StartupTalky

Tag: 🔍Insights

  • Marketplaces Leverage Data: Powering Own Brand Launches

    In today’s digital era, eCommerce marketplaces like Amazon and Flipkart are making use of valuable data to launch their own brands, products, and services to capture the continually evolving retail landscape in India.

    The marketplaces own big data from across regions, customers, and platforms and utilize these informative details to introduce their own brands, which are more user-friendly, budget-friendly, and rightfully address the demands of customers. These successful brands like Solimo, Amazon Essentials, and Flipkart Smartbuy are becoming pioneers in fulfilling the customer’s needs and desires in the revolutionizing retail landscape. 

    Amazon, the largest eCommerce platform globally, announced in February that it is preparing to launch a new online marketplace in India called ‘Bazaar’, featuring cost-effective, unbranded fashion and lifestyle items.

    This article delves into the opportunities and challenges inherent in this transformation and explores how eCommerce marketplaces as well as offline retailers are reshaping the dynamics of power within the retail sector.

    Before going to the pros and cons of news brands, let’s first understand what is leveraging data and why marketplaces are doing it.

    What is Data Leveraging?
    Why Marketplaces Are Leveraging Data?
    How Marketplaces Leverage Data to Develop New Brands
    What Opportunities Data Leveraging Offers to a New Product Launch
    What Are the Challenges Faced by Marketplaces for Owning/Launching a Brand
    Reshaping Retail’s Power Dynamics

    What is Data Leveraging?

    Data leveraging is like having a superpower for running a business. It means using the information one possesses, whether it’s about customers, products, or market trends, to make smarter decisions and unlock new opportunities. 

    With data leveraging, businesses can personalize experiences, optimize operations, and stay ahead of the curve in today’s fast-paced world. It’s the secret sauce that turns numbers into insights and helps businesses thrive in the digital age.

    Why Marketplaces Are Leveraging Data?

    By leveraging data, marketplaces, and retailers can create seamless omnichannel shopping experiences that cater to the demands of modern consumers, millennials, and Gen Z. 

    By analyzing data points and collecting user information, big businesses can make solid business strategies that will help in reaching new users, continuing with old customers, addressing product gaps, meeting the growing demands, and presenting the best product with minimum cost and big savings. 

    These marketplaces can also make data-driven decisions based on real-time information, act on the insights, and derive new ways to measure performance, set strategic goals, and guide improvement in their product experience and marketing strategy.

    Leveraging Data to Increase Revenue: The Power of Insights
    Discover how harnessing data can increase revenue. Explore strategies and real-life examples of businesses that have achieved remarkable success.
    StartupTalkyMuskaan Kapoor

    How Marketplaces Leverage Data to Develop New Brands

    Marketplaces like Amazon India, Flipkart, Myntra, and Pepperfry leverage data in several ways to enhance their operations, improve customer experiences, and drive their business intelligence and growth. 

    In April 2023, Amazon emerged as the predominant online marketplace globally, with an average of approximately 4.8 billion visits that month. 

    Following closely behind was eBay, the second most-visited shopping site, which recorded around 1.2 billion visits. 

    Notably, both Amazon and eBay also held the top positions as the world’s leading online retailers in terms of mobile web traffic.

    Personalized Recommendation: They use data to give personalized product recommendations thereby enhancing the online shopping experience and increasing the likelihood of conversions and repeat purchases.
    For example, Flipkart’s private label, ‘Flipkart SmartBuy,’ offers a range of products designed specifically for the Indian consumer, including electronics, home appliances, and personal care items.

    Dynamic Pricing: They utilize data analytics to come up with products that are priced dynamically based on factors such as demand, competitor pricing, and customer behavior, optimizing revenue while remaining competitive.
    For example, Amazon India’s private label, ‘AmazonBasics,’ offers a wide range of affordable and reliable electronic accessories, catering to the needs of budget-conscious Indian consumers.

    Inventory Management: The data helps in understanding the appetite of the market. Marketplaces predict demand, manage inventory efficiently, and minimize costs while ensuring sufficient stock levels to meet customer’s demands.

    Seller Performance Management: Market platforms evaluate seller performances using data on product quality, fulfillment speed, and customer feedback. This data helps in providing them incentives for their self-made product and maintaining quality.

    Fraud Detection and Prevention: Big marketplaces like Amazon and Flipkart employ data analytics to identify and prevent fraudulent activities on the platform, thereby safeguarding themselves and ensuring trust and security for users.

    Supply Chain Optimization: Data analytics enable marketplaces to optimize supply chain operations, including demand forecasting, transportation route optimization, and inventory management, resulting in improved efficiency and reduced costs for their items.

    Customer Service Improvement: By analyzing customer feedback forms and service interactions, marketplaces identify areas that need improvement and enhance their overall customer service experience for their own items, thereby increasing customer satisfaction and loyalty.

    Market Insights and Trends: Leveraging data insights into market trends, competitor activities, and consumer preferences, marketplaces make strategic decisions regarding product offerings, marketing campaigns, and market expansion in the Indian retail segment.

    Here is a list of marketplaces that are active in India right now:

    These are some of the top online marketplaces in India, where you can sell your items and services and reach millions of customers by a click of a few buttons or by going personally to their big stores.

    Here Are a Few Examples of Marketplaces Launching Their Brands

    • Reliance Retail and Trent Ltd: They are actively targeting the emerging Gen Z consumer group through brands like Yousta, Foundry, and Zudio, catering to their preferences and lifestyles.
    • Nykaa: Known for its clean beauty and athleisure brands, Nykaa taps into popular market segments with offerings that resonate with its audience. Kay Beauty by Katrina Kaif is a notable example, focusing on inclusive makeup suitable for various skin tones.
    • Myntra and Amazon India: Collaborating with celebrities like Hrithik Roshan and Katrina Kaif, Myntra’s House of Pataudi and HRX, and Nykaa’s Kay Beauty co-launched with Katrina Kaif, contribute to branding and appeal to a wider audience.
    • Amazon India: With over 100 own-brands worldwide, Amazon has introduced India-specific brands like Tavasya and Anarva in addition to global offerings. While only 1 percent of Amazon.com’s sales come from private label brands, products like Amazon Essentials enjoy high conversion rates among browsing customers.

    What Opportunities Does Data Leveraging Offers to a New Product Launch

    Enhanced Customer Insights: Marketplaces have access to vast pools of customer data, enabling them to gain deep insights into consumer preferences, behaviors, and trends.

    Tailored Product Development: Armed with comprehensive data analytics, marketplaces can develop own-brand products tailored to meet specific customer demands and preferences.

    Competitive Advantage: By leveraging data-driven insights, marketplaces can create unique, high-quality products that stand out in the market, gaining a competitive edge over traditional retailers.

    In India, with over 600 million internet users and 185 million online shoppers, it ranks third globally in digital shopping, after the United States and China.
    This has led to a surge in Direct-to-Consumer (D2C) brands, which sell directly to consumers online, bypassing traditional distribution networks. The country currently hosts over 600 D2C brands, with the market projected to exceed USD 66 billion in 2023, as per Statista.

    Streamlined Operations: Data analytics facilitate efficient inventory management, pricing strategies, and supply chain optimization, leading to improved operational efficiency.

    Revenue Growth: Successful own-brand launches can drive incremental revenue streams for marketplaces, diversifying their revenue sources and bolstering profitability.

    Market Size of E-commerce Industry Across India From 2014 to 2018, With Forecasts Until 2030
    Market Size of E-commerce Industry Across India From 2014 to 2018, With Forecasts Until 2030

    What Are the Challenges Faced by Marketplaces for Owning/Launching a Brand

    • Data Privacy Concerns: The collection and utilization of customer data raise significant privacy concerns, necessitating robust data protection measures and compliance with regulations.
    • Brand Reputation Risks: Poorly executed own-brand products can damage the reputation of marketplaces, leading to loss of customer trust and loyalty.
    • Competition from Traditional Brands: Established brands may view marketplace-owned brands as direct competitors, leading to potential conflicts and market saturation.

    In India, the direct-to-consumer (D2C) market is poised for remarkable growth, projected to expand over 15 times from 2015 to 2025. In 2020, the D2C market was valued at USD 33.1 billion. 
    By 2025, it is expected to nearly triple in size, reaching USD 100 billion, with fashion and accessories emerging as one of the leading segments in India’s D2C landscape.

    • Quality Assurance: Maintaining consistent quality standards across a diverse range of own-brand products poses a challenge for marketplaces, requiring stringent quality control measures.
    • Balancing Transparency and Customization: Marketplaces must strike a balance between leveraging customer data for personalized experiences while ensuring transparency and ethical data practices.

    Reshaping Retail’s Power Dynamics

    Marketplace-owned brands are exerting a profound influence on retail’s power dynamics:

    • Disintermediation: Marketplaces are increasingly bypassing traditional manufacturers and retailers, and exerting greater control over the value chain.
    • Shift in Market Share: Own-brand products are capturing a larger share of the market, challenging the dominance of traditional products, brands, and retailers.
    • Data Monetization: Marketplaces are leveraging customer data not only to optimize own-brand offerings but also to generate additional revenue streams through targeted advertising and partnerships.
    • Democratization of Retail: The proliferation of own-brand products democratizes access to retail, allowing smaller sellers and entrepreneurs to compete on a level playing field.
    • Consumer Empowerment: With a plethora of choices and personalized experiences, consumers are empowered to make more informed purchasing decisions, driving market dynamics.

    Conclusion

    Data leveraging offers valuable opportunities to inform and optimize every stage of the new product launch process, from market research and development to marketing, sales, and ongoing performance monitoring. 

    The data-driven evolution of Indian marketplaces represents a revolution in the retail sector, offering unprecedented opportunities for innovation, research, and growth. By harnessing the power of data analytics, Indian marketplaces can differentiate themselves, reshape retail dynamics, and deliver unparalleled value to Indian consumers.

    As the Indian eCommerce market continues to evolve, the role of data-driven own-brands will only become more prominent, driving India’s retail sector into a new era of prosperity and innovation.

