 Thank you very much. I hope I'm audible with this column mic. I like moving around. So I requested for the column I care And so the topic When Vikram had in fact and Simon invited me they wanted to talk about this is a top that I have given a few weeks back Also at a different forum But I think the relevance of this talk topic is independent of forum. It's forum agnostic It's very much with concerns. You me everybody who's working to create value concerns Viggy as much as Softbank as much as Raymond as much as any of the FMCG durable companies that you really work for and And I'm calling this entire talks self self-disrupt or perish and not disrupt operation There is reason why I have added a prefix to disrupt saying self disrupt because I Increasingly believe that it's becoming an inevitability Rather than waiting for looking at a trend like a swiggy to happen to restaurant industry or food industry Or a equivalent of what we are seeing in auto aviation hotel industries. I think time has come that Rather than hoping that somebody will come and give us an insight it's important for legacy organizations like ours for sure where I work for or a lot of our Establish corporations that Manoj spoke about will get disrupted to sell disrupt and really not wait and that's the reason I had self but before I really talk about that I Want to talk about perish because in our existing mental model If we see that if we don't sell disrupt and we will perish But if you see perish five our existing mental model It will mean that we'll perish because we are either incompetent or not relatively as competent as a new player Or we don't have the right competitive advantage in our product brand customer experience any of those things or We don't have the size. We don't have scale We don't have digital and that's the reason we should perish If we think perish with that Limited myopic way we will be wrong because we could perish for reasons that are totally and completely out of our control You may have the best brand best size market leadership any scale best digital best platform best business model and yet We can fail we can perish and that's the reason I decided that let's first spend the first quarter of our talk really to Understand what perish really is meaning In the current contextual terms because if you miss that part the disruption will not really Really be understood in the way, you know, we should really look at this entire lens And that's why first perish and then really go into self disrupt that And I'm going to take some examples that you would have heard in many forums You would have talked you would have studied about these you were learnt about it Many forums would have dealt at depth about these problems as to why some of these brands really failed there But my reason of using some of these examples are very very popular example is more or less not about what went wrong But about the definition of what could go possibly wrong and do you really do we as community really understand What could possibly go wrong first example is very Common example all of us have used these brands in our lifestyles not very long back. This was the market leading brand in the world almost in every country it operated And was responsible for two out of three decades of giving mobility to this entire world, which is Nokia. I Know how many people really know Nokia was the pioneer Which really set the ball rolling for what is today wireless technology the terms like T9 Dictionary if you are 20 years back or GSM Which is even today talked about global standards of mobility is what GSM is all these Terms were coined Invented patented coined and given to the world by this company called Nokia Which doesn't exist today in the in the way it really started this is a November 2007 cover of Forbes magazine and Here is the CEO at that point of time called Oli Pekka of Nokia the global CEO and The cover really reads you can read it there It's saying one billion customers and that time they were about one and two and a half billion customers Nokia had about 40% market share and the cover goes on to say can anyone take on the cell phone King So 2007 and it is not that Apple was not born then touch technology was there iPhone was launched in May 2007 the first iPhone was launched in May 2007 Seems like a long time back and this is six months after iPhone coming into the market and becoming the rage it is There is a whole analysis design research done in a global magazine saying yes, there is an iPhone But you know Nokia is Nokia and this is September 2012 This is the CEO Stephen Elop and it says This company got bought by Microsoft and really collapsed in no time, but just less than five years from there You know companies do come and go this these brands do come and go and Nokia kind of a brand with 85% share in India 40 45% global share More than 50% share of operating software, which is Symbian, which is what they used to work on and iOS was not even born at that point of time and with the kind of momentum in innovation pipeline It was very difficult to imagine a company which was thinking 10 15 years ahead of time with that level of brand strength stickiness of the model Premium that customers were ready to pay would have a destruction of over 95% of enterprise value in less than four or five years now one can say it's technology technologies come and go But I don't think it was a failure of technology I was working for Nokia from 2004 5 that I kind of a that that's the era that I was working for them and I was in Finland I recall seeing the innovation pipeline which was About 10 years ahead of time and one of some of the most exciting phones that you could lay your hands on things like they were looking at Very advanced multimedia phones They were looking at bracelets which were becoming phones the ear popping rings very small things Penetrables which were phones all those things that we talked about they had a very exciting lineup of technology. So what goes wrong here? There is a technology Assessment matrix that every single tech company in the world uses to know what is their competitive strength? And that's got now it's called a magic quadrant and magic quadrant has this two by two If you're on the top right would means that every investor bit better on you any amount of funding You can get and you are right there, which is secure position Which is called a star position in a magic quadrant Nokia for 15 years consistently has been on the right hands because of the innovation pipeline the quality the the bets that the world was taking on this company and that company goes bankrupt and The funny thing is not that the really amazing thing what amuses me is this quote This is the quote by the CEO after it was bought and he said we did not do anything wrong But somehow we lost and that's That's a moving statement That tells you that you have the best brand the best people best army all of us kind of if you have a If you were a brand head of a Nokia if you're a media company of a Nokia if you're the creative partner for Nokia any vendor of a Nokia You would really give a right arm for that because it was on the best companies We're working for and that team really reflects back and says we don't really