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Tag: Revenue model

  • Etsy – Start your Small Business Today!

    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 Etsy.

    Everyone has vintage products, handmade things, crafty goods, etc., but there is always a shortage of such products. Money is not always the key to reach towards the things desired. People need to enter the right place at the right time. This is the only way to find out extraordinary things.

    Leading Sellers on Etsy Worldwide in 2022
    Leading Sellers on Etsy Worldwide in 2022

    Etsy is such a place that especially focuses on handmade, vintage, and craft supplies. These three sections have got some categories within them. Here is the Etsy success story and exactly how it works!

    Etsy – Company Highlights

    Startup Name Etsy
    Headquarter Brooklyn, New York, US
    Sector E-commerce
    Founders Rob Kalin, Chris Maguire, Jared Tarbell, and Haim Schoppik
    Founded 18 June 2005
    Website etsy.com

    Etsy – About
    Etsy – Startup Story
    Etsy – Founders And Team
    Etsy – Logo
    Etsy – Business Model
    Etsy – Revenue Model
    Etsy – Funding And Investors
    Etsy – Growth
    Etsy – Competitors
    Etsy – Future Plans

    Etsy – About

    Etsy is an American e-commerce company that has a wide range of categories. It includes bags, clothing, jewelry, furniture, toys, art, and tools. The specialty of the company is that it provides vintage, handmade, and crafty supplies to its customers. All vintage items available on the website have got the least age of twenty years. The present CEO of Etsy is Josh Silverman.

    The Guide To Start Your Business On Etsy From Beginner to Expert
    Etsy is a unique marketplace for handmade items, vintage goods, and craftsupplies. Whatever objects you love to craft, no matter what niche, there arehuge customers out there looking for your product, and most of them are browsingon the Etsy marketplace. You’ll find a community of makers, small-b…
    StartupTalkySouvik Dey

    Etsy – Startup Story

    In the year 2005, the four founders of the company started Etsy in a Brooklyn apartment. The company started as a virtual storefront for arts and crafts. The actual vision of the four founders was to help the craftsmen sell their goods on an online platform. Rob Kalin, a founder of the company removed himself from the day-to-day operations. After a lot of struggle, today the company is an artisanal marketplace.

    Etsy – Founders And Team

    Rob Kalin, Chris Maguire, Jared Tarbell, and Haim Schoppik are the Etsy Founders.

    • Rob Kalin is one of the Founders of Etsy. He was the CEO of the company from December 2009 to July 2011. His CB Rank as a person is 4,224.
    • Chris Maguire was the Co-founder and director of Etsy from December 2004 to August 29th, 2008. Now, he is the chairman and CEO of Cypress Equities.
    • Jared Tarbell is an entrepreneur. He is the Co-founder of the company Etsy. His CB Rank as a person is 76,313. He completed his education at New Mexico State University in the year 2000.
    • The founder of Etsy Haim Schoppik is also an entrepreneur. His CB Rank as a person is 6,161.
    Rob Kalin | Etsy Founder
    Rob Kalin | Etsy Founder

    Etsy has a simple logo with the words Etsy written on it.

    Etsy Logo
    Etsy Logo

    Etsy – Business Model

    The Etsy business model is that of an e-commerce marketplace. It enables artists to sell handmade unique products. Handmade products do not interest all. This platform is especially for those few interested and selective people. The business model of the company is almost like eBay or Amazon.

    But the difference here is Etsy provides amazing value to both its buyers as well as sellers. The business model of Etsy is a vertical one. It only focuses on handmade items. The company has got an android app, a website, and an iOS app to sell its products.

    How To Start An Etsy Shop: A Complete Guide
    This post is no less than a comprehensive guide if are looking to set up an Etsyshop from scratch. Setting up an Etsy shop can seem a little bit overwhelming. By the time you are done reading this post, you will become familiar withcreating an Etsy shop. As of 2019, more than 2.5 million dealers…
    StartupTalkyDevashish Shrivastava

    Etsy – Revenue Model

    The Etsy revenue model is unique.

    Etsy charges sellers to list items on its platform. The fee is meager for listing items. It is $0.20. The money paid is valid for four months. So, it’s a big point for the sellers.

    Etsy charges a commission fee for every sale, 6.5% is the fixed commission fee. Sellers have got the option of setting their own desired sale price. But Etsy cuts a commission of 6.5% from the sale price as mentioned above.

    Etsy – Funding and Investors

    The company has raised a total amount of $97.3 million in funding over nine rounds. The latest funding round took place on May 15, 2017.

    Date Transaction Name Money Raised Lead Investor
    May 15, 2017 Post-IPO Equity – –
    May 22, 2014 Private Equity $5.6 million –
    May 9, 2012 Series F $40 million Index Ventures
    August 26, 2010 Series E $20 million Index Ventures
    January 1, 2008 Series D $27 million Accel
    July 1, 2007 Series C $3.3 million –
    January 1, 2007 Series B – –
    November 1, 2006 Series A $1 million Union Square Ventures
    June 18, 2005 Angel Round $400,000 –

    Etsy has got 19 investors and TGP is the most recent investor.

    Etsy – Growth

    The company is trying its best to grow bigger. Etsy announced that they would start advertising on behalf of the sellers. It is also changing many designs to boost sales and show growth to its sellers. In the year 2015, Etsy hit the stock market. Investors were super excited at that time by seeing the potential of the platform. The company is willing to provide a fascinating look to an idealistic group of people. They are also trying hard to fulfill the demands of the public market.

    Etsy – Competitors

    The top competitors of the company are Shopify, Big Cartel, Zibbet, and Handmade at Amazon.

    • Shopify is a Canadian multinational e-commerce company.
    • Big Cartel is a unique online store. It helps people run creative businesses.
    • Zibbet is a marketplace. It helps people to know more about artists, entrepreneurs, and creativity.
    • Handmade at Amazon helps people to shop for handcrafted home decor, jewelry, accessories, and many more gifts.

    Customized Gift Store Start-up Plan: Things You Will Need To Initiate
    A gift is something that always makes one happy, regardless of the value. Andwhen it comes to something that you personally like are no less than bliss. Soimagine being able to produce gifts that are close to someone’s heart for anyreason. Making someone happy with the exact things they prefer is…
    StartupTalkyBaishali Das Adhikari

    Etsy – Future Plans

    The company has got a long-term strategy. The goal was, is, and will be to bring unique and creative things to the market. They have plans to deliver sustained growth. The company believes that four elements will help them grow its business better – a collection of unique items, first-class discovery, human connections, and trusted brands. These four things are very essential for a company. This applies not only to Etsy but also applicable in other companies to enlarge their businesses. Chief Financial Officer commented in a meeting that he and his team believe that product improvements have taken place.

    Conclusion

    Etsy is an e-commerce platform that focuses on handmade, vintage, and unique items. It allows small business owners and independent creators to sell their products to a global customer base. It has become a popular destination for unique and handcrafted items.

    FAQs

    What is Etsy?

    Etsy is a US-based online marketplace where anyone can sell handmade products.

    Is Etsy Available in India?

    Yes, Etsy is available in India.

    Is Etsy owned by Amazon?

    No, Etsy is an independent company.

    Who founded Etsy?

    Robert Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell founded Etsy on June 18, 2005.

    How much does it cost to use Etsy to sell?

    Etsy will charge you $0.20 for listing each item and a 6.5% transaction fee for every sale.

  • Alibaba – A Platform Where Global Trade Starts And Ends

    The content in this post has been approved by Alibaba.

