India has the world’s second-largest internet user population, with more than 350 million users connected and counting. According to the reports of Statista analysis, roughly 71 percent of these users come from small, lower-tier cities. This figure is unsurprisingly appealing and thanks to increased awareness and information access, these people are the next set of consumers. But how can one organization get in touch with them in the most efficient way?
ShareChat, India’s own social media platform, seems to have succeeded in finding the answer and showcases its regional skills. It is one of a kind platform that supports 15 Indian languages and dialects but not English. It strives to provide a welcome place on the internet for individuals to communicate their ideas, thoughts, and emotions without any language barrier, not just for those who want to use this space in their mother tongue but also for those who are new to the internet.
Users can exchange films, jokes, songs, and other language-based with other users via the company’s app, which includes private messaging, tagging, and personal messaging options.
ShareChat engages with local brands with local languages and also helps esteemed and established brands reach a wider audience. At such times, when brands are trying their best to keep customers busy in meaningful ways, sharing chat helped them discover that paying attention to local issues and communicating in local dialects is a big help in fixing the gap.
ShareChat does not ask its users to pay any money to use the platform. It earns revenue from Advertisements, financial transactions, and sponsored campaigns.
Key Marketing Strategies of ShareChat
Targeting the Language-based Audience
ShareChat approximately has 60 million active users per month and supports around 15 Indian languages. It is an apparent appeal for advertisements as an average user spends about half an hour per day on the ShareChat app. Brands are interested in partnering with ShareChat not only because it offers advertising solutions, but also integrates unique capabilities to help them achieve optimal reach.
ShareChat assists local businesses to reach out to a much more language-specific audience and also addresses a wider issue that global businesses face when they attempt to engage individuals in tiny areas.
Any brand that engages with ShareChat does so intending to leverage the app’s success among language-based internet users and connect better with localized audiences. ShareChat allows well-established brands to strike down their ideas and campaigns and build them according to regional values and flavours.
It has received support from many social media apps worldwide and has taken measures to reach out to a more wide audience.
ShareChat uses Appnext Recommendation Engine to reach its target audience. Appnext is a pioneer that provides app suggestions to mobile phone users. Customers are guided by app next via their suffocatingly packed app stores.
The platform provides users with individualized suggestions for apps. With their collaboration with Appnext, ShareChat’s daily activity has increased significantly allowing users to find a ShareChat that provides easy content discovery through on device and in device app placements to its users.
ShareChat is mining the market and audience in small cities, similar to what Tiktok once did in India when it wasn’t banned. According to the reports of “App Annie”, a worldwide analytics and market intelligence organization, India ranks number one in terms of downloading apps. India’s downloads increased by 190%, between 2016 to 2019, the greatest rise around the Globe. In comparison, global downloads saw an increase of only 45 percent, while China, which ranks second climbed at half the rate, increasing by 80%.
Covid-19 Marketing Strategy of ShareChat
Striking down even further, for the vast majority of potential downloaders; the internet is an entertainment zone, and time spent on such apps increased by 80% in India between the year 2017 to 2019. This data tells us a tale.
In these times of uncertainty, it takes on greater importance. According to a survey by BARC India and Nielsen on digital consumption, India’s average mobile phone usage is approaching nearly four hours per day which is a 12.5% increase from the pre-COVID period.
This has been a brilliant opportunity for ShareChat, which moved to make sure that verified information is visible at the head of its feed, prioritizing COVID fact check related content in more than 13 local languages and also increasing the promoting of law and government accounts over its platform. ShareChat also aims to build partnerships with various organizations.
This leading platform is expanding its avenues, both advertising and revenue and they’re also seeking a balance between the user experience and the business.
Unique Features of ShareChat Marketing Strategy
ShareChat is also testing a new ad strategy called splash entries, which is described as the first thing a user sees when they tap the app icon; a vertical ad that is up to 4 seconds and cannot be skipped. The ad appears as the initial post and blends with the user feed, one hundred percent and twice the impressions are all guaranteed with this stunning entry. It also has recently launched a 360-degree solution which is called Divas.
The platform is based on powerful AI potentiality that relies on first-party user data to ensure that users see only the content that they want which increases in-app usage time.
ShareChat is also introducing ShareChat TV, which will be the ideal space for long-term content and commercials, giving advertisers new ways to reach their desired audiences. The platform is also planning to launch the ADs platform which is currently in its beta phase, which will allow brands and advertisement agencies to set up, monitor, and target the campaigns on their own.
ShareChat’s popularity and profitability are drawing good investment as well. The platform was part of 100 million dollars funding led by Twitter. According to reports from a Zinnov, 81 percent of tier-2 and 80 percent of tier-3 people prefer to consume content on their mobile phones, and ShareChat has a wide range of content, including love, entertainment, and outstanding user-created content, it is safe to say that the app has direct access to India’s heart, with over 160 million users and increasing day by day.
FAQs
What is the marketing strategy employed by ShareChat?
ShareChat uses Appnext Recommendation Engine to reach its desired target audience.
Who is the founder of ShareChat?
Ankush Sachdeva, Farid Ahsan, and Bhanu Singh are the founders of ShareChat.
Our race is incredibly curious about everything, from what’s going on in our own residential neighbourhoods to what’s going on in the rest of the world. From childhood, when we were curious about everything, through maturity, when we wanted to know the solutions to every question, we’ve all been on the lookout for answers to any problem.
Instead of answering subject-related questions in class for the sake of getting good grades on your exams, there’s a show that pays you a lot of money for correctly answering core knowledge questions. Doesn’t it sound amazing that a game show will pay you a million dollars if you answer all of the questions to the end? If not, you can keep the money until you’ve answered all of the questions properly.
That show is called ‘Kaun Banega Crorepati,’ which is hosted by a prominent star, Amitabh Bachchan and has the highest TRP to date among other Indian Reality shows. We all appear out of nowhere to reunite with our family, especially on weekends to watch Kaun Banega Crorepati, right? We all enjoy answering questions and want to know the answer to them.
The show is all about answering questions, and the competitors have presented a total of 16 questions. The ‘Fastest finger Contest’ is the opening round, in which contestants must arrange four answers in seven seconds to progress to the main gameplay. Furthermore, each of the 16 questions has a monetary award associated with it, ranging from 1000 to 3000 to 7 crores for question 16 and four types of lifelines to help you out. You might be wondering how the KBC will get 7 crores to their winners out of nowhere. The answer to your question can be found in this article.
As you can see, the host of the KBC show would list out numerous firm branding as sponsorship before taking a break. These companies are paying a huge sum of money to KBC’s production house to run the show successfully, with 70% of the proceeds going to prize money and the host’s compensation, according to reports.
KBC Sponsors
Hyundai Motor India Limited, Asian Paints Royale Glitz, Ultratech Cement, and Complan are among the title sponsors for the KBC. Co-sponsors include CERA, PharmEasy, IDFC First Bank, LIC of India, and Bharat Matrimony. The Reserve Bank of India is the KBC’s special partner, providing approximately 400 crores in funding.
Telecom Partner
The Telecom industry, which provides approximately 100 crores to the show, is another key sponsor. You might wonder what role a telecom company plays in the program; well, it plays a big role in everything from choosing the participation in the show (by SMSing correct answers to become a contestant for the next KBC episode) to assisting the contestant during the game (by using the network to call the contestant’s helpline).
KBC gets a high rate of sponsors from telecom industries, as the show relies much on public relations. As I previously stated, if the player did not respond to the question, he or she would be given three lifelines. It would be advantageous if a friend’s phone and an audience call were both linked to the cellular network. For instance; Idea Cellular Paid 35 Crore for the show in 2010.
Commercial Breaks
As we all know, ads act as a beneficiary for any type of business, both for the organization and for the audience. You may well have heard that before leaving for a break, the show’s host list-out various sponsored brands like ‘Cadbury-sponsored and co-sponsored by Byju’s.
Furthermore, KBC lasts an hour and a half, during which they air roughly 5-6 commercial breaks. These are the slots in which a company can showcase/telecast its products and services to its target audiences.
Typically, the sponsored brand or any other brand pays a fee to the show in exchange for the show promoting its products during commercial breaks. The above eight advertisers account for 75% of the show’s commercial inventory. The remaining 25% of ad inventory, according to estimates, will be auctioned to spot buyers for over Rs 4 lakh for 10 seconds of an ad.
SMS Revenue
Before participating in the competition, contestants must first answer the questions that have been placed underneath the previous episode’s program. People enjoy getting in and doing their best to answer it by submitting the correct answers to the prescribed or given number.
