StartupTalky

Tag: 🔍Insights

  • Harley Davidson: Riding High, Falling Hard

    This is a name that needs no introduction. Harley-Davidson Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin in USA. It is one of the world’s largest motorcycle manufacturers and a brand with a loyal following. The iconic brand is famous for the chopper motorcycle style with manufacturing factories spread over York-Pennsylvania, Milwaukee-Wisconsin, Manaus-Brazil, Bawal-India, and Pluak Daeng-Thailand. Not only does the company market its products globally, but it also licenses and markets merchandise like apparel, home dĂ©cor, ornaments, accessories, toys, scale models of its motorcycles, and video games based on its motorcycle line under the Harley-Davidson brand.

    The Begining
    The Recent History
    The Fall
    Conclusion

    The Begining

    The first motor-bicycle was built by 20-year-old William S. Harley along with his friend Arthur Davidson by using the northside Milwaukee machine shop which was located at the home of their friend Henry Melk. The finished bike in 1903 did not have the power to climb hills without pedal assistance and the makers wrote off their first attempt as a learning curve.

    Their second attempt was successful with a bike that featured a bigger engine and loop-frame design as it marked their path to future designs of motorcycles. This prototype of the new loop-frame Harley-Davidson was functional by September 8, 1904. It, then, competed in a Milwaukee motorcycle race and was placed fourth.

    By January 1905, Harley-Davidson placed small advertisements in the Automobile and Cycle Trade Journal. These advertisements offered bare engines for do-it-yourself projects. The business did well and by April of the same year, the company was producing a limited stock of completed motorcycles.

    Within a year, by 1906, Harley and the Davidson brothers built their first single-storey, wooden structure factory on Chestnut Street and produced 50 motorcycles. Chestnut Street was later renamed Juneau Avenue, which also serves as the current location for the Harley-Davidson Corporate Headquarters.

    History of Harley Davidson Motorcycle

    By 1907, the company expanded its factory and increased its annual motorcycle production to 150 motorcycles. It was also the year that the company was officially incorporated. The company began selling its bikes to police departments as well.

    Over the next few years, Harley-Davidson continued making improvements to the engine and the bike design and by the year 1914, Harley-Davidson was pulling ahead of Indian-dominated motorcycle racing and also increased their bike production numbers to 16,284 machines.

    World War I proved to be a major sales push for the company as the military demanded motorcycles as the US entered WWI in 1917. It purchased more than 20,000 motorcycles from the company. To recruit more domestic customers for its motorcycles, the company launched a line of bicycles in the same year but discontinued it in 1923 due to disappointing sales. However, by the year 1920, Harley-Davidson had grown to be the largest motorcycle manufacturer in the world with dealers in 67 countries. They were producing a whopping 28,189 machines annually.

    A few years later, The Great Depression began which negatively impacted the company and its sales dropped from 21,000 machines in 1929 to 3703 machines in 1933. It emerged from the Great Depression scathed but alive and was only one of the two American motorcycle manufacturers that survived. It again rose to its former prominence as it reproduced a large number of machines for the US army during World War II. Harley-Davidson received two Army-Navy ‘E’ Awards, in 1943 and 1945 respectively, for ‘Excellence in Production’. It also resumed civilian production of large V-twin motorcycles that were successful on racetracks and with private buyers.

    The company evolved and by 1970, it become a lifestyle brand that sold jackets, vests, T-shirts, and various memorabilia to commemorate the Harley-Davidson lifestyle. By the 1980s, people were economically progressing after a long financial hiatus that led to soaring sales for the company.

    A Screenshot from the Harley Davidson Website
    A Screenshot from the Harley Davidson Website

    The Recent History

    The decade of the 1980s proved to be immensely profitable for the company. The group that consisted of Harley-Davidson motorcycle owners grew to 90,000 members and the company registered a profit of approximately USD 3 million in 1984. This number rose by another USD 1.5 million within a few short years. Harley Davidson continued on its growth trajectory right into the 21st century. By the year 2006, it reported a profit of approximately USD 1 billion as its core owners’ group reached middle age and the stock price of the company peaked. However, it was also the last successful year of the company.

    The Fall

    The iconic company that had survived and grown through two world wars and The Great Depression fell victim to the economic recession of 2007 and it struggled with sales and stock prices plummeting between 2007 and 2009. This abruptly stopped the company’s new efforts to market its product to a younger and new audience that included women and children.

    To survive this newest threat of the economic downturn, it reverted to producing bikes that its existing customer base wanted, resulting in loud, chopper styles and bulky motorbikes.

    Harley Davidson - Total Worldwide Retail Sales
    Harley Davidson – Total Worldwide Retail Sales

    What they failed to take into account was that their current core customer base was aging and the brand had missed its chance of evolving with the times. By 2008, the average age of a Harley-Davidson owner was 50 years and the younger generation did not identify with the company’s bike styles or ethos. This was in addition to the high price point of the motorbike which made it unaffordable for the younger generation that did not have such high disposable incomes. The third strike against the brand was that its image was associated with middle-aged men and father figures.

    Conclusion

    The iconic company that, at one time, was at its peak and the leading manufacturer of motorbikes across the world, has failed to recover post the 2007 recession. Although its sales are better, it has not been able to capture its pre-recession numbers. The main issue is that their bikes do not attract the millennials at all. Today, a company that has survived multiple ownership arrangements, subsidiary arrangements, intense global competition, and periods of economic health and product quality is struggling for survival. Only time will tell if the company will succeed in reversing its fortunes.

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    FAQs

    Harley-Davidson motorcycles are built to with sturdy construction and innovative engines. Many parts are also easily replaceable, allowing riders to keep their bikes in top shape without needing to replace the entire machine.

    What was the first Harley Davidson model ever produced?

    The first Harley-Davidson motorcycle was built in 1903 and was named the Harley-Davidson Model 1.

    Does Harley-Davidson sell lifestyle products?

    Yes, Harley-Davidson sells lifestyle products like jackets, vests, T-shirts, and various memorabilia like home décor, ornaments, accessories, toys, and video games based on its motorcycle line.

    Some of the most popular Harley-Davidson models include the Sportster, Dyna, and Softail.

  • Sephora’s Beauty Revolution

    The French brand, Sephora, is a multinational retailer that offers personal care and beauty products that include cosmetics, skincare, body, fragrance, nail color, beauty tools, body lotions, and hair care. The unique brand name, Sephora, is adopted from the Greek word ‘sephos’, meaning beauty, and the Greek spelling of Zipporah, the wife of Moses.

    The Beginning
    The Growth
    The Brand that Revolutionized Make-up Consumption
    Brand Inclusivity
    Conclusion

    The Beginning

    Founded in the year 1969 in Limoges, France, as a perfume shop, Sephora first launched in Paris a year later, in 1970. Dominique Mandonnaud acquired Sephora in 1993 and proceeded to merge his own chain of fragrances with the Sephora brand. It was he, who designed and implemented the unique ‘assisted self-service’ sales gimmick, a new approach in the then cosmetics market service-based retail approach. This model encouraged customers to test the products at the retail stores before actually purchasing them. Under his leadership, the brand expanded and opened its flagship store in 1997 at Champs Elysees. In the same year in July, Mandonnaud parted ways and sold Sephora to the LVMH (Moet Hennessy Louis Vuitton) Group.

    The Growth

    The LVMH Group expanded Sephora globally while simultaneously also broadening the brand’s product repertoire to include beauty and cosmetic products. It extended its Middle Eastern market presence in the year 2007, opening 44 stores in UAE and KSA. The brand operates more than 430 stores across North America. In the year 2017, it opened its largest retail store in New York City. A year later, in 2018, Sephora signed a long-term lease at Thor Equities’ Town Square Metepec, which is a retail and entertainment center in Mexico. December 2020 saw Sephora announcing its plans to launch Sephora inside 850 Kohl locations by the year 2023. In the year 2021, it agreed to purchase Feelunique.com for a rumored amount of 132 million pounds. Feelunique.com is an online retailer of luxury beauty goods and boasts 1.3 million active customers spread across 120 countries.  It features more than 800 brands selling more than 35,000 products.

