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Several clothing retailers such as Puma, Adidas, Zara, Allen Solly, Levi’s, etc are offering great discounts, all thanks to <keyword id="6359833" type="ORGANIZATION" weightage="20" keywordseo="Goods-and-Services-Tax">Goods and Services Tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>), which is expected to rollout from July 1. The sudden discount season comes after the GST Council decided that man-made apparel above Rs 1,000 will attract a 12% levy, higher than the existing 7%. "The difference in the tax will be a big hit for the brand, so we want to keep the channel clean with lower inventory dues. We are doing this to liquidate merchandise before the new designed regime (GST) kicks in on July 1,” Kavindra Mishra, managing director of Pepe Jeans, told Economic Times. Puma is offering 50% discount at stores, Allen Solly has a buy one-get-one offer, Levi's is giving two items free on the purchase of two, Flying Machine is giving up to 50% off, Pepe Jeans is running a buy-three-get-three offer, etc. Retailers say GST is quite complicated and brands have no idea on opening stock. "The impact of tax won't be more than the discount which they are offering. But there is not much clarity yet around the existing stock and hence certain brands and retailers are pushing the panic button and rest are following,” Rajagopalan Kumar, president of the <keyword id="113282" type="ORGANIZATION" weightage="20" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword>, told ET.

This is the best time to go shopping as clothing brands are offering discounts up to 50%. Here’s why

Ahead of GST implementation on July 1, all retail and e-tail companies are making sure to clear the stock by introducing sales for customers to stock up on as much as they can. <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> is collaborating with <keyword id="319719" type="COMPANY" weightage="20" keywordseo="Myntra">Myntra</keyword> and <keyword id="6388367" type="COMPANY" weightage="20" keywordseo="Jabong">Jabong</keyword> to make the End of Reason Sale the biggest fashion sale event in the country. <keyword id="3188531" type="UNKNOWN" weightage="20" keywordseo="EORS">EORS</keyword> will be offering 50% to 80% off covering 3000+ brands. 99.99% of the styles on <keyword id="2547930" type="UNKNOWN" weightage="20" keywordseo="Flipkart-Fashion">Flipkart Fashion</keyword> will be on discount during the 3-day fashion fiesta from 24th to 26th June. There is an additional 10% Cashback on <keyword id="4678285" type="UNKNOWN" weightage="20" keywordseo="citi-credit-debit-cards">Citi Credit &amp; Debit Cards</keyword> and 20% Cashback on payments through PhonePe to act as the cherry on the cake. 

 

 

 

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 Some of the exciting offer constructs that consumers should watch out for are: •Brand Stock Exchange: Over 50 brands (Benetton, Puma, Fila, Fossil, Vero Moda, American Tourister, etc.) will participate and showcase their huge selection, where basis demand, discounts surge and prices are slashed every hour •Flash Deals: Over 100 top brands will go on flash sale with price crashes and close to 15-20% higher discounts •Big Fashion Loot: Incentives will be offered on multiple items bought together (additional 10-30% off) to drive basket purchases •The ABCs of Fashion: Curated offers on everything from Aviators to Zipped Jackets •Cashback on Ixigo: Flipkart Fashion will also be offering flat INR 750 cashback on domestic flights and INR 1500 cashback on international flights through Ixigo on a minimum purchase of INR 1500/- during this period 

 

 

 

 

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 With deep consumer insights, Flipkart will also be running insight-driven deals for different shopper segments - for instance, men have a higher affinity to shop late night, therefore, special deals on men’s clothing, footwear and sports will open up at night through a construct called ‘The Late Night Show’. Similarly, women specific deals will run to time with their buying patterns. Flipkart has also invested in its algorithm to better identify elusive shopper segments like parents, luxury shoppers, etc. and will have targeted and exclusive offers for these segments.

