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Structuring the unstructured -Opportunities everywhere!

Opportunities in Retail distribution using unstructured/semistructured entities.

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Structuring the unstructured -Opportunities everywhere!

  1. 1. Structuring the unstructured -Opportunities everywhere! Malapati Raja Sekhar
  2. 2. What is this about? <ul><li>Innovation is needed in </li></ul><ul><ul><li>Retail distribution </li></ul></ul><ul><ul><li>Retail services </li></ul></ul><ul><li>After effects: </li></ul><ul><ul><li>Huge employment creation </li></ul></ul><ul><ul><li>Reaching BOP markets </li></ul></ul><ul><ul><li>Cost reduction due to process efficiency </li></ul></ul><ul><ul><li>Customer Loyalty Management </li></ul></ul><ul><ul><li>Beautiful India </li></ul></ul>
  3. 3. Unstructured .. Where?? <ul><li>Footpath vendors (Dosa/Vadapav/Juice/CD-sales/footwear/sweets/ books /cloths/vegetables etc) </li></ul><ul><li>Tea vendors </li></ul><ul><li>PCO booths </li></ul><ul><li>Barber shops </li></ul><ul><li>Paan wala </li></ul><ul><li>Medical Shops </li></ul><ul><li>Highway hotels/dhabas </li></ul><ul><li>Real Estate agents </li></ul><ul><li>Bicycle/bikes/other vehicles servicing </li></ul><ul><li>Mobile sales/services </li></ul><ul><li>Watch servicing </li></ul><ul><li>Tuition centers/coaching centers </li></ul><ul><li>Shoe polishing </li></ul><ul><li>Schools </li></ul><ul><li>Distance education centers </li></ul><ul><li>Many many more ……………….. </li></ul>
  4. 4. Semi-structured <ul><li>Cable TV operators </li></ul><ul><li>Newspaper vendors </li></ul><ul><li>Medical representatives </li></ul><ul><li>Insurance agents </li></ul><ul><li>Grocery/FMCG distribution system </li></ul><ul><li>Petrol bunks </li></ul><ul><li>Music/Video stores </li></ul><ul><li>Hospitals </li></ul><ul><li>Furniture </li></ul><ul><li>Utensil sales </li></ul><ul><li>Electrical Sales/Servicing </li></ul><ul><li>Pesticides sales </li></ul><ul><li>Autowala </li></ul><ul><li>Milk distribution </li></ul><ul><li>Movie Theatres </li></ul><ul><li>Hotels/Lodges </li></ul><ul><li>Many many more.. </li></ul>
  5. 5. How to structure them? <ul><li>Franchisee model </li></ul><ul><li>Bring process innovation </li></ul><ul><li>Mechanize the processes </li></ul><ul><li>Performance based systems </li></ul><ul><li>Scaling </li></ul><ul><li>Branding </li></ul><ul><li>Financial Support through loans </li></ul><ul><li>Licensing Fee/Transaction fee </li></ul><ul><li>Benefit to Consumers </li></ul><ul><ul><li>Cost reduction </li></ul></ul><ul><ul><li>Awareness is relatively easy </li></ul></ul>
  6. 6. Role models .. elsewhere .. <ul><li>McDonald </li></ul><ul><li>Pizzahut </li></ul><ul><li>KFC </li></ul><ul><li>Domino’s </li></ul><ul><li>Subway </li></ul><ul><li>Hamburger </li></ul>
  7. 7. Indian Role models: Retail giants <ul><li>Big Bazaar </li></ul><ul><li>Subhiksha </li></ul><ul><li>Vishal </li></ul><ul><li>Reliance Fresh </li></ul><ul><li>Shopper's Stop </li></ul><ul><li>Spencer </li></ul>
  8. 8. Jumboking: Vadapaav company! <ul><li>Number of outlets: 40+ </li></ul><ul><li>Structural Innovations: </li></ul><ul><ul><li>Standardized Paav </li></ul></ul><ul><ul><li>Reduced the delivery time </li></ul></ul><ul><ul><li>Optimal usage of outlet size </li></ul></ul><ul><ul><li>Covered with Tissue Paper </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Introduced efficient processes </li></ul></ul><ul><ul><li>Mechanized much of the process </li></ul></ul><ul><ul><li>Selling Cold drinks as well </li></ul></ul><ul><li>Similar: Monginis, Coffee Day, Dosa Plaza, Mr and Mrs Idly, etc </li></ul>
