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Tag: Retail

  • Bluecore: Personalized E-commerce Experience Across Channels

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Bluecore.

    Over the last few years, the retail world has witnessed sales shifting from 85% in physical stores to a 50/50 online-offline split, with shoppers migrating to a more convenient, personalized customer experience. Now, over three-quarters of shoppers expects to begin their experience with the retailer via digital channels, no matter whether the ultimate purchase takes place online or in physical stores.

    In this new digital-first age, businesses not only need to acquire shoppers but also transform them into repeat customers for long-term growth. So, brand selling on digital channels needs solutions built particularly for e-commerce. Marketing focused on the entire customer lifecycle is key for brands to retain customers and drive revenue.

    Headquartered in the United States, Bluecore is a retail marketing technology company revolutionizing how retailers communicate with shoppers. Keep reading to explore everything about Bluecore, from its startup story, founders, and funding to growth, partners, and competitors.

    Bluecore – Company Highlights

    Company Name Bluecore
    Headquarters New York City, New York, United States
    Sector MarTech
    Founders Fayez Mohamood and Mahmoud Arram
    Founded 2013
    Valuation $1 billion (2021)
    Website Bluecore.com

    About Bluecore
    Bluecore – Industry
    Bluecore – Founders and Team
    Bluecore – Startup Story
    Bluecore – Mission and Vision
    Bluecore – Business Model
    Bluecore – Revenue Model
    Bluecore – Products and Services
    Bluecore – Funding and Investors
    Bluecore – Mergers and Acquisitions
    Bluecore – Growth
    Bluecore – Partners
    Bluecore – Awards and Achievements
    Bluecore – Competitors

    About Bluecore

    Bluecore is a marketing technology company offering an e-commerce multi-channel personalization platform that is transforming casual shoppers into lifetime customers for the world’s fastest-growing retail brands. The company lets marketers turn data into personalized, revenue-generated marketing campaigns within minutes.

    More than 400 customer-focused retailers trust Bluecore to rapidly increase customer retention and drive predictable revenue, including Jockey, Nobull, CVS Pharmacy, GAP, J.Crew Pacsun, Lenovo, City Furniture, and more. The platform has processed 300 billion behaviors, cataloged 500 million products, and driven $11 billion+ in revenue.

    Bluecore – Industry

    Bluecore serves the MarTech (marketing technology) industry which involves developing and launching platforms, tools, and software applications to enable businesses to automate, streamline, and enhance their marketing efforts. The global market size of MarTech was valued at $338 billion in 2022 and is expected to reach $1,175 billion by 2028, exhibiting a CAGR of 22.2% during 2023-2028.

    Some key factors that drive the market include the growing demand for social media management tools, the increasing need to gain a holistic view of marketing efforts and measure the impact of campaigns, and the rising deployment of chatbots. Moreover, social distancing and remote working became the norm during the Covid-19 pandemic, which led businesses to increasingly turn to digital marketing channels to reach consumers.

    Talking about the competitive landscape, some key players in the industry are ActiveCampaign, Acoustic L.P., Hubspot Inc., Adobe Inc., and Microsoft Corporation.

    Bluecore – Founders and Team

    Fayez Mohamood and Mahmoud Arram are the co-founders of Bluecore.

    Fayez Mohamood

    Fayez Mohamood - Co-founder and CEO, Bluecore
    Fayez Mohamood – Co-founder and CEO, Bluecore

    Fayez Mohamood is the Co-founder and CEO of Bluecore. He earned a B.S. inc Computer Engineering from the New Jersey Institute of Technology and an M.S. in Electrical and Computer Engineering from the Georgia Institute of Technology. Before co-founding Bluecore, Fayez worked as Microprocessor Design Engineer at AMD till June 2008, Software Developer at The MathWorks till September 2011, and as Head of Product at Bigdoor Media, Inc. till January 2013.

    Mahmoud Arram

    Mahmoud Arram - Co-founder and CTO, Bluecore
    Mahmoud Arram – Co-founder and CTO, Bluecore

    Mahmoud Arram is the Co-founder and CTO of Bluecore. He holds a B.S. in Electrical and Computer Engineering from Iowa State University and completed an Advanced Study Program at the Massachusetts Institute of Technology. Previously, Mahmoud was a Software Architect at Allurent, Director of Technology at Redstar, and Engineering Team Leader at Moda Operandi, Inc.

    Bluecore Team

    • Michelle McComb – Chief Financial Officer
    • Ryan Deutsch – Chief Customer Officer
    • Sherene Hilal – Chief Product Officer
    • Pat Deskin – Chief Revenue Officer

    Bluecore has over 450 employees.

    Bluecore – Startup Story

    Fayez Mohamood and Mahmoud Arram co-founded Bluecore in 2013. After working with retailers in a previous role, Fayez realized how difficult it was to set up a simple triggered email. From there, Mahmoud and Fayez developed a patented JavaScript integration that picked retail product attributes and shoppers’ behaviors in real-time to enable marketers to send relevant, timely, triggered emails. With the connection of this retail data at its core, the product evolved and is now famous as a retail marketing platform.

    In September 2015, Bluecore introduced Live Segments Email for e-commerce marketers, and in September 2018, it opened its London office to address growing European demand. The company launched Bluecore Site in October 2019. A few years later, in July 2023, Bluecore announced the launch of Transparent identification to provide a complete view of site identification rates.

    Bluecore – Mission and Vision

    Bluecore mission is to empower commerce organizations to discover their best customers and retain them for life.

    Bluecore – Business Model

    Bluecore is a retail marketing platform that enables marketers to create personalized marketing campaigns by leveraging shopper, behavior, and product data. With data built directly into marketing campaign workflows alongside point-and-click predictive models, retail marketers can bypass manual processes to trigger any communication and automate the who, when, and where of each mobile site, email, and paid media message for every shopper. Moreover, the platform combines the real-time match of shopper behavior with changing product catalog to give shoppers 1:1 recommendations.

    Launch 1:1 Retail Campaigns in Minutes

    Bluecore – Revenue Model

    Bluecore is a subscription-based platform that provides custom pricing for its solutions.

    Bluecore – Products and Services

    Bluecore offers Bluecore Communicate, Bluecore Site, and Bluecore Advertise, along with Identify and Convert, Execute 1:1 Campaigns, and Increase Repeat Purchases solutions. With the Bluecore platform, retailers can access Email and Mobile Site, Paid Media and Social, Services and Success, and Integrations features.

    Bloomreach: All-in-One E-Commerce Experience Platform
    Bloomreach helps organizations introduce marketing automation and provide personalized experiences to consumers with its cloud-based e-commerce platform.
    Ayushi GoyalStartupTalky

    Bluecore – Funding and Investors

    Bluecore has undertaken 7 e-commerce to raise $238.2 million. Its latest funding round – Series E Round, was completed on August 25, 2021, and secured $125 million. Bluecore conducted its Seed Round for the first time on April 2, 2013, and raised $118K. Market-defining investors who fund the company are FirstMark, Felicis, SilverLake, Georgian Partners, Norwest Venture Partners, and Gaingels.

    Date Round Number of Investors Money Raised Lead Investor
    August 5, 2021 Series E 4 $125 million Georgian Partners
    May 26, 2020 Series D 4 $50 million Georgian Partners
    October 4, 2017 Series C 4 $35 million Norwest Venture Partners
    December 2, 2015 Series B 6 $21 million Georgian Partners
    January 22, 2015 Series A 5 $6 million FirstMark
    July 23, 2013 Seed Round 3 $1.1 million FirstMark
    April 2, 2013 Seed Round 2 $118K –

    Bluecore – Mergers and Acquisitions

    Bluecore acquired Betaout on October 25, 2018.

    Bluecore – Growth

    Bluecore achieved a valuation worth $1 billion in August 2021 with funding of $125 million with a Series E round. In May 2020, the company had 236 employees, and by the end of 2021, the number increased to 400.

    Bluecore – Partners

    Bluecore has partnered with leading strategic technology partners, e-commerce platforms, systems integrators, marketing clouds, agencies, and consultants focused on retailers’ success and best-in-class performance. Some partners of the company are as follows:

    Bluecore – Awards and Achievements

    Industry experts recognized and rewarded Bluecore with the following:

    • America’s Best Startup Employers by Forbes in 2022
    • EY named Fayez Mohmood in the Entrepreneur of the Year 2022 New York list
    • Named to 2022 Inc. 5000 annual list of America’s Fastest Growing Private Companies
    • Crain’s 2021 Best Places to Work in New York
    • 2019 Google Cloud Partner of the Year

    Bluecore – Competitors

    The below listed are some companies giving tough competition to Bluecore:

    • Klaviyo
    • Wunderkind
    • ActiveCampaign
    • SuiteDash
    • Bloomreach
    • Emarsys

    FAQs

    What does Bluecore do?

    Bluecore is a marketing technology company offering an e-commerce multi-channel personalization platform that is transforming casual shoppers into lifetime customers for the world’s fastest-growing retail brands. The company lets marketers turn data into personalized, revenue-generated marketing campaigns within minutes.

    Who are the founders of Bluecore?

    Fayez Mohamood and Mahmoud Arram are the co-founders of Bluecore.

    When was Bluecore founded?

    Bluecore was founded in the year 2013.

    Who are the main competitors of Bluecore?

    The main competitors of Bluecore include Klaviyo, Wunderkind, ActiveCampaign, SuiteDash, Bloomreach, and Emarsys.

  • Walmart’s Marketing Strategies: The Largest Retailer in the World

    Walmart is a global retail company with headquarters in the US. Sam Walton launched the business in 1962, and it has since developed into one of the leading retailers worldwide. Almost 2.3 million people are employed by Walmart, which runs over 11,000 locations across 27 countries.

    Walmart offers an extensive range of products at affordable costs, including food, electronics, apparel, home goods, and more. The business operates under several distinct names, including Walmart, Sam’s Club, and Jet.com.

    Walmart is renowned for its effective inventory and supply chain management systems, which enable the business to provide cheap pricing while upholding high standards of customer service. Also, the business provides a wide range of services, such as Walmart Pay, online grocery buying, and free two-day shipping on several products.

    Walmart has recently placed a strong emphasis on sustainability and social responsibility, establishing challenging targets for cutting emissions and waste while also aiming to enhance working conditions for staff members in its supply chain.

    Despite criticism over its labor policies and effects on small companies, Walmart continues to be a significant player in the retail sector, having a significant presence both domestically and abroad.

    Walmart Target Audience
    Walmart Marketing Mix
    Walmart Marketing Campaigns
    Walmart Marketing Strategies

    Walmart Target Audience

    Walmart usually caters to a wide range of people. With a large selection of low-cost items, the business hopes to cater to clients of all ages, genders, and socioeconomic sectors.

    Walmart Case Study | Walmart Marketing Strategy
    Walmart targets to expand its business in large cities as well as spread retail stores throughout the world. Read the case study of Walmart.
    StartupTalkyAvinash kumar mahato

    Walmart nevertheless targets a number of distinct client niches. A few of these include:

    • Consumers searching for value and affordability: Walmart is renowned for having low pricing on a variety of goods, which draws in people on the hunt for both.
    • Families: Walmart provides a range of goods catering to families, such as food, baby supplies, toys, and household necessities.
    • Customers in rural areas: Walmart has a big presence there and may be the only major store in the region.
    • Shoppers who are tech-savvy: They find Walmart more appealing now that the company has made investments in its online store platform.
    Walmart Online Store Platform
    Walmart Online Store Platform
    • Customers who value health and wellness: Walmart has increased its offering of organic and natural items and pharmaceutical services to entice customers who place a high priority on these factors.