understand what went wrong So there's something about the change that if you pick up on the right time Maybe we can get it right and it's not just one example now I'm gonna run a little fast on the other two examples This is Kodak all of us know the story of Kodak, but this is the man who invented digital photography in the world His name is Steve Sassen. He is the head of R&D of Kodak Kodak is a company Which was 150 years market leader of the 160 it existed in the world It invented photography in the world like Nokia invented mobility So pretty much generic to photography. We all know what Kodak moment really is This is a 1977. I think when the first digital camera was patented by Kodak and Steve Sassen did it It's a patent in his name It's funny story where his daughter wanted to see the photographs of a birthday just five-year-old On the day of the birthday and he said no It'll take us one week to get you the real pictures because it goes for processing and all that stuff It takes you one and she started crying and he felt really bad So he invented Polaroid which gave instant photography and then went on to create a digital camera and from 75 till 92 Every single board meeting of Kodak. This was presented as an alternative innovation To what is the chemicals the roles the selling of the films the processing of the films as instant photography and Every single board meeting to the extent which is documented and I'm sure people who really read this know that it's documented Steve was told not to talk about it. They said it's cute technology, but don't tell anybody about it Why because it challenged every single thing Kodak stood for all the economic model of Kodak 99.9% revenues come from those films and the roles and the Processing so it's virtually saying that okay. I have a innovation Which will make you completely vanish which will make you extinct from the world now Could you as a company take that economic call that whole business call of saying that everything I know do all My company all my infrastructure is gonna go away in the next five years because of this innovation there There's no economic model. We don't even know how to make money there And that's what happens if you don't disrupt us and then something else comes from outside So you can hide you can tell that don't tell anybody about it But if sooner or later people will figure it out and and you will really go from 160 years of market leadership in the next seven years from from there to zero as global market ship These are top companies in the world third company. I talk about quickly before I move on there is a content king of America Used to be erstwhile It's a company called blockbuster and it used to control virtually every content in America whether it's paramount to universal to 20th century Fox to Digital to cable to television It was a content aggregator company and you have to pass through them if you have to really this was a key intermediary there I recall myself being launching a direct-to-homes satellite platform in India at that point of time in 2007 I want an appointment from him. I was traveling to us and it just Proceeding a brick wall because this man was just too busy. He was he was the content king of America So you couldn't really get that at somewhere around that in 2008 Netflix was very early days of Netflix and some of their you know streaming services had started and there was a magazine Which interviewed him in which he made this quote where he said That neither red box nor Netflix are even in the radar screen of competition they're not even the radar screen and Look at the speed at which things can go wrong now You you even know who's there and you say kid. No, I don't even bother about that and then in one year This is December 2009. You go bankrupt You're a CEO of the largest content producing country the biggest industry that happens And you say I don't even think they are in a radar screen and one year you go bankrupt Because of the same competition that you didn't was not in the radar screen there now Is it lack of competence? Is it lack of capability? Is it lack of research? Is it lack of brand equity? Is it lack of size scale age Knowledge base best people working for you. No, you have everything at your disposal and Still they could be an error in in judging the whole business case there So it's it's like I slept perfectly With the mosquito net odomas everything and still one mosquito came bit me and next day morning. I was dead I'd never woke up Yeah, how can you be so ignorant or are you really ignorant? Is it a human? Is it a competence issue is something which is beyond this and it's not just that People who disrupt this is Netflix 10 years of market leadership and In no time Here comes Apple TV Disney two months back in the world and the whole value gets destroyed So yes, you can have a ride and Then in no time that also goes away. So what's happening in this world? Where are we living? What kind of brand competitiveness? We are investing in advertising sales one year Forecasts we're living in this world. We're making future bets and these things are happening to the best of the brands there So there must be something deeper that we must reflect upon as a team and it one could argue They're all technology brands, but is it technology? This Baba has no technology to stock about he's disrupted every single multinational in this country Went back again is now servicing again to disrupt and probably the Baba dot 2.0 Patanjali or 2.0 will happen So this this We talked about Swiggy. What about auto talk about this what's happening in auto industry industry after industry Things are happening. We really I have seen from and you all have observed in the last one year since the auto store down Every possible insight has been thrown by every champion of the industry Somebody says it's because of shared cap Uber and Ola that industry is falling somebody says BS6 standard somebody says, no, no generally slow down. Hey, because Discretionary income has gone people are differing their purchase. So it's an economic slowdown. It's a BS4 standard Is it electrical auto happening? Is it this happening or all of them coming together? It's a compounding impact Now if as a champion of the industry if you're looking at taking this industry to growth Well, how will you take a decision? What's the right reason? So what's going on? Leader for decades are just going away and people were born yesterday are becoming leaders global brands Indian brands So what does age mean of a brand? When you can 150 of years of leadership can go away in one or two years size Reputation current sales brand equity IP technology people everything can be bought everything and be high Despite buying everything you can just lose out So it none of this guarantees our existence tomorrow and I'm gonna come back a little later about things like corona It just Bought off a call in the afternoon today with the head of catfish Pacific in India They're a horror story as to what's happening because I wanted to because we are dependent on China for our shipments so there are cargoes stuck there and For something that is completely out of your control you'll have to now worry about the whole global supply chain Really