INTRODUCTION TO ENTREPRENEURSHIP

PROJECT REPORT

THE YARN BAZAAR

INDEX
 PROJECT OBJECTIVES

● Assessing an existing business, and analysing its business model.

● Summarising the various components of business to develop a business plan.
● Comprehending the nuances of various components like creativity, business
plan to develop entrepreneurship mindset.
● Understanding creative problem solving techniques.
● Analysing various aspects involved in making a business successful like
business plan, marketing, finance, HR etc.
● Identifying the target market, understanding their needs and preferences, and
developing a product or service that meets those needs.
● To know the entrepreneurial perspectives and the need and importance of
entrepreneurial mind set and sensitise about the innovation, creativity,
generation of ideas for developing the business.
● Studying about a successful business idea can provide valuable insights and
lessons on how to succeed in the business world.

PROJECT METHODOLOGY
With an aim to understand the business model of the yarn bazaar, which was
featured on Shark Tank India, we gathered both qualitative and quantitative
data to better understand the business from the perspectives of marketing, finance,
human resources, and other departments. We gathered secondary data from
various online articles and blogs. Descriptive data was gathered by observing the
company's website, the shark tank pitch, the company's social media handles, their
podcast and other available YouTube videos.
To ensure the data quality, we collected data only from credible sources like the
company’s website or other known platforms, links to which will be provided in
the reference section of the report. This method of analysing the business provided
us a more in-depth understanding of the company and the perceptions, motivation
and emotions of the founder and the investors.
 INTRODUCTION OF THE COMPANY

About the Company:

The Yarn Bazaar is a comprehensive one-stop shop for finding vendors, the most
outstanding prices, and high-quality yarns. The Mumbai-based startup is digitising
the yarn industry. The business model was established in 2019 and operates
through a website and mobile applications for Android and iOS. Both buyers and
sellers must register for an account on the platform. A list of sellers' fees can be
compared, the buyer can publish his criteria, and orders can be placed as necessary.
To monitor the yarn's quality, the customer can also ask for a sample of the yarn
and receive a test report. The transaction takes place through the site after both
sides are happy. The Yarn Bazaar charges convenience fees. Through their website
or mobile apps, they give textile enterprises the ability to buy and sell yarn more
effectively while gaining access to a flexible unsecured line of credit through their
in-house ORA (online reverse auction) procedure. This enables a yarn vendor to
expand their market and sales, which improves profits and minimises credit
receivables. While a yarn buyer can cut their procurement & raw material
expenditures.

While production methods in traditional industries like textile have seen

technological improvement, sales, marketing, and distribution are still archaic. It
requires a lot of time and effort because it is conducted entirely offline through
phone calls and one-on-one sessions.
One can quickly learn about yarn prices, information, and market trends with The
Yarn Bazaar. Their unique procedures and adaptable unsecured financing
alternatives enable buyers to cut their raw material & procurement expenses,
thereby saving time and effort, and enabling yarn sellers to expand their market
and sales with larger margins.

Website Link: https://www.theyarnbazaar.com

Brand Tagline: It’s time to change

Brand USP: Holistic Yarn Platform

Purpose:

KRANTI - To create an impact by revolutionising the textile industry: Online yarn

B2B marketplace. It makes it possible for textile businesses to learn about yarn
costs, data, personnel, market trends, and more. Its mobile app is accessible on
both the Android and iOS operating systems.

Vision:

To organise the unorganised textile industry

Mission:

To empower small yarn buyers and suppliers: The Yarn Bazaar is an international
community of enthusiastic individuals who share a love of textiles and a dedication
to having a good influence on both our communities and our industry. In addition
to encouraging sustainability, innovation, and creativity, they believe in helping
small businesses and assisting them in thriving.
Behind the business idea:

Pratik Gadia, the founder of The Yarn Bazaar, is from a textile family, and after
obtaining a master's degree in innovation and entrepreneurship from the University
of Warwick, he started working for his family's shirting fabric manufacturing and
wholesale company. He was always concerned by the way his family made yarn
purchases. One had to spend countless hours and resources on phone calls and one-
to-one meetings just to arrive at basics like fair price, delivery terms and payment
terms. He felt frustrated by the opaque and outdated process of buying and selling
yarn in the textile industry. Thus the concept for "The Yarn Bazaar'' was born as a
result. He conducted research and worked on the business strategy, and the
technology for two years before launching operations in July of this year. His goal
is to build a seamless, effective yarn platform that will address all of the industry's
needs and problems.

The Team:

1. Prateek Gadia: Founder & Chief Executive Officer

 Pratik has made a name for himself in the textile sector thanks to his more
than 7 years of experience in it. Pratik has a Master of Science in Innovation
and Entrepreneurship from the University of Warwick in the United
Kingdom, which has given him the knowledge and abilities to start and
manage a successful firm. The Yarn Bazaar has prospered and made a
reputation for itself in the market thanks to his entrepreneurship zeal and
commitment to quality. With a thorough understanding of yarn sourcing and
fabric production, Pratik has guided his team in providing clients with high-
quality products in a timely and effective manner. His dedication to quality
has helped him gain the respect and loyalty of his customers and grow his
company into a prosperous corporation. Pratik Gadia has made and will
continue to make a big influence on the yarn-buying and fabric-
manufacturing industries through his leadership, knowledge, and
commitment.