    Trust issues are common. People often face challenges with e-commerce companies. But the question is, are the suppliers verified? People usually worry about prices too. But with Alibaba, this is not an issue. Everything available here is at factory prices and all the sellers are verified.

    Alibaba Group is a Chinese multinational conglomerate holding company specializing in e-commerce, retail, Internet, and technology. Founded in 1999 by Jack Ma, the company operates in various business segments, including wholesale and retail online marketplaces, such as Taobao and Tmall, as well as online and mobile payment systems, shopping search engines, and cloud computing services.

    It is also involved in the production of electronic components, as well as in the research and development of artificial intelligence and other technology. Alibaba is considered one of the largest e-commerce companies in the world and is often compared to Amazon. It is also one of the world’s largest venture capital firms and investment corporations. Here is the Alibaba success story.

    Company Highlights

    Company Name Alibaba
    Headquarters Hangzhou, China
    Founders Jack Ma, Joseph C. Tsai, Cathy Zhang, Trudy Dai, Peng Lei, Simon Xie, Jin Yuanying, Jianhang Jin, Jane Jiang, Eddie Wu, Ma Changwei, Tony Yiu, Zhou Yuehong, Shi Yufeng, James Sheng, Lou Wensheng, Han Min and Toto Sun
    Founded 4 April 1999
    Valuation $310.41 Bn (Jan 2023)
    Website alibaba.com

    Alibaba – About
    Alibaba – Founders and Team
    Alibaba – Startup Story
    Alibaba – Business Model
    Alibaba – Revenue Model
    Alibaba – Tagline, Slogan, and Logo
    Alibaba – Funding and Investors
    Alibaba – Growth
    Alibaba – Competitors
    Alibaba – Future Plans

    Alibaba – About

    Alibaba Group Holding Limited is also known as Alibaba Group. This is a Chinese multinational technology company. It is the world’s largest e-commerce company. The company has already made a record on the 2018 edition of China’s Single’s Day.

    5 Fascinating E-commerce Checkout Tricks To win More Sales Tactics That Can Help Your Business Grow
    If the customers have committed to buy a product. Your duty is to get themthrough checkout as quickly as possible. Most of the online stores find the bestway to reduce the number of steps is to use one-step checkouts. But that onestep checkout is not different from five-step checkout. If the one-…
    StartupTalkySweta

    Alibaba – Founders and Team

    Jack Ma, Joseph C. Tsai, Cathy Zhang, Trudy Dai, Peng Lei, Simon Xie, Jin Yuanying, Jianhang Jin, Jane Jiang, Ma Changwei, Eddie Wu, Toto Sun, Shi Yufeng, Zhou Yuehong, Lou Wensheng, Han Min and Tony Yiu are the founders of the company Alibaba.

    • Jack Ma is the founder and also the former executive chairman of Alibaba group. He is a Chinese business magnate, philanthropist, and investor.
    • Joseph C. Tsai is also the founder of the Alibaba group. He is a Taiwanese-born Canadian billionaire businessman and philanthropist.
    • Cathy Zhang is the founder of the company. She is Jack Ma’s wife and is a former Chinese teacher.
    • Trudy Dai is a member of the founding team. She did join the company from the beginning itself. Since January 2017 she has been the president of wholesale marketplaces.
    • Peng Lei is one of the founders of the company. She is also known as Lucy Peng. She is a Chinese billionaire businesswoman.
    • Simon Xie is also a founder of Alibaba group. Before joining Alibaba group he completed his engineering degree from Shenyang University.
    • Jin Yuanying is another founder of Alibaba Group and Taobao. She has been responsible for both the companies mentioned above.
    • Jianhang Jin joined the Alibaba group in the beginning as a founding member. He has been the President of the company since August 2014.
    • Jane Jiang is a founding member of the company. Currently, Jane Jiang is the Deputy CPO of the company.
    • Eddie Wu is one of the founders of the company. Eddie Wu is the Senior Vice President. Eddie Wu handles three business units of the company.
    • Ma Changwei is also a founder of the company. Ma Changwei is an investor and director at Taobao Product Technology Center.
    • Tony Yiu is one of the founders of the company. In the  International Business Unit, he was responsible for IDC operation and maintenance.
    • Zhou Yuehong is also a founder of the company. He studied at Hangzhou Dianzi University.
    • Shi Yufeng is the co-founder of Taobao. He is one of the original founders of the Alibaba group.
    • James Sheng is the founder of the company. James Sheng is the senior vice president of the company.
    • Lou Wensheng is again one of the original founders of the company. In the beginning, he was responsible for the planning of the official website.
    • Han Min is also a founder of the company. He is a former South Korean Minister of Defense.
    • Toto Sun is also an original member of the company.
    Jack Ma - Founder of Alibaba
    Jack Ma – Founder of Alibaba

    Alibaba – Startup Story

    Jack Ma started the Alibaba group with other 17 original founders. Back in 1999, he started a wholesale online marketplace called Alibaba. The Chinese company blossomed into one of the most valuable corporations in the world. Now the world knows Alibaba. When Alibaba started, in India there was nothing in this sector. The dawn of the 21st century appeared to be lucky for Alibaba. It was growing as well as investing. It benefited from strict internet-controlling policies. The story seems like Alibaba grew into a global e-commerce giant from a small apartment.

    Jack Ma: China’s Richest Man And Co-Founder Of Alibaba| Jack Ma Story
    Quite often you would come across motivational and awe inspiring posts of howJack Ma dealt with his struggles. Jack Ma’s net worth is $44.3 billion, Jack Mais China’s richest man and one of the richest individuals in the world. Startinghis career as an English teacher, he co-founded one of the la…
    StartupTalkyPiyush Mishra

    Alibaba – Business Model

    The company acts as a middleman between buyers and sellers online. It facilitates the sale of goods. The majority of sellers are small merchants. Alibaba caters to almost all well-known big brands. Customer experience is a big issue for the company. Sellers cannot deliver goods that are sold. The company charges the merchant’s a fee to have their listings higher on the search rankings. The company has dominated the shopping space in China but doesn’t have a physical store anywhere.

    Alibaba – Revenue Model

    Alibaba’s revenue is derived from retail e-commerce and associated market services in China. The company collected a revenue of $134.567 billion in 2022, a 22.91% increase from 2021. It charges commissions as a percentage of the transaction value of goods sold. China Wholesale and Other Revenues are expected to be about 12% of the total revenues. Chinese consumption drives wholesale commerce and logistics service revenues.

    The tagline of the first Alibaba job advertisement was If not me, who? It’s not a question but a call of duty. The proverb shows a sense of ownership here.

    The Alibaba logo has got two typefaces. It’s the face of a satisfied customer. The person inside is smiling.

    Alibaba Logo
    Alibaba Logo

    Alibaba – Funding and Investors

    The company had raised an amount of $8.9 billion over 16 funding rounds.

    Date Transaction Name Money Raised Lead Investors
    June 2, 2016 Post-IPO Equity $1 Bn –
    March 10, 2016 Post-IPO Debt $3 Bn –
    August 1, 2014 Venture Round – –
    April 1, 2014 Secondary Market $100 Mn –
    October 9, 2013 Secondary Market – –
    October 1, 2013 Secondary Market – –
    March 4, 2013 Secondary Market – –
    September 1, 2012 Private Equity Round $2 Bn China Investment Corporation
    September 22, 2011 Private Equity Round $1.6 Bn DST Global, Silver Lake
    September 13, 2011 Secondary Market – –

    Alibaba is funded by 32 investors. GIC and Temasek Holdings are the recent investors.  

