Meesho Case Study
Meesho one of the first e-commerce platforms in India, targeting the nation’s housewives by enabling them to launch their online retail stores with no capital outlay and no inventory at all.
Meesho, a social commerce platform situated in Bengaluru, made headlines on April 5, 2021, when it was announced that it had joined the elite unicorn club. This accomplishment followed a fruitful investment round that collected a sizeable US$300 million and was headed by the Japanese company SoftBank Group Corp.
Sanjeev Barnwal and Vidit Aatrey established Meesho in Bengaluru, India, in December 2015. The Hindi term “meri shop,” which means “my shop,” is the source of the name “Meesho.” The startup’s main goal was to help people without physical stores and small business owners promote their items online. A lot of small businesses had trouble getting the funding they needed to open their own stores.
The beginning…
Vidit Aatrey and Sanjeev Barnwal, two IIT grads, are the creators of Meesho. 2015 saw the founding of it following their resignation from InMobi.
Their firm has two primary objectives: to empower the nation’s housewives and to provide support to Micro, Small, and Medium-Sized Enterprises (MSMEs).
At that point, they observed that many resellers were using WhatsApp to sell goods, but their reach was limited because they could only deliver their goods locally, to small groups.
They also discovered that most of the stores listed on MEESHO were run by women, and that these women primarily sold their goods online rather than in physical stores.
“We are building the single shopping destination for the next billion consumers in India,” Aatrey says.
The working…
Meesho distinguishes itself as the leading resale marketplace by easing the goods selling process. Meesho allows you to market fashion and lifestyle products on social media sites like Facebook, Instagram, and Whatsapp in order to make money. When you open the Meesho app, you’ll see a wide selection of premium goods that come from reliable vendors. Select goods you think your network will find appealing and encourage them to buy. Talk about these products with your friends on Facebook, Instagram, Whatsapp, and other social media sites.
The transition from FashNear to Meesho…
Prior to Meesho’s creation in 2015, the concept was somewhat different. “FashNear” was the name of the initial firm, which offered a shopping app with carefully chosen products from local fashion boutiques.
Up to three products may be ordered by a customer and delivered right to their door. They may, however, return any thing they didn’t like to the delivery person and keep the remaining items.
The concept of enabling small company owners to launch their digital stores replaced FashNear. This strategy allows anyone to start an online store by logging in using their Facebook credentials. The platform was the top option for resellers since it managed everything internally, including inventory, packing, and shipping.
The Marketing Strategy…
Meesho offers a wide range of products, particularly focusing on ethnic wear for women, including sarees, Kurtis, and Lehengas. It also provides accessories, footwear, bags, and jewelry. For men, Meesho features traditional outfits like kurtas and sherwanis, as well as Western wear options such as jeans, shirts, and T-shirts.
Meesho, however, offers more than just clothes. Basic cooking accessories, everyday use products, décor items, and even electronics are all included in the platform. Meesho aims to be a one-stop shop for all consumer needs with such a wide selection. Here are some more things Meesho has thought about:
- Quality product at low price
- Discounts and First order offers
- Free delivery and shipping
- Availability of Cash on Delivery (COD)
- Free return & refund
- Unique marketing campaigns
The campaigning….
- “Humara Mission Sabse Kum Commision”
Meesho just charges 1% as a modest commission. All suppliers have to do is create an account on Meesho and add their items. Orders start to flow in after the products are published, particularly when business owners post about them on social media. Their dedication to guaranteeing that all suppliers, regardless of size, have their items visible on the Meesho platform was the campaign’s most notable aspect.
With the ability to reach up to 10 million individuals, this opportunity gives providers more visibility across more than 600 categories. Additionally, Meesho guarantees affordable shipping costs, giving suppliers and distributors a fantastic platform on which to grow and prosper.
2. #MystoreMystory
#MyStoryMyStory was another noteworthy effort that brought attention to the variety of roles that women perform in our lives. It highlighted the process of coming to terms with one’s individuality, with Meesho being essential to this realization. Meesho used this campaign to effectively promote its brand while spreading a lovely message about women’s empowerment. It provided an example of how women may start their own businesses as resellers and become well-known in their communities in addition to becoming financially independent.
3. Arrey Waah
Meesho launched a marketing campaign title “Arrey Waah” in March 2022 to tap into a versatile and new consumer base. By utilizing the excitement and engagement that circulates IPL and cricket in general, they were able to successfully market their products.
The target audience segment…
Meesh’s primary target auidence consist of men, women, and young adults. Meesho’s target audience includes homemakers who wish to start a small business, women seeking financial independence, consumers from the tier 2+ market first -time online shoppers, and anyone looking for affordable deals. Based on these broad target groups, Meesho curated its marketing strategy effectively targeting each group for the best results.
The business model..
Meesho started growing its business after determining that its aim was to enable housewives to create their own identities and make money and finding a product-market fit. This is how Meesho’s distribution plan and business model work!
With the fashion sector as its focal point and women as its target audience, Meesho worked with a range of YouTubers and influencers. Meesho gained fame in the social commerce sector thanks to the influencers who promoted its user-friendly software and over 200 different categories of products with their own communities through posts and videos, all while receiving minimal compensation for their work.
The revenue model..
Meesho makes money in a few different ways:
- Commissions: Meesho receives a commission of between 10% and 20% for every sale made using its website or app.
- Penalties: Meesho charges the seller a penalty fee when a product is returned because it was damaged or of poor quality.
- Advertisements: Meesho allows sellers to increase the visibility of their products relative to competitors by providing paid advertising possibilities on its platform.
- Logistics: Meesho offers complete assistance with product packaging and doorstep delivery. In addition to saving merchants time and effort, this logistical support brings in money for Meesho.
- Float Money: Meesho retains payments for seven to ten days after delivery, known as “float money.” Meesho will be able to earn interest and profits on investments and loans made with this funds.
The earning potential…
Everyone has the ability to earn with Meesho. With more than 200 product categories, you can quickly create a customized selection based on the tastes of your community and publish it on social media sites like Facebook, Instagram, and WhatsApp.
You will receive a commission for each sale generated by your efforts, in accordance with Meesho’s policies. You can also choose how much of a profit margin to charge for each product separately. When a consumer is prepared to place an order, you just need to tack on your profit margin to the total cost of the goods as it appears on the Meesho app, including shipping, and let them know what the final pricing will be.
In accordance with Meesho’s policies, you should receive your payment 7–10 working days after the order is delivered. When an order is placed for Cash on Delivery (COD), the delivery officer receives payment directly from the consumer. After ten business days, Meesho will credit your payment after receiving it through their agents.
The final thought…
Customers can now make straight purchases using Meesho’s app. Although its reseller clientele has undoubtedly been offended by this, the startup is thriving and has no rivals.
Currently, 75% of its income is derived directly from its clients, with resellers providing the remaining 25%.
Instead of using resellers, customers can purchase goods straight from the suppliers, saving them a significant amount of money. Due of its costs, major competitors like Amazon and Flipkart face fierce rivalry.
All that is left to ask is: Is Meesho just another e-commerce company, or is it still the best reselling platform in the social commerce space? We hope that this Meesho case study has improved your understanding of the achievements of this firm. Please share your thoughts in the comments section below!