BODYLINE:THE FIRST SHIFT FROM GENTLEMANLY CRICKET

 

Since its first known game in the year 1706, cricket has undergone plethora of  transformations, reinventing itself and constantly evolving. The changes range from bowlers pitching the ball instead of rolling after 1960s, (which was reciprocated with changes in bat design from a hockey-stick shaped bat to straighter ones) to the introduction of 'power surge' and 'Bash boost' in the Big Bash league'21. Though they have their own importance in the evolution of the game, a tactic/event/controversy has withstood the test of time even after 90 years ;causing strain in multilateral relations, vandalism, shunning of immigrants, and business loss during its occurrence and, consequently ,changed the way the game was seen previously.

The body line or the fast leg theory was introduced in 1932-33 Ashes tour of Australia by English, spearheaded by Harold Larwood, to predominantly contain the adept batting skills of the Australian star batsman Sir Don Bradman(with a batting average of around 100). In the earlier Ashes Australia tour of England(1930), Bradman scored 974 runs with an a batting average of 139.14 runs, an aggregate record that still stands to this day. To put an end to the Bradman's batting spree, the English cricket team decided to devise particular tactics to curtail him in his own Australian pitch. They initially thought he was vulnerable to leg spin, while later the English skipper Douglas Jardine noticed through a video tape  that he had high discomfort in playing deliveries which bounced higher than usual at a faster pace particularly on the legside, being seen to consistently step back out of the line of the ball. As a result, a new type of leg theory bowling was born. ’The Bodyline’.

Leg theory

The leg theory, a precursor to the bodyline, is bowling in the line of attack-aims to cramp the batsman, making him play the ball with the bat close to the body. Before the 5-4(on-off side) restrictions were introduced, were any number of fielders can be placed on the ON-side, this tactic did wonders. For a leg theory spin ball, the concentration of fielders on the On-side made it difficult for the batsman to defend anywhere other than the On-side. As a result, being caught/trapped on the leg side was very common and seldom runs were made. This theory is still prevalent among leg spinners and is risky when bowled to skilful, patient and conservative batsman.

Bodyline-the art and the artists

Bodyline, the faster version of leg theory, involves tossing the cricket ball not only at the batsman's leg stump but also at the batsman's body. The batsman would be forced to hook or pull and most likely be caught at square leg or on the deep back side boundary. If defended it could go to a fielder standing close. Almost every fielder was on the leg side, with as many as six fielders in close proximity scoring runs became uphill. The third option was for the batsman to be struck by the ball and injured. There were no helmets or protective gear other than gloves and pads are worn at the time.

Surprisingly during the 1932-33 Ashes tour of Australia, The bodyline worked not only against Don Bradman but also against several other Australian players. Harold Jarwood,The star English bowler,fastest bowler of his generation and the prime executioner of Bodyline went on to take 33 wickets at an average of 19.51 with less than 3 runs per over. He got Bradman in four of his eight innings. Bradman's test average buckled to 56.57, the lowest of his career. In the later part of the series Jarwood’s bowling became extremely ferocious ,which physically injured the Aussies.The Aussie skipper, Bill Woodfull was struck by Jarwood’s thunderbolt on chest and Bert Oldfield, the wicketkeeper, was sustained a skull fracture by a bouncer. The English cricket won the series 4-1 and the series became forever etched in history as ‘The Bodyline series’.

Consequences outside the game

Outside of the sport, there were repercussions for Anglo-Australian relations due to the series, which remained tense until World War II compelled cooperation. As inhabitants of each country avoided goods manufactured in the other, business between the two countries suffered drastically. The English immigrants in Australia were shunned and visitors in both the countries were persecuted by the locals. Several statues of English Royal family were vandalised and numerous satirical cartoons and skits  were made mostly in Australia. Surprisingly, after the second world war(1946-48), Australian team captained by Don Bradman was first among the teams to extensively use short pitched bodyline bowling.

Rules that made bodyline less effective

Bodyline bowling is still allowed and equally challenging to play and is regarded a legitimate bowling strategy when employed sparingly. But, Several Cricket Laws have been amended throughout time to make the bodyline tactic less effective. The rules include 5-4 fielding restriction(On-off),only two bouncers per over in Tests ,one per over in one-day internationals, and one per over in Twenty - 20 internationals and Law 41 of ICC rule book to suspend bowler for intimidatory short balls.