    The Brand that Revolutionized Make-up Consumption

    With a presence in more than 35 countries, Sephora currently operates more than 2700 stores and is a 36,000-strong workforce brand, selling over 250 beauty brands.  Its rise to a prominent industry leader is due to its smart and strategically profitable business practices. A study of the brand’s business practices reveals that it can be categorized into three main approaches.

    Vast Choice of Beauty Products

    Being a part of the LVMH Group means that several cosmetics brands sold within Sephora stores are owned by the LVMH Group. Sephora also has its exclusive product line. The retailer giant’s popularity has made it a prime choice for high-end cosmetic brands, resulting in Sephora’s market leadership. A customer walking into a Sephora store can find a vast range of beauty products to choose from, making it the store of choice. This has also resulted in Sephora having a loyal customer base as well as influencer marketing videos sharing the products bought by them from Sephora.

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    Customer Retail Approach

    The traditional sales practice of the cosmetics industry was a brand sales representative behind the counter helping customers make purchases. Sephora disrupted this practice with its new and unique ‘assisted self-service’ encouraging customers to try the products which were openly displayed in the store. Beauty Advisors were present and ready to help if asked. Secondly, the product display within the store was category based rather than brand based, contrary to convention. This meant that all make-up items were grouped next to each other, whereas a skin-care product from the same brand would be stocked in the skin-care aisle. The cosmetics retailer giant-built trust amongst its customers with its brand-agnostic attitude.

    Loyalty Program

    In the year 2007, Sephora initiated a customer loyalty program named ‘The Beauty Insider’, to offer a sense of exclusivity to their customers. Two years later, in 2009, a second layer named ‘Very Important Beauty Insider’ (VIB) was added to the program and again in 2013 a third layer was added called ‘The Rouge Tier’.  This free loyalty program is only for their customers in USA and Canada. This three-tier program has a distinct set of incentives attached to each tier. It allows customers to earn points on every dollar they spent at Sephora. Also based on the membership tier, customers have access to exclusive events. This loyalty program is updated from time to time for relevancy and to offer better benefits to its customers.

    Of course, Sephora reaps benefits from the data it gathers from the loyalty program about its customers buying patterns and product preferences. This data is analyzed and used later for personal marketing.

    Sephora – Card Program

    Brand Inclusivity

    Sephora, as a brand, takes inclusivity seriously when referring to its customer base. With newer cosmetics brands coming to the market every day, Sephora has been conscious about filling its product shelf space with black-owned brands. The retailer has also been proactively asking its member brands to expand their product line and include products that suit customers from different racial backgrounds and ethnicities. Sephora also launched ‘Color IQ’, a technology that helps their customers to select cosmetic products that suit their skin tone most naturally.

    Sephora Color IQ
    Sephora Color IQ

    Conclusion

    Being a part of the large conglomerate, LVMH, allows Sephora the advantage of quickly jumping on trends within the cosmetics industry. A Sephora spokesperson articulated Sephora’s ideology aptly and said – “We want to be an unequivocal global leader in the Prestige Beauty space and a purpose-driven brand that is a transformative opportunity for everyone we touch.”

    FAQs

    What makes Sephora different from other brands?

    Sephora concentrates on higher-end products instead of selling drugstore products. The company also offers promotional prices for their loyal customers in the form of discounts and incentives.

    What are the levels of membership in Sephora?

    There are three levels of membership: Insider, VIB and Rouge. Achieving VIB or Rouge membership requires a minimum spend per year. All membership levels enjoy a variety of benefits made available by Sephora.

    Do they do your makeup for free at Sephora?

    If you visit a Sephora store in-person, you can take advantage of a free 15- to 20-minute makeover done by a beauty expert with no purchase required and no appointment necessary.

    Is it free to be a member of Sephora?

    It’s a free loyalty program for customers in the US and Canada that allows customers to earn points on every purchase.

  • JhaJi Store – The Success Story of Pickles

    Located in the north of the Indian state of Bihar is the historic city of Darbhanga. Also known as the ‘cultural capital of the state’ and the ‘Heart of Mithilanchal’, it is a part of the richly fertile Indo-Gangetic Plains. According to history, it was the capital of the Mithila region and the seat of the Darbhanga Raj. Its rich culture boasts centuries-old traditions of literary arts, folk art, and musical form.

    Darbhanga is also a well-known tourist destination with palaces, ponds, temples, and wildlife. The city of Darbhanga is closely associated with the two great Indian mythologies – Ramayana and The Mahabharata. It is a deeply embedded belief that the Pandavas resided in this region during their exile. Mithila is also the known birthplace of Sita, the consort of King Rama.

    It is from this place of history, tradition, and beauty that hails the dynamic duo – Kalpana Jha and Uma Jha, the co-founders of JhaJi Store.

    Founders Of The JhaJi Store
    The Beginning Of JhaJi
    JhaJi Inside Shark Tank India
    JhaJi Store – How Do They Do It?
    Conclusion

    Founders Of The JhaJi Store

    Sisters-in-law Kalpana Jha and Uma Jha, both have their family roots in Darbhanga having lived and schooled there and later even married there. Kalpana Jha’s husband has been in the service of the Indian Government which meant they were moving cities every two to three years. The family finally came back and settled in Darbhanga post his retirement. Kalpana Jha has earned an MA in Psychology and has been a homemaker all her life. However, she always dreamt of doing something of her own. With constant encouragement from her family and initial financial support from her husband, she decided to convert her passion for making pickles into a commercial activity.

    Kalpana Jha and Uma Jha - Founders, JhaJi Store
    Kalpana Jha and Uma Jha – Founders, JhaJi Store

    Uma Jha shares her passion for cooking and developing recipes with her sister-in-law. Hailing from a family of Civil Servants, Uma has also experienced a life of constant transfers. Wanting to study LLB, her education was left incomplete due to her early marriage and children. Her husband pursued his career as a college professor in Darbhanga. Undeterred, she took up teaching in the same private school that her children attended and continued teaching children between the third and sixth standard for nineteen years. Her chosen subject was Hindi Literature and Hindi Language. When Kalpana shared her business vision with her, Uma willingly joined hands with her and so began their journey together.

    The Beginning Of JhaJi

    Named after Kalpana Jha’s husband, whom she lovingly refers to as JhaJi, this is a business that pays homage to the deep-routed Bihari tradition of pickle making. Conceptualized during the trying period of the Covid-19 pandemic in the year 2020, the two co-founders began the arduous journey of procuring the necessary food licenses and conducting the all-important shelf life testing through an accredited laboratory. This process lasted for about 6 months as the nearest testing laboratory was located in Kolkata. Then began the small-scale operation of them procuring the raw material from their home garden and making the pickles in their own kitchens.

    Setting up primarily as an online business, and launching it in June 2021, their initial marketing efforts were concentrated within Bihar and the Delhi area through advertisements on social media sites like Facebook and Instagram. The first-ever jar of mango pickle was sold to her neighbors. From then on, orders came in from the neighboring city of Sitamarhi, followed by Delhi. Quickly, JhaJi Stores built a customer base of 10,000 people within Delhi. It was Kalpana Jha’s dream to expand JhaJi Stores to a national presence, that, then, led them to Shark Tank India in 2021.

    JhaJi Inside Shark Tank India

    Two months, growing popularity and a happy customer base led the ambitious duo to apply to Shark Tank India. They were first called for Delhi auditions in August 2021 and clearing that, were invited to Mumbai in October 2021 to present their business to the Shark Tank judges. Although unsuccessful at securing funding from the judges, they came away with invaluable insights and feedback from them.

    JhaJi Store in Shark Tank India

    Also, their appearance on Shark Tank in 2021 gave them a publicity push as more people became aware of their business and the products. They returned home to an influx of orders that kept growing. In a bid to fulfill the rising demand the duo, then, applied for and received a bank loan. The business grew consistently as orders multiplied. Kalpana and Uma hired more staff from the village, primarily women who had worked as household help and had lost their jobs during the pandemic.

