Sharat Krishnan

August is the beginning of better times for the smartphone industry with sales starting to gain momentum, touching their peak pre Diwali. The media does become very active in these times with data from various research agencies getting quoted. If one goes through the articles, majorly 4 points are being raised by agencies as of now : 1. An increase in the ASP in smartphones due to premiumization. 2. An increase in the super premium segment, specifically in the > Rs 100000 price category, with the launch of the new iPhone series, the existing Samsung S24 series, Folding phones and to a very small extent launches by new entrants like Vivo, Motorola, Xiaomi, Oppo. The super premium segment which starts at Rs 68000 is expected to show the maximum growth and in this the Rs. 100000 an even higher growth. 3. The other thing being written about is the rise of sales in the online channel with their sales starting August up to Diwali. 4. The fourth is the high growth being shown by long tail brands like Motorola, and Poco which have crossed the 5.5% share mark as well as the entry of iQoo in the top 10. One thing not getting due attention is the expected comeback of OnePlus which had de-grown in H1 due to channel issues, which I presume now stand resolved and should lead to their growth. Like I said most of this has already been documented. What is not being talked about is the implication of all of the points mentioned above on the mainline channel. In a nutshell the requirement of the channel to invest much more due to the increased ASP, rise in the contribution of the super premium segment, and the rise in the brands with a reasonable share of around 6% like Motorola and Poco. All in all, more brands, more SKU’s , and higher prices means much higher investments. For a small retailer and medium retailer this could be a challenge and may require them to work out a product portfolio to maximise their ROI given that they can put in some extra investments which may still not be enough. Of course this would be advantage Modern Trade and large retailers and of course online who do not have investment issues in keeping multiple brands, and their major SKU’s including those from the premium segment. In a situation of limited resources what is required is to push the most supportive brands and the most beneficial SKU's of those brands in each price segment based on the segment share. Not to forget the brand movement in the recent past, product road maps of brands for the next couple of months and last but not the least- strong relations with distribution partners for adequate stock allocations of fast moving SKU's. If investment is a challenge, the solution for small and medium mainline retailers lies in faster rotation of funds for maximising returns and supporting brands which support them. vivo India Xiaomi India Samsung India realme India OPPO India apple India OnePlus India OPIndia Motorola Mobility India Ltd Transsion India POCO India

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Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

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Had an amazing time at the India D2C Summit & Awards! The session explores how e-commerce brands are utilizing social media to drive sales, build brand loyalty, and stay innovative. 🔸Influence at scale: Brands are working closely with influencers, not just for product placements but to genuinely connect with audiences, making partnerships feel authentic. 🔸AI-backed personalization: Leveraging algorithms that understand customer behavior can do wonders. It’s about using data to tailor experiences and make customers feel understood, valued, and eager to return. 🔸Marketplace strategies: Today, it's about visibility. With so many choices, making your brand seen and preferred in marketplaces is no longer optional; it’s essential. The panelist shared real-world, proven strategies – from influencer partnerships and shoppable posts to AI-driven personalization. Walking away with insights, new connections, and a fresh perspective on scaling e-commerce in 2024 and beyond! #EcommerceGrowth #D2CSummit #D2C

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Lenskart.com recently received a new round of funding from Temasek and Fidelity Investments. If I were to analyze the reasons behind this success from the lens (pun intended) of retail operations, it's no surprise why this brand is scaling so well.  . Here are the top 5 reasons why Lenskart is an exemplary D2C brand mastering retail 👇👇👇 . . . #retailinnovation #Lenskart #retailstoredesign #storeofthefuture #retailtrends #experientialretail #retailcollaboration #D2Cretail #Lenskart #Funding #RetailSuccess #D2C #CustomerExperience #TechInnovation #ProductFocus #ValueShopping #RetailStorytelling #IntuitiveDemos

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PhonePe's Indus App Store has been making inroads in the Indian market. Do read this story from Inc42 Media and Suprita Anupam about how the competitive landscape in India is evolving, and if new app stores would have an impact on the dominance of the Google Play Store in India. Check out my observations and comments and share your views on whether Indus could become The Atmanirbhar App Store of India. Read the article here;

