Personalized Product Feed

    What sells the most on Diwali?

    Items such as sweets, dry fruits, earthen lamps, candles, clothing, home decor, footwear, watches, toys, consumer durables, electronics, and kitchen articles and accessories sell the most on Diwali.

    What is 2025 Diwali date?

    Diwali would be celebrated from 18 Oct–23 Oct in 2025.

  • Puma vs Adidas: Exploring the Battle of Two Iconic Sportswear Brands

    Two well-known sportswear brands, Puma and Adidas, have made a big impact on the athletic and lifestyle fashion sectors. Even though they both come from Germany, they have different strategies for branding, marketing, and design in the competitive sportswear market.

    Puma is famous for its creative designs and partnerships with influencers and celebrities. They focus on mixing sports with lifestyle. On the other hand, Adidas is known for its popular lines like Adidas Originals. They stay strong in both professional sports and casual wear because they prioritize technology and performance.

    In this article, we’ll explore the story behind these iconic brands. We’ll provide a comparison of their business strategies, market positioning, and innovative approaches. Let’s see what has shaped their success in the global sportswear industry.

    How Did It All Start? The Rivalry Between the Two Brothers
    Adidas vs Puma: Business Model
    Adidas vs Puma: Brand Identity
    Adidas vs Puma: Marketing and Sponsorships
    Adidas vs Puma: Research and Development Lab
    Adidas vs Puma: Financials
    Adidas vs Puma: The Real Battle
    Puma and Adidas Today

    How Did It All Start? The Rivalry Between the Two Brothers

    The rivalry between two brothers – Puma vs Adidas

    The turbulent story of the family of entrepreneurs starts in the small German town of Herzogenaurach, Germany. It was here that the Dessler Brothers, Adolf (“Adi”) and Rudolf (“Rudi”) Dassler founded and successfully ran a shoe shop together in the early 1920s. In 1919, they founded the shoe manufacturing company GebrĂźder Dassler Schuhfabrik, or Geda for short. 

    The Olympics and the success of Geda

    Jesse Owens - Puma vs Adidas
    Jesse Owens – Puma vs Adidas

    Despite the challenging political landscape in Germany during the 1930s and 1940s, Geda achieved success. It was demonstrated in the 1936 Olympics where the legendary African-American runner Jesse Owens wore Geda shoes as he won a gold medal.

    With the Olympic win, the sales of the Dassler Shoe grew. However, their relationship soured due to tensions, conflicts, and personal issues, eventually leading to the dissolution of their partnership in 1948. \

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    The Birth of the Two Brands

    Birth of the two brands - Puma vs Adidas
    Birth of the two brands – Puma vs Adidas

    In 1949, Adolf Dassler founded Adidas, while Rudolf Dassler started Puma. They moved to different sides of the Aurach River and gave employees the choice of whom they wanted to work for. This marked the rise of two global brands and the beginning of a fierce battle for dominance in the international sports market. The brothers sued each other many times over the years over all sorts of Design and Trademark issues. This cost each other a fortune in lawyers and suits.

    The PelĂŠ Pact

    Pele pact - Puma vs Adidas
    Pele pact – Puma vs Adidas

    “The PelĂŠ Pact” was an arrangement signed by Armin Dassler (the son of Rudolf Dassler) of Puma and his cousin Horst Dassler (Adolf’s son) a few months before the 1970 FIFA World Cup. PelĂŠ was off limits to Adidas and Puma according to this agreement, which felt that a bidding battle for the world’s most famous athlete would get too expensive. However, Puma broke the deal and signed PelĂŠ.

    The most significant development in the rivalry between the Dassler brothers was the “PelĂŠ Pact” breach, which angered Horst and led to the cancellation of further peace negotiations.

    Now, let’s move into a comparison of Adidas and Puma, examining their business models, brand identities, and marketing strategies to better understand how each brand positions itself in the market.

    Adidas vs Puma: Business Model

    Business Model - Puma vs Adidas
    Business Model – Puma vs Adidas

    When we discuss Adidas, it has a very value-driven company strategy, therefore producing high-quality goods that offer customers the most value comes first. This covers costs related to production and manufacturing, distribution and storage, and research and development. Adidas appeals to more people than only professional athletes and sports fans, even if its primary focus is on sportswear and footwear. Adidas outsources the production portion of their company to independent contractors, to whom they rely heavily. As a result, the more than 1,000 suppliers—the majority of whom are based in Asia—who make their clothes and footwear lines are their most important business partners.