    Generally, a diverse group of people makes up Walmart’s target market, but the corporation places a strong emphasis on providing cheap costs, convenience, and a large variety of goods to satisfy those demands.

    Walmart Marketing Mix

    The four Ps make up Walmart’s marketing mix: product, price, location, and promotion. The way Walmart treats each of these components is broken down as follows:

    • Product: Walmart sells a large variety of goods under both its own and other brands, including food, electronics, apparel, household goods, and more. Walmart’s product strategy is centered on offering customers high-quality, reasonably priced goods that satisfy their demands.
    • Price: Walmart leads the discount retail sector by offering its items at the lowest cost feasible. This pricing approach has helped Walmart become a market leader. The business keeps costs down by using its effective inventory and supply chain management systems, and it then passes those savings on to customers.

    Walmart | American Multinational Retail Company | Company Profile |
    Founded by Sam Walton in 1962, Walmart Inc. is the world’s largest retailer company by revenue. Know more about its business model, success story, etc
    StartupTalkySarika Anand

    • Place: Walmart has a sizable and expanding network of stores, both domestically and internationally, that are well-placed to cater to customers in a range of markets. Walmart provides online shopping and grocery pickup services in addition to physical locations to give customers more convenience.
    • Promotions: Advertising, sales promotions, and public relations are just a few of the promotional strategies Walmart uses. The business makes significant investments in advertising, reaching consumers through a range of platforms including TV, print, and internet media. Also, Walmart runs sales events with discounts and coupons to entice shoppers to buy things.

    In addition to the four Ps, Walmart has recently placed an emphasis on sustainability and social responsibility, trying to cut emissions and waste while also enhancing working conditions for staff members in its supply chain. These initiatives now play a significant role in the company’s overarching marketing strategy.

    Walmart Marketing Campaigns

    Walmart has launched several marketing campaigns over the years to promote its products and services. Here are a few examples:

    Save Money, Live Better

    This is Walmart’s long-standing tagline, which communicates the company’s commitment to offering low prices and high-quality products to its customers. The tagline has been used in various advertising campaigns over the years, including TV commercials and digital ads.

    Walmart – Save Money Live Better

    Made in America

    Walmart launched a campaign in 2013 to promote American-made products and to support US-based manufacturing. The campaign included advertising, in-store signage, and partnerships with American manufacturers.

    Grocery Pickup

    Walmart has heavily promoted its grocery pickup service in recent years, which allows customers to order groceries online and pick them up at a Walmart store. The company has used a variety of advertising channels to promote the service, including TV commercials and digital ads.

    Walmart Grocery Pickup, how it Works, and Tips

    The Walmart Box

    Walmart launched a subscription box service in 2018, called “The Walmart Box.” The service sends customers a box of curated products every season, including items from Walmart’s private-label brands. Walmart has promoted the service through social media and email marketing.

    The Walmart Box
    The Walmart Box

    Famous Cars

    Walmart partnered with Universal Pictures in 2018 to launch a campaign featuring famous cars from movies and TV shows, such as the Batmobile and the DeLorean from “Back to the Future.” The campaign included in-store events and online promotions and was designed to promote Walmart’s automotive department.

    Overall, Walmart’s marketing campaigns have focused on promoting its low prices, high-quality products, and commitment to sustainability and social responsibility. The company has used a variety of channels, including TV, print, digital media, and in-store signage, to reach its customers.

    Walmart – Business Model | How Walmart makes Money?
    Walmart is US-based multinational retail firm that owns and operates a network of superstores. Read the business model of Walmart & its strategy.
    StartupTalkyRoshni Tamta

    Walmart Marketing Strategies

    Walmart’s success can be attributed to several key marketing strategies that have helped the company to build a strong brand and attract a large customer base. Here are a few strategies that have contributed to Walmart’s success:

    • Low Pricing Strategy: Walmart has been known for its “Everyday Low Prices” strategy, which involves offering products at lower prices than competitors. This pricing strategy has helped Walmart to attract customers who are looking for value and affordability.
    • Wide Product Selection: Walmart offers a wide range of products, including groceries, electronics, clothing, household items, and more. This selection of products has helped to make Walmart a one-stop-shop for customers, increasing convenience and attracting a larger customer base.
    • Efficient Supply Chain Management: Walmart has an efficient supply chain management system that helps to keep costs low and improve product availability. The company’s use of technology, including its advanced inventory management systems, has helped it to streamline its operations and keep prices low.
    • Strong Brand Identity: Walmart has built a strong brand identity around its commitment to offering low prices and high-quality products. The company’s “Save Money, Live Better” tagline, its blue and yellow logo, and its in-store signage all help to reinforce this brand identity and create a sense of familiarity and trust among customers.
    Walmart - Logo, and Tagline
    Walmart – Logo, and Tagline 
    • Customer Service: Walmart places a strong emphasis on customer service, offering a variety of services such as in-store pickup, online ordering, and free shipping. This focus on customer service helps to build loyalty and trust among customers.
    • In-store Promotions: Walmart frequently runs in-store promotions, such as “Rollback” discounts, to incentivize shoppers to make purchases. These promotions are often advertised on signs throughout the store.
    Rollback - Walmart's In-Store Promotions
    Rollback – Walmart’s In-Store Promotions 
    • Customer Loyalty Programs: Walmart provides “Walmart Rewards,” a customer loyalty program that enables consumers to accrue points for purchases. You may exchange these points for savings or other benefits.
    • Private Labels: Walmart offers a variety of private label brands, including Great Value and Equate, which provide goods at a lesser cost than national brands. Walmart is able to retain its reputation for low costs because of its private-label products.
    • Store Layout and Design: Walmart’s store layout and design were thoughtfully created to entice customers to stay longer and make more purchases. The layout of the store, for instance, frequently directs people away from popular items and encourages impulse purchases.
    How Walmart Gets You to Spend More
    • Social Responsibility: Walmart’s marketing plan places a strong emphasis on social responsibility issues including environmental sustainability and community participation. Walmart may attract clients that value corporate social responsibility by highlighting its commitment to these concerns.

    Overall, Walmart’s success can be attributed to a combination of low pricing, wide product selection, efficient supply chain management, strong branding, and excellent customer service. These marketing strategies have helped Walmart to build a strong brand and attract a loyal customer base.

    Hope you take inspiration from marketing strategies employed by Walmart to be a market leader and build strategies that suit your business.

    FAQs

    What is the target audience of Walmart?

    Walmart usually caters to a wide range of people. With a large selection of low-cost items, the business hopes to cater to clients of all ages, genders, and socioeconomic sectors.

    What are a few marketing campaigns launched by Walmart?

    Walmart has launched several marketing campaigns over the years to promote its products and services. Here are a few examples:

    • Save Money, Live Better
    • Made in America
    • Grocery Pick-Up
    • The Walmart Box
    • Famous Cars

  • How to Analyse the Location for Your Business?

    The location of your business determines how much money you will save while running the business. Depending on the type of business you have, you need to figure out a number of things that directly impact your pocket. Analyzing the location that suits your business needs is one of the important factors that every business owner should consider.

    Here is a detailed and to-the-point article to help you to decide the best location for your business. So, without further ado let’s get started.

    Factors Affecting Business Location

    There are many factors that can influence your business location decision, and the success of your business depends on each decision you make. So despite talking about so many influential things, the three major factors that influence the business location are

    • Proximity to labour
    • Proximity to consumers
    • Proximity to raw materials

    Proximity to labour refers to how close your business is to having the skilled workers you want in your business. For example, some companies want so many labourers to work in their firm and to fulfil this requirement they set up their plant near a location where they can get skilled labours at a cheaper rate.

    The most prominent example of this is Bengaluru, where most of the IT companies are headquarters. IT companies choose Bengaluru because they easily get a relevant skilled workforce to work with them. Companies do not need to take care of the accommodation for the employees if they are local. The same is true for the IT hub in California.

    Similarly, proximity to consumers is for businesses that want to position themselves closer to their target customers. Proximity to materials for businesses that require extensive raw materials to use in their firm. The closer your business is to your requirement the more money you will save and earn while running the business.

    Nature of Your Business: Retail, Manufacturing and Service-Based

    Just like a doctor who recommends various tests and after analysing the test report, prescribes the medicine. Similarly, you also need to know your business in-depth, and based on the requirement of your business, choose the location. The first thing which should be recognized is the nature of your business.

    So to analyse the best location for your business we have categorised the business into three types based on its nature and evaluate each business with three parameters of proximity to labour, consumer, and material.

    Location for Retail Business

    If your business is a kind of Retail business then it needs to be closer to its consumers. The priority of this kind of business is to supply all the essential goods to consumers in a feasible way. You can find a relevant crowd for your business by analysing the people around your desired business location and identifying their needs. If their daily requirement supports what you sell, then that location is good for you.

    For the retail category, the area should be crowded and busy. If that area is suitable for your business then it might be suitable for other retailers also, hence you can see your competition nearby. Proximity to labour and proximity to material doesn’t play an important role for this kind of business but proximity to its consumer is the most important aspect.

    For example, restaurants and cafes need to be situated near a busy area where there is a sufficient crowd.

    Location for Manufacturing Business

    Proximity to raw materials is the most critical factor for manufacturing businesses as it saves a lot of money and time in transportation and storage. Manufacturing businesses may also be located near the place where they get skilled labour at a cheaper rate. This is the reason, most manufacturers build their plants outside the town and cities.

    In India, most of the manufacturing businesses like iron and steel plants are situated in the state of Jharkhand, West Bengal, Odisha, and Chhattisgarh in the cities like Jamshedpur, Bokaro, Bhilai, Rourkela, etc. The reason is simple, easy accessibility to raw materials and labour. Proximity to customers is not the most influential factor for such kind of business.

    Location for Service-Based Business

    Service-based business is not material-intensive hence it doesn’t need to be set up outside the city and towns. You will find restaurants, cafes, schools, colleges, carpenter shops, etc within your city. Location may vary depending on the service your business provides, for example, if you are a videographer you don’t need to think much about your location but if you are a restaurant owner then location is very important.
    The location of the service-based business should be closer to its customers, the other two factors (labour and material) don’t have that much influence.

    Impact of the Internet: eCommerce Business

    The Internet has changed the way of doing business. Today, so many businesses have their existence just because of the internet. One of the most well-known examples is the Ecommerce business.

    The target customers for this business are not limited to any particular region rather the seller can sell their product to anyone across the country. The market is open and possibilities are limitless. Location doesn’t matter a lot for such kind of business as it can be operated from anywhere.

    Demographics and Purchasing Power of Customers

    Every business owner should be aware of the demographics of their audience, and businesses should be near their potential customers. A successful business knows, who is the target customer and what they like to consume.

    The revenue you generate will depend on the customers visiting your store and their purchasing power. If people in an area have more purchasing power then they consume more goods and more services.

    Therefore, having an idea of the demographics and purchasing power of your potential customers around your business location would be beneficial for your business.

    The Demand for Products and Services

    What will happen when you open a non-veg restaurant in an area where everyone is vegetarian? Of course, this will affect your sales and therefore your revenue.

    There must be demand for the product or service you sell at your desired business location. This aspect should be considered as it affects the overall sales volume. Demand determines the price you can charge for the product, if demand is high you can charge more and if demand is low then you have to charge low.

    Conclusion

    It becomes very important to choose the best location for your business as it has the potential to affect your business revenue in the long run. So take your time to analyse the location of your business and consider all the points mentioned above.‌‌

    When you are just starting out, be smart and secure the place to operate your business. Also, keep in mind that your location may vary depending on the type of business and industry you are in.

    FAQs

    How to choose the right business location?

    Consider the following factors before choosing the best business location

    • Competition
    • Demographics
    • Foot traffic
    • Infrastructure
    • Overhead costs

    Is Location plays an important role in the success of your business?

