Most of us are into books. After all, books provide companionship like no other. However, the way most of us consume book content is different. While most people in India are still into paperbacks, the ebook market has been swiftly growing in India thanks to Amazon Kindle and the emergence of iPads. When we look at the global picture, eBooks are already a multi-billion dollar market that just continues to grow with each passing day. Today, we shall look at a very interesting case study — the much-coveted battle of the titans in the ebook arena. Read along to know more!
Kindle – The First Mover and the Emergence of the Fiercest Competitor to the Ebook Monopoly
Global eBook Market Revenue (2017 to 2027)
Amazon’s Kindle is the device that Amazon wants you to buy to replicate a book-reading experience similar to the paperbacks. The ebook reader which also comes in a monochrome mode has been the talk of the town for more than a decade now. With a discounted price tag compared to their Paperback versions, Kindle is becoming the standard medium to read books across the internet.
But…
There’s a catch! They ain’t the only big player in this. Amazon’s dream run with Kindle was dented by the introduction of iPad, the undisputed tablet killer that has built a reputation around itself to outclass any screen experience that is more than 7+ inches, so much so that they are seen as a potential replacement to the standard computer and laptop.
Apple and the Subtle Art of Getting Things Right!
Apple’s reputation knows no bounds, whatsoever. The company’s consistent ability to innovate and introduce new solutions to existing alternatives made the company what it is today! Right from the iPhone to the iPod and now the iPad, Apple was doing exactly what an Apple loyalist or a branding enthusiast would expect a brand of their pedigree to do in the first place i.e. innovate better.
It seemed like a path of thorns for anyone entering the tablet and reader segment due to the failures in the past and the increasing dominance of Kindle in the eBook genre. Apple’s announcement of the Apple Books was already deemed by a few industry experts as a potential failure. However, as they say, you can’t just rule the biggest company on the planet out of the picture, in no way whatsoever. The iPad arrived and took the standards for a tablet to a whole new level, with the iOS experience being the cherry on top. The iPads weren’t just better in terms of design and built, but also the superior software optimisation and the quality of apps were also several notches higher, something that was synonymous with the Apple experience over the years.
Apple introduced the Apple Books or the iBooks — whatever you say and gave it a shot against the established Kindle. But, on what grounds? Read further to know!
Steve Jobs – The Magician in Action
Let’s face it. One cannot resist and admire in awe when a magician casts a spell. All of us have been in that zone as children when the magic led us to see things that we never knew could happen. It was the work of an expert magician who understood his skill set better than anyone else and backed it up with supporting material. Isn’t it?
Well. That is exactly what Steve Jobs did with his positioning skills in the first place. Jobs understood the threat posed by Amazon in the vastly lucrative eBooks market. He knew that Amazon would be playing on the pricing, a move that was inspired by the Palo Alto-based iPhone manufacturer itself, as Amazon cloned what Apple did with iTunes to dominate the music industry. Amazon was selling the eBooks at a uniform discounted price of $9.99 storewide, a step that was vastly criticized by publishers, for the impending impacts it would have on their already nurtured offline markets, as the prices were considerably low when compared to what they were selling offline.
Apple had to do something, and they did it in style. Steve jobs, the undisputed genius and the then-CEO of Apple reached out to the leading publishing houses that were already selling on Amazon. Jobs considered Amazon’s loss-leading pricing strategy a suicidal move in the long run and wasn’t willing to replicate the same and compete with the e-commerce giant on the pricing front. Instead, Jobs eliminated the only entry barrier that Kindle had over its competitors i.e. pricing.
When you can get an exclusive agreement with the leading publishers on the planet, namely Macmillan, Penguin, Simon & Schuster, HarperCollins and Hachette, being the early adopters even before the launch of the iPad, not many would doubt your abilities to negotiate. Steve Jobs wanted to get a substantial market in the eBook category, and with the iPad alongside a widespread distribution of 120 million paying customers at iTunes, Jobs knew he had a golden chance to capitalize on the monumental reach of iTunes and the Apple ecosystem.
But then, he had to first grab market share and do something about the seemingly low $9.99 price tag by Amazon. He devised a strategy and offered publishers to sell with iBooks and make the best use of 120 million paying customers.
However, there was a simple T&C, that the publishers had to comply with i.e. the books can’t be sold below the $12.99 to $14.99 price tag on Apple’s iBooks and any other platforms of such kind. If any other platform, including Amazon, doesn’t comply with the same, they would lose access to the publishers and their IPs. It was simple, yet a masterstroke by an undisputed genius. Publishers pulling off and forcing Amazon to price their eBooks at $12.99 to $14.99 came out as a bolt from the blue for Amazon who wasn’t prepared for such a situation. An ‘Uno Reverse’ of the highest standards!
The Struggle for Power – The Amazon Advantage
It took the genius in Jobs, just two emails to convince HarperCollins to sell with iBooks and that too at a Premium price tag when compared to Amazon. Jobs was able to convince four of the six leading publishers globally of the need to price eBooks at a premium to generate sustainable profits, something that was crucial for the expenditures and investment in marketing and infrastructure.
The internal settlements, however, led Amazon to turn up against Apple in court, with Apple and the publishers fined $450 million as alimony to the customers in 2016. Apple’s urge to the publishers to rake in moolah with premium pricing received criticism from the customers and even the court accused them of unfair practices. Finally, it seemed like a Dawn for Amazon which had been going through a tough time, competing as the loss leader across important categories. However, the battle is still far from over with Apple having a considerable marketing and distribution advantage, and a pool of premium customers.
Conclusion
The tale of two contrasting ideologies, and two of the biggest corporate giants on the planet comes across as a goldmine for young entrepreneurs to understand how big shots ideate and execute their plans, and cut their competition short. Apple won a few battles with their sheer distribution network, the hardware and software quality, and the marketing genius of Steve Jobs. Whereas, Amazon had a competitive advantage with the way they had already won consumers’ trust with their loss leader strategy, as consumers always prefer quality products at a cheaper price, something that Amazon was rightly aware of. The battle continues to evolve, with both companies having deep pockets to dominate the market. However, only time will tell who ‘wins’ in the long run—one deal at a time!
FAQs
How much is an Amazon eBook subscription?
You can get a Kindle Unlimited subscription for $9.99 a month, which you can cancel anytime.
What is Apple books?
Apple Books (formerly known as iBooks) is an e-book reading and store application by Apple that you can download to an Apple device.
Is it better to buy a Kindle or books?
If you are a frequent reader who enjoys discovering new books, the Kindle may be a better option for you. Reading on Kindle can save you money, as a Kindle edition of a book is cheaper than the paperback or hardcover version of the book.
How did the British East India Company end Mughal Empire in India?
Beginning
East India Company- Coat of Arms (1600)
There is no doubt in the fact that India was a treasure trove for the Europeans as far as spices were concerned. For a long time, Spain and Portugal had a monopoly over the spice trade from India which gave them a huge impetus globally.