    Conversely, Puma’s business strategy is centered on offering items that are performance-driven and stylish. Puma provides its clients with a variety of value propositions, ranging from performance, innovation, style, sustainability, brand legacy, quality, and durability, to sports and lifestyle.

    Sportswear, footwear, accessories, performance gear, lifestyle collections, and sustainability initiatives are some of Puma’s main offerings. Athletes, fitness enthusiasts, fashion-conscious consumers, youth markets, sports teams, and environmentalists are among the primary customer sectors that it focuses on. Product sales, licensing and brand collaborations, performance gear sales, lifestyle collections, online sales, and sustainability initiatives are some of the ways it makes money.

    Adidas vs Puma: Brand Identity

    Brand Identity - Puma vs Adidas
    Brand Identity – Puma vs Adidas

    A brand needs to communicate well with its customers and create a sense of belongingness. Adidas is well-known for its recognisable three-stripe emblem and is frequently linked to performance, innovation, and collaborations with athletes and sports organisations.

    Conversely, Puma is well-known for fusing sports and lifestyle fashion and for its eye-catching leaping cat emblem. The company is well-known for both casual and sporty clothing.

    Adidas vs Puma: Marketing and Sponsorships

    Marketing and Sponsorships - Puma vs Adidas
    Marketing and Sponsorships – Puma vs Adidas

    Adidas and Puma have both become well-known sportswear businesses by utilising a variety of marketing techniques. Adidas and well-known athletes and sports organisations have a history of strategic alliances. This includes international collaborations with groups like Manchester United and long-term connections with football players such as Lionel Messi. 

    Adidas has effectively combined sports and lifestyle by working with celebrities, fashion designers, and artists to produce one-of-a-kind collections. It stays active on social media, interacting with users through eye-catching posts, new product announcements, and marketing initiatives.

    Puma has purposefully partnered with influencers and celebrities, like Kylie Jenner and Rihanna, to develop exclusive designs. These collaborations enhance Puma’s reputation as a pioneer in the sports and lifestyle domains. Puma frequently presents itself as a brand that appeals to younger consumers by highlighting current trends and cultural significance.

    Puma is a sponsor of several teams and sporting events, including football teams like Borussia Dortmund and AC Milan. This tactic upholds Puma’s reputation for performance and athleticism. Like Adidas, Puma capitalises on the allure of limited-edition products. This scarcity marketing strategy piques customers’ interest by evoking a sense of urgency and exclusivity.

    Adidas vs Puma: Research and Development Lab

    R&D - Puma vs Adidas
    R&D – Puma vs Adidas

    The company’s research and development (R&D) initiative, Adidas Future Lab, has made progress in preparing the technologies that athletes will need in the future. Since 2010, the lab has improved athletes’ lives via the use of advanced robotics, 3D scanning, motion analytics, and other technologies.

    Adidas has practically transformed into a tech corporation with its rising R&D expenditures. In 2022, the Adidas Group spent approximately 153 million euros on research and development.

    To foster creativity and provide top-notch goods for athletes and customers, PUMA maintains specialised research and development facilities. Situated in Boston, Massachusetts, USA, the PUMA NITRO Lab is one of their cutting-edge labs. The lab collects information to support data-driven decisions on every facet of PUMA footwear.

    Since 2013, the sportswear brand Puma has significantly boosted its investment in research and development. The corporation invested heavily in 2022, allocating over 80 million euros towards research and development.

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    Adidas vs Puma: Financials

    Financials - Puma vs Adidas
    Financials – Puma vs Adidas

    For a thorough comparison between Adidas and Puma, the financials have to be presented. In 2023, Puma reported revenues of €8.6 billion, showing a modest increase from €8.47 billion in 2022. This steady growth highlights Puma’s resilience in a competitive market.

    Adidas Group, meanwhile, generated €21.43 billion in 2023, a decline from €22.51 billion in 2022. The dip in Adidas’ revenue reflects some challenges the brand faced over the past year, possibly due to shifting consumer trends or increased market competition. Despite this, Adidas remains significantly larger in terms of overall revenue compared to Puma.