    Alibaba – Growth

    The company has positioned itself as the gateway to Chinese consumers. The company continues to grow. It had over 903 million users in Q1 2022 and the number is growing.

    Alibaba’s Annual Active Consumers in China from 2017 to 2022
    Alibaba’s Annual Active Consumers in China from 2017 to 2022

    Alibaba – Competitors

    The main competitors of the company are Amazon, Tencent, Huawei, and China Mobile.

    • Amazon is a technology company. It focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
    • Tencent is also a Chinese multinational company. It specializes in Internet-related services and products, artificial intelligence, and technology.
    • Huawei is a leading platform that provides information and communications technology.
    • China Mobile is a company that provides mobile voice and multimedia services. Through its nationwide mobile telecommunications network across mainland China and Hong Kong.

    Top Chinese Investors In The Indian Startup Ecosystem
    Chinese investors have had a significant presence in the startup ecosystem InIndia. After the recent dispute at the Indo-China border, the Indian public isactively participating in the #BoycottChineseProducts movement. This has alsoresulted in the boycott of the services and products offered by d…
    StartupTalkyYash Taneja

    Alibaba – Future Plans

    The company is aiming towards reaching 2 billion global consumers by fiscal 2036. The company is also looking forward to creating more than 100 million jobs. And also support small and medium businesses.

    FAQs

    What is Alibaba?

    Alibaba Group is a Chinese multinational conglomerate holding company specializing in e-commerce, retail, Internet, and technology.

    Is Alibaba bigger than Amazon?

    Alibaba ranks second with a market cap of over $304.1 billion, whereas Amazon ($1 trillion market cap) ranks first among the leading large-cap e-commerce companies worldwide.

    When was Alibaba founded?

    Alibaba was founded in 1999 by 18 people.

    What is the Indian version of Alibaba?

    TradeIndia is an Indian version of Alibaba.

    Is Alibaba banned in India?

    Yes, the Alibaba marketplace has been banned in India with the ban of Chinese apps in the country.

  • United Parcel Service – Shipping with Confidence

    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 Uni.

    United Parcel Service is the world’s premier package delivery company and a leading provider of global supply chain management solutions. They deliver packages each business day for millions of shipping and delivery customers in over 220 countries and territories.

    United Parcel Service – Company Highlights

    Company Name United Parcel Service
    Headquarters Sandy Springs, Georgia
    Primary Industry Courier
    Founders James E. Casey
    Founded In 1907
    Website Ups.com

    United Parcel Service – About
    United Parcel Service – Industry
    United Parcel Service – Founders and Team
    United Parcel Service – Startup Story
    United Parcel Service – Mission and Vision
    United Parcel Service – Name, Tagline, Logo
    United Parcel Service – Business Model
    United Parcel Service – Revenue Model
    United Parcel Service – Employees
    United Parcel Service – Challenges Faced
    United Parcel Service – Acquisitions
    United Parcel Service – Competitors
    United Parcel Service – Awards and Achievements

    United Parcel Service – About

    United Parcel Service (UPS) is a global and the largest package delivery company in the world. It is also the largest express carrier and provider of logistics services. UPS has built a global transportation infrastructure to offer its comprehensive portfolio of guaranteed delivery services to customers around the world. As a global provider, UPS offers supply chain and chain management solutions, as well as large package transportation services for businesses of all sizes. With its extensive network and reliable service, UPS is one of the leading companies in package delivery and supply chain management worldwide.

    United Parcel Service – Industry

    The courier industry in the US has been growing steadily as a result of several reasons. The commerce market is one of the biggest drivers, with increasing technological developments and significant penetration of digital commerce. This has stimulated growth in demand for delivery services for both businesses and consumers alike. Drone delivery services are also becoming increasingly popular, offering quick and efficient local delivery services to customers. Furthermore, locker delivery systems have gained traction among customers who prefer convenient home deliveries.

    United Parcel Service – Founders and Team

    Claude Ryan and Jim Casey - Founders, UPS
    Claude Ryan and James E. Casey – Founders, UPS

    James E. Casey was an American businessman who found the American Messenger Company, which is now commonly known as UPS. He found the company originally in Seattle, Washington as a 19-year-old young boy. He was the president and CEO of his newly founded company and Claude Ryan was his partner. He made his brother George and other teenagers his messengers. The only motto of the new venture was “best service and lowest rates”.

    United Parcel Service – Startup Story

    Founded in 1907, UPS began as a regional parcel delivery service and now its operations encompass the delivery of packages and documents to more than 220 countries. Its small package operations include both domestic and international package delivery services for letters, documents, and packages up to 150 pounds. UPS also provides palletized freight services for heavier items as well as customized supply chain solutions. With an extensive ground fleet, air fleet, and global logistics network, the company’s operations provide delivery of packages between points within the same country or across international borders. As a major player in the delivery industry, UPS is committed to meeting customer needs with cost-effective solutions that ensure their shipments are delivered on time.

    United Parcel Service
    United Parcel Service

    In 1913, it changed its name to United Parcel Service and began offering parcel post services. By 1919 they had expanded their operations to include delivery services throughout the United States and beyond. This made them one of the first international delivery firms in history. In 1975, UPS became an alternative to traditional post office services by providing affordable parcel delivery options for individuals and businesses alike. Today, UPS is a global logistics and supply chain powerhouse. With its vast network of air, ground, and freight services, UPS works with customers to provide tailored solutions for their shipping needs. The UPS Supply Chain Solutions division offers complete end-to-end supply chain management solutions in over 220 countries and territories. The company also has specialized services for large-volume shippers such as UPS Freight, which provides truckload brokerage services throughout North America. In addition to its core shipping business, the company also offers financial services through its subsidiary, UPS Capital.

    History of UPS

    United Parcel Service – Mission and Vision

    In the beginning, the motto of the company was to send messages to people at better prices. Later the company expanded its mission and vision of the company broadened and here go the statements. The mission of UPS company is “To provide solutions and world-class customer service by ensuring our retailers are supported in the over 5,000 communities we serve”.

    The vision of the company is, “Passionately support the small businesses in our neighborhoods because their community is our community”.

    UPS - Logo
    UPS – Logo

    The company was first founded as American Messenger Company which was later renamed United Parcel Services and it concentrated only on courier services earlier. The tagline briefs the motto of the company which is Customer First, People Led, Innovation Driven.

    The company has made a stable and reliable color palette for the logo which is gold and brown. The shiningly embraced key symbol on the logo depicts more sustainability and strength of the brand.

    United Parcel Service – Business Model

    United Parcel Service (UPS) is the largest package delivery company in the world. Its service includes UPS Freight, parcel delivery, and global supply chain solutions. UPS operates distribution centers and truckload transportation services across the US Domestic, Europe, Asia Pacific, Middle East, and Africa regions. It has established a strong presence in over 220 countries and territories around the world. The company provides customers with domestic package delivery services as well as international parcel shipping solutions. Additionally, it offers UPS supply chain services including contract logistics, freight forwarding, and customs brokerage to help customers manage their global supply chains. is a global delivery company with a business model that includes various supply chain and logistics solutions. It provides distribution services, freight distribution, and package delivery services to businesses and consumers worldwide.

    United Parcel Service – Revenue Model

    United Parcel Services (UPS) is one of the leading parcel service companies in the world. Its business and revenue model is based on its package reporting segment, which includes domestic carriers, package delivery services, and cargo handlers. UPS offers small package operations, air cargo services, and palletized freight delivery systems to customers across the globe.