    In July 2022, the sisters-in-law received a surprise visit from two Shark Tank judges, Namita Thapar, and Vineeta Singh, resulting from the public support that they received through the show. Impressed with their ongoing efforts to grow the business, the judges invested in JhaJi Store. With the additional funding that they received, Kalpana and Uma have now built a larger factory that has been inaugurated very recently.

    Namita Thapar & Vineeta Singh invested in JhaJi Store
    Namita Thapar & Vineeta Singh invested in JhaJi Store

    JhaJi Store – How Do They Do It?

    The journey to building a business operation began in earnest with the sale of that first jar of pickle. Every concern was dealt with meticulously.

    Packaging

    Both women were sure that pickle packing would be in glass bottles. However, the biggest concern at that point was the unavailability of packaging materials like bubble wrap, cartons, and glass bottles in Darbhanga or the surrounding areas. Slowly and surely, they contacted various manufacturers in Delhi and began ordering larger quantities of these materials. Over time, they have built a system that operates on storing of advance inventory required for one quarter.

    JhaJi - Packaging in glass jars
    JhaJi – Packaging in glass jars

    Delivery

    This was a bigger challenge for them as they realized that there were a few issues that needed careful handling. First was breakage and leakage. Packaging in glass bottles initially led to quite a few breakages as well as leaking problems. Over time, through trial and error, they developed a packing process that has significantly reduced both and they are now working to eliminate the problem in its entirety. The second issue was the delivery timeline. Couriering the orders from Darbhanga took anywhere between 10 to 12 working days to reach their destination leading to a few complaints. The resourceful duo dealt with this issue by opening warehouses in Patna and Delhi. Their products reach the warehouses by trucks and are stored there before being shipped to their respective destinations. This has reduced their delivery time to 3-5 working days.

    Staff Hiring

    It was Kalpana Jha’s wish to provide work to the women of the village who had lost their jobs as household help during the pandemic. These women were not educated and came from impoverished backgrounds. However, their centuries-old traditions ensured that they were skilled in the art of pickle making. Hence their joining the workforce of JhaJi Store served a dual purpose. Slowly as the business grew, so did the workforce. What began as a business with only 6 staff members, currently hires a permanent staff of 50-55 employees and a daily-wage staff of 30-35 women. The business also hires 30% male staff that help in all the heavy work as well as delivery.

    JhaJi Store - Staff
    JhaJi Store – Staff

    Quality Control, Cleanliness & Hygiene

    Every process at every stage of pickle making is currently done manually keeping to the highest levels of hygiene and cleanliness. Even the fruits and vegetables are hand-selected ensuring that strict quality standards are maintained.

    JhaJi Store - Quality Control, Cleanliness & Hygiene
    JhaJi Store – Quality Control, Cleanliness & Hygiene

    Raw-Material Procurement

    Most of the raw materials are sourced locally from wholesalers and farm owners.

    Conclusion

    In just a couple of years, JhaJi Store has expanded its pickle repertoire to 15 flavors and they even fulfill special requests from their customers. In their first year of operations, they reached a turnover of INR 1.5 crore and aim to reach INR 3 crore by this year’s end. It is their five-year aim to reach a total turnover of up to INR 12 crores. With their new factory, the duo is aiming at increasing their staff strength to a total of 150 employees and also installing machinery in the future. With increasing infrastructure like roads, electricity, and water within the state, Kalpana and Uma are looking forward to a bright future. Here’s wishing the enterprising duo the very best from the StartupTalky Team.

    FAQs

    Do you use any preservatives to make these pickles?

    There are no preservatives, additives, or colors in the pickles. They source the ingredients, including fruits, vegetables, and spices from local farmers near Darbhanga, in Bihar.

    What is the shelf life for these pickles?

    The shelf life of these pickles is 14 Months. All pickles have been tested for shelf life by a NABL, FSSAI-accredited lab in Gurgaon.

    What type of oil do you use to make these pickles?

    The pickles are made using Mustard Oil, in the traditional Bihari way.

    How much is the delivery time?

    They take 3-7 days to make a delivery of a product.

  • Lego: The Rise & Shine of Bricks

    Multicolored interlocking plastic bricks along with an array of gears and small figurines that can be assembled and connected in various ways to create and construct vehicles, buildings, working robots, and many other objects bring back childhood memories of playing with Legos. The brilliance of these pieces lies in their ability to be taken apart and re-used to build and construct new things. The brand, Lego, which is the world’s leading toy manufacturer today, derived its name from the Danish phrase ‘leg godt’ that means ‘play well’.

    Commonly known as Lego bricks, the creative toys are currently sold in 130 countries. The brand recorded sales worth USD 3.6 billion in the first half of 2021 which was up by 46% YOY. It also owns 10 theme parks, a movie franchise, and above 600 stores globally. It has increased its product line to include DUPLO (which are larger bricks for younger children who are unable to handle smaller bricks) and a range of yellow Minifigures appearing in the company’s themed play sets. The company, which has marked 90 years in existence has been through a winding road of challenges and obstacles to reach the success pinnacle that makes it an unrivaled global toy empire today.

    Lego – The Beginning
    The Growth
    Brand Inclusivity
    The Economy of Lego
    Conclusion

    Lego – The Beginning

    The year was 1932 and the world was going through tough economic crises.  Ole Kirk Kristiansen, a carpenter in a small Denmark town, Billund, reapplied his skills to make wooden toys like cars, airplanes, etc. He named his company ‘Lego’ to reflect the quality of his products.  In the year 1936, Kristiansen created a motto for his company, which when translated from Danish means “only the best is good enough”. A few years later, he was facing difficulty in sourcing wooden materials to make toys and turned his attention to the possibility of using plastic to continue manufacturing.

    Wooden Lego
    Wooden Lego

    By 1947, Kristiansen expanded his manufacturing capacity to produce plastic toys and within the next two years, Lego began making their new interlocking bricks and called them ‘Automatic Binding Bricks’ – the early version of the now familiar interlocking tiles. Within the next four years, by 1951, almost half of the Lego-produced toys were made from plastic. Over the years, plastic toys from Lego have overcome the common anti-plastic sentiment, especially in children’s toys. This is mainly due to the high-quality standards set by its founder.

    The Growth

    It was Godtfred, Kristiansen’s son, who saw the immense potential in the Lego bricks to become a system for creative play through his conversation with an overseas buyer. Rising the company’s ladder to become the junior managing director in 1954, he set about correcting a few technical issues that existed with the bricks, like versatility and their limited locking ability. By 1958, the modern brick design was finalized and the company filed a patent application for it in Denmark on 28th January 1958. Godtfred said – “We wanted to create a toy that prepares the child for life, appealing to their imagination and developing the creative urge and joy of creation that is the driving force in every human being.” In the next few years, Lego also filed design patents in various other countries.

    The DUPLO product line focuses on a range of simple blocks that are double in length, width, height, and depth and was introduced in the year 1969 for younger children. Almost a decade later, in 1978, Lego introduced the Minifigures which have become a staple in most of their play sets.

    Minifigures - Lego
    Minifigures – Lego

    Two decades later, in 1998, Lego introduced a product line of bricks that was embedded with microchips to create programmable robotic packs.  In the same year, the company was inducted into the US National Toy Hall of Fame.  A couple of years later, Lego was named the toy of the century by the British Association of Toy Retailers.

    Lego was crowned as the ‘world’s most powerful brand’ in February 2015 by the marketing consulting company, Brand Finance.

    Brand Inclusivity

    Over the years, the brand has spent heavily to remain relevant in an ever-evolving consumer market. Currently leading Lego is the grandchild of the founder, Kjeld Kirk Kristiansen. The toy company is producing bricks that are, even now, compatible with those that were produced in 1958. Lego has made significant announcements in 2021 that reflect the company’s deep understanding of a changing society.

    Lego’s first announcement was that the company planned to remove gender bias from its products to curtail the harmful effects of stereotypes on the ambition of children. The second announcement was made in March of 2021 as it unveiled ‘Everyone is Awesome’ – the set that explicitly celebrated the LGBTQ+ community.