getting disrupted. Yeah, and I'm gonna talk about it a little later But look at this so the point I was making is Sony Walkman disrupted every possible two-in-one in 80s As we all know 80s that was the thing And then themselves got disrupted by digital music So constantly one has to be on the wheel of thinking. What is the next big thing? It's not the product It's not product innovation. There has to be business model. No, it's just not the business model There's a technology. Maybe not. Maybe something else is also coming in there So it's a very different kind of a chain that we are seeing and we must understand what's happening I'm gonna talk about it because we are living in the age where a billion dollar valuation gets made in in actually days now not even months and Earlier it used to be the average company used to make a billion dollar in 2000 2005 if you see only 15 years back it used to take a good company would be take about 13 years If you take the top S&P 500 companies in the world, they would take a billion dollar the best companies would do it in 13 years All these companies snapchat Airbnb. What's up? I have done it under two years There's a company which is an electric car company called bird. I don't know how many of you heard has done it in five months There was Pokemon go which game got launched about two years. It did four billion dollar valuation in four weeks billion dollar a week Raymond did billion dollars in 92 years and we celebrated with a champagne and a cake and people are doing it in a week now So you can understand which world I believe in we should celebrate it because it's a big thing to be a billion dollar valuation company And people are just doing is look at swiggy. I don't know how many billion dollars would be vex company is I think maybe 10 15 20 billion dollars So there are there is a economic imperative that is happening and we must understand where the change is really going there Yeah, look at all these companies. They're disrupted completely the industry So what's really happening and then I'll come to how do we really? Embrace this perishable thing one other thing that is to be really understood if only one thing you take about perish is really this Our mental models Our organizations have been geared up for a linear change. We are brilliant at linear change We understand we get educated to trained to execute linear change models So tell us that okay, this year is 10 percent growth. Let's grow by 30 percent. We know how to do it We know exactly how to do it. This is the kind of additional resource. I need I need more share of voice I need better awareness. I need additional advertising investment. I need more infrastructure Let's say Raymond does one million or four million jackets a year Which is what we're doing right now and I looked at the number who's the highest jacket maker in the world is seven million So somebody said why can't you be the largest? Jacket maker or suit maker in the world So linear mental model will tell you okay four million and Punch factory a team factory or to a million key at least for me to reach from four to seven That's what I need to do. So let's set up infrastructure. Let's invest in plants Let's create more factories in the cheapest locations of the mind works like that So we're very good at that so if you tell that okay There is a X kind of a growth X kind of a RO return on investment. That's how you get rewarded all of us get All performance management system whole logic really works on that but the moment we get into compounding logic Which is the way change is happening right now Human cognitive sense is not able to grab it It's it totally goes It's like saying that if I have to take 30 steps and I take this example every time It was easy to comprehend from here and I walk towards you and I just take 30 steps one two three four thirty linear steps towards you 95% of people in this room would be 95% probability right that where I would be at the end Maybe I'll be towards the end of the room Maybe just three fourth of the room is what my typical step would take me to but if I change this whole Remise to saying I take 30 double steps are not linear steps The first step is one the second is two the third is four So one two four eight and if I ask the question, where would I be at the end of 30 double steps? 99.9% people in fact 100% people are likely to get it wrong Because human mind cannot work the compounding logic and just the answer is that I would have traveled 26 times across the world In 30 double steps. Yeah, 30 single steps takes me there 30 double step 26 times across the world Which means the 31st double time double step would be 52 times across the world That's what it really means and that's the pace with which the change is happening and there is something about that and this is industry after industry What is happening is the moment? We're putting information technology Into the proposition of any industry the rate of change doubles every nine to twelve months And that's the whole conundrum about compounding logic, which we are unable to grasp and that totally changes the auto industry All the dots start joining together any industry we take hotel auto aviation voice data Content that's what is the pace of change is doubling every nine to twelve months And we're just not able to grasp how quickly things can just go wrong a lot of predictions that Manoj was saying will take five years I think we'll take probably some of them will take probably two years maybe one year Similarly what Sam was talking about digital I think the journey from 23 to 50 percent for digital in India will happen in next three years not in next ten years Or maybe two and a half years That's the doubling pattern that we will really observe and the why the mind really misses it out Why does a mind misses it out because? Every single industry which get digitized goes through these phases necessarily Three phases in sequence and three phases almost parallely will happen Almost every single thing in the world will get digitized in our lifetimes. That's the given everything from this clothes to Headphones to music to data already half the things are if you see voices digitized music is digitized Content is digitized half the things are look at what your phone is carrying today The amount of 20 Specific applications were all physical separate things about ten years back. Everything is what digitized every single thing in the world We'll get water will get digitized air will get everything will get digitized and anything which get digitized It's very deceptive Because it's looks ugly to start with it looks big that digital camera and it's slow because the first step linear step is only Point zero one if the first 3d manufacturing machine made in 1975 It will take time and then the second step from point zero zero one becomes point zero zero two point zero zero four And by then yours and my career are over when it reaches one because it's 30 years So we tend to ignore it, but the moment it touches one One to her 100 happens in the next five years one two four eight sixteen thirty two sixty four and then it just starts Galloping and that's where it gets you into a very so every digital technology is very deceptive