    With its vast network of more than 200 countries and territories, it provides customers with timely delivery solutions for their parcels. UPS is constantly innovating its package delivery system to meet customer demand efficiently. Its advanced technology allows customers to monitor their packages at all times through its website or mobile app which makes it easier for them to track their shipments in real time. Additionally, UPS has been expanding into other segments such as 3PL logistics, supply chain management services, and e-commerce fulfillment solutions to stay competitive in the marketplace. The company has also been investing heavily in research & development as well as new technologies such as drones which can be used for more efficient deliveries of smaller packages or goods over short distances within urban areas where traditional ground transportation might not be feasible or cost-effective due to traffic congestion or distance traveled per mile etc.

    United Parcel Service – Employees

    UPS believes in the strength of the employees which constantly drives the success of the company. UPS helps its employees to pursue great career and personal development. UPS also encourages its employees towards a positive culture and provides opportunities to learn and grow. The benefits also include competitive pay, healthcare including dental, medical, vision, retirement benefits, career growth, paid time off, employee discounts with top retailers, a variety of work shifts, adoption assistance, and also discounted employee stock purchase plans.

    United Parcel Service – Challenges Faced

    Due to the increased online sales, UPS is forced to invest in the infrastructure which ends more than capital spending. The covid has also collapsed courier services by mixing and matching the deliveries.

    United Parcel Service – Acquisitions

    UPS is a global leader in logistics and supply chain management. It offers a wide range of delivery services, from UPS Truckload and UPS Freight to air, package, forwarding, and SurePost services. Through its acquisition of companies such as Marken and Coyote Logistics, UPS has been able to enhance its capabilities in freight forwarding and business-to-business distribution. With the acquisition of Quantum View Data Services and Mail Boxes Etc., it has become an even bigger player in the parcel delivery industry. The company also recently acquired Kiala to expand its presence in Europe. In addition, it offers warehousing solutions through its Supply Chain Solutions division as well as international shipping through its Global Forwarding division. All these acquisitions have allowed UPS to provide a comprehensive suite of services that meet the needs of all types of businesses across multiple industries around the world.

    United Parcel Service (UPS) has been a major international shipper for many years. In recent years, the company has acquired several other companies to expand its delivery solutions and global supply chain capabilities. UPS acquired Fritz Companies in 2018 and Tiger International in 2020, while FedEx bought Tiger in 2018 as part of a stock swap agreement. These acquisitions have helped UPS become one of the top players in the overseas shipping war. UPS provides innovative delivery solutions that help businesses streamline their supply chain operations and improve customer service levels around the world. As a result, it is now one of the most recognized names when it comes to parcel services worldwide

    United Parcel Service – Competitors

    The courier industry is filled with new ventures from small ones to bigger unicorns. The topmost competitor of UPS currently is FedEx. The other top competing companies include the United States Postal Service, Australia Post, Ryder System Inc., DPDgroup UK ltd., and XPO logistics.

    United Parcel Service – Awards and Achievements

    • Ken Finnerty (UPS vice president, enterprise data & analytics) receives Informatica Chief Data Officer Analytics Champions Award
    • Carol B. Tomé recognized on the Top 50 CEOs for Diversity list
    • UPS China wins Chinese government sustainability awards
    • UPS named to Top 50 Companies for Diversity list
    • UPS named to Fortune World’s Most Admired Companies list
    • UPS receives America’s Top Corporations for Women Business Enterprises award
    • UPS was rated one of the “World’s Most Admired” companies and the No. 1 company in the delivery industry in an annual survey conducted by FORTUNE magazine

    FAQs

    Will UPS deliver without a signature?

    Shipments that do not require a signature can be left in a safe place.

    How many days does UPS take to deliver?

    UPS usually takes 3 days to deliver the package.

    Does UPS charge by weight or size?

    Rates are based on the total actual weight or the total dimensional weight of all packages in a shipment, whichever is greater.

    How do I calculate UPS shipping costs?

    1. From any page on ups.com, select the Shipping tab.
    2. Select Calculate Time and Cost.
    3. Follow the directions, noting the required fields.

    How long does it take for UPS to clear customs?

    Typically, it can take minutes or hours for a package to clear customs. However, if there is a problem, it can take days or even weeks.

  • Revenue Generation Model of Television Channels

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

    Emergence & Expansion of the Television Industry

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

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

    Revenue Generation Model

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

    1. Advertisements

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

    2. Subscription Services

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

    3. Sponsorships & Product Placements

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

    4. Licensing Owned Content

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

    5. Re-transmission Fees

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

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

    Trends in the Television Industry

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

    Conclusion

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

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

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

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    FAQs

    How do free TV channels make money?

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

    How much does it cost to start a TV channel?

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

    What is the benefit of high TRP?

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

    What is the revenue model for TV Channels?

    The two key methods of revenue for TV Channels are:

    • Subscriber fee
    • Advertising

    How many TV channels are there in India?

    There are 850 TV channels in India.

    What is full form of TRP?

    TRP stands for Television Rating Point.

    Who calculates the TRP for Television Channels?

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

  • A Detailed Look at Spotify’s Marketing Strategies

    Spotify is a premium music streaming service and one of the most popular internet destinations. It’s an excellent platform for musicians, artists, content creators, and other podcasters to share their work with a worldwide audience. Among the numerous digital media, Spotify possesses a number of traits that distinguish it as the undisputed king of music and audio streaming services.

    Daniel Ek created Spotify in 2006 with the straightforward idea of deterring music piracy and assisting artists in becoming more fairly compensated. Because of its simplicity and marketing approach, it now has nearly all of the best up-and-coming singers and songwriters as well as local musicians on its platform.  Spotify’s exceptional product and the time of its launch are both key contributions to its success.

    Marketing Strategies of Spotify

    Marketing Strategies of Spotify

    The average Spotify user is committed, spending around 118 minutes each day listening to the service, and the audience is more feminine than male (56% to 44% male). Young adults are the most common Spotify users, although elderly folks also like the app.

    Spotify leverages user data to find and follow up-and-coming local musicians, who are subsequently marketed to a global audience. This article discussed some key factors that influenced this company’s activities.

    Spotify Monthly Active User Region wise

    Let’s look into the  top strategies in detail that help Spotify to secure a 34% market share

    Freemium Model

    A free basic service is provided as part of a freemium pricing strategy. Freemium, which offers a limited, ad-supported music service for free, continues to be what sets Spotify apart from its competitors. Between-song advertisements are a source of revenue for Spotify for those who choose the free membership. The beauty of the freemium business model is that users can listen to music for free, which in turn helps to eliminate the need for piracy.

    Spotify’s free service is a great way to increase its user base and get more word-of-mouth referrals. Having a free version of the service allows more people to try it out and see how it can benefit them. In turn, these users are more likely to tell their friends about Spotify, which helps the company grow even more. More than half of Spotify’s listeners choose the free version, which boosts the chance of word-of-mouth referrals while simultaneously helping the company generate revenue from ad listening. These referrals can boost sales.

    Spotify Annual Revenue from 2016 to 2022

    Personalization

    Spotify’s AI interface is designed to be personalized for each user. Whether it’s a millennial using Spotify for podcasts or music, or Gen X searching for trending Instagram music, Spotify is ready to cater to all their preferences. Personalization may help organizations stand out in a crowded market. Businesses may differentiate themselves from the competition and retain customers by producing content that is specifically tailored for the user.