Flipkart, Myntra and Jabong are holding India’s biggest fashion sale ahead of GST

Franchising has really picked up pace globally. Today, it accounts for almost 50% of the retail trade in the US and 45% in Canada. However, in India the franchising sector is only a mere 2.5% of the total US $ 24 billion of retail sales. The future of franchising in India looks bright in the coming years. A report by <keyword id="210379" type="COMPANY" weightage="20" keywordseo="KPMG-India-Pvt">KPMG India Pvt</keyword>. Ltd. forecasts a four times growth of the retail sector by 2017 contributing 4% of India’s <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword>, a healthy rate as compared to 10 to 25% in most developed countries. 
 At present, India’s retail market is the fastest growing in the world and is expected to grow from US$ 450 billion to US $ 1.3 trillion by 2020. However, figures point out that small businesses are going to be the major players in the <keyword id="47445" type="UNKNOWN" weightage="20" keywordseo="Indian-market">Indian market</keyword> as they (businesses in the small and mid range) have shown consistent annual growth of 11.5%, which is higher than India’s GDP growth rate of 8%. In this article, we take a moment to take a stock of the <keyword id="2791792" type="UNKNOWN" weightage="20" keywordseo="Franchise-vs-own-business">franchise vs own business</keyword> situation in India. 
 
Laws and regulations In India, small businesses have to comply with five main legal requirements governing Corporate, Tax, Labour, Environment and General. The Indian Contract Act 1872 and the Specific Relief Act 1963 for enforcement and damages for breach of contracts. businesses also have to comply with several other general laws like the Consumer Protection Act 1986, Trademarks Act 1999, <keyword id="6368276" type="COMPANY" weightage="20" keywordseo="Foreign-exchange">Foreign Exchange</keyword> Management Act 1999, Competition Act 2002, Labour Laws, and Sales Tax. 
 
While most countries have a single encompassing law to deal with ‘franchising’, in India franchising is treated ‘on par with small businesses’ as a contract and comes under the same rules and regulations. 
 
 There is no pre-contractual ‘disclosure requirements’ under law. The Franchisor is not required to divulge any information of his business, financial standing etc., and can easily abuse his position. 
 
Often the franchisor imposes the law of his country to govern the franchising agreements. The liability of the parties is not clear. 
 
Cost Factor 
The high franchisee fees and the royalties to be paid to the franchisor, labour etc. can create a burden on the franchisee. Franchising usually demands location in a prime area and this cost is an additional burden to the franchisee. Logistic support from the franchisor helps minimise transport and storage costs. 
 
Most businesses in India either have single-owners or are family owned and run, (local mom and pop stores) and the capital expenditure and outlay is lesser on all counts. They are also free to adapt and capture the local market requirements. 
 
Financing of small businesses through self-financing, family and friends is easier as compared to the higher level of investment for franchising through loans from banks and financial institutions. 
 
Market diversity 
Uniformity of products and services, one of the cornerstones of franchising success, however cannot meet the vast and diverse Indian market with its varied needs. The local business is ideally suited and is more successful in meeting customers’ requirements. 
 
Franchises are often well-established brand names and have the uniformity in products, price and quality. 
 However, one should not discount the fact that most small businesses grow and expand into franchising. In India the earliest <keyword id="46181" type="UNKNOWN" weightage="20" keywordseo="Franchise">franchise</keyword> businesses were in computer education NIIT, Bata the famous shoe company and Apollo Hospitals pioneer in corporate hospital sector. 
 
Franchising has also taken over in the beauty and personal care segment. The local beauty parlour has been replaced by franchisee spas. The ‘Naturals’ chain, which was started about ten years back now has a presence of over 450 outlets mostly as franchisees and is targeting a 3000 plus franchisees. 
 
Increasing globalisation has led to the foray of well known brands in all sectors from food, clothing, automobiles etc., in to the Indian markets. Few brands like Pizza Hut, McDonalds, and KFC have established themselves all over the country and are expanding rapidly. 
 The <keyword id="6362177" type="ORGANIZATION" weightage="20" keywordseo="union-government">Union Government</keyword> is keen to encourage the retail trade (this includes small and medium businesses and franchising) in line with its ‘Make in India’ campaign and has allowed 100% <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> in single brand and 51% FDI in multi brand retail and <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> (Goods <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">Service Tax</keyword>) will be effective April 2016. 
 Under the Government’s National e-Governance Plan, in association with the <keyword id="6355001" type="CITY" weightage="20" keywordseo="FICCI">FICCI</keyword>, it has launched ‘Business Portal of India’ as part of the ‘Mission Mode Project’. The portal is a single window providing complete guidance for start ups, development and maintaining a business. It has also promised an Rs 1000 crore corpus for facilitating start ups. 
 
Government is also considering a franchise law for the speedy resolution of disputes. The trade would however, prefer a Comprehensive Franchise legislation governing franchising business.

