If you are an Indian or based in India, hope you had a great time w/ your loved ones on the occasion of Diwali.
It was a long weekend in India & an opportunity to catch up w/ some old friends. Over many discussions on a myriad of topics, there was a common question that I kept fielding → “Why are so many companies trying to become the Thrasio for India?”
To think of it, it’s a very interesting question & it piqued my curiosity that set me out on a quest to learn more. This post summarizes my findings & observations.
E-commerce macro: India doesn’t have an e-commerce monopoly, unlike the US/China. Add government initiatives like ONDC to the mix, and you get a very even playing field in distribution. We have a couple of scaled marketplaces w/ similar GMVs, while others dominate vertical categories like beauty, apparel, baby care, etc. Thus, any company attempting a Thrasio-like roll-up play in India has to solve for market leadership across multiple marketplaces & platforms.
COGS/BOM: If you analyze the COGS &/or BOM for any digital Indian consumer brand, you’d find a lot of local SME-led & contract manufacturing. Thus, it becomes imperative for any roll-up player to deeply understand local sourcing & local value chains. And you could argue significant cost advantages open up if you cluster multiple small brands under one umbrella.
These are two very strong reasons presenting the opportunity for a new category & new players. And this could explain why we have so many players (Mensa Brands, GOAT Brand Labs, Evenflow, Upscalio, 10Club, Powerhouse, Globalbees, etc.) attempting the domestic roll-up play.
What do you think about the entire category &/or theme? I’d love to hear your feedback on LinkedIn, Twitter, or in the comments below.
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[#15] Does a "Thrasio for India" make sense?
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Hello readers,
If you are an Indian or based in India, hope you had a great time w/ your loved ones on the occasion of Diwali.
It was a long weekend in India & an opportunity to catch up w/ some old friends. Over many discussions on a myriad of topics, there was a common question that I kept fielding → “Why are so many companies trying to become the Thrasio for India?”
To think of it, it’s a very interesting question & it piqued my curiosity that set me out on a quest to learn more. This post summarizes my findings & observations.
E-commerce macro: India doesn’t have an e-commerce monopoly, unlike the US/China. Add government initiatives like ONDC to the mix, and you get a very even playing field in distribution. We have a couple of scaled marketplaces w/ similar GMVs, while others dominate vertical categories like beauty, apparel, baby care, etc. Thus, any company attempting a Thrasio-like roll-up play in India has to solve for market leadership across multiple marketplaces & platforms.
COGS/BOM: If you analyze the COGS &/or BOM for any digital Indian consumer brand, you’d find a lot of local SME-led & contract manufacturing. Thus, it becomes imperative for any roll-up player to deeply understand local sourcing & local value chains. And you could argue significant cost advantages open up if you cluster multiple small brands under one umbrella.
These are two very strong reasons presenting the opportunity for a new category & new players. And this could explain why we have so many players (Mensa Brands, GOAT Brand Labs, Evenflow, Upscalio, 10Club, Powerhouse, Globalbees, etc.) attempting the domestic roll-up play.
What do you think about the entire category &/or theme? I’d love to hear your feedback on LinkedIn, Twitter, or in the comments below.