eCommerce and storytelling: Product, Packaging and Content

The Dalal Street in Mumbai was converted into a Startup street this Saturday with TechSparks Mumbai hitting the town. There were tracks across the domains but one that raised some interesting questions around eCommerce was the “Storytelling as a powerful tool for brand creation” by Sussane Khan and Preeta Sukhtankar.  Brainchild of Preeta, The Label Corp is an e-commerce company in India that taps into the expertise of celebrities and aims to build India’s first “editorial” e-commerce brand. It has three brands called The Home Label with Suzanne Khan, The Closet Label with Malaika Arora Khan and The Trunk Label with Bipasha Basu.

Yes, they’ve got all the big names in the industry and it gives an instant reach but there is a story behind it and their way of eCommerce has a few lessons for niche eCommerce companies. Preeta has been in the media and branding space which helped her in building a network which she could leverage on starting up. In an earlier interview, Preeta had told us, “I believe that content is disguised form of marketing. They go hand in hand.” This statement says a lot about how an eCommerce company can be built, how carving a story around a product can attach so much more value to it and make it special for the customer. (There is also a clarification though- storytelling is not a way of deceiving users to buy. It is more of a process that naturally builds when you cherish your products you have and present them in a certain way.)

Product, Packaging and Content

Preeta and Sussane narrated the story of Maya- a young, trendy and independent Delhi woman who has a taste. The Label Corp identifies with the needs and wants of Maya, and position the product accordingly. They know their market and the fact makes it easier to tailor make products.

In the grander scheme of things as well, India is at a juncture where the eCommerce industry is well into the consolidation phase and it makes more sense to go with niche eCommerce. When you know an audience, building a community, reaching out to them and measuring marketing spend becomes easier. (The Label Corp is not typically a niche eCommerce company as it deals in the wider spectrum of apparel and is more of an exploration to find ways in which a woman can buy better online)

Once you’ve decided to walk the eCommerce line, the product, packaging and content becomes extremely important. The Label Corp shared an example about an old, rusted vase like product they have which is positioned as a premium rustic iron dinner table accessory. There is a market for such products. To take a different example, if you’re into music related products, you can package them on a theme or show a different use case for a particular instrument and package it accordingly.

The other part alongside packaging would be the content. Closely interwoven, building a story around the product is a key. Different mediums have come in and using them intelligently to reach out to the target market can help a lot. The Label Corp has made videos around products or just the feel of range of products. For companies in other sectors, say fitness, content can be generated about ‘how to do a particular exercise’ which will embed a brand message alongside. The key is to provide value to your customers.

The Label Corp had some insightful takeaways and I’m sure there would be many more insights with other players in the niche eCommerce space. Do share them with us in the comments.

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[Built to last] The story of a small town entrepreneur who has built a 2000 member outsourcing company

Vara Prasad Rongala’s family members have always been running their own businesses for the past 60 years. Hailing from the town of Nidadavole in the West Godavari district of Andhra Pradesh, he too joined the business of managing petrol pumps, cryogenic gases and rice mills back in 1981. As the young Vara Prasad grew to see the world and saw the opportunities in technology, he relocated to Bangalore along with his young family in 1996.

Building a business

The late 90s saw a lot of traction in the business world in India because of the economic liberalization initiated by Manmohan Singh in the early part of the decade. The outsourcing and offshoring method of working was in full swing and India was building its capability in the technology. Vara Prasad started Invensis Technologies in 1998 with an American Partner who was an architect. The firm started with offices in Bangalore and Chicago. The low hanging fruit was the standardized work of CAD/CAM drawings from the civil engineering and architectural firms.

From this starting point, Invensis moved into document management, contact center, finance & accounting and digital imaging domains and gradually built an impressive roster of clients. The company boasts of over 300 clients including Sprint telecom, Wyndham hotels and Groupon across the US, Canada, Europe and Australia. Logistics, customs brokerage, finance and accounting form a major section of the revenue generated. While the initial contracts came via the partner in the US, as the person moved on, most of the business has been through excellent word of mouth and the usage of key reference clients whose testimonials got them through the door.