Franchise vs own business: The tandem Indian scenario and evolving trends

<ul><li>The Bikaner based ethnic snacks player says that its QSR strategy will play out in the next 18-24 months.</li><li><keyword id="1872606" type="General" weightage="20" keywordseo="bikaji" source="Orion">Bikaji</keyword> says that it’s using pricing and other promotional means to push competition from regional and local players.</li><li>The company plans to expand geographically and is also eyeing exports and intends to keep up with double digit volume growth for the next ten years. </li></ul>While its closest competitor Haldiram’s is expanding its quick service restaurant (QSR) chain, recently-listed Bikaji is choosing to go slow and steady. The ethnic snacks player says that it has a plan in place but will play out its QSR strategy over the next 18-24 months. “For a successful QSR, we need a strong base kitchen because you cannot have different quality in each restaurant. Consistency is very important,” Rishabh Jain, CFO of Bikaner told Business Insider India, in an interview. The company already has two such restaurants in Mumbai, but it wants to build its base before it expands it into a chain. “In Bikaner, we are coming up with a frozen plant and once it’s commissioned in three to six months, we will hold trials of all the foods and roll out our plan,” Jain says. Restaurants, especially QSRs use frozen and ready-to-cook food to deal with supply chain disruptions and keep its taste and quality standardised across the chain. It plans to expand its QSR business with restaurants in nearby areas like Rajasthan, initially. But it believes that this route of growth has a long play in the markets. “QSR is a big market and people are experimenting with new products. Bikaji being an old and a renewed brand, can do a good because of the quality and taste that we can bring at the right price point,” Jain adds. <div type="image" title="Rishab Jain" msid="105258222" hostid="261" caption="&amp;lt;p&amp;gt;Rishab Jain, CFO, Bikaji Foods International &amp;lt;/p&amp;gt;"></div> ‘Competition is something we have to live with’ Bikaji recently reported a 5.1% growth in volumes in the second quarter of FY24, and also logged in its best ever volume growth of 17% in the salty snacks category. But, like most of its peers, the company is also seeing a resurgence of smaller, local and unorganised players eating into the market. The snacks market has always been replete with unorganised, regional and local players. In the last 5-6 years they have been hit by GST, Covid and last year it was high inflation. Now that inflation is cooling off, they’re mushrooming back. Bikaji believes that they’ve been able to beat some of it with its wide product mix and pricing strategy. “Consumers are always willing to pay a premium for national brands but the premium shouldn't be too much. For the first time, we have a 10% off on our flagship brand Bikaneri Bhujia. This will reward our loyal customers, recruit competition and push back unorganised players,” says Manoj Verma, COO of Bikaji said in the interview. The company has passed on all the economies of wheat and oil prices cooling back to its customers. But in the long-term, the company believes that high competition in the segment is a norm. “Competition will always be there and we have to learn to live with it,” Verma added. The company has plans to expand beyond its key states of Rajasthan, Bihar and Assam. <div type="image" title="Manoj Verma" msid="105258336" hostid="261" caption="&amp;lt;p&amp;gt;Manoj Verma, COO, Bikaji Foods &amp;lt;/p&amp;gt;"></div> The Bikaner based player sees a long runway for growth in its packaged snacks and sweets business in the country which it believes is a ₹7,000 crore business for both organised and unorganised players. “We are a ₹2,000 crore company so the opportunity is big for us, and depends on how we execute our plans. And, 70% of our business is coming from three states. So, we have all of India ahead of us and export is also a good opportunity,” says Jain. For the last ten years, its volumes have been growing at a 20% compounded annual growth rate (CAGR). It intends to keep up with double digit growth for the next ten years. “Our target is to grow ahead of the category,” Verma adds. SEE ALSO <a href="https://www.businessinsider.in/business/news/cricket-world-cup-boost-missing-for-hotels-an-industry-veteran-explains-why/articleshow/105225847.cms">Cricket World Cup boost missing for hotels – an industry veteran explains why</a> <a href="https://www.businessinsider.in/business/news/bitten-by-inflation-indians-buying-fewer-clothes-this-season/articleshow/105179140.cms">Bitten by inflation, Indians buying fewer clothes this season</a>

Bikaji in no rush to take a big bite of restaurant biz, focus stays on snacks for now