2. Vishal Darak: Co-Founder & COO

Yarn Bazaar's co-founder and CEO is Vishal. He has had positions with
Shivaay Creations as a Freelance Consultant, Nihilent Technologies Inc. as a
Design Thinking & Innovation Consultant, LVMH as a Finalist, and L'Oréal
as a Participant@Loreal Brandstorm Competition. He graduated from KJ
Somaiya College of Engineering in Vidyavihar with a Bachelor of Science
in Engineering (EEE). He is an expert in integrating product management
and entrepreneurship principles with corporate strategy and objectives to
achieve operational success with the least amount of resources. As the co-
founder of The Yarn Bazaar, he has founded an online textile marketplace
with a 240+ Cr GMV, received funding from the Shark Tank India Sharks,
and received recognition from the Cornell Maha60 program and media sites
like YourStory and Daily Hunt. He also holds a strong network of leading
business partners, including Castrol, Sintex, Pidilite, and Birla Group.

3. Steven Enamakel: Chief Technology Officer

 Steven serves as Yarn Bazaar's chief technology officer. He serves as the
founder of several companies, including Letsallhelp.org, CryptoControl,
Intellibuzz, VP of Products and Blockchain, and Vezures. He graduated
from the University of Toronto with a science bachelor's degree

4. Jeetesh Kumar: Vice President of Operations

With over 11 years of expertise in e-commerce and online marketplaces,

Jeetesh Kumar brings a plethora of knowledge to the table. He's had success
developing successful categories, managing P&L, and overseeing
operational teams. Jeetesh is committed to enhancing verticals, including
supply chains, and creating prosperous enterprises because he is passionate
about entrepreneurship and start-ups. Through leadership positions at
Snapdeal, Dunzo, and Rapido, where he was accountable for revenue and
profit growth, cross-functional team leadership, and strategic planning,
Jeteesh developed his expertise in logistics, supply chain, e-commerce, and
shared mobility. Jeetesh will be in charge of managing the demand, supply,
supply chain, and supply chain finance teams at The Yarn Bazaar. He will
use his analytical expertise and experience to build successful plans for the
business's growth.

5. Dheeraj Girase: Head of Demand

Dheeraj Girase is a seasoned business leader with a track record of success

in sales and business development for both B2C and B2B e-commerce. He
has over 12 years of experience, and his previous employers have included
Bosch, Hero MotoCorp, and Moglix. He is adept at managing the P&L with
full accountability for Sales, account management, Sales planning, and team
management. Dheeraj's main objectives at The Yarn Bazaar are to boost
demand and sales by bringing in new clients, developing and strengthening
the current workforce, and growing the company domestically and abroad
with both established and emerging fashion and retail companies. He is
ideally suited for the role at hand due to his experience in P&L management
and target achievement.

WHY THIS BUSINESS ?

About the Textile Industry:

One of the oldest industries in the world, the textile industry has a lengthy history.
With the development of technology and shifts in consumer preferences, the sector
has seen tremendous changes over time.The textile industry contributes
significantly to international trade, with apparel and textile exports making up a
sizable component of the exports of many nations. The business does, however,
confront a number of difficulties, including fierce rivalry, high production costs,
and environmental issues.

Companies in the textile sector are progressively implementing sustainable and

environmentally friendly practices to address these issues. To develop new
products and procedures that are more environmentally friendly and sustainable,
many businesses are spending money on research and development.Global
economic and political factors, such as trade policy, labour laws, and currency
exchange rates, have an impact on the textile industry as well. As a result, the
sector demands a thorough awareness of the dynamics of the global market as well
as quick adaptation skills.

How does the Textile/Yarn industry work?

The textile industry is a complex manufacturing industry that involves the

production of fibers, yarns, fabrics, and finished textile products. Here's an
overview of how the textile industry works:

1.Production of fibres: Synthetic fibres like polyester and nylon as well as natural
fibres like cotton, wool, and silk are used to make textile fibres. Through
procedures like spinning, weaving, and knitting, these fibres are created.

2.Production of yarn: A continuous thread made of spun-together fibers is called

yarn. To make a sturdy and long-lasting thread, fibers are twisted and wound
together during this procedure.
3.Fabric production: Yarns are woven or knit together to create fabrics. While
knitting involves interlocking strands to form a knitted fabric, weaving entails
interlacing yarns at right angles to create a woven fabric.

4.Dyeing and Printing- .After the fabric has been created, it can be dyed or printed
to add colour and pattern. When dyeing, the fabric is submerged in a dye solution,
whereasPrinting is the process of utilizing a printing technology to impart a pattern
or design on fabric.

5.Finishing: The fabric may go through finishing procedures like bleaching, sizing,
and softening after being dyed and printed. These procedures enhance the fabric's
look and texture.

6.Production of clothing: The final fabric is cut and stitched into a variety of
outfits, including shirts, trousers and dresses. Using mechanized sewing machines
or by hand, this method is possible.