“Since we handle core financial transactions for our clients across industries, if we do not complete the day’s transactions our clients cannot open for business the next day. It is as simple as that”, says Vara Prasad Rongala about the core business processes that the firm handles. This sense of responsibility is central to the company’s continued existence and the goodwill it has generated in the market. “Of our 300+ clients, at least 35-40 have been with us for over five years and our USP is being dependable”, he adds by way of explaining the long-term relationships they focus on. The firm now has ~700 people in BPO, ~1500 in the Government sector work for Karnataka and Andhra Pradesh governments and ~20 in the newly launched Learning division.

The next frontier – Learning solutions

Globally, the corporate training market is pegged at $250-300 billion, of which e-learning is estimated to form 35% in the US and ~20% in the rest of the world. Invensis has not started ‘Invensis Learning’ division to target this market specifically.

“In the first wave, there was NIIT and Aptech to build technical capability as there were not enough engineering colleges. But now the number of colleges has gone up and the basics are covered in colleges. The gap now is in professional teaching and certifications, running into the millions”, says Vara Prasad Rongala about the reason for incubating this new business.

The company has been putting together processes to build depth of training content and ensuring quality of trainers. Strict evaluation criteria based on in-depth interviews have been put together to select, evaluate and on-board trainers from different parts of the world. They only focus on getting good quality trainers with years of experience and also have an experienced trainer with over 15 years domain expertise to help in selection. “The chain is only as strong as the weakest link – so the quality of trainers is that much more important”, says Vara Prasad Rongala. Adds his son Arvind Rongala, who is currently working on the Learning division, “We ensure certified trainers and we never say no irrespective of the batch size. We once trained a single person in his hotel room in Azarbaijan, because our aim is to deliver quality content wherever the customer may be”. Training solutions are already being delivered across countries including the Middle East.

What makes an entrepreneur?

Invensis has a smaller 200 center in Rajahmundry of East Godavari district in Andhra Pradesh operating without a manager. As they have grown, they have taken on dumb and deaf applicants as full time employees, and say that they are absolutely on par or even better compared to other colleagues. They have expanded their recruiting pool from graduates to looking ITI graduates and even those with no formal degree as long as they are able to pick up the skills.

Having been incorporated in 1998, the firm has weathered two recessions – the dot com bust of 2000 and the financial crisis of 2008 and the founder has a surprising take on this. “What we do is core to our clients’ business. So we had no impact on our business during these two recessions. Our growth might have been slower during this period, but our core business went on steadily.”

Simple, uncomplicated, and focusing on the basics of business, while persisting through thick and thin. That has been the success mantra of Invensis.

[Note: “Built to last” is a series about entrepreneurs who have sustained and grown their companies for over 10 years and are successful businesses in their own right. Others in the series – PAMAC http://yourstory.com/2014/09/pamac-built-to-last/]

Do you have any such companies that have grown on their own and survived for over 10 years? Share their details so that we can cover their story too!

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10 success tips for entrepreneurs from the Bangalore LitFest!

The third annual Bangalore Literature Festival featured three packed days of panels by authors and artistes covering topics ranging from politics and religion to music and entrepreneurship. Here are my Top Ten takeways for startups from many of the authors at the Festival, especially the speakers in the panel ‘Building your Own Blocks: Entrepreneurship in India Today.’

Featured panelists included Ajit Balakrishnan, founder and CEO of Rediff.com and author of ‘The Wave Rider;’ Harish Bijoor, branding expert; Kiran Mazumdar Shaw, managing director of Biocon; T.V. Mohandas Pai, chairman, Manipal Global Education; and Vishwas Mudagal, CEO of GoodWorkLabs  and author of ‘Losing My Religion.’ (See also my earlier article from the Times Literary Carnival, ‘India needs more entrepreneurs: Nandan Nilekani’.)

