 Welcome back to this edition of our show from logo to impact now at a time that we're talking about how e-commerce companies are growing There is an e-commerce company that has made inroads when you talk about tele-shopping and the one that you're talking about is snap Deal they've been in the business of tele-shopping for about 10 or 11 months With us then snap deal TV shop network that they've got going for themselves and when each girl see you of the companies Joining us on the show to tell us more about this So I'm looking at the kind of numbers that you have been able to gain over a very short period of time So one wonders where the real business is is it e-commerce or it's tele-shopping, you know Really complimenting or is it actually competing with what you're doing on the e-commerce space clearly come complementing each other Because we you know we do we address the different segments in the market e-commerce is all about you know The large cities the the connected people TV shopping addresses the needs of people who have resources who are available who are available in Markets where internet has not reached as much or they're not you know comfortable shopping online and that's where they find You know TV as an engaging medium TV, which informs them about a lot of products its utility You know how it's used in the real life, you know, we do a whole bunch of things to explain You know how these products help them in their life and so on and so forth I mean value of television is something that I discuss with advertisers so much on this show itself because the Efficiency of the medium that hasn't vanished despite the growth of digital etc. That hasn't gone away So it's interesting that you're looking at this space so closely and you've tied up with a cable Network to be able to do that while many others have gone the route of existing channels and buying time slots on it You've decided to tie up with a cable network So tell us what the thought process was even when you started all right So, you know others you know do a lot of slot buying so they're not a 24 bar 7 channel We wanted to launch a 24 bar 7 channel and the biggest difficulty any broadcaster would face is to you know get Distribution reach across you know every single home Indian home that you have there Then has about 30 million homes that they reach out to so we get that you know by default But other than that then has strategic relationships with everybody. They understand the market They know where the consumers are they know where the buying power is and therefore our ability to reach out of those homes and You know make the right decisions as to which home to go to what price to pay for you know reaching there You know is far far better than anybody in the competition, right and that makes sense Absolutely, so then once you have established this partnership and now that you tend to 11 months into it in terms of Return on investment so far. How's it looking how the number is really panning out? So, you know when one thinks of e-commerce you you basically imagine burning a lot of cash You know either advertising or discounting or you know creating, you know huge capacities and resources and not being able to You know leverage that well, but our philosophy has been totally different We decided from day one that you know we will go step by step in terms of investing into various resources Various infrastructure only and only when we see returns so be distribution at work Where we started four million homes and now we reach about 50 million homes So we graduate gradually increased our distribution reach as we see, you know sales coming in Similarly on production side the content production We have not yet set up our own studios and we outsource a lot of their work Which actually works out well for us from a cost efficiency standpoint You know snap deal being one of our parent companies We'll leverage a lot of strengths from them and we haven't really built a lot of you know capability in-house To do either sourcing or logistics and things like that So if you look at the whole thing, you know We have been able to use our money our capital very very efficiently and with very small You know amount of money we have built a 400 crore business, you know in about 10 11 months 400 crore rupee business in 10 11 months that doesn't sound too bad So in that sense the size of the market right now What's your assessment of it because through a cable network as large as a as den may be right now It is giving you a limited kind of access to the kind of potential that India as a market has So what are the chances that you're going to expand this and if you are going to expand that are you going to take the cable? Distribution route or are you going to look at again buying into channels? All right So first we are not just available and then we are below available on about 25 different cable operators Which includes fast way city cable INC and L and a whole bunch of others Right. We have recently started, you know growing on the DTH network as well So we are you know reliance. We are on videocon. We are on this So clearly we are not going to restrict our reach. So like I mentioned we have about 50 million homes that we currently reach I think you know we we we plan to get to about 100 million in next three to four months time So in that sense the pace of growth is much faster What are the chances that you are going to be? directing your resources At the point in time that people are looking only at like going the app only route is there going to be more Concentration on television as opposed to the many other routes that you could be taking to expand your business All right. So, you know clearly it is tea commerce. It's tea. It's on TV, right? But we won't you know restrict ourselves to doing only TV. I think technology can help us in a big way QVC in the US does about six billion dollars of business India overall all the players put together does only one billion So in a market, which is very very internet, you know Penetrated heavy everybody has reached yet QVC is able to do six billion dollars of business annually Right. How did how did how they do it is they you know take use of the TV? Strength obviously, but they also, you know leverage their rich content across various medium speed the you know website or the mobile apps or Anything else like that and we plan to you know leverage all of that in our business as well So clearly you will see in times to come, you know we coming up with a website as well as apps Right in terms of categories. What's really working out for you are what selling more and what isn't