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Why you can't build a Meesho copycat? 🐱
DNA > everything else.
Meesho started as a drop-shipping model back in 2015. Fast forward 7 years, it did over 91 Cr orders in 2022 - that’s massive scale. So why can’t Flipkart build another Meesho copy cat? Let’s find out ⬇️
Some context 🗓
Everyone from Flipkart to Amazon has tried building a Meesho competitor in the last 5 years. But, most have shuttered down.
Why it's hard to build another Meesho?👇🏻
Interestingly, capital isn't the problem. Most players who tried building a Meesho copycat had more than enough capital. So what is it?
Why is Meesho winning the Bharat war?
Flipkart has been more than ten years in the making, but when it comes to tier 2+ cities, 8-year-old Meesho is clearly winning the battle.
1/ The 'India' Vs 'Bharat' DNA 🔬
You can't build a Meesho sitting in an AC room in Koramangala. You will have to go and breathe like the Bharat audience. Bharat nuance does not come by hiring a consulting firm to research in Tier 2/3 towns.
2/ Acquiring Meesho competitors’ ≠ solution 🕹
Flipkart's Shopsy, Amazon acquired GlowRoad.com but none have made the mark. There is a fundamental problem here - they don't think of Bharat first across marketing, positioning & distribution.
3/ Bharat doesn't trust online shopping 💔
Meesho's GTM was based on building the women (housewives) led distribution in the early days of Meesho. It built an important trust layer that whatever is ordered on Meesho will be delivered as promised. Copycats are missing the point. Painting the internet with ads won't build trust.
💡 If you are curious, I wrote a larger framework on how to design for trust in internet companies a few weeks back where I drill down Tinder, CRED, Airbnb & Zomato's trust design framework.
4/ Bharat pin codes are nightmares 📍
Generating demand is easier than fulfilling orders across 19,000 pin codes. With Amazon/Flipkart delivering prime orders in tier 1 cities with speed, Meesho excels at fulfilling orders in the remotest part of India - this is by design.
5/ Optimising logistics cost 🚚
Meesho owns more than 40% of all volumes from third-party logistics players in the country. Let that sink in. This solves optimising empty rides’ first/last mile logistics touch points. No trucks going empty on most rides.
6/ Pick & choose categories ⚡️
Meesho doesn't push all its category on every pin code. No wonder it doesn't focus on smartphones as a category. But, think of buying from a large variety of Saree’s from as low as ₹400.
That's all for now ❤️
Meesho has the first-mover advantage and the right capture built for the Bharat audience. It does have its own set of challenges though from low AOV on most orders to order return rates to really solve for frequency - but its larger bet is India's per capita income increasing in the next 7 years.
At double the current per capita income, Meesho will become a monopoly on the Bharat e-commerce store. It's only getting started 🇮🇳
What plans this Sunday, Sherlock? 😃
Join me for the 15th edition of the GrowthX Demo Day. We have come a long way from since we started doing demo days back in 2020. It feels surreal to be on the 15th edition with over 20K folks attending them in last 2 years.
We do this for the ecosystem to really create the right culture of growth. This time around you get to see what GrowthX member have built to grow revenues for products like - Astrotalk, Sleepy Owl, Miro, Jar, Setu & BluSmart.
The strategies include macro strategy, user / product insights, the revenue model & how each tactical revenue lever will be solved for - everything considering the budget restrictions this macro has put on us.
Grab some popcorn and show up on coming Sunday 1 PM. Just click on the link to register : https://growthx.cc/dd15