1. Have the spark of an idea – and keep learning

Learn how to recognise good ideas and create your own. Keep challenging yourself even after you have one successful idea, keep learning to have new ideas and reinvent problems. Prepare yourself for lifelong learning – and unlearning. Be imaginative in every aspect of your problem domain. Unless you clearly differentiate yourself from the competition, you will not have a market advantage. Be original. “It’s ok to play others’ compositions but you really emote yourself when you play your own,” said guitarist Susmit Sen, founding member of the fusion band Indian Ocean, offering creative analogies from the world of music.

2. Explore uncharted territory

Truly successful entrepreneurs are really creative and are not risk averse in conquering uncharted territory. They are willing to create the next ecosystem, and not just a feature of a product. Deep and original insights are key for success. “Good humour comes from deep insight,” said Jane De Suza, author of ‘The Spy Who Lost Her Head,’ showcasing the role of originality in fields like humour writing as well.

3. Harness your passion

Identifying early problems and seeing them through complete solutions requires unrelenting passion. “You should be willing to bang your head against a wall until you find the solution,” advised Mohandas Pai. Passion comes first, then comes rewards, said Harish Bijoor – in fact, the expectation of only a reward is not the main driver for entrepreneurs.

4. Carry through with execution

Ideas and passion come aplenty for many, but the big challenge is making these dreams and products real and sustainable. This requires financial acumen, operational excellence and good teamwork dynamics. It requires a judicious mix of planning, project management and experimentation.

5. Work hard and make sacrifices

Seeing entrepreneurs and startup founders being interviewed in the media and speaking at conferences is only the tip of the iceberg. There is a mountain of brutal hard work beneath, and you have to sweat it out yourself. You also need to make sacrifices to keep at your mission. “I gave up spending on movies for a while so that my venture could take off,” recalled Kiran Mazumdar Shaw.

6. Be persistent and perseverant 

Unless you keep devoting yourself to your vision, you will not succeed in the long run. Vishwas Mudagal’s first book manuscript was rejected 14 times, but he kept refining it and making it better till it finally got accepted. Be a goal-setter and have confidence in yourself. At the same time, be flexible and switch your tactics as circumstances dictate.

7. Don’t think you have to drop out of college to succeed.

It is a myth that college does not teach you enough to be an entrepreneur, and that you have to drop out of college like Bill Gates, Steve Jobs or Mark Zuckerberg. In many cases, unusually talented entrepreneurs conceived of their ideas in college and grew them also while in college, but only to scale them quickly did they really feel the need to find resources outside the college environment. So college does help you at least in the foundational aspects of entrepreneurship. Many successful entrepreneurs, in fact, did both things together – go through college and launch their startup.

8. Understand the relevance of failure

Entrepreneurs may weep when they face failure and not comprehend why things don’t turn out as expected. But failure is relevant to success because it shows the limits of your assumptions, and the endurance and insights you build up after failures is what leads you to success. Think about what you can learn from the failure you have just experienced – and be prepared to bounce back from the next failure as well. “Your victory only lasts till your first mistake,” said veteran journalist and author Shekhar Gupta. Vishwas Mudagal said he experienced failure when his first startup went bust – but then a Canadian company chose him to head its India operations because of the tech skills he had picked up along the way.

9. Have a sense of perspective

See your life from a big picture perspective, right from your childhood years – that will help contextualize your journey and give it meaning. You will realise what is worth winning only when you have lost something in life, observed Mohandas Pai. “My life is a series of failures,” joked Kiran Mazumdar Shaw, recalling how she wanted to become a doctor when she was a child, but could not make it into medical school. She studied zoology, then tried brewing, and finally entered a successful phase through BioCon. A sense of humour also helps; humour is a like a “distortion mirror,” joked Zach O’Yeah, author of ‘Mr.Majestic.’

10. India needs more infrastructure and value ecosystems

Industry veterans and successful entrepreneurs need to focus on growing India’s infrastructure to improve productivity and innovation, especially for the next wave of entrepreneurs. India has only 15 million broadband Internet users, but needs 300 million to reach the kinds of scale that American startups can target in the US, said Ajit Balakrishnan. This also calls for better laws and policies for value creation to enable promising startups to raise money quickly on the stock market, advised Kiran Majumdar Shaw. Entrepreneurs in the long term also need to give back to society, and invest in not just business foundations but a vibrant open culture for the country.