I think the trends are fairly in line with What e-commerce experiences so you know we have access to data in snapd and Electronics, you know seems to be the biggest category there and so is the case with us Followed by fashion because that's the category which gives us, you know the highest margins And then comes the home category right so then you know in terms of category expansion because there are opportunities out there as well Because you know in recent times. I've even seen yachts being put up online to be sold But so you know coming from the philosophy that up, you know parent company snapd follows They're selling automobile. They're selling real estate. They're selling everything under the Sun Okay, I think we're going to do pretty much the same So we are already doing insurance for about six months. So we sell mediclaim Okay, we have done electric scooters in the past Soon we're going to come up with you know holiday packages and club memberships and things like that So I think innovation is the name the game and there's been the amount of parity in terms of prices Or for the kind of products that you're selling on an e-commerce site Like a snapd if I'm going to come on the desktop and if I'm going to buy it on television You know e-commerce prices vary a lot that is a lot of dynamism Based on you know what others are selling at what you know sellers are going to offer for very limited inventory If they want to discount and so on and so forth So their prices will will be dynamic But our prices are by and large firm We do not have ability to move them a lot and that is very so our business is not a comparison led business That's one second. I think from the point of view of the average selling price internet does A lot of high value sales as well as a lot of low value low ticket size sales as well So, you know, you can buy a pendrive for 200 bucks. We do not sell products in that range Right It just does not work for us So for us the average or the sweet price point would be about 1500 to 2500 right So if that is the case, uh, uh, you know to be able to grow that kind of market What is the strategy that you're employing to engage more viewership? You know, we have not done any active marketing so far Everything that we communicate to our audience is on our own platform What we have seen is if I have a independence day sale coming up or a, you know, Anyverse that we just had, you know from the launch date or at least the pilot date or Diwali or anything We come up with some offer, okay We communicate on the channel and we see huge response now going outside of this You know, we tried doing some things, but in specific markets We did not see impact because we did only for a short period of time like what? So we launched a campaign in Punjab and Karnataka Right Where we went on TV on print. However, you know, the messaging was, you know, a very simple messaging that we exist Beyond going to say that, you know, we're discounting or you know, this is the proposition that they stand for Things like that Fair enough and this festive season. How has that worked out for you? I have you seen the An upsurge in sales both october and november. So we launched a one month long Diwali sale We offered customers about a crore Worth of prices which were to be one over 30 days and you know, you will have about 20 to 50 guys winning prices That, you know, brought a lot of goodness to us, you know, there is competition You can't take that away and you are a last mover in this kind of space So as far as competition is concerned, how do you think this is actually going to work out for you? Let me answer this differently, okay Pretty much the three large players, Home Shop 18, Shop CJ and Aptol, they've been in the business for five plus years Correct Okay, I don't think barring Aptol to some extent The other two players have seen much growth However, we have been able to gain quite a lot of ground With very basic setup that we have with very basic approach that we have taken in the business So if we start making progress in the kind of product that we bring in and the kind of, you know, brands that we work with In the way we position ourselves and we increase our distribution reach I don't see a reason why we will not overtake, you know, at least two or three players and take the leadership position So that's one Two, um I think the only thing which has worked for, you know, Aptol in this period Is that they have actually worked very hard on, you know, taking their Programming to you at any place that they can find However, in my view That's not a very capital, you know, efficient way of, you know, running business So at some point of time, I think they should feel the heat, you know Other than rather than discounting the products they're spending money on distribution Which which, you know, may not have very very sustainable long-term value Right and since we talked about categories, I also want to ask you in terms of, you know, being able to partner with private labels as well Because the margins over there would be that much higher So is that a good route to take because there are several ways in which you can beat the competition So where is the strategy on that count? Home shopping is all about, you know Quality products yet delivering value private labels play a huge huge role in that Okay, so you're trying to work with a small, uh, you know manufacturer Or an importer who can actually source great quality products at a price which actually makes sense for you as a business And the consumer because, you know, they find value good quality product And they don't have to shell out the money for what they will for established brands So the strategy clearly works now, how do you ensure that, you know, the brand gets established over time? How do you ensure the quality is consistent? How do you ensure? You know, uh, there is no issue in your relationship with the seller and you know, everything works well over time So I think we are working with a couple of guys and we should come out with the cup You know, we should come out with a couple of private labels that we can, you know, establish on our channel So that's an important part of the business that you'd like to grow that in the future without without a doubt, right? Manish, good luck going ahead with The entire network that you've got going for yourself and 10 to 11 months the kind of numbers that we are seeing Seems like there is a lot of promise in it. Thank you indeed for joining us Thank you so much. Thank and with that we'll take a very quick breather here on this edition of the show Lots more coming up on the flip side