7.Distribution and retail: Retailers that sell to consumers get the final garments
after they have been sent to them.

Overall, the textile business has a complicated supply chain that includes the
manufacture of fibers, yarn, fabrics, dyes and prints, finishing, clothing production,
and distribution. Each step in the procedure needs specialized tools, supplies, and
knowledge.

What Lead to the making of The Yarn Bazaar-

As highlighted by the CEO of “Yarn Bazaar” Mr.Prateek on Shark Tank season 1,

the major problem they face in the yarn industry is the broken supply chain and for
that they came up with the idea of Yarn Bazaar. So basically-
● For the fabric manufacturers- It is a very cost sensitive industry as the cost
of production is very high and high production costs, including those for
labor, raw materials, and energy, are associated with the textile sector. Profit
margins and pricing tactics may be impacted by these expenditures and also
Consumers' preferences are constantly changing, and companies must stay
ahead of the curve to meet their needs. This can be a challenge for
companies that have been producing the same products for many years.

● Intense competition and broken supply chain-Companies may have trouble

finding the appropriate channels to reach their target audiences since textile
products need specialized distribution channels and customers check
multiple suppliers for best price,quality,good payment and delivery
terms.Textile companies rely on a complex supply chain, and any
disruptions or inefficiencies can impact sales and distribution..

● Most of the time, customers are not able to find all the checkpoints. For eg-
Sometimes you might get a good price but are not able to find good quality
or suitable delivery and payment terms.

● These problems directly hamper productivity because of less transparency

and efficiency and it affects both the topline and bottomline. Streamlining
the broken supply chain can be the only solution.

YARN BAZAAR APP-BASED MODEL:

WHAT IS THE YARN BAZAAR BRINGING ?
The Yarn Bazaar uses an app-based model to conduct their business. Now what is
a chat based model? A chat-based model is a sort of conversational AI model that
interacts with users via natural language text-based interfaces such as chatbots or
messaging platforms. Chat-based models are frequently used in customer service,
virtual assistants, and other applications where automated contact with users is
required.

Using a chat-based model for business transactions has several benefits, including:

1. 24/7 availability: Chatbots can provide round-the-clock customer service,

which is particularly useful for businesses that operate in various time zones
or have customers from all over the world.

2. Faster response times: Chatbots can provide near-instantaneous responses

to customer inquiries, allowing companies to resolve issues and finish
transactions more quickly.

3. Personalized service: Customer data can be used by chatbots to provide

personalized recommendations and tailored experiences, which can help
develop customer loyalty and increase sales.

4. Cost-effective: Chatbots are cost-effective because they can handle a high

number of customer queries without the need for additional staff, which can
help reduce staffing costs and improve efficiency.

5. Scalability: Because chatbots can manage an almost infinite number of

customers at once, they can help businesses scale their operations without
worrying about capacity constraints.
 6. Data collection: Chatbots can gather useful customer information that can
be used to enhance marketing, sales, and customer service strategies.

Overall, chat-based models can assist companies in streamlining operations,

improving customer service, and increasing sales, making them an important tool
for business transactions.

Now let us understand how it works:

1. The buyers and sellers log in the app successfully using simple sign-up or
sign-in with their email accounts.

2. Now, the buyer would fill in details like

●Company Name and Address
●Company’s GST Number
●Bank Details etc
3. Now the sales process starts with a
‘Chat-based’ communication
between the chat bot and the
buyer.

4. The buyer would tell his or her

requirement of the fabric in full
detail to the chatbot. The details
would include:
● Price
● Quantity
● Quality
● Fabric
● Delivery Terms
5. After assessing the buyer’s
requirements, the AI enabled smart
chatbot provides the buyer with the
available quotations which seem fit for
the buyer. This saves the problem of
finding hundreds of raw material
companies and then assessing their price
and quality for the buyer as he or she
gets a one stop solution at the platform.

● The quotations are given with the

options of Sort and filter which makes it
further easy for the buyer to pick and
choose.

6. The buyer then selects the

desired quotation and places
the order.
8. Payment would be done during
dispatch through available modes
of E-banking and UPI options only.
The payments would be made
100% advanced which will hedge
the risk of defaulting for the buyer
and seller both.

Other accessibility features that the app offer:

The app offers a variety of other features and options to explore for a better
conduct of business. These include -

a. My Orders: You can examine all of your purchases here, including current,
pending, and executed orders. You can simply track the status of your
orders, manage inventory, and ensure that deliveries are made on time.

b. My Dispatches: This feature allows you to keep track of your dispatches

and follow their progress. You can also see delivery schedules, monitor
shipments, and manage any problems that emerge during the dispatch
process.

c. My Products: This feature displays a list of all the goods you currently have
in store, including yarn types, colors, and quantities. As required, you can
manage inventory levels, add new products, and update existing products.
d. Partload: This feature enables you to manage partial loads and monitor
individual product shipments. You can optimise your logistics operations by
creating custom partloads and scheduling dispatches.

e. Transaction Documents: You can examine and manage all of your

transaction documents, such as invoices, bills of lading, and purchase orders,
with this tool. You can quickly find specific documents, examine transaction
histories, and download or print documents as required.

f. Loading and Unloading Data: This feature gives comprehensive data on

loading and unloading operations, such as the date, time, location, and status
of each shipment. You can monitor loading and unloading operations in real
time, track shipments in real time, and manage any issues that may emerge
during the process.
FOR EXAMPLE:
A. My orders - all current, pending and executed orders.
 B. My Dispatches:

FINANCIAL STRATEGY/ BUSINESS MODEL ?