In sum, the entrepreneurship ecosystem is ripe and rich in India with better days to come, especially if there are more serial entrepreneurs and entrepreneur-turned-investors. “There are close to 100 startups a month taking root in Bangalore,” said Shaw. Startups will be as important for the success of India as big companies in creating large numbers of jobs. The stories of these startups will be a powerful narrative in the rise of India in the 21st century.

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[TechSparks Mumbai] Highlights from the Tech Bazaar

This year, at TechSparks 2014 we are trying to give startups a platform to showcase their products/services to the attendees of TechSparks to gain few beta users and also some valuable feedback.

This has been a good experiment for startups to demo their products to attendees and have transactional talks with other startups.

At Bombay Stock Exchange, Mumbai we experienced the same enthusiasm that we have been witnessing throughout the country. Marketplace or the Tech Bazaar as we call it is definitely the best feedback and early traction mechanism for early stage startups.

Here are few startups that caught the most attention -

Sosio

What is it: Community management software for Non profits and social organizations

Why it’s hot: Most non-profit organizations lack technology support that hinders their fund raising campaigns a lot of times. Sosio is trying to help NGOs with technological support. As of today they are providing solutions to more than 30 NGOs and are also helping these NGOs understand the new mediums of digital marketing.  They teach and help NGOs with technology solutions, organize their donor and volunteer records and also help in spreading about their campaigns via various digital media channels. Sosio has also built a platform to help NGOs to analyse their performance reports and provide quality charts to their stakeholders. Currently, this one-man team startup is part of the Zone Startup Incubator in BSE, Mumbai.

Ambitionme.com

What is it: DIY contest platform for brands to actively engage with desired audience

Why it’s hot: Engaging with the relevant audience and building a community is becoming one of the most important tasks for marketers globally. Social media is definitely the way to go forward but then it also needs to be addressed in a quirky and intelligent form. This engagement also serves vital feedbacks to the team from one of their loyal customers. This Mumbai based startup, AmbitionMe started by IIM Calcutta alumnus is trying to provide a DIY campaign management platform to help brands leverage its community for branding, market research, engagement and even hiring at times. For the audience, it’s a great way to know more about various brands, convey their feedback to the brands directly and in return have to the opportunity to earn cash prizes, discount coupons or other goodies. Their assignments with Lonely Planet, Mint, Naukri.com, Nielson, ICICI Bank, foodpanda, healthkart speaks for the potential of their platform. Their platform has more than 10k registered users who actively engage with these campaigns.

Loginext

What is it: Real time shipment tracking hardware + platform

Why it’s hot: If today Flipkart is valued for more than $5-7 billions, then we surely need companies that would help such e-commerce giants in their logistics.  Real time tracking of deliveries with end-to-end solutions is the pain point for most e-commerce and other courier services in India. Loginext is giving very simplified hardware solution coupled with a dashboard for real time tracking of couriers, parcels and other goods. The best part of this solution is – there is no hardware installation. One just needs to keep their GPS dongle with the parcel and its ready to use as against most of the other solutions in the market. Their dashboard gives network analysis, last mile delivery optimization and Salesforce optimization.  A predictive analytics dashboard coupled with their real time tracking data would be a great solution for courier and express cargo providers.

Super Resume

What is it: Mobile app to make and share resumes

Why it’s hot: We have been hearing this ‘mobile first’ focus across sectors from almost every company with the ultimate motive of acquiring users. While we can now order food or book a cab via mobile apps, we couldn’t or rather we aren’t accustomed to making resumes on mobile and share with recruiters. This prompted Faizal to make a very simple and user-friendly app to make and share resumes swiftly. The recently released mobile app has got more than 1 lac downloads in the span of the past 6-7 months. The two-member team is working to further add features to the app in the next few months.  We wrote about the founding story behind this startup few weeks back.

tlkn

What is it: Mobile VOIP affordable product for international calls

Why it’s hot: VOIP is becoming a fast growing market globally with the likes of Viber being acquired by Rakuten and Facebook giving feature update to its messanger to give users the facility to call. Whatsapp is also working on giving the voice call feature update soon to its users globally. The team at tlkn is also working on a very simplistic mobile app to let users call others internationally comfortably. They have also installed VOIP paycall kiosks at various airports to facilitate international travelers including Mumbai International Airport, Boston Airport to name a few. The team has vast experience working on VOIP and it would provide beneficial in their mobile app. Their app would be launched in a couple of month’s time.

