Oct, 2015     

Rise of Consumer Businesses in India


This document covers the rise of consumer business in India identifying the key success stories and growth mantras.

We are the leaders in the Indian consumer internet advisory space

strong crendentials

  • 100+ engagements with new age sector
  • Working with 10+ consumer internetcompanies across the globe
  • 150+ clients
  • Executed 1000+ engagements overall
  • 70+ employees across 5 locations
    (New Delhi I Bangalore I Mumbai I New-York I Dubai )
  • Leaders in consumer internet advisory space
  • Widest panels and deepest tracks in the industry
  • Clientele includes 70% of Indian GMV and 40% of the investments

The fast growing new-age sector is disrupting the consumer experience (1/2)

Rapid adoption of and high comfort levels with online services: The appbased taxi booking market saw 100%+ y-o-y rides growth in 2015; e-tailing grew by 70-80% in terms of parcels delivered.

Consumer internet start-ups are booming: 46% of top 50 current unicorns and 53% of the top emerging unicorns are in consumer internet

India has leap-frogged the broadband wave by jumping to the mobile: More than 60% of online transactions are taking
place on the mobile platform and number of Indian online shoppers are booming Consumer internet start-ups are
booming: 46% of top 50 current unicorns and 53% of the top emerging unicorns are in consumer internet

Limited availability of quality products and services in smaller cities: ' Poor availability of branded products' and 'Low price transparency' are key issues face by customers in smaller cities

The fast growing new-age sector is disrupting the consumer experience (2/2)

The foodtech market has seen consolidation and the emergence of leaders across business models

  • Restaurant Marketplace
  • Aggregator of restaurants
  • Provides additional services like food tracking

Chef Marketplace

  • Curated aggregator of chefs and specializing in home cooked food
  • Provides additional services like food tracking

Self-Owned Kitchen

  • End to end ownership of food supply chain
  • Often ties up with restaurant marketplaces

Unique business model
Driver interchange every 250 kms drives operational efficiency and solves industry's core problem of driver availability
Growth and Funding

  • Raised 10 MM $ from Saif Partners in April 2015
  • Current Fleet at over 600 trucks, expanding rapidly

Underlying success DNAs and myths about the consumer internet industry

Does every service provider need an app?
The app that actually satisfies the need of the user (e.g.: need for taxi services for a frequent intra-city traveler) is likely to take precedence over a discretionary usage app (e.g.: stand alone food service provider)
How a relatively unknown e-tailer becomes a performer

  • Has not so good O2D (order to delivery) time amongst e-tailers
  • Offers less discount, spends less on marketing
  • Yet, it is the e-tailer which is closest to turning EBITDA positive!!
  • Key levers of success: Widest range of unbranded products, niche yet large target customer group (Tier 2 city customers), frugal culture

Indian Consumer businesses are witnessing growth driven by capital
efficiency and new niche opportunity based ventures

Custom products based on Indian needs
Coca Cola India recently launched milk-based drink inline with specific Indian needs in Saffron and Almond based flavors
Diverse tastes and Wow packaging growing the market
Hector Beverages successfully launches Paper Boat brand of drinks in interesting flavours such as jamun, kokum and
jaljeera – driving growth in market which is slowing down.

US and/ or China may not be Equal to India

Requires a very local mindset & rigorous focus on operational excellence
to succeed in India

ZOHO – web-based suite for office tools, developed from India
Services at one-tenth price of the competitor

LOCOSTO Chips have reduced the cost of cell phone by 25-40%
Empowered low price mobile phones
Reduced the development time, being close to the market

ZOHO – web-based suite for office tools, developed from India
Enabled rapid expansion of Indian market
Being introduced in other emerging market economies

KURKURE – Indigenous Product, fired Pepsi's snack Business
End to development in India
Kurkure fired up Pepsi's Snack business in India

  • CATEGORIES

  • Recent Insights

    • Fintech Market Updates

      Fintech Market Updates

      P2P payments account for the largest share of India digital payments market and are currently non-monetizable; other categories are driving …[...]
    • Online Grocery Market Updates

      Online Grocery Market Updates

      India’s hyperlocal e-grocery market is growing at triple-digit rates, with sector specialists continuing to lead the market Published on: Jun …[...]
    • Food-tech Market Updates

      Food-tech Market Updates

      Non-metros rapidly acquiring a taste for food tech Published on: Jun 2019 India’s food tech expansion is no longer a …[...]
    • Online Mobility Market Updates

      Online Mobility Market Updates

      Emerging categories within online mobility space growing rapidly Published on: Jun 2019 For the longest while, India’s ride-hailing space was …[...]
    • E-tailing Market Updates

      E-tailing Market Updates

      E-Tailing market finally moves away from mobiles and electronics categories Published on: Jun 2019 The Indian e-tailing ecosystem always had …[...]
    • Change is Here to Stay

      Change is Here to Stay

      Indian mid-market hotel industry is expected to grow at 10% to reach USD 4.4Bn by 2019[...]
    • Online Retail Market Updates

      Online Retail Market Updates

      Home & Living market in India stands at ~USD 28 Bn. and is set to reach ~USD 50 Bn. in …[...]
    • Online Insurance Market Updates

      Online Insurance Market Updates

      Digital insurers are tapping multiple channels, and launching innovative new products to drive their share in the competitive Indian Insurance …[...]
    • Consumer Internet Updates

      Consumer Internet Updates

      Significant opportunity present for OTT music and video streaming players to drive user base growth in Bharat Published on: Jun …[...]
    • Digital B2B Market Updates

      Digital B2B Market Updates

      Massive opportunity in digitization of B2B procurement Published on: May 2019 The purchase of manufacturing raw materials (RMs) and MROs …[...]
    • Ed-tech Market Updates

      Ed-tech Market Updates

      The upcoming vernacular revolution in edtech Published on: May 2019 The first wave of edtech companies saw players focusing on …[...]
    • OTA/Hotel Aggregators Market Updates

      OTA/Hotel Aggregators Market Updates

      Hotel Aggregators Saw a 40% YoY Growth in GBV Terms During Q1CY19 Published on: Apr 2019 In Q1CY19, leading hotel …[...]
    • Childcare Market Updates

      Childcare Market Updates

      Online Childcare: Convenience and Product Quality drive purchase decisions; Lead time and Return experience needs to improve Published on: Apr …[...]
    • Online Interior Design Market Updates

      Online Interior Design Market Updates

      Customization and Lead qualification key to scalability in the Online Interior Design market Published on: Apr 2019 Online Interior Design …[...]
    • Online Retail Insights | Middle-East

      Online Retail Insights | Middle-East

      Online shoppers in MENA are making 15-20% of shopping through online channels Published on: Apr 2019 RedSeer estimates the e-tail …[...]