    Yes, location plays an important role in business development and profit-making as it directly influences the condition and environment of your business.

    What kind of location would be best for your business?

    The key to finding and choosing a good location is to evaluate factors such as footfall, labour and raw material availability as it will increase the number of customers and lower the cost of functioning.

    What are the factors that affect the business?

    The following are the factors that can affect the business

    • Proximity to labour
    • Proximity to consumers
    • Proximity to raw materials

  • How To Start Amazon FBA Business in 2023? | Fulfilment By Amazon

    With a market cap of over $1 trillion, Amazon ranks first among the leading large-cap e-commerce companies worldwide. It has over 2.45 billion monthly visits to its app and website combined. It dominates the US e-commerce, i.e. 49.1% of the market. In the US, customers buy roughly 7,400 products per minute from Amazon sellers. It is the largest e-commerce company in India as well, which is one of the world’s fastest-growing economies with over 1.4 billion people. Data shows over 620 million of them use the internet, and 74% of those users shop online. India has a $70 billion market segment, and Amazon is playing a big part in it.

    Between 2020 and 2022, the fulfilled-by-Amazon (FBA) model caught on, with 68% of merchants relying on Amazon’s logistics to fulfil their orders. Amazon has over 200 million paid Prime members globally and hundreds of millions worldwide active customer accounts. You can scale up your business globally on this platform. This is the best platform for customer acquisition. With FBA (Fulfillment by Amazon), sellers send their products to Amazon’s fulfilment centres, and Amazon picks, packs, ships, and provides customer service for those products.

    In other words, you must provide your products and Amazon does the heavy lifting for you against some fees. (know that Amazon FBA is not a free service, you have to pay for it. So it is safe to say that a little investment will be required on your part). There are many ways through which you can provide your products to Amazon:

    1. Private label
    2. Retail arbitrage
    3. Wholesale FBA

    We will talk about them later in this article!

    Select The Product To Sell
    Source The Product From Manufacturer
    Finalize The Product via Alternatives
    Send The Product To Amazon
    Provide Better Service Than The Competitors
    Break-down of Procedures – A Beginner’s Guide
    Is Amazon FBA profitable in 2023?

    How To Start Amazon FBA Business

    Over the years, Amazon FBA has attracted many people to its model. This way the competitors kept pouring in and competition kept levelling up each day. So it is the right time to ask questions like how to start an Amazon FBA business in 2023 to stay there for longer and to be able to call it a consistent source of income. The following is the know-how of this very question:

    Select The Product To Sell

    It is the most important step. You should pay due care in choosing the product that is going to give you returns. It is quite obvious that if there are too many people selling the same product, the profit share of each individual becomes negligible. So you need to select the product which has a decent demand and less supply.

    Websites like JungleScout help you know which product can give you maximum returns. It gives you an idea (an estimate) about the current product status in terms of demand, supply, and competition based on prior data. If you don’t want to spend your money then you can use Amazon’s Best Seller rankings (BSR) tab but you have to do your bit to make the calculated guess when you’re selecting the product.

    • Know your niche: Before selecting a product you should have an idea in which niche you want your product to fall so that it covers long-term gains and not only short-term profits.
    • Selecting correct BSR: After selecting your niche, you should select a particular BSR range according to the product selected. Please note the product doesn’t necessarily have to be from the top 3 of BSR. It just has to be sellable which means a product with comparatively less competition and high demand.
    Finding BSR Rank for a Product on Amazon
    Finding BSR Rank for a Product on Amazon
    • Narrowing down the product: You can then narrow it down from a list of products to the product that meets the basic criteria.

    Source The Product From Manufacturer

    After deciding what your product will be, you need to source the product from the manufacturer. This is not an easy process because you have to make sure the product you’re sourcing is of decent quality and reasonable price to match your cost estimates. Consider yourself a customer here and then start negotiating the price with the supplier if you do not feel that the supplier’s quoted price suits you.

    Things to note:

    • You should ask for sample products first to keep from losses.
    • Try to take everything on paper so that you have an edge if you feel the supplier has compromised with the product (in case you are sourcing the product from different countries or from a place where you cannot be physically present).

    Finalize The Product via Alternatives

    Do you remember I talked about providing the final product to amazon via three alternatives? We will now see what those alternatives mean:

    The private label: It is somewhat like collaboration. You are sourcing products from a particular brand and adding your label to it (on its packaging/product itself). And then you’re selling it under your brand. It requires your investment and is comparatively a sustainable source of business. You essentially create your listing on Amazon including pictures of the product, the title of the product etc.

    Retail arbitrage: It is buying stuff at cheaper rates from thrift stores or retail stores and then comparing the cost and profit margin of the product via amazon itself. For the same, you have to provide amazon specified barcodes on the product before sending it to Amazon. However, it is not a sustainable business model as there is no guarantee that you will find the products regularly to make the sale on Amazon.

    Dropshipping: It is a business model for people who do not have a product or money with themselves. All you do is act as a mediator between supplier and buyer by listing the supplier’s product on your account. After receiving the order (from the customer) at your listed price, you place the order with the actual supplier and ship it directly to the customer. This way dropshipping help you save yourself with a decent profit margin.

    Wholesale FBA: It is primarily sourcing the product from a wholesaler, listing it on amazon and selling it. Wholesale FBA is like day-to-day retail shops that we come across in our cities, the point of distinction is here we are doing it online.

    Send The Product To Amazon

    After deciding your way of sourcing the product and doing the needful you are now ready to send it to the Amazon warehouse and get on with the sales part. You can choose any mode of transportation according to your feasibility and time preferences.

    Provide Better Service Than The Competitors

    The real competition: In a sentence, this is the point of competition. Many sellers are selling the same product as you. What you do to stand out of the crowd so your traffic turns into sales is the most crucial part of this entire process. The question of starting Amazon FBA today arises from the many sellers that are now there on this platform. You have to know this is not a get-rich-quick recipe. It is just another business model. The only difference is Amazon is doing the heavy lifting for you. So you need to truly start by taking this as a business entity. You have to do all the work that a businessperson is supposed to do, including branding, advertising and marketing.

    Ads can do their bit but to be the best in your niche you have to provide the best service possible by including things like

    • Actively solving customer’s grievances
    • Reading consumers’ reviews to get their experiences with the product
    • Always aiming for improving the services
    • Asking for genuine customer reviews
    • Going for influencer marketing to attract traffic
    • Initially providing good discount offers

    Of course, after a point of time, Amazon will promote your products on your behalf but for that, you have to be able to come into the eyes of amazon. After all, it is a search engine doing things with algorithms!

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    Break-down of Procedures – A Beginner’s Guide

    Sell worldwide with Amazon
    Sell worldwide with Amazon

    Step 1. Visit Amazon’s official website
    Step2. Click on Sell
    Step3. Create an account
    Step4. List your product
    Step5. Ship your product to Amazon
    Step6. Grow your business

    ❖ Create an amazon seller’s account: To sell on amazon, go to the seller on the Amazon section and create your seller central account. Link your Bank Account and provide your identity, business/company details, and other information.

    Amazon Seller Account | Sign in
    Amazon Seller Account | Sign in

    ❖ List your products: There are two ways through which you can list your products on Amazon which depend on the product you’re selling.

    • Selling the already available product on Amazon: In this case, you need not list your product as such. All you need to do is select and list the product along with the number of units you want to sell.
    • Selling under your brand: When you want to be a unique seller on Amazon with your brand you will be required to list your product which mainly includes the title of the product, size of the product, its images, description of the product etc.

    ❖ Selecting the way of fulfilment: Here you have an option as to how you want to deliver the order. You have three options: FBA, Easy ship, and self-ship. Here we will see FBA. In this case, Amazon will take your products and store them. After receiving the order it will pack and deliver it to your customers.

    Some important things to note:

    • Pay due care when you pack your products, you don’t want to mess up when labelling the product with barcodes.
    • Paste the barcodes with sticking sheets instead of using cello tapes. If lost, they will be treated as unfulfilled orders in Amazon’s fulfilment centres (FC) under which you will be at a loss.
    • Carefully schedule the pick up for shipping the products to FC. Pay good care while filling in the product’s details including the number of units and its dimensions.

    You can also use the option of easy shipping. The only difference is here you have to store the products and Amazon will deliver the products to the customers.

    Amazon Fulfilment Centre
    Amazon Fulfilment Centre

    ❖ Shipping the order to AFC: Now you’re ready to ship your products to AFC. You can use Amazon transportation service (ATS), third-party service, or courier service, or you can go yourself (in case your products are small and do not require a transportation service).

    • If ATS is available in your area, you can go for this. For this, you can simply schedule the time in your seller’s account.
    • Amazon also provides third-party services which you can avail of from your account to send your products.
    • If you find your courier service better, you can go for this option too.

    Please note that if you’re using any service except ATS you will be required to make a carrier appointment request via the carrier appointment request portal.

    ❖ Expand your reach/Wait for sales: After sending your inventory to FC, your big task is done. Now you have to wait for customers to place orders. During this time, you can focus on marketing your product off-amazon. You can expand your reach by telling the uniqueness of your product through influencer marketing, Youtube marketing, digital marketing etc.

    Is Amazon FBA profitable in 2023?

    Benefits of Amazon FBA
    Benefits of Amazon FBA

    In 2022, three-quarters of sellers are in profit. The competition is indeed really high and it is increasing every day. But we have to consider the fact that FBA is a business model. And every business takes a certain period to be termed as ‘stable’. So the risk factor lives irrespective of FBA. FBA is comparatively easier as you can choose from many business models within FBA and with less investment.

    For FBA sellers, amazon provides a prime badge which is an assurance of fast delivery, and good customer experience. This option is only for FBA sellers which again gives your product a better chance to get a buy box.

    Of course, there will be times when amazon will frustrate you with its algorithms even when you have done all the bits-and-bats of gaining the buy box from buyers. Nonetheless, there is no denying that FBA has changed the game for many when people have been consistent in their work. And it can do the same for you too!

    FAQs

    What is Fulfillment by Amazon (FBA)?

    Fulfilment by Amazon, (FBA) is a service offered by Amazon. Through FBA you store your products in Amazon’s warehouse, and Amazon packs and delivers the orders to customers.

    Is Amazon FBA available in India?

    Yes. Amazon has more than 60 fulfilment centres in 15 states.

    Is Amazon FBA profitable in 2023?

    Amazon’s FBA business is quite profitable if done with consistent efforts.

    How much does FBA cost?

    The FBA cost depends upon the below factors:

    • Category of the product
    • Product Price
    • Size and weight of the order

  • Raymond: The Success Story of Famous Indian Clothing Brand

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Raymond.

    India as a diverse land has a lot of colorful trends when it comes to textiles and apparel. Of course, the collapse of all hype at the dawn of the twentieth century brought a more sensible environment and a more solid view of the fashion industry.

    As far as we know, the Indian Textile industry is a significant contributor to the country’s economy. The industry is providing one of the most fundamental needs of the community and has importance; preserving ongoing development for raising the quality of life. It has established itself as a self-sufficient industry that adds value at every stage of the supply chain right from the production of raw materials to the delivery of finished goods.

    Raymond Group is an Indian textile and fashion industry headquartered in Mumbai, India. Raymond was founded in 1925 by Albert Raymond. The group makes suiting material and has a 31 million meter capacity for wool and wool-blend fabrics.

    Check out a lot more about Raymond, its startup story, its founders and team, business and revenue growth, the challenges faced, and a lot more relevant information.