You may have noticed that a question is posted with the request that viewers answer it and send it to a phone number ‘xxxxxxxx’ below the showtime. Also to register for the show you have to answer a set of questions and KBC charges a small amount to each user sending the SMS which is usually Rs 3/ – per SMS.
Since 2000, Kaun Banega Crorepati has been one of India’s most popular television shows, presently in its 13th season. The Big B, Amitabh Bachchan, hosts this show, in which players are chosen based on their speed in answering a certain question before moving on to the main game.
In the main round, 10-16 questions were answered, with prizes awarded based on the weighting of the questions. The winners receive a monetary award based on the number of questions properly answered via a check, which is credited to the winner’s account in 4-5 business days.
FAQs
Does KBC give full money?
Yes, KBC does provides the full money to the winners and the taxes are paid later on.
How is KBC funded?
KBC receives money from a variety of sources, including the telecommunications network, sponsorship from well-known brands, advertising, and an Internet communication company. KBC earns money mostly from sponsorship from renowned companies such as Byju’s, Cadbury, and Axis Bank. The Reserve Bank of India is a particular sponsor of KBC.
How much does Amitabh Bachchan charge for KBC?
Amitabh Bachchan charges Rs 3.5 crores per episode of KBC.
The world is full of opportunities. Rapid development and growth of our today’s world have opened up pathways for myriad career options. One can always choose from the never shrinking heap of jobs based on their requirements. But, not all jobs possess equal demand for employees.
The fast-paced and innovative society keeps finding new ways to make our life easy on the earth. These new ways are made possible by the working sector where the career opportunities for people are kept introduced or expanded. However, there are a few areas of work or businesses that are flourishing recently. They are growing rapidly and are expected to bring in huge job opportunities. Here are some of such quickly growing sectors that possess substantial career opportunities for people.
Fastest Growing Jobs
Here is a list of the 8 fastest-growing jobs for the current decade:
Around 25% of the world’s population is between 45 and 60 years old currently. This group of people will turn into senior citizens in the next decade and require some sort of assistance to live their day-to-day lives. So the need for Home Health Aides will see a boom in the coming years. Their duty will be to care for elderly people, help them with their daily routines and run errands. Taking care of their physical and mental well-being also forms part of a home health aide’s job.
The demand for Home Health Aide is expected to range from 30%-35% in the next decade. The average annual pay for this job would be more than $24,200.
Wind Turbine Service Technician
The energy requirements of today’s growing world have always been higher than yesterday. Depending only on non-renewable sources to meet the soaring energy demand could be risky and uncertain. So global manufacturers and businesses have started moving toward non-renewable resources. Wind Turbine is one such non-renewable resource that is getting a humungous spotlight in recent years. Many companies have started constructing wind turbines to meet their energy needs.
Therefore the demand for Wind Turbine Service Technicians is moving uphill and is expected to grow up to 68% in the years ahead. It will be one of the fastest and highest-growing jobs in this decade. The average annual pay in this sector would be around $52,910.
Solar Photovoltaic Installers
Solar energy is another major contributor to non-renewable energy. This industry is being enhanced and is gaining popularity among global players. Many developed and developing nations are moving towards the creation of Solar Farms to meet their energy demands. As a result, the need for photovoltaic installers is promisingly high and might still go up by 60%. The average annual pay is expected to be around $44,890.
The job of Solar Photovoltaic Installers requires some skills and training. You need to be qualified in some courses in Solar PV design and construction. Any training or experience in this field would be an added benefit.
As the world paces on the path of development it leaves behind numerous data and information. These past data are collected, processed and analyzed to arrive at a solution that either serves as learning or an example for future business operations. The statistician and mathematician perform this work to help in finding a solution to address real-world problems. They assist right from businesses to improve their sales to governments in formulating plans and policies.
The projected growth rate for statisticians and mathematicians jobs in the upcoming years is expected to be between 26% and 31%. The average annual pay for a Statistician is $91,160 and for Mathematician is $105,030.
Information Security Analyst
Every inch of our growth in this modern era requires the assistance of a digital network. The computer systems, servers and other online platforms help to pace up and expand the businesses globally. This also comes with the disadvantage of security threats like confidential information and data theft. To ensure the safety of data, companies hire Information Security Analyst who prevents security threats and breaches. Their job is to conduct regular audits on systems and networks and establish a safe work environment.
An Information Security Analyst should have a bachelor’s degree in IT and some certification in a related area. The demand for this job will see a growth of 32% in the next decade. The average annual pay would be around $103,590.
Nurse Practitioner
The role of Nurse Practitioners is to take special and additional care for patients. Their primary role is to reduce the work burden of doctors. They are supposed to monitor the patients, conduct necessary tests, examine and diagnose illness, track the treatment process, prescribe medicines if needed, etc., A degree in the corresponding field of study and proper training is needed for this profession.
The requirement for Nurse Practitioners seems to have an increasing trend in recent years. This profession’s projected growth for this decade seems to be around 50% with a median pay of $117,670 per year.
Physical Therapist Assistant
Helping the patients recover from their illness or injuries is the duty associated with the Physical Therapist or Physical Therapist Assistant. It is a delicate profession and had to be handled with extreme care depending on the patient’s illness. The therapist uses exercises, equipment, hand therapy or any physical activities to ensure the patient’s mobility. Similar to doctors and nurses, a physical therapist also has to keep track of the patient’s treatment records and act accordingly.
One needs to have a certificate or license to be a Physical Therapist with proper training. The demand for this job is expected to go up by 32% with an average annual pay of $59,770 for therapists and $28,450 for the assistant.
Software Developer
Since the inception of the internet and computers, the need for software developers had existed. But their boom in the past decade is projected to continue in the future too. Therefore, the demand for software developers will remain high for the next decade. The work of a Software Developer is to design computer applications and programs based on the client’s preference. They should also maintain and ensure the smooth functioning of the existing ones.
The requirement for Software Developers is estimated to grow around 30% in the coming years. The average annual pay is $105,875 per year.
The jobs mentioned above are chosen based on their growth rate and market demand over the past few years. They are anticipated to offer huge career platforms in the upcoming years. Any new entrants, job seekers or job switchers can use these opportunities to improve their well-being and achieve great heights.
FAQs
Which are the fastest-growing jobs?
Some of the fastest-growing jobs are:
Home Health Aide
Wind Turbine Service Technician
Solar Photovoltaic Installers
Statistician and Mathematician
Information Security Analyst
Nurse Practitioner
Physical Therapist Assistant
Software Developer
Which is the average salary of Solar Photovoltaic Installers?
Average salary of Solar Photovoltaic Installers is $46,700 per year.
What is the average salary of Mathematician and Statistician?
Average salary of a Mathematician and Statistician is $92,270.
What career field is growing the fastest?
Some of the fastest-growing career fields are:
Information security analyst
Software developer
Nurse practitioner
Physical therapist
Digital Marketer
What job will always be in demand?
The fields that have experienced rapid growth in the past few years and will never lose their demand are:
Cryptocurrency is creating a lot of buzz these days. It is getting popular and gaining acceptance at various levels. In India, cryptocurrency cannot be labelled as completely legal or illegal. It is kind of a grey area. So, analyzing the cryptocurrency industry in India becomes crucial.
In this article, we will discuss about cryptocurrency industry in India. We have brought you the cryptocurrency market insights, legal issues, and its future in India.
So let’s begin…
“Bitcoin is exciting me because it shows how cheap transactions can be” -Bill Gates
Cryptocurrency is a decentralized digital currency based on a blockchain platform that has been named crypto as it verifies transactions through encryptions. However, it is not any normal digital currency that you may use to pay your bills.
There are two major differences. First, it is decentralized i.e. it is not controlled by any government or third party. This means that all the transactions are made independently not relying on banks. Thus, the value of cryptocurrency does not get affected due to any geopolitical problem.
Second, it is only available in a limited amount i.e. the amount of crypto of any particular cryptocurrency is predetermined. It will never change. For example, the limit for bitcoin is 21 million. So, there will always be only 21 million bitcoins in the world.
Cryptocurrencies are generated through a process known as mining. Thereafter, they can be stored or spent through crypto-wallets. These wallets let you exchange crypto for any particular currency. They also allow you to make payments at places where cryptocurrency is accepted.
Some people like Bill Gates and Elon Musk support cryptocurrency. As per them, it is much better and more secure than physical money. Also, it holds great value for the future.