    By harnessing the power of data, businesses can increase the chances of a successful product launch and drive sustainable growth in the market, ultimately driving value for customers and stakeholders in a broader aspect.

    FAQs

    What is data leveraging, and why are e-commerce marketplaces utilizing it?

    Data leveraging involves using available information, such as customer data, product insights, and market trends, to make informed business decisions and unlock new opportunities. E-commerce marketplaces utilize data to personalize experiences, optimize operations, and stay ahead of competitors in the digital age.

    How do e-commerce marketplaces like Amazon and Flipkart leverage data to introduce their own brands?

    Marketplaces analyze customer data to create personalized recommendations, dynamically price products, optimize inventory management, and develop their own-brand products tailored to meet specific customer demands and preferences.

    What are the benefits of data leveraging for launching new product brands?

    Data leveraging enables marketplaces to gain deep insights into consumer preferences, behaviors, and trends, facilitating tailored product development, streamlined operations, and revenue growth through successful own-brand launches.

    What are some challenges faced by marketplaces in owning and launching their own brands?

    Challenges include privacy concerns related to data collection and utilization, risks to brand reputation from poorly executed own-brand products, competition from traditional brands, and maintaining consistent quality standards across a diverse range of products.

    How are marketplaces reshaping retail’s power dynamics through own-brand products?

    Marketplaces are bypassing traditional manufacturers and retailers, exerting greater control over the value chain, and capturing a larger share of the market. This democratization of retail empowers consumers with choices and personalized experiences, driving market dynamics and innovation.

    What opportunities does data leveraging offer for new product launches in the Indian market?

    Data leveraging offers opportunities for enhanced customer insights, tailored product development, competitive advantage, streamlined operations, and revenue growth in the rapidly evolving Indian eCommerce market.

    Which eCommerce marketplaces in India are actively launching their own brands?

    Marketplaces like Amazon India, Flipkart, Myntra, and Nykaa are actively launching their own brands, tapping into consumer preferences and market segments with offerings that resonate with their audiences.

    What role does data analytics play in ensuring the success of marketplace-owned brands?

    Data analytics enable marketplaces to optimize operations, enhance customer experiences, maintain quality standards, and make data-driven decisions throughout the product lifecycle, from development and marketing to sales and performance monitoring.

    How do marketplace-owned brands contribute to the overall growth and innovation in the Indian retail sector?

    Marketplace-owned brands drive growth and innovation by offering unique, high-quality products that stand out in the market, democratizing access to retail, and empowering consumers with choices and personalized experiences.

  • Google Restores Apps Amid Indian Developers Dispute: A Deep Dive into the Conflict

    In a significant turn of events following a tense standoff, tech giant Google has commenced the process of reinstating Indian app developers it delisted from its Play Store on March 1, 2024. 

    The decision to restore certain apps comes amidst a backdrop of heated negotiations, social media discussions, government pressure, and regulatory scrutiny surrounding Google’s billing policies and its implications for Indian startups.

    On March 4, the Indian government called a meeting of the affected Indian app developers and tech behemoth Google to listen to both parties on the ongoing issue.

    The dispute, which erupted over Google’s insistence on its billing system and the imposition of hefty service fees, has sparked widespread concern within the Indian tech ecosystem. 

    On March 1, Google sent shockwaves through the Indian app developer community by removing 10 prominent developers from its Play Store, citing non-payment of service fees. 

    This abrupt action thrust the simmering conflict between Google and Indian app developers into the spotlight, prompting widespread debate and scrutiny over the tech giant’s policies and their impact on the digital ecosystem.

    The affected apps, including Shaadi.com, Bharat Matrimony, Altt (formerly ALTBalaji), Kuku FM, Quack Quack, and others, have long been stalwarts of India’s digital landscape, catering to diverse user needs and preferences.

    “It feels like we will never be able to operate safely if our ecosystem is controlled by them. We need the Indian government to step in and save the startup ecosystem,” KuKu FM’s Co-founder and CEO Lal Chand Bisu said on employment-focused social media platform LinkedIn.

    The crux of the conflict lies in Google’s Play Store policies, particularly its requirement for developers to use the Google Play Billing System (GPBS) and pay commissions ranging from 11% to 26% on in-app purchases. 

    This move follows an order from the fair trade watchdog, Competition Commission of India (CCI), directing Google to revise its earlier system, which charged commissions as high as 30%, deeming it ‘anti-competitive’.

    Despite the CCI’s directives and efforts by affected startups to seek relief through legal channels, Google proceeded with the delisting after the Supreme Court declined to provide interim relief. This unilateral action by Google has raised questions about the fairness of its app marketplace fee and its potential impact on the Indian startup ecosystem.

    Around 30 companies had written a letter to Google, requesting the company not to delist their apps or take any ‘precipitative action’ against them till March 19 as their Special Leave Petition (SLP) comes up for hearing, according to a Times of India report published on Feb 13, 2024

    The app developers had filed the petition against the judgment delivered by the Madras High Court on January 19. The Supreme Court directed the SLP to be listed on March 19 and denied interim relief to startups.

    It has also sparked a debate to develop in-house an indigenous app store that reflects a growing sentiment toward promoting homegrown solutions and reducing dependency on global tech giants like Google. 

    Sridhar Vembu, CEO ZOHO on X

    In response to mounting pressure, Minister Ashwini Vaishnaw, from the Ministry of Electronics and Information Technology, intervened to facilitate discussions between Google and the affected app developers. Minister Vaishnaw emphasized the importance of upholding India’s policies and ensuring the protection of its startups in the digital marketplace.

    Union Minister Ashwini Vaishnaw on Google removing multiple apps from Play Store

    In a rapid response after government intervention, Google has reinstated Info Edge’s array of mobile applications, including popular platforms like Naukri, 99acres, and Shiksha, just one day after they were delisted from the tech giant’s Play Store.

    As per media reports, sources within Google revealed that the restoration of certain apps is contingent upon developers agreeing to comply with Android’s billing options or opting for a consumption-only model. Under the consumption-only model, developers can provide access to paid content without incurring service fees, offering a potential workaround to Google’s billing requirements.

    Anupam Mittal, Founder & CEO at People Group on X

    While the restoration of apps signals a temporary postponement for affected developers, the broader implications of the conflict remain unresolved. 

    The standoff between Google and Indian startups underscores the challenges of navigating the digital landscape, where tech giants wield immense power and influence over distribution channels and revenue streams.

    However, the path to resolution remains fraught with challenges, as stakeholders navigate complex legal, regulatory, and commercial considerations. 

    As discussions between stakeholders continue, there is a growing consensus on the need for greater transparency, fairness, and regulatory oversight in the digital ecosystem. 

    As the saga unfolds, all eyes will be on the outcomes of negotiations and the steps taken by Google, Indian regulators, and app developers to find a resolution that balances innovation, competition, and consumer protection. 

    The outcome of this dispute will not only shape the future of app development and distribution in India but also set a precedent for how tech companies interact with emerging markets and their burgeoning startup ecosystems.

    In the meantime, the March 1 de-listings are a stark reminder of the power dynamics in the digital ecosystem and the importance of advocating for fair and transparent policies that foster a thriving and inclusive tech landscape.

    Industry experts believe that it will be essential for policymakers, industry stakeholders, and the broader community to collaborate and support initiatives aimed at building indigenous solutions. 

    Annual Number of App Downloads From the Google Play Store Worldwide from 2016 to 2022
    Annual Number of App Downloads From the Google Play Store Worldwide from 2016 to 2022

    “PhonePe launched the Indus app store in Q4 2023. But how many are using it? How many have even heard of it? The problem begins with Android and iOS being the major OS and thus having their default app distribution platforms pre-installed on the phones. Any other app distribution platform (such as Indus) cannot be listed on Google Play Store (or iOS Appstore),” replying to Lal Chand Bisu’s post, TopN Analytics Founder Harish Mahale said in his comments on LinkedIn. 

    On February 21, Walmart-owned PhonePe unveiled the Indus Appstore, a new Android app marketplace in India, poised to compete with Google Play and other alternative app stores.

    “Notably, Indus offers Indian developers the freedom to choose any third-party payment gateway for in-app billings, a stark contrast to Google Play’s restrictions. This empowers developers and fosters a more competitive and diverse app marketplace. Embracing the IndusApp Store not only supports local innovation but also challenges monopolistic practices, contributing to India’s digital sovereignty. #IndusAppStore #SupportIndianInnovation #BreakMonopolies,” Ashish Kumar Shaw, State Head at PhonePe said in his comments on social networking site LinkedIn.

    As per recent Indian Mobile App stats for 2024, India has claimed the top spot globally for the highest number of apps installed and actively used each month.

    At present, Google Play serves as the designated app marketplace for the Android operating system, offering users the opportunity to discover and install apps and games developed using the Android software development kit (SDK).

    There are 3,362,451 apps offered for free on Google Play, with an additional 107,095 apps requiring a purchase. However, it’s worth noting that many of the free apps may necessitate subscriptions or include options for in-app purchases.

    Google Removes Apps from Play Store | Mitron and Remove China Apps
    Google removes apps Mitron and Remove China Apps from Google Play Store. 2 rival apps which had posed a challenge to the Chinese apps deleted from app list.
    StartupTalkyAvantika Bhardwaj

  • Is India Rightly Poised to Adopt Veganism

    Vegetarians and vegans will find nirvana in India, among other places. Right now, the country is setting itself up to be the ideal vegan diet market. The countrymen are paving the way for future vegan explorations by switching from a meat-based diet to a plant-based one. Vegan options, such as almond milk, plant-based paneer, plant-based meat substitutes, and more, are flooding the market. The majority of Indians support a plant-based diet, according to a recent national survey on national sentiment. Inspiring millions to give veganism a go, Veganuary India, a worldwide charity, organized the survey.