Bodyline in recent times-India tour of Australia(Jan 2021)

The India tour of Australia(Jan 2021) ,especially the Brisbane test, saw several bodylines from Australian bowlers. The thunderbolts were targeted specifically to Chateswar pujara from Pat Cummins, Josh Hazzlewood and Mitchell starc. During that innings, Pujara copped a total of 11 blows on his body, and was hit multiple times on the head, hand and abdomen. Yet his gritty batting at Brisbane Test was in a different league and was instrumental in taking India to a win.

                                                             About the writer

    

B J K RAJKUMAR

Pursuing PGDM at IMT,Hyderabad

A constantly evolving person, writes about Geo-politics and Sports.

 

Impact of Global Semiconductor Chip Shortage

 

Almost every business on the planet is being impacted by the global chip shortage. Consumers are already seeing it directly as planned gadgets and appliances are delayed or in short supply — but they may become much more frustrated when tech's promises of an AI-powered future fall short due to a lack of hardware to operate it on. However, hardware isn't the only method to make these powerful machine learning technologies work.

Over the last few years, demand for chips of all sizes and powers has steadily increased, and supply has mainly been able to keep up until the current production problem. To give you a sense of the scope of this somewhat complicated tech sector problem, cutting-edge smartphones and servers aren't the only goods affected by the scarcity. A wide range of consumer products wearables - smart watches, home automation technology, and automobiles, to mention a few — have lately been updated to "smart" status and will be impacted as a result.

The Current Chip Shortage Solutions

The tech industry has already begun to take significant steps to address the shortfall. The obvious thing to take is to invest in existing and new chip production facilities, which most businesses are already doing. Covid-19, on the other hand, has disrupted the supply networks that would keep these plants functioning at normal rates, let alone the expanded ones required to meet demand.

In reaction to market instability and political constraints, China's reliable suppliers have stockpiled and limited their exports, and efforts to make the United States and others more self-sufficient in electronics production are nowhere near fulfilment. To put it another way, while investment is necessary to keep the global chip market afloat, it is insufficient to narrow the gap in the short term.

A more promising strategy is to accommodate older chip technology, both in terms of production and engineering. When new model inventory runs out, you might consider turning to used automobiles. "Used" semiconductor equipment here refers to manufacturing capacity from past chip generations that is no longer cutting-edge but is certainly better than nothing.

Because of the large demand for used equipment during the pandemic, device manufacturers are working on new devices that utilize older chips. This has already helped to mitigate the effects of the scarcity, but it's a desperate effort for an industry that, like a shark, must always go forward or perish.

Meanwhile, billions of people use tens of billions of gadgets every day, all of whom may benefit from a more immediate answer: a software solution to a hardware scarcity.

Software Solutions: Smart Compression and Compilation

Unlike hardware, software can be deployed globally at the rate required to maintain the industry's promises of AI-powered cameras, speech and face recognition, augmented reality, and other technologies on track. Until date, the industry has been unable to deploy software as a solution to the chip scarcity and to develop AI models on edge computing devices due to inefficiency.

When it comes to machine learning, efficient compression and compilation are about much more than reducing download sizes. It's critical to analyze what aspects of a working model are crucial to its outcomes in order to lessen the size and power needs of that model. As a result, smart compression entails "pruning" the model by deleting layers, filters, or channels without compromising its accuracy. It also entails "quantization," or reducing precision to save calculation cycles.

Compilation converts the compressed model's high-level operations to the low-level operations supported by a chip's architecture.

The problem is that there is no one-size-fits-all solution for completing these critical tasks. A machine learning model’s complexity must be compressed and assembled with the target environment in mind. After all, a common chip can be found in a smartphone, a home automation device, and a scientific equipment, all of which run distinct operating systems.

The efficiency gains from adapting the compression-compilation design to the exact architecture on which a model is meant to operate can be considerable. Furthermore, popular devices already in the hands of customers can give the real-time AI experience that developers have been pursuing and touting for years. Models ranging from natural language to selfie filters can operate natively faster than they could on specialized hardware, requiring only a regular app install from the user. As a result, the next generation of AI can be implemented without the need for multibillion-dollar infrastructure investments.