On the other hand, some people like Warren Buffett and Ajay Banga, consider it a bane to the world economy. They feel that cryptocurrency is the platform for criminal activities.
This actually makes us think is it actually a safe platform? This is especially important when no government or bank is involved for guarantee.
So, let’s take a look at its safety measures.
The transfer or purchase of cryptocurrency is guarded by cryptography. This means that advanced coding is used to safeguard the storage and transaction data. Thus, it is almost impossible to hack this currency. This makes crypto quite a secure platform.
Moreover, blockchain technology maintains distributed ledgers across a network of computers. The records of transactions are automatically updated in the systems of currency holders. This enhances traceability and visibility.
Anyways, cryptocurrency is not a tangible asset. However, it can be called a digital asset. Its applications are still being explored and expanded in financial terms.
Crypto charts represent the price history, volumes, and time intervals of the digital currencies, in graphical format. These are meant to help investors in making better decisions by picking equities and commodities.
Usually, a chart known as the Japanese candlestick chart is used by crypto traders. The colour, shape, and size of the candles in the chart are used as indicators. For example, a red candle is an indicator that the closing price was lower than the starting price. Similarly, a green candle represents that the closing price was higher than the starting price. The specified time frame is demonstrated in the graph.
Analyzing the Crypto Industry in India
As per a report by the Economic Times almost 20 million people invested in cryptocurrency in India, in 2021. Currently, Indian investors hold cryptocurrency worth about $5.3 billion.
The bitcoins touched their all-time highs in 2021, touching a mark of $63,729 on April 3. This has encouraged many small investors from India to focus on cryptocurrency. If the experience and sources of these investors are to be believed, the future of money lies in cryptocurrency.
Bitcoin was the first and most popular cryptocurrency, launched in 2009. It was later followed by other cryptocurrencies named Ethereum, Solana, Dogecoin, Polygon, etc.
In India, CoinSwitch Kuber is the biggest cryptocurrency exchange platform. It has recently touched 14 million users and registered a rise of 3500% in the transaction volume. The leading exchange apps WazirX and BitBns have also witnessed a growth of 1735% and 849%, respectively.
This data certainly speaks a lot in itself. The popularity of cryptocurrency is rising in India and appears to keep rising in the future as well. Also, owing to more number of buyers the demand for cryptocurrency is increasing. This has led to a several-fold hike in its price.
The cost of a bitcoin was about $0.008 – $0.08 in 2009 when it was launched. However, the present cost of a bitcoin is about $40,0000. Further, looking at the pace at which its value is increasing, more people are turning towards this form of investment.
Bitcoin Price
Is Cryptocurrency Legal in India?
On April 6, 2018, RBI imposed a ban on trading in cryptocurrency. However, on March 4, 2020, Supreme Court quashed this ban. Post this decision, RBI has taken back its earlier circular and has urged the banks to follow the decision of the apex court.
The Reserve Bank of India is responsible for managing currency and money transfers in the country. So far, the bank has supported the ban on investment in cryptocurrency. As per RBI, these investments would adversely affect macroeconomic stability.
As per RBI Deputy Governor, T Rabi Sankar, cryptocurrencies do not pass the basic scrutiny. Therefore, it will never be legalized in India. On the question of advanced economies not banning crypto, he said, most cryptocurrencies are valued in dollars and thus, do not pose any threat to convertible currencies of these countries. However, some people refer to it as the statist approach. It is assumed that if private cryptocurrencies are launched in India, RBI would lose the hold.
Presently, RBI is also set to launch their Central Bank Digital Currency (CBDC) in 2022-23. It will be a digital legal tender issued by the Central Bank. It will be the same as fiat currency, only in a different form. It will be exchangeable with fiat currency.
In Union Budget, 2022, cryptocurrency was given legal sanction, virtually. While presenting the finance bill, Finance Minister Nirmala Sitharaman did not refer to crypto as a “currency”. However, she someway gave it a legal status by labelling it as “digital assets”.
She has stated that this decision was taken in light of the phenomenal increase in the frequency and magnitude of transactions. This has ended the uncertainty over the future of cryptocurrency in India.
A heavy tax of 30% has been imposed on the income generated through crypto transactions. Also, this tax cannot be claimed for deduction. In addition, to keep track of transactions 1% TDS will be charged on the payments made using digital assets.
However, since this declaration, a number of questions have been raised. This is because the budget does not talk about regulations of crypto exchanges or investor protection. Also, how can government impose a tax without bringing the Cryptocurrency bill to legalize it?
All-in-all, the government has still not cleared the legal status of cryptocurrency in India.
Crypto Industry Market Size India
Future of Cryptocurrency in India
As per Purushottam Anand, Founder of blockchain law firm Crypto legal, “Taxing income from cryptocurrencies does not necessarily and explicitly legalize cryptocurrencies because income tax is not concerned about the manner or means of acquiring the income.” However, tax provisions for cryptocurrencies can be a step towards legalization.
Prime Minister Modi, in his speech at the “Summit for Democracy” organized by the U.S in 2021 has stated that world leaders must jointly shape global norms for emerging technologies like social media and cryptocurrency. It would help in utilizing these to empower democracy.
Also, while speaking at the virtually organized India-Central Asia summit, Prime Minister has urged a common approach to cryptocurrency.
Further, the general approach of India is going with the majority. As the majority of countries especially advanced economies are favouring this innovation, it is expected that India too will legalize it in the future.
Conclusion
The investment in cryptocurrency has enhanced several folds in India since last year. Even though the legal status is still unclear, it appears that the investors are not bothered by it.
Further, the cryptocurrency banning bill, due for the last winter session, has not been proposed by the government. Moreover, Finance bill-2022 has imposed a 30% tax on the income generated through crypto investment. This appears to be a good sign for the future of cryptocurrency in India.
Overall, it can be said that although the cryptocurrency industry in India is expanding tailing uncertainties cannot be denied.
FAQs
Is cryptocurrency legal in India?
Crypotuccureny is not a legal tender in India nor it is banned by the Indian government.
Is crypto taxable in India?
Yes, income from Crypto and NFTs are taxed at 30%.
Customers tend to purchase their products with various options when they buy through an e-commerce website. This could be through the various debit cards the customer has in their possession, through net-banking accounts, or through cash-on-delivery where they would pay for their products in form of cash once they receive the product you can pay for it next month when you have the money to do so.
There is a new trend that is emerging by the name of Buy Now Pay Later(BNPL). Say you find a good mobile phone worth say 10,000 rupees, but you don’t want to pay for it as it goes out of your budget for the time being (due to a cash crunch or whatever reasons it may exist). But say by opting for the BNPL alternative, the third-party BNPL company would pay the e-commerce site the 10,000 rupees and then you can pay the BNPL company the same 10,000 later.
There are various BNPL companies in India like Lazypay, ZestMoney, Simpl, MobiKwik, etc. Some companies, like Amazon in Amazon Pay Later and Ola in Ola Money Postpaid, have an intrinsic BNPL system built within them.
But then doesn’t it make you think, how do these BNPL companies make money in the first place, given the various instabilities associated with it potentially? How is it different from the conventional credit card? What is the market scenario of companies which offer the BNPL service in India? We will discuss all of these in this article.
BNPL companies make money mainly from two avenues:
Revenue from Sellers
For vendors, BNPL is an alternative payment method (others including credit & debit cards/wallets/Cash-On-Delivery) and thus, they have to incur a transaction fee like any other medium at a particular rate. However, a rate of 2-8% is higher than a normal credit-card discount rate, which is usually around 2.9% for e-commerce transactions and about 1 percent less for transactions made by credit cards in-store.
Thus, BNPL companies have to position their service offering in such a way that it convinces future customers of how enticing their service is, and this would further convince more vendors to buy into the BNPL service they are offering thus increasing the customer traffic.
Revenue from Customers
Most third-party BNPL providers do have their soft-credit checks to avoid giving money to people who have a poor record for repaying obligations, but this is not universal. Here is how BNPL provides monetizing from consumers:
1)Interest- This varies depending on the company. Some providers like Lazypay charge an interest of 10-30% on the “loan” amount, depending on the customer’s credit and duration of repayment. There are other organizations like Split in America which do not charge any interest rate as long as the installments are paid in due time.
2) Late fees- This forms a major chunk of the revenues of the BNPL organization (as high as 30%). Late fees occur when a charge is imposed on a customer for not paying the due amount on time and he thus has to pay later. Think of it like borrowing a book from a library, and then the various fines accumulated for not returning the book.
