Deep Gadkari
@DeepGadkari
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Get smarter about D2C/Startups/Business
Joined January 2018
Worked in pharma channels for 13 years Chemists get 15-20% mandated margins (can't share the reason) They get schemes of 12/20 % per product Cash discount of 2-3% if paying cash upfront Same day delivery of many SKUs, so no overstocking 30-45 days credit period as huge
The business model of my local chemist in Ahmedabad is undefeated: The Service: I send one WhatsApp. Medicines arrive at my door same-day. No delivery fee. No minimum order. The Price: A flat 20% off. The Payment: This is the crazy part. He gives me & all his regular
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English fluency is not the barometer of business success in India It's just a status game Hindi/regional language is the language of mass business You cant build a huge business in India if ur mindset is of Manhattan while selling products for Moradabad
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On Flipkart Whey protein category growth - 50% YoY Health mixes category growth - 50% YoY Multiple categories growing massively in tier 2/3 India Good product at right price at right place that is it ! Y are u blackpilling on India Parth ! Glory awaits Indian consumer markets
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Necessity is the mother of invention Repetition is the father of skill
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Watched Dhurandhar last night, what a movie ! especially the 26 Nov part, all those images were haunting,was at CST station that day few hrs earlier. Most things in life arent zero sum, except P@kis No talks No peace until... Total surrender to the might of Indian state
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Recently we launched a product frm idea to consumer feedback 1 month, under 1 lac investment Thanks to AI based consumer research,meta ads library,Shopify/marketplace ecosystem Time taken frm launch to feedback has crashed Digital ecosystem has brought so many opportunities
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Year 2016, we tried launching a product Did market research for consumer understanding Negotiated with mass media Mfg of product n supply to distributors STILL we failed Time taken 6-8 months frm idea to feedback n lacs f investment Now I think how inefficient old system was
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Real profitability in D2C isn't hidden in ur Meta ad account, it's in 1. product cost n gross margins 2. Shipping cost n RTO 3. Shopify/marketplace mix 4. Lean team structure Structure ur business in such a way that it's profitable even at 1.5 ROAS
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Boredom is a moat" - Shri Shri Vinod Chendil This profound, simple n underrated line is often ignored by entrepreneurs Making one product n large market n one channel with one media outlet is a boring but extremely profitable task But nahi we want shiny objects Karo fir !
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Look for broader category growth rather than ingredient growth Category growth is generally sustainable and profitable Ingredient growth is short term and can lead to inventory block Eg- Hair serums as a category is growing by 80% Whereas Shilajit grew rapidly n fell fast
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One liberating realisation is that Nobody knows Sh#t, everyone is figuring it out on the go, b it business, govt, society This is a scary but liberating thought, which means u can just do things, it's only ur mental blocks that are stopping u.
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When I use to run B2B business, use to joke, we are in financing business. The sooner u change ur business model towards negative working capital, better for ur growth n profitability Lower revenue with negative working capital >> high revenue with high working capital blocked
If you’re in business because other businesses use you as an unofficial bank, you’re not doing good business.
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Sometimes being contrarian can help When the whole world is behind building brands on quick com Go build brands targeting Tier 2/3/4 India steadily and profitably I repeat you ppl underestimate Flipkart n Meesho
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10% of 1000 cr valuation co Or 80% of 125 cr valuation co Founders which one will u prefer n y ?
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When analysing any market to launch product or service look at these four broad things 1.Massive pain 2.Growing market 3.Ability to pay 4.Ease of targeting 1 & 2 are non negotiable for me.
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1% people make things happen 9% people watch what happens 90% people ask what happened
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Life of entrepreneur Wanted to check on dispatch at our vendor factory Out of nowhere 1800 tractors line up n did full chakka jam Double seat toofani bike ride with labor guy Got to know it's a buying season at local mandi Dispatch delayed by 2 days Need to plan better
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Saying this from ground zero somewhere in Madhya Pradesh,the demand for health products is going insane in Tier 2/3 India Seeing my mfg setting up 40000 sq ft facility for a leading brand and is booked for next 1 year. Bois n Gals start building
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Fragmented attention is the biggest opportunity for startups in India and from this phenomenon many 100 cr brands will emerge
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