Ep #3| WTF is E-commerce: Kishore Biyani, Udaan & Meesho Founders Reveal What Sells and What Doesn’t

The founders offer concluding advice for aspiring entrepreneurs in e-commerce. They emphasize that digital commerce is becoming inseparable from traditional commerce, requiring businesses to embrace online strategies. The rise of D2C (direct-to-consumer) brands and online-native sellers is highlighted as a significant trend, driven by personalization and localization opportunities.

Vidit Aatrey, founder of Meesho, shares his journey from a small town in Delhi to IIT Delhi, and then to ITC before founding Meesho in 2015. He discusses Meesho's mission to bring small, unbranded Indian businesses online and its growth to 140 million annual consumers.

Kishore Biyani, founder of Future Group, talks about his background in Bombay, his initial venture into fabric and brand building, and the creation of Big Bazaar. He emphasizes learning from societal changes, observing consumer behavior, and adapting to diverse audiences, citing inspiration from Tirupati Temple's crowd management for retail strategies.

Sujit Kumar recounts his journey from a small town in Bihar to IIT Delhi, his early career during the Y2K job crunch, a stint in a KPO startup, and then a pivotal role at Flipkart, where he built its supply chain. He later co-founded Udaan, reflecting on the evolution of e-commerce and his investments in new-age businesses.

The discussion turns to the impact of upbringing on entrepreneurial success. Kishore Biyani suggests that scarcity and a rebellious mindset can drive harder work and innovation, while Vidit notes a shift from compliance to independent thinking after college. They explore how early-life experiences shape a founder's drive.

The panel discusses how social media, particularly platforms like Instagram, drives consumer behavior and purchasing decisions through FOMO and influencer marketing. They note how users often search for products seen on social media, making it a critical channel for discovering trends and influencing purchases.

The conversation shifts to the changes in marketing strategies, emphasizing the move from traditional media like newspapers and TV to digital platforms and influencer collaborations. They highlight the importance of localized marketing and finding authentic influencers who align with a brand's philosophy.

Kishore Biyani introduces his concept of a three-tiered Indian consumption market: 'India One' (consuming class), 'India Two' (serving class), and 'India Three' (farm laborers and factory workers). He stresses the need for India to increase consumption to drive economic growth and the significance of value addition.

The founders explore what makes a product sell, emphasizing fulfilling customer needs, wants, and aspirations. They discuss how societal changes and increased discretionary income drive consumers to buy products that align with their desires to look good or resemble influencers, particularly in the growing 'India Two' segment.

A detailed discussion on the future of multiplexes, fueled by Sujit Kumar's past investments. They debate whether OTT platforms will overshadow traditional cinema, and how changes in consumer spending, with more money going to restaurants, impact the multiplex industry. The role of 'India Two' in multiplex growth is also considered.

The panel delves into the restaurant industry, contrasting the high valuations of listed Western quick-service restaurants (QSRs) with unlisted Indian chains. They discuss why many successful local restaurants resist scaling due to concerns about quality and management, despite the potential for growth and monetization.

Kishore Biyani shares a personal reflection on 'fatal flaws' in entrepreneurship, inspired by Shakespeare. He advises discovering and working on these flaws to avoid mistakes, advocating for open communication and feedback channels within an organization.

The founders discuss ONDC (Open Network for Digital Commerce), a government initiative to unbundle the e-commerce value chain and bring small businesses online. They explore its potential to create an interoperable e-commerce ecosystem, where product catalogs can be shared across multiple platforms, and the challenges this presents for existing players.

The discussion touches on Nykaa's business model and its valuation in the Indian e-commerce landscape. The founders evaluate Nykaa as a brand, its focus on beauty and fashion, and its distinct position compared to broader horizontal platforms like Amazon or Flipkart. They also debate whether Nykaa represents the overall Indian e-commerce market.

The conversation addresses the ongoing debate between profitability and growth in e-commerce. They discuss the challenges of deep discounting funded by external capital and the importance of achieving a critical mass before focusing on profitability. Meesho's journey towards profitability is highlighted as an example of this strategic balance.