StartupTalky

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  • How Entrepreneurs Market to Audience in Tier 2 & Tier 3 Cities – A Case Study

    A wise man once said – ‘Good Marketing makes the company look smart, whereas Great Marketing makes the customers feel smart’.

    Yes, the customers are definitely going smarter by the day, and all of this is not just led by the technological advancements and innovations that we are seeing globally, today’s industries, entrepreneurs and marketers also play a significant hand in it.

    One of the best examples is India itself, which is the next big thing in terms of startups and entrepreneurs, who are growing each day, and that too with the aim of gearing the country ahead in the global canvas.

    Entrepreneurship in India today is no longer a myth. According to the Global Entrepreneurship Monitor (GEM) India Report (21-22) entrepreneurship in India has noticeably expanded in the past few years. The Total Entrepreneurial Activity rate, which is the percentage of the adults who are starting up with or running a new business has increased from 5.3% in 2020 to 14.4% in 2021.

    The Growing Penetration in Tier 2 and Tier 3 Markets!
    Why are the Startups and Entrepreneurs choosing Tier 2 and Tier 3 Markets of India?
    Advantages of Tier 2 and Tier 3 Cities with Growing Startups and Entrepreneurs’ Focus on Them:

    Amit Nigam – COO & Executive Director, BANKIT
    Shalabh Upadhyay – Founder & CEO, NEWJ (New Emerging World of Journalism)
    Sanjay Tiwari – Co-founder, 21CC Education
    Sudha Anand – Founder, Swaas
    Krishna Murthy – Founder of Teach My Lesson
    Shivram Choudhary – Founder, Codevidhya
    Amit Agarwal – Founder & CEO, OckyPocky
    Raj N – Founder, Zaggle
    Tanul Mishra – CEO, Afthonia Lab
    Mahadev Srivatsa – VP of Marketing & Brand Strategy, Practically

    The Growing Penetration in Tier 2 and Tier 3 Markets!

    Though the Tier 1 cities of India have always been the regions to pilot for the entrepreneurs and startup founders from across the world, the entrepreneurs of India are not simply satisfied with the penetration in the first-class cities of the country. They are focusing largely on Tier 2, Tier 3 cities, and beyond.

    As per the recent census, India has registered a total of 4000+ towns, and only 8 cities among them are classified as Tier 1. So, it can easily be realised that a considerable section of the Indian population resides in Tier 2, Tier 3 cities and more.

    The IT industry was one of the first to realise the potential of Tier 2 and Tier 3 cities in India. This happened when they found that the Tier 1 cities have reached a saturation point. The startups of India have largely caught up with the changing trends. Besides, being geared up with the new-age Government of India schemes like Digital India, Startup India initiatives, and more, the Indian government has also joined forces with the status and entrepreneurs of today to gift India a golden future that the whole of India can enjoy!

    20% of Indian startups belonged to Tier 2 and Tier 3 cities of India in 2017
    20% of Indian startups belonged to Tier 2 and Tier 3 cities of India in 2017 

    Only 20% of the startups came from the tier 2 and tier 3 cities of India when reported in 2017. This was a growth from 16% of the startups of India, which came from the tier 2 and tier 3 cities of India. These numbers rapidly rose up to become 50%, as per April 2022 reports.  

    The penetration of the Tier 2 and Tier 3 markets today is on a rise holding the hands of the unicorn startups of India and all other budding startups and promising ideators of the country.

    Research conducted in 2019 pointed out that out of over 16,000 startups registered in India then, nearly half of them have their business centres in smaller Indian cities.

    Why are the Startups and Entrepreneurs choosing Tier 2 and Tier 3 Markets of India?

    Numerous industries and startup founders are looking to penetrate the Tier 2 and Tier 3 markets of India because of more than one reason. Some prominent ones are:

    • Growing competition in the Tier 1 cities
    • Lack of employment in Tier 2 and Tier 3 cities
    • Gaining more audiences/customers in these cities
    • Improving the Tier 2 and Tier 3 cities
    • Expand their businesses
    • Affordability in Tier 2 and Tier 3 cities
    • Support of the Indian government to start up in these cities  

    The growth of startups and startup initiatives in these smaller towns in India are not only proving to be effective for the startup founders and entrepreneurs. The Tier 2 and Tier 3 cities are also reaping significant benefits due to the advancements taking place there.

    Advantages of Tier 2 and Tier 3 Cities with Growing Startups and Entrepreneurs’ Focus on Them:

    Some of the major benefits that the Tier 2 and Tier cities of India are enjoying with the improvement of industries and markets for startups and other companies in India are:

    • Upliftment of the standards of living in Tier 2 and Tier 3 cities
    • More income to the people living there
    • Access to quality goods and services
    • Improvement of facilities
    • A reduced movement to the Tier 1 cities
    • A reduced dependency on imports

    It ultimately boils down to the marketers and entrepreneurs of the country, who would actually be there and advance the growth of the industries in Tier 2 and Tier 3 markets of India.

    Here are some of the glimpses of some major companies that includes the Indian unicorns, who have actually proved that the Tier 2, Tier 3 and Tier 4 cities are marketable enough in these modern times:

    DailyHunt

    The business model of DailyHunt largely banks on the sharing of vernacular language content, a majority of which is spoken in tier 2, tier 3 cities, and beyond in India. So, though Dailyhunt is headquartered in a Tier 1 city, Bengaluru, the company focused on the other cities right from the start. Besides, its acquisition of companies like LocalPlay, a hyperlocal platform for video and news content, is also in line with its objective of boosting its hyperlocal presence in Tier 2, Tier 3 and Tier 4 geographies of India along with cementing its present position as a leading local language content discovery platform.

    Moj

    Owned by Mohall Tech and headquartered in Bengaluru, Moj is an Indian video-sharing social networking platform that supports 15+ languages. Much like Dailyhunt, Moj’s business model also revolved around video content sharing in vernacular languages, which itself targetted the cities beyond the Tier 1 cities of India. Furthermore, the banning of the viral Chinese video sharing platform TikTok on June 29, 2020, also played an angel’s hand is lifting the platform up to help India emerge as an Aatmanirbhar country.

    Did you know the downloads of the Moj app crossed 50K in Google Play Store in just 2 days?

    Paytm

    The Vijay Shekhar Sharma-founded fintech company that focuses on UPI payments and other services including banking, eCommerce services and more, is not only known to the Tier 1 cities but is famous beyond them as well.

    Speaking on its penetration in tier 2 and 3 cities of India, Paytm revealed that around 50% of its userbase is from the smaller cities of India – Panipat, Rohtak, Pondicherry, Surat, Ranchi and more. This remarkable feedback that Paytm has pulled up is largely attributable to its multilingual app and the growing demand for easy UPI transactions, which are conveniently done via our phones, irrespective of their types.

    Flipkart

    Walmart-backed Flipkart is a leading ecommerce company, which not only cares for their customers in the Tier 1 cities of India. When last reported on June 17, 2021, Flipkart revealed that over 52% of its customers come from the tier II and beyond cities. This increase in penetration in Tier II, Tier III cities, and beyond has been a combined result of the promising opportunities that these cities have and the zeal to expand the reach of the company.

    Cosmetics and Beauty Products Companies like Sugar Cosmetics, Nykaa and more

    Gone are the days when cosmetics and beauty products and services were restricted to the Tier 1 cities of India. Beauty regimes are now a significant part of the daily routine and vocabulary of millennial women, regardless of where they hail from. With the rapid penetration of smartphones in the smaller cities today, the women in tier 2, tier 3, tier 4 cities, and beyond are not behind even by a step from their Tier 1 counterparts.

    Reports revealed that over 15% of the occasional cosmetic users who belong to the secondary and tertiary cities have tried their first face primers, foundations, BB creams, and more in the past 2-3 years. The online beauty marketplaces like Sugar Cosmetics, Nykaa, and more have a large hand in it though, who have actually made shopping for cosmetics and beauty products, availing of beauty services, and more, easier by bringing them online. The Covid-19 pandemic breakout, along with bringing the great resignation, major recessions, economic breakdowns, layoffs, and more such calamities, has also helped industries and individuals grow in many ways. One of such benevolent effects of the coronavirus pandemic is that it ushered in a new period of work from home where the countries and the working professionals living in them learned about the potential of the internet and were more close to the things happening online. An inclination to purchase cosmetic products also increased this way.

    To know how businesses market to their audience in Tier 2 and Tier 3 cities, StartupTalky reached out to entrepreneurs from diverse fields. Here’s what we got to know about how they market to people in Tier 2 and Tier 3 cities:

    Amit Nigam – COO & Executive Director, BANKIT

    Amit Nigam – COO & Executive Director, BANKIT

    BANKIT tries to reach the tier 2 and tier 3 segment of the audience through retailers who are already familiar with the customer and can reach them more effectively. This helps in overcoming the most common challenge that companies face while reaching consumers in Tier 2/3 areas: Gaining their trust.

    Difference between Tier 1, Tier 2 and Tier 3 audiences – By Entrepreneurs
    Segmentation, Targeting, and Positioning – the STP approach is a model used bybusinesses to cater their customer segments in a more sophisticated way. Basedon the the nature of organisation, objectives, industry, market scenarios etc.,the STP approach differs. The overall market is catered by the

    StartupTalkyJeenal Jain

    Shalabh Upadhyay – Founder & CEO, NEWJ (New Emerging World of Journalism)

    Shalabh Upadhyay – Founder & CEO, NEWJ

    The future of online media will be defined by those who create content, produce stories in the language which the masses understand. And that’s what we precisely do at NEWJ. Within a short period of two years since inception, we have grown our regional network base to 12 languages (including English and Hindi). Our in-house data capabilities help us build predictive models on the content consumption patterns across social media. Our state-of-the-art tech architecture collates user consumption & computer vision data to derive insights and patterns on how a content piece will perform. This enables us to connect with and market our content effectively.

    Entrepreneurs Face these Problems while operating in Tier 2 & Tier 3 Cities
    Wondering what are Tier 2 and Tier 3 cities? Based on population density, Indiancities are classified as X (tier 1), Y (tier 2) and Z (tier 3) categories. WhereTier 1 contains metropolitan cities like Delhi, Bangalore, Mumbai & so on, Tier2 has cities like Gurgaon, Vellore, Kochi etc., The remain

    StartupTalkyJeenal Jain

    Sanjay Tiwari – Co-founder, 21CC Education

    Sanjay Tiwari – Co-founder, 21CC Education

    These cities are seeing increasing attention and fast infrastructural growth. You now have state-of-the-art warehouses coming up on what used to be farmland. When we create content for these audiences, we use our expertise to explain the process, i.e., what has to be done, along with why it has to be done-why keeping something chilled matters or why a bar code matters, why it’s important to be able to trace something. So you have to explain much more of the context.

    Then there is language to consider that requires a constant feedback loop and intelligent design to ensure that the platform’s UI is flawless and simple without being simplistic.