    Raymond – Company Highlights
    Raymond – About
    Raymond – Industry
    Raymond – Leadership
    Raymond – Mission and Vision
    Raymond – Name, Logo, and Tagline
    Raymond – Startup Story
    Raymond – Business model
    Raymond – Revenue Model
    Raymond – Challenges Faced
    Raymond – Mergers and Acquisitions
    Raymond – Online and Social Media Presence
    Raymond – Advertisements and Social Media Campaigns
    Raymond – Awards and Achievements

    Raymond – Company Highlights

    Headquarters Thane, India
    Sector Textiles, Engineering, Aviation & Real estate
    Key people Gautam Vijaypat Singhania (Chairman)
    Type Public
    Founded 1925
    Revenue $6.2 Billion (2022)
    Website www.raymond.in

    Raymond – About

    Incorporated in 1925, the Raymond Group is a diversified organization with most of its business activities in the textile and apparel industries. It also operates in a number of other industries, including FMCG, Real Estate, Engineering, and Prophylactics, in both domestic and foreign markets.

    With the support of more than a billion customers, Raymond is renowned for providing its customers with top-notch products for the previous nine decades.

    The company is the owner of clothing brands including Raymond, Raymond Premium Apparel, Raymond Made to Measure, Ethnix, Park Avenue, Park Avenue Woman, ColorPlus, Kamasutra, and Parx. All of the brands are sold through “The Raymond Shop” (TRS), which has a network of more than 700 retail locations in India and abroad in more than 200 cities. The brand also has its presence in tier IV & V cities.

    Woolen textiles, Cotton, Wool blends, Linen, and Denim are just a few of the luxurious shirting and suiting fabrics that Raymond has to offer.

    After entering the clothing, textile, and sexual wellness segment, in 1949, Raymond Ltd. made a foray into the engineering industry. With a market share of more than 25% of worldwide steel file production capacity in 2020 and a presence in more than 55 countries, JK Files and Engineering Ltd. holds the top spot as the industry leader. It was 2019 that saw the announcement of Raymond’s entry into the real estate industry as Raymond Realty with the theme of ‘Go Beyond’. The new business would invest 250 crores (about $36 million) to create mid-range and luxury housing units on 20 acres of land in Thane, a rising suburb of Mumbai.

    Raymond has also strived to do something for society. ‘Beyond business’, is Raymond’s humanitarian activities that are designed to foster inclusive growth for the socially underprivileged.

    • JK Trust Gram Vikas Yojana – improve the quality of life in rural areas through a Cattle Breed Improvement Programme (CBIP)
    • JK Bovagenix – On July 20, 2016, a groundbreaking breeding program using in-vitro fertilization to produce selected indigenous cattle breeds went into effect.
    • Skilled Tailoring Insititute – to train unemployed women
    • Raymond Tailoring Hubs for skill development – located in Mumbai, Delhi, Bihta, Jamshedpur, Jaipur, Nashik, Villupuram, Ranchi, and Bengaluru.
    • Singhania Schools

    Raymond – Industry

    As mentioned earlier, the Indian Textile industry contributes a major chunk to the country’s economy. This sector is also one of the oldest industries in the Indian economy. It is reported that the Indian textiles market is expected to be worth more than $209 billion by 2029.

    Raymond – Leadership

    Gautam Vijaypat Singhania is the Managing director and Chairman of the Raymond Group.

    Gautam Vijaypat Singhania

    Born to an industrialist family, whose parents are Vijaypat Singhania and Ashabai Singhania, Gautam Vijaypat Singhania is the Chairman and Managing Director of the Raymond Group. He attended Cathedral and John Connon Schools as well as St. Mary’s School in Mumbai. In 1986, Gautam Singhania joined the JK Group of businesses owned by the Singhania family. Later, he joined the Raymond Group, where he rose through the ranks to become chairman in September 2000, and managing director in July 1999.

    Nawaz Modi Singhania, a Parsi, is the spouse of Gautam Singhania. They have a daughter called Niharika.

    According to a family agreement, Gautam Singhania has been given a 27% share of the business. A few years after taking over, he turned the business around and made it become a big success.

    Raymond – Mission and Vision

    Raymond likes to do business with one vision, that is, “Trust, Quality, and Excellence”

    Raymond – Name, Logo, and Tagline

    As we all are aware, the tagline of Raymond is, “The Complete Man”

    The brand name was derived from Albert Raymond and Abraham Jacob Raymond, who were members of the Board of Directors of a Jewish industrialist company during the 1920s known as E.D Sassoon and Co. Formerly it was known as ‘The Raymond Woollen Mills” and then it was changed to just ‘Raymond’.

    Raymond – Startup Story

    The story of the world’s largest producer of suiting fabric, Raymond goes back to the year 1925. An elderly man by the name of Wadia had the foresight to establish a modest woolen mill in the backward region of Thane, Maharashtra, spurred on by the burgeoning need for apparel for soldiers in the Indian Defense Force. However, Wadia couldn’t manage the woolen mill and it was taken over by E.D Sassoon and Co. It was them, who renamed the company, ‘The Raymond Woollen Mills’

    After some years, in 1944, Lala Kailashpat Singhania took over Raymond when he saw the potential in the brand for the coming future. His family, the Singhanias moved to Farrukhabad from the little village of Singhana in Shekhawati, one of the desert towns of northeast Rajasthan, in search of better opportunities. They had their own company called JK Cotton Spinning & Weaving mills Co., wherein they produced high-quality cotton clothes using only Indian raw materials, labor, and other methods to compete against England.

    Post-independence, Kailashpat took Raymond to newer heights and put up a new manufacturing unit JK Files in 1950 to manufacture indigenous engineering files. In 1958, Raymond opened its first exclusive showroom in King’s corner, Ballard Estate in Mumbai.

    In 1986, Park Avenue was launched by Raymond, a collection of stylish wardrobes for men.

    Raymond opened its first international showroom in Oman in 1990. After one year, the brand launched a premium condom brand called, ‘Kamasutra’. With the founding of Raymond Aviation in 1996, the group entered the aviation industry. Corporate travelers in India can use the air charter services offered by Raymond Aviation.

    In order to provide customers with a variety of semi-formal and casual clothing, the luxury casual wear brand Parx was introduced in 1999. 2008 saw the introduction of ready-to-wear clothing under the Raymond brand, which is currently known as Raymond Ready to Wear.

    In 2016, the company launched a kind of fabric, which the company referred to as the Smartest fabric in the World – it was known as Technosmart. In the same year, Raymond opened a new office in Dubai. With 900 outlets in 500+ Indian towns and cities as of 2018, Raymond had experienced its fastest-ever retail expansion.

    To combat COVID, Raymond came up with ‘Virasafe’, a highly effective anti-viral fabric. To produce PPE suits during the outbreak, the brand converted its garment plants.

    Raymond – Business model

    Raymond’s business involves a number of business models because it deals with several types of business including real estate and aviation. However, it does have a B2B business model as it manufactures one of the finest cotton and pure linen fabrics.

    Here’s taking a look at the various businesses by Raymond Group:

    Suit Business

    It is commendable that in India, the woolen suiting fabric industry is dominated by Raymond, one of the largest vertically and horizontally merged producers of worsted suiting fabric in the world, with a market share of over 60%. This business has manufacturing plants at Vapi (Gujarat), Chhindwara (Madhya Pradesh), and Jalgaon (Maharashtra) with a manufacturing capacity of 38 million meters.

    Garment Business

    Raymond has three wholly-owned subsidiaries – Silver Spark Apparel Ltd (Suits), EverBlue Apparel Ltd. (Jeanswear), and Celebrations Apparel Ltd. (Shirts) for its garment business. The only Indian company having the know-how to create Full Canvas Suits is Silver Spark Apparel Ltd. The company’s products such as jeans, trousers, shirts, and suits are all exported to the USA, Europe, and Japan.

    Shirt Business

    Raymond is also engaged in the manufacturing of shirt fabrics, which are very renowned and the finest in India. At its advanced manufacturing facility in Kolhapur (Maharashtra), the operation has a capacity of 26 million meters and manufactures bottom-weight textiles and high-end cotton and linen shirts for well-known national and international brands.

    Retail Business

    Raymond opened its first-ever retail showroom in Mumbai at King’s Corner in 1958. Since 1958, the brand has been expanding aggressively with its various collections. Its retail presence makes up for the brand’s success. With over 2 million square feet of retail space split throughout its 1100+ locations in more than 380+ cities and towns, Raymond now has an unstoppable retail presence and is steadily expanding.

    The brand has a portfolio of four Power Brands, including Raymond Ready-to-Wear, Park Avenue, Color Plus, and Parx, which makes them currently as of one of the top three branded clothing players in the menswear market.

    Across all channels, including 257 Exclusive Brand Outlets (EBOs), 3,300 Multi Brand Outlets (MBOs) (via distributor network), 800 Large Format Store (LFS) chains, and top internet portals, there has been a tremendous increase in recent years.

    Raymond created raymondnext.com, a one-stop fashion shop for all the brands under the Raymond umbrella, as its entry into the e-commerce market.

    Denim Business

    One of the first companies to introduce specialty ring denim in India is Raymond UCO Denim (a joint venture with UCO NV of Europe). Along with serving domestic markets, the company also serves consumers in the Americas, Europe, and Asia. The company has fabric manufacturing plants in Yavatmal, Maharashtra, and Sibiu, Romania, with a combined annual production capacity of 47 million meters. Raymond UCO Denim satisfies the expanding expectations of fashion-conscious consumers and has earned the recognition of top brands in both home and foreign markets.

    Tools & Hardware Business

    The company entered into the tools and hardware business in 1949. This industry sector is involved in the production, marketing, and distribution of hand tools, power tool machines, and accessories for power tool machines as well as the sale and distribution of precision-engineered parts for tools and hardware like steel files and drills. As of 2020, JK Files and Engineering Ltd. had the largest installed steel file manufacturing capacity, accounting for nearly 25% of the global capacity. JK Files & Engineering Ltd. boasts state-of-the-art production facilities in India that are ISO 9000-2008 certified and have a robust manufacturing capacity of 7.44 million dozen files and 13.2 million pieces of drills annually. Raymond has a market share of more than 60% by sales volume in Fiscal 2021 and is also the market leader in India’s files segment. It is also well-represented in Latin America, Asia, and Africa.

    FMCG Business

    Raymond is involved in the manufacturing of consumer goods through its associate company called, Raymond Consumer Care Private Limited. Raymond is steadily growing its presence in the category with leading brands like Park Avenue and KamaSutra in the market today.

    Automotive Business

    By acquiring a controlling interest in Ring Plus Aqua Ltd, a renowned Ring Gear & Flexplate manufacturer in India, Raymond entered the automotive components market. Ring Plus Aqua Ltd., a 1984 incorporation, has a close relationship with the global automotive industry thanks to its manufacturing facility for ring gears, water pump bearings, and flexplates.

    Through its warehouses in Canada, the United States, and Germany, Ring Plus Aqua Ltd. also meets the JIT (Just-in-time) needs of its clients. Around 8.2 million Ring Gears, 3.9 million Water Pump Bearings, and 0.62 million Flexplates can each be produced annually by Ring Plus Aqua Ltd.

    Real Estate Business

    With Raymond Realty, the company entered into the Real Estate space. Each project under Raymond Realty is built on the tenet of “Go Beyond” and attempts to redefine every customer’s expectation. The company has an exclusive website for its realty business –  www.raymondrealty.in

    Some of the popular brands and services by Raymond Group are:

    • ColorPlus
    • Ethnix
    • Raymond
    • Raymond Fine Fabrics
    • Park Avenue
    • The Raymond Shop
    • SuperDrive
    • Kamasutra
    • Raymond Custom Tailoring
    • Parx

    Raymond – Revenue Model

    Raymond’s revenue for the fiscal year 2022 was Rs 50,000 crores. The largest contributors to the company’s revenue were branded clothing and textiles. However, the exact figures haven’t been published. In the fiscal year 2021, Raymond India reported revenue of more than 36 billion Indian rupees.