    Adidas vs Puma: The Real Battle

    Market share pie chart - Puma vs Adidas
    Market share pie chart – Puma vs Adidas

    Both brands are competing with each other to be at the top and to gain their market share. One of the greatest assets that Adidas has is that of innovation. This is demonstrated by the numerous ground-breaking technological innovations it has made, like BOOST and Primeknit, which have increased sales and enhanced its market value. The corporation operates in more than 160 countries and has a strong global footprint. Due to its extensive distribution network, which consists of partnerships with individual merchants, online retailers, and physical stores, it can reach a wide range of markets and geographical areas.

    Adidas has a broader range of products than some of its competitors, but its product lineup is still smaller. Adidas outsources a large portion of its manufacturing to facilities in countries where labour costs are lower. This strategy might save money, but it also puts the company at risk for issues like unsafe working conditions, labour law infractions, and supply chain disruptions.

    Puma has a lengthy history in the athletic industry and is a well-known brand throughout the world. Its e-commerce sites, retail locations, and independent retailers make up a sophisticated distribution network. Despite being a well-known brand, Puma’s market share is significantly lower than that of leaders in the industry like Adidas.

    Puma manufactures a large number of its items in nations like China, Vietnam, and Indonesia, utilizing a worldwide supply network. Increased manufacturing costs, delays, or shortages may result from supply chain disruptions caused by events like trade disputes, natural catastrophes, or unstable political environments. Counterfeit products also hurt Puma and Adidas’s sales and brand reputation in the worldwide sportswear market.

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    Puma and Adidas Today

    CEO's of Puma and Adidas - Puma vs Adidas
    CEO’s of Puma and Adidas – Puma vs Adidas

    Today Herzogenaurach is still home to Adidas and Puma. Since 1986, Puma has been a publicly traded business, having gone public on the Frankfurt Stock Exchange. Along with Adidas, Puma is one of the leading shoe brands and has over 18,000 employees globally.

    Adidas reported their highest-ever revenues by year’s end, and CEO Herbert Hainer was upbeat about the upcoming year. Adidas currently operates numerous company locations across the globe, including London, Portland, Toronto, Tokyo, Australia, Taiwan, and Spain, in addition to its worldwide corporate headquarters in Herzogenaurach, Germany. The first mobile reservation app for the footwear industry was released by Adidas in January 2015. Using geo-targeting technology, customers may reserve and obtain access to the brand’s limited-edition trainers through the Adidas Confirmed app.

    Concluding Thoughts

    The sports sector has been significantly impacted by the competition between Puma and Adidas. These companies have grown to be worldwide giants and have influenced sports marketing. The Dassler brothers’ intense rivalry lasted until their deaths despite their achievements, establishing a legacy of rivalry and hatred. Today, both brands continue to lead the global athletic market, always finding new ways to improve. Their competition drives innovation in sportswear technology. This helps them maintain a strong presence in key markets and keeps their influence strong in the sports industry.

    FAQ

    What is Adidas’ full form?

    Adidas doesn’t have a full form; it’s named after its founder, Adolf “Adi” Dassler, combining his nickname and last name.

    Who is the CEO of Adidas?

    The current CEO of Adidas is Bjørn Gulden, who took over the role in 2023.

    What is Puma’s full form?

    Puma doesn’t have a full form; the brand is named after the puma, a wild cat known for its speed and strength, reflecting the company’s focus on athletic performance.

    Who is the CEO of Puma?

    Arne Freundt is the CEO of Puma, having taken over the role in 2022. He leads the company’s global operations and continues to drive Puma’s growth in the competitive sportswear market.

    Who is richer, Adidas or Puma?

    Adidas is generally considered richer than Puma in terms of revenue and market share. Adidas consistently reports higher annual revenues and has a larger global presence compared to Puma in the sportswear industry.

  • The Art of Doing Nothing: An Analysis of Cadbury 5 Star’s “Do Nothing” Campaign

    Conceptualizing the 5 Star chocolate bar’s classic tagline “Do Nothing” has been reimagined, which takes it to a whole other level. Ogilvy has made history time and again with its amazing ad campaigns.