    In order to make its AI interface more individualized for each user, Spotify redesigned it in 2016. Accordingly, each user gets content that is customized to them (such as pre-made personalized playlists). In addition to making the entire experience more pleasurable, this assists individuals in discovering new music that they are more likely to appreciate.

    Minimalistic App Interface

    It’s important for brands that offer services on digital platforms to prioritize the user experience above all else. Spotify excels in this area by offering in-app features that are user-friendly and on target. Spotify’s simple design is an improvement over other music apps’ complex designs and offers a premium experience, even in the free version.

    Spotify wins users over with its sleek and ad-free design. The app’s audio ads are interactive and non-intrusive, which shows that the company knows how to strike a balance between being impactful and keeping things simple! The color scheme used on the app and the website is very energetic and attracts the millennials and GenZ.

    Number of Spotify Premium Subscribers

    Connecting Artists for Collaboration

    Spotify not only increased its audience base by collaborating with artists, but it also gained exclusive content. This is a familiar technique that not many companies use. By including visual and audio elements in their songs for free, Spotify made the artist’s work more accessible to their listeners. This is a major reason that more and more artists want their music to be published on Spotify.

    In 2020, when people were stuck at home, the podcast community started to grow. Spotify saw an opportunity and entered the market. They not only signed deals with big brands like Joe Rogan, but also featured people like Robert Downey Jr, Elon Musk, and Mike Tyson exclusive on Spotify. This gave them a huge advantage over their competitors.

    Emotional Ads for Promotion

    In 2013, after Spotify started to face competition from companies such as Apple and Amazon, they released an advertising campaign that focused on the emotional power of music. The campaign was very successful in helping Spotify stand out from its competitors and remains one of the company’s most memorable marketing moments.

    They released three video ads showing people of all ages and backgrounds enjoying music. While the ads feature different people, they all capture the joy and emotion that comes with listening to your favourite artist. The narration describes the feelings the people are experiencing, and how music can transport you to another place entirely.

    The following year, Spotify introduced its #thatsongwhen campaign, which invited users to express the feelings and experiences connected to their favourite songs. At a period when Spotify had just about 8 million paying users, both of these efforts aimed to raise the company’s brand awareness (compared to 155 million today). #Onlyyou campaign in 2021 and #Spotifywrapped in 2022 were all part of the emotional marketing strategy. Spotify also leverages emotional marketing to refresh its connection with its audience.

    People’s decisions can be influenced through emotional marketing. Ads become more memorable, shareable, and likely to boost purchases when they appeal to human emotions. When you examine the data, you’ll see that emotionally driven businesses get three times as many word-of-mouth recommendations and that emotionally driven advertisements are almost twice as likely to be successful. They also result in a 23% boost in sales.

    You must follow Spotify on social media if you enjoy music. The well-known music streaming service frequently publishes articles on various musicians and new album information. Spotify works on keeping unified branding across all of its social media profiles, which include separate accounts for various geographic regions. This social media marketing helps Spotify gain a large audience base. The platform not only runs various hashtag campaigns and social media trends to create awareness for its brand but also collaborates with social media influencers and runs sponsored ads. By working with influencers, the platform is able to promote its brand in a variety of styles that are sure to reach a wide audience.

    Social media trends can quickly make or break a business. In 2018, an auditory illusion was posted on Reddit that went viral. While some listeners claimed a man was saying the name “Yanny,” in an audio clip, others were certain it was the word “Laurel.”Spotify noticed the trend and decided to create a new billboard that capitalized on the conversation. Yet again, the brand’s cutting-edge approach was a hit and caught the attention of social media users.

    Brand Collaborations

    As of 2022, Spotify has partnered with 76 companies across the globe. Spotify partners with a variety of publishers and music labels to expand their digital reach and connect with new audiences. By collaborating with these different companies, Spotify is able to offer a wider range of music and videos to their users.

    A notable brand collaboration is with Starbucks where Starbucks members are able to curate Spotify playlists that will be played in their stores. Apart from this Starbucks employees get a Spotify premium subscription. This is a great way for Spotify to get more exposure and reach a wider audience.

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    Consistent Brand Identity

    Although Spotify is a very creative company, its logo is very bland and unassuming. It’s surprising that a company like Spotify, whose identity is based on music and innovation, would have a symbol that is anything less than artful. But I guess the crooked classic Wi-Fi emblem is just so iconic at this point that it’s become their identity. The key, obviously, is consistency.

    Over the years, Spotify has evolved and changed its brand identity several times to reflect different styles and eras. However, the company has kept its original icon throughout these changes to offer a sense of familiarity and consistency to its subscribers.

    Leveraging User Data

    Spotify has changed the game when it comes to how technology and data are used together. Their algorithms are designed specifically to help users explore new music and expand their list of songs. By recording users’ behaviours, interests, and past actions, Spotify is able to create a customized playlist for each person with personalized recommendations. This is just one example of how they’re using technology and data in an innovative way to improve the user experience.

    Spotify’s best example of leveraging user data is its “Discover Weekly” feature. Another is Spotifywrapped. Hope this helps you craft your business marketing strategy better!

    Conclusion

    Spotify is a great solution if you enjoy streaming music and podcasts. Not only do they have a huge selection of music and artists, but you can create your own playlists, save songs for offline listening, and follow your favorite artists.

    Spotify is one of the most popular streaming music apps and made many positive changes in the music industry. It not only allows the audiences to discover musicians but also local artists will be able to use Spotify as a platform to reach a global audience.

    FAQ

    What is Spotify’s target market?

    The typical Spotify user is young adults – Millennials and Gen Z – however there is not a small audience of older adults aged 55+ who also enjoy the app’s music.

    What is Spotify’s biggest market?

    The United States is responsible for the single largest Spotify market in the world.

    What makes Spotify unique?

    Spotify keeps listeners listening with its personalized Discover Weekly and Release Radar playlists. Listeners who want to put in a little effort to find new music can sift through any number of the artist- and song-specific radio stations.

    What are the best marketing strategies for Spotify?

    The following are the best strategies of Spotify

    • Freemium Model
    • Personalization
    • Minimalistic App Interface
    • Connecting Artists for Collaboration
    • Emotional Ads for Promotion
    • Jump Onto Social Media Trends
    • Brand Collaborations
    • Consistent Brand Identity
    • Leveraging User Data

    How does Spotify use social media to promote?

    Spotify runs multiple regional accounts on Instagram, which has more than 8.5 million followers. They regularly post images of popular artists and top tracks trending on the platform. This helps them share only the most relevant content for each country, thereby targeting the right audience for their content and business.

  • redBus Business Model – How Does redBus Make Money?

    redBus is India’s first organized bus ticket booking service and the biggest aggregator of bus tickets. It has been received very promptly by the Indians. India being the 5th largest contributor to the world’s GDP, aims to take the travel and tourism industry to $250 billion by 2030 and $1 trillion by 2047.

    Companies like redBus put their immense contribution towards making the journey of travellers very convenient and safe. redBus’ contribution has taken the travel and tourism industry to great extent. Let’s look at the business model of redBus and understand its complete operations.

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    About redBus
    Where Does redBus Operate?
    Key Services of redBus
    Target Audience of redBus
    Business Model of redBus
    What Is Unique About The Business Model Of redBus?
    How Does redBus Make Money?

    About redBus

    redBus is India’s largest online bus ticketing platform headquartered in Bangalore and owned by Goibibo. It provides a ticket booking facility through its website, iOS, and Android mobile apps and connects bus travellers with a network of over 2500 bus operators.