Introduction of financial strategies:

Yarn Bazaar has developed a cutting-edge, effective, and transparent controlled
marketplace for yarn that enables buyers and sellers of yarn to learn about yarn
prices, data, and market trends in real-time.
The yarn industry will eventually be brought into the modern era with the help of
technology thanks to our innovative processes and adaptable unsecured financing
options that allow buyers to lower their raw material and procurement costs and
yarn sellers to expand their customer base and sales with higher margins.

Role of Yarn Bazaar in payments:

Firstly, Pratik the owner of yarn bazaar said that they have done over 212 crore
transactions since July 2019 (their operations started just before covid) and have a
record of 100% advance payments.

They work as an escrow; all the payments are done through their platform. The
suppliers bill the yarn bazar and then the yarn bazaar bills the buyer.

Escrow- In an escrow agreement, a third party holds and controls the transfer of
assets or money between two parties engaged in a transaction. The escrow service
holds the money or assets until it receives the right instructions or until certain
contractual requirements have been met. The escrow service distributes the funds
or assets to the proper party after the obligations are fulfilled.

Escrow is frequently used in real estate transactions, in which the buyer deposits
monies into an account up to the completion of the deal, and in online transactions,
in which the buyer may do so up until the seller delivers the goods or services.
Escrow ensures that both parties fulfil their responsibilities before any money or
assets are released, protecting both parties against fraud and default.

Their commission varies from 1-2% on every transaction depending on quality and
quantity of the budget.

As far as 2022 they had 1300 registered sellers.

The payment process is explained through this model-

The above flowchart shows the major process involved while making the
payment. The process is very secure and easy.
● Firstly, the buyer pays the money to The Yarn Bazar.

● Yarn Bazar keeps a certain commission because it is providing sellers.

● Then the Yarn Bazar makes the payment to the seller.

● The seller then dispatches the products.

 ● Now it is the duty of The Yarn Bazar to deliver the goods to the buyer.

● After delivery the process is completed.

There is immense safety involved in the payment process which makes Yarn
Bazaar a very dominating brand in its category.

Current financial status (2023);

Yarn sold at Yarn Bazaar has a value of almost 370 crores. In India, the word
"crore" is frequently used to refer to 10 million. 3.7 billion rupees would be the
equal of 370 crores.

Additionally, it is stated that the company receives orders totaling an average of

Rs. 19 crores each year. This implies that there is a consistent market need for the
company's yarn products.

Last but not least, the data indicates that the corporation has purchased more than
1.3 lakh kg of yarn. In India, the word "lakhs" is also frequently used to refer to
100,000. The corporation has therefore purchased more than 130,000 kg of yarn.
Whether this is a one-time occurrence or a recurring sourcing effort for the
organisation is not evident from the information provided.

Overall, the data points to the company as a big participant in India's yarn market,
with sizable revenues and consistent demand for its goods.

CHALLENGES TO THE COMPANY ?

Problems Faced By Yarn Bazaar –

1) Cost sensitive and commoditized market – A cost-sensitive and
commoditized market can present a big challenge for the yarn bazaar in a
number of ways, starting with the Price Pressure that comes with a
market where consumers are constantly searching for the best deal.
Furthermore, the competition in a commoditized market can be severe.
Both domestic and foreign providers, many of whom would have cheaper
production costs, could compete with the yarn bazaar. The yarn bazaar
may find it challenging to maintain its market share and profitability as a
result. Also, buyers and sellers may like using a different method to
outsource their content. Thirdly, Margin eroding under the relentless
weight of competition and pricing pressure, the yarn bazaar may struggle
to hold onto its profit margins. So, in order to remain competitive and
profitable, it may need to concentrate on cost optimisation, product
differentiation, and branding.

2) It’s a Goodwill Game – A company's goodwill is its reputation and

intangible value, which it has accrued over time as a result of its past
operations, relationships with customers, and other things. Although
goodwill can be a great commodity, there are a few instances in which it
can offer difficulties for the yarn bazaar. expectations from customers
and other stakeholders, who can have high standards in light of the yarn
bazaar's track record and reputation. People may stop using the app if the
company doesn't live up to these expectations, which could harm its
reputation and goodwill. secondly, pressure to uphold excellence as The
reputation of a firm is frequently influenced by its capacity to continually
provide high-quality goods and services. Generally, the yarn bazaar may
face difficulties despite the fact that goodwill can be a significant asset.
The business must continuously strive to exceed client expectations,
 uphold product quality, invent new items to keep ahead of the
competition, and avoid becoming complacent.