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2021: Only grocery delivery app in India with 10 minutes delivery 2024: Competitor chasing the '10 minute' brand segment Zepto is the only player sticking to its original promise - and is clearly acing it Scaling up a grocery delivery business is particularly challenging in India. And adding up a unique attribute, as huge as this –  has clearly been game changing for Zepto. Success didn’t come easy to Zepto too, There was a time when all the Q-commerce players faced backlash & people questioned the safety of drivers. Some brands stopped claiming the delivery time altogether, from “groceries in 15-30 minutes”, they went to “groceries in minutes” But Zepto didn’t, it went on to install a myriad of dark stores across locations, and is already serving superfast deliveries in 10 cities. Top 3 factors that helped Zepto drive exceptional growth over a very short span of time: - Captivating Customer Experience: The platform served a deeply engaging user experience and the service promise was being consistently fulfilled – a powerful combo. - Outstanding Retention: All thanks to near-perfect buying journey, Zepto achieved a retention rate which was considered only to be a fantasy for the industry earlier. - Not slowing down: More dark stores and continuous geographical expansion at the same time helped the startup acquire customers in huge numbers. Zepto cracked the key to scale in the quick commerce space by constantly growing at the same pace, and not compromising customer satisfaction at the same time – simple yet not easy. A perfect example of go big, go fast – it is surely a fascinating study for the space creators. No matter the circumstances, the brand didn’t let go of its biggest differentiator, eliminating all the question marks experts had put to its launch. What do you think is going to be the future of grocery delivery space in India? #casestudy #growth #startup

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Been entrenched in the Indian ecommerce scene this year and I have come across quite a few business problems that sellers and brands are grappling with. One that made me go whaaaattt?.... was the lack of a proper returns module that can help D2C brands make their customer experience seamless. With Shopify sunsetting their own returns app, D2C brands are left with a few expensive solutions (returns are a cost in the first place and for D2C brands, paying through the nose to offer that to your Customers is nuts!) Did you know that we - Base.com (formerly BaseLinker) - offer Return Forms for FREE to users of our all-in one ecommerce system? If you are a D2C brand facing this issue, please reach out, will be happy to help. Check how you can do it here: https://lnkd.in/gbRGMXMi #d2c #base #returns #shopify #ecommerce Base.com India Govind Singh Rajpurohit Yash Shukla Abhinav Gupta

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India's getting healthier, the proof is in the data! The muesli category has a monthly market size estimated at INR 4.5 Crores on Blinkit, reflecting robust consumer interest in health-oriented products. Let's dive deeper: 1. Yogabar is killing it with the dumbbell approach - 15% overall market share, leading both in the premium and the value segment 2. Bagrry's and True Elements are punching above their weight with market share of 6% and 4% respectively, higher than their respective branded search share - indicating competitive product market fit 3. Kellogg Company of course leads the category with a 66% market share 4. The muscle of the segment is between INR 50-90 per gram (mid-premium) - 70% of the category lies here 5. Lastly - there's loads of room to build a new brand - 72% of consumer searches are NON-branded :) Detailed report below. 1DigitalStack #FriendsWithData #HealthySnacking #HealthyFood #ConsumerPreference #DataIntelligence #Ecommerce #QuickCommerce

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Mamaearth has created the perfect playbook for new launches – in online space.  But that playbook seems to be failing miserably in offline.    Let me share some data to clarify what I am saying  Please see the attached screenshot from RHP.    In FY22 Honasa launched 159 new SKUs which contributed 199cr to their Net sales (1.25cr)  In FY23 they launched 301 new SKUs which contributed 279cr in Net sales. (0.92cr)  In Q1FY24 they launched 109 new SKUs which contributed 40cr (0.36cr)    3 things emerge from this data    1) Mamaearth has perfected how to launch and scale new products in the online space    2) The sales from new launches has been slowing down every year (refer to figures in bracket). Meaning the strategy may be nearing saturation.    3) Most importantly this strategy is in complete contrast to what works in offline. Offline needs fewer SKUs that sell in huge quantity. This leads to wholesale demand which creates indirect distribution. It increases the ROI on brand investments. And so the virtuous cycle continues.    Goes without saying that the product, proposition & pricing have to be suitable for GT. This has been another misstep for Mamaearth. Copy paste of online products may not work and the lower success ratio leads to stocks getting at GT distributors.    All this points to a clear need to revisit their product strategy for offline market. Do you think blindly launching online products in offline is a sound strategy

