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

The episode begins with introductions. Vidit Aatrey, co-founder of Meesho, shares his journey from a farming family in Rohini, Delhi, to an IIT graduate and ultimately an entrepreneur. Kishore Biyani, founder of Future Group, recounts his humble beginnings in Bombay, his rebellious nature, and his foray into the fabric business, leading to the creation of brands like Big Bazaar. Sujeet Kumar, co-founder of Udaan and early Flipkart employee, discusses his unexpected path from a small town in Bihar to IIT Delhi and his involvement in the early days of e-commerce in India.

The discussion shifts to consumer psychology and what drives purchasing decisions. The panelists highlight the significant role of social media in influencing buying habits, leading to 'FOMO' and inspiration. They note that consumers now use platforms like Meesho to search for products seen on Instagram. The conversation touches upon the decentralized nature of influence, where micro-influencers catering to niche audiences are becoming increasingly important. The concept of 'India 1, 2, and 3' is introduced to segment Indian consumers based on their consumption patterns and discretionary income, with a focus on the rising aspirations of India 2 category.

The discussion delves into how brands are built and marketed in the current landscape. There's a consensus that traditional advertising (newspapers, TV) is less effective now, with digital marketing and influencer collaborations taking precedence. Vidit shares Meesho's strategy of deep localization in marketing, featuring regional celebrities to connect with diverse audiences. Sujeet emphasizes that even celebrities are now transitioning into 'influencers' to stay relevant. The conversation explores the changing dynamics of the Indian consumer, driven by individual preferences and digital access.

The panelists project into the future of commerce, highlighting the transformative power of technology like generative AI in retail and grocery. They discuss how product sales are increasingly determined by fulfilling customer needs, aspirations, and even vanity. The shift from physical to digital discovery is underscored, with pricing becoming a more critical factor online due to the absence of physical touch and quality assessment. The role of platforms like ONDC (Open Network for Digital Commerce) is explored as a potential unifier for small businesses and e-commerce, though its full impact on market dynamics and platform identities remains to be seen.

The conversation takes a detour into the entertainment and food industries. The perceived decline of multiplexes due to rising out-of-home dining expenses is discussed. The immense potential and unique challenges of aggregating traditional Indian restaurant chains, often family-owned and resistant to external investment or rapid expansion, are brought up. Kishore Biyani shares candid insights into his 'tragic flaw' as an entrepreneur – growing too much on debt and not building a strong balance sheet. The importance of self-awareness and learning from mistakes is emphasized, highlighting the constant evolution required in entrepreneurship.

The discussion returns to the e-commerce landscape, specifically addressing ONDC and its implications for sellers and platforms. The panelists also provide insights into Nykaa's business model, acknowledging its success in the beauty and fashion vertical but questioning its representativeness of the broader Indian e-commerce market due to its niche focus and high Average Order Value. Vidit provides key metrics for Meesho, including its user base, number of small businesses, and order volume, showcasing its scale in the Indian market. The conversation concludes with advice for aspiring entrepreneurs in e-commerce, emphasizing the necessity of digital integration and the rise of online-native businesses.