    LEGO – Everyone is Awesome

    The Economy of Lego

    Lego’s journey to greatness has not been without its obstacles and challenges. But the brand has emerged from its battles ‘the Lego way’.

    After filing the first design patent in 1958, the company sailed smoothly for three decades on the founder’s original ideas with no research into emerging trends or new markets. Troubles began when their patents expired in 1988. Apart from dealing with Lego-inspired copies cropping up in the market, the company was also faced with a newer version of child entertainment – video games.

    By the late nineties, Lego was struggling for survival. To renew interest in their brick-building sets and keep the brand alive, the company spent enormously to develop television shows, beginning with Jack Stone, a versatile character appearing in various avatars who builds machines to catch criminals. The show was a complete failure along with another one titled Galidor: Defenders of the Outer Dimension. At this time, the only product brand that was keeping the company afloat was ‘Bionicle’.

    Jack Stone - Lego
    A Complete Failure – Jack Stone Lego

    Lego saw a small success when they sold their first group of Star Wars-themed sets around the release of the movie. However, the next year these sets did not sell as there was no Star Wars movie releasing and Lego had to absorb substantial losses. They repeated the same mistake with the Harry Potter sets and almost filed for bankruptcy. By the year 2003, Lego had built a debt of USD 800 million and recorded a 30% revenue decline.

    Bionicle and Star War Lego
    Bionicle and Star War Lego

    In a last-ditch effort to save the company, the board changed the management structure and a new CEO was brought in. This proved to be the correct move as he proceeded to make immediate and necessary changes by shutting down most of the unprofitable ventures for Lego. The company began diversifying by finding many production partners creating a channel of reliable income. Lego started creating and telling stories of the brands they partnered with. They began making their own stories and shows and their 2011 show Lego Ninjago proved to be hugely successful. This was followed by another successful show in 2013 – Legends of Chima.

    Lego Ninjago

    The Lego Movie which was released in 2014 recorded box office collections of USD 468 million. Riding on this success, the CEO Jorgen Vig Knudstorp said – “This has been the best year ever for the Lego Group. If I could sing and dance, I should be singing and dancing because it is a fantastic number of results.” The success of this movie resulted in a sequel and two spin-offs titled The Lego Movie 2: The Second Part, The Lego Batman Movie, and The Lego Ninjago Movie.

    The Lego Movie
    The Lego Movie

    Conclusion

    With the severity of the downturns that Lego endured, it is truly a miracle that the brand has managed to not only turn around but rise to its former glory again. Their business economics is focused on telling stories that people love. These, in turn, are fueling their sales. The 90-year-old brand has traveled a road with a few twists, turns, and bumps and has emerged stronger leading the global toy market with aplomb and glory.

    FAQs

    What is a Lego toy?

    Lego bricks are colorful plastic building blocks that can be joined together easily to make a tower, house, and more. It is the most popular building toy in the world.

    What is the average cost of Lego?

    This value can be calculated by dividing the total set price by the number of bricks.

    What is the target audience of Lego?

    The main target market for the Lego Company is children between the ages of 1-15 years.

    Is Lego suitable for all ages?

    Yes, Lego is suitable for all ages. They offer Lego sets for children and adults in all age groups.

  • Revenue Generation Model of Television Channels

    The Indian Television Industry produces thousands of programs in many Indian languages with the Hindi, Tamil and Telugu factions of the industry being the largest.  In 2021, the Indian Television Industry was worth INR 720 billion and is estimated to reach INR 826 billion by 2024.

    Emergence & Expansion of the Television Industry

    Television emerged on the Indian market in 1959 as an experiment which offered two-hour programs for a week.  It soon garnered popularity and by the 1970s television centres were opened in other parts of the country.  The year 1976 saw Doordarshan emerging as a separate government department and in 1982 it telecasted the 9th Asian Games. The 1990s saw the television industry expand with the emergence of private television channels.  It began after CNN broadcasted the Gulf War.  STAR (Satellite Television Asian Region), which was based in Hongkong entered into an agreement with an Indian company giving birth of  Zee TV. Several other channels came into existence during this time including regional channels and international channels like CNN, BBC and Discovery offering different categories of entertainment to a wide variety of audience.  This expansion also gave rise to DTH (Direct To Home) cable operators. By the year 2016, Indian Television boasted of 857 channels of which 184 were paid channels.

    Television has become an integral part of people’s daily lives.  The popularity of the medium is due to its capability to cater to the needs of its audiences through various shows of different genres telecasted through various channels.

    Revenue Generation Model

    As with any commercial enterprise, television industry operates with the basic idea of generating revenue and posting profits.  The various channels generate revenue from three basic streams – Advertisements, Subscription Services, Sponsorships & Product Placements, Licensing owned Content and Re-transmission Fees.

    1. Advertisements

    Television channels sell airtime and slots to advertisers who wish to showcase their products or services during commercial breaks.  The slot and airtime rates depend on the time and on the popularity of the show as well as the time-length of the advertisement itself. Advertisements broadcasted during prime time cost more than those which are broadcasted at low viewership slots, like mornings or early evenings.  Even the TRP (Television Rating Points) ratings of the show affect the airtime rates.

    2. Subscription Services

    This is a two-pronged process.  Some television channels are made available to subscribers, by DTH operators, on payment, which could be monthly or annually.  A part of this subscription fees goes to the channel itself.  This model of revenue generation is largely volume based.

    3. Sponsorships & Product Placements

    Television channels are a high interest sponsorship venue due to their wide and deep audience penetration.  They receive funding from sponsors for programming.  A high revenue is also generated from specific advertiser product placement within their shows.

    4. Licensing Owned Content

    Television Channels also produce and distribute content like programs or movies and generate revenue by licensing or outright selling the rights to other networks or streaming devices.

    5. Re-transmission Fees

    Television channels charge fees from cable distributors and satellite operators to allow them the right to retransmit their local signals.  This can happen for a program that sees high demand.

    Specific coverage of live events like sports, concerts or award shows are also a high revenue generating stream for television channels.  Such events attract large audiences which, in turn, translate into higher advertisement rates.  Another minor, however, effective revenue generation source is the internet. Television channels stream their program episodes via YouTube and generate income on the number of times the program is viewed.  This also works as an advertisement for the program and the channel and can increase their audience reach.

    Trends in the Television Industry

    The delivery of television programs to the audience has undergone a huge change, especially in the recent years. What was delivered through relied antennas has switched to dishes, distribution through cable networks and direct broadcast satellites.  Through the use of Internet Protocol Television, programs are available to watch on mobile phones.

    Conclusion

    The television industry is fiercely competitive and its revenue generation is heavily dependent on capturing the viewers attention and sustaining it.  Effectively, it is that attention that the channels sell to the advertisers.  While the TV channel landscape continues to evolve with the rise of digital media and streaming services, the fundamental principles of generating revenue through high-quality content and effective advertising remain constant.

    💡
    The revenue of TV channels in India primarily comes from advertising, which contributes around 70-80% of their total revenue.

    • As per industry estimates, the Indian TV advertising market was valued at approximately 35,000 crore INR (~$4.7 billion) in 2021.
    • The television revenue is expected to grow at a CAGR of 4-5% and reach Rs 826 billion by 2024, according to EY FICCI M&E 2022 report.
    • The report says, the ad revenue of TV is expected to become Rs 394 billion in 2024.
    • Revenue from subscriptions for TV channels is expected to reach Rs 415 billion in 2023.

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    FAQs

    How do free TV channels make money?

    Free Tv channels earn revenue by displaying ads between the shows.

    How much does it cost to start a TV channel?

    To start a non news channel the net worth of the company should be around 5 crores.

    What is the benefit of high TRP?

    If a channel has high TRP they can charge a higher amount from advertisers.

    What is the revenue model for TV Channels?

    The two key methods of revenue for TV Channels are:

    • Subscriber fee
    • Advertising

    How many TV channels are there in India?

    There are 850 TV channels in India.

    What is full form of TRP?

    TRP stands for Television Rating Point.

    Who calculates the TRP for Television Channels?