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Building brands and business is difficult. And not having free access to playbooks/knowledge should never be a roadblock in the journey Arindam Paul well said. Sharing it in my network, as I truly believe in this. Together we become strong and successful.

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The sad reality is that many marketers in India are missing out on a huge opportunity.    We recently released a new report – Why the open internet is the new premium?   It explains the impact of advertising alongside premium content for the 18–34 demographic and offers insights for effectively engaging this audience on the fastest-growing parts of the internet   Here are just a few key facts:    🇮🇳Nearly 80% of Indians have increased their time on the open internet, with 76% expecting this trend to continue. 🇮🇳OTT/CTV is India’s favourite destination for premium content and over a third of young adults trust ads on OTT/CTV 🇮🇳 They are also 55% more likely to view brands that advertise on OTT as more premium than those featured on YouTube   If you’re a marketer in #India, please read the report to understand the full scale of the opportunity that exists. DOWNLOAD:  https://lnkd.in/gDMHYUBi

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Yesterday, got this opportunity to attend CMO Collective Event by Google here in Mumbai Here are a few key takeaways 1. AI is here to make life simpler and quicker for marketers. Creative personalization and adaptation that usually takes time can now be achieved with ease and much lesser time. More time for designers to think than to scramble for making so many adapts Copywriters can leverage AI to come up with performance oriented communication that enable marketers to quickly deploy, learn, discard and re-deploy 2. There is an ecosystem that helps build actionable plan to implement and adopt AI. Rajat Mathur is running GenAI catalyst progam to guide businesses 3. Digital Media buying is becoming much simpler with the help of AI by leveraging first party data and combining it with 3rd party insights. We marketers don't need to make assumptions and hunches anymore 4. The role of CMO is now expanding and growing bigger. Understanding of technology gives us a better edge and make much more informed decisions. What are your thoughts? Would like to know more about how you are using AI to make life simpler. Thanks Megna Shankaranarayanan for the invite. Look forward to adopt some of these for 5paisa It was nice meeting old colleagues/friends Jennifer Pandya Manish Dhamankar and cherishing good old memories Made new connections Ashish Mishra Suvarna Athavale . It was pleasure meeting you. Look forward to stay connected

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What is the process of Making Advertisements? Such an important topic, yet it isn't something you are likely to learn in B School. This is just one example of the many topics I cover in my book 'The Practical Marketer'. Thank you Dushyant Bhatt for sharing this fantastic conversation. The Practical Marketer: Your Ultimate Guide to Consumer Product Marketing is available on Amazon at https://amzn.in/d/0zRbvnR or at Crosswords Bookstore near you. #thepracticalmarketer #advertizing #brands #marketing