However, this monopoly came to an end with the defeat of the Spanish Armada in 1588 by England. Lacking a proper anchor and gap in the spice trade, the English crown saw this as the perfect time to seize the opportunity.
Hence, with the aim of doing maritime trade with the East Indies, The East India Company was established as a joint stock company. However, the company ended up doing trade with China and India. The company was also called Honourable East India Company.
East India Company came into existence through a Royal Charter dated December 31st, 1600. The company was chartered as “Governor and Company of Merchants of London trading into the East Indies”.
The royal charter gave a monopoly to the company to do business with all the countries that are to the east of the Cape of Good Hope and west of the Straits of Magellan. The charter was incorporated firstly for a span of 15 years.
Starting Slow
The company carried out multiple separate voyages till 1612 which were subscribed separately. Their first voyage to India was in 1601 commanded by Sir James Lancaster who returned back in 1603.
Sir James Lancaster- The First East India Company Voyage (1601)
It was during this voyage that the first factory of the East India Company was set up in Bantam, Indonesia. After the establishment of the Bantam factory, Surat became a vital trade point during the transit.
It was later in 1608 that the first ship anchored in Surat under the command of Sir William Hawkins. Later, the country saw yet another factory coming up in Masuilupatanam which was located in current Andhra Pradesh in 1610.
Rise to Power
By the time the factory at Masulipatanam was established, East India Company was making huge profits from the subcontinent. commanders like Sir William Hawkins were trying to obtain trade concessions from the then Mughal emperor Jahangir although in vain.
Simultaneously, EIC was in constant battles with its European counterparts like the Portuguese and Dutch. The company’s victory in the Battle of Swally against the Portuguese was the turning point in changing the power dynamics of trade in the subcontinent. It also marked the end of Portuguese dominance in India.
Their constant attempts to gain a territorial base in India saw a green light in 1612 with the efforts of Sir Thomas Roe who went to the court of Jahangir on behalf of King James I. Apart from gaining permission to set up factories, he also succeeded in securing exclusive rights for the company. India later saw factories coming up in Madras, Surat, Bombay, and Calcutta in the next few years.
Sir Thomas Roe
The East India Company also ensured that it did not confine to the trade of spices. They slowly expanded to the trade of other exotic spices apart from pepper, silk fibres, indigo dye, tea, etc which were heavily priced by the Europeans.
Growing Through Charters
A painting of East India Companies Settlement in Bombay and Their Ships on Bombay Harbour.
From the beginning of the inception of the East India company, it has always been various charters that gave the company its authority. Over time the charters bestowed immense power to the company beginning with the charter of 1669 which gave territorial sovereignty to the company.
It was first granted to the Port of Bombay. The charter thus gave the company extensive administrative, judicial, and governmental powers. Later through the charter of 1677 the company was given permission to mint coins in Mumbai.
Followed by that the company also saw the granting of the Royal charter of 1683 which gave the company full power to declare wars and make peace with various provinces in the nation.
Followed by several of these charters, in 1757, the East India Company seized control of the Mughal state of Bengal after the Battle of Plassey. This led to the company gaining the power to appoint a new governor and even collect customs and taxes.
Later the company used these funds to purchase and export Indian goods. It created a situation wherein the company had immense power with no responsibility.
In the years following the charters, the company began to expand its territory forcefully through forged alliances and wars. Their mighty army of over 2,60,000 people was twice as big as Britain’s army. Their manpower and weaponry help them to rule almost most of the subcontinent.
They also continued to interfere in the internal politics of smaller kingdoms and were ensured to create constant political fights. The period from 1765 to 1772 saw the company growing over and above itself gaining immense revenue through incessant tax collection and rampant corruption.
Abuse of Power and End of Reign
The First Flag of East India Company (1600)
Over time, the profits of East India Company started to decline while the fortunes of the officers flourished. The British Crown also realized the extent of abuse of power which led the monarch to directly seek control of the subcontinent.
From 1785 to 1858, the Parliament granted Charters only for 20 years at a time. The subsequent charters that were granted in 1793, 1813, 1833, and 1863 slowly took away the powers of the Company.
While it retained the political and administrative responsibilities of the company, the Charter of 1813 clearly stated the ultimate sovereignty of the Crown over the Company. Furthermore, the Charter of 1833 instituted a Board of Control wherein the complete authority of the company was given to the BoC. It also enhanced the power of the Governor General.
The British Raj officially took over power in India in 1858 followed by mass protests against the atrocities of Company Rule in the same year. The East India Company was deprived of all its power with the Government of India Act of 1858.
All of its possessions in India including the army were taken over by the Crown. After handing over the administrative responsibilities to the Governor General who the Crown directly appointed, the East India Company was officially dissolved followed by the Act of Parliament in 1874.
East India Company – Today
There is no doubt in the fact that East India Company has made its impact on the world in such a way its ripples are still alive. The company continued to live on as a small unit trading small units of coffee and tea.
However, it is ironic to note that the East India Company was renewed by an Indian entrepreneur named Sanjiv Mehta. He procured the company name in the year 2005 for which he said, “A company which once owned India is now owned by an Indian … a feeling of the empire striking back,”.
Sanjiv Mehta
It was renovated as a consumer brand with a special emphasis on luxury foodstuffs. It has over 350 luxury products which include over 100 varieties of tea, chocolates, and so on.
Conclusion
The journey of East India Company is an extensive case study of what abuse of power can lead to no matter how profitable the company is. EIC’s loss of power and its subsequent re-birth after 135 years points out the need for proper management and vision.
FAQs
Who founded East India Company?
East India Company was founded by Elizabeth I of England, Thomas Smythe, John Watts, and the Royal charter.
Who came first in India for trade?
The first person to come to India for trade was Vasco da Gama in 1498.
Who was the last ruler of the East India Company?
The last ruler of the East India Company was Charles Canning (1857-1858).
What is the old name of East India Company?
The company was named and renamed several times before becoming the East India Company. The old names of the East India Company were Governor and Company of Merchants of London Trading into the East Indies, United Company of Merchants of England Trading to the East Indies, and sometimes also referred to as English East India Company.
When it comes to the festive shopping season, Amazon is not wasting any time. Amazon is already releasing early discounts ahead of Black Friday, which falls on November 25, following the retailer’s Prime Day event in October.
The finest savings are available through Amazon Black Friday sales this year, and they’re starting sooner than ever. If it isn’t already on sale, there is a significant probability that it will be, if you’re looking for gifts (for yourself or your friends).
The largest retailer in the world, Amazon, was established more than 20 years ago and now partners with businesses of all sizes, from small independent vendors to giant multinational corporations, to sell virtually every popular product and offer services across all categories. Presently, Amazon sells approximately 12 million items. The total number of items for sale increases to approximately 353 million when platform merchants are included. With so many choices, it is quite confusing to find the best ones but you can get the hottest Amazon KSA codes for Black Friday Sale. Keep reading to find some ways to find these leads.
Amazon often provides incredible Countdown to Black Friday discounts beginning around November 1 as well as mind-blowing Cyber Week deals, in addition to discounts throughout the week of Black Friday. The finest Amazon Black Friday offers to wind up on many buyers’ Christmas shopping lists because they provide so many desired products at such competitive costs.