3) Quality maintenance as (if poor product, rejection rate will be

high)- Products of poor quality might not live up to the expectations or
standards of the customer, leading to their rejection. Poor quality yarn
can have a variety of problems, including being too thin or thick, having
a rough or scratchy texture, having uneven colour, and fading easily. A
client may return a product and ask for a refund or exchange if it doesn't
live up to their standards of quality. Long-term clients may lose faith in
the supplier and be less likely to keep making purchases from them and
using the app, which might result in a high rejection rate. It is crucial for
suppliers, such as those from yarn bazaar, to place a high priority on
quality control and guarantee that their goods match the requirements of
their clients. They may increase client trust and lower rejection rates by
offering high-quality goods, which will result in more profitable and
long-lasting business operations.

4) Trade Finance - Trade finance enables the exchange of goods and

services across national boundaries while giving companies the resources
they need to manage the related risks and expenses. If Yarn Bazaar
operates in international trade for the import or export of its goods, trade
finance may have a substantial effect on the business. To manage the
many risks associated with cross-border transactions, such as currency
fluctuations, payment delays, and political risks, Yarn Bazaar may use
trade finance instruments. Keeping a transaction log would be crucial,
and collecting full advance payments—the safest course of action—
would be another. It's crucial to keep in mind that the precise effect of
trade finance on Yarn Bazaar will vary depending on a number of
variables, including the items they trade, the markets they serve, and their
general company strategy.

5) Buyers and sellers alliance (pushing off the intermediary – Yarn

Bazaar)- As we know that today’s market is a commoditised market and
nobody wants to give an extra share to an Intermediary as margins are
 very less in this market, so buyers and sellers might prefer not to give
that 1.5% to the intermediary that is yarn bazaar and instead might join
hands and make an alliance and not share this information with yarn
bazaar, this will make them loose potential buyers and sellers and will
ultimately lead to losses of the company.

6) Outsourced Technology - Chief Technology Officer, or CTO. He is a

senior executive who is in charge of managing a company's technological
operations. The chief technology officer's main responsibility is to make
sure that the company's IT strategy is in line with its overarching business
objectives and that its technological infrastructure and procedures are
effective, efficient, and up to date.
Here, they questioned the founder about the existence of a tech staff and
who is in charge of creating, maintaining, and regularly updating the app
as the CTO is in charge of fostering innovation inside the organisation by
spotting new technologies, creating fresh goods or services, and
enhancing already existing goods or services.
The founder responded by saying that technically this is the responsibility
of the CTO and his team and that a CTO would be joining them on
December 1st of that year.

GAME ON :
HOW THE YARN BAZAAR IS TACKLING THE
CHALLENGES ?
1. Assurance of service:
● The Yarn Bazaar uses an app-based model to conduct their business
which comes with 24*7 availability, faster response time, as well as
personalised services.
● With the promise of on-time delivery and advanced payments, the
yarn bazaar assures both the buyers and the sellers.
● BANDHU, or the Brilliant Assistance Network for Direct Help &
Understanding, is a program by The Yarn Bazaar where experts help
the user to navigate through the company’s platform and are always
available to assist the user.

2. Assurance of quality:
With a very transparently managed marketplace, The Yarn Bazaar allows
yarn buyers and sellers to discover real-time yarn prices, information, and
market trends. The Yarn Bazaar ensures that the quality of the product is
maintained. To do this, they use various methods like:
● Helping the SME spinners understand the market requirements and
provide them with the right quality parameters and the norms required
by the sourcing houses.
● Providing manufacturers with a premium for extra super quality of
yarn which facilitates the consumer to avail the best material.
● Facility to the buyers for requesting a sample of yarn and order for a
test report to be satisfied with the yarn quality.
3. Increased wallet share of buyers:
The Yarn Bazaar’s platform provides the buyers with best quality yarn at a
competitive pricing which reduces their raw material and procurement costs
increasing their wallet share.

4. Supplier Diversification:
As we all know, supplier diversification is an essential strategy for
manufacturing supply chain management. It involves spreading out the
company's reliance from a single supplier to a pool of partners, giving
multiple sources for the goods needed to run a business. With the Yarn
Bazaar being the one stop platform to reach to all the yarn suppliers across
India, it removes the hassle of spending countless hours and resources on
phone calls and one-to-one meetings just to arrive at basics like fair price,
delivery terms and payment terms. This saves a lot of time and provides
quality yarn at competitive prices eventually helping the buyers protect their
operational effectiveness, by minimising the risk of disruptions or delays
caused by issues at a single supplier.

5. Guarantee of Transaction:
Since all the transactions on the Yarn Bazaar work on an advanced payment
system, the seller is already assured of upfront payment. For the buyer, the
company guarantees and ensures that the yarn is delivered to the buyer at the
due delivery date with all the quality and quantity requirements as demanded
by the buyer.