    As per the recent poll conducted by the YouGov India panel, which drew replies from 2033 people (throughout India), 59% of Indians said they are seriously contemplating going vegan in the near future, showing that veganism has the support of the majority in the country. Nearly 60% of Indians are interested in giving veganism a go, therefore it’s safe to say that this is the majority.

    In addition, 74% of people think a vegan diet is beneficial for their health in general, 73% think it helps put an end to animal cruelty, 72% think it’s good for the environment, and 62% think it’s easy to stick to.

    Even though veganism is relatively new in India, it’s expected to have a big impact. In little over a decade, the market for plant-based proteins has witnessed significant investment and advancements in technology. The many environmental and health benefits of veganism have propelled the Go-Vegan Movement to prominence in Western nations. On the other hand, the vegan food industry in India has been growing rapidly as of late, with a predicted 11.32% CAGR for the Asian nation between 2022 and 2027.

    Replacing Meat and Dairy With Plant-Based Products
    Technology Assisting the Change
    The Decision to Become a Vegan Is a Costly One

    Replacing Meat and Dairy With Plant-Based Products

    Fruits, vegetables, nuts, seeds, legumes, and whole grains are the main components of plant-based foods. Plant-based foods are those that are free of any animal-derived components, either in the production process or in the final product. These foods are utilized as alternatives to those that would normally contain these ingredients.

    There are significant ecological consequences associated with the production of foodstuffs derived from animals, including meat, dairy, and eggs. Land conversion for feed crops and grazing is another resource- and water-intensive consequence of the meat demand. Local communities and ecosystems are negatively impacted by this. Ethical farming, animal cruelty, and unsustainable agriculture are just a few of the issues plaguing modern agriculture that a plant-based diet might help alleviate.

    The vegan industry in India is booming, thanks to the increasing demand for vegan sweets and snacks. Potentially worth US$ 162 billion by 2030, the vegan food industry might make up 7.7 percent of the world’s protein market. It is projected that by 2030, the worldwide demand for dairy and animal protein will exceed US$ 1.2 trillion. With a projected CAGR of 20.7%, the plant-based dairy industry is expected to grow from $21 million to $63.9 million.

    Vegan options for dogs and cats, as well as plant-based substitutes for meat, poultry, shellfish, dairy, and eggs, are available in India’s plant-based food market, which is seeing a lot of entry from SMEs and FMCGs. With more than fifty startups already making waves in the industry, it’s clear that things are looking up. Farmers face multiple concerns, including food poverty, climate change, hunger, and public health issues; yet, there is a tremendous chance to increase their revenue through the growth of the plant-based foods industry. The advanced food and beverage industry, research institutes, diverse agricultural output, remarkable R&D successes, and increasing private equity sector in India all contribute to the country’s expansion potential.

    Technology Assisting the Change

    Extrusion, high-pressure homogenization, and heating/cooling are some of the food processing techniques used to make plant-based meats. The process of homogenization or mixing is typically used to make plant-based milk substitutes. After soaking and crushing the nuts and seeds, they are mixed with water to create a uniform consistency. A smooth liquid is then obtained by filtering the mixture.

    To achieve a texture similar to that of meat, high-pressure homogenization is used. To further improve the texture, it is possible to use heating and chilling to mimic the cooking behavior of real meat. Textured Vegetable Protein (TVP) extrusion technology is constantly improving and adapting to meet the growing demand for plant-based meat alternatives.

    A more effective way to mix and homogenize the components, the dual-screw extrusion process uses two interlocking screws to achieve better texture and homogeneity.

    Similarly, compared to single-screw extrusion, the output from co-rotating twin-screw extrusion is more constant and uniform because it uses two interlocking screws that spin in the same direction.

    Market Size of Plant-Based Food in India From 2020 to 2023, With Estimates Until 2030
    Market Size of Plant-Based Food in India From 2020 to 2023, With Estimates Until 2030

    The Decision to Become a Vegan Is a Costly One

    As the adage goes, “To reap benefits, one needs to pay for it.” While going vegan may improve one’s health, it can also lead to paying extra. It may seem like a simple effort to find alternatives to meat, dairy, and other products containing animal products, but sticking to such alternatives over the long term is far more challenging.

    In India, dairy products like paneer (cottage cheese), yogurt, and milk are widely available across the nation, making it challenging to find plant-based alternatives. For starters, you won’t find many plant-based alternatives, and secondly, they’re a lot pricier than the real thing.

    Since most Indian families are on a limited budget, the idea of making a dietary change—which would involve additional money—does not appeal to the middle class, which makes up the bulk of the country’s population. Take, for example, the price of 1 liter of buffalo milk. If it were to be substituted with soy milk, the client would have to shell out nearly twice as much money, which is not a good deal. The same holds for milk’s byproducts such as paneer, yogurt, butter, cheese, etc.

    Companies still need to figure out how to lower prices, even as the nation is getting ready to embrace veganism. In addition, to stay ahead of the competition, these organizations must put in additional work to establish and maintain a seamless supply chain. Additionally, to reach a large audience, the players should expand their presence in the country’s market to include smaller cities.

    The Rise of Plant-Based Food: Past, Present & Future of Veganism
    The vegan industry is growing at a fast pace, as many people are shifting to plant-based food. Here’s a detailed look at veganism and its future.
    StartupTalkyAnamika Mahapatra

  • Impact of Discount Brokerage Firms on the Stock Market

    The Indian stock market is going through a major transformation, all thanks to the rise of discount brokerage firms! As more and more people are entering into the stock market, the term “Discount Broker” has become increasingly prevalent. 

    Surprisingly, over 70% of the new Demat (dematerialized) accounts initiated in both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are facilitated by these ‘discount brokerage firms’. When individuals opt to open new demat accounts, they prefer selecting the best discount brokers in India. 

    Why Are Discount Brokerages Needed?
    What Is Discount Brokerage?
    Impact of Discount Brokerages
    How Did It Begin?

    Why Are Discount Brokerage Firms Becoming the Preferred Choice for Retail Investors?
    Impact on Market Dynamics
    Challenges and Opportunities
    Conclusion

    Why Are Discount Brokerages Needed?

    Discount brokerage firms help investors save big on brokerage fees, take control of their investments, and provide access to the latest information and technology to trade anywhere, anytime, and with minimal funds.

    Trading with the help of the best discount brokers can lead to substantial savings, with potential reductions of up to 90% on brokerage fees. Additionally, individuals can access a user-friendly interface, real-time market data, analysis, news, charts, and key takeaways without paying much as brokerage fees.

    A few years ago, trading stocks at any time or place, making payments, big trades, and figuring out brokerage and tax components before trading was tough. However, discount brokers have significantly streamlined this process, and made trading a ‘routine’ for any common man. 

    “Each and every Indian is enjoying the fruit of development. So, to that extent, when we see the last few years, it is the small investors from tier 2, and tier 3 cities are joining the capital market and enjoying the growth that we are seeing in the capital market. That is something very, very important for the development of India and for the capital market,” – Securities & Exchange Board of India SEBI Whole Time Member Kamlesh Chandra Varshney said in a capital markets summit in Mumbai on February 19.

    Even small investors or the common man can now maintain an account, trade, invest, buy, or sell stocks daily, monthly, and annually with minimum brokerage fees. 

    Top 10 Discount Brokers in India in 2024
    If you are planning to invest in stocks from your home through your smartphone, here are the 10 best discount brokers to help you invest.
    StartupTalkyAnamika Mahapatra

    What Is Discount Brokerage?

    Discount brokerage firms are like your auction assistants but with a twist – they guide you through buying or selling stocks. These firms give access to the stock exchange, just like traditional brokers, but at a fraction of the cost.

    With their user-friendly platforms and affordable services, discount brokerage firms make stock trading easy and capital markets have become accessible for everyone. Discount brokers use technology to keep costs low and put the power of trading in your hands.

    “The capital market too comes with inherent risks and individuals must exercise due diligence before making investments. Phones have become a convenient tool in the investment process and individual investors rely heavily on it. There is a need to enhance investor’s awareness of the risk posed by technology. Today cybersecurity and threats to tech resilience have emerged as the biggest threat in the capital markets and are giving sleepless nights to the stakeholders,” – Securities & Exchange Board of India (SEBI) Whole Time Member Ananth Narayan Gopalakrishnan said at a summit.

    Unlike traditional brokers, these low-cost brokers skip the extras like investment advice and research reports. But, they’re experts in technology and market trends, always staying ahead of the game. Discount brokers charge over 60% less than full-service brokers. And they give free trading software to all their customers.

    Top Stock Brokers Based on Active Client
    Top Stockbrokers Based on Active Clients

    Impact of Discount Brokerages

    Discount brokerage platforms have significantly reformed the landscape of stock market participation in India. With their competitive pricing models and high technology, they have opened up new opportunities for retail investors like never before. 

    As of December 2023, Zerodha has the largest client base with over 64 lakh clients, which is about 20% of the total Demat account holders in India. Second, comes Groww with a 53 lakh client base which is 16% of the total numbers. These figures underscore the growing popularity of discount brokerage platforms among retail investors.

    These discount brokerages have empowered a new generation of investors, including millennials and first-time traders, to engage actively in the stock market. As a result, the stock market has seen a surge in retail participation, with a significant portion of trading volumes attributed to individual investors using discount brokerage platforms.

    Overall, discount brokerage firm’s innovative approach to pricing and technology has made stock trading more accessible and affordable, paving the way for a more inclusive and dynamic market ecosystem.

    How Did It Begin?

    The discount brokerage industry in India started to gain momentum in the early 2010s with the emergence of online discount trading platforms, led by Zerodha, which was the first to offer flat-fee trading services. 

    Since then, several other players have joined the market. Here are some of the prominent players, who have helped the common man dive into the stock market:

    Zerodha

    Established in 2010, Zerodha is one of the largest discount brokerage firms in India. It pioneered the concept of discount brokerage in the country and has since grown exponentially, capturing a significant market share with its low-cost trading platform and innovative offerings.