Extra Deals with Newsletter Signup
Join the Amazon email today to receive the most recent discounts and a free book each month before it is released, among other benefits which include coupon codes related to the Black Friday Sale.
Bargain Finds
There’s a special section of amazon.com called bargain finds. And these prices include standard shipping, and of course, the rates may differ depending on the location to which the products are to be shipped. Many of the products range from $3 to about $20 in this very section, which is way cheaper than the same products on the main Amazon page.
You might know that you can trade in pre-existing devices, and Amazon will handle the return shipping to them for free. And then you’ll get that credit toward an additional device. But you might not know that they actually run promotions on a special version of the trading page. So, for example, if you were to trade in an old E-reader, you get 20% off a new Kindle E-reader and that’s on top of getting cash back for the E-reader you’re already trading in. And the whole trading process is actually seamless. You get to select what it is you want to trade in.
For example, if I have a first-generation old used indoor home security system, I’ll answer a few questions about it. And not only am I getting 50 bucks back for trading in my old system, but I could get an additional discount on the second generation if I choose to buy it for that respective product line.
Amazon Prime Student
Prime Student, the student-friendly equivalent of Amazon Prime, is a low-cost program for, as the name suggests, students. People with a valid edu email address can avail of this benefit. The student-members can get free shipping within two days on some purchases for the first six months of membership and access to Prime Photos, Prime Video, and many more services. After the first 6 months of student membership, one has to pay $7.49 per month for access to all the normal Amazon Prime services. One can also avail $10 for introducing a friend to an Amazon Student membership.
Woot Section
Once you’re in the Amazon warehouse section, keep an eye out for Woot offers. Woot was once a daily deal website until Amazon bought it. Currently, the website offers a variety of daily specials. Although many of these are refurbished and used goods, they are still worth a look.
Coupon Platforms
At the end of the day, you should always check the discount codes offered on the websites of various coupon platform firms, such as Almowafir, before checking out an item to place your order. One of the best websites for discovering coupons, deals, and discounts is Almowafir with thousands of discounts and promotions from the best brands.
The largest online shopping site in the world, Amazon KSA, is operated by the US corporation Amazon, one of the most successful businesses in the world. Amazon Global and Amazon UAE both integrate creators, advertising, and merchants with website visitors who are making purchases. These websites let sellers set their prices for their items, encouraging competition and driving down costs to the lowest level that can be sustained. Almowafir offers Amazon codes and Amazon coupons for KSA, which enable you to save money on Amazon KSA.
It was the year 2020 when at least five automobile manufacturers like Audi, BMW, Cadillac, Porshe, and Tesla were rolling out a subscription model for certain features of their high-end cars. This meant that customers were to pay monthly or annual subscription fees to use features like active driving assistance or voice recognition. This would be despite the fact that such features are already built into the car.
Tien Tzuo, Founder and CEO of Zuora – a company that helps in creating subscription programs said – “Your car could be a gigantic, heavy phone-slash-credit card. I think it’s a really short step to figure out how to turn that car into a $30-a-month revenue stream,” he says. He added that if subscription-based models prove successful, they will be here to stay.
The year 1886 saw German inventor Carl Benz patent his Benz Patent – Motorwagen, which came to be regarded as the birth year of the 4-wheeler. The 1908 Model T, an American car manufactured by the Ford Motor Company, was one of the first cars made that was affordable for the masses. In the United States, cars were adopted speedily to replace animal-drawn carriages and carts. In other parts of the world, including Europe, demand for automobiles increased after World War II.
Driving, parking, passenger comfort, and lights are all essential parts of a car. Over the years, the automobile has evolved to include various other features and controls to make the driving experience easier. These include rear-reversing cameras, air conditioning, navigation systems, in-car entertainment, etc. The 21st century has also witnessed the next-gen electric cars being commercially available.
Subscription-Based Car Model – Meaning
The Looming Future of Car Subscriptions
The business of building and selling cars is one that operates on relatively low margins. However, automakers are now aiming to build their profits substantially by charging customers monthly or annual subscription fees to access certain features. This has been possible due to the increase in internet connectivity of vehicles, enabling over-the-air software updates that were pioneered by Tesla approximately a decade ago. The deep internet connectivity of vehicles means that car companies can reach inside a vehicle to add new capabilities and tweak things from a distance. This technology can be monetized to offer certain services like heated seating, remote key start fobs, and various other creature comfort features.
Mark Wakefield, who runs the automotive and industrial practice at the consulting firm AlixPartners observed that such an approach will allow car makers to streamline manufacturing to uniform specifications and owners can then add features of choice, a la carte.
How Does a Subscription Plan Work for Car Companies?
In 2020, the car manufacturer Porsche gave a detailed explanation of how its subscription plan would work. The service also called Function on Demand will give car owners two options – outright purchase of a car feature or a monthly subscription fee to utilize the feature. The Porsche Intelligent Range Manager is the only feature currently that is available as a subscription feature. This feature optimizes the car’s navigation system to maximize the EV’s range and minimize charging stops. The outright purchase of this feature would cost USD 474 while a monthly subscription would cost USD 12 after a three-month trial period.
In the same year, Tesla made its ‘Full Self-Driving’ feature available as a subscription. Its subscription price for basic Autopilot to FSD capability is USD 199 per month, and for Enhanced Autopilot to FSD capability, it is USD 99 per month.
A monthly subscription fee would be charged for the Cadillac Super Cruise active driving assistance after its free trial. An Audi spokesperson said that the car’s Function on Demand system would allow some owners to buy the navigation after the purchase. The car manufacturer will expand the navigation system to include more features in the future.
Another luxury car manufacturer, BMW, allowed the owners of certain car models to subscribe to features like real-time traffic alerts, navigation map updates, and live concierge service from its ConnectedDrive store. The automaker is now selling a subscription service for heated seats in countries like the UK, Germany, New Zealand, and South Africa for about USD 18 per month.
By the beginning of 2022, brands like Lexus, Toyota, and Subaru were inviting owners to pay for the convenience of being able to lock or start their cars remotely through an app. In some BMW car models, automatic high-beam headlights can be unlocked through a subscription payment. General Motors and Ford are offering subscription plans for access to their hands-free highway driving systems. Automakers are aiming to generate USD 20 billion in annual revenue from offering such software-based services by 2030.
Monthly subscriptions expire and do not automatically transfer to subsequent owners, unlike an outright purchase which becomes a part of the car features. A managing attorney at Consumer Law Group, Daniel Blinn said that automakers might have to include warranty coverage for features for the time period that the subscription is alive. He further elaborated – “They’ve been paid to provide that service. That is going to extend the manufacturer’s obligation to make repairs.”
Customers only pay for required services as needed and not as part of the upfront cost of the car.
Disadvantages
Consumers who do not choose certain subscription services may still end up paying a high-cost upfront at the time of purchase, as the cost involved in installing necessary equipment will be a part of a new car.