very deceptive to start with And that's where we don't know should we shouldn't we should we bet on it? Time and I'm a 3d manufacturing cone leg a 3d couple it's a print card for the panega One tiny guy to my anger cry But then if the price performance doubling if you can put it in back in your business Then pretty much you can come to an accurate forecast between five or ten years or even less of horizon Because once it gets there it gets disruptive How can a country which had less than 5% telly density 15 years back be almost 100% telly density today? It is not linear. It's compounding and the moment it gets disruptive because it is digital It gets demon every single thing get dematerialized. So My sense is that in the next five seven at best ten years Every single screen that we are currently interfacing with with delt dematerialized. So there won't be any screens in our life everything will come into some other form of Neocortex somewhere they will inject or there will be things the way Screens will just disappear from our life, but still we'll see everything we want to see yeah So that that's what is going to happen and once it get demilitarized There's no cost because physically near the physically cost in your local time demonetized in the positive sense of demonetization Yeah, it just there's no because there is no cost to it everything has to become free So voice which used to be such an expensive proposition very incoming also used to pay And I think they've already come to a time where you will get paid to speak more It'll be the other way around because you're to burn that that whole digital economy and The moment it get demonetized it get democratized Everybody uses because free It's not too far away that everything in the world that you and I consume today or 70 80% things we consume Physically today will be free to consume in 10 years from now Yeah, there won't be any shortage of any of these things that we talk about Now I'm not saying that world will not have world will have more water more health more food more environmental more energy than you And I can imagine it's a given Because everything will get digital. Yeah, we already talking about people are winning elections on 24 hour electricity I think it's passé think about an example in Germany, which is us two years back in Christmas Where the government said if before you go to Christmas leave Please switch on all the lights of your house Switch on your television keep everything on Because when you come back you have a surprise dollar check waiting for you or Euro check waiting for you Because they had so much of energy that the cost of storing that energy was more than cost of burning it That's the word. So you're gonna get paid to use that the next promise probably Modi will make the batij allow or Because that's the that's the power Every single resource in the world hydro coal Anything you think about wind all this every single natural resource in the world from where you can make energy If you put together the whole planet is less than five days of solar Five days the solar a full capture Kali Arthne is more energy than every single source that you and I know oil coal everything put together It's a matter of time that we'll get to that ability and we say 25 years is what scientists predict 25 years from now a lot of you will be 45 50 So five days of capture we will not know how many planets will light up and what do we do with so much of energy? Oil economy is going to run out in less than 10 years Stone age ended not because stone ran out Oil will end not because oil will run out oil will be there But oil economy will run out that's a matter of time there every single thing will be there The the the problem that we need to see a statesman is are we going to be able to get the Polarization which is happening in incomes to consume wealth Whether it's going to be a have-nots and haves or whether it's going to be haves and super haves That's going to be the rail conundrum for the political Now this is imagine my plight as a CEO of a company which sees this It's a Bloomberg article Which comes and said death of clothing So you're talking about a company which only has 13 manufacturing plants which I Oversee in my team with my teams there I have 35,000 people who really work in those plants day in day out the work for their lifetime and they turn out so much of cloth and Then imagine this article come and sing death of clothing. Yes, obviously. It's a very worrisome thing and saying Okay, is this also gonna get digitized at some point of time and I actually believe it is it's a matter of time This is a digital dress which was launched in US last year. It's not very long for back It obviously is like a Steve Sasson camera takes time very deceptive. It looks very Conversome, but here is a naked lady or just in she's not she's just wearing a digital skin There's no fabric on a body. It could I would not be surprised that this is a 14th pitch Madison in 20th 90% of us are wearing digital skin Nobody has a fabric on their body and Then you decide what is the fashion in the room? We change by the session module. Okay, I like yellow color. Okay Here's a speaker likes yellow. Let's all turn to yellow. He likes yellow So we just remote control it and all of you turn to yellow or you say, okay I've got a tattoo yesterday. Show me you just do this and this and this is a tattoo and then it goes back So it it gives so much of options there. This is a reality. This digital dress is already there It's about 10,000 pounds today or euros today Apparently if I do the price performance doubling ratio in about five seven years, it'll be less than hundred dollars So you can walk into a store or just download download online mobile and say today I want to wear this dress digitally and the digital skin takes you over and you decide the design look at the flexibility You you can never be wrongly dressed. You can never be wrongly dressed. You can go to any party and decide Oh, this was a theme fine. Let me do that. Just change the app and that's about it This is gonna happen. So market power velocity is being decided by so if we are in the business if for creating demand You're spending more money. We're in the wrong business Yeah, marginal cost of supply and marginal cost of demand has to come down every single year by digitization And if you're not able to do that, I don't think we are really creating Big brands and I think Swiggy was a great example. I just love the way we make set it up in a very short time Now very quickly on self-disrupt. So what can we do in this environment if that is what is perishing if my brand Strength doesn't stand for anything my spends my advertising my media My distribution if all of that can get disrupted How do I really work? What do we really do? So these are just some views obviously There's no right or wrong because we had to really get into that But a few views that I wanted to share very quickly and then I'll just end my talk There are just three vectors on which I would like to engage with you the first one is I think it's been said enough But never has been a more important time for us to embrace this is to say Envision the purpose why we are there not the business model why