    “We just introduced two new cool features on @zerodhaonline Console: Timeline and Stock Insights, both powered by @Tijori1,” Zerodha online CEO and Founder Nithin Kamath said in a tweet on February 13.

    Post of Nithin Kamath (Founder & CEO of Zerodha) on X

    Upstox

    Upstox (formerly RKSV Securities) is another leading discount brokerage firm known for its low brokerage fees, advanced trading platforms, and robust technology infrastructure. It has gained popularity among retail investors for its user-friendly interface and competitive pricing.

    5paisa

    Launched in 2016, 5paisa is a disruptive player in the discount brokerage space, offering a wide range of financial products and services at competitive rates. With its emphasis on digital innovation and customer-centric approach, 5paisa has emerged as a formidable competitor in the market.

    Angel Broking

    While traditionally a full-service brokerage, Angel Broking has adapted to the changing market dynamics by introducing discount brokerage services under its Angel Broking Prime brand. It offers discounted brokerage plans and advanced trading platforms to cater to the evolving needs of investors.

    Groww

    Groww is a fintech platform that started as a mutual fund investment platform but has since expanded its offerings to include discount brokerage services. With its user-friendly interface and zero-commission trading model, Groww has attracted a growing base of retail investors.

    These discount brokerage firms, along with others in the market, have disrupted the traditional brokerage model by offering low-cost trading solutions, innovative technology platforms, and a customer-centric approach. Their emergence has widened stock market participation, empowering retail investors and challenging established players in the industry. 

    Here are the key differences between traditional brokers and discount brokers:

    Feature Full-Service Broker Discount Broker
    Services Provided Offer a wide range of services including research, advisory, and portfolio management Typically provides basic trading services with limited research and advisory support
    Brokerage Fees Charge higher brokerage fees and commissions Charge lower brokerage fees, often flat-rate or based on transaction volume
    Investment Minimums Often require higher minimum investment amounts Have lower or no minimum investment requirements
    Trading Platforms Provide advanced trading platforms with additional features Offer simple, user-friendly trading platforms
    Customer Support Offer personalized customer support and dedicated relationship managers Provide basic customer support with limited personalization
    Investment Advice Offer investment advice and recommendations Provide minimal investment advice and recommendations
    Additional Services Offer add-ons such as wealth management and financial planning Typically do not offer additional services beyond trading

    Why Are Discount Brokerage Firms Becoming the Preferred Choice for Retail Investors?

    1. Low-Cost Advantage: Discount brokers offer the lowest brokerage charges compared to full-service brokers. This cost-efficient model allows traders to convert trades into profits with a lower Break-even Point (BEP), making investing more accessible to a wider audience.
    2. Online Trading Terminal: One of the hallmarks of discount brokerage firms is their centralized online trading terminals. These platforms provide investors with user-friendly interfaces and real-time market data and analysis, empowering them to manage their investments wisely and efficiently. Moreover, these services are often provided free of cost, enhancing the overall trading experience.
    3. Unbiased Offerings: Regardless of the investor’s size or investment portfolio, discount brokers provide equal access to securities. This unbiased approach ensures that all clients have access to the same investment opportunities, leveling the playing field for both individual and institutional investors.
    4. Low Transactional Costs: Discount brokers leverage their high trading volumes to offer lower transaction costs to clients. This cost-saving benefit enables investors to execute trades more frequently without incurring substantial fees, thereby maximizing their long-term potential returns.
    5. Transparency: Transparency is paramount in the discount brokerage model. These firms offer clients 100% transparency in their costs, providing access to brokerage calculators, margin calculators, charges sheets, and trade confirmations. This transparency fosters trust and confidence among investors, more retail participation, and enables them to make informed and unbiased decisions.
    6. Client Education: Education is key to success in the stock market, and discount brokerage firms recognize this. They offer a wealth of online educational resources, including video tutorials and market insights, to empower clients with the knowledge needed to navigate the financial markets effectively.
      For Example: Zerodha Varsity stands out as a market leader in investor education, offering a comprehensive collection of financial resources. Similar to Zerodha Varsity, Upstox Learning Centre is dedicated to providing fundamental lessons to investors. Groww’s Blog is another platform that pursues a similar strategy of educating investors by offering insightful articles and market analysis.
    7. Financial Education: In India, financial literacy is very low. People are hesitant to invest in the stock markets, they usually prefer investing in traditional investment tools like the fixed deposit and provident funds. But brokerage firms have broken this norm and addressed the status quo, by providing comprehensive educational resources and empowering users with valuable knowledge.
      These platforms are transforming the way investors approach the markets. With access to these educational platforms, investors can equip themselves with the skills and insights needed to navigate the complexities of the financial world confidently.
    8. No Misleading Practices: Unlike some full-service brokers, discount brokerage firms refrain from setting brokerage or third-party product sales targets for their employees. This commitment to integrity ensures that clients receive unbiased advice and recommendations tailored to their individual investment goals.
    9. Paperless Account Opening: With the convenience of Aadhar Number verification, discount brokers offer seamless and paperless account opening processes. Investors can open online trading accounts in a matter of minutes, eliminating the need for cumbersome paperwork and expediting the onboarding process.
    10. No Minimum Brokerage: Unlike full-service brokers, discount brokerage firms do not impose minimum brokerage charges. This means that even investors trading in penny stocks or smaller volumes can benefit from the low-cost advantages offered by discount brokers.
    11. Flat Brokerage Charges: Discount brokers charge flat brokerage fees, such as Rs 20 per trade (Zerodha’s leading discount brokerage charges for Futures & Options), irrespective of the trade volume. In contrast, full-service brokers typically charge based on a percentage of the trading volume, resulting in higher costs for investors.

    The drive for financial inclusion in India, the digitalization of the economy and the emergence of discount brokers have led many people to opt for fishing in the stock market. The surge in Demat account registrations has been propelled by the competitive brokerage rates and streamlined onboarding procedures facilitated by digital brokerage platforms. 

    The digital economy’s share of India’s GDP has grown significantly, rising from around 4-4.5% in 2014 to a projected over 20% by 2026.

    Currently, only about 7-8% of Indians have Demat accounts. The number of Demat accounts has increased to 14 crore accounts as of January 2023. Finance experts are of the view that the number of Demat accounts in India will cross the 25 crores milestone by the year 2030.

    In December 2023, there was a surge in new investor accounts, with nearly 4 million opened with the Central Depository Services (CDSL) and an additional half a million with the National Securities Depository (NSDL), it reflects a notable increase in interest and participation in the stock market.

    “India is the fastest growing economy in the world. Our capital markets are also performing well. We exceeded the $4 trillion market cap for NSE. And the number of Demat accounts has grown up to more than 14 crores. It is important to become prosperous, not only in our immediate future but in the long-term we invest in the market infrastructure, and provide opportunities for all citizens in our region to reach their potential. The retail participation from urban and rural India in capital markets has been growing strongly with more and more SIP (systematic investment plan) accounts as well as direct investments clearly indicating the growth of the economy,” said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in an Assocham event on February 19.

    Overall, discount brokerage firms have emerged as a game-changer in the world of investing, offering cost-effective solutions and empowering investors to take control of their financial future. 

    Leading Equity Brokerage Firms in India in Financial Year 2022, by Number of Active Clients

    Impact on Market Dynamics

    The influx of retail investors facilitated by discount brokerages has significantly altered market dynamics. Increased retail participation has led to heightened trading volumes and market volatility, influencing stock prices and the overall market sentiment. 

    With the help of low-cost brokerage firms, more people are starting to invest in the stock market. This is happening for a few reasons. First, there aren’t as many good places to save money anymore, and interest rates are meager. 

    Furthermore, the democratization of investing has empowered individuals from diverse backgrounds and mindsets to engage with financial markets, fostering a more inclusive and dynamic trading environment.

    Challenges and Opportunities

    While discount brokerage brings undeniable benefits, it also presents challenges and opportunities for market stakeholders. Traditional brokerage firms are forced to adapt or risk becoming obsolete in the face of intensified competition. Regulatory bodies must navigate the evolving landscape to ensure investor protection and market integrity. Meanwhile, innovative fintech startups are seizing the opportunity to disrupt the market further, introducing novel technologies and services to cater to evolving investor needs.

    Conclusion

    The impact of discount brokerage on India’s stock market is undeniable, with far-reaching implications for investors, market participants, and regulatory bodies alike. As the industry continues to evolve, stakeholders must embrace change and seize the opportunities presented by this transformative shift. With innovation and adaptability, India’s stock market is primed to thrive in the era of discount brokerage.

    Key Takeaways

    • A discount broker is a stockbroker who carries out stock transactions (buy and sell orders) with less or no commissions.
    • Discount brokers do not provide the personalized investment advice or guidance provided by a full-service broker.
    • Discount brokers offer low-cost trades, online account management, research tools, and educational resources.
    • Discount brokers comprise a large section of the fintech industry.

    Don’t think too much…join the revolution and start trading smarter with discount brokerage firms today! 

    Full-time Broker VS Discount Broker
    Navigate the financial landscape wisely with our comparison of full-time brokers and discount brokers. Discover the advantages and considerations of each approach, empowering you to make informed decisions about your investments.
    StartupTalkyNadeesh Kareemdathil

  • India’s Tractor Industry Riding on High-Hope

    Since its start, India’s tractor sector has made great strides. In 2023, the India Tractor Market was valued at USD 1,935.72 million, according to a report by BlueWave Consulting, a market research firm. The report further states that from 2024 to 2030, the India Tractor Market is projected to grow at a CAGR of 5.55 percent, reaching a value of $2,676.82 million by 2030. The government’s encouraging policies, businesses’ plethora of purchase-easing schemes, banks’ provision of low-interest loans, and other factors have all contributed to this sector’s remarkable boom. 