6. ORA (Online Reverse Auction) process:

ORAs provide numerous opportunities for cost savings during the material
acquisition process. In such an auction, a buyer solicits quotes for a product
from multiple sellers, who compete for the deal by bidding against each
other until only the seller willing to sell at the lowest price remains.
 ● Advantage to Buyers: ORAs allow the buyers to negotiate better
prices. Goods can be purchased at lower prices, in part because the
nature of online purchasing quickly drives prices downward, and in
part because the certainty of immediate sale and contract acceptance
means that the normal mark-up included in selling prices for risk
coverage can be eliminated.
● Advantage to Sellers: The seller in an ORA can also benefit from the
online acquisition process. First and foremost, the playing field has
been levelled, and each participant has an equal opportunity to get
their foot in the door. Small and medium-sized businesses, in
particular, can use ORAs to increase their public exposure and
compete with larger corporations. Because of the expanded marketing
channels, businesses of all sizes can identify new buyers and increase
sales with real-time market visibility.

7. Risk Hedging:
It is very obvious that in a business of yarn supplying and yarn procuring,
the yarn supplier needs to mitigate the payment risk from the buyer and it
would be in their benefit to accelerate the receivables. On the other hand the
buyer wants to mitigate the supply risk from the seller and it would be in
their benefit to receive extended credit on their payment.
Since the transaction model of the Yarn Bazaar works on 100% advanced
payments, the cash flow of the sellers is made faster and the credit
receivables on the sellers part are reduced. At the same time, the buyer gets
additional cash discount benefits and guarantee of the trade. Hence the Yarn
Bazaar provides with the visibility and monitoring throughout the trade
cycle via the transaction, as well as security over both the goods and
receivables.

With the above mentioned numerous benefits that the Yarn Bazaar provides, A
yarn supplier can expand their reach and sales, resulting in higher margins, lower
marketing OPEX, and lower credit receivables. And a yarn buyer can save money
on raw materials and conduct transactions with ease, impacting on both - the
buyers' top and bottom lines. This reduced the chances of buyers and sellers
joining hands and pushing of the Yarn Bazaar as the intermediary. With the
number of quality checks and other quality assurance methods, the Yarn Bazaar
ensures that the rejection rate is lowered and their goodwill is maintained.

MARKETING STRATEGY?

There are a lot of small sellers who do not have market bandwidth and strategies
and also no branding. So, Yarn Bazaar makes sure that their marketing strategies
are on point because directly they are marketing the registered sellers.

The business is working hard to produce new products. This indicates that the
business is probably attempting to develop new yarn items or enhance the quality
 and functionality of its current products in order to suit the shifting needs of the
market and its clients. Product creation is crucial to maintaining competitiveness in
the textile sector and necessitates a thorough knowledge of consumer trends,
market trends, and technological know-how.

The business employs professionals in spinning and mixing in addition to product

development. While mixing entails combining various fibre kinds or colours to
produce new yarn mixes, spinning is the process of twisting fibres together to form
yarn.

Having professionals in these areas can assist ensure that the business is producing
high-quality yarn that complies with the necessary criteria and standards. These
processes are crucial to the yarn manufacturing process.

Employing professionals in spinning and mixing shows that the business either has
in-house production capabilities or close relationships with suppliers of these
services. This can assist the business in maintaining the calibre and consistency of
its products and adjusting fast to shifting consumer needs.

Overall, the information provided implies that the company is actively engaged in
product development and has the technological know-how to support its attempts
to produce yarn products of the highest calibre.

One of the major reasons for a boost in their sales is coming on SHARK TANK.

Coming on Shark Tank is the best marketing strategy according to us. They
explained and made people aware about their platform which led them to new
sellers and buyers. They also got a deal from 4 sharks.

MARKETING STRATEGIES USED ON SOCIAL MEDIA

PLATFORMS:
1) LINKEDIN- It is the platform where you can connect with industry people and
professionals. They provide their insights and help in building a network. With
the aid of LinkedIn, businesses may communicate with new clients or business
partners, reach their target demographic, and increase brand awareness.
Companies may develop a thorough LinkedIn marketing plan that complements
their corporate aims and goals by utilising the platform's numerous capabilities
 and resources. Some ways used by yarn bazaar to market their products on
LinkedIn: -

- Content marketing:Yarn Bazaar utilises LinkedIn to publish informative,

entertaining, or educational content with their target audience. There are
articles, blogs, industrialists experiences, or other kinds of media that
highlight the subject-matter proficiency, thought leadership, or market
insights.
- LinkedIn ads:Yarn Bazaar utilises the advertising platform on LinkedIn to
develop customised ads that speak to a particular audience based on different
factors, such as job function, seniority, or company size. This boosts website
traffic, creates leads, or raises brand exposure.

2) INSTAGRAM-The social media marketing team of Yarn Bazaar makes sure

the following things-
- Drive engagement on all social media platforms by posting photographs and
videos there.
- Run campaigns depending on the demographics and locations of your target
audience.
- Manage/take part in multiple WhatsApp groups with potential members and
upload pertinent content to entice them to the service.
- Execute email marketing campaigns using the content and template that the
marketing director has provided.
 - 5 Monitoring and Reporting - Analyze each campaign's data across all
channels and present them to the department leader.
- For the marketing team, compile a list of organisations to use as a
benchmark and conduct ongoing study on their marketing initiatives.
- Keep up with the most recent viral postings and marketing trends to ride that
wave.
- Investigating, maintaining, and boosting interaction on all platforms that the
business will employ for marketing, including the TYB.