    There’s this common belief that brands need to go out of their way and have a big budget for you to get there. But this time Ogilvy, Mumbai grabbed everyone’s attention when they collaborated with the chocolate brand from Mondelez India.

    When we are already bombarded with loads of ads every festive season, we also see a spike in advertising spending, when it’s around the corner. But 5 Star decided to take a different route, do the opposite, and spend no money on advertising this season.

    Cadbury 5 Stars has changed its brand tagline to “Do Nothing” since December 2019 for which the initial campaigns have received backlash for the insensitive portrayal of the youth and failed to amuse. But Ogilvy really worked its magic with this one garnering views and likes on the YouTube platform‌‌.

    Cadburys 5 Stars Everywhere, Eat 5 Star, Do Nothing campaign series

    Reasons Behind the Success of Ogilvy’s 5 Star Campaign #Donothing
    Nothing University by 5 Star
    #Donothing Campaign by 5 Star
    #5StarsEverywhere by Ogilvy
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    Who Is David Ogilvy?
    Top 5 Coolest Ads by Ogilvy and Mather

    Reasons Behind the Success of Ogilvy’s 5 Star Campaign #Donothing

    Cadbury 5 Star Do Nothing Campaign

    Creativity and Simplicity

    A simple tweak in the logo made the long-term impact of making a statement. Reinforcing the tagline, standing by it, and cutting through the clutter of every other brand.

    Humor

    The punchline is well delivered at the end of the campaign with them stating that they didn’t even spend any money on an actor and the person chosen to be captured for the ad is an intern.

    Brand Recognition

    Brand recognition is the capacity of the consumer to be able to recognize a brand after they were exposed to it at any given point of time in their lives. Now, Cadbury 5 Star has already made that possible with the do-nothing capacity.

    Brand Recall

    They have also brilliantly aimed at increasing brand recall. That is by tweaking their logo this time. Cadbury 5 star belongs to the category of chocolates. Now that the logo is simply 5 stars, they want you to remember the bar of Cadbury 5 stars when you leave a review or rating on any app as almost every app has this feature. Cadbury 5 star is aiming to stay at the top of consumers’ minds when the word chocolate pops up.

    Nothing University by 5 Star

    Conceptualized by Ogilvy, 5 Star has recently launched a humorous ad campaign called “Nothing University,” poking fun at AI’s growing role in the workplace. The ad opens with a young man studying coding in a library, only to discover that AI can now handle coding and design tasks. Realizing the impact of AI on jobs, he’s introduced to 5 Star’s “Nothing University,” which offers courses like “Pretending to be Busy” and “Buying Time.” The campaign encourages viewers to enjoy doing nothing as AI takes over more tasks. It ends with the fun slogan, “Eat 5 Star, Do Nothing,” meaning that AI will do the work, giving people more time to relax. The ad invites everyone to sign up at www.5staruniversity.com, promoting Nothing University as a lighthearted way to learn how to embrace idleness.

    Nothing University by 5 Star

    #Donothing Campaign by 5 Star

    The do-nothing campaign started in the year 2017 as it moved on from the famous humorous campaigns from the characters: Ramesh and Suresh. With the key message “5 Star khao, aur kho jao” which was a hit. Apart from these, other campaigns were run by 5 stars but failed to have such an impact on the crowd.

    Cadbury 5 Star Do Nothing Advertisement

    The campaign “Eat 5 Star, Do Nothing” involves the ad in which a school-going young boy on the bus stops with an elderly woman requesting the boy to give her the stick that she dropped by mistake. However, the boy forgets the request as soon as he takes another bite of the 5 stars making the old woman get up from her seat in order to pick up her stick.

    Coincidently, the piano falls on the seat the woman was sitting in. Witnessing the events, the old woman goes forward to thank the guy for doing nothing. The 5 Star wanted to convey the message that doing nothing can be good too.

    However, the campaign gained a lot of bad public ratings and made a negative impression on social media as well. The campaign was misinterpreted as the audience took it as promoting a laid-back attitude among the youth.

    The message seemed not to make it to the expected target audience. People were not happy with the ad and it faced a lot of backlash.