    In terms of 2023, the tractor market showed signs of non-uniformity; although the market expanded during the first half of the year, demand weakened during the second half. Declining demand was felt in strategic markets such as Maharashtra, especially in the sugarcane-growing region that impacted portions of Karnataka as well. Nevertheless, agronomic specialists are optimistic about the performance of 2024. The year might not reach its highest point on the graph, but it also won’t go downhill. Beginning in the second half of 2024, we expect growth to pick up again. To a large extent, the expansion of the economy is due to the agricultural sector. One of the many programs launched by the Indian government was an effort to quadruple farmers’ income. As a result, farmers will be able to raise their level of living and be more invested in their businesses. The agricultural sector is projected to provide a 600 billion rupee contribution to India’s GDP by the year 2030.

    Ups and Downs
    Sectorial Obstacles

    Ups and Downs

    According to various media reports, domestic tractor retail sales fell 10% year-on-year from 60,321 units in September 2022 to 54,492 units in September 2023. A total of 444,340 units were sold in the first half of the current fiscal year, a 14% year-on-year increase from 389,850 units sold in the same time last year (April–September). Tractor sales, even with the current downturn, have helped the Indian car sector expand overall.

    In addition to indicating robust demand, this result has the added benefit of boosting domestic tractor market sentiment, which is particularly important over the holiday season. When compared to the first half of the current fiscal year, sales in export markets have been declining. Companies like Mahindra & Mahindra and Escorts Kubota have seen a 35% year-on-year decline in sales.

    From April to September of 2023, International Tractors Limited of Hoshiarpur emerged as the leading exporter, exporting 17,004 units. The company’s export target is 1 lakh units by 2030, with a doubling of that ambition in the next years. By the same year, it hopes to have surpassed all competitors and become the leading tractor company in twenty-five countries.

    Size of the Indian Market for Tractors in 2021, With a Forecast Through 2027
    Size of the Indian Market for Tractors in 2021, With a Forecast Through 2027

    Sectorial Obstacles

    There are a lot of dispersed landholdings in India, which is a major problem for the tractor sector. Minority and small-scale farmers, who make up a large chunk of the farming population, typically have very little land under their control. Since the landholding might not be large enough to warrant purchasing a tractor, this creates obstacles to the implementation of mechanization. More inexpensive and accessible tractors for smaller landholdings should be a goal of manufacturers and legislators.

    Another prominent challenge is the lack of mechanization in the Indian agriculture sector. With barely 40% mechanization, the Indian agriculture sector is ripe with opportunity. The tractor business views mechanization in agriculture both as a threat and an opportunity. Through its many programs and efforts, the Indian government has been strongly bolstering the agricultural sector, and more specifically, the farm equipment and farm mechanization subsector. In particular, we applaud the state’s sustained support of farmers and agribusinesses through subsidies and other financial incentives. In addition to encouraging farmers to purchase smart machinery, this would boost mechanization and sector-wide productivity by creating an ideal setting for such investments.

    Many farmers, particularly those with low financial resources, continue to face the substantial challenge of the high cost of tractors. The high acquisition costs of tractors make them an expensive and capital-intensive venture. High-interest rates and a lack of access to official credit institutions are additional obstacles to tractor ownership. To address this difficulty, it is recommended that financial institutions offer customized financing choices, that government subsidies be promoted, and that more people are made aware of the available programs.

    Despite its critical role in modernizing Indian agriculture, the tractor sector has several obstacles that must be overcome. Stakeholders can overcome these obstacles by collaborating on issues like landholding fragmentation, affordability, technological adoption, infrastructure, declining groundwater levels, and environmental concerns. A more efficient, sustainable, and inclusive tractor industry in India will help farmers and the entire agricultural ecosystem. This may be achieved by supportive legislation, new financing structures, technology improvements, and awareness campaigns.

    Khetigaadi – Buy, Sell, Rent Latest Agricultural Machinery Online
    Read all about Khetigaadi, an online platform where you can buy, sell and rent agricultural machinery and also get loans and insurance assistance on agricultural equipment.
    StartupTalkyChayanika Goswami

  • India Aiming to Become the Hub of Millet Production

    Recently, the 46th session of the Codex Alimentarious Commission (CAC), an international body established by the World Health Organisation and the Food and Agriculture Organisation of the United Nations with 188 member nations, was held in Rome, Italy, and during that session, the CAC commended India’s Standards on Millets and accepted the country’s proposal to create global standards for millets. The international meeting was a great success for India’s newly drafted group standard for fifteen different types of millets, which details eight quality characteristics. Sorghum and pearl millet both have standards in Codex at the moment.

    Just like with pulses, India has proposed creating international standards for millets, with a focus on the following varieties: Finger millet, Barnyard millet, Kodo millet, Proso millet, and Little millet. Attendees from 161 member nations, including the EU, voted overwhelmingly in favor of the proposal at the conference held at FAO Headquarters in Rome.

    In the past, millets were widely consumed in rural regions as a main source of nutrition in India. This was due to their high nutrient density, ease of cultivation, low water requirements, and lack of pesticide and insecticide use. But then the green revolution hit the nation in 1966 and 1967, and the government and many businesses began actively pushing it. But the present administration sees the promise in millets, and they are marketing them as a miracle crop that would end the global hunger and malnutrition problem.

    India’s Campaign to Increase Millets’ Popularity Around the World
    Next-Gen Solution
    Roadblocks Hampering the Growth

    India’s Campaign to Increase Millets’ Popularity Around the World

    More than 102 nations sent representatives to a two-day conference on millets that India hosted in March 2023 when it was the G-20 president. The event took place in New Delhi. Topics covered during the international conference honoring the IYM 2023 included research and development, nutritional advantages, value chain development, market connections, and production and consumption of millets.

    In 2023, India accounted for 20% of the world’s millet production and produced 80% of it in Asia, according to the Economic Survey of India.

    The worldwide average millet yield is 1229 kg/ha, while India’s average production is 1239 kg/ha. Worldwide, India ranks first for millet production and second for exports. A variety of millets, such as Jowar, Raagi, Bajra, Ramdana, Cheena, and Saama, are cultivated in India. With a particular emphasis on millets, the Union Budget 2023–24 promised to transform the Indian Institute of Millet Research in Hyderabad into a world-class center for exchanging knowledge, expertise, and cutting-edge research to establish India as a leading center for millet research. Growing these healthy millets is an important part of small farmers’ roles in improving the health of the Indian population, which was recognized in the Union Budget 2023-24.

    With the start of the International Year of Millets and Other Ancient Grains (2023), India has joined the ranks of other countries actively participating in the IYM initiatives. India’s G-20 Presidency and the FAO’s global activities on millets at the IYM 2023 have helped bring together nations, research institutes, and civil society organizations to work towards the goal of zero hunger, which is the second Sustainable Development Goal set by the United Nations.

    Millet Production Across India in Financial Year 2022, by State
    Millet Production Across India in Financial Year 2022, by State

    Next-Gen Solution

    Over the last 30 years, the United Nations has seen a disturbing increase in the frequency of severe weather events. According to scientists, these disasters have been made much worse by climate change. Sea levels are rising due to the fast melting of glaciers and ice sheets, and extreme weather events such as heatwaves, droughts, and floods are becoming more common. In addition, marine heatwaves have been caused by the warming of our oceans, and the Arctic Sea has seen a considerable decrease in ice covering. The consequences of climate change are already being felt by people, especially in terms of food insecurity. An extra 100 million people might fall into poverty by 2030, according to the World Bank’s climate change predictions. These figures show how urgent it is to try to lessen the impact of climate change on the food supply.

    In this context, millets, which are well-known to address issues of food insecurity, agriculture, and the environment, take on a greater significance. Global experts now support the sustainable development and use of these nutri grains as a realistic solution to mitigate the effects of climate change and ensure a reliable supply of healthy food. As people throughout the world start to realize how bad climate change is, millet is rising in popularity as a possible crop for the future. With a shorter growth cycle than wheat and a water requirement 70% lower than rice, millets offer a complete solution to the issues brought about by climate change. According to the Food and Agriculture Organisation (FAO), millets offer several benefits that other, more often consumed cereals do not.

    Roadblocks Hampering the Growth

    According to ICRISAT, an organization jointly formed through an MoU between the Government of India and the CGIAR, By implementing interventions on the supply and demand sides, taking both the short and long term into account, one must ensure that millet production remains economically viable for farmers. It is important to keep the national food security factor in mind while crafting policies to increase millet production.

    From 18 million metric tonnes in 2018 to 45 million metric tonnes in 2030, that is the yearly production target set by the government for millets. Compared to rice, millet now has a significantly lower average productivity of only 1 to 1.5 t/ha. Therefore, the country’s food security could be jeopardized if there was an attempt to convert rice-growing land to millets without first identifying which areas to target.

    Moreover, according to Tapas Chandra Roy, a certified Farm Advisor on millet, millet processors in India face a problem with the grain recovery rates of the machinery they use, which are just 70 to 80%. There are more broken and unhulled grains in the final product because of the decreased efficiency. The efficiency of dehulling millets is influenced by the speed of the impeller. You are aware that millet grains vary in size, shape, and husk content, which makes them challenging to work with. It takes two different kinds of dehullers to properly dehusk all kinds of millets; using just one won’t cut it. A double-stage dehuller is necessary for the removal of the husk from Kodo and Barnyard Millet due to the many seed coatings that these varieties feature.

    Millets’ husks are notoriously difficult to collect and separate from the processing unit’s effluent, which frequently ends up blended in with the finished product. Processing and disposing of millet husks is a challenge for many millet processors. An answer might be possible if value-added items could be made from millet husks.

    Making certain items with only millet ingredients becomes quite challenging due to millet’s complete absence of gluten. Improving nutrient availability while decreasing anti-nutritional components still needs additional study and development.

    Top 22 Best Agritech Startups in India in 2022
    Agriculture is one of the largest industries in India. Here’s a look at some of the leading agritech startups in India and their funding.
    StartupTalkyAshwini

  • De-influencers Take Center Stage in Redefining the Future of Influence

    In a world where social media is supreme, number of followers and likes decide your identity and person’s worth, a new breed of influencers is emerging, wielding ‘nay’ sword, and criticism as their purpose to make their digital presence. They are no other but ‘De-influencers’.

