Reliance Retail Ventures Ltd (RRVL), under the leadership of Mukesh Ambani, is gearing up for a monumental Rs 8.38 lakh crore IPO scheduled for 2025. As this colossal IPO looms on the horizon, the remarkable journey and strategic maneuvers of Reliance Retail have become a focal point for investors and market observers.
RRVL is in discussions regarding a comprehensive strategy that involves an additional divestment ranging between $250-300 million this year. This comes in addition to the recent dilution in favor of the Qatar Investment Authority (QIA) and the US-based private equity fund Kohlberg Kravis Roberts (KKR). According to sources familiar with the discussions, this will be succeeded by a third stake sale offer to investors next year, at an increased valuation, preceding an anticipated initial public offering (IPO) in 2025.
In August of this year, RRVL divested 0.99% in favor of the Qatar Investment Authority, amounting to $0.99 billion (Rs 8,278 crore), resulting in a nearly doubled company valuation from Rs 4.21 trillion to Rs 8.27 trillion post-deal. Additionally, RRVL secured a deal with KKR, wherein the existing investor invested an additional Rs 2,069.50 crore, increasing its stake from 1.17% to 1.42%.
In a headline-making move, the Qatar Investment Authority (QIA) acquired a 1% stake in Reliance Retail for an astounding Rs 8,278 crore. This substantial investment is expected to significantly enhance the growth potential of Reliance Retail. The QIA, established in 2005, serves as the sovereign wealth fund of the State of Qatar, managing surplus funds from the country’s substantial oil and gas reserves. With a diversified portfolio spanning various sectors, QIA is a key player in global investments.
Kohlberg Kravis Roberts (KKR)
Kohlberg Kravis Roberts (KKR) further demonstrated its commitment to Reliance Retail by increasing its stake from 1.17% to 1.42%, injecting an additional Rs 2,070 crore. KKR, a globally renowned investment firm founded in 1976, is recognized for its expertise in private equity and alternative asset management across diverse sectors such as technology, healthcare, energy, and retail.
Abu Dhabi Investment Authority (ADIA) secured a 0.6% stake in Reliance Retail through an investment of Rs 4,966 crore, signaling its interest in the Indian retail sector and expressing confidence in Reliance Retail’s strategic positioning. Established in 1976, the Abu Dhabi Investment Authority is a formidable sovereign wealth fund owned by the Emirate of Abu Dhabi in the United Arab Emirates. Known for its extensive and diversified global investments, ADIA holds stakes in various asset classes.
According to analysts at Motilal Oswal, Reliance Retail Ventures Limited (RRVL) is anticipated to experience substantial growth. We project an annual increase of approximately 25% in earnings and 34% in profits, resulting in total revenue reaching around INR 4.1 trillion and profits reaching around INR 320 billion by the year 2025.
An insider familiar with the developments stated, “Reliance Retail has extended participation offers to all their key investors in this round as well. The ongoing discussion pertains to further divestment in 2024, at an elevated valuation before gearing up for an IPO.” Sources indicated that considering upcoming elections in India and the US next year, the prevailing sentiment is to abstain from major financial moves in 2024 and instead pursue an IPO in the subsequent year.
RRVL also counts other global investors among its stakeholders, including sovereign funds such as Saudi Arabiaâs Public Investment Fund, Mubadala, and GIC Singapore, along with TPG, Silverlake, and General Atlantic. These investors, who injected funds in 2020, have witnessed a substantial increase in valuations in 2023.
The funds divested in Reliance Retail constitute 11.31% of the stake, attracting investments amounting to Rs 57,562 crore. In FY23, Reliance Retail reported annual revenues exceeding Rs 2.6 trillion, marking a 30% increase, and generated profits of Rs 9,181 crore. The company currently holds a position among the top 10 retailers globally and ranks within the top four in the country.
Reliance Retail Revenue for FY 2022 and FY 2023
With a footfall of 780 million in FY23 and a customer base nearing 250 million, Reliance Retail reaches 30% of the addressable population in the country. Consequently, it stands among the 10 most visited retailers worldwide. While digital and new commerce businesses contributed Rs 50,000 crore to revenues in FY23, constituting a fifth of total sales, the company has invested over $10 billion in the last two years for expansive growth. This is evident in the opening of 55 stores in the first quarter of FY24, bringing the total store count to 18,446, spanning 70.6 million square feet.
Noteworthy Financial Performance
The formidable financial performance of Reliance Retail becomes evident when examining the first quarter results of the fiscal year 2024. During this period, the company disclosed an impressive revenue of Rs 62,159 crore, coupled with a net profit of Rs 2,448 crore. These figures underscore Reliance Retail’s remarkable growth trajectory and profitability, solidifying its position among the top 10 retailers worldwide and ranking within the top four companies in India in terms of equity value.
“I have the conviction that as India progresses from a $2500 per-capita economy to a $10,000 per capita economy, Reliance Retail will emerge as our swiftest-growing business in terms of revenues and EBITDA,” affirmed Mukesh Ambani, the chairman of Reliance Industries Limited (RIL), during the company’s 46th annual general meeting (AGM) held in August.
In addition to its flagship Reliance Retail, RRVL boasts other subsidiaries and joint ventures, including Reliance Brands and Marks & Spencer, overseeing the remaining facets of apparel and additional retail operations.
The Indian film industry has historically stood as a dynamic and captivating pillar of popular culture. It has delighted audiences worldwide with its extravagant productions, compelling narratives, and melodious soundtracks. However, in recent times, this industry has experienced a notable transformation fueled by the rapid ascent of over-the-top (OTT) platforms.
These digital streaming services, including but not limited to Netflix, Amazon Prime Video, Disney+ Hotstar, and SonyLIV, have brought about a revolution in how audiences engage with entertainment. They provide an extensive array of films, television series, and exclusive original content easily accessible at the viewer’s convenience. This shift in viewing preferences has unquestionably left an impact on the conventional movie theatre business, compelling it to undergo strategic adjustments to navigate the ever-changing landscape of the entertainment industry.
OTT platforms have garnered immense popularity in India, particularly during the COVID-19 pandemic when lockdowns restricted movement and encouraged home entertainment. According to a 2023 KPMG report, India’s OTT market is expected to reach a staggering âč23,663 crore by 2026, driven by increasing internet penetration, affordable data plans, and a growing preference for personalized and on-demand viewing experiences. The convenience of watching movies and shows at home, coupled with the wide variety of content and affordable subscription fees, has made OTT platforms an attractive alternative to traditional movie theaters.
The rise of OTT platforms has brought about a revolutionary transformation in the global film industry, disrupting conventional distribution models and reshaping the entire process of film production, distribution, and consumption. Ritesh Sidwani, the co-founder of Excel Entertainment, highlighted the organic evolution of content creation that led to the emergence of OTT platforms in India. He noted that certain narratives were better suited for a digital format, exceeding the constraints of traditional cinema durations.
The lasting impact of the pandemic is evident in the sustained popularity of OTT platforms, diverting both time and money from consumers who, a decade ago, predominantly relied on cinemas for their movie-watching experience.
With smartphone subscriptions projected to exceed one billion by 2025, driven by increased internet penetration and affordable mobile data, there is a significant transformation in how content is consumed. Ritesh Sidwani further attributed the acceleration of OTT platforms to the shift in people’s preferences during weekend getaways, coinciding with traditional movie releases.
From the consumer’s perspective, the cost factor plays a pivotal role. In India, where movie ticket prices vary based on factors such as the film, showtime, and seat selection, OTT platforms offer a more economical alternative. With over 40 OTT platforms in India, boasting average fees ranging from Rs. 129 per month to Rs. 999 per year, the competition among global and local players has intensified, expanding the content library and providing consumers with a diverse range of options.
Kamal Gianchandani, CEO of PVR Pictures Ltd., explained the cinema industry’s stance on ticket prices, emphasizing the commitment to quality and the adoption of surge pricing. Despite the competitive pricing of OTT platforms, the cinema industry aims to enhance the overall cinema-going experience by reducing indirect costs.
Additionally, OTT platforms offer advantages such as convenience, on-demand services, a diverse content library, and the inclusion of genres like web series and sports that are not typically available in movie theaters. The continuous development of technology, coupled with the affordability of 4K and 8K televisions, contributes to an improved home viewing experience through OTT platforms.
The ease of access, flexibility, and shorter waiting periods for content release further incentivize consumers to opt for OTT platforms. Although the post-pandemic shift has extended the cinema-to-OTT release window to eight weeks, this change is anticipated to create a sense of urgency among viewers, potentially boosting box-office numbers.
From a producer’s standpoint, OTT platforms offer a broader reach, with platforms like Netflix investing significantly in original Indian content. This investment has provided opportunities for new talent and diverse storytelling, as seen in the international success of series like “Sacred Games” and “Delhi Crime.”
Karan Johar, a renowned filmmaker acknowledged that OTT platforms have democratized storytelling and provided a platform for diverse voices to be heard.
The demand for original content has fostered collaborations between OTT platforms and filmmakers, leading to high-quality productions catering to both domestic and global audiences.
The creative landscape has expanded, resulting in a surge of talent and increased production crew sizes. Ritesh Sidwani acknowledged the incredible talent emerging from the digital space, emphasizing the inclusivity of the once-exclusive Indian film industry.
Producers benefit from the flexibility of content censorship norms on OTT platforms, allowing the streaming of adult content that may not be suitable for traditional movie theaters. This flexibility provides a significant advantage over cinemas, with examples like the film “Gehraiyaan” passing with an A certificate on Amazon Prime Video in 2022, while a film like “Gangubai Kathiawadi” received a UA certificate despite having fewer intimate scenes and simpler themes.
