Your Tech Story

ecommerce

The Festive Sales Came to an End, Earning Double Profits For Flipkart & Amazon

News, Tech News / By
flipkart-amazon-sale
Image Source: theweek.in

The festive sales in India, inspired by the Singles Day event in China and the Cyber Monday in the US, have been repeated a few times now. Flipkart’s Big Billion Days Sale was the first of its kind (India), that was organised in October 2014. The five days sale of Flipkart, and the six days Amazon’s festive sale, has come to an end, and after the sales, Flipkart has claimed its 70% market share in the Indian e-commerce market, and likewise, Amazon has also recorded a huge profit in the sales. In fact, both the companies have earned double of the profits they had gained in the previous year’s sale.

The profits, that Amazon has earned in this festive sale, have registered its best-ever performance, nearly equal to the Flipkart’s Big Billion Days Sale. Although Flipkart is still in lead, Amazon’s India head Amit Agarwal reportedly said that the sale has given outstanding results, and has gained more profits, before the end of the sales. Also, it has surpassed all the expectations. He also said. “There are two specific areas, where we pay particular attention to, which is: the new customers and the reach of those customers, and Prime member sign-ups.” The sales added 80% new customers from the rural area to the Amazon customer base, and there have been new sign-ups for Amazon’s Prime Membership. According to the reports, Amazon sold 1 million Xiaomi smartphones, and also, the one plus phones worth 400 crores, in a day.

On the other hand, Flipkart has gained two times more profits than the previous year’s sales, fashion products playing the most vital role in it. It also sold 3 million smartphones on a single day and has claimed 85% shares in the smartphone market on that same day. A Flipkart spokesperson said, “Gross merchandise value (GMV) grew 80 per cent over the last year, whereas units grew by close to 2X year-on-year.” According to Flipkart, the BBDS 2018 has smashed all its previous records. It also gained almost 50% more customer base for Flipkart and welcomed 25 million visitors on its app, on one of the sale days.

Both Amazon and Flipkart had introduced EMI and other new payment options to attract more customers from the rural areas of India. And, based on the sales, one must say that both have achieved beyond the targets. Along with Amazon and Flipkart, other e-commerce sites including Shopclues, Snapdeal and Paytm Mall also organised their festive sales and has seen a surge in their profits this year.

The Founders Behind the Worldwide e-Commerce Marketplace : Groupon

Founder, start-up, Story, Tech Story / By

In the industry, where most of the businesses want to earn more profit by avoiding bargaining and discounts on their services, Groupon.com brought a new way of earning profits with their different business model. The company is solely based covering the idea of selling discount deals on the services of local as well as multinational companies. The idea was unusual which gained huge popularity and benefits in a short interval of time.

It was Andrew Mason, who came up with the idea of creating such a business model for his first start-up company. Andrew Mason, who was first appointed as the CEO of the company, convinced Eric Lefkofsky, to invest $1 million in the idea, making the latter the co-founder of Groupon.

Early Life

Andrew was born in Pennsylvania and did his schooling from Mt. Lebanon High School, in 1999. In 2003, he received a bachelor’s degree in music from Northwestern University. After graduating from college, he joined a web designing company InnerWorkings, as a web developer. The company owner, Eric Lefkofsky, became his future partner and co-founder of Groupon.com. Andrew left the job to join the University of Chicago’s Harris School of Public Policy to pursue a master’s degree. However, he dropped out from the course after a few months of joining and again started working at Lefkofsky’s.

Founding Groupon.com

In 2006, the time, Andrew was working as a web developer, he was also dealing with the cancellation of a cell phone contract. He became frustrated with the client service and was looking for a solution. Soon, an idea lit Andrew’s mind and he started working on ThePoint, his first entrepreneurial venture. Lefkofsky also became interested in the project and offered a $1 million amount for the start-up. The two along with another business partner of Lefkofsky, Brad Kwywell, became the co-founders of ThePoint.

ThePoint was a platform developed for the purpose of getting people together to accomplish a certain goal, using the social media. Eventually, the main objective of ThePoint became saving money through various discounts from local vendors. In 2008, ThePoint was renamed to Groupon and was launched as the platform that focussed entirely on group buying.

The idea of Groupon was new in the market, and, in just one and a half year, the company valued at over $1 billion. The company became the first one, to join the $1 billion club in such a small time. In November 2011, Groupon was public, having the biggest IPO by an Internet company, since Google (2004). The concept behind Groupon was to provide deals to the consumers and sell the services of the companies, taking 50 per cent of every deal. Till 2014, it was noted that the company revenue hiked by 25% every passing year.

To avoid any kind of competition, Andrew and Lefkofsky started acquiring the local deal-of-the-day companies. Starting with the Europe-based MyCityDeal in 2010, Groupon also acquired other companies like ClanDescuento, the Japanese service Qpod.jp, Russian Darberry.ru, the Singaporean Beeconomic.com and the Indian deal-of-the-day website SoSasta.com. By March 2015, Groupon expanded in 500 cities worldwide, has 48.1 million registered users.