For at least the next three years, there will be a chip shortage. But that doesn't rule out the possibility of an AI-powered future. Software-based solutions have helped us get to this stage in machine learning applications, and they may help us go much further if we use them correctly.

ABOUT THE WRITER

A keen observer, love to read geopolitics and investment strategies, writes on the impact of the global semiconductor chip shortage.

Covid Crisis: An Opportunity in Disguise

 

"Every problem is an opportunity in disguise."

                                         - John Adams

As mentioned above by a remarkable political philosopher, John Adams, the quote holds true when the Indian entrepreneurs and companies turned the covid-19 pandemic into an opportunity and sustained in these unprecedented times. Firms in large numbers have experienced losses, a few have exited the market, but only the visionaries have revamped their businesses to use this as an opportunity and sky-rocketed their business with innovative ideas. Implementing new business ideas amidst covid-19 and considering this crisis as an opportunity is easier said than done- but not for RIL chairman Mukesh Ambani. 

"I firmly believe that a crisis is too precious to be wasted. Every crisis presents an opportunity for new growth, and India has faced the Covid crisis with enormous resilience and resolve," Ambani said during an event on December 15.

 

It is no secret that in the last two years, the demand for polyester swabs for RTPCR tests to detect the presence of the virus, and for a matter of fact, the need for alcohol-based hand sanitisers has all increased multifold. As a result, Indian entrepreneurs have stepped-up and altered their business strategies to meet the rising demand for these products. 

 

Polyester swabs for RTPCR tests by Suparshva Swabs:

According to the ICMR report on May 11, 2021, India conducted 18-20 lakh RTPCR tests each day to detect the covid-19 virus. For hospitals to perform these tests on such a large scale, they required "polyester swabs." The matter of concern was that until March 2020, there was no manufacturing of polyester swabs in the country, and these swabs were being imported from the US or China, which were ten times more expensive. However, the Indian company "Suparshva Swabs," which manufactures cotton buds under the brand Tulips, is now the first to develop polyester swabs in India for covid-19 testing at just one-tenth of the imported price. 

Suparshva Swabs has revamped its production to meet the national need for covid-19 tests and now manufactures more than 30 million units a week. The company claims it can alone meet the entire country's demand for polyester swabs for covid-19 testing. To help the country fight the pandemic, this company looked at the brighter side of the problem to find a solution. 

 

Hand Sanitizers by Asian Paints and ITC:

At the peak of the pandemic, the demand for alcohol-based hand sanitisers outstripped supply. During this time, many Indian companies forayed into sanitiser production to meet the rising demand. Many unusual players have been new entrants in this hygiene market to seize the opportunity created by the covid-19 crisis. 

Indian multinational paint company, Asian paints started manufacturing hand and surface sanitisers under the brand' Viroprotek'. The company recognized the potential triggered by the pandemic in this segment and launched a line of products for home sanitation. Another Indian company that started the production of sanitisers under its already existing brand Savlon is ITC Limited. ITC recognized that hand sanitiser was a necessity and repurposed its Himachal Pradesh perfume manufacturing facility to manufacture sanitisers. As a result of these new entrants and many other players, the industry estimates that the domestic hand sanitiser market will increase five times in size to 300 crores. 

 

Successful businesses like ITC, Asian Paints, and Suparshva Swabs could sustain these tough times because of their robust business strategy and never-give-up attitude. A crisis like covid allows individuals with entrepreneurial skills to identify incredible opportunities and pave their way to success. It all boils down to an individual level on how they seek new opportunities and create successful business stories for generations to follow.  

Until then, stay open to new opportunities coming your way because great opportunities never have "great opportunity" in the subject line!

ABOUT THE WRITER

Sanjana Nahata

Pursuing PGDM at IMT Hyderabad

An ambitious and result-oriented person, keen on self-learning finance and financial management writes about opportunities in the Covid crisis.