The decision to release a film in theatres involves additional costs, including marketing, non-production, and print & advertising costs, amounting to 25% of a film’s budget. The unpredictability of box office collections, coupled with indefinite release dates and erratic consumer behavior, has compelled production houses to recognize OTT platforms as a growing and relevant medium for content release.
Comparison Between Pre-covid and Post-covid Statistics
The global pandemic, which brought the world to a standstill, significantly impacted the revenue earnings of the Indian Film Industry. Despite producing over 200 Hindi language movies annually, the industry witnessed a staggering 89.5% decrease in gross revenues, plummeting from 5611.83 Cr in 2019 to 586.4011 Cr in 2021.
Contrastingly, the Indian Over-The-Top (OTT) market, valued at $576 million in 2019, is projected to surge to $3.22 billion by 2025, as indicated by the Price Waterhouse Coopers Global Entertainment and Media Outlook Report 2019-23.
Major production houses like Dharma Productions and Yash Raj Films (YRF) were compelled to halt production activities in 2020 due to the pandemic, with movie theatres closing indefinitely. This shift prompted around 24 million moviegoers to transition from cinemas to online streaming platforms, leading to a considerable loss for the Indian film industry. Some producers even chose to release their films on OTT channels without waiting for a theatrical release.
According to Price Waterhouse Coopers, the streaming market is expected to witness a 31% growth between 2019 and 2024, generating revenues of $2.7 billion, while cinema revenues are projected to decrease by 2.6%. Despite intensifying competition within the OTT space, the overall outlook for OTT platforms remains optimistic.
Even with leading theatre chains like PVR and INOX adopting the latest technologies and innovations, footfall has declined since COVID-19, reaching only about 50â60% of pre-COVID levels at best. This decline is not unique to India, as global theatres are also experiencing a sharp drop in regular patronage. PVR and Inox recently merged to create economies of scale and control 43% of the multiplex screens in India, adapting to the competitive environment dominated by OTT platforms.
Telecom companies have entered the OTT landscape, introducing their platforms and streaming apps to align with the growing trend. The expansion of 4G and 5G, coupled with increased smartphone usage, broadband accessibility, improved payment infrastructure, and a dynamic local content ecosystem, contributes to the surge in digital content viewership.
A Juniper Research report predicts a 65% increase in video-on-demand subscription services from 2020 to 2025. The advent of 5G is expected to bring cloud computing infrastructures closer to end-users, enabling real-time processing and minimal latency. Apple’s recent announcement of ‘Vision Pro,’ offering quality higher than 4K on demand, further supports OTT platforms’ expansion, posing a challenge to multiplexes.
Impact on Content Consumption
The transformation in infrastructure and the growing popularity of OTT platforms have reshaped content consumption in India. The industry has come to realize that the traditional cinematic formula, including musical numbers, star-studded casts, and picturesque locations, no longer guarantees a blockbuster. Unlike in the past, there is no clear trend on the types of movies that succeed at the box office, introducing uncertainty into the industry.
For instance, in early 2022, “Bhool Bhulaiyaa 2” achieved a worldwide gross collection of Rs. 266.88 crores and was declared a hit. Conversely, “Phone Bhoot,” a horror comedy with a bigger star cast, including Katrina Kaif, released in November 2022, only garnered a worldwide gross of Rs. 18.73 crores.
Filmmakers now categorize small-budget films or those with a strong social message as suitable for OTT release. Movies offering a ‘cinematic experience,’ such as Sanjay Leela Bhansaliâs “Gangubai Kathiawadi” or Ayan Mukherjiâs “Brahmastra,” are released in theatres, as the same viewing experience cannot be replicated at home.
Senior executives note a shift where character-driven stories find a place on OTT, while event-based stories are reserved for cinemas. Producers, like those at Excel and YRF, decide on OTT or cinema release during pre-production, considering factors such as script, budget, and directorial vision.
India’s traditional daily soaps, which once dominated linear television, are experiencing a decline. The introduction of short episodes ‘web series’ influenced by Western culture has contributed to this shift. As people embrace curated series, the era of endless daily soaps appears to be fading.
This evolving landscape emphasizes the importance of content, compelling producers to differentiate between cinema, TV, and broadband. However, industry experts suggest that government initiatives like Bhaaratplex (subsidizing cinemas) could positively impact box office collections, particularly in two and three-tier towns. The need to build infrastructure for better cinematic experiences is highlighted, with comparisons drawn to China’s larger screen presence.
Forecast of Video Over-The-Top (OTT) Market Size in India From Financial Year 2021 to 2030
Adapting to Change: The Resilience of Cinema in the Digital Era
It’s crucial to emphasize that the cinema industry is far from dead. Despite a noticeable decline in traditional movie theatre attendance, theatres are demonstrating resilience by embracing innovation and diversification.
Siddharth Roy Kapur, President of the Producers Guild of India says, “The rise of OTT is not a threat to cinema but an opportunity to expand the audience for films.”
Embracing Immersive Experiences
Recognizing the need to adapt, many theatres are enhancing the viewer experience by incorporating immersive technologies such as IMAX and 3D screenings. These technologies aim to provide audiences with an unparalleled cinematic journey that goes beyond the capabilities of home entertainment systems. The goal is to transform a visit to the cinema into a multisensory adventure, enticing viewers back to the big screen.
Diversifying Content
To regain their appeal, cinemas are expanding their content beyond mainstream Bollywood blockbusters. The inclusion of regional films, independent productions, live events, and even sports broadcasts demonstrates a commitment to catering to a diverse audience. This diversification not only broadens the cinematic offerings but also fosters a sense of inclusivity for a wide spectrum of movie enthusiasts.
Strategic Partnerships with OTT Platforms
Acknowledging the digital revolution, many theatres are forming strategic alliances with OTT platforms rather than considering them adversaries. Collaborations, such as PVR Cinemas partnering with Netflix to screen select films before their OTT release, exemplify the synergies between the traditional cinematic experience and the digital realm. These partnerships expand content choices for viewers and attract a new demographic, fostering a symbiotic relationship.
Harmonious Coexistence
The future of entertainment in India seems to be a harmonious coexistence between movie theaters and OTT platforms. While cinemas offer the communal experience of watching on the big screen, OTT platforms cater to the convenience and personalization desired by modern audiences. As technology advances and viewing habits evolve, both industries are poised to adapt and innovate, ensuring they remain relevant to the dynamic demands of entertainment enthusiasts.
Shekhar Kapur, Veteran Director held “Cinema and OTT are not competitors but complementary platforms that offer different viewing experiences.”
The cinema industry’s ability to adapt, innovate, and collaborate paints a promising picture of its enduring relevance in the dynamic entertainment landscape. As audience preferences continue to evolve, cinemas are poised to remain a cherished destination for those seeking a shared, immersive experience.
Alex Pall and Drew Taggart, widely known as “The Chainsmokers,” have achieved remarkable success in the fiercely competitive realm of electronic music. Forbes magazine crowned them the highest-paid electronic duo in 2019, a testament to their musical prowess, further underscored by their Grammy award, two American Music Awards, and seven Billboard Music Awards. Their meteoric rise to fame has been accompanied by the creation of a multifaceted empire that encompasses music, fashion, philanthropy, and more. Having solidified their standing in the music industry, the dynamic duo is now venturing into an entirely different domain â the high-stakes arena of venture capital.
They collaborated with entrepreneurs Milan Koch and Jeffrey Evans in 2020 and founded Mantis Venture Capital, focusing on supporting early-stage tech startups. Since its inception, Mantis VC has successfully secured over $110 million in funding, drawing investments from notable figures such as Mark Cuban, Keith Rabois, Jim Coulter, and Ron Conway. To date, Mantis VC has made strategic investments in nearly 200 groundbreaking companies spanning diverse industries, including healthcare, education, finance, and, naturally, music.
The Chainsmokers, characterized by the electronic production prowess of Drew Taggart and Alex Pall, weave together indie, dance, and pop to create a chart-topping sound, resulting in multiple multi-platinum singles.
Their journey commenced with the release of their official debut single in 2014 â the chart-topping dance hit “#Selfie,” offering a satirical take on the narcissism of the 2010s. Subsequent releases, such as “Roses” and the Grammy-winning “Don’t Let Me Down,” both achieved Top Ten pop status in 2016, each securing at least 5-times platinum certification. The summer of 2016 witnessed the ascent of “Closer,” featuring Halsey on vocals, holding the top spot for 12 weeks and eventually achieving a remarkable 12-times platinum status. In 2017, Taggart and Pall transitioned from their aggressive EDM style to incorporate more pop and indie rock influences, yet maintained their platinum status with hits like “Something Just Like This” featuring Coldplay.
Their full-length debut, “Memories: Do Not Open,” debuted at number one on the Billboard 200 in 2017. The subsequent years saw a consistent release of singles, culminating in the albums “Sick Boy” (2018) and “World War Joy” (2019). Notably, their soundtrack contribution to 2020’s “Words on Bathroom Walls” preceded another Top 40 hit in 2022 with “High” from their fourth set, “So Far So Good.” In 2023, they continued their collaborative efforts with artists like Cheyenne Giles, Bludnymph, and others.
This multifaceted journey showcases The Chainsmokers’ evolution from electronic music sensations to influential players in the venture capital landscape, illustrating their commitment to diversifying their impact across various industries.