    Building presence in these markets requires a different approach as growth in awareness may be slow. As mentioned above we’re doing that via distribution partners which may include certain tech companies soon. CSR initiatives on behalf of certain trusted names in the logistics space have also allowed for our outreach to increase in these locations.

    Sudha Anand – Founder, Swaas

    Market to tier 1 , tier 2, tier 3 audiences
    Sudha Anand – Founder, Swaas

    Social media like Facebook and Instagram are the best modes to reach
    to tier 2 & 3 customers, said Sudha Anand, Founder of Swaas.

    13 Ways to Market Your E-Commerce Website in 2021
    Having organized an ecommerce website is a job half done. The rest of the job isproper marketing of the website to gain more customers as more and moreindividuals become aware of the website, the sales increase and therebyestablish the virtual presence of the ecommerce initiative. As the word of

    StartupTalkyYash Gupta

    Krishna Murthy – Founder of Teach My Lesson

    Krishna Murthy – Founder of Teach My Lesson

    Here are some of the points highlighted by the Founder of Teach My Lesson:

    • Clearly articulate the value offered in plain terms
    • Price solutions aptly. Price is often the proxy for quality, and solutions priced considerably lower than the benchmark are seen as not trust worthy
    • Leverage locally accomplished individuals to endorse the brand and build credibility. Related to this, use local micro-influencers and not mega influencers.
    • Make customer ratings and review visible and vocal; everyone relies on reviews
    • Deliver on the promise – the customer journey need an enjoyable yet straightforward. Under promising and overdelivering is better than vice versa
    • India is progressing, and customer expectations are high across tiers, ‘Chalta hai’ ab nahi ‘Chalta hai’

    Top Free Digital Marketing Tools for Every Entrepreneur
    Digital Marketing is one of the fastest-growing industries in India. It isgrowing at a rate of 15-20% yearly in India. Digital Marketing jobs haveflourished in the country in recent years. There are a lot of freelancers andDigital Marketing agencies coming up in the country. Digital Marketing too

    StartupTalkyAlan Joseph

    Shivram Choudhary – Founder, Codevidhya

    Shivram Choudhary – Founder, Codevidhya

    Thankfully, with the advancement of technology, Tier 2 and Tier 3 cities have proper access to the Internet today. With the campaigns that we run and the marketing we perform, it is easier to spread the word to our target audience regardless of their City-tiers.

    Amit Agarwal – Founder & CEO, OckyPocky

    Amit Agarwal – Founder & CEO, OckyPocky

    With regards to the marketing approach in Tier 2 and Tier 3 cities, building local partnerships helps majorly to gain trust but we also focus on digital marketing and content marketing with a vernacular approach to find paying audience.

    Raj N – Founder, Zaggle

    Raj N - Founder, Zaggle
    Raj N – Founder, Zaggle

    Brands need to innovate exclusively for rural consumers because the values and sensitivities of the rural audiences are a stark contrast to that of their urban counterparts.

    Tanul Mishra – CEO, Afthonia Lab

    Tanul Mishra – CEO, Afthonia Lab

    The pandemic has resulted in a lot of changes on the ground. One of the most prominent of these is reverse migration and increased online buying in Tier 2 and 3 cities. On one hand, several kirana stores across cities and towns pivoted online, while on the other, many young professionals and graduates moved back to their towns driving rural consumption and demand. Established players like Flipkart and Amazon, through Samarth and Flipkart Wholesale and Prione respectively, are betting heavily on the rural entrepreneurship story.

    The tier III environment is immensely different from tier I and II and therefore, communication to potential customers requires a specialized and integrated approach. Indian market is very diverse and demands regional connectivity. OTT (Over the top) players like Netflix, Amazon Prime Video, ZEE5, etc., are expected to spend Rs. 150 crore this year. We can see the push that is given by global companies towards local languages to enter the market of Bharat. Similarly, fintech industry is also expected to provide local language support and focus on user interface which is seamless and intuitive to expand its user base.

    Mahadev Srivatsa – VP of Marketing & Brand Strategy, Practically

    Mahadev Srivatsa – VP of Marketing & Brand Strategy, Practically

    Marketing is always audience-led and the strategy has to involve a mix of the best mediums through which one can reach relevant audiences. Considering the emphasis that Indians place on education, keeping respective market nuances aside, the core TG for Practically i.e parents of kids aged 11 to 17 and the kids themselves, exhibit the same need across markets, and that is ‘a need for innovative learning’. To reach out to them, in the COVID era, the most impactful mediums of marketing have been TV and Digital. In pre covid era, BTL activations in such markets have acted as a crucial support to the main campaign. Radio & Print (regional) can also be looked at to effectively drive awareness among these audiences & build credibility. The key is to understand the touch points of your product, study customer journey and effectively strategize marketing for this segment. The correct choice of medium matters the most.

    Conclusion

    From leveraging locally accomplished individuals to personalizing linguistic features, entrepreneurs are leaping well above their grounds to rightly market in Tier 2 and Tier 3 cities. Hope their views gave you an insight into how to market in Tier 2 and Tier 3 cities.

    FAQs

    What are tier 2 and tier 3 cities in India?

    The Tier 1, Tier 2, Tier 3 cities and beyond are simply the classifications of the cities of the country on the basis of development. Hence, the most developed cities in India are the Tier 1 cities, then comes the Tier 2 cities, and so on.

    What are some of the business ideas in tier 2 and tier 3 cities?

    The tier 2 and tier 3 cities are growing with the increased absorption of the internet and the modern initiatives and schemes by the Government of India to improve the cities beyond the first-class cities in India. Here are some of the most promising business ideas for growth in tier 2, tier 3, and more cities of India:

    • Financial firm
    • Advertising company
    • Beauty salon
    • Grocery store
    • Consulting company
    • Real estate business
    • Food delivery company
    • Farms
    • Nurseries
    • Manufacturing units
    • Clothes business
    • Consultation company
    • Logistics company

    What are some of the Indian companies that are focusing on the Tier 2 and Tier 3 cities of India?

    Most of the companies today are focusing on the Tier 2, Tier 3 cities and beyond in India. Some of the most prominent companies that are encouraging customers from Tier 2 and tier 3 cities are Paytm, Moj, Flipkart, Dailyhunt, Nykaa, Sugar Cosmetics, and more.

    Which industries are foraying into tier 2 and tier 3 cities in India?

    There has been an increasing foray into the tier 2 and tier cities in India in the past few years. Some of the major industries that have already entered the tier 2, tier 3, and tier 4 markets in India are:

    • Gaming
    • Fintech
    • Real estate
    • UPI
    • Edtech
    • Entertainment
    • News
    • Fashion
    • Food delivery
    • Logistics
    • Crypto

    How many startups have their reach to the cities beyond the tier 1 cities of India?

    As per the recent survey results, out of all the startups thriving in the country at present, around 50% of them have their reach, their business centres, in the tier 2 cities and beyond in India.

  • Top 7 Countries That Faced Hyperinflation

    You can hardly predict some cancers before it grabs the whole body to an extreme stage. Basically, hyperinflation is a wolf under the sheepskin. The news, the experts, the cunning industry, and even the government may hide the truth to protect the aftermath. Many companies employ a widespread technique to convince the consumers that costs are stable, even though you’re paying more for less weight with the same packaging. Hyperinflation is a negative catalyst that may act slowly but steadily to summate long-term accelerating inflation. So, we will go through 7 case studies of hyperinflation-affected countries of all stages (growth, maturity, and decline) in the economic graph.

    What is Hyperinflation?
    Countries that Faced Hyperinflation
    Russia
    Iran
    Turkey
    Lebanon
    Sudan
    Zimbabwe
    Venezuela

    What is Hyperinflation?

    Hyperinflation is a terrible stage of uncontrolled inflation with a sustainable panic of supply shortage despite paying more. A country has to face the problem when it has enormous national debt, declining foreign reserves, and long-term political uncertainty. In external events, such as war, and lack of global confidence in the economy, worldwide pandemics push the problem to a negative slope. A government will fund its reaction to the crisis by taking on debt, but it can’t afford services and releasing additional money in the market to make up the difference. Twitter co-founder Jack Dorsey’s tweet at the end of October 2021 fuelled the panic of hyperinflation across the US amid the tough time of the pandemic.

    Global Inflation Rate from 2016 to 2021
    Global Inflation Rate from 2016 to 2021

    Countries that Faced Hyperinflation

    Hyperinflation is a dreadful state of condition for any country. The following are some prominent countries that faced hyperinflation and the reasons behind them:

    Russia

    The world’s second-largest arms and crude oil exporter, Russia is heading towards significant inflation, possibly a burst into hyperinflation. The economic data coming out during the Ukraine invasion is not very healthy. Apart from the war, the Kremlin is fighting with an internal three-point trap triangle of (hyper) inflation-pandemic sanctions. As per reports, the Russian regulatory bank called CBR raised the interest rate by 20% to save the ruble from the western red eye of sanctions. As a result, the ruble tanked at a record low of 25% this March.

    Amid fear of losing oil and arms export hegemony, the country faces isolation from the West and the US. Investors are trying to get into a safe escape. Many billionaires shut down their business operations as a protest. The economy is being drained of cash. One month down the line of conflict, Moscow enrolled with 3.5 lakh Ukrainian refugee shelter houses, and inflation zoomed up 15.66% this March-end, expecting a 20% fear of inflation in this financial year as per a central bank survey. SWIFT system and payment card firms are ceasing operation in Russia, which is a significant setback for the country. The CBR is struggling to control capital outflow( movement of an asset out of a nation), escalated by the record-long shut down of the Moscow exchange.

    Moscow’s financial advisors have shown public confidence to revive their internal banks with additional reformation. It will take some time to confirm the post-invasion period Russia copes with the odd or cross the red inflation line to join the hyperinflation club. Though, as per experts, it has intense symptoms of hyperinflation.

    Russia's Ukraine Invasion
    Russia’s Ukraine Invasion

    Iran

    In March 2022, the Statistical Centre of Iran (SCI) reported an annual inflation rate of 40.2%. The Islamic Republic owned 10 % of the world’s oil, 15-17% of its gas reserves, and 7% of its minerals. So then, why is Iran also sinking towards hyperinflation? Literally, Iran has everything for cooking except the cook!

    Weak diplomacy also pushed EU and US sanctions on energy, tech, financial service, and foreign trade. Iran’s president asked its central bank to stop releasing data as it is higher than the SCI tally. Diplomatic gaps weaken the trade deficit.

    The country is suffering from basic needs like water. Protesters rioted in Tehran’s streets, resulting in deaths and arrests. The country is accused of state-sponsored disinformation, a dangerous trend to hide the disease rather than treat it.

    A silver lining of hope is raised after the US Congress gets its new president from the democratic party in January 2021. Iran is trying to get the Indian market oil with a rial-rupee deal. The US-Tehran has shown some positive signals of melting down relations with the nuclear deal ahead of the Russia-Ukraine war.