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    #5StarsEverywhere by Ogilvy

    New 5-star logo
    New 5 Star logo

    In 2022, when brands were spending lavishly to enhance their advertisement strategies, Cadbury 5 Star actually did nothing and still captured first place in the market.

    The most basic thing they did was to change the 5 Star’s logo which created an opportunity to allow every mobile app in the world to advertise for them for free. Yes, 5 stars are doing nothing to advertise. Consequently, this is why the #5StarsEverywhere is the most successful campaign in advertising history.

    5 stars everywhere received a positive response from the audience. People loved it and it was a success. The ad went viral and was searched by many. It was trending in no time.

    Moreover, this campaign was able to change the feelings of the people towards the brand, create a positive feeling associated with it, and turn it into a success. This was a great step taken by Cadbury 5 Star to re-introduce their #donothing series but with a positive impact.

    Audiences' positive reaction to 5 Stars Everywhere ad campaign
    Audiences’ positive reaction to the 5 Stars Everywhere ad campaign

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    Who Made the Ad Campaign for Cadbury 5 Stars?

    One of the biggest companies and digital agencies in India team Ogilvy, Mumbai teamed up with Cadbury to create the chocolate bar’s classic tagline “Do Nothing”.

    Ogilvy Mumbai bagged 3 Bronze awards for various works. Ogilvy was started by the founders David Ogilvy and Edmumd Mather in the year 1948, a company of giants that has been inspiring people and creating impact with brands.

    David Ogilvy is also known as the father of advertising and the best advertiser of all time. What started as an office at one location now continues the rich legacy of David Ogilvy across 93 countries. The agency’s area of work includes Public Relations, Consulting, Advertising, Health, and Experience.

    Who Is David Ogilvy?

    David Ogilvy - The Father of Advertising (1911-1999)
    David Ogilvy – The Father of Advertising (1911-1999)

    Ogilvy, who was a Scottish immigrant, turned a businessman when he started his first company. Known as the father of advertising. He was a salesman, chef, farmer, researcher, and Mi6 member.

    Followed by this one statement, that change was his first rule. The books he has written include Ogilvy on Advertising, Confessions of an Adman, Scientific Advertising, etc.

    He also has a reputation for his copywriting skills and has written iconic advertisements for the legendary Man in the Hathaway Shirt, Schweppes, Rolls-Royce, and Puerto Rico, among others.

    Top 5 Coolest Ads by Ogilvy and Mather

    Ogilvy stands for unfolding creativity, innovating, and combining talent and capabilities. And the best part about it? It makes timeless advertisements in a world that is a complex, noisy, hyper-connected world. Let’s take a look at some of the coolest ads by Ogilvy and Mather, Mumbai.

    1. Good Luck Girls– Cadbdury

    #goodluckgirls campaign

    This ad created a lot of buzz on social media. It is based on the recreation of the Cadbury iconic ad ‘Asli Swad Zindagi Ka’ from 1994. Highlighting the representation of women and showing them in different spheres of life breaking barriers.

    The role reversal in the ad campaign is done to honor and celebrate the amazing achievements that young girls are accomplishing every day.

    2. Stop the Beauty Test – Dove

    doves #stopthebeatytest

    Dove stands for beauty that brings confidence. With this campaign, Dove brings out the real stories shared by the women who are rejected during the process of arranged marriage.

    Urging society to look beyond the beauty standards and not to judge women based on their tallness, slimness, and skin color. With the #StopTheBeautyTest.

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    3. Not just a Cadbury ad featuring Shahrukh Khan – Cadbury

    #notjustacadburyad featuring Shahrukh Khan

    This Cadbury Celebration Ad from 2020 featuring Shah Rukh Khan turns him into the brand ambassador for every local brand with artificial intelligence. Ogilvy along with Wavemaker made this campaign on the occasion of the festival of Diwali when businesses took a hit due to the pandemic.

    This thoughtful campaign again proved that Ogilvy still stands for David Ogilvy’s vision, which is to create big ideas that matter.

    4. My First Rakhi – Cadbury

    #MyFirstRakhi campaign by Ogilvy Cadbury

    Cadbury’s #MyFirstRakhi campaign brings attention to the experiences of differently abled individuals during the celebration of Raksha Bandhan, a traditional festival in India that celebrates the bond between siblings.