    For better guidance, the company joined the TiE Entrepreneurship acceleration program where they got the guidance of great mentors.

    redBus was the first of its kind and no doubt, it came out radiantly. Today, it sells more than 18,000-20,000 tickets per day. The company has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.

    Where Does redBus Operate?

    Till now, redBus has served more than 18 million people across the world. Outside India, redBus also has a strong foothold in many countries :

    Countries where redBus operates:

    • Colombia
    • India
    • Indonesia
    • Malaysia
    • Peru
    • Singapore

    Key Services of redBus

    redBus offers a secure and manageable experience for booking tickets online. Moreover, it offers complete choices to the customers such as choosing their destination with their preferred seating options. redBus not only works in the roadways domain but recently enters into the railway domain under the name of redRail.

    List of services provided by redBus:

    • Bus Hire
    • Bus Tickets
    • rPool (Bikepool & Carpool)
    • rYde
    • redRail

    Target Audience of redBus

    redBus generally target audiences who want to book a bus ticket without going to the physical place to buy a ticket. This concept of redBus is made to acquire its consumers by providing customer support, discounts, and other perks which are impossible to get at the physical bus counter.

    Business Model of redBus

    The business model of redBus is very strong along with its digital marketing strategies. redBus’ business model is straightforward, as it charges a commission on every bus ticket booking. It also charges a commission from the bus operator on every ticket booked through its platform. The commission is approximately 10-20% based on the value of the ticket being sold.

    redBus also provides hotel services along with ticket booking. It offers great deals on various occasions and also offers special discounts as well. But, the most advantageous factor that comes with RedBus is that it provides an opportunity for the customer to choose the most favourable route to their destination with the best seat in the best bus.

    What Is Unique About The Business Model Of redBus?

    Its business model is entirely based on its quality service to the customers. Its social media strategies are designed so well that it always finds great proposals for its audiences. It mostly keeps on promotion but that too, on customers’ demands and favours.

    Some of the features that make it unique are:

    • Customers can track their buses.
    • Customers can book buses according to the ratings.
    • There are reserved seats for women.
    • Customers can give feedback on the services provided and their experiences after the trip.

    How Does redBus Make Money?

    redBus makes its money by charging some fee as commission from the bus operators on each booked ticket on redBus. The commission comes as 10-20% of the total ticket value.

    In 2019, redBus received great success, it had annual revenue of $85 million. The company has a valuation of $710 million in 2020. Now, it has over 36 million users from all over the world with 3500 bus operators according to the data given on its website. And known as the largest online bus ticket company.

    Conclusion

    redBus has gone through lots of success and failure since its launch in 2006. There are tons of bus services available 24×7 to meet all the needs of travellers. Its business model is quite simple and strong but most importantly, redBus is widely famous and welcomed among the common people.

    redBus eases the major issue of finding the correct bus for any destination. It’s one step closer to fulfilling every need of a traveller along with destination travel requirements. redBus is one of its kind and it’s a true inspiration for developing services for the betterment of common people.

    FAQs

    What is redBus?

    redBus is an online bus ticket booking platform from Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri in 2006.

    What are the subsidiaries of redBus?

    redBus has two subsidiaries YourBus and Empresa Digital Peruana S.A.C.

    How much commission does redBus take?

    redBus charges a 10% to 20% commission on the value of the ticket.

    Which company owns redBus?

    The parent company of redBus is Goibibo.

    Who is the founder of redBus?

    Phanindra Sama, Charan Padmaraju, and Sudhakar Pasupunuri founded redBus in August 2006.

    Did Ibibo Group acquire redBus?

    Yes, redBus was sold to Ibibo Group for $138 million.

  • How does Classplus make Money | Classplus Business Model

    Due to this pandemic, teachers were forced to teach online. Many teachers found it very different to shift their offline classes online.

    How will you take classes online? How to conduct attendance and tests? How to provide the student’s reports to their parents? All these questions popped up in the minds of teachers.

    The solution to all these problems was Classplus. This company has simplified everything and has helped 1 lakh educators to go digital. Classplus operates in 1,100 cities and is used by 70,00,000 students for learning.

    Let’s understand the business model of Classplus.

    About Classplus
    Business Model of Classplus
    How does Classplus Make Money?
    Marketing Strategy of Classplus
    FAQ

    About Classplus

    Classplus is a SaaS-based platform that helps teachers make their own apps and take their coaching business online. The company was founded in 2015.

    The founders of Classplus are Mukul Rustagi, Vatsal Rustagi, Bikash Dash, Nikhil Goel and Bhaswat Agarwal. The headquarters of Classplus is in Noida.

    Using this app teachers can sell their courses and study material to students. Teachers can track attendance, conduct tests, take multiple live classes, create assignments, keep records of all the fee receipts and get reports of students’ performance.

    Classplus website
    Classplus website

    Business Model of Classplus

    The main goal of the company is to provide all the tools needed by the teachers to teach efficiently online.

    Classplus will help all the teachers make their own app that can handle attendance, tests, payments and reports. The app will also help them to conduct live classes, sell their courses and much more.

    Using Classplus teachers don’t have to spend time on management. Instead, they have to focus only on teaching.

    You can log in as a teacher, student or parent. Joining the platform is very easy and it takes less than 30 minutes.

    Signing as a teacher helps you to add students, make your own batches, share notifications and assignments, and conduct online tests.

    The best part here is that the student’s performance report will be directly given to the parents. Teachers get unlimited cloud storage and data security features.

    The company claims that every hour they help 50+ educators take their coaching business online. You can contact the team of Classplus to book a free demo.

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    How does Classplus Make Money?

    The revenue model of Classplus is based on simple subscription fees. The subscription fees of this platform start from Rs 15,000 and can go up to Rs 50,000. The fees depend upon the services required by the teachers.

    In 2022, Classplus made a revenue of $95.2M. The company has raised $70 million in its latest round of funding co-led by Alpha Wave Global and Tiger Global.

    According to the company, 75% of its educator base comes from Tier 2 Indian cities and beyond

    As online classes were booming during this lockdown, Classplus has helped many teachers to go digital without any complications.

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    Marketing Strategy of Classplus

    Classplus advertises aggressively using social media platforms like Instagram and Facebook. The company has also posted various videos on YouTube explaining how its platform has helped many teachers to go online. The brand ambassador of Classplus is Sourav Ganguly.

    In January 2021, Classplus launched a two-part series ad campaign with Saurav Ganguly where he tells the struggles faced by the teachers teaching offline. In the ad, Saurav Ganguly tells the advantages of Classplus and how online teaching is the future. This was one of the most successful campaigns launched by the company.

    Last year on the occasion of women’s day Classplus launched a video campaign shedding light on challenges faced by women in the education industry. This campaign showed that still, women have to face gender norms.

    As society still encourages women to work, the journey of women in education has not been easy compared to men. Classplus has helped these female educators by offering them the same technology that they have provided to the men. This campaign was also very successful.

    Classplus also has an affiliate program which has helped the company to boost its sales. Apart from advertising many educators are happy with the services provided by Classplus. Word of mouth marketing has helped the company increase its reach.

    Conclusion

    Due to this pandemic, many educators have understood the potential of online teaching. Nowadays, you can get any degree by learning online from the comfort of your home. The e-learning market is expected to reach $1.96 billion by the end of 2021.

    Online learning is more affordable than offline learning. Students can learn at their own pace. This helps students to grasp all the concepts and learn without any stress.