<ul><li>The Indian retail companies’ revenue grew by a third in the fiscal year 2022 that ended in March.</li><li>This was mainly possible due to customers buying more clothes and footwear than ever before.</li><li>Clothes and footwear even got more expensive in this period due to the change in GST slab.</li></ul>As malls re-opened and Covid restrictions were lifted, the first thing people seemed to have shopped for, are clothes. As they stepped out of homes after two years, Indians seemed to be intent on looking their best, and were probably itching for retail therapy all along. As customers’ <keyword id="6368952" type="General" weightage="20" keywordseo="shopping" source="Orion">shopping</keyword> bags got heavier and all retail brands from <keyword id="64373" type="General" weightage="20" keywordseo="shoppers-stop" source="Orion">Shoppers Stop</keyword>, <keyword id="6361456" type="General" weightage="20" keywordseo="bata" source="Orion">Bata</keyword>, <keyword id="9538" type="General" weightage="20" keywordseo="pantaloons" source="Orion">Pantaloons</keyword> and <keyword id="15482" type="General" weightage="20" keywordseo="lifestyle" source="Orion">Lifestyle</keyword> are reaping its benefits. “Despite various headwinds, fashion retailers displayed a resilient show with demand picking up pace in the latter part of the second half of FY22. Revenue recovery rate for most apparel and footwear players surpassed pre-Covid levels (100- 105%) from Q3FY22 onwards,” a report by ICICI Securities added. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Update in FY2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Plans for FY2023 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Fashion and Retail Limited (ABFRL) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall revenue recovery rate reached 93% of pre-covid levels in FY22. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Addition of 75+ Pantaloons store and 400+ (franchisee) lifestyle brand stores </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Trent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue of Zudio surpassed ₹1,000 crore in FY2022. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Addition of 215 new store additions between Westside and Zudio for FY23 and FY24. </td></tr></tbody></table> <cmsannotation type="cmsannotation" annotationid="Unlike the FMCG players" comment="subhead" text="Unlike the FMCG players">Unlike the FMCG players</cmsannotation> Thanks to the surge in demand, fashion retailers faced none of the <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-flipkart-and-myntra-sales-all-unaffected-by-low-consumer-sentiment/articleshow/92245806.cms">dilemmas that FMCG players faced</a>. Due to input cost rise, the latter had to balance their price hikes and go for pack reductions to ensure consumers receive the minimum hit. Yet, their volumes suffered. Apparel manufacturers dauntlessly passed on their input costs. In the months of April and May, the apparel inflation was as high as 10% as compared to the year before. Still, it had no effect on sales. “As per Retailers Association of India (RAI), sales momentum has continued to sustain with 23% and 24% revenue growth in April and May, respectively (vs. 2019 levels). We expect apparel and footwear retailers to demonstrate strong traction in revenue and earnings growth in the ensuing quarters driven by improved consumer sentiment and enhanced demand scenario for discretionary products,” said the ICICI report. The opening up of the market also coincided with the wedding season, a traditionally good sales month for apparel, leading to companies like Aditya Birla Fashion seeing good traction for their ethnic wear. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">How were customers impacted? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Details </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">What got costlier? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Footwear, Textile </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Why? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GST increased from 5% to 12% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">When? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">From January 1, 2022 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">What fabrics became costlier? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Woven goods, synthetic yarn, tent fabrics, blanket fabric </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">What about cotton? </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cotton products still fall under 5% GST slab </td></tr></tbody></table> <cmsannotation type="cmsannotation" annotationid="More stores in the offing" comment="subhead" text="More stores in the offing">More stores in the offing</cmsannotation> The Indian retail companies’ revenue grew by a third in the fiscal year 2022 that ended in March. ICICI securities, in its report, noted that it is higher than they had anticipated. The GST slab for some footwear and textile also increased more than twice during the year. Yet, the demand remained unfazed. In an attempt to cash in on the customer demand revival, retail giants are now going heavy on adding more stores as well. The store addition trajectory improved significantly in the January-March quarter, and companies have a healthy store addition pipeline for the ongoing financial year as well. <div type="image" title="It’s food not fashion where price pinches as shopping bags, retailer coffers are swelling" msid="92515318" hostid="261" sizebytes="34783"></div> “Retail sector appears to be on the cusp of delivering strong sustained revenue growth driven by improved consumer sentiment, wardrobe refresh and increased spend on discretionary purchases as consumer wallet share on non-essentials had remained subdued for the last two years,” the brokerage firm added. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Update in FY2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Plans for FY2023 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Fashion and Retail Limited (ABFRL) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall revenue recovery rate reached 93% of pre-covid levels in FY22. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Addition of 75+ Pantaloons store and 400+ (franchisee) lifestyle brand stores </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Trent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue of Zudio surpassed ₹1,000 crore in FY2022. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Addition of 215 new store additions between Westside and Zudio for FY23 and FY24. </td></tr></tbody></table> SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/tata-steel-bajaj-auto-bank-of-baroda-among-stocks-to-watch-out-for-on-june-28/slidelist/92506964.cms">Tata Steel, Bajaj Auto, Bank of Baroda among stocks to watch out for on June 28</a> <a href="https://www.businessinsider.in/retail/news/lays-kurkure-and-bingo-are-taking-over-indian-snacks-like-aloo-bhujia/articleshow/92508625.cms">Lay’s, Kurkure and Bingo are taking over Indian snacks like Aloo Bhujia, Murukku</a> <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/tata-steel-bajaj-auto-bank-of-baroda-among-stocks-to-watch-out-for-on-june-28/slidelist/92506964.cms"></a><a href="https://www.businessinsider.in/india/news/slow-sowing-wary-global-buyers-can-take-rice-prices-on-the-same-path-as-wheat/articleshow/92489067.cms">Slow sowing, wary global buyers can take rice prices on the same path as wheat</a>

