GM is not the only issue. Its lack of scalability and efficiency at <50cr, which impacts hygiene, quality and shelf-life and increases production costs esp labor. The other bit is distribution - wholesale vs retail, which eats into the margins
There are essentially four parties in the startup economy:
Now let's look at Game Theory motivations:
This is exactly how it is. Indian consumers lack the purchasing power to pay higher margins on goods and will often r...
-Online brands are expanding offline to achieve scale -Late stage startups are gearing towards profitability earlier than planned -Biz models built on behavior during Covid are struggling (like edtech) -Startups which got funded due t...
Today I was exploring mobile offers on flipkart and added a mobile to the cart. Once I opened the cart to see the final price, I was surprised to see a new price head - 'Secured Packaging fee'. Above all the heads - platform fee, deliver...
When you compete to serve the top 1% of India, obviously it will end up in losses
Sad that these companies don't prioritize profitability first than growth. This model of growth at all costs is now c...