The electronic duo has been actively involved in establishing Mantis Venture Capital since 2020. In the initial funding round, Alex Pall and Drew Taggart successfully secured $41 million, followed by an impressive $81 million in the subsequent round. Currently, they are setting their sights on surpassing these achievements with a third fund, concentrating on artificial intelligence and the evolution of Web 4.
Recognizing the power of fashion to connect with fans, The Chainsmokers launched their clothing line, Chainsmokers Merch, in 2016. The line offers a range of apparel and accessories, reflecting their signature style and appealing to their fashion-forward fanbase.
The Chainsmokers Website
Philanthropy
With their growing platform, The Chainsmokers have embraced philanthropy, using their influence to support various causes. They have established their foundation, The Chainsmokers Foundation, which focuses on empowering youth through education and music. They have also partnered with organizations such as Make-A-Wish Foundation and Pencils of Promise, demonstrating their commitment to giving back.
Brand Partnerships
The Chainsmokers’ popularity has made them attractive partners for brands seeking to connect with a younger demographic. They have collaborated with brands such as Spotify, Samsung, and BMW, showcasing their influence and appeal to a wider audience.
From Music to Startups to Venture: The Chainsmokers’ Journey to Mantis VC | 2023 Upfront Summit
Statistics that Highlight Their Impact
Over 53 million monthly listeners on Spotify
Over 25 billion streams on Spotify
Over 40 million records sold worldwide
Numerous awards, including a Grammy Award, an American Music Award, and a Billboard Music Award
Clothing line, Chainsmokers Merch, with a global reach
Established foundation, The Chainsmokers Foundation, supporting youth empowerment
Collaborations with major brands, including Spotify, Samsung, and BMW
The Chainsmokers have maintained a low profile regarding their investment endeavors, channeling their resources into fintech companies such as Trace Finance and Vise, steering clear of consumer-oriented brands. Despite owning a stake in Jaja Tequila, they have deliberately refrained from featuring in advertising campaigns or leveraging their substantial social media following to showcase their investments.
Insiders suggest that the duo’s intentional silence stems from their desire to establish a distinct brand for their business, one separate from their musical pursuits. They have chosen not to issue press releases, allowing the success of their investments to speak for itself. Rather than focusing on direct consumer engagement, they have dedicated their time to engaging with numerous investors.
Functioning in an advisory capacity, the duo has invested more than 10,000 hours comprehending the intricacies of the companies they collaborate with, involving tasks such as scrutinizing pitch decks, analyzing investments, and engaging with founders.
Beyond virtual platforms, the duo frequently engages in calls with engineers contemplating job offers at portfolio companies, leveraging their influence to support hiring efforts.
Alex Pall, aged 37, pursued studies in art history and music business at NYU, while Drew Taggart, aged 32, studied music at Syracuse University. Despite lacking a finance background, they have made noteworthy seed investments of approximately $250,000 in Ember, a coffee mug insulation company, and another investment in LoanSnap, a loan processing service.
In interviews, the duo has expressed admiration for “Margaritaville” singer Jimmy Buffett, citing him as an inspiration for seamlessly intertwining creativity and music writing with entrepreneurial understanding. Buffett’s incorporation of a hospitality company inspired by his song “Margaritaville” serves as a model, leading to the creation of merchandise, casinos, restaurants, and even a retirement community.
Globally, the eCommerce sector is expanding steadily. New eCommerce markets are developing every day, and already-existing markets are hitting new benchmarks. In the eCommerce space, Amazon and Target are well-known competitors, each with special advantages and tactics. Amazon has managed to hold its position as the world’s largest online retailer through its extensive range of goods, effective shipping services, and cutting-edge technologies such as Alexa. In contrast, Target has been focusing on the combination of its physical shops and online presence, providing a carefully chosen assortment, special collaborations, and efficient same-day services. Letâs see what the eCommerce giants, Amazon and Target, have been doing so well that made them what they are today by going through their businesses and comparing them.
Jeff Bezos founded Amazon on July 5, 1994, out of his Bellevue, Washington, garage. It is an American multinational firm focused on digital streaming, cloud computing, eCommerce, online advertising, and artificial intelligence. Amazon allows any vendor to sell anything, taking a cut from every sale. It started as an online bookstore but has since extended into many other product categories, earning the nickname “The Everything Store.”
As one of the most valuable brands in the world, Amazon is sometimes referred to as “one of the most influential economic and cultural forces in the world” today. It is regarded as one of the Big Five American tech companies, along with Microsoft, Apple, Alphabet (the parent company of Google), and Meta.
Target has been around for 100 years (founded in 1902) and was founded by George Dayton. However, the rebranding process that made Target the success we all know today was started in Minnesota and developed through the years via expansion and acquisitions. The American retail company Target Corporation runs a network of hypermarkets and cheap department stores.
Target is well-known for emphasizing high-end, fashionable goods at reasonable prices. Along with groceries, its stores usually sell a variety of miscellaneous products, such as toys, electronics, clothes, home goods, and more. Bullseye is the name of the company’s canine mascot, and both the name and emblem allude to the center of a shooting target. It has continuously been recognized as one of the most philanthropic American businesses.
Target relies on its physical store network to compete in the Shipping Wars as an underdog. Target uses its stores as fulfillment centers for online orders. This reduces shipping costs and competes with Amazon’s quick delivery.
Target’s approach is motivated by the necessity to maintain efficiency and competitiveness in the quickly expanding eCommerce sector, but it also attempts to address environmental issues by lowering carrier mileage and grouping shipments.
By the end of 2026, Target wants to have 15 sortation centers in its network thanks to an investment of $100 million. A sortation center is a logistical facility that brings together, sorts, and distributes the flows passing through it.
Number of Target Stores in the United States from Financial Year 2016 to 2022
Amazonâs Click and Collect & Locker Strategy
Amazon now offers small and medium-sized companies who sell on its marketplace a click-and-collect option. Certain items on Amazon.com can be bought and collected from a nearby shop on the same day. Sellers can also offer same-day delivery using their drivers and vehicles. In addition to the foot traffic that stores receive from Amazon, Click & Collect in-store offers the advantage of attracting new consumers, facilitating interaction between store staff and customers, and the sale of additional products and after-sales services. In addition, this improves the store’s visibility and allows customers to discover the entire range of a store.
When you shop at Amazon, itâs easy to receive your purchases. Sometimes you may want your package delivered to a different place, not your home or work. You can choose a secure pickup location for your Amazon orders with Amazon Locker. You can pick up your packages on your own time and rest easy knowing theyâre safe in the meantime. Shipping to a Locker is free for Prime members.
Amazon Lockers
Financials: Amazon & Target
The online shopping giant Amazon didn’t appear to be slowing down. According to Citi Research, Amazon’s Gross Merchandise Value increased by more than 12% over the previous year, surpassing the eCommerce industry average of 8% growth.
Sales at Amazon increased by 13% in 2023 third quarter to $127.1 billion in 2022. Additionally, Amazon’s global sales increased 16% annually to $32.1 billion. Amazon Web Services, or AWS, saw a 12% rise in sales to $23.1 billion in 2016.
For Target, in the 2023 third quarter, comparable sales fell by 4.9 percent, which was caused by a 4.6 percent fall in comparable store sales and a 6.0 percent decline in comparable digital sales. With $25.4 billion in total revenue, it was 4.2 percent less than the previous year due to a 4.3 percent reduction in overall sales and a 0.6 percent decline in other revenue.
For these retail giants, the upcoming quarters will undoubtedly be a test of their courage, inventiveness, and adaptability. The struggle for American consumers’ wallets is far from over.
Technology and Supply Chain
Both companies are using their technology to innovate and work towards the betterment of the Supply Chain. Amazon is developing a range of supply chain solutions for small and midsize enterprises by combining its vast eCommerce shipping network with its AWS cloud computing capabilities. The tech behemoth unveiled Cardinal and Sparrow, two new intralogistics robots, in 2022. These robots can currently be used to collect items of various sizes, shapes, and materials, transfer things across the fulfillment center, and sort parcels. Amazon has been investigating package delivery using drones. The goal of the Prime Air project is to create a drone delivery system that can deliver packages in under 30 minutes.
On the other hand, Target has invested in digital marketing techniques, website and app upgrades, and better online purchasing. By the end of January 2026, the store hopes to have at least 15 of these locations, known as sortation hubs. Along with increasing its curbside pickup and same-day delivery options for alcohol, Target has also added its highly popular in-store Starbucks cafes to its lineup.
At roughly the same time that Amazon announced its pursuit of a net zero carbon certification for a new Amazon Fresh in Seattle, Target opened its first net zero energy store in Vista, California.
How Target Is Challenging Amazon
Customer Loyalty Programs
Every organization needs to create loyalty programs that would help retain customers. Amazon’s plan to improve its ecosystem and consumer loyalty also includes the creation of Amazon Prime, which offers advantages including free shipping, Prime Video, Prime Music, and more.
On the other hand, Target provides Target Circle, with a free loyalty program. Target Circle offers benefits without charging a price, even if it doesn’t have as many advantages as rivals like Amazon Prime.
Members can vote for local charities in their communities that Target should donate to, as well as access services that are personalized and pertinent to them. Currently, the program has over 120 million members, making it one of the largest and fastest-growing loyalty programs.
Marketing Strategy
Amazon uses a broad and all-encompassing marketing approach to keep its position as the world’s largest online retailer. Perhaps one of the greatest pieces of Amazonâs marketing strategy is the opportunity for customers to post reviews. 93% of people look at online reviews before making a purchase, proving why this strategy is so effective.