It’s food not fashion where price pinches as shopping bags, retailer coffers are swelling

<ul><li><keyword id="3480589" type="General" weightage="20" keywordseo="meesho" source="Orion">Meesho</keyword> is the new kid on the block that has emerged as a challenger to <keyword id="18635" type="General" weightage="20" keywordseo="amazon" source="Orion">Amazon</keyword> and <keyword id="6354742" type="General" weightage="20" keywordseo="flipkart" source="Orion">Flipkart</keyword> with 120 mn users</li><li>Aims to bring 100 mn small sellers across India online</li><li>The newly minted unicorn is looking at going public in less than two years after it turns profitable.</li></ul>Shaan Ansari is a 19-year old entrepreneur who lives in the historic city of Panipat, 100 kms north of Delhi, and he may never qualify for any list celebrating under-20 entrepreneurs, but his story is no less inspiring than Ranveer Singh’s character in Gully Boy. The pandemic put his father out of work and Ansari out of school back in 2020. When crisis struck, Ansari went scouting for opportunities online that would require zero investment and he found it in Meesho, a social commerce platform that is designed to help solo entrepreneurs and small businesses sell their wares to a wider audience. Ansari sourced bath mats and door mats made locally and started selling them on Meesho. When his suppliers could not meet the demand, Ansari borrowed money to start his own factory. Today he manufactures these mats from a rented factory, employs 50 people and clocks revenues of ₹30 lakh a month. It is transformational stories like Ansari’s that keep Meesho’’s co-founder and CEO Vidit Aatrey and his team going. Recalling his trip to Panipat, Aatrey, says, “The neighbourhood that Ansari lives in is a really humble one and his home actually doubles up as a warehouse. When I visited him, his staff and family offered dry fruits with chai. Ansari kept telling us how his family’s fortunes have changed after he discovered Meesho. As a team we travel every quarter to listen to sellers like Ansari on our platform and are now attempting to solve some of their other financial needs so that they don’t have to go to money lenders for working capital needs.” <div type="image" title="Meesho_1 (1)" height="900" width="1200" msid="93702892" hostid="261"></div> 100 million sellers to reach a billion buyers Aatrey’s dream is to get a million local businesses online so that they expand their markets by selling wares across India, irrespective of where they are located. In the last two years, this new kid on the block has emerged as a challenger to the Big Boys of e-commerce. Meesho - which is a short code for ‘my shop’ - has gotten bigger after the pandemic with 120 million monthly active users (MAUs) in a short span of time. Flipkart and Amazon have 200 million registered users each. Meesho’s target is to have 100 million sellers on its platform and sell to a billion buyers. Meesho was born on the premise that for online commerce to genuinely offer value, local retailers had to go online. Unorganized retail accounts for 90% of India’s spends. But when Aatrey and his co-founder Sanjeev Bamwal discovered that the sellers were not coming online because the buyers were not all shopping online. The pandemic has enabled Meesho to bring a lot more local businesses online as it was a matter of their survival. Challenging Amazon and Flipkart In the early days, Meesho’s sales were driven by 15 million women resellers, who bought products from the platform and sold it through WhatsApp and Facebook groups. From being a social commerce platform driven by re-sellers, it today has a share of nearly 30% in total daily online deliveries. Of the 9 million e-commerce orders processed daily, Meesho accounts for 2.7 million, while the two biggies account for 5 million. Clearly, Meesho is the challenger that nobody expected would catch up with Amazon and Flipkart. Another interesting statistic says that of the 70 million shoppers online, only 10 million are digital natives. It is a no-brainer then that India’s small businesses can provide the network effect to any online commerce platform that chooses to target this segment. Meesho waded into this space back in 2015, but found it tough to convince small entrepreneurs to come online because their customers were not online either. Language barriers and quality of