    TRP is calculated by Broadcast Audience Research Council using “BAR-O-meters”.

  • The Battle for Truth: Adani vs Hindenburg Research Allegations

    A company that began as a commodities trading business in the year 1988, and reached a total valuation of INR 24 Trillion (USD 280 billion) in November 2022, is the Gautam Adani-led Adani Group.

    Founded as Adani Enterprises, its flagship company, the Adani Group has grown and is engaged in diverse businesses that include port management, electric power generation and transmission, renewable energy, mining, airport operations, defense and aerospace, rail and metro infrastructure, real estate, natural gas, food processing, financial services, and cement.  It is headquartered in Ahmedabad, Gujarat.

    The flagship company Adani Enterprises is now a holding company that, by itself, primarily engages in the mining and trading of coal and iron ore.  It has three main subsidiaries namely Adani Wilmar, which is engaged in food processing, Adani Airport Holdings, engaged in airport operations and Adani Road Transport, engaged in road development. Adani Enterprises also acts as an incubator for the group’s new business ventures.

    Steep Stock Fall – The Hindenburg Research Report
    Adani Group Response
    Hindenburg Research’s Response
    About Hindenburg Research

    Steep Stock Fall – The Hindenburg Research Report

    Hindenburg Research's report
    Hindenburg Research’s report

    On January 24, 2023, an investor research and activist short-seller firm based in the US, Hindenburg Research released a report that claimed that the Adani Group had allegedly engaged in market manipulation and accounting malpractices, over a few decades.  

    They claimed to have found evidence in a two-year investigation that the group had taken a substantial amount of debt that included pledging shares of their inflated stock for loans.  Hindenburg Research claimed that this debt had risked the financial solidarity of the entire group.

    This report by Hindenburg caused panic among domestic investors and led to a sharp fall in the Adani Group listed companies.  Group companies like Adani Total Gas, Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Ports, Adani Power, and Adani Wilmar witnessed a drastic and sudden fall that caused a cumulative market capital loss of INR 1 lakh crore.

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    Adani Group Response

    A Tweet shared by Adani Group as a first response to the allegations
    A Tweet shared by Adani Group as a first response to the allegations

    Calling the report baseless and rubbish, the Adani Group questioned the timing of the report that was released only a few days before the Adani Enterprises FPO (Follow-on Public Offering).  

    It released a 413-page long refutation statement, calling the Hindenburg report ‘A calculated attack on India, independence, integrity and quality of Indian institutions and growth story and ambition of India.’  

    In a statement, Jugeshinder Singh, CFO, of Adani Group said – “We are shocked that Hindenburg Research published a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix.”

    The report is a malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts.

    The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India.

    Our informed and knowledgeable investors are not influenced by one-sided,  motivated and unsubstantiated reports with vested interests, as clarified by Adani Group.

    Market analysts have also questioned the timing of this report stating that many facts that are mentioned within these reports are already in the public domain and are unproven.  Singh had also recently proclaimed that five subsidiaries of the Adani Group will make their market debuts through IPOs (Initial Public Offerings) between 2026 and 2028.

    The group also said in its Sunday rebuttal that 65 questions of the 88 raised by Hindenburg Research have been addressed by the company’s public disclosures. Jatin Jalundhwala, Head of Legal – Adani Group said – “We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.”

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    Hindenburg Research’s Response

    Hindenburg Research's response
    Hindenburg Research’s response

    On Monday, January 30, 2023, Hindenburg Research released its response titled – ‘Fraud cannot be obfuscated by the nationalism of a bloated response that ignores every key allegation we raised.’  

    In a tweet that details its response to the Adani Group, it has reiterated that the group has not answered any questions raised by them.  Hindenburg has also claimed that any lawsuits filed against them will be ‘meritless’.

    About Hindenburg Research

    Founded in 2017 by Nathan Anderson, Hindenburg Research LLC., is based in New York City.  The company’s prime focus is on activist short-selling defending the practice as playing a key role in exposing fraud and protecting investors.

    The company investigates and prepares a report on its target company in a period of six months or more by accessing its public records, internal corporate documents, and employee interviews.

    These reports are then circulated to the company’s limited partners who together with Hindenburg Research take a short position in the target company.  In the event of the target company’s share decline, Hindenburg Research takes the profits.

    Apart from the ongoing Adani Group feud, other companies like Nikola, Clover Health, Kandi, and Lordstown Motors have been subjected to such short-selling practices of Hindenburg Research LLC.

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    Conclusion

    As the story continues to unfold, the stock market continues to react to news updates from both sides.  It remains to be seen how the parties involved will proceed ahead.  The domestic share market will continue to ebb and flow in response to the actions from both sides.

    FAQs

    Which is the biggest company of Adani?

    The biggest company of Adani is Adani Enterprises Limited.

    What is the reason for the fall of Adani shares?

    Recently, a US-based short seller alleged the Adani group of stock manipulation and an accounting fraud scheme that resulted in the fall of Adani shares.

    Is SEBI investigating Adani?

    Yes, with the recent allegations and the fall in Adani shares, SEBI [Securities and Exchange Board of India] is investigating Adani shares closely.

  • Dropshipping – A New and Viral Business Model

    Starting a business is a very famous idea for earning money. You can meet a salaried person and he/she will tell you about his/her dream of starting a business and earning with no cap. There is no denial to the fact that money is a necessary requirement and everyone works to earn some money, some do a job and others are self-employed. However, in the real world, a business is a very popular way of earning among people. The reason could be watching multi-millionaires online and noticing that they all are businessmen. Also, a job is a fixed and tied-up income stream which makes the business the most lucrative income-generating activity out there.

    Having said that business is popular, it is also to be mentioned that starting a business and sustaining it is not easy. It requires capital, skills and many more qualities. Thus, it is not anyone’s cup of tea. However, there are some people who try to hack systems to create businesses that do not even require them to get off the couch. This sounds imaginary, right? But it is true. The business that we are talking about is Dropshipping. This is a very modern and famous form of business that has grown so much in the past years. One of the reasons for the scope is TikTok trends but this form is really easy and doable business. This article talks about how this new form of business has covered the whole world.

    What Is Dropshipping?
    Dropshipping Business Model
    Why Is Dropshipping So Famous and Viral?
    Side Effects of Dropshipping
    Shopify
    Gymshark: A Case Study

    What Is Dropshipping?

    Dropshipping is nothing but another form of retail business. In a dropshipping business, the seller looks out for customer orders and accepts them as he/she has the stock but does not keep goods sold in stock. Dropshippers take direct orders from customers and then they contact sellers of that product and ask them to ship directly to the customer. Acting as an intermediary, they earn the difference that lies in between the transaction.

    Dropshippers can be seen as an intermediary. The social media advertisements of products that you see on Facebook, TikTok, and Instagram are most of these sorts. These ads are run to get the attention of the potential customers who will place the orders. They take advantage of the mindlessness with which people scroll their smartphones and click anywhere and buy mindlessly. Some sellers even make millions of dollars from overseas dropshipping without touching the goods. While others use it as a  scheme of gambling scams that hurt legitimate businesses and humble customers.

    Dropshipping Business Model

    At the inception is a drop shipper who thinks to sell something online to someone without owning that product. He searches the web all over to find products that might be huge in demand and products which people will pay money for. After they figure out a product to sell, then it is time to set up a store just for that product. There are many services available online that can be used to set up online stores for free or with minimal payment. One of them is Shopify, and we will discuss the company a little later. Once a store is set up for a product, it is time to get to the most important part of the business. The most important part of the business, also known as the customers, but how to reach the customers?

    Global Dropshipping Market from 2022 to 2024

    In this technological world where people are more online than they are offline, gives a pretty good reason to reach people online and not offline. Not only are online methods very messy and can reach millions of people but they are cheap too. At this step, when a product is chosen and a shop is set for selling the product, the dropshipper now has to reach online customers who might be interested in the product. This is when advertising the product gets into the picture. This is the time when the dropshipper looks out for good advertising platforms. Most of the dropshippers look up to Instagram as they go to places for their advertisements. Others might also choose other social mediums like Facebook, or YouTube depending on their target audience and the sort of product that they are trying to sell.