3) SPOTIFY- Yarn Bazaar uses spotify to reach a wide audience as they make
podcasts. Podcasts are audio programs that are available for streaming or download
on the internet.
- They are accessible at any moment by downloading them to a computer or
mobile device. A wide range of subjects are covered by podcasts, including
news, entertainment, education, and personal growth.
- Podcasts often follow a radio show format, with hosts interviewing guests or
addressing a specific subject. They can be created by one person, a media
company, or an organisation, and their length can be anywhere between a
few minutes and several hours.
- Several companies and organisations are using podcasts to sell their goods
and services and reach their target audiences as the popularity of podcasts
continues to rise.
- As a cost-effective alternative to conventional advertising strategies, podcast
advertising can effectively reach a highly engaged audience.
- Yarn Bazaar makes podcasts with indutralists who have an expertise in yarn
industry or textile industry.

4) OTHER SOCIAL MEDIA PLATFORMS(FACEBOOK,

TWITTER)-

Yarn Bazaar uses Facebook and Twitter to connect with a vast community
of craft lovers interested in bulk buying and selling. They employ the
following techniques to sell their goods on various platforms:

Distribute intriguing content: Produce and distribute engaging content on

social media that will appeal to your target audience. This might include
instructions, advice, and ideas for various sellers and buyers. To demonstrate
the quality and variety of your products, they also posts images and
interesting videos of their users.

Use hashtags to increase the visibility of your content to those who are
interested in yarn business on Facebook and Twitter.
Use Facebook and Twitter ads: To reach people who are interested in buying
and selling of yarn business utilise customised Facebook and Twitter ads.
Based on their interests, demographics, and behaviours, you may target
users.

The yarn sector may efficiently sell its products on Facebook and Twitter
and connect with a large audience of craft lovers by utilising these tactics.

TWITTER
 FACEBOOK

REVIEWS
Over 2,000+ Happy Customers & Growing!

1. CUSTOMER REVIEWS

5.0 ⭐⭐⭐⭐⭐

"The Yarn Bazaar is playing a very important role in helping the entire SME textile ecosystem,
especially the SME spinners and yarn manufacturers, which did not have exposure to markets
outside their local geographies and emerging textile hubs of India like Ichalkaranji where we
operate. We have started sourcing yarn through The Yarn Bazaar from these SME spinners
because earlier they did not have the right quality parameters and the norms which are required
by us. The Yarn Bazaar is helping them understand the market requirements and make the yarn
as per the same with a focus on quality. We are very happy to work with The Yarn Bazaar and be
part of initiatives they are taking in helping the whole ecosystem."
Mr. Nikunj Bagdia
CEO
KEN Enterprises

5.0 ⭐⭐⭐⭐⭐

"Thank you TYB! It is really wonderful to be associated with you. Over the years we have seen
everything evolving and adapting to the technological or generation changes. Though even the
businesses were getting evolved it was more in a traditional way. A platform like TYB is such a
boon to the entire yarn business and textile chain for working in the latest and best manner. We
have definitely experienced the exquisite way and culture while working with you. To
summarize - "TYB offers you the ease of doing business", opens up the wide market, and gets
you the premium for the extra super quality yarn. All this motivates the manufacturer to produce
the best quality as they get premium for extra super quality and facilitates the consumer to avail
the best material, we wish you good luck and best wishes for taking this to global levels/presence
through exports just as it is running in domestic markets now. All the best! "
Mr. Aditya Agrawal
Executive Director
Shivkrupa Cotspin Pvt. Ltd

EMPLOYEE REVIEWS

2.0 ⭐⭐ Really needs to work on its work culture.

There are critical flaws in the way they operate. There is a lot of room for improvement
and the communication inside the company improve too. Won't recommend, a highly
bureaucratic system.
Marketing Executive (Former Employee) - Remote - June 9, 2021
5.0 ⭐⭐⭐⭐⭐ Best Place to Improve Your Skills!

Flexible Timings, Learned Management, Decision Making, and Handling a section of the
Business. Also had to manage A new recruit intern. Work Culture needs to improve. Work could
come at any point in time. The best thing about the job is the experience and knowledge shared
by the Owner.

✓ Pros
Flexible Timings
× Cons
Work Culture
Quality Analyst Software Tester, Product Development Executive (Current Employee) -
Mumbai, Maharashtra - August 26, 2019

4.0 ⭐⭐⭐⭐Good enterprise to kickstart your career.

✓ Pros
Innovative and Insightful. Executives are very helpful and informative
× Cons
New in the Market, Unexperienced with technical issues
UX-UI Designer in Mumbai (Former Employee) - 4 Mar 2021

5.0 ⭐⭐⭐⭐⭐ Excellent Experience!