    Raymond – Challenges Faced

    As the company is mostly in the manufacturing space of finest fabrics and gets its revenue majorly from the textile business, it fears that the millennials might move away from the concept of textiles and fabrics. Today’s youth are focused on buying ready-made garments and don’t wish to invest in textiles or buy fabrics.

    This is one of the biggest challenges the brand is facing and to keep up with the trends, it needs to come up with innovations to maintain its legacy.

    Raymond – Mergers and Acquisitions

    Raymond acquired J. K. Ansell Ltd on Aug 17, 2017. The rest of the details are undisclosed.

    Raymond – Online and Social Media Presence

    Raymond has a powerful online and social media presence. The brand has pages on almost all popular social media platforms.

    Platform Followers
    Facebook Page 1,357K followers
    Instagram Page 220K followers
    Twitter Page 10.6K followers
    LinkedIn Page 170K followers

    Raymond – Advertisements and Social Media Campaigns

    Time and again, Raymond has always come up with the best and heart-touching campaigns throughout its 90-plus years of journey. With its motto, ‘The Complete Man’ – Raymond has always shown the characters of a well-read man, a perfect father, an honest friend, and an obedient son, which highlights the true emotions a man can have in him. While the list of campaigns made by Raymond is long, the most recent one is Raymond’s Look Good Feel Good campaign.

    This campaign was launched in June, where the brand highlights the joy of giving your old clothes. The campaign is done in association with Goonj, a non-profit organization that undertakes humanitarian aid. The brand asks its viewers to donate clothes and in exchange for their old garments, they will receive free trouser stitching from July 1st onwards.

    Another campaign by the brand was rolled out in 2019 called #TailorYourStyle. The ad speaks about the fine tailoring done by Raymond which shows its rich heritage and aesthetic embodiment. The campaign was designed by Grey India. It mostly highlights the customization that customers can get as per their needs.

    Raymond – Awards and Achievements

    Here’s showing the list of all the major awards won by Raymond:

    • Raymond ‘The Complete Man’ TV commercial (husband-baby) won the “National Laadli Media & Advertising Award for Gender Sensitivity 2013-14”
    • Raymond has been placed at the top of the ‘Textile and Garment’ segment as the ‘Most Admired Companies in India 2013’ by Fortune magazine
    • Park Avenue has won the Best Design Concept of the Year Award for Innovative AUTOFIT Concept at Images Fashion Awards 2015.
    • Raymond has won the ‘Best Retail Store Design for Fashion Apparel brand” for Raymond Ready-to-wear store, Viviana Mall, Thane from Visual Merchandising & Retail Design Awards 2015.
    • Raymond has won the ‘Best Window Display 2015″ for the Colors Of Wool campaign from Visual Merchandising & Retail Design Awards 2015.
    • ColorPlus awarded for ‘Impactful Retail Design and Visual Merchandising’ – Asia Retail Congress 2013
    • EPC (Engineering Export Promotion Council) India “Export Excellence Award 2011-2012” for Hand Tools Exports in the category of Large Enterprise
    • Park Avenue Beer Shampoo has won a bronze at the WARC Strategy Awards 2014.
    • 11th Realty Plus Excellence Awards​ – WEST Mid Segment Project of the Year (2019)
    • Hindustan Times Real Estate Titans Awards 2020

    FAQs

    Which company owns Raymond?

    Raymond group, a global conglomerate owns Raymond ltd.

    Who is the Chairman of Raymond?

    Gautam Hari Singhania is the chairman and MD of Raymond group.

    How many brands does Raymond own?

    Raymond owns 4 brands namely Park Avenue, Parx, Color Plus along with Raymond Ready to wear.

    Who are its competitors of Raymond in India?

    Raymond’s competitors in India are Siyaram’s & Grasim.

  • Metro AG Selling Its Indian Unit | Why Is Every Big Company Eyeing It?

    German retailer Metro AG which is trying to sell its Indian cash-and-carry operations for around $1.5-1.75 billion has caught the attention of a lot of big companies.

    Companies like Reliance Retail, Amazon, TATA Group, Avenue Supermarts — which runs the DMart chain, Thailand’s Charoen Pokphand (CP) Group, Swiggy, Lulu Group, and PE fund Samara Capital are in the race to buy the Indian unit of Metro AG.

    But, why are these companies eyeing Metro AG? What does Metro AG exactly do? To find answers to these questions, keep reading this article till the end.

    Metro AG- About
    Why Metro AG Wants to Exit the Indian Market?
    Companies Wanting to Buy Metro AG’s Indian Unit
    Why Big Companies Are Eyeing Metro AG?

    Metro AG- About

    Relative Market Share of Metro Cash and Carry India from FY17 to FY20
    Relative Market Share of Metro Cash and Carry India from FY17 to FY20

    Metro AG is a German international specialist in wholesale and food retail which has made its footprints in 34 countries. The headquarters of this company is in Düsseldorf, Germany. The company operates under the cash and carry wholesale business model.

    In the cash and carry model, retailers, caterers, hotels, restaurants and other special businesses purchase the goods from a wholesale warehouse and pay the invoice on the spot in cash. Customers have to arrange the transport of the goods themselves.

    The Indian subsidiary of Metro was established in 2003 when the Indian government allowed 100% foreign direct investment in wholesale trade on a cash and carry business model.

    The company has a chain of 31 cash-and-carry stores in India under the brand, Metro Wholesale. Only business customers can buy goods from these wholesale centres.

    Main Products and Services of Metro AG

    Metro Cash and Carry India provides 7,000 products to its business customers across various categories like fruits & vegetables, dairy, frozen and bakery products, general grocery, health and beauty products, media and electronics, confectionery, detergents and cleaning supplies, household goods and apparel – all under one warehouse at wholesale prices.

    Target Audience of Metro AG

    On Metro’s official website, the company has mentioned that its core customers in the Indian market include small retailers and Kirana stores, SMEs, and all types of offices, companies and institutions. The company also targets HoReCa- Hotels, Restaurants and Caterers.

    Why Metro AG Wants to Exit the Indian Market?

    Metro AG India
    Metro AG India

    Metro AG generated a whopping revenue of $898 million in FY21 (Oct-Sept) and is likely to close the current fiscal year with more than $1 billion in revenues with an EBITDA growth of 30-40%. Last fiscal the EBITDA growth was 50%.

    Even after earning so much revenue, why does the company want to exit the Indian market? The reason is increased competition. When Metro AG entered the Indian market in 2013, there were not a lot of players. But, now the situation has completely changed. Metro AG is facing tough competition from Reliance and Udaan.

    To fight the competitors the company has to spend $300 million to stay relevant in the market in the short term. But, the parent company METRO is not ready to spend this huge amount to beat its competitors.

    Although tough competition is not the only reason for the company to surrender their Indian unit.

    “Selling below cost and free delivery of goods are the issues. Most competitors are operating at negative 20-25% EBITDA,” said an industry veteran who doesn’t want his name mentioned in the article.

    “At Metro, we regularly assess our international portfolio, such as our market position in the respective country, the life cycle of our operations, and the growth potential of our business. This is a general approach and normal business applied to all countries, including India,” said Gerd Koslowski, the company’s global director of corporate communications.

    Metro wants a profitable business in India which is not possible in the near future and that’s why the company is selling its Indian unit.

    Last year the company exited Japan and Myanmar due to increased competition. The company has also closed its business in Russia due to its war with Ukraine.

    The company has appointed JP Morgan and Goldman Sachs, the most respected investment banks, to find a buyer for their business.

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    Companies Wanting to Buy Metro AG’s Indian Unit

    In the beginning, the following companies were in the race of buying Metro AG:

    • Reliance Retail
    • Amazon
    • TATA Group
    • Avenue Supermarts — which runs the DMart chain
    • Thailand’s Charoen Pokphand (CP) Group
    • Swiggy
    • Lulu Group
    • PE fund Samara Capital
    • Walmart – Flipkart
    • PremjiInvest

    But, now Flipkart-Walmart, DMart and Amazon have opted out of this race.

    So, now the fight for Metro AG is between Reliance Retail, TATA Group, Charoen Pokphand (CP) Group, Swiggy and PremjiInvest.

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    Why Big Companies Are Eyeing Metro AG?

    Metro AG Selling Its Indian Unit
    Metro AG Selling Its Indian Unit

    According to Statista, the Indian retail market in 2020 was worth 800 billion USD. By 2026, this figure will reach 1.7 trillion USD. The Indian quick commerce market will reach $5 billion by 2025.

    Since Metro AG already has a huge chain of warehouses, wholesalers and retailers, this gives these companies a big chance to tap into the booming retail and quick commerce market. This is the very reason why all of the big companies are fighting to buy the Metro AG.

    The company which is trying to disrupt the retail and quick commerce segment is Reliance. The company has already made huge efforts since 2021 to build a large number of wholesale centres for food and grocery, apparel, electronics, and medicines. Reliance is also integrating numerous small shops into its business strategy. Mukesh Ambani has said that they are planning to onboard more than 10 million merchant partners over the next three years.

    The main goal of the company is to supply a range of products to consumers through its eCommerce platform JioMart. Reliance already has a huge chain of warehouses and if they acquire Metro AG they would achieve this goal really fast.

    But, let’s look at the bigger picture. Reliance is trying to build its own ecosystem. The company wants Indians to use its services from the morning to the night. Consumers can buy products from their eCommerce platform, JioMart using Jio’s mobile or WiFi networks, watch movies on Jio Cinema and pay the money via Jio wallet. Like this, the customers will stay in their eco-system for a long period of time.

    Another company that wants to leverage the retail and quick commerce segment is Swiggy. The company wants to expand its current food delivery business model to the quick commerce segment. By acquiring Metro AG the company wants to accelerate Instamart’s growth.

    “Swiggy has evinced interest in the acquisition, and a potential deal would enable Metro Cash & Carry’s wholesale stores to feed Swiggy’s Instamart delivery model,” one of the executives said.

    “The idea is to create a hub-and-spoke model where Metro stores will supply to Instamart stores, which could be delivery-only or even stores where consumers can walk in.”

    Conclusion

    All the companies know the bright future of the retail business and quick commerce segment. The companies know that if they acquire Metro AG, they would be able to capture the market quickly. Now, it’s very tough to predict which company will buy Metro AG but, this race would be quite interesting to watch.

    Big players in the quick commerce segment like Zomato and Swiggy are not making huge profits. But, if the companies build a smart business model then the quick commerce field can help generate huge profits for any company.

    FAQs

    What is a cash and carry store?

    In cash and carry stores customers buy products from warehouses and settle the invoice in cash and carry the goods with them. Customers have to arrange the transport of the goods themselves. Usually, these customers are retailers, caterers, hotels and restaurants.

    Is Metro cash and carry closing in India?

    Yes, Metro cash and carry is exiting the Indian market by selling its Indian operations for $1.5-1.75 billion.

    How many Metro wholesale stores are there in India?

    Metro has 31 wholesale stores in India.

    Is Metro an Indian brand?

    Metro AG is a German international specialist in wholesale and food retail which has made its footprints in 34 countries. The headquarters of this company is in Düsseldorf, Germany. The company operates under the cash and carry wholesale business model.

  • Ecommerce vs Retail | What Is the Best Option for Your Business?

    We often come across the question of whether e-commerce or retail is best for a business. E-commerce is a replica of business that enables individuals and companies to sell their services or products via the internet. On the other hand, retail refers to the brick and mortar businesses, in which individuals sell their goods or services from person to person in shops, malls, and localities.