    Turkey

    Ankara crossed the 50% inflation red line and entered the hyperinflation zone with a 54% index as of March 2022. Despite president Recep Erdogan’s battle with the recession, the Turkish people have not achieved a new normal since 2018. His equation to fight inflation is lowering the interest rate. Unfortunately, his flawed policy slipped the currency lira to a loss in the last year. The uncontrolled depreciation of the lira has created a hugely detrimental impact on the economy. There has been a certain increase in the exports, but the following adverse consequences are more than the actual gain:

    • The significant drop in purchasing power is the result of devalued currency; the salary class people need to pay more lira for the same or less product. Therefore, the loss of purchasing power is a severe impediment to economic growth.
    • To minimize the inflation risk, Turkish banks have stopped encouraging lending to ensure less money in the market. It has no option when they are unable to raise interest. In the long run, it has an even worse effect on increasing the country’s brain drain. Foreign currency is taking a break, and investors are rushing out of the country. This leads to job or employment problems at worst.

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    Lebanon

    The civil war inflicted on Lebanon’s lira is losing the battle and ending in triple-digit inflation of 215%  in front of the US currency. It is enough to cripple the retail, health, transport, and fuel sector investment. With 78% poverty, the country is trying to get a good deal from the IMF. But the corruption grappled the country at such a deep level that its central bank had to face inquiry and slap from the lawsuit. The United Nations confirmed that the Ponzi scheme was a major red flag behind the economic meltdown. Beirut tried to reshape its economy with tourists to the Gulf help. But in 2011, the neighbouring Syria unrest put the country in financial collapse again. In the meantime, the Hezbollah-Iran tie miffed some major gulf countries.

    The fall of money was fuelled by the central bank’s direct financing of the government’s public deficit during the civil war. As a result, money has entirely lost its essential rules and everything that made it a reliable store of value. The Govt, despite a defaulter of foreign debts trying to survive with the help of the World Bank and IMF. Another good news is, recently, the new Lebanese govt got a ‘positive outcome’ certificate from the Saudi kingdom. Hope it will improve their credit pipeline.

    Sudan

    After a military coup, riot, and political uncertainty, the East African nation is more chaotic; debt-trapped Sudan announced it would float its currency as economic conditions deteriorated. According to United Nations officials, Sudan’s food crisis is expected to drop due to the African country’s economic collapse, displacement, and ruined harvests. After the military took over the US, IMF and World Bank suspended their million-dollar aid and SDR (special drawing rights of IMF). Another setback is that the separate region of South Sudan holds 75-80% of oil production in the Upper Nile state.

    Since 2016, the country has faced a lopsided economic downturn, covid and coup pushed it on the verge of catastrophe. With the shrinking GDP of 2020 by 3.6%, the country summed up the cycle and added a 359% inflation rate. World food program data warned that about 5.8 million people suffer food shortages and malnutrition. In the current scenario, the political paralysis of Sudan is a significant issue of hyperinflation and food shortage. Moreover, it blocked the foreign fund in the African nation.

    Inflation among countries
    Inflation among countries

    Zimbabwe

    Are you fed up with hearing about hyperinflation in different countries? Here is Zimbabwe for you with a ray of hope. The government had robust growth of 838% inflation in July 2020, and now, there is a significant drop at 50% in August 2021. During this challenging time of pandemics, war, and sanctions, it is not easy to revive the economy from hyperinflation in such a short period. Chronic symptoms of hyperinflation are coming out like lower growth, hunger, a debt-driven economy, low income, jobless youth, and collapsing health sector. It was not fun when the African bread bucket turned half of the population into a beggar.

    It was a tough time for the drug-addicted, debt-ridden country when it was announced as having the highest inflation rate in 2019. With a fast depreciating currency and hyperinflation nearing 800%, most commoners watched their hard-earned money turned into a paper bunch. The country suffered 90% unemployment which coerced University graduates to sell vegetables in the market. The confused Reserve Bank of the country introduced a bond note with a 1:1  value against the dollar, but the market doubt was fainting its importance rapidly. In 2019, the Reserve Bank announced RTGS$ and banned foreign currency in domestic transactions.

    Pandemic norms encourage digital payment worldwide, and it was reshaping the economy of Zimbabwe. It pushed the RTGS to POS transactions. EFT(Electronic Funds Transfer)and the Card payment system showed robust growth in 2021. Thus, it saves money printing the ‘need’ of a hyperinflationary economy. The rural part also enjoyed financial inclusion (finance access to the poor class), and the govt can track them with the tax system. The untapped section is directly under the payment system. Online transaction access to the internet among youth generates various business ideas worldwide. Bitcoin and crypto came to the discussion table of policymakers.

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    Venezuela

    Venezuela Inflation Rate as Compared to Previous Year (by Statista)
    Venezuela Inflation Rate as Compared to Previous Year (by Statista)

    The South American Country seems to be the king of the hyperinflation kingdom without any competitors nearby. In 2018, it reported 65,374.08% inflation, which means people need to carry money in a car dicky for daily retail shopping. A bunch of cash becomes useless in the economy. In the same year, 48k teachers left the country (remember, they are not sacked) to relocate to neighbour-based countries for livelihood.

    There was a mass exodus in the middle of 2018. About 4 lakh people left the country, and it was not for armed conflict but terrible hyperinflation. Among the country’s top human resources, doctors, professors, and IT professionals were fleeing the country, leaving unfilled posts. The country faced mass blackouts, and people used candlelight or cell phones during an emergency. The country dried out of medical supplies and doctors; patients had to wait for half a year for an emergency operation.

    Critics blame policies of socialism. Experts accused the country of suffering from printing money and a fiscal deficit. Once known as the giant supplier of crude oil, the comfort of the oil zone hit back Venezuela in 2014 after oil prices fell continuously. Since 2014 the country has shown a significant drop in GDP in negative growth.

    There is a thin sign of revival in 2021; Venezuela reported a surge of the foreign reserve by $5.1 billion. The country’s central bank claimed to curb inflation by ‘only’ 686% for the same year, a great short-term relief.

    Conclusion

    Here we did not consider the crisis-hit Sri Lanka or war-torn Ukraine. Moreover, since August 2021, Afghanistan has been out of the internal statistical audit.

    Therefore, there is a high possibility that the hyperinflation club will get new members. On the other hand, controlling hyperinflation is far more difficult due to the enormous political cost of the typical solutions. In reality, one reason that can turn inflation hyperinflationary is the populist administrations, which are being trapped in a situation where they cannot make practical efforts to reduce inflation.

    It is better to control it in the inflation stage. So, the policymakers or government need to take some bold and reformative steps to prevent the money flow in the economy. It also needs diplomatic efforts, so that the countries can avoid printing $100 trillion notes like Zimbabwe.

    FAQs

    What is hyperinflation?

    Hyperinflation is extremely high and rapidly increasing inflation. It is said to have occurred in an economy when the prices rise over 50% in one month due to economic disturbances and depression.

    What causes hyperinflation?

    The main causes of hyperinflation include:

    • High National Debt
    • Price control that leads to an increased shortage
    • Economic output decline
    • Lack of faith in government

    Which countries are facing hyperinflation?

    • Venezuela
    • Sudan
    • Lebanon
    • Iran
    • Zimbabwe

    What is a healthy inflation rate?

    A healthy inflation rate is 2% which is considered good for economic growth as in this situation, people are more likely to make purchases in the present rather than wait when they expect prices to rise.

  • Business Model of Dailyhunt – Most Preferred Local News Sharing Platform in India

    The days when all the essential pieces of information from across the globe were shared by only the means of newspaper or the television screen are now the past of the present world.

    Today, the news can be shared and accepted by just using a smartphone. There are several applications made across the globe that enable the sharing of news easily and fast. One such app is named Dailyhunt.

    Dailyhunt is not something similar to other available platforms. Dailyhunt is one of the major platforms used for the sharing of news across the nation with many Indian languages accepted.

    Introduced in the year 2010, Dailyhunt is a mobile-based news application and news aggregator platform giving a common point to all Indians. It is recorded to gain high popularity day by day mainly because of the multiple local languages supported by the platform. To know more about Dailyhunt’s business model, continue to read below.

    Dailyhunt – About
    Dailyhunt – Startup Story
    Dailyhunt – Business Model
    What Is Unique About the Business Model of Dailyhunt?
    Dailyhunt – Target Audience
    Dailyhunt – Competitors
    How Does Dailyhunt Make Money?

    Dailyhunt – About

    Dailyhunt is a news aggregator and Indian content application that has its headquarters located in Bangalore, India. The company was formerly known as Newshunt and was launched in the year 2010. Dailyhunt provides news articles in local languages i.e., around 14 languages from different content providers.

    Dailyhunt was previously named as Newshunt
    Dailyhunt was previously named Newshunt

    The mission of the company is “the Indic platform empowering a billion Indians to discover, consume and socialize with content that informs, enriches and entertains”.

    The mobile application was produced by two ex-employees of Nokia and was then acquired by the founder of Verse Innovations. Later on, the mobile-based news-sharing service was renamed Dailyhunt during the peak of its popularity.

    Dailyhunt is one of its kind of platforms that allows its users to share information in their own desired language rather than depending on any one language.

    From the time of its introduction to now, Dailyhunt has seen great popularity in its name. Currently, Dailyhunt enjoys more than 350 million users monthly with its revenue around $127 million in 2022.

    Currently, the platform is managed by Virendra Gupta who serves as the CEO of the firm, and Umang Bedi as the President of the platform.

    Dailyhunt – Startup Story

    Virendra Gupta - Founder and CEO of Dailyhunt
    Virendra Gupta – Founder and CEO of Dailyhunt

    The most favoured local news platform Dailyhunt was started by two ex-Nokia employees in the year 2009. Soon, it was taken over by Virendra Gupta, the founder of Verse. The Verse Innovation was a value-added company. Verse innovation currently is a local language technology company and is counted as the parent organization of Dailyhunt.

    The founder of Verse Innovation started his firm in the year 2007. But even after the success of the newly launched technology, something was missing in his innovation.

    He believed that his product will not maintain its shine in the market for a longer period. At such moment, previously known as Newshunt came to his notice. Virendra Gupta purchased the Newshunt in 2011 and it was renamed Dailyhunt in 2015.

    The vision seen by Virendra Gupta on Dailyhunt was to create a platform that provides content in vernacular languages. He believed that 70% of India consists of non-English speakers and that was the target audience for Dailyhunt. Hence, after taking over the Newshunt and with the introduction of better facilities, Dailyhunt kept on becoming a larger platform and giving tough competition to non-Indian platforms.

    Dailyhunt – Business Model

    Dailyhunt Group has different types of offerings which are mainly divided into 3 broad categories. One of the key features of this application is that they provide content in regional languages.

    The company acts as a news aggregator through Dailyhunt, they also have another entity called Greynium Technologies that house news and various other platforms that provide content such as CareerIndia, OneIndia, Boldsky.com, Gizbot, etc. The company has also launched a platform named Josh which is similar to TikTok as a short video-sharing platform.

    As mentioned earlier the important feature of all the application are it provides content in local languages. Dailyhunt provides content in 14 different languages, whereas Josh provides content in 12 different languages and the other content platforms provide content in 9 different languages.