Sellers can advertise their products on Amazon using a variety of ad types thanks to the company’s advertising platform. Display ads, video commercials, and sponsored products are a few of the advertising options that Amazon provides. To strengthen its social media presence, it has also collaborated with several content producers.
Target sets itself apart from the competition with its selection of distinctive in-house brands and carefully chosen national brands. It effectively meets the needs of its customers, whether they make purchases in-person or online, by using its stores as fulfillment centers.
Additionally, to preserve and improve relevancy, it interacts with customers through initiatives like RedCard and Target Circle. Target uses its corporate sustainability plan, Target Forward, as its main tool to harness for the good of people, the environment, and the company.
Can Target Catch Up with Amazon?
There were empty brick-and-mortar chains with vacant parking lots when the world came to an abrupt stop in March 2020, but none could compete with Amazon’s massive data collection, logistics, and pricing structure.
Target, however, is gaining traction now that customers are coming back by taking advantage of the one asset that Amazon does not have: a physical store network.
Target has just 1.8% of the eCommerce market share in 2023 compared to Amazonâs 37.6% as per the reports. To manage high volume and boost efficiency, Target constructed sortation centers. This led to a 150% increase in next-day delivery and tens of millions of dollars in savings.
According to Target, customers appear to still value personalization; click-and-collect sales are soaring at its nearly 1,900 US stores. While it may have sounded counterintuitive at the beginning of the pandemic, the combination of eCommerce and physical retailing makes sense today, which is why Amazon is making significant investments in its network of stores.
What Lies Ahead?
For small businesses, Amazon has introduced a “buy now, pay later” option that lets them buy products on credit. But the Ninja cautions that depending on debt to expand a business can be dangerous, particularly for one-person operations where the debt is personally guaranteed. Brian Cornell, the CEO of Target, has drawn attention to a worrying trend in which consumers are cutting back on spending, even on groceries which is a sign of financial strain.
Amazon is still the industry leader in eCommerce right now, but Target has made considerable advances in the online space because of its omnichannel strategy.
Conclusion
Target has established itself as a strong rival by utilizing its advantages in both online and offline retail, while Amazon continues to be an eCommerce giant that sets industry standards. The future landscape for these organizations and others in the industry will surely be shaped by the continued expansion of the e-commerce market.
FAQs
What are sortation centres?
A sortation center is a logistical facility that brings together, sorts, and distributes the flows passing through it. By the end of 2026, Target wants to have 15 sortation centers in its network.
When was Amazon founded?
Jeff Bezos founded Amazon on July 5, 1994.
When was Target founded?
Target has been around for 100 years (founded in 1902) and was founded by George Dayton.
India is growing, one reel at a time, on social media. At present, India holds the second spot in the world for active social media usersâa staggering 755.47 million users! If small businesses donât wake up to this stat soon, they might lose many prospective serviceable customers. At present, India is at the top of the tableâin fact, even above the world averageâwhen it comes to social media hours. Indians spend 2.8 hours on social media each day. A survey by the government’s citizen initiative platform, MyGovIndia, shows the number of digital transactions jumped to 89.5 million in 2022. India’s booming internet economy is only expected to grow further to $1 trillion by 2030, according to a joint survey by Google, Temasek and Bain & Company.
With millions of eyeballs vying for content, online existence is not an option anymore for small and medium enterprises. Instead, the more pertinent question is about gaining visibility and leveraging the high internet usage in the country. According to the Global Social Media Trends Report 2023 by Hubspot, 90% of digital marketers surveyed said building an active online community is âcriticalâ to success in 2023.
StartupTalky spoke to a few small business owners who seemed to have cracked the code on using social media effectively for business. Read on to get their inside bait.
Social media is a great way to add to some branding real estate for your business. But using your social media handles to genuinely connect with people and share your insights on your business can do a lot more than you can imagine. âLinkedIn is a platform where you have to be present as a founder. Have a good LinkedIn profile. LinkedIn is a profession-to-professional connection. It is about telling people what you are doing or what your thoughts are about the ecosystem. A lot of my businesses happen on LinkedIn. I got listed on Blinkit through LinkedIn. Harvinder (Singh, previously manager at Bkinkit) put up a post. I commented on the post and my comment got about 80 likes. So I grabbed his attention and sent him an email,â said Sairaj Dhond, founder of Wakao Foods, who is well known for his appearance on Shark Tank.
Global Social Media Users Over the Years
Be Consistent
Simply posting content about your business regularly can help you reach your potential customers. âBusinesses should at least post one reel every day. Content is king, and therefore we try to put educational reels that viewers can relate to. They should try to make it as simple and as easily understandable for the viewer as possible,â said Sumeet Salve, Chief Marketing Officer at ithrive, a health consultation platform.
Get Innovative
You know your product or service the best. Trying to add a dash of novelty to your subject matter or product can catch your attention and also reach out to your audience. Take, for instance, designer Jasleen Kaur from Design Machines, who went viral for her âJust Looking Like a Wowâ reel. Her nomenclatures for names of dress colors be it ladoo peela, baingani purple, or mouse brown, have taken the internet by storm. Kaur has not only made an appearance on the hit reality TV show Bigg Boss but has also reportedly admitted that her business opportunities have taken off.
Be Authentic
Staged performances are best left for the movies. For an entrepreneur, being real can help connect with your audience.
For me, itâs always been about relativity. If I like some trending audio, I just pick it up and then make a reel. No oneâs life is as fancy as they show on Instagram. I donât have a big warehouse; I work from home and I am the only person who works. I wanted to debunk the myth that you are a successful business only if you have employed 100 people, said Shraddha Mishra from Letters by Shraddha.
Shraddha started her first Instagram post during the pandemic and has amassed over 15,000 followers on Instagram in just three years since she began her social media page. She has even given a TEDx talk on her entrepreneurial journey.
Conclusion
Social media is the new mall, and it is here to stay. If you are not on this digital dukaan, then it could very well sound like the death knell. Donning the hat of your customer can sometimes give perspective on what a customer is thinking and what he or she would like more of from your brand, leading to more viral ideas and trending reels. Lastly, having fun and being authentic could go a long way toward connecting with the ecosystem as a whole.
The income tax (I-T) department has reportedly uncovered instances of tax evasion totaling around Rs 10,000 crore over three years, as per credible sources. The evasion is believed to have been perpetrated by online retailers marketing their products through social media channels like Instagram and Facebook. Notices have been issued to 45 brands operating nationwide, and it is anticipated that additional companies will receive similar notifications in the near future. These companies are alleged to have either neglected tax payments or provided inaccurate information regarding their incomes, according to insider information.
A high-ranking official, discussing the issue, shared insights with a publication, declaring, “Beyond significant eCommerce entities, we are actively overseeing operations on Instagram and Facebook, revealing a suspected evasion amounting to roughly Rs 10,000 crore.” Notifications from the Income Tax (I-T) department were sent out from the final week of October to November 15, covering evaluation periods from 2020 to 2022.
The report identifies the 45 companies involved in sectors such as apparel, jewelry, footwear, bags, and gift items. This roster comprises well-known retailers utilizing social media platforms for consumer outreach. Several of these companies, which received the I-T notices, were also involved in international product sales.
India boasts over 230 million active Instagram users, the highest globally, and more than 314 million Facebook users. Government sources assert that the 45 entities in question exhibit significant turnovers. An official elaborated on the sales activities of these companies, revealing, “They operate small shops and warehouses, primarily selling through Instagram, with turnovers exceeding Rs 110 crore, while their reported income tax returns were only Rs 2 crore.”
Following the impact of COVID-19, there was a noticeable upswing in the number of retailers utilizing these platforms, known for their substantial user engagement. The official noted that three Mumbai-based saree eTailers attracted the attention of the tax department after sponsoring a high-profile fashion show.
Most of the transactions involving these online retailers were conducted through UPI, facilitating the I-T department’s ability to trace these financial activities. Despite the increasing trend of individuals leveraging social media for retail purposes, such income often goes unreported, leading to the non-payment of taxes.
Social Commerce Surpasses Ecommerce Dominance in India
In 2022, the projected market size for social commerce in India stands at seven billion U.S. dollars, with expectations of an increase to 84 billion U.S. dollars by 2030. eCommerce has dominated the market for over a decade, leading to a discernible shift towards social commerce, which is poised for significant advancement.
Market Size of Social Commerce in India in 2019, With Forecasts From 2022 Until 2030
Social commerce involves the direct selling and purchasing of products or services through social media platforms, encompassing every aspect from product discovery to the entire checkout process, shaping a holistic shopping experience for consumers.
The prominence of social commerce is evident in the State of Social Media Investment Report, revealing that 77% of consumers are likely to favor enterprises offering a superior social media experience. Surprisingly, four-fifths of social media marketers anticipate consumers will increasingly buy directly from social apps rather than brand platforms or third-party eCommerce portals in 2023.
While many companies engage in sales through both eCommerce sites and social media handles, in India, the bulk of social commerce transactions are propelled by new brands and first-time entrepreneurs. With the continuous surge in social media users, brands are innovating strategies to convert captive audiences into customers.
Given that people spend an average of three hours daily onlineâengaging in activities such as posting, scrolling, viewing videos, and messagingâthis presents a crucial window of opportunity for brands to target consumers through their marketing tools.