    “Stop buying supplies, things you will regret buying’, ‘im de-influencing you’, ‘de-influencing you from the most viral makeup of 2023’, ‘what not to $$$’ are the kind of headlines and headers that are making trends on social media platforms like YouTube, Instagram, and Tiktok (banned in India). It is noteworthy that #Deinfluencing has over 1 billion views.

    This new breed of voices is making waves, disrupting the traditional norms of curated content and aspirational lifestyles in the world of consumerism. Meet the De-influencers – individuals who are shaking up the normal trend by challenging myths, debunking misinformation, and fostering critical thinking among their communities, peers, followers, and subscribers.

    The Birth of De-influence
    What Is Their Mission?
    Debunking Myths and Misinformation
    Promoting Critical Thinking
    Driving Social Change
    The Power of Connection
    What Is It That De-influencers Are Trying to Tell?
    The Essence of De-influence
    Shaping the Future of Influence
    The Future of De-influence

    The Birth of De-influence

    As social media platforms continue to dominate our digital landscape, concerns about authenticity and accountability have come to the forefront. In response, De-influencers have emerged as beacons of transparency, skepticism, and critical thinking. 

    What Is Their Mission?

    De-influencers are on a mission to peel back the layers of influencer culture and encourage their audience to think critically about the content they consume or about the cream that they apply on their tender skin and the appliances used in their kitchen.

    Debunking Myths and Misinformation

    At the heart of de-influence lies a commitment to truth and accuracy. De-influencers use social platforms like Facebook, Instagram, and X (earlier called Twitter) to debunk myths, challenge misinformation, and provide evidence-based perspectives on a wide range of topics. 

    Whether it’s dissecting pseudoscientific claims, fact-checking viral trends, or critiquing misleading marketing tactics, these individuals are on a mission to separate fact from fiction in the digital realm.

    In the era of digitalization, a new term has been coined to encapsulate individuals who prioritize what not to do, what not to behave, what not to eat, what not to watch, or what not to opt for with an aim to creating genuine engagement, powerful thought process and meaningful impact by likes, subscriptions, and followers. 

    As traditional influencers fade into the background, de-influencers are stepping into the spotlight, reshaping the landscape of online influencer marketing and paving the way for a new class of intellectuals and experts who will decide what is not to be done in the digital arena.

    In recent years, influencer marketing has skyrocketed in popularity and effectiveness, becoming a go-to strategy for online promotion. With millions of internet users regularly browsing social media platforms for entertainment, inspiration, and product recommendations, it’s no surprise that marketers are leveraging the influence of social media’s most prominent figures.

    As of 2023, the global influencer marketing market has reached a staggering value of USD 21.1 billion, more than triple since 2019. This fast growth shows how influencer marketing has become a big industry on its own. And every year, influencer platforms are getting bigger and more valuable, allowing brands and creators to team up in ways never seen before.

    Promoting Critical Thinking

    In an age where clickbait headlines and viral content abound, de-influencers serve as ambassadors of critical thinking. They encourage their followers to question mainstream narratives, challenge societal norms, and approach information with a healthy dose of skepticism. By fostering critical thinking skills, de-influencers empower their audience to make informed decisions and navigate the complexities of the digital world more effectively and clearly.


    Driving Social Change

    De-influence is about more than just debunking myths and promoting critical thinking – it’s also about driving meaningful social change. De-influencers often use their platforms to raise awareness about important issues, advocate for marginalized communities, and amplify voices that are often unheard or overlooked. From promoting environmental sustainability, reporting the unknown, narrating what was unseen, or advocating for social justice, these individuals are harnessing the power of social media for good.

    Here are some Indian examples of de-influencers, who challenge the mainstream narratives and promote critical thinking on social media platforms:

    • Ravish Kumar (X or former Twitter): Ravish Kumar is a prominent Indian journalist known for his incisive reporting and critical analysis of current affairs. Through his X account (3.5 million followers) and Instagram (4.3 million followers), he often challenges misinformation, questions government policies, and encourages followers to think critically about social and political issues. 
    • Faye D’Souza (X, Instagram): Faye D’Souza is a journalist and former executive editor of Mirror Now, known for her no-nonsense approach to journalism. On platforms like Twitter (1.1 million followers) and Instagram (1.7 million followers), she addresses misinformation, calls out false narratives, and advocates for transparency and accountability in governance.
    • Dhruv Rathee (YouTube, X): Dhruv Rathee is a YouTuber and social activist known for his videos on politics, economics, and social issues. Through his YouTube channel (14.8 million subscribers) and X ( 1.7 million followers) account, Rathee challenges mainstream media narratives, debunks misinformation, and promotes critical thinking among his followers.
    • The Wire (YouTube, X): The Wire is an independent news and analysis platform in India known for its investigative journalism and critical commentary on politics, society, and economics. Through its YouTube channel ( 5.03 million subscribers) and X (1.3 million followers) account, The Wire provides in-depth analysis, fact-checks, and exposes misinformation to promote informed discourse among its audience.
    • Alt News (X, Facebook): Alt News is a fact-checking website in India that debunks misinformation and fake news circulating on social media platforms. Through its X (519 K followers) and Facebook accounts ( 242K followers), Alt News provides evidence-based information, corrects false narratives, and promotes critical thinking to combat the spread of misinformation online.
    • Revant Himatsingka or Food Pharmer (Instagram, X): Revant Himatsingka creates thoughtful, often humorous videos to educate Indians about health, social issues, and life. His main goal for the next few years is to stop FMCG companies from marketing junk food as healthy food. He is teaching Indians how to read food labels of packaged food. Revant, who is in favor of clean businesses, has 1.5 million Insta followers, 66,867 LinkedIn followers, and 290K YouTube subscribers.
      In April 2023, he went viral for critiquing Cadbury‘s Bournvita sugar content, suggesting a tagline change. Cadbury responded with a legal notice, stating their product contained 7.5 grams of added sugar per serving, within recommended limits. On December 23, the influencer announced on Instagram that Cadbury had reduced added sugar by 15 percent, calling it a ‘big win’.


    The Power of Connection

    In a world saturated with superficial content and shallowness, de-influencers are helping people by bringing reasons and thought-provoking answers to questions, that usually consumers neglect, fail to ask, or hesitate to question. 

    Unlike traditional influencers who measure success in likes and followers, de-influencers emphasize connection-building and thought-provoking exercises, to bring about a ‘difference’ in the commonly accepted views, and traditions of the society. 

    What Is It That De-influencers Are Trying to Tell?

    In essence, most of the ‘de-influencers’ on social media apps are real influencers in sheep’s clothing. This is the real-time question one needs to ask as readers, viewers, consumers, and clients. Are they really helping us decide what is right or wrong or are they telling us to opt for what they feel is just and correct?

    People rather than, consumers have consumed enough data, marketing campaigns, and advertisements, wherein they have been always asked or lured to buy a certain product, service, or strategy in a subtle or loud manner. 

    People have overconsumed positive marketing strategies. The marketing industry has reached a saturation point, where ‘influencing’ charisma is fading away. Now, people don’t want to be in a trap of consumerism and haste to buy any product to be fashionable and maintain social status.

    De-influencers are trying to achieve more with fewer resources, achieve sustainable goals, and try to be away from the crowd and create a new niche for themselves. This strategy of saying ‘no’ is being applied by marketing ‘gurus’, and influencers, to look unique and attract buyers. They feel that stopping people from buying an item or policy will attract more consumers and increase the sale of other related items. 

    According to a recent Statista survey, Instagram remains the most popular platform for influencer marketing worldwide.

    As per Statista, India emerged as the global leader in Instagram users, with a staggering 362 million individuals on the platform, as of January 2024. The United States and Brazil trailed behind with 169 million and 134 million users, respectively.

    Value of Influencer Marketing Industry in India From 2021 to 2022, With Projections Until 2026
    Value of Influencer Marketing Industry in India From 2021 to 2022, With Projections Until 2026

    The Essence of De-influence

    So, what exactly sets de-influencers apart from their predecessors (influencers)? 

    One can say that at the core of de-influence lies a commitment to authenticity,  clarity, criticism, and transparency for the common good. 

    But it’s not just about being clear – De-influencers are on a journey to make a difference. They want to bring about a change by telling what is not to be done. 

    Whether advocating for social justice, promoting the environment, or raising awareness about natural skincare products, mental health, or knowledge about the side effects of beauty products, these influencers leverage their platforms to bring awareness. 

    Their content isn’t just about aesthetics or abstract theory; it is about sparking meaningful conversations, questioning the normal, challenging the old narrative, and inspiring action.

    Shaping the Future of Influence

    As the influence of de-influencers continues to grow, brands and marketers are taking notice. Gone are the days of superficial endorsements and scripted sponsorships; instead, brands are seeking out de-influencers who align with their values and embody their ethos. 

    In a 2024 global survey of PR agencies, marketing firms, brands, and professionals, 37.6 percent reported working with up to 10 influencers, while 14.7 percent collaborated with over a thousand influencers.

    In their unique ways, de-influencers are asking what not to go for and silently telling you what to do, what to buy, what to grab, and what to consume.

    One can say it is another format of influencer marketing. Earlier, it used to be about ‘pushing’ audiences towards a better brand but nowadays it is about ‘pulling’ people towards a brand.

    At present, collaborations are no longer just about product placement, they’re about telling stories, sparking meaningful conversations, and driving change in the system. 

    But perhaps the most profound impact of de-influencers lies in their ‘ability to inspire and spark others’ thoughts and actions’.

    The Future of De-influence

    As the influence of de-influencers continues to grow, their impact on online discourse and culture cannot be overstated. By challenging the current norm, promoting critical thinking, and driving social change, these individuals are reshaping the way we engage with content on social media. 

    Given the capacity of online influencers to high brand visibility, engage audiences, and sway purchasing decisions for millions of users, it’s no wonder that expenditure on influencer or de-influencer partnerships is anticipated to surge even more in the digital future.