Because of the absence of law clearly stating the necessary features that form a part of the mandatory installation, carmakers may try to play around with safety features.
Customers may feel like they are paying twice – once for the function to be built and again for activating it.
Car manufacturers are still unclear about subscription-based pricing, which needs to be regulated by law to insulate consumers from heavy rates.
As of right now, most of the subscription plans are coming from luxury automakers, as their client base is well-equipped to absorb an annual or monthly fee. However, industry analysts are predicting the introduction of subscription-based car models to the mass market as automakers are looking for new revenue streams in an effort to fund their ambitious plans to build electric, connected, and autonomous vehicles.
FAQs
What is the cost of a Porsche Intelligent Range Manager subscription?
The outright purchase of this feature would cost USD 474, while a monthly subscription would cost USD 12 after a three-month trial period.
Which car companies offer features on a subscription base?
Companies like BMW, Tesla, Cadillac, Porsche, Audi, Toyota, Lexus, and Subaru offer certain additional features on a subscription base.
What are the advantages of the subscription-based model?
Some of the advantages of a subscription-based model are:
Over-the-air capabilities present a huge opportunity for carmakers.
It is a recurring revenue stream.
It builds long-term relationships with customers.
Customers only pay for required services as needed.
Formerly a Big Tech giant, Facebook (now Meta) isn’t even among the top 20 most valuable American companies today. Facebook, which has a market cap over $1 trillion, was one of the top five most valuable American businesses last year. The company is currently valued at around $270 billion.
Most people don’t expect a business the size of Facebook failing with any of its creations or products. However, this is untrue! Well-known businesses have experienced numerous setbacks along the way. Facebook has had some particularly severe setbacks among these.
Facebook has always been open about its development plans. Few people are aware Facebook struggled in many areas during its early years. Many of Facebook’s inventions either received harsh criticism or weren’t working for general users. Some of the products violated both internet neutrality and user privacy.
There have been instances where Facebook received harsh criticism in the US and Europe for some of its monetized services that ultimately proved to be a complete failure. In this article, we’ll talk about some of Facebook’s most notable mistakes. Let’s get going!
By the end of 2012, Poke, a Facebook application resembling the well-known Snapchat, was released. Since it copied Snapchat’s feature of disappearing photos and texts exactly, it was initially quite popular.
In an interview, Mark Zuckerberg claimed that Poke was entirely developed in just 12 days by a small team of programmers. It was a result of a marathon coding session called a hackathon.
Later, in comparison to other well-known Facebook products, Poke was One of Facebook’s biggest failures.
Parse
Parse
Facebook purchased Parse, a mobile app development platform, in 2013. Facebook had a good feeling about running Parse and growing it to heights, as the business was doing well and had big clients. But when Facebook bought it, things didn’t turn out as planned. Facebook discontinued Parse citing a desire to focus more on its core offerings.
Beacon
Facebook Beacon
Beacon, a 2007 release from Facebook, was yet another resounding failure. It was essentially a tracking program that recorded about 50 online activities and purchases of the users. Beacon then published the user’s purchase to its News Feeds without getting the user’s permission.
Thousands of Facebook users signed petitions calling for the removal of Beacon as it went into effect. Following this, about a month later, Facebook finally stopped using the tracking program Beacon.
Later, Mark Zuckerberg apologized to its users for the bizarre design and promised to do better.
Facebook Credits
Facebook Credits
Facebook developed a new shopping app for users to shop using the credits they accrued from playing games like Farmville. It was entirely for customers’ fun and benefits. However, it was a complete failure because the user couldn’t comprehend the procedure. Facebook credits ultimately shut down because of their complicated functioning and process.
Creative Labs
Facebook Creative Labs
To encourage designers and developers to create more inventive and distinctive mobile apps, Facebook introduced a new product in 2013 called Creative Labs. But the outcome was the opposite. In fact, because of this alone, Facebook experienced two significant failures: the first was Paper, a new reading app, and the second was Slingshot (the second failure of an attempt to duplicate Snapchat).
The majority of Facebook’s unsuccessful apps were products of Creative Labs. If it had persisted, it would have led to more failures for Facebook and was the primary reason for the low overhead.
Sponsored Stories
Sponsored Stories by Facebook
Sponsored Stories, one of Facebook’s most complicated and controversial products, was immediately banned because it might have to misuse risks and threats. But later, Facebook revived it with altered specifications.
Conclusion
One of the most popular social media platforms is Facebook. It has many incredible features and services that enchant the users in all regards. Initially, it faced criticisms and failures with its unusual yet innovative products. Although the ideas were pretty good in most cases, it was not enough to hold onto the audience.
This article clarified a few things regarding the unsuccessful Facebook products. Stay tuned for more articles like this!
FAQ
What are some of the failed Facebook products?
Beacon, Sponsored Stories, Creative Labs, and Facebook Credits are some of the failed Facebook products.
What are some of the companies owned by Facebook?
Messenger, Instagram, WhatsApp, and Oculus are some of the Facebook owned companies.
What are some of Mark Zuckerberg’s failures?
Facebook crisis, Criticism for his inventions, Securing investment and funding, Invasion of privacy scandal, and Critical need for massive users are some of Mark Zuckerberg’s failures.
Who is Facebook’s biggest rival??
Facebook relies on Ads as a source of revenue. So Google is the biggest competitor of Facebook when it comes to advertising.
In today’s time before starting any work, a proper roadmap is required, which increases the chances of the work being perfect. Like before building a house, a complete map is required, or before clothes are sewn it is designed on paper. A designer is simply the one who creates the best final product using his imagination and creativity. Design can help in transforming the way we look at things and can also result in new economic benefits and a better quality of life. The design industry in India is growing at a rate of 23 to 25% annually.
India currently needs more than 62,000 designers for the country’s industrial, graphic, communication, packaging, and other such industries, out of which only 7000 are qualified designers. This shows the opportunities and potential that the design industry in India has. Different designing professionals such as UI/UX Designer, Fashion Designer, Interior Designer, Animation designer, Product Designer, and Graphic Designer are now a must-have in upcoming fields like Automobile, IT communications, Fashion Industry, Hospitality, Retail, Media/publishing companies, education, real estate, and even government.
The number of design companies and educational courses is now increasing simultaneously with the growth of the designing sector. The main job of a Designer in any profession is to provide good products and services, improve business efficiencies, productivity, and margins, and increase revenues. So, if you are thinking of taking up design as your career you can check out these professions as they can help you decide your future. The design Industry in India will increase significantly in the next ten years.
One of the most well-known designers in the design industry is a Graphic designer. The role of a graphic designer is to understand and analyze what the client wants and to interpret it into visuals, images, text, videos, etc to convey their message. Graphic designers often make attractive logos, brochures, business cards, invitations, packaging, pamphlets, and more for different reasons such as marketing, game development, product illustration, and website to optimize the user experience.
The graphic design industry is on a constant rise. According to the study done by the department of Labour Statistics Graphic designing is one of the growing fields in India. As per the Bureau of Labour statistics report, this field is expected to grow by 5% by 2026.