CLIMATE POLITICS AND INDIA'S ROLE

 

In the 18th century Industrial revolution was started in the western part of the world. The 21st century is a very crucial phase for climate challenges. The global objective is to limit the temperature increase to 1.5 deg C above the pre-Industrial level. Every year, the United Nations Framework Convention on Climate Change (UNFCCC) holds a summit to update the plan to reduce carbon emissions.

Whatever the climate challenges that the world is facing now is mainly because of the developed nations' irrational use of natural resources. They achieved high economic growth in the last hundred years by using all the resources at the cost of other developing and underdeveloped countries. For example, Europe is a hub of the meat industry and the fashion industry, responsible for roughly 20% and 10% of total CO2 emissions.

India is being pressured to reduce its carbon footprints because it is the 3rd largest country globally in terms of CO2 emission, following China and the USA. But in terms of per capita CO2 emission India is not even in the top 50 countries. Recently on Glasgow 26th, the Conference of Parties was held. In the summit, India, the USA, China have proposed to set a target of Net Zero CO2 emission by 2070, 2060, 2050, respectively. India has put this target considering the needs of the country in coming years mainly to alleviate the poverty. Internationally, India is facing pressure from the developed countries, especially by the USA, for coal usage negotiation because India had changed its stance from 'Phase out' to 'Phase down' deal as well as demanded $1 trillion for renewable energy infrastructure set up as a condition to achieve net-zero CO2 emission by 2070. Underdeveloped countries like African countries have also put some conditions like financial aids, technology for infrastructure, and compensation for climate calamities. With the lack of willingness of rich countries to reduce carbon emission and to help needful countries with different resources, this target looks very distant. Despite India and China having a tense relationship with each other on many issues, both of these countries worked together and acted as an ally in this particular challenge because they share a common interest. The bottleneck is that the rich countries deliberately do not want to recognize the wrong done by them for many decades. These developed nations demand all of the countries to take the same target regardless of different economic stages. There are many underdeveloped islands whose existence is on the brink and most likely which will not be there after a few decades. There are many climate activists who are not recognizing the root cause and criticize India's limited efforts to reduce carbon emission. For example, when Indian Prime Minister Narendra Modi had remarked on carbon emission exemption to some extent for developing nations.

All these global leaders are making fools to the common people worldwide. They are setting targets with reference to the year, which is not relevant at all. What matters is the available carbon space as per the data provided by the UN that the approximately we have available carbon space to be around 550Gt at staying 1.5 deg temperature. By 2030 USA and China alone will emit 187 Gt CO2, which is 34% of the available budget. So the discussion should be on the amount allocated for every country as per its population, economic growth condition, and its reliance on nonrenewable energy resources and not on at which year a country will achieve net-zero carbon emission. With this logic, the developed nations have to reduce their CO2 emission drastically on an immediate basis. It shows that they are not willing to take concrete actions to fight against climate change, and that is why no one is negotiating in this direction. It is inevitable that within two decades, we will cross the limit of 1.5 deg temperature. In this capitalist and highly competitive world, there is a lack of trust and cooperation between countries that will lead to climate disaster in the coming years.

India has to reduce its reliance on fossil fuel resources and has to invest the maximum in renewable energy resources. Even though India has stopped emitting carbon still, we cannot alter the situation in a positive outcome. So accepting the circumstances, we have to brace ourselves for different problems. India has a very big coastline, and climate calamities are going to be inevitable, so we need to be prepared as earliest as possible for all the future challenges.

About The Writer

   Jay Dudhela

   Pursuing PGDM at IMT Hyderabad

 A detailed observer with an interest in social and business affairs explains India's stance on climate change.

WHY DO NEW RETAIL INVESTORS LOSE MONEY IN THE STOCK MARKET?

The stock market is quite possibly the best avenue to earn additional income – provided that one approaches it with the proper knowledge and the right decisions. There are thousands of companies and multiple ways of investing to choose from, and when the economy does well, everyone wants in, leading to an influx of new investors and traders.

What's more, India's depositories saw investor accounts double from 2.12 crore in March 2020 to 4.64 crore in September 2021. In September, investor wealth rose by Rs. four lakh crores in two days, following a rise in the BSE Sensex. While this might sound like good news, it isn't. This rise leads to an alarming consequence of investors losing most of their capital in their initial investments.