Difference between BNPL companies and Banks offering Credit cards
In India, there are mainly three differences between BNPL companies and banks that offer credit cards.
1)Eligibility Criterion- Banks have more stringent criteria to give out credit cards (such as their CIBIL credit score, whether they are earning above a certain criterion or not). BNPL companies are relatively less stringent in their criteria. This helps many consumer segments, such as self-employed people and lower-income category sections.
2) Accessibility- Unlike credit cards, where you have to fill various online forms going through multiple levels of authentication, we can get access to the BNPL option through a one-stop authentication using our UPI ID. Another fact to be noticed is there is no waiting time to avail of the BNPL option unlike say credit cards, where we have to wait 2-3 weeks after applying for one.
3)Interest Rates- BNPL companies tend to offer an interest rate of around 28-30% and as mentioned earlier, interest rates are only applied when the customer opts for a longer duration of repayment. Whereas for credit cards, this tends to be way higher than 36-42% annually. Cases of high-risk borrowers do exist in which BNPL companies offer their services at interest rates similar to credit cards.
Currently, as it stands, unlike other developed nations, BNPL in India is still in its infancy. But it has been widely speculated that it could take off in the future.
A market research firm by the name of Redseer estimates that India’s BNPL market will stand at 45-50 billion dollars by 2026 from the measly 3-3.5 billion dollars as it stands right now. The research firm also predicts that the number of BNPL users in the country could rise to 80-100 million customers by that time, from the 10-15 million users it currently has.
As per Upasana Taku, co-founder of MobiKwik, “Only 60-70 million Indians have access to credit today, which means 93% of India has no access to credit”. Thus, there are a lot of opportunities to be exploited by BNPL companies in the Indian market, where millions of people have little access to formal credit. The poor access to formal credit has further been exacerbated by the COVID-19 pandemic.
These things can be noticed in the fact that about one-fifth of the revenue of MobiKwik is due to the BNPL transactions and there has been a 45x growth in BNPL transactions for MobiKwik. Similar trends can also be noticed in other BNPL companies.
Currently, the major obstacle is, unlike those behemoth banks that offer credit cards, BNPL companies can only offer a maximum credit of 100,000 rupees (which roughly equates to 1310.17 dollars). But this can be overcome as long as the reach of BNPL companies spreads all-over India, especially in the tier-2 cities and villages of India.
Conclusion
Thus, this article documents how BNPL companies get to make their revenue in India, how they are different from banks that offer credit cards, and what is their scope in our country. In a country where a lot of people are transitioning from the lower-income group to the middle-class group, this appeals a lot to the Gen-Z and millennials of our country. The more people get access to credit, the more they spend on various goods which leads to the growth of the economy.
FAQs
Which are the BNPL apps in India?
Some of the best BNPL companies in India are:
Lazypay
ZestMoney
Simpl
MobiKwik
ePayLater
Flexmoney
Paytm Postpaid
Sezzle
What is the BNPL market in India?
According to the Q4 2021 BNPL Survey, BNPL payment in India is expected to grow by 89.5% on annually. It will reach US$ 6927 million in 2022.
Which are the E-Commerce website that allows Buy Now Pay Later option?
Top e-commerce websites that provide the payment option of Buy Now Pay Later for complete range of products are:
Farm Bot made a splash in the news, but it’s far from the only farming startup working directly with farmers to improve farming practices. Robots are taking over farms – US tech startups want to bring automation to farms. Robots are the latest farmhands in a resurgence of interest and investment in agricultural tech. Farms are getting into computers and IT once again, with innovations made possible by improvements in sensors and semiconductor technology. Recently, a new wave of tech startups is working hard to automate agriculture with robots and AI. For example, a technology that hoes fields using computer vision autonomously identifies weeds and destroys them with targeted amounts of herbicides or pesticides. It can do this much more cost-effectively than humans can.
Farming is a highly competitive industry. Farmers are under constant pressure to grow more crops and livestock while keeping production costs low. As the world’s population increases, farms will need new ways to boost productivity and efficiency. This may include adopting technologies once thought of as science fiction, such as self-driving tractors and robotic milking machines.
The machinery and technology that farmers use are constantly evolving to make them more efficient. This can positively impact the environment, but it’s also led to some negative consequences, such as the loss of many jobs in farming.
Farmers have invested in drones for aerial imaging, GPS-guided tractors, and other technologies to boost efficiency and reduce labour costs in recent years. In the next decade, robots may be able to help with more complex tasks such as weeding, harvesting and pruning.
The seed-planting machines can operate at night and in the rain, so they don’t have to wait for ideal weather conditions. It’s all part of the farm’s efforts to remove humans from the equation and use technology to boost productivity.
The advances in agriculture have been nothing short of spectacular. Farm equipment gets more powerful, precise and efficient every year. Farms are becoming more automated in almost every way imaginable. Barns have become more comfortable and efficient for animals. Crops are being grown in vertical greenhouses and hydroponically — without soil. There are even robots that milk cows now.
What are the advantages of robots on farms?
Robots can do the farm work without getting tired. Even if they get damaged, you can easily repair them. Robots are more accurate than humans, and they can do a lot of work in a short period. Unlike humans, robots don’t need water or food to survive. Machines don’t have to rest day or night. They can work 24/7. Here are a few of the top advantages of having robots on the farm.
More efficient work
Robots can be programmed to pick the fruits and vegetables in a certain way so that only the best produce is selected and sent to market. This means that farms will waste less food. After all, it will no longer need to be picked by hand, which requires more employees and results in wasted produce because it was picked incorrectly or bruised during transport.
Reduced labor costs
Robots are becoming more common in factories because they can perform more efficiently than human workers. The same is true on farms. Robotic equipment can be programmed to handle tasks requiring precision and speed while also performing repetitive tasks without getting tired or injured. This reduces labour costs for farmers with robotic equipment deployed on their farms.
Reduced risk of injury
Farms pose many potential hazards for humans – from sharp machinery and heavy equipment to dangerous chemicals and inclement weather conditions. By automating certain tasks that require human interaction with these dangers, you can reduce the risk posed to your employees – keeping them safe from harm.
Increased productivity
As well as working longer hours than humans for minimal cost, robots can also increase productivity levels by performing tasks faster and more accurately than their human counterparts.
They’re cheap
Robots can be programmed to do a certain job, and once they’ve been programmed, they won’t need any more training; they’ll just do the job repeatedly without getting tired or bored.
They’re fast
Robots can work 24 hours a day, seven days a week, without any breaks. This means that a farmer can get more work done in less time. In addition, the faster you complete your work, the less money it will cost you in labour costs and equipment wear and tear.
Big data and machine learning algorithms can help farmers increase harvests while reducing their environmental footprint. The conventional farming techniques and methods that we’ve used for decades are becoming obsolete — machines and computers are taking over farms. So what is happening with farm bots? Let’s look at these companies and their technologies.
FarmBot – The First Open-source CNC Farming Machine
FarmBot – Agritech Startups in the US
FarmBot is an open-source CNC farming machine and software package designed for small-scale personal farming. It uses a web application and Arduino-powered firmware to control a set of stepper motors that move a tool head around a patch of soil, performing the various tasks required for farming. The goal is to empower people to grow food with confidence in their backyard or community garden by offering you an easily deployable, scalable, and customizable robotic gardening system.
The Farmbot team’s vision is that one day farmers and every person will have access to healthy food grown with love at home, in their community gardens, and on local farms — regardless of their background or income.
Abundant Robotics – Apple Harvesting Robot
Abundant Robotics – Agritech Startups in The US
Abundant Robotics is working on a harvesting robot for apples. The company’s prototype can identify and pick apples with more precision than a human.
The robot uses a vacuum system to pick the fruit from the tree. Technology does not appear to damage the apple or the tree. However, the company says that it needs further testing before making this technology commercially available.
The robot uses a combination of cameras and computer vision software to find good apples on trees and suction cups to grab them without damaging them gently. It can pick an apple every 12 seconds and works day and night.
The technology is limited to apple growers in Washington state but hopes to develop robots that can harvest various soft fruits and vegetables.
Burro formerly (Augean Robotics) – Agritech Startups in The US
Burro, formerly known as Augean Robotics wants to replace herbicides and manual labour with fleets of robots that patrol vineyards, orchards, and farms.
The Augean robot looks like a mini tank on treads. It has two wheels, each with vertical blades that cut down weeds as it moves along the rows. It also sprays vinegar to keep weeds from growing back.