    WIDGET: leadform | CAMPAIGN: undefined

    According to Statista 2021, total retail sales, both online and offline, amounted to 24.2 trillion USD, out of which 19.1 trillion USD was generated by the brick and mortar retail channel and around 4.9 trillion USD was generated by the eCommerce sales channel. In the same year, global retail sales accounted for a growth of 9.7% as a whole and eCommerce accounted for around 19.6% of total retail sales.

    The digital form of business has seen a great increment specifically in this pandemic. But at the same time, the heavy revenue generated from retail cannot be ignored. In this article, we will discuss different factors that will help you know what is best for your business between eCommerce and retail.

    Ecommerce vs Retail, What’s Better?

    Ecommerce vs Retail, What’s Better?

    Retail Ecommerce Sales Worldwide from 2017 to 2022
    Retail Ecommerce Sales Worldwide from 2017 to 2022

    In the following points, we will discuss a comparison between eCommerce and retail from different perspectives:

    Which Has Lesser Prior Investment?

    Ecommerce
    Starting an eCommerce business may sound like an expensive process but with proper planning and execution, one can start running it on a budget. The investment required to start your eCommerce business in India is nearly 5-10 lakh rupees. It includes building your business website, hosting, domain, sales and management tools, web development, and advertisements.

    Retail
    Investment in setting up a retail store can be an expensive process. A retail store has to invest in various things before selling its product. These include building, buying, or renting a store, paying license fees, hiring staff for multiple positions, paying location tax, investing in filling up the store with sufficient items to attract a customer, and other necessary resources relating to business and government. All such expenses make setting up a retail store far more expensive than starting an eCommerce store.

    So, comparatively, the cost of investment is lower in the case of eCommerce than in retail. The advantage of owning an eCommerce store is that it reduces the cost of setting up a brick-and-mortar store or hiring delivery staff. This is because eCommerce stores send their manufactured products to branches such as Amazon, FedEx, Ship Bob, Flipkart, etc. for order fulfilment. After this, it is the responsibility of these branches to pack, track and send the order to the buyer.

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    Which is Easier to Maintain?

    Ecommerce
    It is easier to maintain eCommerce compared to a retail store. But there are still some complications that need to be checked from time to time so that the store can run smoothly. For example- you need to maintain a warehouse or any proper space to keep the products safe and accessible for dropshipping. Since you are not directly connected with your customers, you will have to keep a check on analytics to track customer experience and discover their new tastes and likings. You will also need to keep a check on the timing of product delivery to avoid negative feedback from customers.

    Retail
    The retail business is considered to be a bit more complicated in terms of maintenance. This is because for various reasons like there is a need to maintain a proper brick-and-mortar store and inventory, and maintenance of an adequate communication balance on both sides in real-time with suppliers and customers. Also, you have to keep a regular check on your staff if they are handling the customers politely. You will have to train them and make them more knowledgeable about the services and products you are offering so that they can deal with the customers pleasantly and accurately.

    It is easier to modernize the stock in an eCommerce store. But this task becomes pretty difficult with retail stores as for updating products, you need to set up meetings with suppliers now and then. So, in case of ease of maintenance, eCommerce is a better option for your business.

    Share of consumers going to brick and mortar stores by country in 2021
    Share of consumers going to brick and mortar stores by country in 2021

    Which Has Better Profitability in Future?

    Ecommerce
    With eCommerce comes a great benefit which is unlimited access to customers. Once you are over the internet, there is no limit to the number of people you can reach. Ecommerce allows you to showcase your products and services to a large number of people, therefore, no limitation to any particular locality. Moreover, you can always expand your business and attract new customers via smart and modern marketing techniques. These include offering free shipping, discounts, gift cards, reward points, etc. All this ultimately ensures better sales and thus, better profits.

    Retail
    Retail stores do not have very wide access to the customers as they have limitations due to their fixed location. However, this does not mean that there are no benefits of a retail store. Even in today’s time, many customers do not feel satisfied until they can touch and feel the products themselves. So, the customers who are still skeptical about online shopping contributes to the sales and profits of retail stores. Moreover, there are fewer chances of online fraud with retail shops, as the customer doesn’t need to provide their personal information including emails, mobile numbers, bank details, etc.

    In this case, eCommerce will be the clear winner because the products and services of eCommerce stores are visible to a huge audience which makes for a large potential customer base and thus, better sales and profits.

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    Conclusion

    We compared e-commerce and retail stores based on investment, performance easiness, and profits obtained. Although there are factors like trusted quality and physical interaction that make retail stores better than eCommerce ones. But after making an overall comparison and looking at the future of the digital world, we concluded that eCommerce stores are the best way to expand your business and earn more profit in the future since it offers a wider reach with less investment.

    However, you can also take another way which is you can opt for omnichannel retail as it allows you to buy products either online or physically through the real stores to keep your customers satisfied in all the possible ways.

    FAQs

    What is the difference between eCommerce and retail?

    Retail is something that can be conducted in a brick-and-mortar store, online, between persons, or through direct mail. However, eCommerce refers to electronic commerce which means commercial transactions that are conducted only through the internet.

    How owning an online store is better than physical stores?

    Owners of the online stores can sell and ship their products and services to a large number of people with fewer investments as buying a website is easier and more economical than buying a physical store.

    What is the biggest challenge faced by eCommerce?

    One of the most significant challenges faced by eCommerce is the security issue. Ecommerce involves a great deal of personal information and even a small technical issue can create huge damage to a business’s operations and image.

    What is a retail store?

    The most common example of a retail store is the conventional brick-and-mortar stores like Walmart, Best Buy, etc. However, retailing as a whole includes goods or services sold through stores, kiosks, or even on the internet.

  • Most Popular And Successful Online Retail Startups In India

    The days when we had to go to various retail stores to buy things for ourselves are going away. The increasing technology has given a massive rise to retail startups.

    With the expansion of digitization, everything is going online. Be it classes, courses, jobs, shopping, or more, all these can be done just with the internet and an internet supporting device.

    Many players like Amazon have been in existence for quite a long time. But the increasing adaptation of Indian customers towards online shopping has given a rise to more players in the market.

    Now, there are various retail startups in India that are going super well and making great progress. These include Nykaa, MeatRoot, Generico, and many more.

    What Are Retail Startups?
    Which is The Largest Retailer in India?
    Top Retail Startups in India

    1. Nykaa
    2. Myntra
    3. Flipkart
    4. Paytm Mall
    5. Blinkit
    6. Lenskart
    7. Sugar Cosmetics
    8. Bombay Shaving Company
    9. Chumbak
    10. FirstCry
    11. Pepperfry
    12. Sleepy Owl
    13. Licious
    14. Arzooo
    15. Faasos
    16. DroptheQ
    17. MeatRoot
    18. DealShare
    19. Healthkart
    20. Zeno Health

    Most Valued Retail Startups in India

    What Are Retail Startups?

    These are the startups that deal in the sale of goods and services to customers. These are responsible for providing the products and services that we need from clothing, food, home appliances, labor, etc.

    Some retail startups may also be the producers themselves. The others, however, connect the producers with consumers. The online retail industry has seen a great expansion in the past decade.

    These are mostly involved in the retail sale of stuff through electronic shopping which means through their sites and applications. They may or may not have store retailing.

    Begging a retail startup can be super challenging for any entrepreneur. This is because of the increasing rise in the competitors and risks in the market. Such businesspersons are the ones who are good at multi-tasking, willing to handle risks, and also survive and thrive in a competitive environment.

    Which is The Largest Retailer in India?

    Reliance Retail

    Reliance Retail Revenue Growth
    Reliance Retail Revenue Growth

    The name that every Indian is familiar with is Reliance. Reliance Retail is the largest retailer in India. In 2006, the enterprise decided to enter the retail industry by initiating its subsidiary, Reliance Retails. Mukesh Ambani founded this and when it comes to profit it is known to be the largest retailer in India. The headquarters is in Mumbai.

    It includes Reliance Fresh, 7 Eleven, Reliance Trends, and Reliance consumer brand.

    Top Retail Startups in India

    Retail startups have now been existing in India for quite some time. The pandemic gave a great rise to retail industry. It not only strengthened the existing startups but also paved way for the new ones.

    The following are the top retail startups in India:

    Nykaa

    Founded: 2012
    Founder: Falguni Nayar
    Headquarters: Mumbai

    It is a beauty retail startup that sells beauty, wellbeing, and apparel products. It was founded in the year 2012. The founder is Falguni Nayar. The headquarters is in Mumbai. It provides products from brands like Maybelline, Lakme, Loreal, and more. Along with these, Nykaa offers a wide range of products under its name as well.

    Its products are available on its website, application, and offline stores. It is one of the most successful retail startups that has now acquired the status of a Unicorn Startup in India.

    Myntra

    Founded: 2007
    Founder: Mukesh Bansal, Ashutosh Lawania, Sankar Bora, Raveen Sastry, and Vineet Saxena
    Headquarters: Bengaluru

    It is a marketplace over the internet that belongs to the industry of retailing. Myntra was founded in 2007 and has headquarters in Bengaluru. The founders are Mukesh Bansal, Ashutosh Lawania, Sankar Bora, Raveen Sastry, and Vineet Saxena.

    It enables the customers to purchase a great range of products. The products include apparel, lifestyle, accessories, mugs, and more.

    Flipkart

    Founded: 2007
    Founder: Sachin Bansal and Binny Bansal
    Headquarters: Bengaluru

    The most prominent names when it comes to retail in India. Flipkart was established in the year 2007. Founders are Sachin Bansal and Binny Bansal. The headquarters is in Bengaluru. The company was acquired by Walmart in 2018.

    The platform offers products in multiple categories and varieties. It offers products from domestic as well as foreign brands.

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    Paytm Mall

    Founded: 2016
    Founder: Vijay Sharma
    Headquarters: Bengaluru

    It is another digital retail startup founded in the year 2016. Paytm mall provides many domestic and foreign products. Vijay Sharma is the founder. The headquarters is in Bengaluru.

    The platform allows the customers to purchase many products at reasonable prices. The products include apparel, furnishing, electronics, and many more.

    Blinkit

    Founded: 2013
    Founder: Saurabh Kumar and Albinder Dhindsa
    Headquarters: Gurugram

    Blinkit (previously known as Grofers) is an online supermarket established in the year 2013 by Saurabh Kumar and Albinder Dhindsa. The headquarters of the startup is in Gurugram, Haryana. This grocery delivery platform links the consumers with local stores.

    When it comes to retail startups, Blinkit is sure to be a prominent name. It provides a great variety of products. These include foodstuffs, fruits and vegetables, bakery, beauty, and more.

    Lenskart

    Founded: 2010
    Founder: Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi
    Headquarters: Faridabad

    It is an Indian eyewear marketplace established in the year 2010. The founders are Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi. The headquarters is in Faridabad, Haryana. This allows customers to have direct access to their preferable eyewear.

    Lenskart offers more than 5000 styles of various eye-wear products. These include contact lenses, spectacles with prescriptions, accessories, etc. It has also opened around 1000 offline stores and is one of the quickest-growing retail startups in India.

    Sugar Cosmetics

    Founded: 2012
    Founder: Vineeta Singh and Kaushik Mukherjee
    Headquarters: Mumbai

    It is an operator of an online retail platform for cosmetics. It came into existence in the year 2012. Founders are Vineeta Singh and Kaushik Mukherjee. The headquarters is in Mumbai. The products offered by Sugar Cosmetics are available online and in offline stores too.

    It offers a great collection of cosmetic products like lipsticks, eyeliners, concealers, and many more. It is the quickest growing startup in the field of beauty in India.

