How Meesho is Killing Amazon & Flipkart with Intensive Marketing Strategies & Business Model
To stand alone in the market, businesses try to make unique marketing strategies and approaches in the market. Now, if you are willing to do something different as compared to your competitors then, innovation and some uniqueness are very important.
A proper marketing strategy helps the business to stay in sync with its customer base, develop the right products for all customers, and then determine how you communicate information about those products. Similarly, the marketing strategies of Meesho are quite unique and innovative as compared to other competitors of the company.
| 1 | Type | Personal |
| 2 | Established | (Dec 2015 ; 7 years ago ) |
| 3 | the headquarters | Bangalore , India |
| 4 | Area served | India |
| 5 | founded by | Vidit Atreya Sanjeev Baranwal |
| 6 | key people | Vidit Atreya ( CEO ) Sanjeev Baranwal ( CTO ) |
| 7 | Industry | Information Technology |
| 8 | Employee | 750+ |
| 9 | website | meesho.com |
If a business does not have a defined marketing strategy then they will not know who their target customers are, and they cannot develop the right products, and as a result, will be marketing the products to the wrong people which will result in loss.
Similarly, the marketing strategies used by Meesho have attracted lots of customers and that is one of the reasons why they have a huge customer base today. Now, further in this article, we will talk about the marketing strategies of Meesho, whether will Meesho overtake Amazon, will Meesho become profitable, and many more.
How Meesho is Killing Amazon and Flipkart?
You will surely not believe but, but Meesho is actually beating multi-billionaire e-commerce websites or companies like Amazon and Flipkart. It could be the very first time for Meesho, which is an e-commerce website or company that will be becoming a profitable business leaving behind some of the greatest players like Amazon and Flipkart.
In today’s Indian e-commerce market, there are no companies that are running profitable including Amazon and Flipkart. Now, this is quite interesting and exciting news how come some of the biggest players in the market like Amazon and Flipkart cannot earn high profit margins in India?
Meesho was launched in the market back in 2015 and they have not even completed a decade. They have already come into the correct line of profitable business and some sources have claimed that Meesho will earn enormous profits this year. There are three major reasons why big players like Amazon and Flipkart cannot earn profit margins. The three points are given below:-
Commission
When an order is placed on such big e-commerce companies they charge a big amount of commission from the sellers. You will not believe but 20-30% of commissions are changed by Amazon and Flipkart to fulfil the order of the seller.
On the other hand, Meesho has always stuck to its 0% commission. Now, this will automatically create a word-of-mouth in the market. This creates an impactful network effect and this has been happening with Meesho. This is how Meesho has gained so many sellers and naturally has gained so many buyers.
Ads
Meesho has an alternative source of revenue which is ads. Although Meesho does not charge a commission from sellers, they ask sellers to advertise using banner ads, native ads, add product listings, and many more. In this source, Meesho does not require any capital, instead, all of these are tech-based.
This has become one of the most powerful sources of Meesho and this will make them a highly profitable business in India. Meesho is not dependent on commission and they have an independent advertising revenue option.
Delivery Network
When Meesho was launched back in 2015, the delivery system planned by the company was highly focused. This company had already planned not to tie up with any other delivery companies instead, we will deliver all the products from our platform only.
On the other hand, Amazon and Flipkart had to tie up with other delivery networks and they are still tied up with them to date. This is where Amazon and Flipkart are further giving out commissions to these delivery channels.
Can Meesho Overtake Amazon?
The marketing strategies being used by Meesho seem like it will overtake Amazon very easily. Interestingly, Meesho did overtake Amazon to win the second spot in the very first week of the festive season sales, posting bigger order volumes.
This happened back in 2022. The sales were helped from September 22-30 of 2022. The analysts at Redseer revealed that the average order value at Meesho was smaller than Amazon, still, it did a great job in taking the second spot. It played a significant role in the overall gross merchandise value.
The total GMV (Gross Merchandise Value) hit $5.7 billion in a week, it was a rise of 27% over the same period last year. Other than this, nearly 50% of shoppers opted for cash on delivery, lower than 58% in 2019. Moreover, these figures prove that Meesho can overtake Amazon and any other big players in the market very easily.
Can Meesho Become Profitable?
The current success of this company proves that they always had a futuristic plan since the beginning. In order to earn sustainable profitability Meesho reduced its workforce by 15 per cent. Now, this affected 251 employees who were working in the company.
Vidit, the founder of Meesho told that cash burns had gone down by more than 90% in the previous year and Meesho is now a quarter or two away from its huge profitability. Other than this, the venture will also look at a listing once they are profitable.
This year, the marketplace of Meesho will continue to scale, it will help the company to retain its current identity while more accurately reflecting its recent growth and scale. Currently, Meesho has 140 million annual transaction users, 1.1 million sellers, and 100 million active products.
Meesho Marketing Strategies & Famous Campaigns
Here are the marketing strategies used by Meesho:-
Target Marketing
Ever since Meesho was established in the market they are running a targeted campaign for women. Meesho has even created a niche for their business. This company aims to give all the women a business chance at home to empower them. Women can easily start their own businesses without having to spend much money or effort.
My Store My Story
Meesho has a tv commercial which is MyStoreMyStory, which features an empowerment plot that appeals to the brand’s target audience. This campaign structure was a huge success which overcame all the challenges of being a housewife and dealing with multiple names while also giving women a sense of identity.
Marketing on social media
Building a strong social media presence is what Meesho has targeted for all these years. It is their best way to connect with their targeted audience. Meesho uses social media marketing to grow its brand by running various online campaigns. Memes done by this brand are just fantastic and it has become a modern method of brand promotion.
Sabse Kam Commission
This campaign run by the company was done to deduct the commission rate from suppliers in relation to the sales of their goods. The commission was reduced to as low as 1% and gave enormous competition to other big players in the market.
Influencer marketing
Influencers have great potential and ability to gain audience’s attraction. When any brand gets associated with an influencer, it gains the customer’s trust. Many YouTube influencers and other influencers have promoted Meesho. This has helped Meesho to gain more audience to their company.
Meesho Famous Campaigns
Here are some of the famous campaigns from Meesho:-
- IndiaBharPeChayega
- Arrey Waah
- Pyaar Ki Koi Keemat Nahi Hoti