    There are a lot of complications when you want to teach online and Classplus is a great solution for it. The company has said that they will add more features and take the online teaching to a next level.

    FAQ

    Who is the founder of Classplus?

    The Founders of Classplus are Mukul Rustagi, Vatsal Rustagi, Bikash Dash, Nikhil Goel and Bhaswat Agarwal.

    What is the Revenue Model of Classplus?

    The revenue model of Classplus is based on simple subscription fees. The subscription fees of this platform start from Rs 15,000 and can go up to Rs 50,000.

    How does Classplus work?

    Classplus helps teachers make their own app. Using this app teachers can sell their courses and study material to students, track attendance, conduct tests, take multiple live classes, create assignments, keep a record of all the fee receipts and get students’ performance reports.

    Is there any free demo available for Classplus?

    Yes, you can contact the team of Classplus and get a free demo. You can see how Classplus will help you take your coaching business online.

    How does Classplus advertise?

    Classplus uses social media platforms like Instagram and Facebook to advertise and interact with people. They also launch various campaigns on YouTube to boost their sales.

    What is Classplus lite?

    Classplus lite is a free app that helps solo teachers teach online. Using this app teachers can add students’ batches, and study material, upload videos and assign tests.

  • Business Model of Pepperfry | How does Pepperfry make Money?

    Launched in 2013, Pepperfry has more than 60 lakh registered users and 1 million+ home products. Pepperfry has changed the way of buying furniture. Indians loved the idea of buying furniture from the comfort of their homes and that is why the company has 7 million+ visits on the website.

    Today, if I ask you to buy furniture online, Pepperfry would automatically pop up in your mind. The company have grown rapidly over these years. The company delivers its products in more than 500 cities in India. But, how did the company become so successful? To answer this we need to understand their business model.

    About Pepperfry
    Target Audience of Pepperfry
    Business Model of Pepperfry
    What is Unique about Pepperfry’s Business Model
    How Does Pepperfry Make Money?
    FAQ

    About Pepperfry

    Pepperfry is an online marketplace headquartered in Mumbai that deals in furniture and home décor like furnishings, lighting, beds, tables, chairs, cabinets, kitchen appliances, bathing equipment, mattress, and so on.

    The founders of Pepperfry are Ambreesh Murthy and Ashish Shah. The tagline of Pepperfry is ‘Happy Furniture to You’.

    The company has launched 100+ studios across 57 cities in India  In these studios, a wide range of furniture is displayed so people can come and physically see all the furniture. In 2018 Pepperfry tied up with Quikr for a furniture exchange program.

    Pepperfry also launched a furniture rental service in September 2018. People can rent furniture and can use it for a period of 6, 9, or 12 months.

    Target Audience of Pepperfry

    The target audience of Pepperfry is people between the age group of 35-45. The company is also targeting people who are in their mid-20s to early 30s.

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    Business Model of Pepperfry

    Pepperfry follows the omnichannel strategy where they allow their customers to order products anytime, anywhere from any device. The company employs the managed marketplace business model.

    They have connected with small and medium-sized business merchants and artisans. These merchants can sell their products through Pepperfry.

    The category team meets the sellers to check the quality of products and once approved they take some products from them. These products are sent to the studios for photoshoots.

    The photos of the products are then placed on their website. When a product is ordered from the website, it is brought from the sellers and delivered to Pepperfry’s warehouse.

    What is Unique about Pepperfry’s Business Model

    1) Pepperfry Studios and Franchise Model:

    Pepperfry Studio
    Pepperfry Studios

    In India, people have a habit of checking products and services physically. To gain the trust of the people the company launched Pepperfry studios where people can explore all the types of furniture in offline mode. People cannot buy furniture from these studios. Although these stores help consumers make big purchases online.

    The interior design professionals that are working in these studios provide free consultations to customers for their home interior needs. About 25% of the business is generated from these studios.

    The company has also started a franchise program where small entrepreneurs can own a franchise with Pepperfry and run a profitable business.

    The franchise-owned studios work on a 100% price parity and do not require the partner to hold product inventory.

    “Omnichannel has always been an integral part of our growth strategy and our existing franchise program has helped us expand our offline footprint by creating several touchpoints across major metros and Tier 2 cities.” added Ashish Shah.

    2) Powerful Marketing:

    Pepperfry has collaborated with many Influencers and YouTubers. As we all know YouTubers and Influencers have many followers. This helped in brand awareness and people started to buy products from Pepperfry.

    During the initial days of Pepperfry, their ad campaigns were focused on getting the audience’s trust. Later on, their ad campaigns shifted to providing specific benefits like looks and design of products.

    High-quality images are placed on the website to attract people. The company found out that 65% of the customers are women.

    So, to attract them Pepperfry’s team created powerful campaigns that resonated with their target audience. They also provided various discounts which led to an increase in sales.

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    How Does Pepperfry Make Money?

    The revenue model of Pepperfry is straightforward. They earn money by selling products. About 80-85% of Pepperfry’s Revenue is generated by selling furniture in the solid wood furniture category. They have a revenue of Rs 500 crore per annum.

    The main reason for high revenue according to Ambreesh Murthy is that the gross margin is as high as 45% while the contribution margin is only 25%. Also, after deducting various costs such as direct cost, logistics, and discounts Pepperfry claims that they earn a contribution margin of 25% – about Rs 2,025.

    ”Also, the cost of customer acquisition is very low. In fact, we have a high rate of repeat purchases. This has been possible as we sell a range of ancillary products including mattresses, bedsheets, pillows, etc. While a customer may buy a bed once in three years, she does return to the website to purchase related products at least three times a year,” Ambreesh Murthy explained.

    Conclusion:

    Pepperfry is an inspiration for many startups. Their business and revenue model are simple yet effective. They understood what Indians wanted and designed their business model accordingly. Customer satisfaction is the most important aspect of their success.

    FAQ

    Is Pepperfry an Indian Company?

    Yes, Pepperfry is an Indian Company started by Ambreesh Murthy and Ashish Shah in 2013.

    What is Pepperfry Studios?

    In these studios, people can come and see all the furniture. The furniture is not for sale but people can check the product quality and design. Once they are satisfied they can order the furniture online.

    What is Pepperfry?

    Pepperfry is an online marketplace headquartered in Mumbai that deals in furniture and home décor.

    What is the revenue model of Pepperfry?

    The revenue model of Pepperfry is straightforward. They earn money by selling furniture products. About 80-85% of Pepperfry’s revenue is generated by selling furniture in the solid wood furniture category.

    How many products does Pepperfry have?

    Pepperfry has 1 million+ home products ranging from beds, tables, chairs, cabinets, kitchen appliances, bathing equipment, mattress, furnishings, lighting, and so on.

  • Business Model of Shein – How Does Shein Make Money?

    Shein has gained immense popularity among the youth. If you are a fashionista then you must have bought some trendy clothes from Shein at a very low price. The company has been very successful in the ultra-fast fashion market. Shein ships in 220 countries and provides clothes for men, women, and children.

    According to research, it was found that in 2021 Shein’s mobile app had over 7 million users in the US alone. The hashtag #Shein has generated over 6.2 billion views on TikTok. The estimated revenue of this company is $10 billion every year. Let’s see the Business Model of Shein in great detail.

    What is Shein?
    Evolution of the Fashion Industry
    Ultra-Fast Fashion
    Business Model of Shein
    Marketing Strategy of Shein
    What’s Unique About Shein?
    How Does Shein Make Money?

