There could be more types of memes and jokes about Baba Ramdev and Patanjali than the number of products the company have in the market. But the fact that none of these memes and jokes makers match the success of a dhoti wearing baba is near the fame which Baba Ramdev developed in recent years. The company is a multi-million dollar company and if everything goes well, it could be a billion dollar company (in profits) in coming months. The fact that it have a lot more than what an ecommerce company needs, it could be the most successful company in India in the etailing space.
Disclaimer : We are not taking funding as a success factor because it never is. The success factors are based on positive ROI (Return On Investment), number of orders placed, growth, brand recognition and penetration. Here are the reasons why Patanjali could be the Most Successful e-commerce company in India.
Presence on the sales space
The company have both online & offline presence. Though the company have majorly ventured into offline route of sales, the company’s products are being sold at various ecommerce sites. As per our analysts, the sales reports suggests that despite the less discounts on them, they are selling. This is a glimpse of what could be the response of the company if they venture into the space of online selling.
Retail Outlet and reach
The very big retail outlet network is one more factor. The company needs no specific delivery system or any kind of partnership from various big delivery firms as the stores are present in most of the locality. Therefore an added cost of say Rs.30 can be asked for any order placed (with a minimum price cap) so that it can be delivered from your neighbourhood store. Retail outlets will have more sales and the transportation distance and cost would be less. As a matter of fact, Patanjali Ayurved sells through nearly 4,700 retail outlets as of May 2016.
There is already a Gurgaon-based startup for hyperlocal delivery of medicines and healthcare products, Pluss will be delivering Patanjali products. – yourstory
No Pressure from investors
They are not funded and therefore do not worry about the funding rounds which keeps a lot of startups breathing. They can venture on their own, suffer the losses (if any) and can compensate on the offline side of the sales. There is no pressure from the investors and the company would be working on its own will and experiments.
Brand image is good and the name is established in the market. A top executive from a rival company said that “I have to fight the products at my own home”. People use the products, love them, but do not discuss about them because it is not cool because a ‘dadhi-wala baba’ is endorsing some cheap but quality products. Furthermore, penetration in the Indian market is good already, therefore the company needs not to introduce the brands and the products with some gloomy ads as the Yoga-camps already did it earlier . There are numerous other reasons but these one seems more prominent as of now. Anyways, what awaits with any startup is an opportunity in multiple dimensions.