we are there not the products the purpose why we are there And I'll just give you a couple of examples to enumerate that We are living in a world where everything changes you wake up to a world Which is a new world every single day time is getting compressed. We already know about geopolitics climate issues I don't want to get into that but disruptive startups via networks They're talking about horizontal organization digital sharing world all of us know that Probably five years back none of these faces would have made it even to a magazine forget about the global cover of the magazine Corona at the center is is obviously changing the whole world right now It's just like somebody was telling me just in the morning today when I was talking That the largest pharmaceutical companies we thought would be rejoicing because there is a this is the pandemic Right now is good for some industries like war is a good commerce for some industries health is also a good commerce for pharma So talking to somebody and he said actually, you know what? 70 percent of bulk which goes into making medicines for India pharma industry comes from China And they have less than one week of stock There's a whole disruption which has happened So there is a pharmaceutical industry reeling under stress right now They should actually be saying oh everybody's coughing this there is threat preventive medicine. Here comes a big opportunity My chairman asked me last one week. He's been pondering. He's saying oh god. China is closed China's 40 percent of global trade of textile What about our factories? Let's flush them out. Let's work three shifts fully. Let's get orders because last Five weeks China has not dispatched a single container on textile because three weeks Anyway, Chinese New Year and after that two weeks now and yes today morning We've got to know it's still 20th February. They have deferred every manufacturing And when I was speaking in the morning to some Chinese counterpart, they're saying end May early June is the earliest to expect things to start coming back to normal Four months 18 percent of global GDP 40 percent of traded GDP comes to a halt. What happens to the I'm saying there's no way we can come out of this six percent. It would be a Marvelous achievement for Indian economy if it reaches that my sense is it'll be flat to decline now So how do you really brave up to this world? Look at this. I mean just take it look at Iran What happened there is nuclear warfare there is bio warfare there Floods look at the kind of fire in Australia Can't even control. We have the best technology in the world Very advanced stages with 21st century We can't put off a fire in a forest and it just goes on and on and on and on And so many animals die so many species go extinct Something is happening in this world that we need to just get the pulse off The first time the person of the year is not a person two years back, but a movement called hashtag me too And not only that a year after that person of the year is actually a 17 year old kid Who does a hunger strike outside sitting on a school and saying I don't want to go to school What's the point because I'm going to die because of environment And she goes on to actually become a nominee for normal peace price Which I believe it was good that was given to somebody else But having said that I may have a different perspective But maybe she was a deserved nominee and goes on anyway to become the person of the year in terms of Times cover So it's a very different world that we're living in today. So what is this purpose? I'm talking about The purpose I talk about is Is really just think about now the same board meeting I talked about Kodak 1991 They said come on Steve our business is All this we make money out of this. This is all the revenue profitability skill level people Ten thousand labs it's like Starbucks Ko bale coffee ni kuchor denge to get you think you can get coffee beans make her chai farmers I'm vendors shops retail stuff. No, but those are those are the people coffee being a man Dengie to a big kuchor karte look at that dilemma that the business and management team is going to have now What does the purpose mean for Kodak Kodak thought they were in the business of this where Now looking hindsight The business of Kodak was to preserve moments. That's all What does photography mean that you just preserve that moment which you don't want to let go because you want to see it later You want to refer to that moment later. So just preserve it in your camera Now think of the business meeting and saying we as a team Kodak are in the business of preserving moment That's what we have done from 1831 when photography was invented in the world till date. We only preserved moment Forget about the method of doing it. How does it matter camera silly or digital silly? Polaroid silly Insta silly a kaffir But our our business here and we'll figure out how to make money out of that But they thought this is their purpose. But actually the purpose was that so you go wrong So we need to understand for our brand. What is the purpose if the purpose is to Make you look beautiful grooming Then how does it matter whether it's application of a cream injectable digital looking standing in front of us Some mirror and that making you beautiful should not matter But we make that matter far more than the real purpose there. So that's one example And it's not important that we get the purpose right and we get it always right We can have the purpose right like Nokia Nokia's purpose is beautiful. I think it was always I was very proud of this line when I was there and I could see that the purpose was connecting people. That's all matters It doesn't really matter whether we need to do it through multimedia phones Or we need to do touch screen or we need to do quality keyboards How does it matter and then you get stuck because you think your purpose is this So you can have the statement right or the philosophy right, but execution wrong Their execution was wrong. So it could be either way That's the important thing to understand. So we at Raymond started actually really Interespecting saying what is our purpose and we are trying to architect now And I'm going to give you a couple of examples before I on Raymond. So we understand where we're going So so we need to really understand from Our purpose and really move into this from left to right your left to right And there is very said only two questions to be answered for every brand. Who are we? And why do we exist? Who are we? We are a company called whatever brand which is into capturing moments. Why do we exist to preserve those moments? That's why we exist. That's correct. There's nothing else And as long as that is there, how does it matter whichever platform does it? So we try to do it for Raymond and we're not perfect at it, but we're getting there We said, okay, the stage currently we are we are a company which gives you wardrobe solution menswear menswear wardrobe solution Jackets, wood, shirts belts, that's what we are And why do we exist to make you look good? Otherwise, why will you buy us? Because when you pick up that stuff from wardrobe and you wear it, you look confident You look good. So that's why we exist And