The idea is that farmers would use a fleet of wheeled drones that would be able to successfully detect weeds and kill them, allowing farmers to increase their crop yields and earn big.
Boston Dynamics – Atlas Robot
Boston Dynamics – Agritech Startups in The US
Boston Dynamics’ Atlas robot can do an impressive range of activities, from tai chi to parkour. And now, it can help out around the farm.
Boston Dynamics has released a video showing Atlas carrying a crate of lettuce heads across an obstacle course and then placing them in a box.
Atlas is a bipedal robot that stands 5-foot-9 and weighs 180 pounds. It’s designed to tackle human-like tasks, including lifting heavy objects, opening doors, and walking in rough terrain.
In the latest video, Atlas steps over hurdles positioned in its path. They then balanced on one foot while picking up the crate using the other foot. It then bends over to place the container into a box.
Iron Ox – Autonomous Growing Facility
Boston Dynamics – Agritech Startups in The US
Iron Ox, a California startup, deploys autonomous growing, harvesting, and delivery for local farms.
The Iron Ox approach has some similarities to the indoor farms you’ve probably heard about: The produce is grown in a warehouse-like building that allows for year-round cultivation.
But there are several significant differences. First of all, Iron Ox’s facility isn’t stacked with trays of plants under grow lights. Instead, it uses hydroponics, which involves directly exposing the plants’ roots to nutrient-rich water rather than soil. The company says this approach allows its system to cultivate plants with the same taste and nutritional qualities as those grown in open fields or greenhouses but use 90% less water and 99% less land.
The company grows greens in climate-controlled shipping containers (they are, after all, based in Silicon Valley) using an AI system called Angus. Then, according to each plant’s specific requirements, Angus monitors the plants’ needs and sends them what they need — water and nutrients.
Blue River Technology – A Technology That Hoes Fields Using Computer Vision
Blue River Technology – Agritech Startups in The US
In the 1950s, when a man named John Deere invented the first tractor, he probably did not think that a self-driving tractor would be hoeing fields one day.
Blue River Technology is a tech company that uses computer vision to help farmers make faster and better decisions. As a result, farm management should be more economical and less environmentally harmful. Still, many require regular manual inspection of crops—a time-intensive process with a high margin of error. Blue River Technology has created see-and-spray technology that allows its machines to distinguish between crops and weeds. Once they know what’s what, they can spray herbicide at just the right moment through real-time analytics software.
The idea is cashier-less stores by Amazon. The company has created see-and-spray technology that allows its machines to distinguish between crops and weeds. Once they know what’s what, they can spray herbicide at just the right moment. This will enable farmers to save money by only spraying the plants that need it.
The promise of Blue River’s tech is huge: less waste, more productivity, and lower costs for farmers.
The future of farming looks like a science fiction movie, with robots planting crops, drones monitoring fields and satellites providing information from space. But are robots taking over farms?
Not quite yet. Despite the many advancements in technology, there is still a significant need for people on farms. Many tasks still require a human touch, like planting delicate crops and harvesting them.
The world of farming is changing. Advances in technology, including robots that can be programmed to work together, have allowed those working in the fields to get more done with less labour. These innovations are making farming more efficient and, at the same time, cheaper for farmers.
Farm automation is already revolutionizing the way farming is done. For example, robots are now being used to help farmers plant and harvest crops more efficiently. The future of agriculture is even more exciting, as modern technology will soon allow farmers to do things they couldn’t even dream possible with no human intervention at all.
Conclusion
US Tech Startups making Farming Robots will change the world with technologies of the future.
Innovation can make businesses more efficient, with substantial cost savings. Farms could benefit immensely from automation. Their use has already helped farmers, and their numbers are snowballing. Automating farming will lead to immense cost savings, which will allow businesses to focus more resources on the more pressing issues they face. Agricultural robots are already here, and there’s no sign that they’ll stop making life farmer’s life easier any time soon. We should pay attention now because agricultural automation is on the horizon. Robots will revolutionize farming, and they will do it faster than you’d think. Fields that formerly needed thousands of workers to plough will soon be mechanized. Instead of being job killers, AI farms could provide work for thousands of people in the future, managing the robots and maintaining them, among other things. Automating farming will lead to immense cost savings, which will allow businesses to focus more resources on the more pressing issues they face. Humanity will be better off with robotics in the future, and the world is excited to witness this.
FAQs
Are robots used for agriculture?
Robots are used for many purposes in agriculture. Some examples are:
Harvest Automation
Autonomous Growing
Orange Harvester
Apple Harvester
Autonomous mowing
Lettuce bot
Weed-killing
Which are the companies working for robotics farming?
Some of the best Robotics Companies working for robotics farming are:
Blue River Technology
Harvest CROO Robotics
Iron Ox
Boston Dynamics
Trace Genomics
Burro Robotics
FarmShots
Abundant Robotics
What are the top technologies ruling Agriculture?
Top Technologies ruling agriculture are:
FarmBot – The First Open-source CNC Farming Machine
Startup acquisition seems to be a great trend for many big companies. The companies or the startups that have made it big likes to indulge themselves in the game of acquisitions.
So, when a small startup is doing well in the market but does not have the capability to sustain that, bigger companies tend to take control of it. However, this does not mean that the big companies intend to turn them into successful businesses.
Razorpay is one of the startups that has made a huge success and now has jumped into this field of acquisitions. Over the years, it has acquired startups like TERA Finlabs, Opfin, and more.
It is India’s top and leading company founded in 2014 by Shashank Kumar. Along with him, Harshil Mathur is the co-founder. The company is based in Bengaluru, Karnataka.
It allows you to use any payment mode. This includes debit and credit cards, UPI, mobile wallets (Mobikwik, JioMoney, etc.) multi-currency, and more. It helps businesses and traders to automate bank transfers, bills, checks, salaries, etc.
It is a digital system of payments that acts as a link between many apps. The decreasing role of debit and credit cards has given rise to the idea of auto-payments. In this regard, Razorpay offers features like UPI autopay.
It has administrative features like reporting, payout time, and dispute resolution. Security features like two-factor authentication, fraud protection tools, and more.
Along with these, other features include E-commerce integration, application programming interface, accounting software integration, etc.
About Razorpay
List of Startups Acquired by Razorpay
Startup Acquisition is a process where bigger companies buy an entire small startup or take the maximum authority over it by buying most of its shares or equity. This usually happens, when large companies want to remove their competition in the market.
Also, many startups begin their businesses with the hope of ultimately selling them in the future. This is because, after a point of time, the growth of certain startups becomes stagnant. So, going under the shelter of big companies help them to stay afloat and get better exposure.
Razorpay is one of the most noted companies in India. This payment platform made online transactions super easy and efficient. Its efficiency, great strategies, and right funding at right time made it a Unicorn startup in 2020.
Over the years of its existence, it has made a total of five acquisitions. It has also made investments in NextPay, Shiprocket, and MSMEx.
The following is the list of startups acquired by Razorpay:
IZealiant Technologies
Founded: 2015 Acquired: March 2022
This is the most recent acquisition made by Razorpay. It is a Pune-based fin-tech startup founded in the year 2015 by Prashant Mengawade. It provides for payment transaction processing by banks, traders, and processors.
The startup provides application programming interface empowered, cloud-ready, and mobile-first payment processing products. The businesses are able to receive, process, and distribute the payments smoothly with this startup.
It offers features like multi-factor authentication, 3D secure 2.0, E-commerce acquiring, Mobile POS and Micro ATM, and more.
Razorpay announced the acquisition of the startup on the 16th of March, 2022 for an undisclosed amount.
It is a Malaysian direct debit payment startup founded in the year 2018 by Zac Liew and Steve Kucia. The startup is designed to aid and ease the collection of recurring payments.
The startup tends to make settlements between customers, merchants, and their banks. It manages transactions and also collects cash receipts. It ensures all this by building technology on top of the payment framework.
It offers features like card payments, direct debit, payment collection, payouts, management of subscriptions, billing, and more.
Razorpay announced the acquisition of this startup on the 8th of February, 2022. It acquired the startup for an amount between 19 to 20 Million dollars.
TERA Finlabs
Founded: 2017 Acquired: July 2021
It is a startup that offers businesses financing solutions. It was founded in the year 2017 by Pradeep Rathnam and Harshil Mathur. It is based in Bengaluru. It provides technology, risk, and capital solutions.
This risk technology startup offers digital lending solutions for the organizations of finance and customer technology companies.