    The Dailyhunt group has a huge base of content providers which include 100K content partners, news content published in 14 different languages by content creators producing 250K news every day.

    What Is Unique About the Business Model of Dailyhunt?

    Dailyhunt’s business model is very unique compared to other content providers as mentioned earlier all the platforms of Dailyhunt provide various content in local languages. The English content providers will have to directly compete with already well-established global creators such as Instagram, Facebook, Twitter, etc.

    Whereas Dailyhunt concentrates on the Indian market by providing content in local languages. The application has also been able to secure a well-established position in the market.

    Dailyhunt – Target Audience

    Dailyhunt focuses mainly on the millennial group in the country where the age varies from 25-34 years. However, the company focuses on providing content in regional local languages through which it targets all the major populations in India including the people from rural areas as well.

    Global Ranking Chart of Dailyhunt
    Global Ranking Chart of Dailyhunt 

    Dailyhunt – Competitors

    Even though Dailyhunt had stepped foot into the market at an early stage, they have many competitors in the news industry. With the growth of digital content, a lot of applications are racing to reach the number one position in the news aggregator Industry.

    The competitors of Dailyhunt are Feedly, Google News, Flipboard, Inshorts, etc
    The competitors of Dailyhunt are Feedly, Google News, Flipboard, Inshorts, etc

    There is no direct competition for Dailyhunt as they have content in various languages. One of the major competitors as a news aggregator for Dailyhunt is Google News.

    Other than Google News some of the other competitors of Dailyhunt include Flipboard, Inshorts, Briefing, Feedly, etc.

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    How Does Dailyhunt Make Money?

    Dailyhunt’s major source of revenue is through advertisements however, in the year FY19-20 the company was able to increase its revenue up by 100% year on year despite the pandemic. Other than this the application concentrated on raising funds and has had multiple funding rounds.

    Recently in the year 2020, Dailyhunt had become a Unicorn Startup in India. The company has received a total funding of around USD 540 million and the most recent funding was USD 207 million which was through Series H funding.

    The company also receives revenue through e-books as well as magazines. Anyone can read the news provided by Dailyhunt for free of cost but for downloading the books or magazines one will have to make a payment for it.  

    Conclusion

    Dailyhunt was one of the unique platforms that gain popularity quickly despite the risks present in the market. From the time of its start to now Dailyhunt has seen significant growth in the news aggregator market and through its unique approach to providing content in different languages, the company was able to stand out from its competitors. The above text provides basic information about Dailyhunt and its business model.

    FAQs

    How does Dailyhunt make money?

    There are multiple ways through which Dailyhunt creates revenue. One of the major sources of income for Dailyhunt is by the means of advertising. Dailyhunt earns money by selling out advertisements for different startups and services on its application.

    Who is Virendra Gupta?

    Virendra Gupta is the founder and Present CEO of the company, Dailyhunt.

    Is Dailyhunt a product-based company?

    No, Dailyhunt is not a product-based company. Instead, it can be considered a service-based company mostly used for sharing information.

    Who are the investors of Dailyhunt?

    Dailyhunt has more than one investor attached to it. Some of them are Kotak Investment Advisors, Luxor Capital Group, Baillie Gifford, Sumeru Ventures, and many others.

  • What Is Right to Repair and How It Will Impact the Smartphone Industry in India?

    Right to Repair refers to the concept of allowing end users, business users as well as consumers, of technical, electronic or automotive devices to freely repair these products in case of mechanical or technical failure.

    There are a few requirements that assume particular importance

    • The device has to be constructed and designed in a manner that allows easy repairs.
    • The original spare parts and tools (physical tools and software) that are needed for repairs should be accessible and available to end users and independent repair providers at fair market prices.
    • Repairs should not be hindered by software programming and should be possible by design.
    • The manufacturer must clearly communicate the reparability of the device.

    The eventual aim of the Right of Repair is to favour affordable repair instead of replacement. This, in turn, leads to a more sustainable economy and a substantial reduction in electronic waste.

    Who Started Right to Repair?
    Legislative Move Towards Right to Repair – Challenges Between 2000-2020
    Effects of the Right to Repair on the Smartphone Industry
    What Does the Future Hold for the Right to Repair Industry

    Who Started Right to Repair?

    The ideology of planned obsolescence and restricting independent repairs was initially adopted by Alfred P. Sloan of GM Motors in the 1920s. This approach was damaging to independent repairs as it played a psychological game with consumers and drove them towards upgrading their cars with newer models.  

    On the other side, repairs were made unattractive and expensive by pushing them into authorized service centres. The global economy was restricted making it difficult for independent repair shops to procure spare parts.

    By the late 1950s, many other companies had adopted a strategy similar to GM Motors. The first fight for the Right to Repair was brought about due to the market dominance of IBM in the computer mainframe market.

    Surprisingly, IBM was sued by the Department of Justice, the USA for undermining the second-hand market by allowing clients to only lease their products but not own them.  

    IBM’s monopolistic position was effectively brought down by the Department of Justice, USA when it successfully pursued a consent decree that forced IBM to immediately put into action a few things.

    The company has to sell all their products at a fair market that would not be a disadvantage over leasing and spin off the service division and provide parts, maintenance instructions and tools at fair market conditions to independent repair companies.

    This ensured that a second-hand product market and an after-sales service market could be created. Unfortunately, this decision was not applicable to future electronics manufacturers and was eventually abolished in 1997.  However, it was the first ever real fight for the Right to Repair.

    Legislative Move Towards Right to Repair – Challenges Between 2000-2020

    This time as well, the first proposal for Right to Repair began in the automotive industry as it came under scrutiny. It was introduced by Joe Barton and Edolphus Towns and was an effort to end the monopoly of control by manufacturers over repair information. This was resulting in a significant loss of business for independent repairs as they had to turn away car repair jobs due to lack of knowledge.

    Although this effort was foiled by the automotive industry through successful lobbying, the Right to Repair ideology took a hesitant step forward in the form of a voluntary agreement by manufacturers to provide independent repair companies with spare parts and diagnostics manual.

    Most independent repair companies still struggled to procure spare parts, this began a journey towards getting traction for the Right to Repair in the legislative branch.

    2012 saw the first Right to Repair law for the automotive sector which required automobile manufacturers to sell the same service material and diagnostics to independent repair companies, mechanics and consumers as they provided to their dealerships exclusively. Following this many more states followed the same example and the movement goes on till today, across many countries, including India.

    This law has also raised the need to be extended to all industries related to technical and electronic goods giving the consumer and independent repair companies the Right to Repair their devices instead of upgrading and buying a newer version.

    The Indian Department of Consumer Affairs has set up a committee to develop a framework for the ‘Right to Repair’ movement. This framework lays emphasis on important sectors like mobile phones, tablets, consumer durables, automobiles and farming.

    Effects of the Right to Repair on the Smartphone Industry

    Manufacturers, especially the mobile phone industry, are continuously finding new ways to lock devices. This bypasses the owner’s rights to repair. Steps like part pairing and locks on the software to prevent repairing smartphone display screens are ways that act as deterrents for independent repair companies and consumers alike. This proprietary control of manufacturers, the government feels, infringes on the consumers ‘right to choose’.

    India, fortunately, has a robust repair service sector and third-party repair mechanics. The Right to Repair, when passed will –

    • Serve as a price equaliser for repairs as the parts and diagnostics will become available for independent repairs.
    • It will increase product life decreasing e-waste generation.
    • Multinational phone manufacturers will open a self-service repair program.
    • The time frame for repairs will decrease due to an increase in the repair network.
    • It will also serve as a catalyst for employment generation.
    Estimated maintenance, repair and overhaul market size in India
    Estimated maintenance, repair and overhaul market size in India

    What Does the Future Hold for the Right to Repair Industry

    The framework of Right to Repair is being positioned in the local market to be helpful to consumers and harmonise the trade between equipment manufacturers and third-party buyers and sellers. There is no doubt that it will reduce e-waste which is a huge leap forward in sustainability and planet preservation.

    The details of when the Right to Repair rule will be implemented have not yet been revealed by the Government. But it is definitely a chance to look forward to with great enthusiasm.

    FAQs

    Is there a Right to Repair in India?

    Yes, the Government of India is planning to introduce a Right to Repair law in India.

    Which country implemented the Right to Repair Act?

    The USA was the first country to implement the Right to Repair act.

    Why is the Right to Repair important?

    Right to Repair is important because its customers choose to repair their devices from a certified authorized centre or a repair shop. It is also great as leads to a more sustainable economy and a substantial reduction in electronic waste.

  • Why Amazon Is Closing Down Its Private Label Brands?

    The American multinational technology company, Amazon, which engages in e-commerce, cloud computing, artificial intelligence, and digital streaming, has recently announced that it is reducing some of its items. The brand is cutting down the products that sell under its brand like Amazon Basics.

    This leader in the e-commerce market mentions to the Wall Street Journal, “We never seriously considered closing our private label business and we continue to invest in this area, just as our many retail competitors have done for decades and continue to do today”.

    To find more, this article highlights the reason why Amazon took such a decision to reduce selling its own private-label business.

    The Absence of Increased Margins
    Unfair Treatment of Third-Party Merchants

    The Absence of Increased Margins

    The giant e-commerce brand, Amazon started having its own brands like Pinzon, Amazon Basics, Mama Bear, Wag, Amazon elements, and more in 2009. Amazon decided to have in-house brands to boost increase margins and reduce competition, however, some of its brands are not doing well in the market for which they are reducing the items. One of its private label brand Amazon Basics is going to have less number of items to be sold.

    This change in the system that Amazon is going to adopt is due to ‘weak sales’. However, they are not going to completely shut their private-label business, they will just reduce the number of items. As per some reports, Amazon has asked its team for the past six months to chop off some of its items and not to further go for reordering.

    There are statements that Amazon finally came to this decision after Dave Clark, an ex-amazon executive made a review of how business is done by Amazon. Amazon claimed that Dave Clark made decisions that led to over-staffing at Amazon fulfillment centers and refrained from union progress.

    Unfair Treatment of Third-Party Merchants

    In 2020, the European Commission charged Amazon for using its power and data to push up its products for its benefit over other rival merchants. This was disclosed during a press conference on an anti-trust case with Amazon at the European Commission (2020) held in Brussels.

    In addition to accusations, the European Commission has also opened up an investigation to look into the matter that if Amazon gives exceptional treatment to its products and to vendors who use its delivery benefits.

    The controversy does not end here, as the Commission has also put up statements that Amazon has no right to use third-party’s activity and data to its benefit since they are its competitors.

    The dualism act by Amazon has also drawn scrutiny issues in the USA. They had been asked to defend themselves from these allegations in writing, with which they had disagreed.

    In their defense, Amazon claimed that the company has always been helpful to other merchants. The brand made several statements in its defense that they only represent 1% of the world’s retail market. Furthermore, they have also claimed the brand has supported small businesses for the past 20 years in comparison to any other retailer.

