Don't Start Your Online Business Without Watching This Video : E-commerce in India

should I be in e-commerce or is the market to saturated for to start a platform as a career start a platform or to be a merger there's no other option but to be a part of it yeah yeah I think being part of e-commerce the only way is not to be a platform right like now all the d2c brands are part of e-commerce and everyone so the beautiful thing that has happened because e-commerce platforms is now personalization and localization that can happen like it was not possible ago so now people are like finding very Nation basically serving them so you only get discovered with a particular search term and people buy you again and again something lots of these micro d2c brands are possible so I'm saying being part of e-commerce everything that you do around selling digital products is being part of e-commerce and I believe it will only accelerate but there's no other way anymore right like especially us three living in Bangalore we're all from this we're all products of a startup bubble which started last decade and I think to be fair like we were talking about knowing your flaws I think we're cognizant to the fact that we are byproducts of a startup bubble what happens to e-commerce once the deep discounting in a way or the marketing money which was funded by cheap cost of capital abroad goes away like how do things change let's say there is no funding available for growth for Indian e-commerce companies in the next three years and they have to survive with the money they have left How does each one change my mind is a very hypothetical question but I think look when you are building a business you know that this much of money you need let's say plus minus you can say that I think only you can say that hey go through the right Matrix if you are growing then investing money even though let's say profitability comes after let's suppose I don't agree I don't hear me out here I understand uh I but if you are with those unit in your boundaries you are capturing the markets here and growing I think I am in that kind of a student where I'll support that but burning money and hurting the company like you burn money you get the GMB see but but you're you need to call me is not holding you should not do that but if you kill your company but you're also making an assumption that this tap is open where you continue to get money to burn money how about by the way unit economics I also feel like why you need economics why not a Buddha let's say growth is is an important Matrix also that's the problem I've been a growth story in a way and I don't think that holds true because I'll tell you why I'll explain you why after a point the growth comes at an extraordinary cost and that's what I'm saying that we should not do that if it's comments you will be lost in that journey of growth you want it at any cost you want to be the leader in this category and the space which you belong to I think that is so true by the way I believe so my opinion is they're multiple things they're one state of the business especially in e-commerce you need to cross a critical mass yeah and unless you get there if you try to become profitable too soon you get into a negative spiral it's okay so it's because people take the same lesson apply across stages I don't believe it works I I have to get to critical mass but after that I believe you need to be profitable of course I'm not right so our goal is I think by the end of this year we'll become profitable because right you have five billion sales now you know make sure that the business becomes profitable but if I try to do it four years ago I would have made a like a big blunder I have a very interesting take on technology so I I always believe that technology does he does three or four things which different from the traditional or the old economy when it reduces space reduces time and creates social interactions and like in fashion business on on digital commas you can do 10 stocktons where in physical you can't do more than three three and a half you can work with less number of people you can introduce lives a lot of processes and then social interaction is something digitally you can build a lot and acquire customers what's much lower cost than what physical it was in physical the world economy used to advertise for everybody here you can Target you can do a lot so it has lot of advantages anybody will take advantages of all this thing will going to be the winner and constraint can create companies yeah yeah yeah of course I am I from and lastly I also believe that unless you are getting into unless you don't have X amount of value addition done you are not in a business only in e-commerce also if you'll see a scale business these are scale business and that's why I was not able to answer on the naika because I were not imagining how a webless skill will come from because you know supply chain the same thing goes goes on because those are the principles where more and more scale you can reduce the reduce the cost I think building those capabilities where sourcing is a big thing in e-commerce let's say uh and by retailing a sourcing but sourcing yeah if I'll crack sourcing and definitely I'm not talking about the going and having doing that math on sourcing rather than buying keeping that inventory and then Distributing and saving the money I think that's a lose match and it will only come on certain scales when though you you involved on the production side of it interesting any final words for anybody looking to get involved in e-commerce final thoughts Bangalore me college thoughts so when I look at d2c Brands it was d2c blender something like you are living in a neighborhood and you open the shop I think you start from there and from there you grow and open too much it allows you to open to a much much larger audience so that's the way forward you can now go and open a shop below your building it's great to get into digital Commerce and if you're lucky and if you do well if you're passionate I think it's a great business to be no I believe there is no other way right so I believe as I think we started in the beginning the definition between e-commerce Commerce offline Commerce are getting blurred more and more so if you wanna do anything in Commerce you have to basically figure out how to make e-commerce work this holds true for anyone who's starting a business today so I think if you want to create value I think you will become a part of this so I think instead of asking should I become part of this question is what do I need to do to really become successful at this and I will that will happen like social figuring out influencers figuring out everything else figuring out marketplaces I I think contrary it says integrated them because you get the same products same thing earlier when people Define that when offline hey you'll get something in Delhi or in Mumbai or in big cities you'll not get in tier two or in now e-commerce made it every product is available everywhere we all agreed that's become a very relevant part right figuring out to sell anything so I think if you are doing Commerce online will happen for sure some people will do hybrid as well but I'm also seeing so for example 40 percent of sellers on me show are online only sellers they don't sell anywhere else so they have basic they became entrepreneurs for the first time because they figured out hey I can go on this platform I figure I know how to merchandise well how to price well how to figure out what trends work on this Marketplace and so on so people are creating businesses basically so I think that will happen more and more lots of online native sellers will come and they would have never known what does it mean to sell offline I I believe they say I can only uh finding the similarity when we have started let's say 2007-2008 the internet at that time was not even the main Channel only 8 million people have in the broadband and the internet access at that time 2008. uh but I think taking that punt is internet is a most powerful thing and people have evolved like social I believe the 20-year guy who understand much better than me and because when we have to learn talk to him and finding Commerce definitely doesn't matter which channel but it will going to happen and adopted in a most evolving way I believe the social influencers and all are the great Channel how to get use of that in look I'm not talking about supply chain I'm not talking about inventory those are given if you wanted to transport one physical Goods those will come into play and somewhere it's it's solving or solved it's evolving in own pace but getting into the consumer side of it where the consumers minds are be part of that and see how how one can be uh do those Commerce transaction uh how to influence I think that's the advice I and and new channels already are emerging hi I'm nikhil uh thank you for watching the podcast let us know who your favorite guest has been and who you'd like to watch next thank you

Channel: Nikhil Kamath Clips

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Keywords: nikhil kamath, nikhil kamath podcast, zerodha co founder, wtf is with nikhil kamath, tanmay bhat podcast, nikhil kamath tanmay bhat podcast, ecommerce, ecommerce business, ecommerce business for beginners, e commerce, meesho founder story, meesho founder interview, flipkart story, kishore biyani interview, kishore biyani latest interview, big bazaar, udaan story, udaan founder, ecommerce future, d2c in india, influencers, marketing, new age marketing, consumption, india story

Id: OPdLIPiMUqE

Length: 10min 16sec (616 seconds)

Published: Sat May 13 2023