How Meesho cashed in on the festival season?
Ecommerce unicorn Meesho, clocked a 68% jump in sales during the festive sale. Business Standard's Surjaeet Das Gupta speaks to Utkrishta Kumar, Meesho's business CXO, about the record sales and more
Surjaeet Das Gupta New Delhi
Q: Congratulations on the big sale and all the records that you have broken. Just wanted to understand how it was and what is the kind of depth that you could get in terms of markets, towns, cities etc?
>Executed 3.34 crore orders during the five-day mega sale in September
>The September sale was 68% above the previous sale, in terms of magnitude
>60% of the overall sale orders came from Tier-4 cities of India
>Company’s value proposition of affordability played a role in making it the preferred shopping platform for Bharat
Q: How many towns and cities, what’s the kind of penetration that you had and how has this helped in testing out Tier 4 and other cities?
>Company made unprecedented penetration into Tire4 cities of the country
>The sale event was a way to reach out to customers who are new to ecommerce
Q: What is the average selling price in the 60% sales, compared to the ASPs across the country? What is the behavioural change you have noticed from this experience?
>Big sale events tend to cater to certain categories or specific SKUs
>The ecommerce platform has all categories that uses want
>Witnessed non-linear jump in categories like home and kitchen, electronic accessories, beauty and personal care, etc this year
>Brought down prices in certain categories to make them more enticing to the customers
Q: How does the model work? What is the monetisation model that you have?
>Platform has 0% commission structure
>Among different streams of monetisation, seller ads continue to be one of the major strategies to reach profitability goals
Q: The distribution to last mile – who does that?
>Company has a tech-heavy set-up and owns no assets
>Works with all the 3PL (third-party logistics) in the ecosystem and leverage their capabilities
>Seller pays the logistic cost and the platform charges no commission
Q: Your next investment in growth – investment in which areas? Have you sort of more or less finished off the growth in most PIN codes? Where will the requirement of investment be?
>Biggest investment will be towards technology
>Wish to deliver best experience to the underserved consumer wants
>The opportunity ahead for the platform is massive
First Published: Oct 19 2022 | 7:00 AM IST