✓ Pros
1. Amazing supervision
2. Great efforts from core to help you in your task
× Cons
Not found any as of now
UI &Amp; User Experience Designer in Lucknow (Former Intern) - 29 Apr 2021
AVERAGE RATING

The positive points that most people pointed out in these reviews were that the staff and the CEO
are incredibly knowledgeable and have an in-depth understanding of the textile industry, as
well as eager to help in any way they can. But throughout the employee reviews, we also see that
the Work Culture needs a lot of improvement, as a couple of employees suggest. In addition,
there is the problem of the business being relatively new in the market, so it does not have
much experience. However, both employees and customers have provided positive feedback to
the business.
 WHAT WOULD WE LIKE TO ADD AS AN
ENTREPRENEUR ?

The Idea - Becoming a Supplier

We realise that the buyer just needs three things:

1. Good quality
2. Good price
3. Good delivery

And if all three of these criteria are met, it makes no difference who provides the
material. Therefore, if the Yarn Bazaar becomes a yarn supplier itself and sells the
product through its own network, the company can make profits indefinitely.
Now rather than just being an intermediary, the Yarn Bazaar can be the primary
dealer.

How can this be achieved - Leveraging from the Subcontractors

Subcontracting is defined as performing a portion of the work on a contract that
was originally received by another. The companies that do subcontract are called
subcontractors or job-workers.
There are numerous small factories, particularly in South India, that work on
orders for other brands. These small businesses lack market exposure, market
bandwidth, channels, marketing facilities, and financial resources. Yarn Bazaar can
build a network of such small businesses and form a permanent dealership with
them to make yarn, then white label that yarn under their own name and sell it
through their own network becoming a supplier themselves.

How will this help The Yarn Bazaar ?

By selling yarn in their own name, Yarn Bazaar :

● Can increase their take rate
● Can reduce the selling price
● Would get increased commission
● Would get manufacturing profit
● Would be able to establish long term relations with the customers
● Would be able to control the manufacturing capacity
● Can essentially increase their profits.

How will this help the small companies, i.e, the subcontractors ?

● Due to lack of funds, and marketing channels, such small companies do not
get enough orders to utilise their capacity and sustain themselves.
● Mills in the yarn manufacturing sector that do not have any orders will
receive work as a result of such a permanent dealership with The Yarn
Bazaar.
 ● Furthermore, the subcontracting facility will provide investment protection
to the mills, and the employment of their workers will continue.

How will this help the yarn buyers?

If The Yarn Bazaar becomes the supplier itself, the buyers will:
● Get increased variety because of more yarn suppliers on the platform
● Get consistent quality
● Get timely product deliveries
● Overall hassle will be reduced
● Smooth process of buying yarn

SHARK TANK DEAL CLOSING ?

Mr. Pratik Gadia, the Founder & Chief Executive Officer of “The Yarn Bazaar”, came to Shark
India to ask the sharks, Anupam Mittal, Aman Gupta, Namita Thapar, Ashneer Grover, and
Peyush Bansal, to invest in his business.

The initial offer that Mr. Gadia came with was Rs 50 Lakh for 2% Equity. After listening to his
pitch, two of the judges, Peyush Bansal and Anupam Mittal, decided to give the offer to invest in
“The Yarn Bazaar.” However at the same time, two other sharks namely, Ashneer Grover and
Aman Gupta also wanted to put up an offer to Mr. Gadia.
To prevent any conflict, the four interested sharks, after a discussion, came up with a combined
offer to put in front of Mr. Gadia. That offer was, Rs 1 Cr for 10% Equity. However, Mr. Gadia
was dissatisfied with this offer and put up his own counteroffer of Rs 1.25 Cr for 10% Equity.
After a bit of deliberation and persuasion from the investors, Mr. Gadia agreed to their offer and
finally took the offer of Rs 1 Cr for 10% Equity.

The Yarn Bazaar pitched its business on Shark Tank and successfully secured an investment,
hence, leading to a boost in exposure and revenue for the company. The sharks are experienced
business people who can provide funding, valuable advice, and connections to help the company
grow.

Here are some of the key contributions they made:

1. Funding: The sharks invest their own money in businesses in exchange for a percentage
of equity in the company. This investment provides a significant infusion of capital that
the business uses to grow and expand.
2. Expertise: The sharks are successful businesspeople with a wealth of experience and
expertise in various industries. They provide valuable advice and guidance to the
business on topics such as marketing, operations, and strategic planning.
3. Connections: The sharks have extensive networks of contacts in various industries, which
they leverage to help the business grow. They also introduce the business to potential
customers, partners, and investors, which helps the business expand its reach and
generate more revenue.
4. Branding: The sharks are successful entrepreneurs and investors who are well-known in
the business community. By investing in a business on Shark Tank, they lend their
credibility and reputation to the business, which helps the business establish itself as a
serious player in its industry.
5. Exposure: Appearing on Shark Tank provides the business with significant exposure to a
large and dedicated audience. Even if the business doesn't receive an investment from the
sharks, the exposure from appearing on the show leads to increased brand recognition and
customer interest.

In the end, The Sharks on Shark Tank provided valuable contributions to “The Yarn Bazaar”
since they believed the business had strong potential for growth and profitability. The Yarn
Bazaar’s well-developed business plan, unique and marketable service, and convincing pitch
helped them to win over the sharks and secure investment.
CONCLUSION

REFERENCES