Unlike transactional buy-and-sell models, social commerce focuses on building a dedicated community around a brand. Brand development hinges on loyal fans or followers who praise and promote the brand, contributing to a robust community or consumer base in a short period. Social commerce differentiates itself by leveraging influencers for product marketing, fostering community creation efficiently.
The authenticity of feedback within social commerce is bolstered by a strong presence on social media and community connections, providing organic and genuine feedback. With its distinct advantages over traditional eCommerce methods, there is a growing global belief that social media represents the future of eCommerce.
The trajectory of social commerce indicates sustained growth in the years to come, driven by approximately 70% of the nation’s population actively using social media. Presently valued at $2 billion, industry analysts anticipate the social commerce market in India to grow at a CAGR of around 50 to 60% over the next five years.
In light of these statistics, it is evident that brands adept in social commerce are strategically investing time, money, and resources to enhance their success through this evolving platform. This increased success, however, has also attracted the attention of the income tax department.
In the recently unveiled masterpiece, “Indian Baseball Dreams,” a captivating docuseries featured on Disney+ Hotstar, the narrative unfolds around the remarkable journey of Arjun Nimmala. His destiny took an unprecedented turn when he became the Toronto Blue Jays’ first-round pick during the MLB amateur draft in July. This historic moment etched Nimmala’s name in the annals of sports history as the inaugural first-generation Indian American to secure such a prestigious position across the four major U.S. professional sports.
This chronicle of triumph is poised to ignite the aspirations of countless Indian sports enthusiasts. In a land where cricket reigns supreme, the prospect of making a mark in baseball may seem improbable. Yet, the tale of Rinku Singh and Dinesh Patel immortalized in a Walt Disney film, stands as a testament to the realization of such dreams.
Singh, prevailing over 35,000 competitors in the talent-hunt spectacle known as “The Million-Dollar Arm” (TMDA), emerged victorious three years ago. He is on the brink of breaking into Major League Baseball (MLB), having honed his skills with the minor-league Pittsburg Pirates. Patel, securing a commendable position in the throwing contest, secured a contract with the Pirates as well. His journey included a lucrative stint in the U.S., where he even had the privilege of meeting President Barack Obama. Now, in his homeland, Patel seeks to share his wealth of experience by venturing into coaching.
The echoes of Singh and Patel’s accomplishments resonate as India seeks new trailblazers. The second iteration of TMDA recently commenced in Bangalore and is set to traverse 60 cities, towns, and villages in a quest for potential baseball prodigies.
Vivek Daglur, the vice president of Turn On, the organization partnering with TMDA in India, reflects on the awe-inspiring dedication of Indian sports enthusiasts. Many, driven not merely by sporting passion but also by the pursuit of employment in institutions like the army or railways, exhibit an unparalleled commitment. Daglur recounts encounters with individuals who could afford only a single meal a day yet ran 20 kilometers, exemplifying their determination to become marathon runners. Such narratives fuel the fervor behind TMDA, as India seeks its next Million-Dollar Arm.
Within the vast expanse of India, a nation teeming with over 1.4 billion inhabitants, lies an inexhaustible reservoir of sporting brilliance. However, the transformation from raw talent to a seasoned athlete is an arduous journey, often fraught with obstacles. It is against this backdrop that the urgent demand for sports counseling arises. Akin to the field of career counseling, sports counseling plays a pivotal role in identifying and cultivating athletic potential across the nation.
The axiom, “Cricket is not just a sport, but a religion in India,” resonates deeply with every denizen of the country. However, a gradual and affirmative metamorphosis has graced India’s sporting panorama in recent years. Triumphs abound, from the Tokyo Olympics 2021 to the ICC Women’s Cricket World Cup and the 2023 Asian Games. Notably, the resounding success of cricketing leagues such as the Indian Premier League has precipitated investments and sponsorships in diverse sports like hockey, kabaddi, and football, fostering augmented popularity, viewership, and an impassioned fan base. This evolution, significant in itself, has also spotlighted the vast potential for empowering women and girls in the realm of sports.
The Role of Sports Counselling in Talent Identification
In the realm of psychology, sports counseling, a specialized branch, concentrates on augmenting the mental and emotional well-being of athletes. Its objective is to empower them to optimize their performance and realize their full potential. This multifaceted discipline encompasses a spectrum of services, including identifying and assessing individual strengths and weaknesses, developing mental skills for peak performance, enhancing motivation, focus, and concentration, and the management of stress, anxiety, and performance-related issues.
In the context of India’s vast populace, sports counseling plays a pivotal role in identifying and nurturing budding talent. Through individualized assessments and tailored guidance, sports counselors can unearth latent potential, steering aspiring athletes toward their sporting aspirations.
Market Size of the Sports Industry Across India From 2017 to 2022
Identifying Untapped Potential
The sheer magnitude and diversity of India’s population create an expansive reservoir of undiscovered sporting potential. From bustling urban centers to remote rural areas, a wealth of untapped talent lies dormant, awaiting discovery. The lack of a systematic approach to recognizing and nurturing this potential results in many budding athletes remaining unseen, leading to a considerable loss for Indian sports.
The necessity for sports counseling in India is underscored by the diverse socio-economic landscape of the country. In numerous regions, limited access to quality sports infrastructure and coaching facilities remains a challenge. Sports counselors can bridge this gap by providing personalized guidance and support, enabling young athletes from all backgrounds to pursue their sporting dreams.
Renowned sports psychologist Dr. Rajesh Mishra emphasizes, Sports counselling can act as a catalyst in recognizing latent talent by providing personalized guidance and assessment. It helps in identifying the right sport for an individual based on their physical attributes, mental makeup, and personal interests.
Similar to career counseling, which aids individuals in navigating their professional paths, sports counseling plays a vital role in guiding aspiring athletes toward the most suitable sports disciplines. This guidance proves instrumental in shaping their sporting careers and maximizing their potential. A study by Northeastern Development Finance Corporation Ltd. reveals that a majority of athletes in the Northeast region aspire to secure government jobs, indicating a lack of awareness about alternative career paths in sports.
Cultural Shift and Grassroots Engagement
Implementing sports counseling in India necessitates a cultural shift and a proactive approach to grassroots engagement. Recognizing this, sports development expert Mr. Ravi Singh states, “We need to create a culture where parents, teachers, and communities actively support and encourage children to pursue sports. Sports counseling can act as a bridge between aspirations and opportunities, helping individuals make informed choices about their sporting journey.”
References from Successful Models
In countries like Australia and the United States, sports counseling is an integral part of their talent identification and development systems.
Dr. Maya Gupta, a renowned sports scientist, asserts, in countries where sports counseling is a norm, athletes benefit not just in terms of skill development but also in terms of mental preparedness. It is a holistic approach that ensures the athlete is well-rounded and ready to face the challenges of competitive sports.
Countries with robust sports counseling systems have witnessed a surge in their sporting prowess. The Australian Institute of Sport (AIS) and the United States Olympic & Paralympic Committee (USOPC) stand out as exemplary models. These organizations provide comprehensive sports counseling services, ensuring athletes receive guidance not only on their sporting skills but also on areas such as nutrition, mental resilience, and career planning.
Quoting from the AIS model, Dr Sarah Kapoor, a sports education specialist, Australia’s success in sports is not just about talent; it’s about a systematic approach to athlete development. Sports counseling is a key component in this system, addressing the unique needs of each athlete and preparing them for success on and off the field.
Examples of Successful Sports Counselling Initiatives in India
Several initiatives in India have demonstrated the effectiveness of sports counseling in talent identification and development. The Sports Authority of India (SAI), for instance, has implemented various programs that integrate sports counseling into the training of athletes at all levels. These programs have yielded positive results, with many athletes achieving significant improvements in their performance and overall well-being.
As India ardently pursues excellence in the global sporting arena, the integration of sports counseling into its athlete development strategy emerges not merely as a beneficial endeavor but an imperative one. By identifying and nurturing talent, guiding athletes throughout their careers, and fostering a culture of sports participation, India can unlock its expansive sporting potential.
In the resonant words of the legendary athlete Milkha Singh, with the right guidance and support, Indian athletes can not only compete but also excel on the global stage. Sports counseling is the missing link that can make this a reality.
India’s sporting future teems with immense promise, and sports counseling stands poised to unearth the latent potential within its diverse population. Interestingly, sports counseling itself is emerging as a promising career in India. By providing individualized support and guidance, sports counselors can empower aspiring athletes to achieve their dreams and bring glory to the nation on the global sporting stage.
The online astrology domain has witnessed a sixfold expansion over the past decade, and the number of startups in this space tripled during the pandemic. In 2013, a mere five astrotech companies came into existence. However, the landscape has undergone significant transformations in the last couple of years, particularly post-pandemic, as astrology has seamlessly transitioned into the online realm. The digitization of astrology has made it more accessible to millennials, xennials, and Gen-Zers, offering advantages like transparent pricing, affordability, and a variety of astrology services such as tarot reading, palmistry, face reading, Vedic astrology, among others. These startups, leveraging cutting-edge technologies like Artificial Intelligence (AI), Machine Learning (ML), and voice-based services, have captured the attention of venture capital firms, leading to substantial investments.
For astrotech startups in a deeply religious country like India, the current festival and wedding season has proven propitious, resulting in a significant revenue uptick due to heightened consumer demand. This surge has prompted many of these firms to enter funding discussions, as investors increasingly place their bets on them.
According to an EMR report, the Indian religious and spiritual market was valued at $44 billion in 2020 and is anticipated to grow at a CAGR of 10% during 2022â2027.