    In efforts to ease the regulatory pressure, Amazon is now reducing the sale of its products. Amazon is doing all of this to resolve its two anti-trust cases issued by the European Commission.

    The other case which was opened by the EU is to investigate whether the giant retailer favors those merchants that use its logistics and delivery system over other sellers.

    Although as per reports, Amazon has contradicted these allegations, however, to settle down it has come to a concrete conclusion to make things transparent with the European Commission and keeping in view of their trust issues it is aiming to serve the European consumers and the 185,000 plus European small and medium-sized enterprises who are selling through their platform.

    These investigations compelled Amazon a fine of up to 10% of its annual revenue worldwide.

    Amazon has also made statements concerning its defence claims, that they are finding the new EU digital regulations, the Digital Markets Act completely one-sided. They have made remarks like, “unfairly targeting Amazon and a few other American companies.”

    To come out of these accusations, Amazon now has taken up the step to refrain from using its competitor’s data and use it for its own purpose. The brand is now accepting to give equal status to other sellers while ranking their products with the feature, “buy box”. This feature allows shoppers the liberty to add items directly to their shopping bags.

    Conclusion

    This massive e-commerce performer, Amazon, is facing some difficulties right now. The company’s decision to reduce the selling of its products shows us that they plan to keep things ethical for other third-party merchants. Amazon is now looking for ways to give full access to other sellers on its marketplace.

    FAQs

    What is Amazon’s private label?

    Amazon sells its products using its in-house brands which are its private labels. Some of the examples are Amazon Basics, Solimo, Happy Belly, and Amazon Fresh.

    Is Amazon closing down its private label brands?

    No, Amazon has decided to sell fewer items by its private labels due to low sales and due to anti-trust issues.

  • Flyrobe Business Model: How Does Flyrobe Make Money?

    Indians never fail to amuse themselves with their traditional attire, especially in ethnic wear on occasions or events. On the other hand, wearing such clothes costs like anything in this world, even if you are wearing them for one day or keeping them permanently.

    That’s why Flyrobe has made a favourable store by conferring rental dresses at affordable prices. Besides that, customers can buy the products by paying the full settlement.

    Flyrobe – About
    Flyrobe – Products and Services
    Flyrobe – Target Audience
    Flyrobe – Business Model
    What Is Unique About Flyrobe’s Business Model?
    How Does Flyrobe Make Money?

    Flyrobe – About

    Flyrobe is an online rental clothing company for men and women. Instead of owning a one lakh dress for a one-day occasion, renting it at an affordable rate would do wonders. Flyrobe sells handmade ethnic wear of the RIB brand and charges fare only on the rental dresses but they ask you to pay extra if you exceed the specified due date.

    On the other note, there are no delivery fees or transportation charges and also the company grants one more expedient to the customers where the required product delivers within 3 hours.

    Notably, Flyrobe is an online clothing portal that sells as well as rents western attire, ethnic, accessories, designers, and men’s and women’s collections which was launched in 2015 by Pranay Surana, Tushar Saxena, and Shreya Mishra.

    Currently, the business is planning to open 30  branches in different cities to dilate their services in the country. The company is operating in 10 major cities in India and has two offline stores in Mumbai, Bangalore, Ahmedabad, and Delhi.

    Flyrobe – Products and Services

    Flyrobe is known for its Ethnic attire, which is made by its handcrafted RIB brand. Subsidiarily, The company sells branded clothes such as Zara, Armani, GLITZ, Sabyasachi, DIOR, etc. to the customers.

    Flyrobe also sells designer collections, and accessories like sunglasses, bracelets, rings, and chains. Furthermore, Flyrobe offers party dresses, lehengas, sherwani, tuxedos, and other branded collections.

    Flyrobe Website
    Flyrobe Website

    Flyrobe comes up amazingly with its new arrivals of handcrafted dresses which are given as rentals at a reasonable price. In case you are buying such dresses from Flyrobe, it is said that it costs an arm and a leg.

    The store also touts celebrities’ look outfits and renowned designer’s outfits, whereas Alia Bhatt, Sonakshi Singha, Parineeti Chopra, and others have played a part in the growth of Flyrobe.

    Flyrobe – Target Audience

    Every woman admires herself when it comes to traditional wear, so it is highly recommended for the age group 20 to 40 years, who love to wear ethnic attire to any occasion to amuse others with their classy look. So Flyrobe targets women majorly by selling or renting women’s collections at a pragmatic price.

    Flyrobe – Business Model

    Unlike other clothing companies, Flyrobe renders their clothes in rental to the customers at a cheaper rate. They rent the on-demand product for a four to eight days period and charge no delivery fees. But if the specified rental period became due, then the customers are asked to send an email to the company in requisition for the dilatory.

    It is saddening when one buys an expensive dress for 50 thousand rupees but wears it only for a one-day event. That’s why Flyrobe sounds good when expensive clothes are available for rent at an affordable rate to the customers for 4 to 8 days without delivery charges.

    What Is Unique About Flyrobe’s Business Model?

    Being on top of its game, Flyrobe uses unique ideas that make them stand apart from its competitors. Some of the ideas used by Flyrobe are:

    No delivery charges

    Flyrobe provides an excellent service to its customers by way of free pick up and delivery to the address provided by the customer. This is one of the few reasons why Flyrobe is popular among its competitors and customers likewise. The delivery of western clothing within 3 hours with no pickup and delivery charges was coveted by the customers of Flyrobe.

    Services offered in 16 major cities

    Flyrobe offers its service in 16 major Indian cities: Delhi, Gurugram, Faridabad, Noida, Ghaziabad, Chandigarh, Ludhiana, Jaipur, Mumbai, Pune, Indore, Lucknow, Hyderabad, Ahmedabad, Bengaluru, and Agra.

    Rented outfits at a cheap price

    The very reason why Flyrobe is favored is because of renting good quality ethnic and western wear at a cheap price affordable to people. This allows people who would want a lehenga for a 3-day function to not spend a fortune on buying a lehenga but also wear one that makes a statement.

    Offers a wide range of clothing from top designers

    Who wouldn’t love wearing a lehenga from the maker of Anushka Sharma’s wedding lehenga and not having to sell their kidney in the process? Flyrobe offers ethnic and western clothing from top designers like Sabyasachi, Zara, Armani GLITZ, Dior, etc. to its customers and has multiple partnerships with several agencies and designers.

    Online and In-store presence

    Flyrobe’s online reputation across 16 Indian cities at a reasonable rate of rent for a minimum of four days has customers crowding their site. Customers who want to make alterations to the dress can visit their stores and get a fitting done for no cost.

    How Does Flyrobe Make Money?

    Flyrobe is gaining much recognition with different types of audiences favouring its concept. Flyrobe makes money in more than one pattern. The majority of the revenue collected by Flyrobe comes from its online sales. As per its founders, 65% of revenue is collected from its online sales.

    Apart from that, Flyrobe charges a commission from its sellers on each successful renting and purchase. There is also the option of a subscription plan available for its users which provides additional benefits to the user.

    On the other hand, Flyrobe charges a fixed amount from then in return for the subscription model. Flyrobe also earns its revenue from the advertisements provided on its platform.

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    Conclusion

    Flyrobe’s unique idea created an industry that is thriving and profitable. It is well received among those people who would love to wear high-end fashionable ethnic wear to marriages and functions as these are celebrated as grand festivities in India but can’t afford to purchase them for a one-time affair.

    And the ability to wear International branded western wear for rent is an option that is positively tempting to those who love fashion. The largest rental platform’s presence in 16 major cities in India and the offline stores only help in increasing the reach of Flyrobe among masses of people who are planning a budget wedding dress.    

    FAQs

    What is Flyrobe?

    Flyrobe is a startup focused on fashion-based products which allow them to be rented and purchased. Majorly, it is an apparel-based renting platform.

    Who started Flyrobe?

    Flyrobe was started by Shreya Mishra, Tushar Saxena, and Pranay Surana in 2015.

    Can I rent my clothes on Flyrobe?

    Yes, Flyrobe allows easy renting of individuals’ clothes on its platform. One can easily rent their clothes on Flyrobe until and unless the dress meets all the eligibility criteria of the startup.

    Is Flyrobe Profitable?

    Flyrobe is a profitable business as its revenue collection has been noted to have significant growth over the years.

  • How Do Short Video Platforms Make Money? | Business Model of Short Video Platforms

    The arrival of TikTok has increased the craze for making short-form videos worldwide. Short video platforms are on the trend. TikTok was the most used Short Video Platform in India which had been downloaded over 611 million times. Ever since it got banned in India on June 29, 2020, over national security issues, after a fallout between both the country. To fill up the gap TikTok left, there has been an onslaught of new short-video platforms. Instagram launched “Reels” immediately after TikTok got eliminated from India.

    There are various short-video platforms that have entered the market like Josh, Moj, MX Taka Tak and many more and they are growing exponentially. The reason is that the mobile data price has dropped since the arrival of Jio. And also, android phones with good cameras are available for a reasonable price which led to an increase in the consumption and creation of short video content in India.

    Age Group of short video platform users
    Age Group of short video platform users

    Now, anyone with a good internet connection and a good camera phone can create and upload short video content. The short video platforms have a wide range of business models and the way of making money differs from one company to another. Moreover, these platforms provide free services to their user which require experiments with the business model. In this article, we will talk about how short video platforms make money. So, let’s get started.

    How Short-Video Platforms make money?

    Promotion Of Brand
    Sponsorship
    Affiliate Marketing
    Collaboration
    Transactional Video on Demand (TVOD)
    Subscription Video on Demand (SVOD)
    Ad-supported Video on Demand (AVOD)
    Hybrid Model

    Promotion Of Brand

    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion
    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion

    Short Videos are enjoyed by people scrolling on social media. Be it Reels on Instagram or TikTok videos, if it’s entertaining it’s bound to catch your attention. There are many brands that introduce challenges in this video platform and ask people to participate. The brand gives money to the platform to introduce the challenge, this way the promotion is done, and people get to interact with the brand while doing the challenge, and thus their work is done.

    How to use video content for marketing?

    Sponsorship

    Sponsorship is another way of earning money for the Short Video platforms. Many companies willingly sponsor short video apps to reach the masses. As these videos are watched by people in bulk, sponsoring them is beneficial for the company to be known by a large number of people who can be their potential customers. It is a win-win situation for both the platform and the sponsor as the platform gets to earn money through it.

    Affiliate Marketing

    Brands give money to the platform for Affiliate marketing. Here, the platform has to present a video regarding the product of that brand where all information about it has been provided in the video. As people are now attracted to videos more, affiliate marketing helps brands to increase their sales. Thus, nowadays some companies are taking the support of short video platforms and are using them for affiliate marketing.

    Collaboration

    Whenever there is a new film or a music video is going to be released, the stars or the singers collaborated with the video platforms. This way they get to promote their films or music videos whatever it is and can be presented to many people. Collaboration brings money to the short video platforms and thus it is one way to earn.