    What is Shein?

    Shein is a Chinese international B2C fast-fashion online platform headquartered in China. The company was founded by Chris Xu in 2008. The company sells clothes, bags, shoes, accessories, and other fashion items. Shein’s target countries are Europe, America, and the Middle East. The brand is very popular among Gen Z.

    Shein mainly works by targeting the audience who prefers western clothes. As for the target market, Shein mainly works for young people who want to be unique and socially acceptable.

    Before we have a deeper look at the business model let’s first understand how the fashion industry works. This will help us better understand the Business Model.

    Evolution of the Fashion Industry

    In the late 1990s and early 2000s, Zara and H&M introduced the world of fast fashion. Buying trendy clothes from the stores at a very low price was something new to the people.

    Zara introduced this phenomenon to the people and made a lot of money. The key components that helped Zara become successful were shorter manufacturing cycles, following the fast-moving trends, just-in-time logistics, and big investments in flagship stores located in most city centers.

    This enabled the stores to provide a wide variety of trendy inexpensive clothes that changed every week. Variety, speed, and convenience were the main factors of the fast fashion model.

    Until the 2010s this business model worked pretty well. Since then, e-commerce has penetrated the market which led to the growth of mobile commerce. Due to this, the fast fashion industry changed completely.

    Ultra-Fast Fashion

    Over time many people started using mobile and mobile commerce grew rapidly. Due to the internet, people were able to get information instantly. Everything shifted online. Using social media and other online platforms people were able to understand fashion trends instantly in a very short time.

    Fast Fashion evolved to ultra-fast fashion where only a few designs were created to test the likes of people. If the people demanded the clothes they were made in large numbers. The ultra fast-fashion retailer invested all its capital in capturing fashion trends even faster.

    Clothes and other fashion accessories were manufactured at a very high speed. Massive money was invested in logistics to deliver products to millions of customers without operating physical stores. Now, as you have understood how the ultra-fast fashion industry works and how the fashion industry has evolved let’s have a look at the business model.

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    Business Model of Shein

    Shein Website
    Shein Website 

    To understand the business model of Shein let’s first see how a fast food delivery company works. There are thousands of ghost kitchens everywhere. When you order food online the food delivery services take the food from these ghost kitchens and deliver it to your doorstep.

    Your preferences and the number of orders you place dictate the opening and closing of these ghost kitchens. Shein’s business model also behaves similarly. Shein does a partnership with these ghost factories and promises demand. They install their order system in these factories which helps them to track and deliver the orders efficiently.

    Shein teaches them how to manufacture things efficiently. In this way, Shein produces fashion items at a much faster rate. The company understands what things are booming in the fashion industry, produces product pages, checks the engagement behaviour, and then tells the factories to produce the products.

    Shein has a strong online presence. After reading about the evolution of the fashion industry and ultra-fast fashion you must have understood that a strong online presence and understanding the fashion trends quickly are necessary to be successful in this industry.

    Shein advertises aggressively on TikTok and other social media handles. After working for so long in this industry Shein is able to understand the fashion trends much faster than other companies. The company has further shortened the manufacturing cycles.

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    Marketing Strategy of Shein

    Aggressive Marketing on Social Media

    Shein marketing on Instagram
    Shein marketing on Instagram

    The company’s marketing is majorly focused on social media. Shein has understood that social media has a great influence on youth. The company is the #1 brand for TikTok teens.

    Shein has an army of fashion bloggers that constantly post content on TikTok using the hashtag Shein. In return, Influencers get free merchandise. On YouTube, people share their experiences with Shein. Since the company provides a large variety of products many YouTubers are interested in reviewing their products.

    Affiliate Programs

    Shein’s affiliate program has helped the company to increase its conversions. In this program, people can earn a commission by recommending Shein products to others. If they place the order you get a small commission. Due to these affiliate programs, many teens have promoted their products on social media. This has increased the company’s reach.

    What’s Unique About Shein?

    Shein is the most preferred fashion brand by the young generation. There are multiple things in Shein’s business model that makes it different from other:

    Model

    To have the upper hand over its competitors the company uses the digital-first model. The digital-first model enables the customers to make a purchase by the means of a digital platform and get it delivered at their preferred locations.

    Marketing Strategy

    Shein uses a micro-influencer marketing strategy. There are several micro-influencers in coordination with Shein and the company provides them with gifts at the end of each month. This give-and-take relation makes a better marketing strategy for the platform.

    An Indian Actress Advertising Shein Sale on her Social Media Account
    An Indian Actress Advertising Shein Sale on her Social Media Account

    Use of Social Media

    Social Media users have noticed Shein on their screens while scrolling through social media platforms like YouTube, Tik Tok, Instagram, etc. The media influencers contribute majorly to the selling of Shein products at such mediums. This strategy enables Shein to directly showcase its product in the market.

    How Does Shein Make Money?

    Shein’s revenue model is simple. The company earns money by selling products online. They sell a cheap version of trendy clothes and fashion items via their mobile app. The company uses the vertical integration strategy.

    Shein earns its revenue in multiple ways. The most preferred method is by selling clothes. Shein purchases clothes in bulk quantity for a cheaper price and then sells them at a higher percentage.

    Apart from this, Shein also replicates the high-end dresses to sell them at relatively lower prices. This practice also increases the sales of Shein and hence making an additional column in the money chart.

    Apart from all the above money-making options, Shein also provides in-app advertisements on its platform and generates some revenue through it too.

    Shein Revenue for 2020-2022 in US Billion Dollars
    Shein Revenue for 2020-2022 in US Billion Dollars

    Conclusion

    Shein understood fast fashion better than other companies. As the company provides a large variety of products at a very low price many people love shopping through Shein. The company has a lot of Influencers on various social media platforms which helps them to increase its popularity.

    In the west, many people prefer Shein over Amazon. This shows how much the company has grown over these years. To stay in this race for a longer period the company needs to identify the fashion trends quickly and provide those clothes to the people before it gets out of fashion.

    FAQs

    Who is the CEO of the Shein?

    The current CEO of Shein is Chris Xu.

    Who owns the company, Shein?

    Shein is owned by a parent organization named Nanjing Lingtian Information Technology with four major shareholders named JAFCO Asia, IDG Capital, Sequoia Capital China, and Tiger Global Management.

    Why is Shein so successful?

    There are numerous reasons for Shein to be counted as a successful firm. Some of the factors responsible for making Shein successful are its effective marketing strategy, customer value, and brand model. Shein values customer satisfaction over profit and is in a give-and-take relationship with its influencers to advertise.

    Is Shein a profitable company?

    Shein does not provide many insights into its financial details. However, with the available information, one can easily estimate that Shein is a profitable company.

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

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

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

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

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

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

    Dailyhunt – About

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

    Dailyhunt was previously named as Newshunt
    Dailyhunt was previously named Newshunt

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

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

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

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

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

    Dailyhunt – Startup Story

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

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

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

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

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

    Dailyhunt – Business Model

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

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

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

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

    What Is Unique About the Business Model of Dailyhunt?

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

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

    Dailyhunt – Target Audience

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

    Global Ranking Chart of Dailyhunt
    Global Ranking Chart of Dailyhunt 

    Dailyhunt – Competitors

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

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

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

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

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    How Does Dailyhunt Make Money?

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

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

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

    Conclusion

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

    FAQs

    How does Dailyhunt make money?

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

    Who is Virendra Gupta?

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

    Is Dailyhunt a product-based company?

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

    Who are the investors of Dailyhunt?

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