GridAnt

What is it: Device agnostic OS for IoT

Why it’s hot: We as humans are growing lazy and have that craving for connected world. Why shouldn’t you smartphone have the same playlist as your iPad? Why can’t two smartphones sync seamlessly without Internet? These questions got this young team at GRidAnt to ponder and come together to build a device agnostic solution for machine-to-machine interactions without the need of Internet.  There are various use-cases for this product; the list keeps increasing with every new alpha user. The team has been working on this product for the past 14 months and believes that they have cracked the solution. The product would be available for consumers and developers soon by year-end.

Did you attend TechSparks Mumbai? Which startup did you like the most? Did we miss something that caught your eye?

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Myntra launches a ‘Fashion Incubator’ for designers to incubate their businesses

Myntra, a prominent eCommerce player in the fashion and lifestyle segment was recently acquired by Flipkart but continues to operate as a separate portal. In an effort to increase mind-share and competency in the fashion space it has launched a ‘Fashion Incubator’. Under this incubator, Myntra.com has announced the launch of ‘Designer in Residence’ program which is an attempt to inspire young entrepreneurs and designers who have a flair for the business of fashion.

Myntra is now inviting applications from all design graduates and fashion entrepreneurs to incubate their business under the ‘Designer in Residence’ program. Application process for the same has started and interested designers can apply via the microsite- myntrafashionincubator for more details, or can write to mfi@myntra.com for any queries. The last date for submission of application is 31st October, 2014.

Speaking on the launch of MFI, CEO of Myntra and Head of Fashion, Flipkart, Mukesh Bansal said,

The idea behind setting up the Myntra Fashion Incubator is to mentor young entrepreneurs who do not have access to capital, supply chain and distribution platforms, and empower them to create sizeable indigenous fashion brands in the long-run. This fashion incubator initiative is an attempt to strengthen our commitment of building sustainable and aspirational fashion brands within the country. We will unearth the talent from every part of India and give them a platform to make it big in the Indian fashion space through this exciting program.

The emphasis of this initiative will be on identifying a business idea that has the potential to scale and sustain itself in the fiercely competitive fashion and lifestyle market. A panel of well-respected judges and experts from the industry will put the shortlisted participants through rigorous assessment and the final set of participants will get an opportunity to work on their idea under the guidance of Myntra Fashion Incubator team. The first batch of the incubator program is expected to roll out in January 2015 and as many as 10 entrepreneurs will get on board early next year.

The Designer in Residence is a yearlong program, targeted at budding designers with an idea to create and develop a fashion business in India. Participants will be mentored and trained along with financial support to create designs for one season. MFI will also provide opportunity to showcase these brands in various platforms as well as help retail the same on various platforms.

Through this program, Myntra will encourage budding designers to test their entrepreneurial skills, ensure they operate independently and allow them to build powerful independent brands. The fashion portal will further invest close to $1 million in equity stakes in the best performing brands after reviewing them for six months to a year.

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The new entry to the league of mobile wallets in India, Ola app

The latest entity to join the list of mobile wallets in India is Ola. The online cab booking service with 25,000+ cars across 15 cities aims to enable the cashless payments for its users. Paytm, Freecharge, Mobikwik and telecom providers among others have already launched mobile wallets and validated its success in the country. Adding to the convenience in payments for user, a mobile wallet keeps the user away from the hassle of carrying clumsy cards or processing the payments manually.

Ola’s prepaid wallet

Ola, today announced the launch of their in-app wallet feature enabling cash free rides for customers and a seamless payment experience. The wallet will allow customers to recharge their account through a credit / debit card or their online banking account right from the app. The available balance is automatically deducted from the customer’s wallet against the final fare after ride completion and a receipt is e-mailed, making it a fully cashless experience. The wallet will not only allow users to ride cashless, but also help them gift a ride or pre-pay for their loved ones!