    Bombay Shaving Company

    Founded: 2015
    Founder: Shantanu Deshpande and Rohit Jaiswal
    Headquarters: New Delhi

    It is a specialty retailer of grooming products for both men and women. It was founded in the year 2015 by Shantanu Deshpande and Rohit Jaiswal. The operational center is in New Delhi.

    The startup’s products have become a popular choice of many. Its products include razors, lotions, grooming kits, and more.

    Chumbak

    Founded: 2010
    Founder: Vivek Prabhakar and Shubhra Chadda
    Headquarters: Bengaluru

    It is a design-based retail startup established in the year 2010. The founders are Vivek Prabhakar and Shubhra Chadda. The main center of operations is in Bengaluru. The products are influenced by the world’s different forms of art and culture.

    It also has various offline retail stores. It provides an enormous variety of products. These include home décor, gifting and lifestyle, apparel, and more. The retail startup is super popular for its fun and colorful products.

    FirstCry

    Founded: 2010
    Founder: Amitava Saha and Supam Maheshwari
    Headquarters: Pune

    It is an online retailer that offers more than two lakhs of baby care and kids products. It came into existence in the year 2010. Founders are Amitava Saha and Supam Maheshwari. The main office is in Pune. Firstcry offers products through both online and offline stores.

    The customers get to have its products easily and at reasonable rates. It offers many different products. These include children’s apparel, footwear, toys, gifts, accessories, and many more.

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    Pepperfry

    Founded: 2011
    Founder: Ashish Shah and Ambareesh Murty
    Headquarters: Mumbai

    It is a retail startup that deals in furniture and home merchandise. Ashish Shah and Ambareesh Murty established it in the year 2011. The headquarters is in Mumbai. It provides products from its own brand as well as from others.

    Pepperfry provides a large number of different products in its online furniture marketplace. These include home decorations, kitchen items, furniture, and more.

    Sleepy Owl

    Founded: 2016
    Founder: Ajai Thandi, Arman Sood, and Ashwajeet Singh
    Headquarters: New Delhi

    It is an internet retail startup established in the year 2016. It deals in coffee products. The founders of it are Ajai Thandi, Arman Sood, and Ashwajeet Singh. The main office is in New Delhi.

    Its coffee products are super famous and relished by many as these are made from arabica beans. It sells its products online and also has many outlets in different cities in India.

    Licious

    Founded: 2015
    Founder: Vivek Gupta and Abhay Hanjura
    Headquarters: Bengaluru

    The specialty retail startup offers top-quality meat products. It came into existence in the year 2015. The founders are Vivek Gupta and Abhay Hanjura. The headquarters is in Bengaluru.

    Licious ensures the online delivery of a range of fresh meat products to the customers. The products include chicken, seafood, lamb, etc.

    Arzooo

    Founded: 2016
    Founder: Khushnud Khan and Rishi Raj Rathore
    Headquarters: Bengaluru

    It is an Indian retail tech startup established in the year 2016. Khushnud Khan and Rishi Raj Rathore are the founders of Arzooo. The operational center is in Bengaluru. The startup is a provider of a great collection of electronic products.

    The platform supports opposite auctions where instead of buyers, the sellers tend to propose the price for which they are ready to sell. This helps people to have a fair price for their selected products.

    Faasos

    Founded: 2011
    Founder: Jaydeep Burman and Kallol Banerjee
    Headquarters: Pune

    It is a retail food-providing startup started in the year 2011. Founders are Jaydeep Burman and Kallol Banerjee. The headquarters is in Pune. Faasos offers a cloud-kitchen and dark kitchen model that provides food.

    It runs more than 160 kitchens to provide meals to consumers. Whether you want biryani or your favorite dessert, the startup enables you to get it in no time.

    DroptheQ

    Founded: 2019
    Founder: Vaibhav Singhal, Nikhil Monga, and Swati Agarwal
    Headquarters: Noida

    It is a retail and food-tech venture founded in the year 2019. The founders are Vaibhav Singhal, Nikhil Monga, and Swati Agarwal. The headquarters is in Noida, Uttar Pradesh. It enables people to straight-up place orders from the partner stores through the app.

    As the name suggests, it eases up the shopping experience for users without waiting in the checkout queues.

    MeatRoot

    Founded: 2014
    Founder: Mohit Bhonde, Vrushali Babar, and Shrikant Babar
    Headquarters: Pune

    It is a retail startup for meat products founded in the year 2014. The founders are Mohit Bhonde, Vrushali Babar, and Shrikant Babar. The headquarters is in Pune. The startup is an online store for fresh, frozen, and processed meat.

    It offers products like seafood, chicken wings, exotic meat, pork, duck, goat meat, boneless chicken, and more.

    DealShare

    Founded: 2018
    Founder: Vineet Rao, Sourjyendu Medda, and Sankar Bora
    Headquarters: Jaipur

    It is an online purchasing startup founded in the year 2018. Its main office is in Jaipur, Rajasthan. Vineet Rao, Sourjyendu Medda, and Sankar Bora are the founders. Its platform provides a great variety of products to the customers.

    It allows people to purchase products easily and at cheaper rates. The products offered include fruits, vegetables, accessories, furnishings, etc.

    Healthkart

    Founded: 2011
    Founder: Sameer Maheshwari and Prashant Tandon
    Headquarters: Gurugram

    It is a specialty retail startup established in the year 2011. Healthkart focuses on providing genuine health and nourishing supplements. The founders are Sameer Maheshwari and Prashant Tandon. The main office is in Gurugram, Haryana.

    It allows customers to get everything related to fitness at one stop. It offers protein, vitamin supplements, products for weight loss, personal trainers, and more.

    Zeno Health

    Founded: 2017
    Founder: Siddharth Gadia and Girish Agarwal
    Headquarters: Mumbai

    Zeno Health (earlier Generico) is a pharmacy retail startup established in the year 2017. The founders are Siddharth Gadia and Girish Agarwal. The headquarters are in Mumbai. It operates a chain of retail pharmacy stores to offer generic medicines at a reasonable price.

    It offers great-quality medicines and also has a team of drugstore advisors at its stores. The main aim of this retail startup is to make healthcare more reachable and economical.

    Conclusion

    The startups are growing strong in India. One of the most important industries that have been seeing a great rise in terms of startups is the retail industry. In modern times, Indian customers are becoming more and more comfortable with online shopping. This helps them to have more variety and also cuts the role of middlemen.

    Over the years, many retail startups like Myntra, Nykaa, Pepperfry, and the other above-mentioned have made great progress. These startups are transforming the traditional ways of retail business. These are sure to grow further and also inspire new startups in the field.

    FAQs

    Which are the top retail startups in India?

    Top Retail startups in India are:

    • Nykaa
    • Myntra
    • Flipkart
    • Paytm Mall
    • Blinkit
    • Lenskart
    • Sugar Cosmetics
    • Bombay Shaving Company
    • Chumbak
    • FirstCry

    Which is the largest retailer in India?

    Reliance Retail is the largest retailer in India.

    Which is the world’s largest retailer?

    Amazon and Walmart are the world’s largest retailer.

  • Future Group – Creating And Executing Future Scenarios In The Consumption Space

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Future Group.

    Supermarkets in India are unusual in various aspects, owing mostly to the range of customers and, as a result, the retail sector’s different distribution strategies. The food business in India works throughout channels, from mom-and-pop shops to major supermarkets to online grocery stores.

    We all have heard about the Big Bazar, one of the largest Indian retail chains of hypermarkets. All groceries, food, clothing, and retail stores are united underneath one rooftop. The retail chain of the company was founded by Kishore Biyani’s parent firm, Future Group, which is well-known in the Indian fashion and retail sectors.

    Kishore Biyani founded the Future Group, an Indian firm headquartered in Mumbai, Maharashtra. With prominent grocery chains like Big Bazaar, as well as lifestyle outlets like Brand Factory and Central, the firm is well-known in the Indian fashion and retail industries.

    Future Group – Company Highlights

    Startup Name Future Group
    Headquarters Mumbai, Maharashtra, India
    Industry Conglomerate
    Founders Kishore Biyani
    Founded 1987
    Products/Services Retailing, Insurance, Logistics, Integrated foods, FMCG
    Website www.futuregroup.in

    About Future Group and How it Works?
    Future Group – Industry
    Future Group – Name, Logo, and Tagline
    Future Group – Founders
    Future Group – Startup Story
    Future Group – Mission, and Vision
    Future Group – Operations, and Subsidiaries
    Future Group – Business Model
    Future Group – Joint Ventures
    Future Group – Competitors
    Future Group – Controversies

    About Future Group and How it Works?

    Future Group, an Indian conglomerate, is well-known in the Indian fashion industries and retail, including prominent supermarket chains such as Big Bazaar, as well as lifestyle boutiques such as Brand Factory. The company is also well-known in the FMGC and integrated foods production industries.

    Future Group is a business conglomerate that manages practically all of its operations through its several operational entities depending on target industries. For instance, its retail business segment, Future Retail Limited, operates retail hypermarket or supermarket chains Big Bazaar (now owned by Reliance), FBB, Food Hall, Food Bazaar, Hometown, and others, while its clothing and fashion outlets Central, Brand Factory, and Planet Sports are run by another one of its business units, Future Lifestyle Fashions Limited. Furniture is sold at HomeTown stores around the country as well as digitally.

    The Future Group also advertises its style and sporting brands such as Indigo Nation, Lombard, Spalding Bare, and FMCGs such as  Clean Mate, Tasty Treat,  Fresh, Ektaa, & Pure, Sach, Premium Harvest, and others through these numerous retail boutiques and supermarkets. It has operational firms that handle internal financial concerns and consultancy for the rest of the company.

    Future Group – Industry

    Future Group is a conglomerate or a multi-industry company.

    Retail:

    The retail industry in India is expected to increase to $1.5 trillion by 2030, up from $0.793 trillion in 2020, due to social-economic reasons such as industrialization, rising incomes, urbanization, and the expansion of nuclear families. The Indian e-commerce market, on the other hand, is anticipated to reach $350 billion by 2030, with a CAGR of 23%.

    Financial Services:

    India’s financial industry is broad and quickly increasing, both in terms of new entrants and the robust expansion of current financial services organisations.

    The industry includes commercial banks, insurance companies, co-operatives, pension funds, mutual funds, and other smaller investment companies. The banking regulator has recently approved the establishment of new firms, such as payment banks, extending the sorts of entities that operate in the market. Nonetheless, India’s financial business is predominantly a banking sector, with commercial banks accounting for about 64% of the total capital in the financial system.

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    Future Group – Name, Logo, and Tagline

    Company Logo of Future Group
    Company Logo of Future Group

    According to the Future Group’s website, more than two million people visit their digital networks and stores every day to explore their product brands and collaborate with them in procuring, producing, and transporting items that meet the requirements and ambitions of a newer or future India. This is where their name is derived from.

    Future Group’s tagline says, “Shaping India’s consumption journey.”

    Future Group – Founders

    Kishore Biyani founded the Future Group in 1987.

    Kishore Biyani - Founder of Future Group
    Kishore Biyani – Founder of Future Group

    Kishore  Biyani

    Kishore Biyani, began his career selling stone-wash denim fabric in Mumbai in the 1980s. He is the CEO and creator of Future Group, as well as Big Bazaar and Pantaloon Retail, two retail firms. His ambition was to make something that only the wealthy could purchase available to everyone.

    He planned to develop his own brands and commerce channels, and spend extensively on building the country’s top consuming ecology in the near future. Along the way, he invested in and mentored a number of other entrepreneurs and companies. He exemplifies the company’s motto, ‘Rewrite Rules, Retain Values,’ and believes Indianness to be the organization’s fundamental value.