Tips for becoming a graphic designer in India
Graphic designers are now a must-have in advertising agencies, print industry, web designing firms, educational institutes, manufacturers, marketing firms, different publishers, game development, design studios, and social media-related fields. Graphic designers can now choose to work under different profiles such as Logo designers, artists, newspaper or magazine layout editors, creative directors, design consultants, design professionals, and many more. The average salary of a graphic designer in India can range from Rs.3,47,800 per annum to Rs 8,50,000 per annum depending on the years of experience or client profile the designer has.
We all know what an animator is, because of animated movies such as Ratatouille, Tangled, Wall E, etc. Animators are the ones that are responsible for bringing life into characters that we grew up watching through the medium of special effects and technology. Animation is an art that merges text, images, and graphics along with audio and video components in order to create virtual art. These professionals create two- or three-dimensional animation and special effects for various forms of media such as videos, television, Cinema, animated movies, games, etc.
Nowadays with the growth of the film, entertainment, and gaming industries in India, there has been an instant increase in the demand for animators. For movies, animators and artists both works with the team on computer software to bring ideas and characters to life. Animators also have a huge role to play in the gaming and advertising industriesas requires a lot of animators to design games and create special effects for ads.
Animation Skills
The Indian animation industry has grown rapidly in the last 5 years. According to a recent FICCI report, the Indian animation & VFX industry is growing in excess of 20%.About 6,700 openings for special effects artists and animators are projected each year, on average. Animators now have a vast array of job roles other than an animator such as layout artist, character animator, storyboard artist, special effects artist, 2D or 3D animator, background artist etc. The basic salary for an animator can range from Rs. 375000 per annum to , even all the way up to Rs 8L per annum depending on the animator’s portfolio and work experience.
Interior designing is also one of the most popular designing profession, as it deals with designing, and improving the safety and functionality of a house or an office. Interior design is a multifaceted profession that is known for mixing both creative and technical solutions while designing the interior of a house, office or building. They usually start with sketching their ideas in design software after which they discuss their plans for the space with the engineer and builders who are responsible to bring the design to life.
Interior designers are also responsible to select the colour scheme, furniture, flooring, lighting which are must-have elements of a room. A designer must be able to analyze and understand what their client wants and create suitable designs on that. In India, interior designing is getting popular with a lot of people opting for the services of a professional for their spaces. The interior design market in India is said to rise 8.5% by 2025, as according to MarketWatch interior design was valued at $130,100 million in 2018.
Interior Designing Skills
According to a study made by Brandonville, interior designing jobs are expected to grow 13% in the next ten years. The top designers do work for construction firms and also choose to work as freelancer. The starting salary for an interior designer is around Rs. 4,00,000 per annum, while if you are experienced and have well-known client lists than the they can get paid up to Rs.30,00,000. The other factors for higher salaries are the location and size of the company.
The fashion industry is one of the most successful and popular industries not only in India but around the world. The role of a fashion designer is to design new clothing and accessories, but not only that they are also the ones who take the existing fashion trends and materials and create new designs and products using their creativity. Fashion designers usually start their work by sketching their designs on paper or even digital devices and then go on to testing what colour, material, the texture will go according to the design.
Fashion designers need to combine creativity along with managerial skills such as marketing, design production, understanding the fashion media, promotion and quality control in order to become successful. Aspiring fashion designers can choose from different roles such as fashion illustrator, stylist, fashion coordinator, fashion consultant, merchandiser etc. India has one the youngest population in the world hence why the current generation are more fashion-conscious which in return is creating a demand for fashion designers and brands. The fashion retail market in India is expected to grow at a rate of 9.7% CAGR.
Fashion Designing as a career in India
The fashion industry in India is also aiming to grow Rs 1,000 crores from the current Rs 180 crore in the next ten years. Consumers are expected to spend $1 trillion cross border E-Commerce by 2020, while 900 million people already have international connections providing an opportunity for Indian fashion brands and designers to expand their user base. The starting salary of a fashion designer in India can start at Rs. 15,000 per month to Rs 40,000 per month depending on the work experience, the client profile and brand you are working for. However, if you become a reputed designer you could demand more.
UI/UX is one of the most competitive design professions, they are also usually mistaken for graphic design but are two different things. A UI/UX designer is responsible to design the software program and interface of any mobile application that we use today. The main job of a UI/UX designer is to create a user experience by improving the design and usability of the given application. They design the interface of websites, mobile apps, software and video games so it is easier for the users to navigate and interact in the app.
These designers focus on creating designs and making them easier, more attractive and enjoyable for the user to use the app or website. Designers take into consideration what the user’s needs while designing and then analyse components such as usefulness, value, credibility and accessibility. They solve issues such as long and complicating form, hard to find buttons and visual clutter which can prevent users from buying what they want from the website or page.
Along with the growth of the startups in India the UI/UX industry is also on the increase as many start-ups are now in need of a UI/UX designer. According to some recent studies UI/UX designers are one the most demanded professionals in the current day and age. India has a digital economy of 1.3 billion which goes to show how important the UI/UX will be in the coming years. The average salary of a UI/UX designer is Rs 6,95,863 per annumand can increase all the way up to 10 lakhs per annum depending on the years of experience the designer has.
The skills required to become a UI/UX Designer are:
Jewellery has great economic significance in the Indian Industry. Jewellery design is the art of designing and creating jewellery. This art has taken many forms throughout the centuries, from simple beadwork to sophisticated metalworking and gem cutting. Jewellery designers work with precious metals, diamonds, beads and gemstones to create wearable pieces of art. A jewellery designer may create one-of-a-kind pieces for high-end jewellers or an entire line for a mass-market fashion designer. An entry level jewellery designer (1-3 years of experience) earns an average salary of Rs 314,698. On the other end, a senior level jewellery designer (8+ years of experience) earns an average salary of Rs 523,044.
In order to become a jewellery designer, aspirants can pursue a course at the undergraduate (UG) or postgraduate (PG) level. Popular UG courses that candidates can pursue at the UG level include BDes, BSc, BA in and BVoc.
The skills required to become a Jewellery Designer are:
Should be creative, imaginative, technically sound with the fashion industry, and committed to work.
Should have a sense of design and a passion for the profession.
Should have skills to understand the latest trends and practical skills with tools and materials.
Must understand the various metals and gemstones and must have numerical skills for measuring, and calculating costs of materials and pricing items.
7. Textile Designer
A textile designer is a person who designs colorful fabrics and decides whether cloth will be made of cotton, wool or knitted, etc. Textile design is a highly creative field that involves the process of creating designs that are printed on woven, knitted, or other types of fabrics. They keep an eye on changing fashion trends, understand textile techniques, are good communicators, possess problem-solving skills, and enjoy a challenge, all while staying on budget and deadline.
