Imbue Biz

Truth? or is it a myth? Original Story by Prashant Sachdev With the entry of e-commerce channel in India, the concept of burning cash to increase market share came into picture. Over the period of time, more industries such as telecom have indulged into this practice. Let us consider two of the most impactful cash burning events in the recent history: Big Billion Day Sale I remember the day when Flipkart had first launched their Big Billion Day Sale in 2014. Many products such as smartphones, accessories etc. were sold at Rs. 1! At that time, most people thought that flipkart was foolish to sell products at such huge losses. With such negative EBITDA in almost all categories, how could a company survive, even in the short term! The only explanation for doing so was to entice customers in the short term and habituate them into using the then new service. They did succeed in doing the above. However, over the period of time, new players such as Amazon, Snapdeal etc. were born in India. N...

The increasing rent for commercial spaces is becoming a major challenge for companies to get a positive ROI for their Retail Stores. Original Story by Prashant Sachdev Recently, an old friend of mine started his own restaurant in New Delhi. He chose an amazing catchment for the same which is helping him to get a decent footfall and most of the items offered by him are having a good profit margin as well. But even after doing that, the contribution margins are still very low. Surprised? Guess who the culprit is? You guessed it right! It is the high rent cost that he is bearing which is becoming a major challenge for him day by day. Most retail chain companies in India opt for large commercial spaces in highly populated areas, preferably malls or shopping centers. Such properties do get them a good footfall with the least amount of BTL (Below the Line) advertising, but sooner or later, they realize that the bigger issue for them is not the fo...