    In an era of increasing digital noise and misinformation, the rise of de-influencers offers a representation of hope – a reminder that authenticity, transparency, and critical thinking still have a place in the digital world.

    FAQs

    What are De-influencers?

    De-influencers are the individuals who are shaking up the normal trend by challenging myths, debunking misinformation, and fostering critical thinking among their communities, peers, followers, and subscribers.

    What is the market size of global influencer marketing?

    As of 2023, the global influencer marketing market has reached a staggering value of USD 21.1 billion, more than triple since 2019.

    Who are the De-influencers in India?

    Some of the De-influencers in India include Ravish Kumar, Fay D’Souza, Dhruv Rathee, Alt News, The Wire, Revant Himatsingka or Food Pharmer, and others.

  • AI Changing the Landscape of the Livestock Sector in India

    Artificial intelligence has ushered in a new era for the agricultural sector, especially the cattle industry. The goal of this change is to make farming in the future more sustainable and less harmful to the environment, not merely more efficient and productive. Through this article, we take a look at how AI is changing the face of cattle farming for the better, leading to happier cows and a cleaner environment.

    When raising cattle, one of the most important things is to make sure the herd stays healthy. Early disease identification and health monitoring are two areas where AI-driven solutions are seeing increased use. For instance, by monitoring habits and vital signs, sensors can detect early indicators of disease. Because of this preventative measure, fewer antibiotics are needed, which leads to healthier cattle and less resistance to antibiotics. Researchers at Vienna’s University of Veterinary Medicine found that disease diagnosis rates might be up to 20% higher with the help of AI-powered surveillance systems.

    Sharing his views on the subject, Dr. Chandan Kumar, Associate Professor, DUVASU Mathura stated, “The AI parts of the dairy automation system analyse the data and give farmers information about things like heat estrous, heat stress, changes in feeding efficiency, and pregnancy status, among other things that are important for farm management. Farmers and businesses would benefit greatly from a fresh start if the government prioritised the promotion and affordable availability of software and technology, as well as the encouragement of animal researchers to pursue careers in this area in conjunction with the IITs.”

    Anand Ramanathan, a partner at Deloitte India, claims that India ranks high among the global manufacturers of dairy products and milk. Still, the dairy business in India is dispersed, no matter how big it is. In addition, he mentioned that an online marketplace allows farmers to visually check the breeds of cattle and the claims made about their milk production.

    Raising Milk Yields
    Combating Toxins: The Part AI Plays in Guaranteeing Feed Safety
    Major Challenges

    Raising Milk Yields

    One measure of a dairy farm’s prosperity is the amount of milk it produces. To improve output, AI systems can examine data on cow health, milk quality, and yield. For example, according to a survey from the Dairy Farmers of America, milk production increased by 10% when AI was used to track udder health. Not only does this efficiency increase profits, but it also reduces the environmental impact by reducing the number of cows needed to produce the same amount of milk.

    The path forward is paved by startups. Their automated solutions use the Internet of Things (IoT) and advanced analytics to boost milk output and quality for small dairy farmers in India, revolutionizing the mostly unorganized dairy sector. Stellapps Technologies, started in 2011 by five individuals with degrees from IIT, is one such company. More than 750,000 small farmers in some of India’s most remote regions, where internet connectivity is extremely limited, use the product or service offered by the Bengaluru-based firm every day. Qualcomm, the Bill & Melinda Gates Foundation, and ABB Technology Ventures (ABV), the venture capital arm of ABB, have all recently invested in it.

    Estimated Value of Artificial Intelligence in Agriculture Market Worldwide From 2023 to 2028
    Estimated Value of Artificial Intelligence in Agriculture Market Worldwide From 2023 to 2028

    Combating Toxins: The Part AI Plays in Guaranteeing Feed Safety

    The health of cattle and the quality of their dairy and meat products are both impacted by pollutants, so it is critical to ensure that cow feed is safe. Toxins in feed can be detected and predicted with the use of AI techniques. As an example, machine learning models may assess past data and present circumstances to forecast the probability of mycotoxin contamination, allowing farmers to implement preventative actions.

    A more sustainable and eco-friendly method is being made possible through the use of AI in cow production. In this green revolution, AI is leading the charge to optimize land and water use and reduce methane emissions. Achieving a balance between sustainability and productivity is crucial for the future of cow farming, and AI can help with that.

    Precision animal feeding and management is eFeed’s forte in India. The company uses AI to generate personalized feed recommendations. This method shows dedication to efficiency and sustainability by trying to reduce emissions of methane while increasing animal yields.

    Major Challenges

    Big data, the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) are some of the digital technologies that are modernizing and reshaping agricultural and livestock value chains. India is one of the few developing nations that has been slow to embrace and use digital solutions to transform agriculture, in contrast to countries like the Netherlands, the United States, Australia, and Israel.

    Public-private partnership (PPP) models and large companies are expected to foster digital agriculture adoption in India in the future. However, cost remains a constraint, as input costs for dairy farms are higher and most farms only have average-producing cows. As a result, the adoption rate in India will be affected.

    “While researchers at IIT DELHI and NDRI Karnal have developed AI and fuzzy logic technologies to improve agricultural management, bringing these innovations to market will be a slow process, and we continue to rely on the progress of other nations that have invested heavily in AI and ML. We should hire biotechnologists and bioinformatics experts to investigate and research the potential of these new things in Indian settings, and we need someone to operate this technology,” opined Dr. Kumar.

    This is an ideal opportunity for animal scientists and recent tech graduates to step up and help define the future of India’s livestock industry, as the government has already begun to encourage startups and the timing is right to act.

    Most Profitable Cow Business Ideas For Your Startup
    Cow business startups have rendered themselves extremely profitable. Here are 5 Lastest and Most Profitable Cow Business or Cowpathy ideas for your Startup.
    StartupTalkyHimangi Khare

  • The Reasons Why Multi-Level Marketing and Pyramid Schemes Are Ensnaring So Many Indians?

    Media outlets have reported that in 2023, India saw the highest number of new MLM schemes launched in five years, with over 400 schemes. This information comes from Strategy India, an associate member of the Indian Direct Selling Association (IDSA) and a policy, compliance, and direct-selling consultancy.

    Companies like Capcha Pay, Mission Green India, Jivan Daan, and Dhan Vriddhi are on its list of suspected scammers. For the time being, over four thousand of these schemes are allegedly active, as reported by Strategy India. It was challenging to get in touch with the entities named because their websites and email addresses don’t seem to be operational.

    Instead of paying out of earnings, operators of such money-circulation network schemes pay out to current investors from cash received from new ones. By utilizing gaps in current consumer protection legislation, many go unpunished. These organizations target low-income communities in their pursuit of investors by promising abnormally high returns in very short periods of time. However, the promoters abandon the project and disappear with the funds when fresh investors dry up.

    “The Consumer Protection (Direct Selling) Rules should be revised to remove ambiguity and loopholes to prevent Ponzi and multi-level marketing (MLM) money circulation schemes,” said Pranjal Daniel, chief strategist at Strategy India, in his recent media statement. “A central committee needs to evaluate and monitor all MLM operations, which is vital to curb complex money circulation schemes with claims to increase investors’ wealth through investments in forex trading, cryptocurrencies and NFTs (non-fungible tokens).”

    To differentiate between these fraudulent pyramid and money-circulation schemes and legal direct-selling multi-level marketing players, the Ministry of Consumer Affairs updated the Consumer Protection (Direct Selling) Rules in 2021. A notification was released on June 21, last year. Executives, however, have stated that the concept of a network of merchants needs more clarification. The ministry made several adjustments, one of which was to replace “through a network of sellers” with “directly selling through a network of sellers.”

    What Are MLM and Ponzi Scams?
    Is MLM a Moral Business Practice?
    The Amway Case

    What Are MLM and Ponzi Scams?

    A Ponzi scam, so called because it was popularised by American business magnate Charles Ponzi in the 1920s, solicits money from new investors and then uses that money to repay those who had invested earlier. An appearance of financial success is given to the deceitful plan. The investors are deceived into thinking that their profits are a direct outcome of a successful company, unrelated to the investments made by new victims. Victims in The Tinder Swindler think they are putting money into a permanent relationship with their rich, caring lover, but all they are doing is assisting him in keeping up this facade for when he scams other people.

    Companies that engage in multi-level marketing (MLM) rely on commission structures resembling pyramids to sell their products and services to individuals who do not receive a salary. Sales commissions from direct customer sales and commissions from recruiting other participants who must buy products in bulk and resell them to consumers provide two sources of income for anyone involved in such a program. Members of multi-level marketing (MLM) are rewarded to attract people into the system below them, drawing comparisons to unlawful pyramid schemes. Those at the very top of the pyramid usually come out ahead, while those at the very bottom of the pyramid usually lose money. The Body Shop, Amway, and Oriflame are just a handful of well-known brands that operate under the multi-level marketing paradigm. Because of their multi-level marketing strategies, these companies have been the target of scepticism and debate. Merchants of Deception was written by an ex-Amway distributor to reveal the reality of the worldwide company’s multi-level marketing plan.

    Indian Direct Selling Industry
    Indian Direct Selling Industry

    Is MLM a Moral Business Practice?

    Much more complex than the legal challenge is the MLM’s ethical dilemma. Ethical companies, according to a study in the Journal of Business Ethics, focus on their products rather than their employees when hiring. It is highly susceptible to becoming a pyramid scheme due to its reliance on network recruiting. There is a great deal of ethical risk associated with multi-level marketing because it relies on salespeople to sell to their networks. But there are a lot of people who think multi-level marketing programs are fantastic for starting enterprises. Owners and participants alike may find the model alluring because of the lack of inventory management concerns, the independence it affords, and the low operating costs. Even if joining a multi-level marketing company (MLM) sounds like a fun and lucrative idea, you should conduct your research before committing.