On February 28, 2013, Mason was dismissed from his post of CEO. Lefkofsky and Brad Keywell remain as the major investors of the company, and the former is serving as the chairman of the company.

Daniel Zhang to Replace Jack Ma as the Chairman of Alibaba Next Year

Founder, News, Product, Product Management, Tech News / By
Alibaba
Image Source: nan.ng

On last Friday, the Chinese billionaire Jack Ma announced his retirement from the position of the chairman of Alibaba. He is going to serve as the chairman of the company till 10 September 2019 and will stay a member of the board until 2020. Jack Ma is only 53 and wants to devote his time to Philanthropy. At the age of 53, he is the only Chinese billionaire who has taken such a decision.

Jack Ma founded Alibaba in 1999, as a business-to-business marketplace. Soon, he expanded the business, to obtain a $420 billion profit, within a few years, making Alibaba as a consumer based platform. He also tried his hands in cloud computing, digital media, and other industries, including the payment gateway AliPay. His success story inspires everyone and he is referred to as ‘Teacher Ma’, in China. His decision has shaken the whole world, but he has got a plan for himself. Jack Ma is going to stay as a lifetime partner of the Alibaba Partnership and will continue working with his philanthropic organisation, the Jack Ma Foundation.

Jack Ma had already decided to retire from his post, a long time ago. Almost a decade ago, he had asked his team about what they will do without him. Now when he is stepping down from his position, the current CEO of the company Daniel Zhang is going to replace Jack Ma, to hold the position of the chairman of the company.

Daniel Zhang joined as the CEO of Alibaba, in 2015, and since then, Alibaba has seen consistent and sustainable growth, for 13 consecutive quarters. On this Jack Ma said, “This transition demonstrates that Alibaba has stepped up to the next level of corporate governance from a company that relies on individuals, to one built on systems of organizational excellence and a culture of talent development”.

After Apple Amazon Also Joins the $1 Trillion Club

News, Tech News / By
amazon
Image Source: marketwatch.com

It is quite difficult to believe that once a non-profit online bookstore, that was founded in a small garage, has hit the $1 trillion mark in business, after 21 years. Jeff Bezos, the founder of Amazon, is one of the biggest beneficiaries of Amazon’s growth and under his leadership, Amazon has become the second tech company that has hit the $1 trillion valuations.

Noticeably, Amazon valued $600 billion in January 2018, and in just 165 days of trading, it has joined the 1 trillion club, as the second member, just after Apple. In the past, Jeff Bezos has done a few massive investments that have led Amazon to reach this position. In the beginning, Amazon was an online bookstore but now it has its hand in various other fields too.

Amazon has excelled in AI and has acquired a pharmaceutical store PillPack for $1 billion. It has revolutionised the way of shopping and its retail unit has added a lot of revenue to its growth. The main contributing industry that has helped Amazon to achieve the $1 trillion mark is AWS. The Amazon Web Services has been contributing as of 65% to the company’s growth, providing a $25 billion in revenue annually. Also, its fastest-growing ad business has generated $2 billion in quarterly sales recently.

No wonder that Amazon has become the number one retailer in the US that captures nearly half of all U.S. dollars spent online. Some analysts have even mentioned that soon Amazon can overtake Apple if it keeps growing at such pace.

Ronaldo Mouchawar : The Biggest Online Retailer in the Middle East

Founder, start-up, Story, Tech Story / By

Starting a business is itself a huge challenge and starting in a sector dominated by giants just makes the challenge double-fold. Amazon, undoubtedly, is one of the leading e-commerce company today. It has expanded to almost every part of the world and has become the top e-commerce company.

With a fierce competition already present in the market, a man decides to start his own e-commerce venture, in the middle-east, and just within a year, reaches maximum people in the country. The website was named Souq.com and co-founded by Ronaldo Mouchawar. How he became the most successful self-made businessman? Let’s get to know more about him.

Early Life

Ronaldo was born in Aleppo, Syria, to a merchant father. His father’s business became an inspiration for him to name his e-commerce site. Mouchawar went to Northwestern University in Boston to earn a Master’s degree in digital communications and a Bachelor’s degree in electrical and computer engineering from Massachusetts in the United States. Initially, Mouchawar took a job at the Boston engineering firm. He also worked as a technical and systems consultant in the technology and business management sector at the Electronic Data System (EDS).

Entering into Start-Ups

After completing his education, Mouchawar joined Maktoob, the first successful web portal in the Middle East. He was not quite fluent in English and Maktoob was not looking for the fluent ones. As the web portal was gaining attention and becoming popular in the country, Mouchawar realized the potential of e-commerce business and wanted to create a separate commerce-only website.