    The campaign tells the story of a sister who wants to tie a Rakhi, a symbol of their bond, around the wrist of her physically disabled older brother.

    This touching initiative highlights the importance of inclusivity and the need to make special accommodations for individuals with physical disabilities, allowing them to fully participate in the joy and celebration of the festival.

    Cadbury’s commitment to spreading joy and generosity is evident in this campaign, which seeks to make Raksha Bandhan a more inclusive and accessible event for all.

    5. The shower – Hindustan Unilever

    The shower

    The ‌Hindustan Unilever’s “The Shower” is a powerful film that highlights the importance of clean water in remote Indian villages. In many of these areas, water is a scarce resource and a simple luxury like taking a shower can be transformative.

    The film is part of Hindustan Unilever’s “Start a Little Good” initiative, which aims to improve sanitation and hygiene across India. By bringing clean water to these communities, Hindustan Unilever is helping to improve the quality of life for people in remote areas and promoting overall public health.

    Conclusion

    The “Do Nothing” campaign by Cadbury 5 Star is a marketing campaign that encourages people to take a break from their busy lives and indulge in a delicious, chocolatey treat.

    The campaign highlights the idea that sometimes, doing nothing can be a good thing and that taking a few moments to treat yourself can help you recharge and refresh. The Do-Nothing series from Cadbury 5 Star has progressed to be a success.

    FAQs

    What is Cadbury 5 Star’s “nothing coin”?

    Cadbury has launched a new type of crypto coin that can be mined when a person does nothing on their mobile phones.

    What is 5 Star do nothing mode?

    Cadbury 5 Star do nothing mode is a setting that can be applied to any mobile by saying “Ok Google, Eat a 5 Star” to the Google Assistant. With this command, the Google Assistant will not do any work nor will it allow the user to do hard work.

    What is the slogan of 5 Star?

    The slogan for Cadbury 5 Star is “Eat 5 Star, Do Nothing”.

  • How Gucci’s Focus on Trendy Fashion Hurt Its Long-Term Brand Success

    The luxury world is shifting and it’s all about “quiet luxury” now—think understated elegance and functionality over flashy logos. Brands like Stone Island are already riding this wave, focusing on minimalism and anti-fashion trends. While big names like Dior and Chanel have adapted to this new vibe, Gucci’s been slow to adjust. Their focus on hype and trends worked for a while, but now it’s starting to hurt them. As more consumers go for subtle, high-end pieces, Gucci’s gamble on staying trendy could be putting its long-term success at risk. 

    Gucci Faces Challenges in Brand Positioning Amid Leadership Changes

    Gucci’s struggles with brand positioning have become painfully clear to everyone involved. In 2023, Kering brought in new leadership with CEO Jean-François Palus and designer Sabato De Sarno, hoping to shake things up. But despite these changes, Gucci’s fortunes haven’t improved much and the brand is on track for another tough year; with revenue expected to drop by nearly 20% in the second half of 2024. It’s evident that Gucci needs a major overhaul and rethinking its brand positioning should be top of their list.

    Gucci Faces a New Challenge: Embracing Functionality in Luxury Fashion

    Moncler CEO Remo Ruffini has recently talked about what he calls the rise of “new luxury”—a mix of luxury fashion with culture, music and especially sports. Stone Island is already embracing this “anti-fashion” approach, focusing on functionality over style. This shift is part of a broader trend towards minimalist, “quieter luxury,” which has been gaining traction, particularly in athleisure.

    The market seems to be craving something different from the flashy, affordable options offered by brands like Nike and Lululemon. As consumers increasingly lean towards subtle, high-end athleisure, there’s a growing gap for prestigious sportswear. The demand for luxury in this space is real and expanding. This is an opportunity Gucci could capitalize on if it can pivot away from its current trend-focused approach.

    Gucci’s Trend-Driven Strategy Faces Pressure Amid Luxury Market Slowdown

    In 2023, the luxury market hit a bump, growing by just 4%—a sharp drop from the 20% boost it enjoyed the previous year. While heavyweights like Dior, Chanel and Hermes have managed to stay on top, Gucci’s strategy of chasing trends and collaborations has put it in a tricky spot. This slowdown isn’t just a blip; it’s partly due to the hurdles luxury brands are facing with their big bet on China.