    The Amway Case

    Company assets belonging to Amway India, which offers health and beauty goods in more than 100 countries, have been provisionally attached by India’s Enforcement Directorate (ED) for INR 750 crore. Amway was involved in pyramid fraud through its direct sales multi-level marketing (MLM) network, according to an ED probe into money laundering. Spreading the word about how members may get rich by joining was the main objective of the organization. The items do not receive any attention. The ED claimed that products are utilized to disguise this multi-level marketing scam as a direct-sale firm. From 2002–03 to 2021–22, Amway’s business operations brought in INR 27,562 crore, according to the agency. Distributors and members in India and the US received a commission of INR 7,588 crore from this. The core business model of the corporation was to sell people on the idea that they could improve their financial situation by joining the organization.

    Many such examples may be in one’s peripheral, but one must be competent and self-aware enough to select the appropriate operations. Questions like “Who are the investors?” “Where is the money coming from?” “What are the products?” and “How does the entire business cycle operate?” are the most basic. If one can find satisfactory responses to these questions, he will be well-positioned to determine if the proposed business is a good fit for him.

    A Detailed Case Study on Multilevel Marketing and Direct Selling in India
    Here’s a detailed case study on multilevel marketing and direct selling. How does the whole business model work and are these schemes profitable?. Let’s find out.
    StartupTalkyHarshit Verma

  • Zillow Success Story – How It Is Revolutionizing the Real Estate Sector

    From ordering gourmet food to getting coaching, everything is available online. Today, even our marketplace is online, whether groceries or property, one can easily buy them online. Traditionally, the real estate market was known for the deals that occurred with the help of unorganized brokers, agents, and middlemen.

    However, with the changing times, the real estate market has shifted on the internet, too; this is why Zillow came into existence with Zillow homes for rent, Zillow homes for sale, Zillow apartments, and much more.

    With due diligence, one can buy or sell properties and houses on real estate websites. In 2023, the National Association of Realtors stated that 52% of the buyers who bought homes found them on the internet.

    As per the report posted on ipropertymanagement.com, real estate websites collectively are known to have been visited more than 120 million times on the internet, and one such dominant platform is Zillow. More than 57 million unique visitors search for properties on Zillow in a month as of 2023. Find more information about the real-estate platform and dive deep into the history of Zillow.

    Zillow – Company Highlights

    Startup Name Zillow
    Headquarter Russell Investments Center Seattle, Washington, U.S.
    Sector Real Estate
    Founders Rich Barton & Lloyd Frink
    Founded 2006
    Revenue $1.945 Billion (2023)
    Website www.zillow.com

    Zillow- About
    Zillow- Startup Story
    Zillow- Business Model
    Zillow – Acquisitions
    Zillow- Revenue Model
    Zillow – Threats to Its Revenue

    Zillow – About

    Zillow is one of the most prominent and famous real estate and home-related brands on the internet today. Zillow Group, Inc. has it focuses on all stages of the home life cycle including renting, buying, financing, selling, home improvement, and so on.

    With its unparalleled data, inspiration, and knowledge of homes and real estate, Zillow Group is committed to empowering its consumers and connecting them with the right professionals to help.

    Concerning the business-to-business (B2B) segment, Zillow Group also develops and provides marketing and technology solutions to help real estate, rental, and mortgage professionals maximize and increase business opportunities.

    This helps them to connect with millions of customers daily and increases their reach as well. Zillow’s Data and voice communication needs are accomplished by threshold communication, which helps safeguard clients from the traditional errands of multiple network and hardware vendors.

    Zillow was founded with the prime objective of finding houses and apartments and helping consumers find their best-match properties, and now the company has expanded its services way beyond. Besides, the Zillow group also operates similar real estate portals like Trulia, Hot Pads, and Street Easy.

    Real Estate Success: Factors and Government Influence on Investments
    Explore the key factors guiding real estate investment decisions and how government policies and initiatives influence the real estate sector in India.
    StartupTalkyMuskaan Kapoor

    Zillow – Startup Story

    Zillow Home Page - Zillow's Story
    Zillow Home Page

    The idea of funding a platform like Zillow was initiated in the year 2004 by Rich Barton. At that time, Barton was working at Microsoft Firm. With the thought of changing the real estate industry and transforming the sector, Zillow was formed in the year 2004. The company’s website was launched in 2006, and the company started its operations thereafter.

    Later on in the year, 2010 Barton stayed as the executive chairman, and Spencer Rascoff was appointed as the CEO of the company by the board of directors. After eight years, when Zillow was about to enter the on-demand home-buying market, Barton returned as the CEO of the company to lead in the transition phase. He is still the CEO of the firm.

    In 2018, the company stepped outside the country for the very first time and partnered with Century 21 Canada to list Canadian properties on its website.

    Zillow – Business Model

    Rich Barton - Zillow Founder
    Rich Barton – Zillow Founder

    The whole Business Model of Zillow came down with the single objective to empower people with tools and information so that they make wise decisions in buying, leasing, selling, remodeling, financing, or renting homes.

    The segments that the company has categorized on its portal are:

    1. Sale: The customers in this section can find properties for sale according to their preferences by applying various filters.

    2. Buy: This category is further categorized into different types-

    • Foreclosed: These are the properties where the homeowners have failed to pay the mortgage value, and the property has now gone for foreclosure auction
    • Pre-foreclosure: These are the properties that are in the early stages of being
      repossessed due to the owner’s inability to pay the mortgage amount
    • The others include new constructions, flats recently sold, and for sale by the owner

    3. Rent: In this section, customers can explore options like rental buildings, apartments, or offices.

    4. Home Loans: Visitors on the website can also explore the various financing options, like refinancing rates, mortgage rates, different lenders, etc.

    5. Agents: This is the last category where the visitors can look out for the agent’s help if they wish to. The portal helps you find the right real estate managers, property managers, home inspectors, home builders, etc.

    51 Business Ideas for Vacant Land to Make Money
    Wondering how to use your vacant land to make money? Here are listed 51 business ideas for vacant land to make money from. Read to know all.
    StartupTalkyJeenal Jain

    Zillow – Acquisitions

    Acquisition Year Company Name Acquisition Price
    2021 VRX Media –
    2021 ShowingTime $500M
    2018 Out East –
    2018 Mortgage Lenders of America $65M
    2017 New Home Feed –
    2016 Naked Apartments $13M
    2016 Bridge Interactive –
    2015 DotLoop $108M
    2014 Trulia $2.5B
    2014 Retsly –
    2013 StreetEasy $50M
    2012 HotPads $16M
    2012 Mortech $17M
    2012 Agentfolio –
    2012 RentJuice $40M
    2011 Postlets $1M

    Zillow – Revenue Model

    Revenue Breakdown of ZillowAnnual Revenue of Zillow
    Annual Revenue of Zillow

    Zillow is a free website when it comes to listing a property for sale or rent. Websites, online tools, and mobile applications are free as well. Even though the company is providing almost everything for free its annual revenue was $1.45 billion (2023). Zillow’s business model is based on peer-to-peer (P2P), agency-to-the-customer (B2C), and agency-to-agency (A2A).

    These are the ways through which Zillow is generating its revenue:

    1. Sale of Advertisements to Property Management Companies

    Zillow has a rental network that maximizes the visibility of the advertiser’s property to the renters. This network comprises Zillow, Trulia, Hot Pads, and Street Easy. Zillow offers this network to property management companies. Such rentals bring a huge part of the revenue for the company.

    2. Premier Services for Real Estate Agents

    Through means of advertising, Zillow’s premier services can bring you buyers, sellers, and better business for agents. If one wants to become a premier agent, Zillow charges a nominal amount that depends on the place and the area. These agents pay Zillow an amount determined by the number of ad impressions delivered to the users of that area.

    3. Ad Sales to Mortgage Lenders

    The platform also sells its advertising space to mortgage lenders and businesses such as general contractors, interior designers, home organization retailers, etc. These lenders and businesses pay Zillow based on cost per click (CPC) or cost per thousand impressions(CPM).

    How Zillow Dominated Real Estate

    Zillow – Threats to Its Revenue

    Zillow heavily relies on advertising revenue for its financial success. However, given that most of its advertising relationships are short-term, there is a risk that Zillow could lose its existing advertisers and struggle to find replacements. This could lead to a decline in its advertising revenue, which would be detrimental to the company’s growth and profitability.

    Furthermore, Zillow’s Premier Agent program, which is a significant source of advertising revenue, could be affected if real estate agents stop seeing the value in advertising on its platform. If agents find other, more attractive options for advertising their services, Zillow’s revenue could suffer.

    In addition, factors beyond Zillow’s control, such as fluctuations in the real estate market or a drop in consumer interest in home buying and mortgages, could lead to a decrease in user traffic to the site and, consequently, lower ad revenue. This would further compound the challenges that Zillow may face in maintaining its financial success.

    How to Start a Real Estate Business in India in 2023
    Starting a real estate business requires planning, research, obtaining licenses and registrations, and finances. Learn how to start a real estate business in India.
    StartupTalkyGorish Dua

    Conclusion

    Zillow is a real estate-focused online brand that has products available for all stages of home life cycling. Zillow was introduced to the world in 2006 after the initiation of re-evaluating the real estate market by Rich Barton, a former Microsoft employee.

    Zillow is known to provide free services to its users related to renting or buying a house, as well as many other similar services. Zillow is considered one of the major players in the real estate sector.

    FAQs

    What is Zillow?

    Zillow Group is one of the major players in the real estate sector, highly known for providing services spanning all the stages of the home life cycle. They provide services like buying, renting, leasing, and financing a property.

    When did Zillow start?

    Zillow was started in the year 2006. The CEO of Zillow is Rich Barton.

    Who owns Zillow?

    Rich Barton, a former Microsoft employee, owns Zillow.

    Who are Zillow’s competitors?

    Some of Zillow’s competitors are BoldLead CRM, Realtor.com, Zumper, Apartments.com, etc.

    How does Zillow’s business model?

    Zillow earns its revenue from multiple sources; some of them to be counted are selling advertisements, providing premier services to its customers, etc.