Homemakers generated Rs. 54,000cr in sales via social media platforms
However, at the very same time, a cottage industry of sorts is also growing up online, thanks to social media.
They may not have big investors backing them up, but these homemakers cum entrepreneurs generated Rs. 54,000cr in sales.
Here's all about them.
Small, sustainable and profitable business
This online retail market is being led by homemakers, students or anyone, who wants to do something on his/her own rather than taking a normal 9-5 job.
The modus operandi is quite elegant, they are either creating their own products like junk jewelry or collectibles, if not; they are meticulously curating products by bringing bits and pieces together from big suppliers.
Reaching across to the customers
In case there is a query about the product, the customer can send a WhatsApp message, and once the customer wants to buy the product, all he/she has to do is send the money over to the seller via digital payments platforms or online money transfer.
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The sales are quite impressive
While one might easily dismiss the entire notion by saying this is a very small business, let me break the bubble for you; according to a TOI report, these businesses are raking a business worth Rs. 55,000cr in gross sales, which is incredibly impressive.
And this business will grow 5-6 times by 2022, according to the Zinnov report that was shared with TOI.
The Independent way of making money
Although tier I cities now have 50-60% of this burgeoning market, it is expected that as smartphone usage increases in tier II and tier III cities, more such businesses will be coming up.
This is a business eco-system that has helped homemakers to bolster their household incomes and has given an opportunity to new entrepreneurs to emerge, which is a welcome sign.
Small investment, big profit
Another interesting point is that there is no major cash burn; Flipkart and Amazon in the race of attracting customers end up losing more money than they earn.
In these businesses, products are sold on the basis of reputation and mutual trust and re-seller makes 15-20% of order value as commission which is a decent profit and makes the entire process quite alluring.
A bridge between the old and the new
They also don't have the big headaches of online retail majors, they don't have to maintain a huge inventory, no need of major funding to sustain the business or celebrity endorsements.
All said and done, their business pattern is a quirky mix of the new and the old. Products are sold on reputation, word of mouth and customer satisfaction but everything is online.