from there, maybe it needs to evolve to a little more from a functional to a little more experiential So we will be why do we we are a lifestyle experience company who wants to make you to feel good and not just look good So that's kind of our purpose there. The second point I want to make is this is the first thing all the brands must do That is my view second digitized value chain you have it's an existential thing It's no more Digital in business is gone digital is business Every single thing will get digitized your supply chains your products your saucy Your work frame your work everything has gone and get digitized And and it's important to really understand what kind of impact it could happen. And how do you do that? Very simple I'm coming to the 6d model Pick up every node of the value chain that you work for and put digital in everything theoretically Then see what could happen everything can get really disruptive and destroyed So that's how really you do that and there are many many many technologies that can change the whole trajectory there Yeah, this is just a very brief part of the textile value chain In which these are the emerging technology and digital platforms which have started impacting Every global company in the world and I'm not talking about all of them But let me give you some example two or three of them which in raiment We have started working and how it can totally change the way all of us cloth ourselves We are also doing it. We know there are many other people outside this room are doing it There are many of our competitors are doing it. So everybody's into it. Now whosoever gets it fast And right will will really be the winner. Let me give you one example Just to bring on the point how this could completely change the dimensional mindset We making accessories, yeah, this is like the cufflinks and Tie pins and those kind of lapel pins all these things we make and we're looking at Can a 3d printer Make it so we just put a design and it comes chuck We just put the whatever is the editor and raw material and it comes whichever design I put in the software Can it come and we started working on this about two years back with some of the 3d manufacturers and today we have it commercial They might as long should commercially Now a typical 3d accessory if I have to go and let's say I have to buy 1000 type pins 10,000 this and it takes about 75 days prior order because Conventional thing about any metal thing is injection molding So you make a task and you put that thing and you keep a mold then once the mold is ready You can make as many and the mold itself takes 30 to 60 days and then the production time From china and then the shipment time to india to take so if I have to plan let's say for new years or valentine day Yeah, I have to say okay. I need to give these beautiful rows flat lapels Or baselets or whatever. I have to decide I should have decided in the conventional supply chain About a valentine day commerce opportunity seven six months in advance Yeah, and then everything would have fallen in place and I would have done distribution I would have perfect With 3d printed you can just decide 10 days before Because nothing is required everything is digitized You just buy the raw metal put it in there and you don't need a minimum order quantity. You can make one. You don't need a mold So when I am now in remand when I go to a music concert I wear a music lapel when I go to sports concert I play the sports one and when I'm going to aviation event I can wear a aeroplane there and it's just one made only for me And it's cheaper Then because all the dematerialized cost is gone. So physicality is talking inventory interest on inventory shipment. Everything is gone It's far cheaper. So you buy that brilliant lapel pin 10,000 rupees. You get a 3d printed customized to your name We have requests coming from couples young couples who are coming there and saying I want to do uh bracelet gift to my Boyfriend or fiasse Which is matching with the wavelength of the birth time that he was born. What was the ecological wavelength? So we used to be I can extract that on our software And we can convert the design and make the bracelet and that's a Very you know kind of an intimate kind of a gift or a very passionate gift to be given to somebody So these kind of requests have started coming. They're really crazy And you can charge any amount of premium for these things because you just make one and you can charge a huge Premium for that you can deliver in 10 days right at your doorstep anything just draw design We're going to deli tomorrow. We are hosting a dinner. Mr. Singhanya is hosting a dinner for 350 people all the royal families of india We have taken the family albums of royal families of rajasthan and up and these are all royal family albums And we have converted them into 3d printed gift items. So it's very very pretty in terms of actual metal with this So all the maharajas are going to wear that specific thing there So you can just get it done. You don't need a mold and all those old days are gone That's changing the conventional thinking there. There's another point. I want to make here This is another example of how things can go very disruptive We set up the largest boosted plant in the world largest Blended wool production plant in the world in 2005 to a agreement set it up in vapi It's about 150 kilometers from here At an investment of thousand crores That has let's say x output of fabric every year There's a technology that we have come across in the last four years Three years now we've started working with that thing Where and this factory was set up. This is the actual picture of vapi factory, which is 100 acre land Yeah, this is in vapi when you go it's on the left side when you drive towards surat. You'll find that We have a technology now. It's just one machine in 10 by 10 It's less than this space is half of this stage space which can produce 50 percent of that output at 5 percent of the cost $2 million Can you imagine the cost of a jacket this jacket if it is 10,000 rupees will become 500 rupees It's close to demonetization And if it's 500 rupees, why can't all of us wear it? Everybody can wear it. It's democratization of that Yeah, this is where things can go and this is obviously currently it's a little ugly And I tell you this is not very ugly. I sent when I got to know this is a manchester Picture, this is a factory. This is a jewish couple from israel doing it in manchester They're already sending it to hospitals of aprons and everything functional dressing has already started And this is the early years of digital photography. I would say this is the early 90s and 2003 it was all disrupted That's where it is I send the head of my technology and head of my manufacturing both of them and both of them are like 55 year old hard coded legacy 40 year rehmann 40 year industry experts Who would be naysayers of these kind of technology think yeah, the clothes are in your hands Those people to manchester they went like 55 year old. They came like 15 year old kids So excited and saying sanjay if you don't really embrace this We probably will be irrelevant in the next five years. We have to take this and we will better it because we know