The skills required to become a Textile Designer are:
Technical knowledge
Creativity
Commercial awareness of the textile industry
Research and data handling capacity
Critical analysis and interpretation of materials
8. Industry Designer
Industrial designers develop designs for a range of practical products that are used in commercial, domestic, and industrial situations. Industrial designers imagine how consumers might use a product and test different designs with consumers to see how each design looks and works. An industrial designer can work in different fields i.e. Industrial Designing, Industrial Research, furniture designing, package designing, automotive designing, etc.
The skills required to become an Industry Designer are:
Mechanical skills.
Interpersonal skills.
Experience with manufacturing.
Strong Computer skills.
Should be Artistic.
Must have proficiency in design software.
Must have knowledge of business practices.
9. Communication Designer
A communication designer is a professional who uses visual elements to deliver information and attract consumers by spreading awareness about a topic. They oversee promotional campaigns by designing and producing the entire scope of a messaging campaign, from start to finish. Communication designers may work in advertising, book marketing, web or app design, branding, product design among many other fields.
10. Exhibition Designer
An exhibit designer is specially trained in the art of layout and design to create displays and fixtures for large exhibitions, shows, corporate exhibitions, museums display, library display and galleries.
The skills required to become an Exhibit Designer are:
Excellent communication and listening skills
Must be able to handle criticism.
Have a positive attitude towards making changes.
Must have good negotiation skills.
Frequently asked questions – FAQs
What are the top five design professions in India?
The top five design professions in India are UI/UX Designer, Fashion Designer, Interior Designer, Animation designer and Graphic Designer.
What is the role of a UI/UX designer?
A UI/UX designer’s role is to design the software program and interface of any mobile application that we use today.
What do interior designers do?
Interior designers are also responsible to select the colour scheme, furniture, flooring, lightning which are must-have elements of a room.
What is the salary of a Graphic designer?
The average salary of a graphic designer in India can range from Rs 3,47,800 per annum to Rs 8,50,000 per annum depending on the years of experience or client profile the designer has.
This article is contributed by Karam Suri, Founder of Dusk Attire.
The digital age is a widely used term across the globe for quite a long time now. Be it, toddlers or elders, everyone is hooked to social media and digital platforms for their personal reasons. Be it business or entertainment, digital platforms have something for everyone. From starting a home-based baking business to launching an online fashion brand to just watching your favorite shows, these platforms cater to everyone’s needs.
Every time someone steps into the business world, they have a bigger picture in mind and strive day in and day out to make their dreams a reality. Something as trivial as essentials to luxury items, everything is attached to a brand name. Such is the influence of these brand names on our minds that it becomes unsettling if we don’t get the items from our desired brands.
There are thousands of fashion brands in India, some selling similar products whereas others have created a niche for themselves. The competition is so high that some brands disappear into thin air, and some stand the test of time and go on for generations. Everyone starts from small. A small establishment in a busy market, a small counter in a flea market, a small home-run business, or a small brand launch operating only online. Each individual(s) starts from somewhere and how well are they able to market their brand is what the success of the brand depends on.
Fashion startups start small, catering to their known circle in the initial stage. Gradually, word of mouth helps and they either launch their brand online or locally and nationally at various fleas and exhibitions. Moving on, if the finances allow, they might be opening a stand-alone store or putting up their outfits at multi-designer stores. In order to do all these things, marketing plays a huge role.
Building a brand requires marketing as much as passion and dedication to rise above just being a startup. Social media is the place to be if you want things to go viral. It will help you create the right kind of buzz to tap into the target audience. There are numerous ways to leverage the power of social media to your benefit. Marketing gimmicks depend on how creatively enabled a person is. There is truly no end to this. The basic idea like making a brand page and posting about the brand and outfits on the feed and stories worked for everyone initially. It still works as your customers have to be updated with what the new launches are, what the brand is doing if there is anything out of the box happening with the brand, or just a regular update of what’s taking place on a day to day basis. Another thing that helps fashion startups turn themselves into a brand is investing in influencer marketing.
Influencer marketing is the way forward if you want to rise from the ground level, reach a wider mass and turn yourself into a brand. In Layman’s terms, you get a known or popular face on board to market your brand’s product(s), they reach out to their followers by putting it up on their stories, or social media feed or endorse the brand as a whole and influence their followers. This helps in tapping onto a larger mass and increasing the clientele. It automatically drives up the sales and eventually, the brand starts getting famous. A short-term influencer marketing plan has the possibility of running into a long-term commitment if the brand sees desired results. The shift change of an influencer marketer to being a brand ambassador can be beneficial to both the brand and influencer. The possibilities are endless, it is all about the action plan and how well you can execute it.
Speaking about fashion startups rising to being brands, Karam Suri, Co-Founder of Dusk Attire, says, “Today’s generation is extremely conscious about what they are buying. Trendy and versatile outfits are usually the popular choice as they can be worn at various occasions. Elegance is the word everyone is focused on. Be it party wear or loungewear, people want to pick the best of everything. When the demand is clear, brands should step up and cater to them in the best possible way. It is true that influencer marketing is essential and it is definitely the way forward, as the customers connect to the known faces faster than a random marketing advertisement.”
Karam Suri further says, “At Dusk Attire we aim to fulfill everyone’s wishes of owning trendy loungewear. This pandemic gave us a huge lesson in comfortable clothing too. We aim to cater to the same demand and stay true to the name, all our collections are apt for the street to sheets whilst keeping excellent craftsmanship and comfort as a priority.
No business is run on a 100% success module. The risk is always high, but the determination to keep pushing yourself towards the goal of establishing your startup as a brand is what makes the difference. Numerous marketing tools are at your disposal, use them wisely, and see how things start falling in place. As much as age-old techniques of word of mouth marketing and advertisements help, in today’s time investing in proper marketing options like celebrity gifting, influencer marketing, and social media marketing, to name a few will help equally. And once your audience connects with the brand, it becomes a responsibility to maintain that bond and make sure you are the first choice for your customers.
Draw inspiration from the brands whose names are synonyms to the products. Yes, you read that write. Such is the impact of a strong brand like Cadbury that today nine out of ten people who go to local shops to buy chocolates, directly say Cadbury when in reality they might want some other chocolate. This is when you know you have established yourself as a brand and etched an image in people’s minds when the name of the brand becomes the product’s name.
redBus is India’s first organized bus ticket booking service and the biggest aggregator of bus tickets. It has been received very promptly by the Indians. India being the 5th largest contributor to the world’s GDP, aims to take the travel and tourism industry to $250 billion by 2030 and $1 trillion by 2047.
Companies like redBus put their immense contribution towards making the journey of travellers very convenient and safe. redBus’ contribution has taken the travel and tourism industry to great extent. Let’s look at the business model of redBus and understand its complete operations.
redBus is India’s largest online bus ticketing platform headquartered in Bangalore and owned by Goibibo. It provides a ticket booking facility through its website, iOS, and Android mobile apps and connects bus travellers with a network of over 2500 bus operators.
For better guidance, the company joined the TiE Entrepreneurship acceleration program where they got the guidance of great mentors.
redBus was the first of its kind and no doubt, it came out radiantly. Today, it sells more than 18,000-20,000 tickets per day. The company has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.
Where Does redBus Operate?