    Future Group – Startup Story

    Kishore Biyani, the founder of Future Group, started working at his father’s, brothers’, and two elder cousins’ fabric-trading firm, “Bansi Silk Mills,” but was disillusioned and dissatisfied with the way they operated the company. Kishore noted that several of his friends used to wear “stonewashed” cloth pants at that time.

    His first entrepreneurial breakthrough came when he discovered a local fabric producer who specialised in that type of cloth and marketed it to garment manufacturers and distributors in the city. In 1983, he established his own company, ordering the production of attractive cloth for sale to garment makers.

    Pants were once known as “Patloon” in Hindi, from which they derived their brand name Pantaloon. Kishore later founded the Future Group to give his “Pantaloon” brand a new dynamic. Using a franchise concept, he developed the “Pantaloon” brand into retail. Afterwards, when, in 2001, the basis for Big Bazaar was established,  Future Group added a slew of new brands, including Home Town, Ezone, Factory, Food Bazaar, Central, and Fashion at Big Bazaar.

    Kishore listed 60 percent of his firm on the Indian stock market to acquire funding for retail upgrades, development, and advertising in 1992. By 1994, the Pantaloon franchise company had grossed 9 million rupees.

    Biyani built his debut department store in Kolkata in August 1997, first renting and remodelling a 10,000 square foot space. This retail chain was much more than double the size of any other in Calcutta, and within three weeks, he opened 2 more such market stores. In 2001, he expanded his success by creating a network of retail establishments under the Big Bazaar nameplate. There were more than 100 Big Bazaar outlets around the country by 2009.

    The Big Bazaar shops were purposefully built to seem chaotic, similar to the classic market stalls that his consumers were already used to. The Big Bazaar shops serve over two million consumers every week, while Pantaloon Retail employs over 30,000 people and has over 12 million square feet of retail space spread over 1100 locations in 75 cities. Every year, more than 300 million people, or one-fourth of the public, visit or return to the Big Bazaar outlets.

    Future Group – Mission, and Vision

    Future Group’s mission statement says, ” We share the vision that our customers and stakeholders are best served by creating and executing future scenarios in the consumption space leading to economic development.

    We will be the trendsetters in evolving consumer brands and delivery formats and by making consumption affordable for all customer segments. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost-conscious and committed to quality in whatever we do.

    We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.”

    The organisation shares the vision and belief that the best way to serve its customers and stakeholders is to create and implement future consumption scenarios that contribute to economic progress.

    Future Group – Operations, and Subsidiaries

    Financial Services:

    • Future Ventures
    • Future Generali India Life Insurance
    • Future Capital Holdings (for internal financial services)
    • Future Generali General Insurance

    Retail:

    • Future Lifestyle Fashion Ltd
    • Swathi Tiffin Shop
    • Future Retail Ltd
    • Future Enterprises Limited
    • Foodhall
    • Future Consumer Limited

    Other Services:

    • Future Brands
    • Future Innoversity
    • Future Supply Chains

    Future Group – Business Model

    Being in the industry of multi-brand retailing commerce is the company’s primary focus. There are roughly 20 small hypermarket easyday outlets and over 210 supermarket easyday stores available to the organisation.

    Value business and home business are the two most common retail models. Food Bazaar, a supermarket;  Big Bazaar, a hypermarket; Food Hall, a supermarket;  FBB, a fashion destination; and Easyday convenience stores, are all part of the company’s revenue operation. eZone, a consumer durables and electronics chain and Hometown, a one-stop shop for home renovation, are two of the company’s home businesses.

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    Future Group – Joint Ventures

    Generali Group

    Italy-based Generali is an insurance firm that operates in India under the Future Generali Insurance brand.   In India, Future Generali is represented by two legal entities: Generali India Insurance Co. Ltd. (Non-Life Insurance) and  Generali India Life Insurance Co. Ltd. (Life Insurance).

    Celio

    Celio, a French fashion house, first entered the Indian market in 2008 in a 50:50 joint venture with Pantaloons Retail India Ltd, a subsidiary of Future Group (now Future Retail Ltd). Celio increased its interest in the joint venture to 65 percent in November 2013.

    Clark

    C&J Clark International Ltd. is accessories and footwear retailer established in the United Kingdom. The Future Group and Clarks Future Footwear Ltd have a 50:50 joint venture.

    Staples Inc

    Under a joint venture with Future Group, Staples Inc., a US-based office supplies store, has a presence in over nine cities in India.

    FabFurnish

    FabFurnish joined a Future Group company in April 2016.

    Skechers

    In 2012, Skechers entered India with a joint venture with Future Group. Skechers bought out Future Group’s 49 percent ownership in February 2019, bringing the joint venture to a close.

    Future Group – Competitors

    DMart, More, Spencer’s Retail Limited, Bigbasket, Reliance Retail, Star Market, Nature’s Basket, Mahindra, Hypercity, and Peppertap are the top ten competitors in Future Group’s competitive group.

    Future Group – Controversies

    • Future Group and its founder Kishore Biyani are accused by the Jeff Bezos-led e-tailer of disobeying an interim decision issued by a Singapore arbitration court in October, which blocked the asset sale. Amazon has also urged an Indian court to imprison Biyani and has requested local regulators not to accept the Future-Reliance agreement while the arbitration is still ongoing. Amazon charged Future Group of violating provisions of a mutual agreement by publicizing an asset sale transaction with Reliance, the conglomerate led by Mukesh Ambani, in early October 2021.
    • Drowning in debt, Future Retail Ltd (FRL) announced in April 2022 that it has missed the deadline for repaying lenders Rs 5,322.32 crore due to continuing lawsuits with e-commerce giant Amazon and other concerns. This pushed Reliance Industries’ retail arm, Reliance Retail Ventures, to seek an amendment of the agreement’s long-stop date in order to complete the agreement with the Future Group.
    • The halt on the arbitral process between Amazon and Future Group before the Singapore International Arbitration Centre was removed by the Supreme Court of India in April 2022. Future Retail’s request for a stay of proceedings before SIAC will also be heard on a priority basis, according to the Bench. According to the Supreme Court’s judgement, the interim motion will be sent to the Delhi High Court, where proceedings have already commenced, as agreed by both companies.

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    Future Group – FAQs

    What does Future Group do?

    With prominent grocery chains like Big Bazaar, as well as lifestyle outlets like Brand Factory and Central, the firm is well-known in the Indian fashion and retail industries.

    Who founded Future Group?

    Future Group was founded by Kishore Biyani.

    Which companies do Future Group compete with?

    DMart, More, Spencer’s Retail Limited, Bigbasket, Reliance Retail, Star Market, Nature’s Basket, Mahindra, Hypercity, and Peppertap are the top ten competitors in Future Group’s competitive group.

  • How to Build Your Business Around Hyperlocal On-Demand Delivery Model?

    E-commerce business has experienced an immense boom during the last decade and in that boom, the pandemic just added fuel to the fire. You can get anything delivered to your doorsteps with just a few clicks.

    Groceries, apparel, medicine, food, you name it and it can get delivered to you. How the world shop, has changed dramatically, we are more depended on online shopping now, reasons are quite evident. Online shopping is hassle-free, convenient, and doesn’t require much human interaction.

    Due to the rise of various E-commerce sites, it is obvious that people are noticing this industry and the demand is also increasing. Various startups are indulging themselves in this business. There are various business models that can be used in an E0Commerce business, one of them is the Hyperlocal Model. In this article, we will talk about how the Hyperlocal model can be used for your business. So, let’s dive in.

    “Thus, in the future, instead of buying bananas in a grocery store, you could go pick them off a tree in a virtual jungle.” – Yasuhiro Fukushima

    What is Hyperlocal Delivery Model?
    Features of a Hyperlocal Delivery Business Model
    Benefits of Hyperlocal Delivery Model
    How to Build Business around Hyperlocal Delivery Model?
    Companies that use Hyperlocal Model
    FAQ

    What is Hyperlocal Delivery Model?

    Hyperlocal means a certain small geographical area and a defined community. Your neighbourhood or your locality can be termed as hyperlocal. Through the hyperlocal model, a business can cater to the needs of the people from that certain locality. It is an online delivery model that fulfils the needs of the consumers with the help of a local ecosystem, which means the pickup and the delivery location need to be in the same zone.

    The business that uses this delivery model receives the order from the customer for a certain product or service through the app. Then the app passes on the details of the orders to the aggregator and then the aggregator assigns a person that will deliver the requested products or services to the customer’s place.

    Features of a Hyperlocal Delivery Business Model

    Below are some features of this model that makes it unique and useful:

    • The target area in this model is a certain place where people have a high demand for goods and services and through this those demands can be fulfilled instantly.
    • It takes care of the needs of people with the help of modern technology.
    • This model provides the deliveries for the goods extremely fast and they arrive at the customer’s doorstep in no time.
    • GPS, Social Media, and mobile applications are needed so that this model can function in your business.

    Benefits of Hyperlocal Delivery Model

    Some of the benefits that the Hyperlocal model gives out are:

    • The hyperlocal model helps the local retail stores gain the visibility that was endangered due to online shopping sites.
    • Retail shops enjoy a significant advantage and that is they don’t need to create and maintain an app for their business, they can just add their business on the E-commerce platform and it can function easily.

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    How to Build Business around Hyperlocal Delivery Model?

    If you are choosing the hyperlocal model for your E-commerce business, then you need to follow the steps below.

    Choose the Industry

    The first and foremost thing you have to do is select the industry around which you want to build the hyperlocal delivery model. It can be for groceries, food delivery, medicines or other products. The market you choose will decide the future of your business.

    Choose your Target Audience

    After selecting the industry, the next step is to decide your target audience. Not everyone can be your audience, so you must decide to whom you want to serve.

    Form the Partnership

    It is now time to partner up with the retail shop and the aggregator who will provide your customers with the products and services. You need to choose them carefully, as your business reputation depends on them. The delivery network has to be strong.

    Select a Revenue Model

    Think about how you want to earn revenue through this business and what model you want to use. There are inventory-led models, aggregator models and hybrid models in the hyperlocal business model. Choose the one that will go with your business.

    Develop an App

    In this step, you need to build an app, through which your customers, delivery partners, and suppliers will be connected. The app has to be user-friendly and hassle-free, this way it will strengthen your customer base.

    Companies that use Hyperlocal Delivery Model

    Haptik

    Through this app, you can book your movie tickets, recharge your phone, and order food.

    Zomato

    One of the biggest food delivery apps that serves the people of India. You can book a table in a restaurant, order food, and discovers multiple restaurants that serve your favourite cuisines.

    Pluss

    The app delivers your medicine to your doorsteps and can also conduct any tests suggested by your doctor here, they will deliver the report after completing your test.

    Blinkit

    This app delivers groceries to your place, not only that it also delivers other products including cosmetics and frozen foods.

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    Conclusion

    At present, the Hyperlocal model has become one of the most important ones in the E-commerce sector. In a fast world, having your things delivered to you in lesser times is one of the blessings of this model and that is what attracts the customers. With time, the apps by the businesses that follow this model need to be more developed so people can receive better services. The business will continue to grow when they try to better itself.

    FAQ

    What is the hyperlocal delivery model?

    The hyperlocal delivery model is an online business model where the demand of the customers can be fulfilled through local shops.

    What is Hyperlocal targeting?

    Hyperlocal targeting means targeting your audience from a selective geographically limited area.

    What is a Hyperlocal delivery system?

    It is a process of delivering goods from a seller to customers from the same locality.

    How would you build your business around an on-demand hyperlocal delivery model?

    Select the industry you want to operate in, select your target audience, Partner with an aggregator, build an app, and prepare a revenue model.