how to better it Yeah, so it's like that kind of excitement some new technologies are giving us five percent of cost moq is one So you don't need to make for me the minimum order quantity thousand meter Then I will put it in the loom and I will weave it and I will make a jacket for you Here you can make one jacket Who is 3d printed I can just put a design and it just comes out Jacket for you is different The lining can be different. It's just done to you. It's your face your picture your family's picture Whatever can be done there and so on and so forth App-based customization. This is what we have already these are all commercial technologies in rehmann the early stages Maybe two five years away, but it's like design it yourself So you put your color your shirt you already seen some of the application bombisher company does a reasonably reasonably Okay job, I would say but can get better So some of these trials are happening. This is a thing that we've also launched here is shoe the shoe that I'm making The currently I'm wearing is actually done completely digitally You just go there your design you play around with the kid. It's a 10 minute fun game Whatever time you want to spend every design becomes an archive Your design becomes an archive for the next person who walks into the machine to see it And you can change shoelace to tip toe to the sole to anything you can change play around with it It gets done and given to you So this is what is happening Uh across the personalized offers there and not taking you through each of the innovation that we are doing But this is another interesting one which we are currently working on a matter of time that we've implemented We we're in the beta stage of testing this right now So we base looking at a technology, which if you just Stand in front of a phone and take your selfie Equivalent of a selfie a little more than selfie But let's say take a selfie and two selfies one straight face and one side We should be able to tell your body measurements Yeah, this is a technology, which is this is a japanese Application which got launched two three years back. This is a us application and we are working with the With japanese and us people and we are also looking at indian bodies and we are developing some things within reyman also there And if you do that And which i believe will happen very soon The whole measurement of bodies will go away and that what does that mean? That actually has very profound meaning in the world All of us wear shirts and trousers of a certain size at least the men are wearing and we're not customized We just pick up 38 size 40 size 42 size whatever it is My sense is in the next three years Sizing of clothes will be dead in the world. There won't be any size They will be sam size different and vikram size different and sanjay size We may be wearing 42 both of us today, but vikrams is actually 41.3 and may be 42.6 So why should we he compromise? Why should i compromise? He should wear his size I should wear plus he likes to put his initials on his cuff So he should get his coupling by his initials. He likes a button in a certain way Which would be done in that way Why should he compromise and say 90 percent he kept thought about children and all this is going to go away Every single thing can get customized now and that's what is happening two pictures And that's it and we can get your body on to our and once the body is in a bank It totally changes how i can market it. I can actually do swinging on you the way it was done Saying you're not calm and what happened and you know you can really do the customer This is really how you get measured. This was a little cumbersome way of doing it, but it's getting better And if if these people have been doing it for donkeys year it looks like ages it's like All of us use netflix when we go is saying sanjay 98 percent match your thing your favorites first They may have a million things in the library But you have shown only 20 which matter to you including saying this is likely to work for you This is a 90 percent match with your kind of a taste. They've been doing for air. Why can't we do it? So I know exactly because clothing habits are very personal We know exactly what jacket you buy what kind of stuff you want the white shirt people buy white shirts in bulk Some people so if there is a new white shirt collection, why shouldn't I tell you this is a new white collection? So I can actually start recommending you what rose so those kind of things there Contact let's check check out is already part and parcel of the game there So these are some technologies which are happening But I want to leave you with this is that these are the six specific pillars on which we are In remand have taken it and we are trying to see if there could be a disruption that we can bring to ourselves Advisory changing the whole model to rental My sense is that lentil is going to come very very quickly in India from their customization Of course, which is digital customization digital body measurements 3d printing and of course sustainability which you don't have any way out The only point I want to read leave out here is that Because it is so crucial and it It challenges conventional thinking and conventional profitability and business model It's very tough decision to take and because it is a tough decision to take It's best that we should not mix it with core business. So if you are business people here, you should keep it a little outside And The second mistake we normally make this is again my learning here is that in a large company legacy companies we have a lot of advertising budgets big budgets we have And typically these startup kind of a thing. They're starved. So for us. It's saying I'm look could he currently take a punch for advertising level. Maybe advertising is a solution. Maybe Thus those look or dollar low. Maybe additional resource is a solution people But that's the biggest mistake cash And investment is not shortcut to success. That's actually the worst way to success ideation is and we tend to over resource it Because we are large companies. We should starve the edge I may have 250 crores of advertising money for the conventional core business But for here, I will make him pay for every penny I must starve the edge. Otherwise, that's the second mistake we make. So that's another very important thing and it must be This is a very important thing has to be seen by the ceo and the owner of the company Otherwise, it will not happen because normal people who are in the management will not take this decision It's a very difficult decision to say. I'm challenging your conventional business model next year 40% revenue down 60% profit gone Where is the money going to come from? It's not going to happen. Cell disruption means that so here in your picture If you see all the technologies, that's the vr technology. This is the 3d printing technology. This is mr. Singhanya This is me In some of the pictures there that's the president apparel there some of the digital technologies We're looking at how do we don't we're looking at virtual trial rooms So you never have to go to a trial room You just stand in the front of a mirror and just keep doing this and the dress keeps doing so