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    Transactional Video on Demand (TVOD)

    In this type of business model, a customer normally pays a one-time fee or rents it to watch videos or live events. It is more commonly known as pay-per-view. This helps you to choose the entertainment videos you want to watch; you can just pay for the content you require and that increases the popularity of this model. It is considered cost-effective as you can choose what type of entertainment you want to watch rather than subscribing to everything in bulk.

    TVOD helps to concentrate and offer content to a specific market. You won’t be getting unwanted or unrelated video suggestions and would receive video suggestions according to your likes.

    You can find video platforms like YouTube or Instagram using this method to suggest videos. The platforms would keep a track of your activities and give you suggestions on content according to your choice.

    That’s the reason most of the time you would be able to find the content according to your choice. The only difference is that you can view videos and content for free on these video platforms.

    Subscription Video on Demand (SVOD)

    In this subscription-based model, a customer will have to pay an amount monthly, quarterly, or yearly. Through the subscription model, you will be able to view an unlimited amount of content on their platform along with the recently released content.

    There will be different subscription models. The services you receive would be better as you pick the most premium version of the models.

    The main difference between different subscription models would be that there would be a difference in the prices. Also, you would be getting added services and certain advantages. Most of the time, the in-demand videos would be available for premium subscribers.

    This Revenue model is mostly followed by major OTT platforms such as Netflix, YouTube and many more. The subscription model of YouTube is known as YouTube Premium. The main advantage here is that you can choose what you want to watch on these platforms.

    Ad-supported Video on Demand (AVOD)

    In this model, a customer can view the content for free. It is a platform where you can view the content for free but would receive ads in between your content. The platforms get their major revenue from the ads.

    The platform would charge different rates from the advertisers according to what time they would want to play their ad. For example, an ad played at the beginning of the video would cost more than the ad played at the end of the video. The main example of this type of model is YouTube.

    On certain platforms like YouTube, even the content creators would receive a specific amount for the ads being played in between their videos. This would encourage the content creators to make and promote more of their content which will indirectly improve the financial position of the platform as well as the content creators.

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    Hybrid Model

    This is the type of business model normally adopted by companies that want to increase their reach. It is a combination of all the above methods. The platform would want a customer to view it for free at the beginning where they would play some video ads and later convert the customers into the subscription model or transactional video model.

    The company would generate revenue from the beginning stage and it would attract a lot of customers as well. This model would provide the customers with a lot of options to choose from. You would be able to choose the model you prefer according to your budget or your likes.

    Conclusion

    Number of Active Users of Short Video Platforms in India
    Number of Active Users of Short Video Platforms in India

    The demand for short video platforms would keep on increasing in the coming years. The number of active users on Short-video platforms is expected to reach over 650 million by 2025. We would be able to see a lot of content creators and a lot of viral videos being uploaded. With the ban of TikTok in India, there are a lot of new apps coming up along with new features such as Reels, introduced by Instagram to promote short video content.

    YouTube has become a platform where people create content as a full-time profession. Short video platforms are going to flourish in the coming future as the entertainment industry is gaining popularity.

    FAQs

    What is the Business Model of TikTok?

    TikTok primarily gains its revenue through advertising.

    Which countries have banned TikTok?

    TikTok is banned in India and Pakistan only. Though Bangladesh, the United States and Indonesia have attempted a ban on TikTok but later lifted it.

    Why is TikTok banned in India?

    The Indian government in a statement stated that the decision to ban the app was “to protect the data and privacy of its 1.38 billion citizens”.

    Which is the best platform for short videos?

    The best platform for short videos based on its features are as follows:-

    • Instagram
    • TikTok
    • Moj
    • Josh
    • Likee
    • Taka Tak
    • Snapchat
    • YouTube Shorts
    • Dubsmash

    Which short video app is best to earn money?

    The best short video app to earn money are as follows:-

    • Kwai
    • Instagram
    • Likee
    • TikTok
    • Moj
    • Josh
    • Taka Tak
    • Vigo Video

    Which app is best for short video editing?

    The best video editing apps are:-

    • InShot
    • KineMaster
    • Movavi Video Editor Plus
    • FilmoraGo
    • ActionDirector
    • Adobe Premiere Rush
    • Funimate.

  • Aditya Birla Group Case Study | Inception & Growth Strategy

    There are several huge business tycoons in India, who have made their mark on a global level. Post-independence in India, these massive organizations set their claws on every continent in the world and became one of the multinational conglomerates that rose from nothing and now reached the pinnacle of the business realm. One of the remarkable business families is the Birla Group.

    Top Companies like Tata group and Reliance Industries gave the nation a level of recognition on an international platform. These companies started acquiring the domestic business establishments of the countries, where they ventured to do business and also started expanding their business vast.

    Aditya Birla Group is a firm that takes corporate responsibility very seriously. Son of Aditya Birla, Kumar Birla makes the revenue of $41 billion in the company, a commodities empire with interests in cement, aluminium, telecom industry, and finance. It also backed the 19th position in Asia’s Richest Families, 2017.

    Aditya Birla Group – About
    Aditya Birla Group – Inception
    Aditya Birla Group – Growth
    Aditya Birla Group – Acquisitions
    Aditya Birla Group – Global Conglomeration
    Aditya Birla Group – Kumar Mangalam Birla

    Aditya Birla Group case study

    Aditya Birla Group – About

    Aditya Birla Group is a massive conglomerate that is engaged in various sectors. Birla Group comes with a great history, Aditya Birla Group is a $50 billion corporation and is on the list of Fortune 500.

    It also has a number of achievements which includes the tag as a Global leader in Aluminium Rolling and Carbon Black. Aditya Birla Group ranks second in Telecom sector. It is the leader in Telecom and Cement Industry in India. The company has its struggle to achieve the positions.

    The company had stepped into the Cotton industry initially which then expanded rapidly in the 20th Century. The company dealt tremendously in critical sectors like textiles and fibre, aluminium, cement, and chemicals under the leadership of Ghanshyam Das Birla. He was involved in the freedom struggle of India with Gandhiji and showed how eminent business leaders could contribute to the betterment of the nation.

    After that, Mr Aditya Vikram Birla achieved this feat in the Liberalization of the Indian Economy in 1991. After him, his very capable son, Kumar Mangalam Birla had taken up the role of leadership in 1995 and the Group’s annual turnover was around $3.3 Billion.

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    Aditya Birla Group – Inception

    The foundation of Aditya Birla Group was laid back in the year 1857. The founder Shiv Narayan Birla had a very wider idea of the future in mind. After his death, the venture was carried forward by the next generation of the family.

    Currently, it has become a multinational conglomerate with an important global existence. It deals in the field of various trades such as metals, chemicals, textiles, agriculture, mining, carbon black, telecommunications, insulators, cement, finance, retail, IT, trading solutions, etc.

    There are almost a total of 1,40,000 employees and the company generated a revenue of $46 billion in the fiscal year of 2020, making it the third big company per revenue generation with the runners-up Tata Sons and Reliance India Limited. The business is run majorly in Mumbai, Maharashtra.

    Aditya Birla Group – Growth

    Aditya Birla’s group turnover in 2020 was around $46 billion. Aditya Birla Fashion and Retail Limited (ABFRL) is one of the major wings of the Group and has brought good growth to the conglomerate.

    ABFRL Revenue Growth
    ABFRL Revenue Growth

    Aditya Birla Forays into B2b Ecommerce

    Aditya Birla Group announced that it will launch a B2B eCommerce platform that will deal with building materials, as per reports dated July 19, 2022. Some of the startups that are recognised as B2B eCommerce startups now are Infra. Market and OfBusiness both of which are included among the unicorn startups of India. With this, Aditya Birla also declared that it would be infusing close to Rs 2000 crore into the platform over the course of the next 5 years.

    The building materials and the digital segment, both offers tremendous opportunities for growth, mentioned Aditya Birla Group Chairman Kumar Mangalam Birla.  

    Aditya Birla has earlier taken numerous such decisions that made it conquer segment after segment in the Indian market. Ultratech Cement, an Aditya Birla subsidiary, is the largest cement producer in India. Besides, it has also forayed into the paint space.

    Aditya Birla Group – Acquisitions

    Aditya Birla Group is a holding and service provider company with almost more than 72+ manufacturing and services subsidiaries across India, Thailand, Indonesia, Malaysia, Australia, China, Egypt, Philippines, and Canada.

    • Grasim, one of Aditya Birla’s subsidiaries, is the world’s leading producer of fibre, and a manufacturer of rayon-grade pulp, sponge, iron, textiles, cement, and chemicals.
    • Hindalco is a producer of aluminium and copper, and UltraTech Cement is a producer of portland cement and other products.
    • Birla NGK Insulators, which is a joint venture with Japan, is the world’s leading producer of insulators.
    • Idea Cellular Limited is a mobile service provider owned by Indian conglomerate Tata Industries jointly.

    The Group also produces IT and software services and operates a number of financial subsidiaries. Birla Sun Life Insurance Co. is the 2nd largest private sector insurance company in India, and Birla Sun Life Asset Management Co. is the 4th largest assets manager.

    To sum the growth up, the company claims to be the world’s 8th largest producer of cement and the 4th largest producer of carbon black globally. These operations generate revenues of around $7.6 billion per year.

    Some other popular subsidiaries of Aditya Birla Group are:

    • Aleris Corporation
    • Columbian Chemicals Company
    • Novelis Inc
    • Cement business of L&T
    • Louis Philippe, Allen Solly, Peter England and more.

    Aditya Birla Group – Global Conglomeration

    The Global conglomerate, Aditya Birla Group is the 2nd largest venture and is an extraordinary force of more than 140,000 employees belonging to 100 nationalities, it is built on a strong foundation of stakeholder value creation.

    It is responsible for business powerhouses in a wide range of sectors. Currently, 50% of Aditya Birla Group’s revenues flow from overseas operations which include 36 countries in Africa, Asia, and North and South America.

    Aditya Birla Group – Kumar Mangalam Birla

    Kumar Mangalam Birla
    Kumar Mangalam Birla 

    Kumar Mangalam Birla inherited the family business in 1995 at the tender age of 28 when his father Aditya Birla died and left his son with a lot of pressure to live up to his father.

    Against all the odds, Kumar Mangalam Birla proved everyone wrong and took the company to newer heights. The company grew by 16 times under his leadership. He proves to be an inspiration for all of the aspiring entrepreneurs who works under tremendous pressure and make it a strength.

    The complete renovation of the new operations and procedures was done by Kumar Birla. He was determined to evolve everything and bring the company to modernization. He is known to be the Best CEO of Aditya Birla Group of Companies.

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    Conclusion

    The Aditya Birla Group broke all the conventional barriers of business and believes in the duty to facilitate inclusive growth. They have a peculiar set of policies and strategies to retain their employees. The group owns one of the top three telecom companies in India, the nation’s largest cement manufacturer, and one of its top retailers.

    FAQs

    When was Aditya Birla Group founded?

    Aditya Birla Group was founded in 1857 by Seth Shiv Narayan Birla.

    How many companies are there under Aditya Birla Group?