It is known for its great specialty in digital lending. It specializes in data-driven risk management, credit underwriting, and capital solutions.
Razorpay announced the acquisition of the startup for an undisclosed amount on the 19thof July 2021.
Opfin
Founded: 2017 Acquired: November 2019
It is a payroll management startup founded in the year 2017 by Anuj Jain. It is based in Gurugram. This enables the customers to custom-make their payment workflow to be as hands-off or hands-on as they want.
The startup is super helpful for small businesses. Its interface is perceptive and simple to use. This discards irrelevant jargon and unwanted steps.
It offers a wide variety of features like compliance management, attendance management, approval process control, application programming interface, attendance tracking, and more.
Razorpay announced its acquisition of it on the 23rd of November, 2019 without disclosing the amount.
It is a fraud detection startup founded in the year 2016 by Shashank Kumar. The startup rules out scams and frauds in digital, e-commerce, and banking transactions by using Artificial Intelligence. It is based in Gurugram.
The startup provides automatic detection and prevention solutions by using AI, big data technology, location profile, and device fingerprinting.
It offers features like risky order profiling, verification of shipping addresses, model customization, intelligent automation, and more. This helps to cut fraud, keep the rate of interest in check, and improve success and profitability.
Razorpay declared its acquisition of the startup on the 5thof August, 2019. This was the first acquisition made by Razorpay for an undisclosed amount.
Conclusion
Over its eight years of existence, Razorpay has surely made great progress and created a significant name for itself in the market. It has not only made itself successful but has also helped various other businesses by making their processes easy and efficient.
Since its birth, it has made a total of five acquisitions. All these startups have helped Razorpay to become even more skillful than it was on its own. These have strengthened the company more in the fields of banking services, neobanking, payout processing, e-commerce fraud detection, and more.
FAQs
What are the startups acquired by Razorpay?
Razorpay has acquired 5 startups:
IZealiant Technologies
Curlec
TERA Finlabs
Opfin
ThirdWatch
Who is the founder of Razorpay?
Shashank Kumar and Harshil Mathur are the founders of Razorpay.
Assume you’ve got a strong desire for pasta but need to replenish your medication supply. You immediately realize that you need to collect your laundry for a big event. Would it not be wonderful to do everything on a centralized screen? Dunzo is exactly that.
Dunzo is an on-demand, hyper-local multi-delivery care app. It provides anything to its customers for a modest shipping cost. For example, if you forgot your MacBook at work or some documents at home, it can get them to you on demand.
Alternatively, if you wish to shop for food from the market or a hoodie from the retail outlet, the multi-delivery services provider will get it for you. It’s worth noting that none of these diners, shops, or retail chains is owned by the firm. Its business strategy is based on shipment.
Ankur Agarwal, Dalvir Suri, Kaber Biswas, and Mukund Jha co-founded this incredible Bengaluru venture in 2014. They took orders via WhatsApp and received significant attention from early adopters. However, as the company and its clientele grew, they instantly transitioned to an omnichannel framework, securing visibility through a Mobile app, an iOS app, and a web page.
Dunzo is an on-demand distribution network that has revolutionized how folks buy, exchange products, and travel. In today’s market, it’s an example of a two-sided channel. Buyers are on one end of the link, and sellers are on the other. It serves as an eCommerce platform, bringing together buyers and sellers.
It adheres to a hyperlocal business model, ensuring app progress and longevity. It runs things via a phone app and a webpage. In the hyper-local market, the portal provides on-demand concierge. The firm runs using a data-driven approach that links shipping suppliers with clients in their direct proximity.
Dunzo App
Clients can even talk with the supplier via the chat room; they send pertinent product photos and interact effectively. The portal gives Dunzo money and a variety of other electronic payment methods. It makes great use of AI. for its clients, assisting them in providing a contented and sleeker interaction when people request it.
As the market grows stronger, the firm gains traction, rivals arise, and the industry becomes far more competitive. It presently faces competition in the market with well-known brands such as Swiggy and Grofers.
How Does Dunzo Make Money?
Dunzo has divided its earnings into 5 different channels.
Transaction Fee– It charges a pertinent fee from the alliance shopper order, which can range between 15% and 30%.
Shipping Fee– Shipping fees vary from Rs. 10 to Rs. 60, based on location & order value.
Uptick cost – Also known as Surge pricing is used when demand in a specific location rises.
Service – Repair and maintenance, homecare, and so on.
Miscellaneous Bracket– It is known as a #kuchbhi demand, according to Biswas, the creator of Dunzo. The role determines who is in charge of such sections.
The following are some examples of #kuchbhi requests:
Take a 15 seconds clip of my apartment as it is being built to ensure that everything is working perfectly.
Please bring my blazer from the apartment.
Dunzo benefits from a larger consumer snippet because it’s in the Hyper-Local Delivery biz. Its clientele can span from a 65-year-old guy who needs his homeopathy delivered as promised to a 12-year-old youngster who borrows his mate’s classwork notebook.
Dunzo Marketing Plan
It experiences numerous challenges in its advertising campaigns. Its main aim is to share awareness of the app’s versatility by publicizing it via varied touchpoints. However, because most biz is done online, it effectively uses its internet site by building a reputation distinctive to its customers.
Bollywood quotes:
It employs Bollywood buzzwords and dialogue to pique the interest of the audience. The daily alerts are usually interspersed with beautiful songs or movie titles.
Promoting through memes:
It’s a well-known trend follower in memes and adverts. It quickly adapts to the web, and its fresh meme-based promotional tweets quickly become popular.
Promoting on Social Media:
Its content is frequently vibrant and synchronized with the logo’s primary green or black colors. On touchscreens, the label forms a powerful interactive world that instills optimism. It prefers Instagram, Twitter, and Facebook. It attempts to disseminate everyday life tweets through the use of their totems, Harri and Dunya. These characters, attired in Dunzo gear, portray Dunzo-thoughts partner’s in everyday situations. The app-based delivery company is on its way to Chennai.
Last month, the portal launched in Hyderabad. It enables clients to generate a list of dispatch tasks. It’s focused on building brand awareness among its army. The aim is to show the activities and cohesion of the multiple brands as they’re all together in this time of turmoil. It expresses employee personal info and emphasizes the importance of their hard graft to keep things running. Its collaborators’ organizations were also disclosed.
Hyper-Local Interaction:
Because it handles hyperlocal stock, it is critical that the urban areas where it renders care are adaptable. It accomplished this by utilizing illustrators as well as modifying actual pictures. The label aspires to capture the heartbeat of the town and to become a factor in society.
Twitter:
It relies heavily on Twitter, like any label that provides customer care. With two-way interaction, they can ensure clients feel respected. It has lately become more pertinent than ever, as folks have more queries about shipments during the pandemic. It also aids in the promotion of brands and processes.
The Ordinary’s Content:
One of the most striking features of its online interaction is the way they generate content from everyday objects. These are mostly food-themed, which performs well due to the subterfuge and approachability. It helps users in seeing these items in a fresh way.
Uniformity and Promotions:
Dunzo was inspired by a popular Instagrammer named ‘Dude with a sign,’ who stayed in crowded locations with signage that discussed specific aspects such as informing people. It was one of the first labels to use the layout in their interaction. It’s since been used repeatedly in their interaction. Its #90sRedun advert evokes nostalgia. It harks back to such classic ads by remaking them with label assimilation, rewriting catchphrases with a flair, and using the heritage of these labels to travel us back to the good old days.
What Is Unique About Dunzo’s Business Model?
Though most rivals bring on a slew of suppliers and middlemen and then expect their users to locate a means around the facilities, it’s solely responsible for delivering the order to the consumer’s location.
Its business plan is very flexible and adapts efficiently. For instance, when they noticed that a huge chunk of their clients was repetitively ascribing the same job, they introduced a repeat-task toggle.
Every startup faces difficulties, and Dunzo was no exception. Initially, the venture had to deal with budget problems, an ineffectual delivery mechanism due to staff taking longer to finish tasks, trouble handling mobile and web apps, and increased costs.
Dunzo aspires to be India’s hyperlocal Amazon & notable e-commerce hub. It strives to be a Unicorn with $1 billion worth. It intends to enlist vendors across niche spots and communities in 25 Indian cities in order to achieve a lucrative position.
It intends to navigate international waters using a hyperlocal shipping business strategy in densely populated areas such as Singapore, Dhaka, and New York. It is recreating the notion of a 15-min city by increasing the accessibility and availability of services/goods.