Then, in 2006, he started a website called Souq.com. The word means ‘market’ in Arabic and Mouchawar’s hometown, i.e. Aleppo was famous for its souqs. The company was set up in Dubai as UAE had a larger population of young people and could prove a very profitable marketplace for an e-commerce website.

ronaldo mouchawar
Image Source: webit.org

Initially, Souq was launched as an auction website which later was diversified into an automobile and real estate. The business grew pretty quickly and was getting popular. Mouchawar expanded the business to Saudi Arabia and, by the end of 2009, Souq became independent of Maktoob. At that time the website was witnessing 3 million UAE dirhams worth of auctions i.e. the US $1 million.

There was also a time when smartphones were entering the market and more and more people were shifting from their laptop to smartphones. As Souq was available only for the desktops and there was no app developed for it, further growth of the business seemed to be limited. Mouchawar took a smart decision and quickly adapted to the changing technological era. And in 2012, Souq launched its first app. Today, more than 70% of purchases are done using smartphones.

Next big change was introduced in 2010. With Wisam Daoud joining as CTO, Mouchawar decided that Souq would no longer run auctions and classifieds. The company, at that time, had 80% business from the auction and 20% from fixed price. But in May 2010, they closed the auction site. Initially, the company lost most of their transaction but they made for it in around six months and also doubled its revenue each quarter.

Mouchawar, in 2014, launched ‘White Friday’ sales which coincide with the ‘Black Friday’ sale in the US. He explained that ‘Black Friday’ does not make cultural sense in Arab as Friday is the traditional day of prayer. The sale received a thunderous response and raised more than $275 million. At the time of its next White Friday Souq had doubled its sales and witnessed 13 million visitors and around 600,000 products sold during 25th-28th November.

In March 2017, Amazon acquired Souq by paying $580 million in cash.

Personal Life

Ronaldo Mouchawar has received a number of accolades including Gulf Business Industry Awards CEO of the year in 2013 and Entrepreneur of the Year award in 2015. He currently lives in Dubai, UAE.

Jack Ma: A self made billionaire

Inspiration, start-up, Story, Tech Story / By

E-commerce is one of the fastest growing segments in the industry. Many young entrepreneurs have tried their hands in this field but very few were able to taste success. One such hugely successful eCommerce business is Alibaba.

The man behind this extremely successful ecommerce business is Jack Ma. Today Ma the founder and executive chairman of Alibaba Group has an estimated net worth of $25 billion. Who would have imagined that a 5 feet tall Chinese man will lead Alibaba to a record breaking $25 billion IPO and become 18th richest person in the world? Alibaba’s IPO was bigger than Google, Facebook and Twitter combined.

Determination & persistence paves the way
Ma was born in Hangzhou, China. Lack of resources was never a excuse for him to learn or do something. In Childhood Ma developed a desire to learn English, so he started to converse with foreigners. For nine years he used to guide foreigners around the city for free to learn English. This opened the door to many entrepreneurial skills; from interacting with people to knowing their thought process; this somewhere pushed him to develop his own views on capitalism and entrepreneurship. During this course he became pen pals with one of these foreigners, and she nicknamed him “Jack”, because his real Chinese name Ma Yun was too difficult to pronounce.

But before he became the richest person in China, Ma went through a lot of rejections. Can you imagine the man behind Alibaba’s success was rejected by three universities?Quote JackMa2

Today world’s top universities and business schools like Harvard take pride in inviting Jack Ma for guest lectures whom once they were not ready to give admission. He was rejected by Harvard 10 times as a student. Jack Ma learnt from failures than through the formal channels of education.

He applied for 30 jobs and got rejected. Jack Ma once said, “When KFC came to China, 24 people went for the job…23 people were accepted. I was the only guy who wasn’t.” His journey from a failed man to a successful tech leader & entrepreneur is exemplary .

Ma’s first date with internet and rise of Alibaba
“Beer” was the first word that Jack Ma searched for on the internet- Really? Beer? Well, during his trip to US, he searched for “Beer” and then “China”, when no results came up, he decided to set up a Chinese website. He saw the web as the future of business and even tried to register the name Internet!
In 1995 he along with his wife and a friend founded an internet company called China Yellow Pages. This company made 5,000K Chinese Yuan (US$800K).

In 1999 he started Alibaba, a B2B marketplace along with his 17 friends. He chose the name Alibaba since it was unique and easy to spell and people were able connect with this name very easily. Alibaba.com allows merchants and companies to trade products online. Within a short period of time Alibaba became one of the largest websites online.

Ma is a larger-than-life figure. Even after reaching the great heights, Jack Ma is the exceptionally optimistic and determined. His journey to success is definitely one which will inspire you even in your darkest days. Jack Ma believes that “If you are still poor at 35, you deserve it!” His journey is a perfect example of a rag-to-riches story. The most important lesson is- when the dream is big enough, the facts don’t count.

Most of us indulge so much in making excuses about things that we even forget to make the best of every situation. We all give countless excuses everyday like lack of money, lack of good education and people around us always discourage us. The same was the case with Jack Ma, he had nothing to push him forward but his strong desire to excel made him the man he is today.

“We are never in lack of money. We lack people with dreams, who can die for those dreams” – Jack Ma