    Aditya Birla Group subsidiary companies are:

    • Grasim Industries
    • Vodafone Idea
    • Essel Mining & Industries Limited
    • Aditya Birla Fashion and Retail
    • Domsjo Fabriker
    • Hindalco Industries

    How many employees are there in Aditya Birla Group?

    Aditya Birla Group has around 140,000 employees belonging to 100 different countries.

    What is Aditya Birla group turnover?

    Aditya Birla’s group turnover was US$46 billion (2020).

    Who is the richest Birla?

    Kumar Mangalam Birla is the richest Birla with an estimated net worth of US $17.5 billion, as of 2022.

  • McDonald’s Corporation: The World’s Leading Fast Food Chain [Case Study]

    McDonald’s Corporation is an American fast-food organization established in 1940 as a cafĂ© by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.

    Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald’s siblings. McDonald’s had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.

    McDonald’s is worth $185+ bn today. It is the world’s biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets.

    Although McDonald’s is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.

    McDonald’s Corporation’s income originates from leases and charges paid by the franchisees. According to two reports distributed in 2018, McDonald’s is the world’s second-biggest private manager with 1.7 million representatives (behind Walmart with 2.3 million workers).

    Here’s bringing you the McDonald’s company profile that will present to you McDonald’s company overview, when was McDonald’s founded, McDonald’s growth over the years, about McDonald’s, McDonald’s owner name, founder of McDonald’s corporation, McDonald’s history and background, McDonald’s case study marketing, and more.

    McDonald’s – Company Highlights

    Company Name McDonald’s
    Headquarters Chicago, Illinois , U.S.
    Founded 1940
    Founders Richard and Maurice McDonald’s and then by Ray Kroc
    Sector Restaurants, Food Franchise, Real Estate
    Valuation $185+ bn
    Revenue $23.22 bn (FY21)

    McDonald’s – Startup Story and History
    McDonald’s – Mascot/Logo
    McDonald’s – Business Model And Market Strategy
    McDonald’s – Target And Mission
    McDonald’s – Growth
    McDonald’s – Restaurants And Services
    McDonald’s – Future

    McDonald’s – Startup Story and History

    Richard and Maurice McDonald in 1940, opened the primary McDonald’s at 1398 North E Street at West fourteenth Street in San Bernardino, California; however, it was not the McDonald’s you know today. Ray Kroc made changes to the siblings’ business and modernized it.

    MacDonald's Founders - Richard McDonald, Maurice McDonald and Ray Kroc (From Left to Right)
    MacDonald’s Founders – Richard McDonald, Maurice McDonald and Ray Kroc (From Left to Right)

    The siblings presented the “Speedee Service System” in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald’s emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.

    It looked like a fantastic and impossible eatery that had:

    ‱ Only burgers, fries, and shakes on the menu
    ‱ No plates or waiters to serve the customers

    However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald’s.

    Kroc was then 50 already and was selling milkshake mixers door to door. Ray Kroc had earlier tried his hand in many things but never had attained success in his whole life. He already worked as a musical director, pianist, and had also worked as a real estate guy, in the paper cup industry, and as a seller of kitchen appliances, but he couldn’t hold on to one thing among them all. Thus, Kroc was a person who lived from paycheck to paycheck.

    Kroc came to McDonald’s to deliver an absurd order of 8 milkshake mixers for just one area. He wondered “why would someone want to make 40 milkshakes at a time?” This is why he drove to California, at McDonald’s to see the place himself.

    Seeing the huge demand for McDonald’s burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald’s brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn’t have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.

    He assumed the role by taking 2 major steps back to back:

    • Mortgaging his house when he was already 52
    • Opening 18 new outlets in the very first year

    This has helped the company scale big time, and McDonald’s now boasts of:

    • Serving 2.3+ billion burgers a year
    • Serving 39,000+ restaurants across more than 120 countries
    • Being the 4th largest employer in the world
    • Being the largest toy distributor in the world

    Though it was Ray’s idea and the expansion was promising, the McDonald’s brothers made an unfair deal with him. Kroc was allowed only 2% of the profits. McDonald’s being to scale aggressively but the founders of McDonald’s wasn’t really happy with Ray and his scaling. This is why Ray borrowed and bought them out for $2.7 mn, thereby becoming the 100% owner of McDonald’s.

    The organization attributes its success to Ray Kroc. Kroc later bought the McDonald siblings’ value in the organization and was responsible for McDonald’s overall reach. He was seen as a forceful colleague, driving the McDonald siblings out of the business. Kroc and the McDonald’s siblings battled for control of the business, as recorded in Kroc’s life account.

    Ray Kroc
    Ray Kroc

    The San Bernardino eatery was torn down (1971, as indicated by Juan Pollo) and the site was offered to the Juan Pollo chain in 1976. This zone currently fills in as central command for the Juan Pollo chain, and a McDonald’s and Route 66 museum.

    With the development of McDonald’s into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals, and shopper obligation.

    The first mascot of McDonald’s was a cooking cap over a burger who was alluded to as “Speedee”. In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.

    First mascot of McDonald's
    First mascot of McDonald’s

    On May 4, 1961, McDonald’s initially petitioned for a U.S. trademark on the name “McDonald’s” with the portrayal “Drive-In Restaurant Services”. By September 13, McDonald’s, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved “M” image.

    McDonald's Logo
    McDonald’s Logo

    Before the twofold curves, McDonald’s used a solitary curve for the design of its structures. Even though the “Brilliant Arches” logo showed up in different structures, the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.

    McDonald’s – Business Model And Market Strategy

    The business and revenue model of McDonald’s includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald’s is the biggest eatery network on the planet in terms of income.

    Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald’s Hamburgers.

    First McDonald's
    First McDonald’s

    In 1954, Ray Kroc turned into the establishment operator of the McDonald Brothers. The main McDonald’s eatery was opened by Kroc in 1955 in Des Plaines, Illinois, USA. It was in the year 1961 that the rights to the eating joint of the kin were obtained by McDonald’s for a powerful total of $2.7 million.

    You may likewise be astonished to realize that when the first McDonald’s eatery opened, the extremely well-known McD french fries were eaten with no ketchup! The revenue model of McDonald’s, the world’s quickest developing food chain, is an interesting one.

    McDonald’s – Target And Mission

    McDonald’s endeavours hard to be its clients’ “most loved spot and approach to eating”. McDonald’s plan of action is fixated on the ground-breaking strategy “Plan To Win”, which is placed into requests around the world.

    With the mission of “Quality, Service, Cleanliness, and Value”, McDonald’s has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion.

    Additionally, McDonald’s plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald’s are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.

    Astounding Vision

    When Ray Kroc opened the Original McDonald’s in Illinois, he had a dream of expanding the franchise across the globe with more than 1000 outlets in the States itself. Remaining consistent with its guarantee, McDonald’s widened its worldwide handle by opening joints outside the US as early as 1967.

    The first international outlets were opened in Canada and Peurto Rico. By January 2018, McDonald’s was situated in 120 nations and had about 37200 cafĂ©s with 1.9 million workers. It was serving more than 69 million individuals every day. At one point in time, McDonald’s was opening a new outlet every 14.5 hours!

    Significant Growth Strategy

    McDonald’s has clutched a promising development technique to serve customers and spread its wings. The presentation of the “Speed Growth Plan” in March 2017 enhanced the development of the business.

    McDonald’s development system depends on retaining, regaining, and converting. McDonald’s strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.

    What’s more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.

    Decent Variety

    Monetarily, McDonald’s has affected the world more significant manner than some other organizations. McDonald’s adheres to the conviction “Decent variety is Inclusion” and doesn’t leave a solitary opportunity to make each person from every network feel regarded. Its suggestion of “Decent variety is Inclusion” has affirmed its situation at the top position.

    The McDonald’s way of life revolves around the following: customer-obsessed, better together, and committed to lead. These coupled with its conviction has caused the fast-food chain to exceed expectations in the field of business enterprise and showcasing.

    McDonaldization

    McDonald’s can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald’s is regularly alluded to as “McDonaldization.” Its accomplishment in more than 120 nations can be credited to its hierarchical structure.

    The hierarchical structure of McDonald’s mulls over expanding localization, and in this way, the entire plan of action of McDonald’s is normally redone thinking about the mass intrigue in different nations.

    Fruitful Acquisitions

    The McDonald’s Corporation Mergers and Acquisitions (M&A) have, since its inception, entertained itself with cautious acquisitions. Donato’s Pizza which is a Midwestern chain of 143 eateries was obtained by McDonald’s on 6 May 1999. Aside from securing Donato’s, it acquired the Boston Market on 18 May 2000. Boston Market is a drive-through eatery chain that essentially focuses on home-style sustenance.

    Supporting Employees

    McDonald’s doesn’t, in any capacity, hamper the development of its workers. It bolsters its representatives in every possible way and empowers them to set up business systems.

    At McDonald’s, the work environment is brimming with positivity, connections are advanced, professional openings are supported, and business development is sustained.

    Coaches, good examples, and backers are accessible at all times to direct the employees on successful initiatives, professional procedures, and prosperous business.

    Engagement Of Community And Education

    Aside from being one of the best good-quality fast food options, McDonald’s investigates every possibility to endeavour for the network it serves. It effectively takes part in network administration and continues to have a critical effect on assorted networks.

    The Global Diversity, Inclusion, and Community Engagement Team alongside its key accomplices have fabricated cherished relations with different network-based associations. McDonald’s Hamburger University readies its workforce to maintain the multi-billion dollar business and worldwide initiative improvement programs.

    McDonald’s – Growth

    McDonald’s eateries are found in 120 nations and serve 69 million customers each day. McDonald’s operates 39,000 restaurants/cafĂ©s around the world, utilizing more than 210,000 individuals as part of the arrangement. They help operate 2,770 organization possessed areas and 35,085 diversified areas, which incorporates 21,685 areas diversified to regular franchisees, 7,225 areas authorized to formative licensees, and 6,175 areas authorized to remote affiliates.

    Concentrating on its centre image, McDonald’s started stripping itself of different chains it had gained during the 1990s. The organization possessed a large stake in Chipotle Mexican Grill until October 2006 when McDonald’s was completely stripped from Chipotle through a stock exchange.

    Until December 2003, it likewise claimed Donatos Pizza, and it claimed a little portion of Aroma CafĂ© from 1999 to 2001. On August 27, 2007, McDonald’s sold Boston Market to Sun Capital Partners.

    Outstandingly, McDonald’s has expanded investor profits for 25 back-to-back years, making it one of the S&P 500 Dividend Aristocrats. The organization is positioned 131st on the Fortune 500 of the biggest United States companies by revenue.

    In October 2012, its month-to-month deals fell without precedent for nine years. In 2014, its quarterly deals fell without precedent for a long time, when its deals last dropped for the whole of 1997.

    In the United States, McDonald’s accounts for 70% of sales in drive-throughs. McDonald’s shut down 184 eateries in the United States in 2015, which was 59 more than what they wanted to open.