How does it help?

To remove the hassle of paying in cash at the end of a ride, the mobile wallet from Ola enables users to recharge their account for a sum anywhere between Rs. 100 to Rs. 5000. The wallet completes the ‘entirely digital’ experience that Ola aims to provide – right from booking to tracking and now, cashless payments! Over 70% of Ola’s bookings come through the app today.

What’s there for early adopters?

In a bid to encourage more users to use the wallet, the company will double the amount of money added to the wallet by users. For e.g. if a user recharges their Ola wallet for Rs. 5000, he will get an equal cash-back of Rs. 5000 from Ola, taking the overall credit to Rs. 10000. The offer is valid on a user’s first recharge until October 31, 2014, for any amount between Rs. 300 and Rs. 5000. While the wallet is a huge step towards cashless payments, the company will continue to respect cash transactions as well.

Harsha Kumar, Head of Products at Ola commented,

“We are very excited about the possibilities that our mobile wallet offers and firmly believe that our customers will love this cash-free experience.”

Ola app makeover

Along with the wallet, the app also adds a number of other new features and has a new design and interface:

1. Online payment via Ola wallet
2. Security features – Know your driver, share ride details: The app enables customers to share their location with their loved ones while they are travelling in an Ola simply by forwarding an SMS with a unique link that will track the cab on a map in real-time as well as display details of the driver and the cab.
3. Upfront details of ETA and rate card, ride time and fare estimator: The new update allows customers a single view of ETAs across categories. It also allows customers to compare fares by category as well as ask for a ride time and fare estimate by category viz. Mini, Sedan or Prime. This reduces the time to book a cab as well.
4. Easy booking features – airport booking, enhanced search and favorites: Ola has enabled an option for customers to directly book cabs to the airport, something that was missing in previous versions due to differential pricing for airport travel. Apart from this, the app also offers a list of top pickup points for customers to select from quickly to book a cab, as well as mark their favorite places accurately for future pickups.

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Vodafone M-Pesa ties up with railways arm of IRCTC, users can now book tickets via the 139 app

Vodafone India, the telecommunications service providers and Bharat BPO, the official Rail Sampark partner of Indian Railways Catering and Tourism Corporation (IRCTC) has announced a strategic partnership to facilitate online booking of railway tickets through mobile phone with Vodafone M-Pesa as payment option.

Vodafone M-Pesa is a mobile money transfer and payment service that has tied up with Bharat BPO (BBPO) to enable this ticketing transaction through the mobile phone. Customers will have to download the mobile application “139 Railways Reservation” once, post which it does not require any data connection for registration or booking of tickets. Vodafone customers can download the application by sending an SMS“TICKET” to 111. Once accessed, the app prompts users with interactive and guided menu options towards booking tickets. The SMS based booking on 139 is available for all feature phone customers. The application is also compatible with Android and J2ME handsets.

Speaking on this initiative, Suresh Sethi, Business Head – M-Pesa, Vodafone India said

This partnership would open up and extend the convenience and efficiency of e-Commerce and online services to those unbanked millions who are operating with cash and are otherwise excluded from this eco-system. This new app based offering empowers our customers to book railway e-tickets, seek PNR status, cancel tickets, get refunds, all at their own convenience, through their mobile handset.

Vodafone M-Pesa customers can send in their booking details through the “139 Railways Reservation” app and only have to enter their M-PIN to authorize the transaction. Additionally, information on partial/full cancellation, PNR Status etc. can also be accessed through the mobile application. In case of cancellations, relevant refund will be credited to the customer’s Vodafone M-Pesa wallet.

Taking a broader view, M-Pesa is a money transfer service from Vodafone. Serving the needs of the unbanked and under-banked customers, Vodafone M-Pesa is a way of bringing bank to the mobile. With a pan India distribution network of over 75,000 agents and with more than 1.8mn customers, M-Pesa today plays a vital role in enabling financial inclusion and m-commerce.

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