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Can Meesho’s Business strategy beat Amazon? | Business Case Study
Meesho is one of the most revolutionary startups of India, and the reason why I call them revolutionary is because they redefined the e-commerce playbook in India. So much so that, today, Millions of small sellers who never thought of selling online are now shipping products all across India!! Today a Jumka wala from Rajasthan is able to ship his products to the neighbourhoods of Kashmir and a clothing retailer from maharashtra is shipping her T-shirts all the way to Kanyakumari! And you would be shocked to know that, while e-commerce giants like amazon and flipkart have been burning cash in the Indian market, Meesho has already achieved profitability in the indian market and that too by empowering the smallest sellers of India!! So by democratising internet commerce for everyone in India, Meesho has become a billion dollar company.
And What is even more surprising is that? The average order value of Meesho is just 360-370 rs, while the Amazon and Flipkart have close to Rs 1000, on top of that, 70% of the products sold on Meesho are 25-30% cheaper as compared to their competition but even then somehow, Meesho has emerged as a profitable ecommerce unicorn in India and that too in less than 10 years!!
And Meesho is growing so fast, that While Amazon’s and Flipkart’s active users grew by 13% and 21% meesho’s active users as of Dec 23 grew by 32% YoY!! And, you would be shocked to know that the customer retention rate for Meesho is as high as 80%!!!
So the burning question over here is, how on earth did Meesho manage to grow their business and achieve profitability in spite of the presence of amazon and Flipkart??
What is their business strategy to achieve profit in a hyper competitive market like ecommerce?
And most importantly, what are the lessons that we need to learn from the profitable rise of meesho??