taking away the trial rooms from our shops and This is another example. I was in Spain about In in not very long back. I think uh, june or july Last year and this is a shoe that i'm trying to make this is a founder of a company This is an iphone and all he does is he makes me put my feet on top of a paper Which I can do it sitting at home here And just click a picture like that one picture And one picture like that and it takes it takes 10 seconds to take two pictures in an iphone on a plain piece of paper with your feet and a foot Every the shoe comes like perfectly fitted that you would not want the shoe out of your like ever for the feet ever So beautifully done because I don't know how many people really know but 75 percent of humanity Does not have two feet of the same size But you wear the same size shoe That's why every time you buy a shoe egg path or a chuppaya, but the other takeaway That's the nature of leather or any shoe there. Yeah, you get your feet. Just say but why should you do compromise? This actually makes two shoes of different sizes the actual size of your feet You don't need to compromise. So that's the kind of technologies there The last point I want to leave here is brand orbits. It's a very important thing for brand marketers here That the conventional marketing models are passe or will soon become irrelevant And this is the orbit really means ongoing relationships beyond individual transactions Could we as brand custodians go beyond? Have the shared purpose and once we have a shared purpose. Let's not worry about the business model Let's go beyond individual transactions And the whole point about there is that till now till today most of us including me Have really built relationships to drive transactions. So we have CRM packages loyalty programs all these shoppers stop loyalty jet airways loyalty So you're my customer. Let me build a transaction. You're a premium customer. You're a platinum customer. You go there I'll give you a lounge access this that all that is Building relationships to drive transactions so that I know why should I get a free juice at a lounge? Because I'll take the next flight with jet or whatever airlines. That's why I haven't given But now the whole philosophy has to change to say embed transactions in relationships Not the the way around. This is a complete circle change And what it really means is that you already have customers that red dot is your customer of a brand But there is a community. There is orbiters there There are their friends their families their influencer their communities in social media sitting Now if I know that sam is a raiment Advocate now he has a community. He has orbiters around him How do I embed raiment as a brand and purpose of my brand in his relationships? That's the new marketing philosophy which is coming and every trillion dollar company which has reached Understood and decoded this 10 years back And they've been doing it Beautifully by design look at apple Apple started with iPod and then got you to do apple pay they put itunes in that they cut on the wall They're putting now various other things there. They're just going and they're giving you the charges Which are there everything which is within the ecosystem they're embedding Relationships and they're using orbiters to go there. So look at amazon From kindle to prime to amazon.com. It really doesn't matter. What is the purpose amazon is not a book company Not a digital platform not a e-commerce company. We are a platform And in platform you are a and what is my purpose on the platform? You're the consumer and let's look at the relationships there So that's what people have been doing. The value is going to shift. This is zero value today Content this is almost marginal value real value sits here in in fact not even platform Now ecosystems which is the next future of building businesses in the next decade will be ecosystems Tesla has made more value in the last five years than gm has done in 120 years because not because there's got a better car Not because it's electric Well, it's a platform because the ecosystem which is the future and so gm gm is also started working in electric car But it's a very different way gio Have you ever heard mr. Mukesh Ambani ever say gio is a telephone company or a mobile company not once You see gio is a way of life gio is a platform Gio commerce gio this gio content gio this they're buying studios They're buying this because they retail and they're making access there So that's a very different kind of that's the platform and that's why they're valued at what they are They're saying that if gio has an ipo today the whole stock market capital market will dry out And that's why it may actually wait out because the whole money it will suck in and there won't be any equity capital left in this country Yeah, so we're also looking at some kind of an ecosystem as to how we can build so we've been working At the back end creating tailoring hubs online tailoring digital body measurements Clusters of khadis across the country. We have an outreach program to 100,000 tailors in the country Which we've reached about modest 30 40,000 So we're not we're far away from our target, but we're looking at some of these things that will come These are the last two slides there This has to be the future of brand from Actually asking your brand to say what will I get if I use you So this is what we want our customers to say if I use your brand what will I get out of this That has to change and it has to go to narrative from story. It'll be who will I be Who will I be if I belong to your brand? So it's relationship with the purpose of the brand not the product and if we can take our brands there We'll have a huge huge hit there Yeah, so these are the three things I wanted to leave and the big thing the The the exciting part is You and I have born into this world and getting into this decade where we've seen only 1% of disruption yet It's going to double one two four eight again that for 26 times around the world is yet to happen Because in the world there are only 11 billion connected devices 7 billion population 11 billion This 11 billion will become a trillion in tax year in 10 years trillion devices will be connected Trillion devices are 99 percent of sensors digital is in the next 10 years So from 11 billion to 1 trillion is 99 percent So the pace of change what you have seen in the last two years in two months will happen in two days from here on Today was the slowest day on this planet Let's accept it. Yeah, there wouldn't be ever a slower day than today now going forward And that's the new global number system there is jeb Bezos again one of the Many idols I personally have and I always end by the jeff or steve or somebody these that I really get inspired by But so beautifully put this is the only reality you have to keep evolving and the greatest danger In time of turbulence is never the turbulence It's to act with yesterday's logic or today's logic It's not the turbulence turbulence. We can manage. I think swiggy is a great case study I'm saying how does it matter five percent seven percent eight percent ten percent? But yesterday's logic say And that's to act with yesterday's logic there. Thank you very much