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Who owns the Q-commerce race in India 💡? Yes, its Zepto. Zepto has been reportedly generating significant revenues, with some estimates (available in public domain) suggesting monthly revenues in the range of INR 150-200 Cr (about $18-24 Mn). Days back, the cofounders Aadit Palicha & Kaivalya V.'s platform took home a whopping $350 Mn, Zepto's third fundraise in just six months. Palicha in his interview, highlighted a few points those stood out. ➡️ Cost arbitrage: Relying on a super-meticulous execution & excellence approach, Palicha talked about how cost arbitrage proving a game changer in smaller cities, busting the #myth that #qcommerce is an urban phenomenon. Here, building a dark store, involving delivery professionals etc need less cost. Hence, the profitability per store incurs sooner than in metros. ➡️ Per store profitability than market share: The focus is on achieving per store profitability than capturing sizable market share or #profitability. He explained, achieving 1000 orders per day in cities including Vellore, Nashik, Kota etc takes lesser time than Mumbai. Because, people there don't get this wide range of 13, 000 to 14, 000 SKUs, hence, this popularity. ➡️ Disciplined investment: Zepto launched Zepto Cafe recently offering 10 Minutes food delivery options to Delhi, Bengaluru & Mumbai. And Palicha said they are investing hundred of crores in building this. To me its obvious that the platform is going to play its existing quick commerce customer base. Its no brainer, consumer who wants groceries within 10 minutes, would relish their evening snacks or breakfast coming along. So, yes, absolute brilliance over there 💪. ➡️ Quick commerce is not replacement for Kirana stores. We experienced it when #ecommerce had hit the consumption pattern. Now, its q-commerce that is taking the blame. However, my POV resonates what Plaicha explained. He said India's #grocey market has reached $46 Bn, hence if q-commerce is taking some $1 Bn, the rest $45 Bn is going to the Kirana store. So, no single business format replacing another. For complete & better insights you can tune into the interview; however I invite your thoughts in comments. Share what more is required in #qcommerce than execution, technology and excellence 😊. More so while we already have Flipkart Minute, Amazon is rolling out is q-commerce play "Tez" by end of next month. Its interesting to see how the q-commerce segment is shaping in coming times 🔥. #startupsuccess #onlinegrocery #lastmiledelivery #startupfounders #startupfunding #fundraise

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Recently I had an opportunity to speak at Indiantelevision.com #Vidnet Conference and below are my thoughts. #Attention spans are shrinking, and OTT platforms must act! To boost content consumption, we need to prioritize simplicity and user experience, taking a cue from traditional cable TV - plug and play, easy peasy! Let's focus on making customers' lives easy by: Building seamless platforms Enabling API access for aggregators Fostering collaboration across the OTT ecosystem Inspired by ONDC, let's think long-term: Make content available on aggregator platforms with direct streaming integration Embrace a cost-per-stream model, ensuring creators get paid for their everytime customers stream their content. Let's not focus solely on short-term revenue gains from MGs. Instead, build a robust cost-per-subscriber model, investing in world-class technology and solving distribution challenges by endless bundling opportunities. Remember, customers will pay for quality content. Let's work together to make OTT a seamless and enjoyable experience for all so that we increase OTT paying user matket pie atleast equivalent to PayTV in India. #OTT #streaming #userexperience #collaboration #innovation #contentdiscovery #subscriptions #revenuegrowth Anil Wanvari

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Our regional influencer content strategy helped us (Shinestar FGC) generate over 1 Crore+ views on Instagram, with a CAC to LTV ratio of over 5 so far. A few things that helped us on this journey: 1. Identifying the right influencers to partner with for virality 2. Building a content pipeline based on covering specific customer types 3. Choosing the right 'hooks' for sustained viewership A lot of it was trial and error, but would be happy to share what works in detail. Let me know if you're interested! #influencermarketing #D2C #contentstrategy #instagrammarketing

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I have been running a B2B business since last 5 years and started a D2C business 1 year ago. Key lessons learned are:- D2C business might seem attractive but generating a good cash flow is challenging Scaling products with AOV <1000 is very difficult in India. If you are planning to start a D2C-FMCG product business only think in long term. Anything big can be made in 10-20 year period only. Cheers ✌

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This is a classic case of when in India, think Indian! Apple didn't anticipate consumers' love for Cash dealing for even expensive purchases such as Apple phones. In retail-oriented business, besides the dynamics of cost structure, payment terms play a big part in ensuring smooth transactions. In my experience, the above is dynamic enough to vary in different parts of the country and hence there is no standard set of applicable rules While companies are smart enough to understand this over time, those who don't, never get past basic issues. What are the other examples that you can think of Indian consumer's ingenuity and unique approach? Do share in the comments #Indianretail #salesandmarketing #Indinconsumers

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Please do read my blog post on Vivo and why it has been so successful in offline. vivo India

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