MANAGING GROWTH REPORT BRIEF

COMPANY: MEESHO

TEAM MEMBERS: Manu Srivastava C032,

Yashwi Malik B069,
Shreya Chauhan A057

EXECUTIVE SUMMARY
India’s unorganised retail is approximately a 700 Billion dollar market as compared to the organised
sector which is just around 80 billion dollar. For centuries, unorganised retail has been a deeply-
rooted aspect of the social fabric of India. Despite ordering food, fashion and other stuff online,
people are still accustomed to the odd trip to the huckster for their dose of retail therapy, which
comes with bonuses such as bargaining and relationship building. Meesho serves this shopping
culture in the context of ecommerce.

For end customers, it’s very difficult to trust the small suppliers. So resellers play the role of curator
and influencer. They build trust by filtering for the right supply. They engage with customers,
understand their concerns and take the onus of ensuring the right quality for them.

In the era of Amazon and Flipkart, Meesho offers an entirely different experience in the form of a
social commerce platform, an online platform for resellers. Bringing a network of over 21K suppliers
and manufacturers on its platform, Meesho lets resellers shortlist products and share the
photographs of these with their network of consumers, who could be anyone in their family or
friends network or people they know. The resellers are allowed to sell at the prices they deem fit for
their target consumers.

Once shortlisted by consumer, the reseller places the order with Meesho and enters the address
details for the delivery which again is taken care of by Meesho. During the entire buy-sell process
assist, nowhere is Meesho mentioned to the end-consumers.

In a very short span, Meesho has managed to attract big investors including Prosus & Naspers,
Facebook, Sequoia Capital, RPS Ventures, Saif Partners and more. Since November 2018, Meesho
has successfully raised funding of over $200 Mn, which includes Series C, Series D and corporate
funding round by Facebook.

KEY UNCERTAINITIES IN FUTURE

1. Change in consumer behaviour of tier 2,3,4 cities and they move towards shopping on
mainstream e commerce players– Amazon, Flipkart etc.
2. Main stream players getting into hyper local markets and going vernacular, text based to
voice based for masses for whom reading is a barrier to shop online.
3. Other ways of micro entrepreneurship. Local suppliers getting into this business themselves.
4. With the economy growing, and more part time opportunities coming in tier 2,3,4 cities –
people may move out of doing this reselling business.

OPPURTUNITIES IN FUTURE

1. Better targeting of the resellers using data analytics, so that there is complimentary growth
between meesho’s suppliers, manufacturers and resellers.
 2. Educating the masses about quality, logistics etc about Meesho to get more and more
resellers on their platform.
3. Meesho getting into other product verticals. FMCG, home décor, travel, beauty etc.

WORLD SCENARIOS

E-Commerce boom in India

SC1 SC2

Expansion of
Other ways of micro
reselling
entrepreneurship
opportunities

SC4 SC3

Unorganized Retail holds and grows

SCENARIO 1:

E-commerce boom in Indian markets means that main stream retailers will move in to tier 2,3,4
cities and the barriers faced by people of these cities in shopping on these platforms as on today will
be broken down by these retail giants. Amazon is already providing vernacular alternatives on their
shopping website. Entry of these mainstream retailers into these markets combined with a shift in
consumer behaviour to shop from them would lead to businesses like Meesho run out of their
reselling base. These resellers will shift towards other more profitable and popular ways of micro
entrepreneurship. This is our worst scenario.

SCENARIO 2:

E-commerce boom in Indian markets and expansion of Meesho into a variety of verticals will help
the company survive competition from big retailers. As of now, Meesho is into reselling fashion
apparel and accessories. Its expansion into home décor, cosmetics, home made remedies,
healthcare, food and beverages etc.. will help in creating a differentiated offering than the retailers
which offer mostly branded products uniformly. Supported by growth in E-commerce, people will
move towards ease of shopping online through trusted sources which are the resellers. This is an
ideal scenario for a brand like Meesho.

SCENARIO 3:

If the unorganized players in the market grow their businesses themselves, instead of partnering
with Meesho, It would lead to resellers using their own vendors and customers – restricting
Meesho’s entry into local entrepreneurship. This scenario is the second best scenario, provided that
Meesho expands in product offerings. If the tier 2,3,4 cities keep on purchasing from unorganized
sector – This prevents the mainstream retailers to get into the market. This is our second best
scenario.

SCENARIO 4:

Unorganized retail holds its market share and there are many other alternative ways of micro
entrepreneurship available in the market – means that Meesho’s growth will be there, but it will
grow at a stunted pace. The barrier of online shopping is the primary barrier here. This is our second
worst scenario.
CIRCLE OF COMPETENCE.
 3D PRINTING REVOLUTION

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