    Let us take the example of Instagram. Let’s say a dropshipper chooses IG as their advertisement place and they set up advertisements on social media. The target is to run ads hoping that some person will look out for your product and buy it. Most of the time, these advertisements promotional giveaways are targeted to some specific sorts of people, as we can display and list our preferences according to our product. The hook or the trick here is to make the advertisement as catchy as possible. It can be hard for a person to stop scrolling and look at a specific post (Ad) and click on that and make an impulsive purchase. Thus, the dropshipper has to pay extra attention to this detail and has to set up some really smart hooks for the customers to get. The customer can come through two routes, one is to buy thoughtfully and another route is to buy the product impulsively.

    Once a customer has clicked your link, or ad, and is taken to the online shop page of your product. That online shop that you created should work efficiently with the payment system. It should involve all the famous payment methods because the customer will be needing a speedy cash-out option when buying something online. Plus, the store should be believable so that the customer who is about to buy that product believes that it is authentic. Once they make the payment, you go and order that product from a big wholesaler who will give you a good discount on the deal just enter the address of the customer who purchased it from you. It is noted that most retailers are from China as it is the manufacturing hub of the world, and examples include Alibaba’s online enterprises.

    Why Is Dropshipping So Famous and Viral?

    Dropshipping is one of the most viral business models and has amassed a lot of views and beliefs from audiences of all sorts. Especially on the short video platform, TikTok. People on TikTok use the social media platform to promote a product and then sell it online using an online shop.

    Global Dropshipping Market by Product

    One reason is that we all are always online, which lead to the success of huge social media apps like TikTok and Instagram. This reason, that the internet gets a lot of screen time, makes dropshipping a viable business option. One can operate very easily with this sort of business model. Dropshippers just need a computer with a stable working internet connection and can even work from home everywhere.

    Another reason includes the easy set-up of an online business. It has become increasingly easy for a person to set up an online store and list an item or product to sell it. Interestingly, people can ship their products anywhere in the world now, due to advancements in tech and transport sectors.

    Side Effects of Dropshipping

    Not every online store and product is not true to its customers. There are many cases of counterfeits and fake products being peddled in the market. They must be believable and true to the nature of the products. There are also a lot of fake and counterfeit sellers online that pose to be true but they are fake. Due to the high popularity of this model of business, people often fall prey to such mischief.  

    “What happens is then a whole cascade of different events where you buy fake reviews to distinguish yourself. You buy fake ratings, fake upvotes, a lot of ads, marketing, but all that adds up,” said Saoud Khalifah, founder of consumer protection software company Fakespot.

    Fakespot has a Chrome plug-in that alerts shoppers if a seller on Amazon, Walmart, Ebay, Best Buy or Sephora can’t be trusted. It recently added capabilities to detect untrustworthy stores on Shopify. “They made this a one-stop-shop for you to set up a store, and it’s just super easy for you to start selling online and a lot of these dropshippers know it,” Khalifah said.

    This is a drawback of this model being super famous, there are people all over who try and convince you that online shopping is not authentic. In an analysis of more than 124,000 Shopify stores, the analysis agency, Fakespot found out that about 25,000 shops set up online are involved in counterfeit activity, data leaks and fake reviews mafia. Out of those twenty five thousand online shops and stores, almost about 72% showed traces of bad dropshipping tactics.

    Shopify

    Shopify is an online store creator which helps people to set up online stores for little or no fee. It is easy to sign up and set up an online store for a product. It has all the features enabled for a store, including payments, cart and delivery services. There is also fraud detection and consumer protection in the platform. On Shopify’s Help Center, there’s an entire section devoted to tips and strategies for dropshipping. This helps in regulating the online storage space.

    The company makes money by charging transaction fees on sales made through its platform and offering paid add-ons and services such as custom themes, advanced shipping and payment options. Shopify earns revenue from its app store, where third-party developers can sell their tools and services to Shopify merchants. The platform caters to businesses of all sizes, from small, independent retailers to large enterprises.

    Gymshark: A Case Study

    Gymshark, which is a company dealing in the business of gym wear and athletic apparel, has a great influence. The company initially used influencers to promote their products and it used its power of audience to market its product. The effect of which was that the brand was able to generate a cult-like following all over the place. Be it the internet and offline spaces, the company was successful in creating a stir in the public.

    The story does not end here, in fact, it is the beginning of dropshippers in context. The huge success that gym shark created for itself was also apparently used by dropshipping people all over the states. Yes, dropshippers actually started making that cash and capitalised on the company’s success. Gymshark CCO Niran Chana said he’s seeing more and more copycat drop shippers selling knock-offs.

    “Someone else is acting as the brand at that point. And we put a lot of investment into assets, content, etc. So for someone to come and almost copy that is frustrating,” Chana said.

    “Where we could really do with their help and support is actually when people are abusing those brand rights and running away with a business model that is unsustainable for both themselves and/or Gymshark if they regulate that better. They have the right to be able to say we’re going to pull this site down or you guys are trading sort of uncompetitively,” Chana said.

    Gymshark, for now, is working on building a legal team. The legal team will be at the front of safety and security to protect intellectual property, but Chana also called on Shopify to help.

    This above example of Gym shark proves the fact that dropshipping can take the shape of something really ugly. People can try to tarnish the brand image of a company just by setting up individual shops which operate in an independent form. This is one of the many examples which shed light on the credibility of online shopping of any sort, it has to be hugely regulated nonetheless.

    Conclusion

    Dropshipping is a very famous model of business. It is not a surprising fact, as for a businessman it is easy to just order something that he does not own, and delivering it to the customer is rather easy. Another reason for the business to be a famous model of business is that the product can be marketed easily. It is easy to market products with platforms like TikTok and Instagram. You just have to create a trend or just stick to a trend and market the product that you are selling.

    Stores like Shopify make it really easy to set up online stores for every product and it also comes with all the features of a full-fledged online store. From the payments interface, and cart features to the proper listing of products, everything is listed here and plain. The fact that this business model is easy to carry out, makes it prone to viruses. There are people of all sorts out there who are trying to sell counterfeit products online. They can sell fake products, they can come up with some really mischief tricks to trick customers online. There are however regulations and strict rules that try to minimise fake selling, and the number of originals is expected to go up. On the contrary, the business model has supported many people financially. No one can point out the general profitability but if you stick to a trend and create good marketing, the product will sell, even overseas.

    FAQ

    Is TikTok good for dropshipping?

    TikTok live is a great dropshipping tool for all independent content creators, businesses, and brands, TikTok is a great platform to promote their work, products, personalities, and ideas in creative and entertaining ways to a global audience.

    Is drop shipping still a good business model?

    Yes. If you choose the right niche, implement a proper marketing strategy and constantly improve your customer support, dropshipping will be the most profitable business model to run.

    Which social media is best for drop shipping?

    Instagram is a top-rated social media platform for dropshipping businesses, primarily because it’s so visual. So it’s a great idea to use a few product photos and then mix these up with videos and images that complement what you’re selling.

    What is the weakness of drop shipping?

    Dropshipping isn’t simple. It has challenges like suppliers, order processing, returns, customer support, website maintenance, attracting online traffic, and tracking inventory changes and shipping prices with manufacturers, all requiring time.

  • Advantages of Hiring Remote International Talent

    The article is contributed by Christopher McNamara, Chief Revenue Officer at Remote.

    From saving costs to gaining a wider talent pool, here are the many advantages of hiring remote international talent

    Hiring remote international talent can be a great way to access a global pool of skilled workers and expand your business. Whether you’re a small business owner in need of some basic IT assistance, or a bigger entrepreneur who needs employees like software developers, the solution is crystal clear: it’s time to go global.

    What Is Remote Talent And Recruitment?

    Internationteleal remote talent refers to employees and contractors who are located outside of the country where the company they work for is based, and who work remotely, either from their own home or from a remote office. International remote workers are typically hired for their skills and expertise and can bring a unique perspective and set of experiences to the company.