MyPandit CEO Kalpesh Shah identifies anonymity, convenience, and cost as key drivers behind the widespread adoption of tech-based astrology services. The evolved startup ecosystem, widespread mobile phone usage, enhanced broadband services, and tech-savvy consumers have all contributed to the sector’s overall growth. The recent phenomenon of digitizing astrology services through apps, with live chats and calls with astrologers, has gained considerable traction. AstroTalk, for instance, reports that about 60% of their business comes from chats with astrologers, while around 35% comes from calls.
Although the astrotech industry in India is still in its early stages, it is rapidly gaining momentum. A joint report by FICCI and Ernst & Young estimates the Indian astromarket to be valued at approximately INR 30,000 crores (USD 4 billion) and forecasts it to reach INR 50,000 crores (USD 6.5 billion) by 2025.
Estimated Compound Annual Growth Rate of the Astrology Market in the Asia-Pacific Region From 2022 to 2031, by Selected Country
Emerging Astrotech Applications: Expanding the Horizons of Astrology
The realm of astrology is undergoing a remarkable transformation, propelled by the convergence of technology and the timeless wisdom of the stars. Astrotech startups are venturing beyond traditional astrological services, exploring innovative applications that are redefining the way people interact with astrology and its insights.
Astro-Gaming: Enhancing Gaming Experiences
The world of gaming is not immune to the allure of astrology. Astro-gaming startups are harnessing the power of astrological principles to enhance gaming experiences and provide personalized insights to gamers. By analyzing astrological profiles, these startups can help gamers identify their strengths, weaknesses, and optimal playing styles, potentially leading to better gameplay and strategic decision-making.
Astro-Finance: Navigating Financial Markets with Astrological Guidance
In the intricate world of finance, astro-finance startups are emerging as beacons of astrological guidance. By combining astrological principles with financial data analysis, these startups are offering investors and traders unique perspectives on market trends and potential investment opportunities. They may provide insights into favorable trading periods, identify potential risks, and suggest astrologically aligned investment strategies.
Astro-Compatibility: Unveiling the Mysteries of Relationships
Astro-compatibility startups are delving into the depths of human relationships, utilizing astrological principles to assess compatibility between individuals. By analyzing birth charts and comparing planetary alignments, these startups aim to provide insights into the potential strengths, challenges, and overall compatibility of a relationship. While not a definitive predictor of success, astro-compatibility can serve as a valuable tool for self-reflection and understanding in the pursuit of harmonious relationships.
Expanding the Scope of Astrotech
These emerging applications are not merely niche trends; they represent a significant expansion of the astrotech industry’s scope. By venturing into new domains, astrotech startups are demonstrating the versatility and applicability of astrological insights beyond traditional areas like personal guidance and predictive astrology.
Implications for the Future
The emergence of these innovative applications signals a shift in the perception of astrology, transforming it from a mere divination practice into a multifaceted tool for personal growth, strategic decision-making, and enhanced understanding of human interactions. As astrotech startups continue to push the boundaries of astrological applications, we can expect to see further integration of astrology into various aspects of life, from gaming strategies to financial decisions, and even the pursuit of fulfilling relationships.
Venturing into the Digital Realm: How Astrologers in India Embrace Astrotech Startups
The advent of astrotech startups has revolutionized the way astrological services are delivered and consumed, opening up new avenues for astrologers in India to expand their reach and connect with a wider clientele. While traditional methods like face-to-face consultations and telephone interactions still hold value, online platforms have become an indispensable tool for astrologers seeking to grow their businesses and establish a strong online presence.
Astrotech startups offer a range of opportunities for astrologers to showcase their expertise and attract new clients.
Accessibility and Convenience: Online platforms provide astrologers with a virtual space to reach a broader audience, eliminating geographical barriers and enabling them to connect with clients from across India and even internationally. Users can conveniently access astrological services from the comfort of their homes or on the go, making consultations more accessible and time-efficient.
Diverse Service Offerings: Astrotech platforms provide a flexible environment for astrologers to offer a variety of services, including personalized consultations, horoscope generation, compatibility analysis, and predictive astrology. This allows astrologers to cater to a wider range of client needs and preferences.
Enhanced Credibility and Reach: Reputable astrotech startups offer astrologers a platform to establish their credibility and attract new clients through user reviews, ratings, and certifications. Additionally, these platforms often provide marketing and promotional support, helping astrologers reach a wider audience and increase their visibility.
Leveraging Technology for Personalized Insights: Astrotech startups are harnessing the power of technology to provide astrologers with tools that enhance their service offerings. AI-powered chatbots can handle initial inquiries and provide basic astrological insights, freeing up astrologers to focus on more complex consultations. Additionally, data analytics tools can help astrologers gain deeper insights into client demographics, preferences, and needs, enabling them to tailor their services accordingly.
Network Building and Collaboration: Astrotech platforms provide a space for astrologers to connect with each other, share knowledge, and collaborate on projects. This fosters a sense of community and can lead to new opportunities for collaboration and growth.
Navigating the Astrotech Landscape: Strategies for Success
To thrive in the astrotech landscape, astrologers can adopt the following strategies:
Establish a Strong Online Presence:Create a professional website or profile on a reputable astrotech platform. Utilize social media platforms to engage with potential clients, share astrological knowledge, and build a strong online reputation.
Specialize in a Particular Area of Expertise: Develop in-depth knowledge and expertise in a specific area of astrology, such as career guidance, relationship compatibility, or financial astrology. This can help attract clients seeking specialized advice.
Deliver High-Quality Services: Provide accurate, insightful, and personalized astrological consultations. Maintain a genuine connection with clients and prioritize their satisfaction.
Continuous Learning and Adaptation: Stay updated on the latest astrological developments and trends. Embrace new technologies and tools offered by astrotech platforms to enhance service delivery.
Embrace Digital Marketing: Utilize digital marketing strategies, such as search engine optimization (SEO) and social media advertising, to reach a wider audience and attract new clients.
Praneeta G, a tarot reader from Divine Talk Astrology, emphasizes the transformative impact of Astrotech startups on astrologers in the country. According to her, these startups have unlocked a realm of possibilities by offering astrologers sophisticated tools and platforms. This, in turn, enables them to broaden their outreach, elevate the quality of their services, and solidify their standing as reputable experts in the field.
In Praneeta’s perspective, the key lies in astrologers embracing technology, fostering innovation, and maintaining a steadfast commitment to delivering high-quality services. By doing so, astrologers can adeptly navigate the dynamic landscape of Astrotech, ensuring not only survival but also flourishing in this ever-evolving industry.
Notable Astrotech Startups in India
India’s astrotech landscape boasts several innovative startups shaping the future of astrology:
AstroTalk: India’s premier astrology platform, providing personalized consultations with expert astrologers.
AstroBuddy: An AI-powered astrology app offering daily horoscopes, personalized insights, and compatibility matching.
Askmonk: A data-driven astrology platform utilizing AI and ML to generate personalized astrological reports and insights.
Taaraka: A hyperlocal astrology platform connecting users with astrologers in their vicinity.
Cosmic Insights: A startup providing astrological insights for businesses, aiding them in making informed decisions.
AstroTalk : By Selling Astrology Online This Startup is Now 1000 Crores Company – How ?
Key Considerations Before Opting for Online Astrology Consultation
In the contemporary era, astrology retains its significance as a valuable tool for self-reflection, offering insights into personality traits, decision-making processes, and relationship dynamics. It serves as a framework for understanding both oneself and the cosmos, providing emotional support during challenging periods. The cultural importance of astrology, its accessibility through online platforms, and its ability to offer an alternative perspective in a data-driven world contribute to its enduring relevance. While not universally embraced, its value lies in guiding individuals, fostering a sense of connection to the universe, and providing a distinctive lens for interpreting life’s complexities and future events. For those who believe in it, astrology functions as a supportive system. In recent times, numerous online astrology portals claim to offer consultation services.
However, it’s essential to consider specific factors when opting for online astrology consultations:
Credibility of the Astrologer: Thoroughly research the astrologer’s background, qualifications, and experience. Rely on reviews or recommendations from trusted sources to ensure their credibility.
Clarity of Purpose: Clearly define what you seek from the consultation, whether it’s career guidance, relationship insights, or general life advice. Clarity will enhance the effectiveness of the session.
Prepare Specific Questions: Compile a list of specific questions or areas you want to focus on during the consultation. This ensures that your concerns are addressed effectively.
Check Technology Requirements: Ensure you have a stable internet connection and the necessary technology (video call software, microphone, etc.) for a seamless online session.
Privacy and Confidentiality: Confirm the astrologer’s commitment to confidentiality. Ensure that your personal information and discussions remain private and secure.
Take Notes: Keep a notepad or digital note-taking tool handy to jot down important insights or recommendations during the consultation.
Manage Expectations: Acknowledge that astrology consultations provide guidance, not absolute predictions. Maintain an open mind and be prepared for interpretations and advice rather than definitive outcomes.
Post-Consultation Support: Inquire about any follow-up sessions, additional information, or resources provided after the consultation. Some astrologers may offer ongoing support or guidance.
Payment and Fees: Understand the fee structure, payment methods, and any additional charges for follow-up sessions or extended consultations.
Follow-Up and Feedback: After the consultation, consider providing feedback. If necessary, follow up on any points discussed or seek clarification on certain insights.