    With more and more brands flooding the Western luxury scene, the competition has become fierce and those deep-pocketed buyers are now fewer and farther between. Gucci has built its reputation on trendy, buzz-worthy items and flashy partnerships, targeting these aspirational shoppers. However, with inflation squeezing wallets and these buyers pulling back, Gucci’s reliance on hype-driven sales is starting to backfire. Unlike the classic allure of Dior, Chanel or Hermes, Gucci’s trend-chasing approach might be costing it long-term brand loyalty and success. As the luxury landscape shifts, Gucci’s gamble on staying ahead of the fashion curve could be leaving it out of touch with the true essence of luxury.

    Traditional luxury shoppers, who stick with high-end brands through thick and thin, haven’t been swayed by rising costs or economic uncertainties. But the same can’t be said for the aspirational buyers—those who dabble in luxury as a treat but cut back when times get tough. Kering Group’s top three brands—Gucci, Yves Saint Laurent and Bottega Veneta—Gucci has hit the hardest, with a 6% revenue drop during the first quarter of 2024. This is quite a blow for what’s considered Kering’s flagship fashion house, as Gucci traditionally brings in over 50% of the company’s annual revenue. Given its status as a giant in the luxury world, Gucci’s struggle raises serious questions about Kering’s future growth. To make matters worse, Kering’s stock price has nearly halved over 2023 and the first quarter of 2024 (April), dropping from a high of €603 to €383.

    Global Revenue of Gucci 2012 to 2023
    Global Revenue of Gucci 2012 to 2023

    Why Gucci’s Strategy Shift is Hurting the Brand

    The brand’s trouble boils down to its shifting approach. In the past, Gucci thrived by keeping production limited and maintaining its aura of exclusivity. It catered to high-income individuals who valued Gucci’s rich heritage. But nowadays, Gucci seems to have pivoted towards a more premium, aspirational market. The brand has shifted its focus to younger shoppers and started mass-producing its goods. Millennials, aged 25-35, now represent the bulk of Gucci’s customer base.

    Adapting to the Post-Pandemic Landscape

    Gucci’s pre-pandemic strategies have become outdated, forcing the brand to rethink its approach in the new normal. To stay afloat during tough times, Gucci had to adapt its operations, including ramping up its eCommerce efforts—a shift the pandemic underscored as essential for survival in the fashion industry. This period acted as a wake-up call, showing Gucci the critical importance of online platforms.

    For Gucci, building and maintaining a luxury brand goes beyond high price tags. It’s about creating exclusivity and attracting the right people—those who set trends and create a “taste hierarchy.” Traditional marketing methods just don’t cut it in the luxury space. According to a benchmarking study by Kapferer and Bastien (2012), luxury brands succeed slowly, often through trial and error and they use marketing techniques that are totally different from the fast-moving consumer goods (FMCG) playbook.

    Now, with digital technology coming into play, the luxury shopping experience is about to get a major upgrade. Virtual reality (VR), augmented reality (AR) and artificial intelligence (AI) are reshaping how people shop for luxury items, offering more immersive and personalized experiences. A McKinsey & Company survey from 2023 revealed that 60% of luxury shoppers are open to brands that provide these kinds of digital experiences.

    While Gucci has made progress in integrating technology, competitors like Burberry and Balenciaga are ahead of the curve, using AR to offer virtual try-ons and AI to tailor product recommendations, setting a new standard in the digital luxury shopping landscape.

    Digital Marketing Challenges

    Like other top brands, Yves Saint Laurent,  has gone all out with their marketing strategy. They dive into digital promos, video campaigns, social media and even run contests. A great example is how they use YouTube to connect with their audience, promote the brand and reinforce their iconic image. It’s all about using these platforms to keep YSL fresh and relevant in the fashion scene.

    However, one downside for Gucci is that while many lower-priced premium brands pump money into digital marketing to expand their reach, Gucci risks falling behind if they don’t do the same. Another challenge is the rise of counterfeit Gucci goods flooding lower-income markets, along with growing competition from emerging luxury brands and cheaper alternatives. With economic pressures causing a dip in consumer spending, some might start opting for more affordable luxury options over Gucci.