FAQs
What is Dunzo’s business model?
Dunzo follows a hyperlocal business model approach where the customer demands a product using the app and the delivery person delivers it from the nearby store.
It is super easy to recognise brands. In fact, it is the sole reason why some companies are known as brands. The fact that they are easily recognisable, makes them a big brand. Companies try hard with all sorts to establish themselves as a brand but I kid you not, few of them are actually able to build an empire. Thousands of companies, all around the world survive and die every day, it is just a certain mix of vision and action which makes some of them the success that they seem from a distance.
The cream of the cream is the one that tends to become a super identifiable brand. One of the most identified companies in the world is Nike. The swoosh logo is something that you just cannot ignore, you know it instantly when you see it.
There is a lot of work that has gone behind this brand building. All that work is worth it when we see the current valuation of the company. But here is a trend that we can see in the company. The famous shoe brand is trying to get more surface area in the life of a customer. There are speculations about Nike going to enter the luxury home segment. This article talks about the same. We will check if the news is true and if it is true, then to what extent. Let us get right into this,
We will start off with the topic of branding. Every company in some sense or the other tries to create a persona of a brand. A brand is the perceived perception of a company in people’s minds which helps boost loyalty. Let us define branding in a more formal way and see where the shoe mogul Nike stands in the definition.
Branding refers to the process and all the actions taken thereof in order to create a familiar and trustworthy image of a company. It is creating a strong, valuable and positive perception of a company in the mind of a consumer.
Apart from all the actions and services that the company tries to give to its consumers, There are many more elements that constitute the brand building. Those elements include Logo, statement, design throughout the customer journey, and a reliable omnipresent theme.
People might ask about the function of good branding, which is a legit question. Branding works in creating a persona of the company that stands apart from the rest. This creates an identifiable difference in the market which leads to more people recognising the company. The end goal of which is obviously to increase sales. Thus, branding is a silent salesman.
A Brief About Nike
The company behind the world-famous swoosh logo probably needs no introduction but we will do it for the uninformed. Nike is a sports brand, which specialises in all sorts of sports equipment. The most famous product among all the products is the shoes. They are probably the most famous and most sold shoes ever. The branding of this company is robust and is probably not going to go anywhere in the future.
This sportswear brand takes the branding of its products very seriously. One of the most iconic moments that is often lauded in this company was the partnership with Michael Jordan. The Basketball federation, or the NBA, cancelled the use of Nike shoes (Air Jordans) in the game and imposed a fine of some thousand dollars on it. Guess what Nike did afterwards, they paid the fine imposed on the shoes. This incident advertised the shoes even more and today Air Jordans are the most sold shoes ever. This is one of the many stories which prove the efforts that Nike did for establishing itself as a brand.
They also manage the demand and supply of their goods in such a manner that if you get a pair of shoes, it will feel like a victory for you. They have the hottest sneakers and the company makes it hard to get hands-on with the product from time to time, to induce further demand for the product.
People like to buy things that are not available, this is a good mantra that the brand follows. Making their top products move through shelves is a great demand puller. It pulls the demand by making products harder to find, which in turn makes people want them more. Following this strategy of infusing demand, the sportswear brand has been able to set aspirations of surpassing even the top brands like Louis Vuitton and Gucci.
There is more than just that, Nike is now setting the bar of aspirations higher than ever. They are trying to get out of the line from their product and want to experiment with new forms of market. Keeping in mind the huge demand with which the company operates, increasing market breadth seems to be a good option.
“It’s not like people aren’t spending money on high-priced items,” Business Insider retail analyst Cooper Smith told Complex in a conversation. “It’s just that their preferences for lifestyle and their preferences for fashion are changing.”
In simpler terms, people are willing to pay a premium for things that they really want. If a company can fit into this sweet little spot, where people want their product to great extent, it can earn greater revenue. Apple does it, Nike is the most recurring example in this space. With this advantage, they can also try to be more than just a sportswear brand, they can enter into new and new markets.
Nike can take great advantage of its already built market. It can cross-sell more than just shoes and sports equipment. According to some reports, it is planning to do that sometime. Nike is probably planning to be a fashion house. Let us see what it means to be a fashion house first.
What is a Fashion House?
Fashion is probably the most misunderstood term all over the world. Some people call it art, or a personality statement. Some just dismiss it saying it is a waste of time and money. This problem has always persisted up until now, some call it art and others just dismiss it as something temporary. Whatever may be the verdict of the customers all over the world, it is quite true that companies earn a lot of money from the fashion world. So what does it mean when someone identifies a company as a fashion house?
A fashion house is a one-stop destination for all things fashion. As the name suggests, it is a house of fashion. You can find whatever you need to, in a store of a brand which is identified as a fashion house. It has shoes, apparel and accessories of all sorts. It is a dream for many companies to include a lot of products in their product list. Not everyone can pull this off.
Nike is taking the benefit of its huge fan base. The perception of Nike is no doubt the quality and the pricing that they offer. It already has a lot of shoes and sports materials. They range from being inexpensive to some of the most expensive shoes of all time.
There is Air Monarch is a common Nike that can be seen everywhere and the range goes to HyperAdapt 1.0, which are probably the most expensive shoes from this sports brand. Standing at this intersection of works, Nike can really take advantage of their pedestal. They can go on and then maybe become a fashion house for sure.
Nike’s Plan to Become a Fashion House
Nike has, over the years, managed to create a brand of its name. The famous swoosh logo is now easily recognisable all over the world and this makes this company stand really unique in position.
As of now, there were some speculations about Nike moving to become a more full-fledged fashion house. The company as of now is focusing mainly on shoes and all sorts of sportswear, equipment etc. but watching its current valuation and the amount of influence it has on all over the market can be a big reason for the company moving to become a fashion house. Here we will see how the shoe business has been working over something and what Nike’s relations have been like with the market in which it operates. Starting off with Foot Locker, a marketplace for fashion products.
Nike is Foot Locker’s biggest brand partner. Also, Foot Locker is also one of Nike’s biggest wholesalers. They both have been surviving and thriving on each other’s shoulders. Now the situation has changed and we will be seeing something over here in their relationship.
Foot Locker Store
As we all know that Nike is known to create a vacuum of demand. It simply means that Nike stops the supply of its most demanded shoes to increase and induce more demand, which has not been good for Foot Locker. Foot Locker has recently mentioned that they have lost about a quarter of its market value since the shoewear brand has cut supplies of its most demanded footwear.
Foot Locker said that no single vendor — Nike is its largest supplier — would account for more than 60% of the chain’s total purchases this year, down from 70% in fiscal 2021 and 75% in the year earlier.
The move of Nike to shorten its supplies is not a new thing, it has always existed and retailers are always worried about the demand that the company pulls toward itself. This method or strategy of Nike helps it to control more of its pricing and to become more profitable. This is good for the brand image on a larger level and it makes the company a price maker.
Another reason for Nike to follow the same strategy is that it enables it to sell more via its designed applications and websites. Selling through its own built ways, helps the company to increase sales and thus forge better relations with the customers. This is one reason why Nike tries to sell most shoes on its own and well-built network of distribution channels.
Nike Retail Store
Luxury adviser Mario Ortelli estimates that for multi-billion-dollar luxury brands, direct-to-consumer channels account for more than 90% of sales, on average. For Nike, the share is nearing 40% and could reach 60% by 2025.
It is for sure that Nike will continue to focus on the shoes, which are the star product for the sportswear company. On the other hand, the company is eyeing other opportunities to grow its product line. They want to be more than just a sportswear brand, it is speculated that they want to become a full-fledged fashion house.
In the shoe department, they will always be a fashion retailer as their mainstream work. There will be plenty of limited edition pieces in the future also that will increase the brand value for the company. An increased brand value will foster more partnerships and collaborations with established fashion and luxury houses. Nike has upscaled itself by partnering with luxury fashion brands like Louis Vuitton, Dior, Supreme and Off White.
Nike Collaboration with Supreme and Louis Vuitton
In a recent report, some have also speculated that Nike is also looking forward to buying some established names in other industries as well. For example, it is reported that Nike is eyeing a brand named ‘Peloton’, which is a brand operating in the luxury home fitness space.
Peloton
Foot Locker, which we mentioned earlier has to look out for something to fill the gap that has been created as the Nike inventory has shrunk. This track will take some hard work off Foot Locker as they are the biggest wholesaler for Nike. The other aspect of the problem can be that Foot Locker has an opportunity to shift to another domain. The retailer is getting exclusive access to Reebok’s basketball footwear.