Since time immemorial, the matrimonial institution in India has been, at its essence, a festive commemoration, as elucidated in the epic narratives of Mahabharata and Ramayana. Despite the gravitas attached to marriage, Indians embrace it with a festive spirit, recognizing the ephemeral nature of life. From the intricacies of the bride’s lehenga to the meticulous wedding decor, Indians strive for perfection, transforming their affinity for fairytale weddings into a thriving million-dollar industry. This industry encompasses a spectrum of contributors, from small wedding card designers to garland makers and high-end designer labels.
As per a survey conducted by the Confederation of All India Traders (Cait), India is poised for its grandest wedding season between November 23 and December 15 this year. The survey estimates a staggering 3.5 million weddings during this period, projecting a substantial economic surge in the wedding industry. The anticipated flow of approximately Rs 4.25 trillion in wedding-related purchases and services reflects the monumental scale of these celebrations. In Delhi alone, over 350,000 weddings are expected, constituting 10% of the total within India during these dates and potentially generating Rs 1 trillion for the sector. Last year, 3.2 million weddings took place during the same period, with expenses totaling around Rs 3.75 trillion.
Cait’s national president, B.C. Bhartia, and secretary general, Praveen Khandelwal, categorize wedding expenditures into five segments, ranging from Rs 3 lakh to over Rs 1 crore per wedding. The Indian wedding industry, currently valued at $100 billion, is anticipated to double by 2030. This growth is fueled by factors such as a burgeoning middle class, increased disposable incomes, and a rising preference for destination weddings.
India’s demographic profile, with 34% of the population aged 20-39 and close to 10% aged 15-19, sets the stage for sustained industry growth. The marriage of multiple industries within the Indian wedding sector, including apparel, events, and hospitality, underscores its colossal influence. Unlike celebrations in many cultures lasting one to two days, Indian weddings extend over three to seven days, involving key sectors such as hotels, catering, decoration, and entertainment.
Key components of the Indian wedding industry include matrimony services, venues, catering, decor, apparel, jewelry, and entertainment. Arranged marriages, constituting 93% of unions, drive a diverse matchmaking business, ranging from traditional matchmakers to online platforms like Matrimony.com, valued at over INR 1300 crores.
Wedding venues, ranging from traditional palaces to modern hotels, form a critical aspect, as does catering, renowned for its lavish feasts featuring diverse cuisines. Elaborate decor, personalized outfits, and traditional jewelry contribute to the opulence of Indian weddings. The cultural shift towards conscious consumption is evident in increasing expenditures on outfits not only for couples but also for close family members and friends, driven by the desire for aesthetically pleasing and Instagram-worthy weddings.
Renowned designer Sabyasachi Mukherjee emphasizes that wedding collections are no longer limited to brides. The Indian wedding and celebration wear apparel market is projected to grow at a 15% to 17% CAGR, reaching INR 1,325 billion to 1,375 billion by FY2025. The growth is not only fueled by couples but also by demand from their close circles.
Jewelry holds a significant place in Indian weddings, with brides adorning necklaces, earrings, bangles, and anklets. Entertainment, featuring live music, dance performances, and various forms of entertainment, is integral to Indian weddings.
Hotels play a crucial role in elevating the grandeur of weddings. Although the hotel industry faced challenges during the pandemic, the lifting of restrictions has resulted in a noticeable uptick in revenue from events and weddings.
India hosts 25% of the world’s weddings, with couples taking a more active role, especially accelerated by digital platforms and Medtech during the pandemic. Wedding budgets in India this year range from Rs 1 crore to Rs 19 crore, depending on factors like scale, destination, and guest count, as noted by industry experts Tina Tharwani and Nitya Bagri.
The evolving trends in the Indian wedding industry include destination weddings, themed ceremonies, personalized touches, and a growing emphasis on sustainability. The desire for unique experiences and personalization is evident across various sectors, including travel, food and beverages, and gifting.
The landscape of the Indian wedding industry is in constant flux, shaped by emerging trends that redefine the sector’s dynamics:
Destination Weddings
A rising trend sees couples opting for exotic locales such as beach resorts, hill stations, and palaces for their nuptials.
Theme Weddings
Another prevalent trend involves couples choosing specific themes for their weddings, ranging from Bollywood and fairy tales to vintage motifs.
Personalized Weddings
Couples are increasingly seeking ways to infuse their weddings with personal touches, extending from unique attire choices to crafting their wedding cakes.
Sustainable Weddings
There’s a growing inclination towards sustainable weddings in India, with couples making eco-friendly choices for venues, catering, and decorations.
Customization, with a focus on enhancing guest experiences, lies at the core of meticulously curated high-end weddings. Shivan Gupta emphasizes the importance of details, ensuring that even scaled-down weddings maintain an elevated experience for guests.
Couples are exploring innovative decor for wedding ceremonies to create immersive sensory experiences. Ambika Gupta, founder, and creative director of The A-Cube Project shares an example where a wedding at Umaid Bhawan Palace aimed to recreate the vibrant atmosphere of a flower market.
Personalization is a crucial aspect of creating a distinct and lavish wedding. An example is a ceremony inspired by a proposal in the Maldives, with custom embroidered outfits featuring dolphins and marine life.
Wedding gifts are a significant investment, influenced by social media and a growing interest in conscious gifting. Sustainable brands like Sarjaa, a women’s handbag brand, have witnessed a surge in orders for wedding gifts.
In the post-pandemic era, couples are favoring craft brands over mainstream ones for alcohol at weddings. There’s a notable shift towards premium choices like aged tequilas, as observed by Kunal Patel and Hemang Chandat of Monika Alcobev.
Indian Wedding Extravaganza
Sustainable Luxury
A notable trend is the rising interest in sustainable luxury, with couples incorporating eco-friendly elements and waste management plans into their weddings. A growing number of couples are prioritizing sustainability, with nearly 25% of inquiries received by Shaadi Squad post-pandemic expressing a desire for eco-friendly elements. This marks a significant increase from the pre-pandemic era.
Measures such as waste management plans to minimize environmental impact are becoming integral to wedding planning. The A-Cube Project collaborates with NGOs and local artisans for eco-friendly decor elements, reflecting a conscious effort to reduce carbon footprints.
Year-Round Weddings
Unlike in the past, weddings are no longer confined to specific seasons. The concept of seasonal weddings is evolving, with millennials embracing destination weddings throughout the year. This shift aligns with the preference for intimate weddings, favored by around 80% of Indian families.
The New Way Forward
The Indian wedding industry, currently estimated at Rs 3.78 lakh crore, is projected to experience annual growth rates of 20 to 25 percent, as stated by Praveen Chander Kumar of IHCL. This evolution is marked by couples adopting a more enterprising, conscious, and selective approach to weddings, aiming to showcase their unique identities.
The trend of young couples striving to create distinctive wedding experiences appears to be a lasting phenomenon, signifying a departure from traditional norms.
Indian Wedding Startups
Here are a few wedding startups in India:
WedMeGood
Founded
2014
Based
Gurugram
Services
Venue booking, Vendor discovery, Wedding planning tools, Wedding blog
Top Indian Wedding Startups – WedMeGood
WedMeGood is a leading wedding planning platform in India that offers a wide range of services to help couples plan their perfect wedding. From venue booking and vendor discovery to wedding planning tools and a popular wedding blog, WedMeGood has everything you need to make your wedding day a success.
Founded in 2014, WedMeGood is one of the most popular wedding planning platforms in India, with over 1 million users and a presence in over 100 cities. The platform offers a wide range of services, including:
Venue Booking: WedMeGood has a comprehensive directory of wedding venues in India, from palaces and banquet halls to beach resorts and hill stations.
Wedding Planning Tools: WedMeGood offers a suite of wedding planning tools to help couples with everything from creating a budget to managing their guest list.
Wedding Blog: WedMeGood has a popular wedding blog that features expert advice, inspiration, and real wedding stories.
ShaadiSaga now WeddingBazaar is another popular wedding planning platform in India that offers a similar range of services to WedMeGood. They are known for their focus on providing personalized wedding planning experiences.
Founded in 2015, ShaadiSaga has a team of experienced wedding planners who work closely with couples to create their dream weddings. The platform offers a wide range of services, including:
Venue Booking: ShaadiSaga has a comprehensive directory of wedding venues in India, from palaces and banquet halls to beach resorts and hill stations.
Wedding Planning Tools: ShaadiSaga offers a suite of wedding planning tools to help couples with everything from creating a budget to managing their guest list.
Personalized Wedding Planning: ShaadiSaga offers a personalized wedding planning experience that is tailored to the needs and preferences of each couple.
Weddingplz
Founded
2013
Based
Delhi
Services
Wedding vendor information
Top Indian Wedding Startups – Weddingplz
Weddingplz is a Delhi-based wedding planning platform that offers a comprehensive directory of wedding vendors in India. They also have a strong presence in the North Indian wedding market.
The Wedding Brigade is a Mumbai-based wedding planning platform that specializes in destination weddings. They offer a range of services, including venue booking, vendor discovery, and travel arrangements. Wedding Brigade is a Mumbai-based wedding planning platform that specializes in destination weddings. They offer a range of services, including venue booking, vendor discovery, and travel arrangements.
Founded in 2015, Wedding Brigade is a one-stop shop for couples planning a destination wedding. The platform offers a wide range of services, including:
Venue booking: Wedding Brigade has a comprehensive directory of destination wedding venues, from beach resorts to hill stations to palaces.
Travel arrangements: Wedding Brigade can help couples with all of their travel arrangements, including flights, hotels, and transportation.