Till now, redBus has served more than 18 million people across the world. Outside India, redBus also has a strong foothold in many countries :
Countries where redBus operates:
Colombia
India
Indonesia
Malaysia
Peru
Singapore
Key Services of redBus
redBus offers a secure and manageable experience for booking tickets online. Moreover, it offers complete choices to the customers such as choosing their destination with their preferred seating options. redBus not only works in the roadways domain but recently enters into the railway domain under the name of redRail.
List of services provided by redBus:
Bus Hire
Bus Tickets
rPool (Bikepool & Carpool)
rYde
redRail
Target Audience of redBus
redBus generally target audiences who want to book a bus ticket without going to the physical place to buy a ticket. This concept of redBus is made to acquire its consumers by providing customer support, discounts, and other perks which are impossible to get at the physical bus counter.
Business Model of redBus
The business model of redBus is very strong along with its digital marketing strategies. redBus’ business model is straightforward, as it charges a commission on every bus ticket booking. It also charges a commission from the bus operator on every ticket booked through its platform. The commission is approximately 10-20% based on the value of the ticket being sold.
redBus also provides hotel services along with ticket booking. It offers great deals on various occasions and also offers special discounts as well. But, the most advantageous factor that comes with RedBus is that it provides an opportunity for the customer to choose the most favourable route to their destination with the best seat in the best bus.
What Is Unique About The Business Model Of redBus?
Its business model is entirely based on its quality service to the customers. Its social media strategies are designed so well that it always finds great proposals for its audiences. It mostly keeps on promotion but that too, on customers’ demands and favours.
Some of the features that make it unique are:
Customers can track their buses.
Customers can book buses according to the ratings.
There are reserved seats for women.
Customers can give feedback on the services provided and their experiences after the trip.
How Does redBus Make Money?
redBus makes its money by charging some fee as commission from the bus operators on each booked ticket on redBus. The commission comes as 10-20% of the total ticket value.
In 2019, redBus received great success, it had annual revenue of $85 million. The company has a valuation of $710 million in 2020. Now, it has over 36 million users from all over the world with 3500 bus operators according to the data given on its website. And known as the largest online bus ticket company.
Conclusion
redBus has gone through lots of success and failure since its launch in 2006. There are tons of bus services available 24×7 to meet all the needs of travellers. Its business model is quite simple and strong but most importantly, redBus is widely famous and welcomed among the common people.
redBus eases the major issue of finding the correct bus for any destination. It’s one step closer to fulfilling every need of a traveller along with destination travel requirements. redBus is one of its kind and it’s a true inspiration for developing services for the betterment of common people.
FAQs
What is redBus?
redBus is an online bus ticket booking platform from Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri in 2006.
What are the subsidiaries of redBus?
redBus has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.
How much commission does redBus take?
redBus charges a 10% to 20% commission on the value of the ticket.
Which company owns redBus?
The parent company of redBus is Goibibo.
Who is the founder of redBus?
Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri founded redBus in August 2006.
Did Ibibo Group acquire redBus?
Yes, redBus was sold to Ibibo Group for $138 million.
Launched on February 14th, Valentine’s Day, in the year 2005 by Steve Chen, Chad Hurley, and Jawed Karim as an online video-sharing and social media platform, YouTube’s impact on society has been unprecedented. In the last decade and a half of its existence, YouTube has influenced popular culture, and internet trends and has created multimillionaire celebrities.
In October 2006, YouTube was bought by Google. Since then, YouTube has grown to become the second most visited website after Google Search, with more than 2.6 billion monthly users, collectively watching more than one billion hours of videos each day.
With Google’s guidance and expertise, YouTube expanded its revenue-generating model from advertising alone to offering paid content such as movies and exclusive material produced by YouTube. It also offers YouTube Premium, a paid subscription service that allows for content watching without intervening advertisements. YouTube also approved of creators participating in Google’s AdSense program, which is aimed at generating revenue for both parties.
Since 2006 and Google’s takeover of YouTube, it has expanded into mobile apps, network television and the ability to link with other platforms. YouTube’s video content now consists of music, short clips, news, short films, feature films, documentaries, audio recordings, movie trailers and teasers, vlogs, live streams and many more. Apart from individual content, YouTube also contains content generated from collaborations between YouTubers and Corporate sponsors. Large established media corporations like Disney, Paramount and Warner Bros. Discovery have also created and expanded their corporate YouTube channels in an effort to reach to a wider audience.
Forecast of the Number of YouTube Users in India (2017-2025)
A report published by Oxford Economics stated that Indian YouTubers have contributed more than INR 6,800 crores to the country’s economy, supporting 6,83,900 jobs in the year 2020. 90% of small and medium businesses reported that YouTube’s market penetration helped grow their client base while also contributing to employee performance due to ease of information access. As per a 2021 report, the number of YouTube channels that enjoy more than 1 lakh subscribers is approximately 40,000—a 45% increase from the year 2020. The report also states that as of June 2021, there are more than 4,000 channels on YouTube that have over 10 lakh subscribers – an increase of over 50% from 2020.
Susan Wojcicki, YouTube’s CEO has said that India is the video streaming service’s largest and fastest-growing audience. “India is now both our biggest audience and one of our fastest growing audiences in the world. YouTube today has become the first stop for users to consume content, whether they’re looking for entertainment or information. It is this incredible variety of content combined with the growing reach that makes YouTube a perfect platform for brands to drive personalised engagement,” she said in an interview. During the same interview, she also shared that YouTube’s mobile consumption was at an all-time high of 85%, 60% of which was coming from the six largest metropolitan cities of India. Mark Patterson, CEO of GroupM Asia Pacific had referred to YouTube as a secret weapon in every Indian marketer’s arsenal.
Most Frequently Watched YouTube Video Formats in India
The primary reason for this has been the increase in Content Creators. In 2014, YouTube in India had only 16 content creators with 10 lakh subscribers. In less than a decade, that number has grown exponentially to reveal an average of 2 content creators who cross 10 lakh subscribers and more than 2,500 content creators who cross the 1,000 subscriber milestone every day. Then there are Influencers, Breakout Entertainers, Creative Entrepreneurs and Utility YouTubers who are substantial contributors to this new growing economy.
Rise of the Indian Content Creators
Content creators unanimously agree that the growth revolution witnessed by YouTube in India over the last few years has been triggered by Jio, which made the mobile internet extremely cost-effective.
“A lot of this growth is coming from local, native Indian languages across genres. While genres like comedy, food, health and beauty continue to rise, we are seeing tremendous growth in uniquely Indian content like village food, farming, etc.,” said Satya Raghavan, Director, YouTube Content Partnerships, India.
95% of users on YouTube in India are consuming content in local languages. By launching YouTube Space in Mumbai and Delhi, YouTube has given creators access to production equipment and themed sets to create and produce original content for their YouTube channels.