internet speeds were only a few reasons why sellers were not online. Even when they brought sellers online, their buyers were still not online nor was Meesho’s app on too many smartphones. This changed after the pandemic but before that it was Meesho’s army of 15 million women resellers that drove its gross merchandise value up until 2020. Meesho is called a social commerce channel because it has been built by women resellers who found a vocation and economic independence by reselling goods purchased from the platform on WhatsApp and Facebook groups. Between 2017 and 2020, 100% sales were happening through resellers. The share of these women resellers is now down to 20% as consumers have now started downloading the app. Meesho’s monthly average users stand at 120 million and 35 million users transact on the app every month. On an average, 110 million Indian shoppers bought on Meesho last year. Not surprising that investors have also queued up to invest in the company. After raising seed capital of $300,000 from angel investors in March 2016, Meesho is valued at $4.9 bn after its latest round of capital raise of $570 mn in September 2021. Its list of marquee investors include Soft Bank Vision Fund 2, Prosus, Fidelity Management and Research, Yuri Milner’s DST Partners, Sequoia, SAIF Partners and Y Combinator among others. Sellers turn brand ambassadors <div type="image" title="Meesho_2 (1)" height="900" width="1200" msid="93702936" hostid="261"></div> Currently, there are six lakh sellers like Ansari on Meesho and the start-up wants to take this to one million. This goal may be work-in-progress, but every week employees join the Meesho Sabha, a meeting where examples like Ansari are discussed at length so that the team does not take its eyes off the goal post. Even though Meesho continues with its outreach programme to help sellers, existing sellers have now become brand ambassadors who are helping others get online. The platform offers peer-to-peer learning in several languages for those who want to get started. Says Dhiresh Bansal, chief financial officer of Meesho, “We still do our outreach programmes but a lot of people are now coming to our platform, as they need to diversify by targeting newer markets. Also the younger generation is more progressive and are taking their family businesses online.” After its success in the last two years, Meesho’s working hard to resolve several issues of sellers on its platform. Most of these sellers have seen a sharp rise in demand for their products after going online and the need for working capital requirement has gone up sharply. Lucknow-based Suman Agrawal used to sell women’s fashion clothing at her boutique but has shut it down after her brand Rudraksh saw sales boom on Meesho. She currently manages 22,000 orders a month. There are several sellers in India who cannot go online because they don’t have the requisite GST number. Aatrey has been a votary of their cause for a while. In June this year, the GST Council cleared a proposal that will no longer require sellers on e-commerce platforms to have a GST registration, if their turnover is less than ₹40 lakh and ₹20 lakh for goods and services respectively. This rule will come into effect from January 2023. Aatrey believes that this will be a game changer for millions of small sellers across India. While the company is not looking to raise capital immediately, it has plans to turn profitable and then hit the markets in a couple of years. The e-commerce player is looking at tightening its belt on costs now that it has attained scale. If it has to turn profitable in under 2 years then Meesho will have to cut back on cashburn and conserve capital. Aatrey says, “This festive season will give us an indication if there is any slowdown. We have not seen that so far, so it will be something that we will learn from.” <div type="image" title="Meesho_3 (1) (1)" height="900" width="1200" msid="93703012" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-slips-517-points-goes-below-the-60000-mark/articleshow/93701486.cms">Sensex slips 517 points, goes below the 60,000-mark</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/not-just-ev-makers-there-are-many-more-stocks-that-can-gain-from-ev-play/articleshow/93696654.cms">Not just EV makers, there are many more stocks that can gain from EV play</a>

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