    Hiring international remote talent can provide access to a larger pool of skilled workers and can help to diversify a company’s workforce. It can also offer cost savings and the ability to tap into different time zones for round-the-clock coverage.

    Advantages To Hiring International Remote Talent

    Here are some potential advantages to hiring international remote talent:

    1. Access to a wider group of skilled workers: By hiring internationally, you can tap into a larger pool of talent, which can be especially beneficial if there is a shortage of qualified candidates in your local area.

    2. Lower labour costs: In some cases, hiring international workers may be less expensive than hiring locally due to differences in cost of living and wage expectations.

    3. Ability to tap into different time zones: By hiring workers in different time zones, you can potentially have someone working on your project around the clock, allowing the team to get so much more work done in a smaller amount of time.

    4. Diversification of the workforce: Hiring international workers can help to diversify your company’s workforce, bringing in new perspectives and ideas.

    5. Increased flexibility: The big advantage is that international remote workers are not tied down to a specific location, which can give your company increased flexibility and better life-work balance for everyone.

    Keep in mind that there are some important things to think of when hiring remote international workers, to make sure that the process runs smoothly and that you avoid any potential costs or legal issues.

    First, it’s important to understand that any company can only hire employees in countries where it has a legal entity established. The alternative is to work with an Employer of Record, who acts as the employer on your behalf internationally. They will be responsible for compliance with the laws and regulations in the country where the worker will be based, as well as any relevant labour laws in your own country, helping you to  avoid any potential legal issues.

    Second, you will need to consider the tax implications of hiring a remote international worker. This may include withholding taxes and other obligations, such as Social Security and Medicare taxes. An employer of record can manage this as well to help avoid any potential penalties or additional costs.

    Third, you will need to consider the logistics of managing a remote international team, including communication and collaboration. This may require investing in technology and other tools to ensure that your team can work effectively together, regardless of their location.

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    Tips On Saving Costs

    There are several ways that you can save costs when you hire international remote talent, including:

    1. Casting your net widely: Searching outside of saturated areas like tech hubs, and hiring from areas with higher talent supply and market value salary costs, can be a cost-effective way to expand your team.

    2. Offering flexible work arrangements: In recent research from Remote, 57% of remote workers ranked flexibility as even more important than their compensation. Global remote workers prioritize the ability to set their own schedule or work from anywhere, and may be open to compromising in other areas like salary.

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    3. Offering top-tier benefits: Remember that even workers located half a world away will expect a competitive employment package with good local benefits. This can be an opportunity to augment the base salary and attract and retain talent, and can include perks like training and development opportunities and retirement savings plans. An Employer of Record can help in this area too by offering locally relevant and compliant benefits packages.

    4. Leveraging technology: By using tools and technologies that enable remote work, such as virtual collaboration platforms and communication tools, you can reduce the need for travel and other expenses associated with on-site work.

    Conclusion

    Overall, hiring remote international talent can be a great way to access a global pool of skilled workers and expand your business. The key to saving costs when hiring remote talent is to be open to new ideas and also be willing to compete for the best talent.

    However, it’s important to understand the relevant laws, tax implications, and logistics of managing a remote team to ensure that the process goes smoothly and that you avoid any potential costs or legal issues.

  • The New Frontier for HR: Human Centricity Fueled by Digital, and Technological Innovations

    The Article is contributed By Banu Balu, Human Resource, Msystechnologies

    In the wake of the COVID-19 pandemic, the role of HR has become momentous in defining and deciding the future readiness and growth trajectories of organizations. By taking care of employee sustenance, work environment, and cultural gamut and creating value for employees and stakeholders alike, the traditional face of HR has escalated to new frontiers. This recent reinvention of conventional HR approaches and ideologies is evident in the human-centricity element becoming more profound than ever before vis-Ă -vis the emergence of more compassionate and empathetic approaches to employee engagement, retention, and advancement.

    Asynchronous hiring has evolved as a trend for many organizations in the past few years. However, such models have only made the role of HR more significant. Transcending beyond the traditional roles around hiring and staffing, policy-making, and policing the employees, the modern HR competency spectrum has expanded to include evolved functions that are being augmented by digital and technological innovations to become more consequential in nature.

    Indeed, the more turbulent times and agnostic forces that emerged due to the pandemic have been challenging. The world grappled with the challenges of ‘The Great Resignation’ layoffs, and hybrid and remote work models. However, amidst all the challenges, HR management professionals have explored opportunities. They have commendably arisen against adversities & evolved tremendously, shaping more resilient and engaging HR trends and gratifying workplaces of the future.

    Within a knowledge-based economy, as new skill sets and roles are being created and disrupted every day at a rapid pace, the role of HR becomes preeminent to stabilize the unprecedented volatility in the global job market, as is evident from an ingenious quotation from LinkedIn CEO Ryan Roslansky, “
even if you are not changing your job, your job is most likely changing on you.”

    73% of employees rely on their employer to prepare for a future-ready workplace, and HR professionals play an indispensable role in making this happen.

    The modern HR outlook is focused on building accountable and strategic partnerships with organizations, propelling them to re-engineer excellence by gravitating focus on learning and development, delivering quality, and doing some exceptional teamwork.

    Digital HR

    It is undeniable that digitization has impacted the functioning of businesses at regular intervals. To reap the benefits of the digital era, it is part of the organization’s culture to enable people to accomplish work in a more efficient and productive manner.

    Taking a step back, let’s first define what Digital HR means. Digital HR is the process of optimizing HR processes to make them more automated, data-driven, and technologically advanced. As HR processes become more efficient, SMAC (social media, mobile, analytics, and cloud) technologies will play a bigger role in digitalization. The HR department can create a seamless employee experience through apps, artificial intelligence, and bots.

    In terms of the impact digital transformation has had on Human Resources, it has brought about a tectonic shift in the role HR plays within an organization. It is now a dual challenge for HR teams that they must transform both their own modus operandi and the workplace in general. Rather than being a mere support department, HR must be a visionary within the company who leads wider digital transformation programs.

    In order to ensure employee training or recruitment of the best candidate for the organization, the HR along with the Manager must see the bigger picture. For them to achieve this, they need to be aware of the most recent digital tools that will guarantee positive results. The impact of technologically sophisticated HR leaders on business results and employee satisfaction is likely to be significant if they keep an open mind to new platforms and ways of working. Achieving a digital workplace is the responsibility of HR leaders, who need to bring talent together with innovative approaches to enhance employee and customer experience.

    As the business sphere continues to undergo a digital transformation, companies should align their strategic vision with HRM philosophy. Digital technologies are transforming HR processes in all areas, as they prove to be helpful tools in enhancing HRM efficiency and effectiveness. Regardless, a proper combination of HRM practices and organizational culture is crucial to cope with a much more complex environment and competition.

    Digital technologies must be integrated into HR policies and practices in order to benefit all employees and must not only be evaluated in terms of their effectiveness and efficiency, but also in terms of perceived equity and fairness.

    How Traditional HR is evolving to meet the needs of the modern workforce where our employees are engaged, connected, and inspired to contribute towards organizational excellence & is based on the following core principles:

    1. Organizational business partners

    This involves ensuring that all HR processes are aligned with the overall business strategy and that employees can achieve their full potential through practical training and development programs.

    2. Data-driven decision making

    This means working closely with senior management to identify and address critical business issues and supporting decision-making.

    3. Optimized operations

    This includes using technology to automate routine tasks, such as payroll and employee onboarding, to improve efficiency.

    4. Championing employee engagement

    This entails creating a positive work environment that encourages employees to be actively involved in their work and contribute to their team’s success.

    5. Shaping a more progressive, inclusive, diverse, and resilient work culture

    This incorporates promoting diversity and inclusion in all aspects of the workplace and creating training programs that help employees deal with challenging situations.

    6. Prioritizing holistic well-being and growth of employees

    This includes implementing wellness programs that promote physical and emotional health and offering opportunities for professional growth and development to help employees reach the zenith of success within the organizational pyramid.

    Conclusion

    Digital and technological innovations have changed the way we live, work, and do business and even how human resources (HR) functions operate. To stay ahead of the curve and enable their people to be successful in this new environment, HR leaders must embrace human centricity, placing people at the hearts of the organizations.

