October is about to enter its second half, and while domestic sellers are preparing for the annual Double Eleven event, not far away in India, an unprecedented social e-commerce promotion is underway. The event was so grand that it almost directly rivaled the annual sales launched by Amazon India, Flipkart and Myntra on October 3.
This company is meesho, a new generation force of social e-commerce in India that cannot be ignored. On the eve of the National Day holiday in our country, this company has just completed theUS$570 millionThe F round of financing was led by Fidelity Management and B Capital. At this point, the valuation of this unicorn company has reached an astonishing$4.9 billion, more than doubling its valuation in just six months. It can be said that it is absolutely hot and has rapid momentum.
Who is meesho? Why does it have so much financing?
meesho, a social e-commerce company that is about to turn six years old, was founded in December 2015 by Vidit Aatrey and Sanjeev Barnwal, graduates of the Indian Institute of Technology Delhi. Initially, it was a resale and distribution platform serving the KOC group of knowledgeable mothers in India. Today, it has developed into an integrated operating platform that aggregates the three roles of suppliers, distributors and end consumers. Suppliers sell goods to dealers, and dealers sell products to customers and receive commissions from them. Whether you are a business or an individual, you can quickly open a store and sell goods on social applications such as WhatsApp/Facebook/Instagram with Meesho.
- So far, meesho has been the leader in social e-commerce.leader。
- Within six years of its establishment, GMV reached$1.4 billion。
- The site has gained new users in the past six monthsthree times more, monthly order volume increasedmore than twice。
- In 2019, Meesho became India’sThe first oneStartups that have received investment from Facebook.
- In 2020, they were the number of downloads in Indiamostof applications in multiple categories.
"The excitement of meesho is its exploration of the emerging social e-commerce market, its decentralized personal economy and consumer-first strategy, and its platform proposition that highly integrates suppliers, distributors and end consumers," said Kabir Narang, co-founder of B Capital Group.
“We have evaluated e-commerce opportunities across emerging markets and are excited about Meesho’s focus on strong unit economics and a consumer-first approach. We are excited to partner with Meesho and its exceptional team that is democratizing e-commerce for a billion internet users across the country. Meesho’s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform,” said Kabir Narang, founding general partner at B Capital Group.
Social-based S2B2C distribution reconstructs the e-commerce transaction ecosystem
Entering the era of social media, this unprecedented nationwide digital transformation has brought about a complete change in the "people and goods field" of transactions. Everyone has discovered that as long as there is a social platform, as long as there is a supply of goods, and as long as there is a small B, you can conduct transactions.
We must feel familiar with this, similar to some domestic WeChat sales agents. The goods are provided by a certain platform, and the seller does not hold back the goods. After the goods are sold, the platform is directly responsible for logistics and delivery. The entry threshold is low, and coupled with the distribution profit-sharing design, every seller can gain income from every transaction and every recommendation, so why not.
Not only that, Indian housewives and mothers account for the majority, and young people in small towns have "nowhere to display their talents." Coupled with the diverse ethnic culture and the great popularity and use of social applications, decentralized and circle-based social e-commerce has burst out with unprecedented vitality.
On the other hand, meesho has given full play to the functional features of its S2B2C business model, providing supply chain (S side: Supplier), logistics payment and other basic e-commerce equipment, helping sellers (B side: Business) easily sell goods to end consumers (C side: Customer) on social platforms, and obtain distribution profits after successful sales, realizing the beautiful idea of "easily selling goods at home".
At the time of posting, meesho’s current promotion is almost over. This round of promotions with the theme of "Maha Indian Shopping League" is almost directly competing with the annual sales launched by Amazon India, Flipkart and Myntra on October 3.
History seems to be repeating itself, just like the double eleven and 618 events that impacted the traditional offline economy overnight. This time, it is social e-commerce’s turn to impact “traditional e-commerce” and become a new trend in the commodity sales industry. The ecology of online e-commerce transactions is undergoing significant changes.
Where will cross-border sales go? maybe this is the answer
2021 is really less than three months away. The passage of time does not mean that troubles are gone. When the supervision of platforms becomes more and more strict and the operation of independent stations is still difficult, some people will also be thinking, are there only two cross-border options?
Overseas, Meesho/DealShare/Shop101/GlowRoad are doing very well. At home, WeChat stores, Global Catchers, and Aikun are exerting the business magic of the S2B2C model. So, why can’t cross-border global expansion be S2B2C?S2B2C: A new e-commerce marketing model that integrates suppliers to empower channel vendors and jointly serve customers. In S2B2C, S is the large supplier, B refers to the channel provider, and C is the customer.
When we hold the powerful advantages of Made in China, Made in China, and Made in China, and enjoy the shade under the big tree of China's supply chain, what China's cross-border e-commerce merchants need is not only the C who happily places orders, but also the little B who can leverage a group of people.
SocialEpoch's S2B2C social owned-channel marketing solution is a global expansion model designed for cross-border global expansion people. It is supported by the SaaS product system and global expansion methodology training to form a closed-loop operation plan that integrates active traffic drainage, owned channel management and distribution fission to empower global expansion merchants across the board.
For the platform and independent station models, it is not an either/or choice, not a confrontation with the first two, but an empowerment of both, and a solid defense of the traffic base. Why do you say that? You can read this article (click on the title to view the original article):
In the future world, personalization is popularization and decentralization is the center. No one is the master forever. All everyone can do is seize the moment.
***owned-channel expansion find SocialEpoch***
***This article is originally published by SocialEpoch, and some information is compiled from websites such as economictimes/thetechportal/livemint/trak.in/wikipedia.