  9. 9. Haldiram <ul><li>Numbers: </li></ul><ul><ul><li>Started as Bhujiawala </li></ul></ul><ul><ul><li>$ 6 mn export business of 60 products to 40 countries </li></ul></ul><ul><ul><li>Total menu consists of 160 items </li></ul></ul><ul><ul><li>50% of the annual sales only during diwali </li></ul></ul><ul><ul><li>50000 customers visit everyday </li></ul></ul><ul><ul><li>700 domestic distributors </li></ul></ul><ul><li>Process Innovations: </li></ul><ul><ul><li>Mechanized the manufacturing </li></ul></ul><ul><ul><li>Packaging </li></ul></ul><ul><ul><li>Door delivery </li></ul></ul><ul><ul><li>Special Gift packs </li></ul></ul><ul><li>Similar Companies : Lays, Kurkure, Priya pickles,, etc </li></ul>
  10. 10. Ananda Bhawan: Restaurant <ul><li>Process Innovations: </li></ul><ul><ul><li>Standardized the menu/taste </li></ul></ul><ul><ul><li>Home delivery </li></ul></ul><ul><ul><li>Selling sweets as well </li></ul></ul><ul><li>Similar: Udipi hotels, Saravana bhawan, etc </li></ul>
  11. 11. DPS : School <ul><li>Number of Schools: 100 </li></ul><ul><li>Investment: </li></ul><ul><li>Structural innovations: </li></ul><ul><ul><li>CBSE system </li></ul></ul><ul><ul><li>Continuous tests/assignments </li></ul></ul><ul><ul><li>Excellent sports facilities </li></ul></ul><ul><ul><li>Computer facilities </li></ul></ul><ul><ul><li>Admission based on Merit </li></ul></ul><ul><ul><li>Library </li></ul></ul>
  12. 12. Veta: English Coaching centre <ul><li>Numbers of centers: 200 </li></ul><ul><li>Structural innovations: </li></ul><ul><ul><li>Bi-lingual teaching </li></ul></ul><ul><ul><li>Assessment prior joining </li></ul></ul><ul><ul><li>Home study package </li></ul></ul><ul><ul><li>Special programs during summer </li></ul></ul><ul><ul><li>Language club sessions </li></ul></ul><ul><ul><li>Free class on Saturdays to clarify doubts </li></ul></ul><ul><ul><li>Restricted class strength </li></ul></ul><ul><li>Similar organizations: IMS, Narayana, NIIT, Brilliant, FIITJEE, Jetking, IHT etc </li></ul>
  13. 13. Shankaranethralaya: Hospital <ul><li>Structural innovations: </li></ul><ul><ul><li>Perform multiple tests irrespective of the problem(s) stated by the patient </li></ul></ul><ul><ul><li>Innovative Training services for staff </li></ul></ul><ul><ul><li>Mass handling procedures </li></ul></ul><ul><ul><li>Latest Technology usage </li></ul></ul><ul><ul><li>Patient loyalty program </li></ul></ul><ul><ul><li>Hygiene atmosphere </li></ul></ul><ul><ul><li>Low cost treatment </li></ul></ul><ul><ul><li>Backend integration </li></ul></ul><ul><li>Similar: Apollo hospitals, etc </li></ul>
  14. 14. Many many more <ul><li>MedPlus, The Medicine shoppee, etc </li></ul><ul><li>Higginbothams, Crossworld, etc </li></ul><ul><li>NetFlix, 70MM, etc </li></ul><ul><li>Next, Trent, etc </li></ul>
  15. 15. PCOs <ul><li>Number of PCOs ~ 60 Lakhs </li></ul><ul><li>Connected through operators </li></ul><ul><li>Most of them are getting closed </li></ul><ul><li>Good size of Retail space holding </li></ul><ul><li>Presence in prime locations </li></ul><ul><li>Have customer relations </li></ul><ul><li>Reading/writing skill sets </li></ul><ul><li>First generation entrepreneurs </li></ul>
  16. 16. Simple opportunity: Third party distribution system <ul><li>Banking </li></ul><ul><li>Insurance </li></ul><ul><li>Courier </li></ul><ul><li>Money remittance services </li></ul><ul><li>Matrimonial services </li></ul><ul><li>Placement services </li></ul><ul><li>Mobile recharging </li></ul><ul><li>Bill payments </li></ul><ul><li>Ticket booking (Bus/Train/Hotel/Air/Movie) </li></ul><ul><li>Many many more .. </li></ul>
  17. 17. Questions/Suggestions <ul><li>Please write me to </li></ul><ul><ul><ul><li>malapati sarvat com or Gmail id: malapati </li></ul></ul></ul><ul><li>Please call me at: </li></ul><ul><ul><ul><li>Nime nime sics seben to gero seben won sics fore </li></ul></ul></ul>

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