    There has been a paradigm shift in the status quo of traditional HR as HR roles have evolved to bridge the gap between vital operations within the organization and how the organization is seen, perceived, received, and reciprocated by the external world.

    The advancement of HR capabilities augments an organization’s omnichannel reputation management – holistically elevating its value in the eyes of customers, investors, stakeholders, and employees.

    Organizations adopting these radical changes will be well-positioned for success in the years ahead.

  • The Insights of the Indian Eyewear Industry

    Ironically, Gen Z kids are heavily involved in gadgets, pollution, and genetics, all of which cause snagging to their eyesight. Have you ever considered your eyes becoming overly stressed from constant exposure to light? This is where the eyewear industry in India will eventually thrive. Besides, people wear different kinds of spectacles, such as contact lenses, sunglasses, goggles, etc.

    There is a great shift in the eyewear industry in India, where people are becoming more conscious and want to keep everything perfect—literally everything perfect. Notable, when it comes to vision, who is not going to pay attention when it becomes life-threatening in the latter days? So, it’s better to get a test sooner rather than later.

    Furthermore, the Indian eyewear industry focuses on fashionable specs with various adjustments to improve your vision. In India, the eyewear industry is broadening its scope to include health services for everyone from pre-teens to nonagenarians or geriatrics.

    Popular Products in the Indian Eyewear Industry
    Major Players in the Indian Eyewear Industry
    SWOT Analysis of the Indian Eyewear Industry
    Growth of the Indian Eyewear Industry in recent years
    Insights Into the Indian Eyewear Industry

    Biggest Scam of the Eyewear Industry

    There are a plethora of types of eyewear products; some people prefer contact lenses, whereas others go for bifocal glasses. The Indian eyewear industry is at its peak in terms of sales of the following products:

    Contact Lenses

    Contact lenses are becoming increasingly popular in India, especially among the younger population, offering a more comfortable and convenient alternative to spectacles. India is holding an augmented trend, and the contact lens market in India is anticipated to grow at a CAGR of 7.08% to reach a market size of $197.28 million in 2025.

    Sunglasses

    Sunglasses are popular in India, especially during the hot summer months, with polarized lenses being a popular choice. The northern region of India accounts for nearly 35% of the sunglasses market. Delhi, in particular, has the largest share of the market due to its strong fashion trend.

    Spectacles

    They are the most common form of eyewear in India, available in various frame styles and lens options.

    Sports Eyewear

    Sports eyewear is gaining popularity in India, especially among athletes and sports enthusiasts, offering protection and improved vision during physical activities.

    Fashion Eyewear

    Fashion eyewear is also gaining popularity in India, with designer frames and trendy styles in high demand.

    Major Players in the Indian Eyewear Industry

    According to Statista, the eyewear market in India is estimated to expand by 8.19% from 2023 to 2027, yielding a market size of $7.64 billion in 2027. The major players in the eyewear market in India are:

    Revenue in the Eyewear Market, India
    Revenue in the Eyewear Market, India

    Titan Eyeplus

    Titan, famously known for watches, launched its eyewear division Titan Eyeplus in 2007. The Titan company owned by Tata group has consumer trust by serving the consumer with quality produced at a fair price for almost four decades. Even the subsidiary of Titan, Fastrack has its presence in the eyewear industry.

    Fastrack Eyewear

    Fastrack Eyewear is a subsidiary of Titan Company, offering a range of stylish and affordable eyewear products, including sunglasses, spectacles, and prescription eyeglasses.

    Vogue Eyewear

    A subsidiary of Luxottica Group, Vogue Eyewear is a leading brand in the eyewear industry, offering a range of stylish and fashionable eyewear products, including sunglasses and prescription eyeglasses.

    Lenskart

    Lenskart is one of the largest online eyewear retailers in India, offering a wide range of spectacles, contact lenses, and sunglasses. It was founded by Peyush Bansal, a former Microsoft employee in 2010 along with Amit Chaudhary and Sumeet Kapahi. The company has a strong presence in both online and offline markets and has been successful in providing affordable and accessible eye-care solutions to the Indian population.

    Ray-Ban

    Ray-Ban is one of the most popular and recognizable eyewear brands in India, offering a wide range of high-quality sunglasses and optical frames. The brand has a strong reputation for its classic and stylish designs and has been successful in attracting both young and older customers.

    Himalaya Optical

    Himalaya Optical is a popular eyewear brand in India, known for its quality and affordable products. The company offers a wide range of eyewear products, including spectacles, contact lenses, and sunglasses, and has a strong presence in both online and offline markets. Himalaya Optical is known for its commitment to customer satisfaction and its focus on providing high-quality eye care solutions to the Indian population.

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    SWOT Analysis of the Indian Eyewear Industry

    The SWOT analysis of the Indian eyewear industry can be divided into the following headings:

    Strengths

    • Growing population with increasing eye problems
    • Rising awareness about eye health and increasing disposable income
    • Growing demand for trendy and fashionable eyewear
    • Rising e-commerce sector and increased online sales

    Weaknesses

    • Lack of trained optometrists and eye care professionals
    • High cost of branded eyewear
    • The limited presence of organized players in rural areas
    • Poor infrastructure for eye care services

    Opportunities

    • Expansion in rural areas
    • Growing trend of personalized and custom-made eyewear
    • Increasing demand for high-end premium eyewear
    • Growing focus on eye care and vision correction products

    Threats

    • Intense competition from local and international players
    • Stringent government regulations and standards
    • Changing consumer preferences and trends
    • Fluctuations in raw material prices and production costs

    Growth of the Indian Eyewear Industry in recent years

    Indian Eyewear Industry is one of the fastest-growing retail industries in the country. It has experienced significant growth in recent years, driven by a number of factors such as increasing consumer awareness about eye care, rising disposable income, and a growing preference for fashion-forward eyewear products. The growth of e-commerce has also been a major factor in the growth of the Indian eyewear industry, making it easier for consumers to purchase eyewear products from the comfort of their homes

    The Indian eyewear industry has seen substantial growth in recent years, with the market size estimated to reach $3.6 billion by 2024, growing at a CAGR of around 15% from 2019 to 2024. Furthermore, the growth of this industry is expected to continue in the coming years, driven by rising demand for eye care products and services.

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    Insights Into the Indian Eyewear Industry

    Some of the insights that explain the growth and future potential of the eyewear industry in India are as follows:

    • The eyewear market in India is expected to reach $3.6 billion by 2024, growing at a CAGR of 15% from 2019 to 2024.
    • The Indian eyewear market is segmented into spectacles, contact lenses, and sunglasses.
    • The spectacles segment is estimated to hold the largest share of the market in 2020, accounting for over 60% of the total market.
    • The sunglasses segment is estimated to hold a 35% share of the market in North India and is expected to continue holding the largest share.
    • The eyewear industry in India is highly competitive, with the presence of several domestic and international players such as Lenskart, Titan, Himalaya Opticals, Ray-Ban, and more.

    Conclusion  

    The future of the Indian eyewear industry looks promising, with analysts projecting continued growth in the coming years. The increasing focus on personal wellness and eye health, along with the growing popularity of online shopping, is expected to drive growth in the industry.

    FAQ

    Is the eyewear industry growing in India?

    The Indian eyewear industry has seen substantial growth in recent years, with the market size estimated to reach $3.6 billion by 2024, growing at a CAGR of around 15% from 2019 to 2024.

    Who are the major players in the Indian eyewear industry?

    Some of the prominent players in the Indian eyewear industry are:

    • Titan Eyeplus
    • Lenskart
    • Ray-Ban
    • Fastrack Eyewear
    • Vogue Eyewear
    • Himalaya Optical

    What are the strengths of the Indian eyewear industry?

    The strengthening factors of the Indian eyewear industry include:

    • Growing population with increasing eye problems
    • Rising awareness about eye health and increasing disposable income
    • Growing demand for trendy and fashionable eyewear
    • Rising e-commerce sector and increased online sales