The Influencers
Influencers are young and speak to the millennial audience. They create videos on everyday relatable things, usually in Hindi, and post an average of 12–15 videos a month. They enjoy a large fan following from a gender-balanced and geographically diverse audience. These are creators who collaborate with brands and engage in product or service promotions due to their wide reach. They record high earnings due to these collaborations and even the resulting sales. They also earn handsomely from YouTube.
The Breakout Entertainers
The advent of breakout entertainers on YouTube saw exponential growth in subscribers and viewership, for YouTube. These are single performers of stand-up comedy, dance, and other various forms of entertainment. Examples of Indian breakout entertainers are Bhuvan Bam and his channel BB ki Vines and Prajakta Koli known as ‘MostlySane’.
The Creative Entrepreneurs
These are creators who, regardless of their gender, enjoy a subscription of at least 10,000 users and other niche creators with lesser subscribers who generate funds from other sources through their YouTube videos. They also permanently employ other people to support their activities on YouTube.
The Utility YouTubers
YouTube has revealed that a most remarkable trend has emerged concerning utility and DIY videos. 71% of their online Indian viewers first watch a YouTube video to learn something. This reveals that YouTube is quickly becoming India’s ‘go-to’ place to learn a new skill.
Says Ajay Vidyasagar, Regional Director, APAC, YouTube Partnerships – “The creator economy in the country has the potential to emerge as a soft-power impacting economic growth, job creation, and even cultural influence. As our creators and artists build the next generation of media companies that are connecting with a global audience, their impact on the economy’s overall success will only continue to accelerate.”
Conclusion
Satya Raghavan said, “Over the years, we have invested heavily in growing and nurturing the creator community in India and are excited to see how Indian YouTube stars now go global.” To sum it up, the Indian online video market is all set to cross USD 5 billion by 2023 and YouTube is all set to occupy a large chunk of it.
FAQs
When did YouTube start?
YouTube was launched on February 14th, 2005, by Steve Chen, Chad Hurley, and Jawed Karim as an online video-sharing and social media platform.
Is YouTube really growing in India?
YouTube’s user base in India was recorded to be around 459.23 million users in 2021, and this number is expected to reach 833.03 million users by the year 2025, as per Statista.
What is pushing YouTube’s growth in India?
The following are the prominent reasons for YouTube’s growth in India are:
A layoff is an involuntary separation from work through no fault of the employees. It is initiated by the employer for economic or business reasons. The global break-out of the Covid-19 pandemic spelt a disaster for the economy as 2020 saw severe lockdown restrictions for more than half the year.
Hence, unfortunately, it came as no surprise when companies – startups as well as large corporations – laid off staff in a bid to save their business operations from folding. The grim economic scenario of that year saw as many as 12,951 startup employees lose their jobs in India.
Why Layoffs in Google, Apple, Microsoft, and Twitter Could Be Good for India?
Layoff Statistics
Number of Employees Laid Off by Indian Startups as of June 2022
Global statistics reveal that since April 1, 2022, more than 43,000 employees from 342 startups and tech companies have been laid off worldwide out of which 13% are from India. Employees of big tech companies like Microsoft and Meta have also not been insulated against job loss.
Since the beginning of the pandemic, India has seen more than 25,000 employees lose their jobs and more than 11,500 employees have been fired this year. This unfortunate scenario has been dominated by ed-tech platforms like Unacademy which has laid off 1,150 employees, BYJU’S which has laid off 550 employees, and Vedantu, which has laid off 624 employees. In fact, two ed-tech companies, Udayy and Lido Learning, have closed their doors completely.
Among other sectors, ride-hailing platform, Ola laid off close to 500 employees, MFine, the healthcare startup laid off 600 employees, and pre-owned cars platform Cars24 laid off 600 employees. Other Indian startups and unicorns that have laid off employees are Meesho, MPL, Innovaccer, LEAD, Trell and Blinkit (now owned by Zomato).
Reasons for the Layoffs in Startups
Reasons for the Layoffs in Startups
The year of 2022 has been rocky for the public and private sector equity market. Stock markets across the world reacted negatively and plummeted due to the global sell-off pressure. This impacted the new age tech stock as listed startups struggled. This was followed by the fall in the private markets as well.
India is the third largest startup ecosystem in the world in terms of unicorn companies created. 2021 was the year when the startups experienced soaring valuations which slowly dropped and began experiencing a cash crunch this year as investors became wary of higher startup valuations.
This led to a funding crunch and by the second quarter of 2022 Indian startups were able to raise only USD 6.83 billion. This was down by 42% from USD 11.83 billion which was raised in the first quarter of 2022.
By July 2022, Indian startup funding had reached its lowest in over 17 months as the total startup funding value stood at only USD 1.16 billion, further dropping to USD 1.1 billion in August 2022. Investors took on the role of advisors to startups, giving instructions on survival techniques. There were various reasons that led to startups laying off their employees in quick succession.
Cost Reduction
As funding resources dried up, startups found it difficult to sustain existing business operations, much less expand. Compounding this was the slow market that was affecting sales figures, impacting the company’s profits.
Staff Redundancy
Companies underwent modifications, often merging internal functions or even shrinking business operations. This led to positions being scrapped, leading to staffing redundancies.
Relocation
Many companies either shifted business operations areas or even shut down some business locations. This led to massive employee layoffs, affecting the economy of the community.
Mergers and Buyouts
Many startups, which showed promise in terms of their product portfolio, were merged with larger corporations or were outright bought. This also led to employee layoffs as new management had their own plans and goals.
As bleak as the scenario has been in the last seven to eight months regarding layoffs and funding, the overall numbers are now beginning to rise. As per India’s largest human resource firm, TeamLease, Indian corporates have seen a 7% increase in their intention to hire. This number is estimated to reach as high as 70% in the coming few months as per their Employment Outlook Report for the period July-September 2022.
This upward trend is driven by the various initiatives announced by the government which are aiming at bringing the private sector back to its pre-pandemic levels. The market, post-pandemic, is driven by automation. Hence, it stands to reason that employees acquire the latest industry-specific knowledge and technologies.
As per Shantanu Rooj, CEO TeamLease – “Businesses are looking for digitally conversant, highly adaptive and multi-skilled people who can be moulded into any kind of role. Employees will need to develop not only adjacent skills but also diametrically opposite skills – combinations like technology, and creative, technology and psychology is becoming commonplace.”
Conclusion
In times of financial crisis, many companies take the easy road of layoffs, citing reasons of cost-cutting, staff reduction, mergers, buyouts, etc. This move is disruptive to individual lives. However, such times are cyclic in nature and beyond individual control. As the Indian economy rises and the situation gets better, so will the employment scenario.
FAQs
What is a layoff?
In simple terms, a layoff refers to the termination of employment for reasons other than the employee’s performance. It is mainly initiated by the employer for economic or business reasons.
What are the reasons for layoffs in startups?
The following are some of the major reasons for layoffs in startups:
Cost Reduction
Staff Redundancy
Relocation
Mergers and Buyouts
How many employees have been laid off by Indian startups?
Since the beginning of the pandemic, India has seen more than 25,000 employees lose their jobs and more than 11,500 employees have been fired this year (2022).
Gorish Dua