From controlling the demand for their most selling shoes to eyeing companies that are into other luxury products segments, Nike can be seen planning to go more into the luxury segment.
Getting on the ride to maintain its brand value and spreading its wings in all directions of products, it will be good if this fashion retail goes full throttle in the fashion line. Nike has already made one smart move. The current challenge for the company now is to make a more theatrical shift towards becoming a fashion and/or luxury house.
A fashion house is a company that operates its products in a fashion line. A luxury fashion house is a fashion company that operates in the somewhat same segment of fashion products like shoes, bags and accessories etc. However, a luxury fashion house’s products are expensive and are designed for people who want to make a fashion statement and do not mind paying extra for that. There are many benefits of becoming a luxury fashion house, here we list some of them,
More products
A brand that offers the functions of a luxury fashion house, has a lot more products than a brand that is focused on one product line. This helps customers to get more products under one roof, it helps ease the weight of shopping for the customers. As customers go through each aisle of products, the chances of buying more products increase and thus, the profitability.
Previous Goodwill
Brands that are already established have some goodwill attached to themselves. For example, if Apple associates itself with a sound company like ‘Beats by Dre’, then their goodwill will be transferred to the company too. This is one example of how previous goodwill can be transferred to other participating companies and their products. As the goodwill is transferred, revenue is multiplied. In the luxury segment, if someone can transfer their old value to a new venture, it can be a great deal maker for the company.
Trust
This is an extension of the above point. Goodwill when transferred, also transfers the trust that the brand has built in the past. When this happens, when new products work with the same old trusting partnership, it increases customer loyalty. The more a consumer is loyal, the more the business he/she will create for the business.
Conclusion
Nike has always maintained its image as a sportswear brand in the eyes of the public. The swoosh logo is a super identifiable image from the brand, making it different and distinguishable from other brands. The “Just Do It” tagline fits the goal with which the company operates.
Every branding activity just falls in place as the company manages its stock and creates trends. It is very apt to say that Nike is the torchbearer for the sneakerhead culture in and around the world. With this much power to hone, and a future full of opportunities, Nike can be more than just a sportswear brand.
Nike can be a luxury fashion house if it capitalises on the right resources. As per the reports and watchers, the brand has been controlling the supply of its most rated shoes and thus increasing revenue. The company is also said to be eyeing other brands that deal in luxury home items. For example, Peloton, which is a luxury home fitness company, deals in fitness equipment. Nike can take advantage of its current position and leverage from the place where it now stands. The benefits of becoming a fashion house are immense.
An already established brand can benefit from becoming a luxury fashion house, as it will generate more revenue, and there will be benefits and multiplication of goodwill and trust. Nike sits at a leveraged position and can take advantage of that, if done correctly, it will surpass many famous luxury houses.
FAQs
Who is the fashion designer for Nike?
Tinker Hatfield is one of the most popular designers for Nike.
Is Nike turning into a luxury brand?
Yes, with the recent collaborations of the sneaker brand with Louis Vuitton and controlling the supply and demand of its popular sneakers it seems like Nike is becoming the next luxury fashion house.
Marriage is a once-in-a-lifetime concept because it is such a significant life event. Typically, all parents will set aside some funds for their children’s weddings, which may occur shortly. As we all know, parents invest their earnings for the benefit of their families and their children’s futures.
So, what exactly qualifies as saving? Imagine saving up all of your money for a big event, from invitations to arranging the wedding in a 5-star hotel with lavish decor, providing A-class cuisine, hiring professional photographers, and wearing designer clothes as wedding attire that would undoubtedly look lavish in the eyes of guests, and would undeniably be the talk of the town for some time.
While no one considers the long-term consequences of such extravagant spending for one day, such as paying off a loan (if one was obtained), making future investments, and so on?
Yes, I agree with the concept of a once-in-a-lifetime event, but spending your entire life’s hard-earned money on one day with zero returns is absurd. Enrolling in a ‘Marry Now Pay Later’ policy, on the other hand, will help you in a variety of ways, as you will only have to pay a minimal amount as an EMI on an installment basis, rather than investing all of your savings into one lump sum, and you will have the same amount of excitement on your wedding day.
A wedding can easily cost an arm and a leg, and an Indian destination wedding will almost certainly last a week. From invitations to Haldi, engagement, and wedding functions in a luxurious resort, to meeting all of the guests’ requests for their stay, cuisine type, and other demands, tons of money.
As a result, several Indian companies have come up with the concept of a ‘Marriage loan,’ which is similar to a ‘personal loan,’ but where the funds are solely used for marriage purposes. Like the policy name ‘Marry Now Pay Later’, where you will spend all the money on your wedding and pay off the sum in later days as EMIs.
What are the Benefits of Marry Now Pay Later (MNPL)?
Availability of Maximum Tenure:
MNPL provides nearly Rs 50,000 to Rs 40 lakhs as marriage loan for length & flexible tenure of about 12-60 months. Plus comes with instant pre-approved wedding loans, within one day of submission of the required documents relating to the policy.
No Collateral Required:
Another major benefit is that no collateral support is required to enroll in MNPL policy. Just proof of income and the name of the company or organization you are working in, to get the policy sum.
No Liquidation of the Asset:
To pay for a wedding, some people choose to surrender their fixed deposit or liquidate their savings/assets early. However, in the case of MNPL, you can pay the due amount from your salary, without disturbing your investments or savings.
Reasonable EMIs:
One of the reasons I recommend MNPL is that they charge a reasonable interest rate on loans taken out. The interest rate ranges from 10.50 percent to 20.40 percent, with EMIs varying between institutions in some situations.
Marry Now Pay Later (MNPL) Schemes in India
Hotel Royal Orchid chained Bajaj Financial services company
To make wedding planning easier, Royal Orchid Hotels has launched the Marry Now, Pay Later scheme. Weddings will be held at Royal Orchid Hotels’ leisure resorts in Bengaluru, Goa, Mussoorie, and Jaipur, with the venue, decorations, catering, lodging, music, and transportation all taken care of. Royal Orchid has partnered with Bajaj Finance to offer zero-down payment wedding financing, with the first EMI due 30 days after the booking.
HDFC
HDFC Marriage Loan
HDFC Loan product is just what you’re looking for to help you pay for your dream wedding. Customers can choose from several EMI repayment choices and term lengths for their marriage loan. To help you organize the wedding, there’s also an uncomplicated online approach and speedy disbursal.
You can borrow anywhere between Rs 50,000 and Rs 40 lakh with an HDFC Bank personal loan for weddings, which has a flexible 12-month to the 60-month repayment period.
HDFC Bank provides personal loans for weddings based on your monthly pay and the company you work for, so you can acquire one without putting up any security or collateral.
ICICI
ICICI Marriage Loan
You can realize all of your wedding days desires with an ICICI Bank Marriage Loan. The interest rates on an ICICI Bank Personal Loan for a spectacular wedding start at 10.50 percent*p.a. Loans ranging from 50,000 to 25 lakhs are available to you. It only necessitates a small amount of paperwork and does not necessitate any kind of security or collateral. The ICICI Bank Marriage Loan has various repayment choices, allowing you to repay the amount over a period of 12 to 60 months.
LazyPay
LazyPay Marriage Loan
LazyPay relieves you of the stress of wedding planning. They provide personal loans up to one lac in a matter of minutes. All you have to do now is obtain the wedding loan funds and begin planning your dream celebration! Start your trip to a great life with a marriage personal loan.
Fullerton India
Fullerton India Marriage Loan
Fullerton India offers a private loan for marriage with interest rates as low as 11.99 percent* per year. The precise interest rate you’ll be paid is determined by your financial profile, which includes your good credit score, the type of your job, and your previous contact with us. The interest rate offered is also influenced by the loan term and the amount chosen. There may additionally be a processing fee of up to 3% of the loan amount.
Registering in a ‘Marry Now Pay Later’ insurance will benefit you in several ways, including the fact that you will only have to pay a little amount as an EMI over time rather than investing all of your funds in one lump sum, and you will experience the same level of excitement on your wedding day.
FAQs
What are the requirements for a marriage loan?
Only salaried employees are eligible for a marriage loan. The staff of select private companies and PSU employees are eligible for Personal Loans.
What documents are needed to apply for a wedding loan?
The following documents are required to apply for a Marriage Loan: most recent salary slips, photographs, KYC documents, and the last three months’ bank statements.
PV Vyshnavi