    Marketing Strategies of Gucci: Where Luxury Meets Style
    Gucci owes its tremendous success not only to its impeccable craftsmanship and innovative designs but also to its ingenious marketing strategies.
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    The Shift to Online Shopping

    Despite a shift towards digital, the fashion industry, including Gucci, has been somewhat slow in transitioning from its traditional brick-and-mortar model. For years, luxury brands like Gucci, Louis Vuitton and Prada relied heavily on their physical stores to serve their affluent clientele. But once they saw that their customers were finding inspiration and making purchases online, they knew it was time to adapt.

    While Gucci has made some strides, brands like Chanel have excelled in seamlessly translating their classic elegance into the digital realm by mastering the art of creating unique, high-quality content for a social media-savvy audience, further solidifying their online presence as a leading luxury brand.

    Furthermore, on the eCommerce front, Chanel’s partnership with Farfetch, a top online luxury retail platform, has strengthened their connection with shoppers and enhanced the overall user experience for both customers and store staff. By embracing more digital tools, Chanel is not only optimizing customer engagement but also streamlining its operations. Gucci, while progressing, has room to further enhance its digital strategy to compete at the forefront of luxury in the online marketplace.

    Test of Endurance

    Recent marketing strategies and social media campaigns have been aimed at engaging these aspirational buyers, who are more active online. However, this shift has come at a cost. Gucci’s designs have become more about fleeting trends than enduring style, diluting the brand’s once timeless prestige. In contrast, competitors like Chanel and Dior have stuck to their classic, enduring designs, which has helped them weather the storm better.

    As far as creating groundbreaking marketing strategies, Giorgio Armani is famous! He was actually the one who popularized the “zero figure” model trend, hiring only super slim models to showcase his clothes. Armani also made history by being the first to stream a fashion show live on the internet, turning it into a global event. His brand’s reach extends far beyond fashion. Armani has partnered with premium car brands to design ultra-luxury interiors and is a go-to designer for celebrities like Lady Gaga. He’s even created outfits for entire sports teams. These high-profile collaborations have kept the Armani brand synonymous with glitz and glamor.

    Maintaining a Premium Image

    Interestingly, Gucci isn’t big on traditional advertising. They don’t need to be, thanks to their unique image and exclusive product lines. Instead, they focus on personalizing the customer experience. The brand has been all about understanding what their customers want and delivering just that from its very inception.

    With top-tier materials and craftsmanship, Gucci’s prices are high, but people are willing to pay for that level of quality. To maintain their luxury status, Gucci avoids discounts or sales altogether, reinforcing their premium image.

    While Gucci emphasizes personalization, Louis Vuitton excels at staying ahead of trends, employing both demographic and psychographic strategies to deeply understand its customers. They’ve nailed a unique targeting approach that keeps up with the changing needs of their clients.

    To draw in new buyers, they focus on value-based marketing. Their motto, “The Art of Travel,” taps into the idea that travel is more than just a journey—it’s an experience. Their iconic explorer trunks, like the Monogram Cloud and Monogram Mirror versions, showcase this blend of tradition and innovation, reflecting the brand’s adventurous spirit and craftsmanship.

    While Louis Vuitton attracts new buyers with innovative campaigns, Gucci continues to solidify its reputation by consistently delivering an elevated, personalized experience for its loyal, high-end clientele.

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    Conclusion

    Gucci’s focus on trendy fashion might be hurting its long-term success and this could be a sign of bigger challenges ahead for Kering. With revenue expected to further drop by nearly 20% in the 4th quarter of 2024, it’s clear that Gucci needs a major rebrand. If the brand can pivot towards more timeless, high-end pieces, there’s still a chance for recovery in this evolving luxury landscape.

    FAQs

    Who is the CEO of Gucci?

    Jean-François Palus is the CEO of Gucci since 3rd October 2023.

    What is the revenue of Gucci in 2024?

    In the first half of 2024, Gucci generated €4.1 billion in revenue, reflecting a 20% decline in reported figures and an 18% drop on a comparable basis. Sales from its directly operated retail network saw a 20% decrease on a comparable basis, while wholesale revenue fell by 9%.

    How many brands does Kering Group holds?

    Kering Group holds Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 as well as Kering Eyewear and Kering BeautĂŠ. Out of which Gucci is the biggest contributor in its revenue.