    Mcdonald's Drive-Thru
    Mcdonald’s Drive-Thru

    Starting in 2017, the income was roughly $22.82 billion. The brand estimation of McDonald’s is more than $88 billion; outperforming Starbucks with a brand estimation of $43 billion. The total compensation of the organization in 2017 was $5.2 billion; this worth saw an ascent of about 11% from the previous year.

    McDonald’s is, without a doubt, the quickest developing drive-thru eatery chain on the planet. In 2018, McDonald’s developed as the most profitable inexpensive food chain with a brand worth nearing $126.04 billion. Also, the all-out resources of McDonald’s were almost $33.8 billion.

    The world’s quickest developing cheap fast food chain partitions its market into four unique areas: U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

    According to the report set forth by the organization in the year 2017, the market in the U.S. created the biggest measure of income at $8 billion. The International Leads Markets which includes Australia, Canada, France, Germany, and the U.K. created an income of $7.3 billion.

    The High Growth Markets which incorporate China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands, and comparative brought in about $5.5 billion in revenue.

    The Foundational Markets and Corporate incorporate the rest of the business sectors. Furthermore, it additionally incorporates a wide range of corporate exercises. The income created by this section of the market represented roughly $1.9 billion.

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    McDonald’s – Restaurants And Services

    McDrive

    In certain nations, “McDrive” areas close to roadways offer no counter administration or seating. interestingly, areas in high-thickness city neighbourhoods frequently preclude pass-through service. There are likewise a couple of areas, found for the most part in the downtown locale, that offer a “Walk-Thru” administration instead of a Drive-Thru.

    McCafe

    McCafĂ© is a bistro-style backup to McDonald’s cafĂ©s and is an idea conceived by McDonald’s Australia (likewise known, and promoted, as “Macca’s” in Australia), beginning with Melbourne in 1993. As of 2016, most McDonald’s outlets in Australia have McCafĂ©s situated inside the current McDonald’s eatery.

    McCafe
    McCafe

    In Tasmania, there are McCafés in each eatery, with the rest of the states rapidly following suit. After moving up to the new McCafé look and feel, some Australian eateries have seen up to a 60% expansion in deals. There were more than 600 McCafés around the world some time back.

    Create Your Taste

    From 2015–2016, McDonald’s attempted another gourmet burger administration and eatery idea dependent on other gourmet cafĂ©s, for example, Shake Shack and Grill’d. It was taken off without precedent for Australia in early 2015 and extended to China, Hong Kong, Singapore, Saudi Arabia, and New Zealand with progressing preliminaries in the US showcase.

    McDonald's Create Your Taste
    McDonald’s Create Your Taste

    In committed “Make Your Taste” (CYT) booths, clients could pick all fixings including a kind of bun and meat alongside discretionary additional items. In late 2015, the Australian CYT administration presented CYT servings of mixed greens.

    After an individual had requested, McDonald’s prompted that hold up times were between 10–15 minutes. At the point when the nourishment was prepared, the prepared group (‘has’) carried the sustenance to the client’s table.

    Rather than McDonald’s typical cardboard and plastic bundling, CYT nourishment was exhibited on wooden sheets, fries in wire bushels, and servings of mixed greens in china bowls with metal cutlery. A more expensive rate connected. In November 2016, Create Your Taste was supplanted by a “Mark Crafted Recipes” program intended to be increasingly proficient and less expensive.

    McDonald’s Happy Day

    McHappy Day is a yearly occasion at McDonald’s during which a portion of the day’s deals goes to philanthropy. The collections on this day go to Ronald McDonald House Charities.

    In 2007, it was celebrated in 17 nations: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay. As indicated by the Australian McHappy Day site, McHappy Day brought $20.4 million up in 2009. The objective for 2010 was $20.8 million.

    McDonald’s Monopoly Donation

    In 1995, St. Jude Children’s Research Hospital got a mysterious letter stamped in Dallas, Texas, containing a $1 million winnings McDonald’s Monopoly game piece. McDonald’s authorities went to the medical clinic, joined by a delegate from the bookkeeping firm Arthur Andersen, inspected the card under a diamond setter’s eyepiece, took care of it with plastic gloves, and checked it as a winner.

    McDonald's Monopoly
    McDonald’s Monopoly

    Although game guidelines disallowed the exchange of prizes, McDonald’s deferred the standard and made the yearly $50,000 annuity instalments for the full 20-year time frame through 2014, even in the wake of discovering that the piece was sent by an individual associated with a theft plan meant to cheat McDonald’s.

    McRefugee

    McRefugees are destitute individuals in Hong Kong, Japan, and China who utilize McDonald’s 24-hour cafĂ©s as transitory lodging. One out of five of Hong Kong’s populace lives underneath the destitution line. The ascent of McRefugees was first archived by picture taker Suraj Katra in 2013.

    McDonald's For Refugees
    McDonald’s For Refugees

    McDonald’s – Future

    The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.

    McDonald’s turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the “We Are Still In Leader’s Circle”, driving activity to relieve environmental change.

    McDonald’s USA completed five years as the sole worldwide cafĂ© organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).

    McDonald’s co-facilitated the “Way to Greenbuild” occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald’s, and Gensler Chicago, got USGBC LEED Platinum accreditation.

    McDonald’s is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald’s leads, others will pursue.

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    FAQs

    Who is the founder of McDonald’s?

    McDonald’s was founded by Richard McDonald and Maurice McDonald on 15 April 1955 in California, United States.

    Who is the CEO of Mcdonald’s?

    Chris Kempczinski is the CEO of Mcdonald’s since Nov 2019.

    Who is the owner of McDonald’s in India?

    In India, McDonald’s is a joint-venture company managed by two Indians- Amit Jatia (M.D. Hardcastle Restaurants Private Ltd) and Vikram Bakshi ( Connaught Plaza Restaurants Private Ltd).

    When was the fast-food chain McDonald’s founded?

    Mcdonald’s was founded in 1940 in San Bernardino, California.

    How much does a Mcdonald’s franchise owner make?

    An average Mcdonald’s franchise generates $150,000 annually.

  • Why Luxury Car Sales Are Booming in India in 2022?

    The Indian market has always been an attractive lure for international business houses. Its deep history with the luxury and lifestyle goods industry is showcased in history through the Maharajas of yesteryears who were the ultimate consumers of luxury consumer goods. Be it fashion, accessories, beauty, health or automotive, various brands have found tremendous success within their folds.

    When the deadly virus struck in 2019, everything came to a standstill for a few months. Industries suffered and the global economic scenario was grim. As the world inched towards normalcy, the following months were uncertain and fraught with worry.

    A couple of years later, the world post the Covid-19 pandemic has returned with a vengeance. The luxury car segment has reached its pre-pandemic sales levels and is, in fact, set to grow even further. Valued at USD 1.06 billion in 2021, the Indian Luxury Car Market is set to reach USD 1.54 billion by 2027 registering a 7% CAGR growth.

    “We have entered 2022 with a very strong order book. From what we have seen in the first five months, the trend looks positive,”  says Lamborghini India Head Sharad Agarwal.

    “Post Covid we have seen a huge comeback from the market. Our demand currently is one of the best ever demands we have seen in our existence in India. During the first quarter we did close to 4,000 cars and now an order bank of around 5,000 cars we have moving forward. This kind of a strong booking, order bank, we have never seen in the past,” said Santosh Iyer, vice president, sales and marketing, Mercedes-Benz India

    Luxury Cars and the Indian Market
    Why Did Luxury Car Sales Surge in India?
    Future of the Luxury Cars in India

    Luxury Cars and the Indian Market

    India welcomed its first luxury car brand Mercedes-Benz into the market in 2004. It enjoyed a market monopoly till 2006 when BMW made its appearance in India, followed quickly by Audi in 2007.

    Over the years, these three companies have vied for that top spot in terms of sales volume and have replaced each other a few times. The primary reason for this was new product launches, particularly in the smaller and more affordable models.

    2010 was the year when these top three companies saw a high surge in sales numbers and recorded YOY growth of almost 82%. This was due to the rise in the affluent population. The Indian economy was surging and so was the disposable income. This marked an increase in consumer confidence and the willingness to splurge on a premium car.  

    The biggest setback to the automobile industry came in the year 2016. The primary reason? Demonetization. Of course, the curb on the sale of diesel vehicles in the first half of the year had also contributed to it. So, the industry saw a marked drop in sale volume for the first time in a decade.

    2017 saw the Indian government revising its GST structure that was applicable to luxury cars. Despite this and the fact that the overall sale volume growth was slow, the luxury car industry bounced back and the sales number was back on track. 2017 became the best year for all the players of luxury cars in the Indian market.

    Why Did Luxury Car Sales Surge in India?

    Over the next decade, while the industry saw ups and downs, the broader optimism persisted showcased via sales numbers. Even the average age of buyers dropped from 45 years to the mid-30s.

    A new India was emerging with a new breed of entrepreneurs. Companies had begun offering higher and healthier pay packets to individuals passing out from top colleges and institutes.

    All this added to the pool of ever-increasing high-net-worth individuals creating a bigger pool of prospective buyers. The economic growth and development in tier 2 and tier 3 cities of the country meant an increase in demand for luxury cars within these cities as well.

    There is a strong reason for this surge in demand and the confidence in continued growth and demand for luxury vehicles in India.

    • Currently, India is adding the second highest number of billionaires to the world.
    • The buyers of today are first-generation entrepreneurs as opposed to the third or fourth generations before.
    • The customer base has expanded greatly.
    • Luxury car brands have increased the localisation of production, manufacturing and assembling to avoid high import duties.
    • This has greatly reduced the total cost of these cars making them attractive to the price-sensitive Indian market.
    • Pre-owned luxury cars have also found a large niche within the market.

    The other segment within the luxury car market that is making waves with the new generation is the launch of electric vehicles. The advanced technology that supports electric vehicles makes it an attractive buy. Most luxury car brands are venturing into the electric car segment and also making plans to localise their units to make their prices attractive to their buyers

    Luxury Car Sales in India
    Luxury Car Sales in India

    Future of the Luxury Cars in India

    As a market, India is price sensitive and it is no different even in the premium luxury segment. Luxury car brands have studied, understood and addressed the concerns of the Indian market.

    There is a huge scope of growth for this segment within the Indian market as currently the penetration of these brands only stands at 1%. With the fast-paced growth of the Indian economy and the quick rise of a new generation of billionaires, the future looks bright.

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    Conclusion

    The luxury car market is expected to see new entrants with every new launch and product. The growth of this segment looks remunerative driven by network expansion, deeper penetration into other markets with new and pre-owned car dealerships and expansion into complementary functions including car financing and customisation.

    FAQs

    Which luxury car is sold the most in India?

    Mercedes-Benz E-Class is the most sold luxury car in India. The luxury carmaker sold 2,839 units in FY22.

    What has happened to the demand for luxury cars in India?

    The demand for luxury cars was impacted due to the covid 19 lockdown but the demand drastically increased in 2022.

    Is the luxury car market growing?

    The luxury car market was valued at USD 1 billion in 2021 and is expected to reach USD 1.54 billion in 2027.