Shaadimagic.com
Founded
2014
Based
Delhi
Services
Wedding products and services
Top Indian Wedding Startups – Shaadimagic
Shaadimagic.com is a Delhi-based wedding planning platform that offers an online solution for wedding shopping. They have a wide range of wedding products and services available on their website.
In an effort to control the unchecked expansion of unsecured consumer lending, the Reserve Bank of India (RBI) recently issued a notification. The directive increases the risk weight for consumer credit exposure of banks and non-banking financial companies (NBFCs), potentially impacting fintech players. Industry experts suggest that these lending institutions will now need to allocate more capital to be set aside against the unsecured loans they disburse.
The RBI’s measure involves a 25-percentage-point increase in the risk weightage for both existing and new unsecured consumer credit exposure of commercial banks and NBFCs, elevating it from 100% to 125%. While the industry players appreciate the move for its risk mitigation aspects, concerns have been raised about the potential decline in loan growth. In essence, this adjustment is expected to drive up the lending costs for unsecured consumer loans.
The RBI has expressed concerns about the escalating trend in unsecured consumer loans, specifically personal and credit card loans. With the latest circular instructing banks and NBFCs to heighten risk weights on such loans and restrict exposure, the RBI aims to curb the rapid growth in this segment.
According to RBI data, personal loans witnessed a 23% growth in August 2023, and credit card outstanding increased by 30%, compared to the figures from August 2022.
The higher risk weights entail that banks and NBFCs must allocate more capital for each loan they extend. In simple terms, this measure safeguards against potential issues if borrowers fail to repay their loans, preventing banks from encountering financial trouble. Lenders are now required to adhere to set limits on exposure to various segments of consumer credit as approved by their boards. Additionally, top-up loans backed by depreciating assets, such as car loans, will now be categorized as unsecured loans.
âRBIâs recent move to strengthen regulations on consumer lending, particularly in personal loans, is a positive step towards risk reduction. In response, our partners have already implemented more stringent underwriting criteria over the last 30 days to ensure loan quality. It’s anticipated that this RBI initiative will contribute to a decline in loan growth, aligning to curb excesses in the NBFC space,â commented Manish Shara, Co-founder & CEO of Zet.
Following global standards, a 100% risk weightage implies that INR 92 out of every INR 100 loan originates from depositorsâ money, while INR 8 comes from shareholdersâ investment. With the recent 25-percentage-point increase, banks and NBFCs will now need to source INR 10 from shareholdersâ investments. This adjustment is expected to impact companies like Paytm, CRED, Navi Finserv, OnEMi Technologies (which operates Kissht and RING), along with several consumer-focused fintechs such as Freo, Fibe, Kreditbee, Paytm, and CRED, considering their substantial share in the number of loans disbursed.
Offering insight into the central bankâs move, Rishabh Goel, Co-founder and CEO of Credgenics, stated, The current rise in risk weight assessment is likely to result in a marginal increase in loan pricing by banks. This serves as a signal urging lenders to exercise caution, especially in the small-ticket loans segment.
Priyanka Chopra, COO, and managing partner for seed investing at IIMA-CIIE, predicted that this move would lead to a moderation of unsecured credit for digital lending startups. However, she noted that established players with a robust capital base and calibrated underwriting are expected to experience minimal impact.
The RBIâs decision was driven by the necessity to control the growth in unsecured loans. Last month, RBI governor Shaktikanta Das emphasized the high growth in certain components of consumer credit, advising banks and NBFCs to enhance internal surveillance mechanisms, address risk build-up, and institute suitable safeguards. The notification also introduced changes to the risk weight of credit card receivables of scheduled commercial banks and bank credit to NBFCs to address potential risk build-up. Furthermore, the RBI stated that all top-up loans against movable assets with inherent depreciation, such as vehicles, must be treated as unsecured loans for credit appraisal, prudential limits, and exposure purposes.
Jaya Vaidhyanathan, CEO of BCT Digital, expressed her support for the RBI’s decision, affirming, “The move to increase risk weights for personal loans is a constructive step, aligning with the central bank’s concerns regarding aggressive lending in the unsecured consumer loans sector. While the overall financial impact of defaults in this category may not be considerable, the sheer volume of individuals drawn to effortless credit for non-essential purposes like electronic gadgets is substantial. This initiative will deter lenders who may have previously adopted lax practices in loan assessment, reminiscent of historical incidents in 2008 involving credit card and personal loan mismanagement.”
The latest sectoral credit growth data from the Reserve Bank of India (RBI) reveals that Indian banks are aggressively expanding their personal loan portfolio, with credit to the segment growing by 30.8%, compared to 19.4% on a year-on-year basis. Fintech firms have sanctioned almost âč30,000 crore for consumption loansâpersonal loans, consumer durable loans, vehicle loans between 2015 and 2022âcompared to less than âč5,000 crore disbursed for business loans during the same period, as reported by the RBI-backed Centre for Advanced Financial Research and Learning (CAFRAL).
There Is Currently No Imminent Effect on Interest Rates
There is no immediate anticipation of an impact on interest rates, according to Shibani Kurian, Senior Executive Vice-President & Head of Equity Research at Kotak Mutual Fund. While the augmented risk weights are likely to influence growth in specific segments, large banks and NBFCs are currently well-capitalized, surpassing regulatory requirements. Therefore, raising capital immediately may not be necessary due to the increased risk weights. Banks are expected to assess the impact and decide whether any cost increases need to be passed on to customers. Corporate trainer (Financial Markets) Joydeep Sen concurs, emphasizing that while there might not be an immediate effect on banks’ costs, they are likely to adopt a more cautious approach in the long run.
Naresh Malhotra, a former SBI executive and current Director at JCRC LLP, an accounting firm, emphasizes that NBFCs are more likely to bear the brunt of the impact, facing increased funding costs. As NBFCs borrow from banks to lend to customers, the rise in risk weights will elevate their borrowing costs from banks or through bond issuance. The final impact will be contingent on the resource mix and the proportion of unsecured consumer loans in an NBFC’s overall portfolio. Regarding commercial banks, Malhotra notes that although their unsecured loan portfolio has grown at a rate exceeding the general credit growth rate, their exposure to this segment is more effectively hedged than that of NBFCs. However, he acknowledges that higher capital outlay will also affect commercial banks.
The RBI’s decision to elevate risk weights on unsecured consumer credit, including personal loans, from 100 percent to 125 percent for both banks and NBFCs, has implications for the lending landscape. Additionally, the risk weights for credit card receivables have been revised from 125 percent to 150 percent for banks and from 100 percent to 125 percent for NBFCs.
Is the Era of Easily Accessible Credit Coming to an End?
The era of easily accessible credit might be coming to an end from the borrower’s standpoint. Ritesh Srivastava, Founder and CEO of FREED, a debt relief platform, notes a noticeable shift among lenders, who have become more cautious and stringent in approving new loan applications. The approval rates for new loans currently hover around 4 to 5 percent, a significant drop from the peak of the cycle when they ranged from 8 to 12 percent.
Malhotra emphasizes that the RBI is concerned about the rapid expansion of unsecured credit, prompting the central bank to raise the cost of lending for both banks and NBFCs. The intention is clearâto decelerate the pace of this growth. Kurian echoes this sentiment, pointing out that the heightened capital requirements will gradually ease the competitive fervor in the consumer credit sector, where banks, NBFCs, and fintechs in collaboration with regulated entities have been striving to attract more customers.
Sen provides an additional perspective, stating that in unsecured loans, banks can compensate for delinquencies due to the higher interest rates. However, the consequence of elevated rates is that those diligently repaying their credit card dues end up covering for those who do notâa concept known as “good money for bad money.” This underscores the need for more thorough due diligence, and the increased risk weights will contribute to achieving this.
This shift could be advantageous for individuals with a steady income and strong credit scores. On the flip side, those with irregular incomes and lower credit scores may encounter greater difficulty in securing loans. Adhil Shetty, CEO of BankBazaar.com, explains that for ideal borrowersâthose with stable income, a credit score above 750, and a history of timely paymentsâthere should be no impact on existing or new credit lines. Lenders are likely to favor such borrowers, while individuals outside these criteria may find it more challenging to secure loans, a trend that has historically held true.
Impact on Credit Cards
Industry experts we consulted do not foresee any immediate consequences, such as a reduction in credit card limits or higher interest rates, affecting credit cards.
Malhotra emphasizes that the larger source of risk lies in outstanding credit card balances that remain unpaid even after the due date, warranting more attention. Kurian provides additional insight into this matter. Despite the rapid growth in credit card spending, she notes that there has been no deterioration in delinquency. “Revolve rates” (indicating the amount of outstanding credit card balance that remains unpaid) are currently lower than pre-Covid levels. Consequently, banks face no immediate asset quality concerns, making an immediate reduction in credit card limits unlikely. However, in the future, financial institutions may shift their focus to customers with better credit profiles, potentially slowing down the previously rapid growth. Srivastava suggests that existing credit card customers who only make minimum payments may encounter tighter credit limits and possibly a downward revision in limits upon renewals.
On a positive note, Naveen Kukreja, Co-Founder and CEO of Paisabazaar, believes that for lenders with sufficient capital and effective risk management, credit cards and unsecured loans will remain highly profitable segments and continue to be focal points.
Fintech firms anticipate that the effects of the Reserve Bank of India’s directive will become evident within six to twelve months, compelling them to broaden and fortify their secured portfolio. Fintech companies that acquire funds from banks or non-banking financial companies (NBFCs) are swiftly working on expanding their secured portfolio to constitute a minimum of 40 percent of their overall portfolio.
Sayantan Mondal