Suppose you are one of those two crore people who read the news about the rise in stock market indices in 2021 and decided to invest as well. How do you ensure that you don't lose money as soon as the surge is gone? When it comes to earning from the stock market, the strategy makes all the difference.

Let's discuss some basics to keep in mind when new investors strategize for the stock market.

Setting the right goals:

It's ambitious to step into the market to benefit from its growth and overconfident to think it will happen for everyone.

The stock market offers alternatives with varying degrees of risk. To earn stably and profitably, it is essential that we first identify why we want to invest, over the how.

Once you decide the goals you are investing for, you will find it much easier to make decisions in the market.

Another thing to remember here is this - a proper investing goal can be building a corpus or a retirement fund. Even saving up for a vacation is an excellent investing goal. However, one cannot expect to earn very well if their goal is to benefit from the short-lived rises in the market.

Here is where seasoned investors strategize and win over the new ones - they know exactly where to look for their profits.

A better way to earn from the short-term growth in the market would be to focus your energy on trading over investing. However, trading requires skills and immense knowledge, due to which new investors completely ignore it and jump straight to "becoming an investor."

Get the proper knowledge:

Another trait that separates good investors from bad ones is that their basis of investing doesn't come from the news.

New investors decide to jump into the market when indices rise, but they don't recall this - each index consists of companies. Each company's value majorly depends on its performance.

To earn from the market, seasoned investors strategize to invest only in those companies which provide a long-term positive outlook. Here is where fundamental analysis steps in.

As the name goes, fundamental analysis involves checking the company's fundamentals - is the company earning profits? Will the company be able to expand and gain more in the future? If you check these factors before making any investment, you're more likely to earn more profits than any new investor.

Keeping emotions in check:

There is a very common jargon in the stock market for this - market sentiment. The attitude of investors towards a stock can drive any price to a new low or high. It can also seep into individual investors' minds, instilling fear in them when the market fluctuates.

What separates the good investors from the bad ones is this - their strategies always account for their emotions.

Fear, greed, and impatience are the three greatest destroyers of wealth in the stock market. The strategizing investor keeps their emotions in constant check and prevents impulsive decisions, lest any indecision destroys their wealth.

You mustn't be distracted by news flashes, rumors, or fears if you are a new investor. Once you have invested, stick to the facts and your position until you sense a genuine opportunity to sell and earn profits.

Transitioning from stocks to derivatives:

An investor without a strategy is like a loose cannon - with no direction and goals, you are bound to incur losses, which is the truest for those who transition from stocks to derivatives too soon.

Derivatives are the riskiest and the costliest investments; however, with the rise of easy-to-use trading platforms, many investors end up "trying out" derivatives and losing big. A derivative is a whole new ballgame - from the capital needed for any investment to the strategies required for execution, participating in derivatives trading needs immense knowledge and expertise.

As an investor with a strategy, you should not venture out to the riskiest alternatives until you have the money and the expertise to back yourself up.

Investing is the best possible venture to earn money, but only with the right strategy; as long as we have the proper knowledge, the right goals, and reasonable control of our emotions, any of us can earn and get the best of the stock market for us.

About The Writer

Simaran Sinha

Pursuing PGDM at IMT Hyderabad

An avid reader with an interest in business research, personal finance, and investing writes about the mistakes the retail investors are making in the stock market.

 
 

THE DEBT TRAP DIPLOMACY AND STRING OF PEARL

“The rich rule over the poor, and the borrower is a slave to the lender”

China is now the largest lender of credit globally, surpassing traditional lenders like the world bank, IMF and OECD!!! The Chinese Government’s claim to the rest of the world rose from $500 billion to $5 trillion in the last 20 years, accounting for 5% of the global GDP. The target countries are primarily developing countries lulled by Chinese promises of infrastructure assistance, only to have their debt grow out of control later.

The debt trap diplomacy-Chinese version: The theory of debt-trap diplomacy is that the creditor country extends excessive credit to a debtor country to extract economic or political concessions from the debtor country after the debtor country becomes unable to meet its debt repayment obligations. The Chinese version comes with clauses of confidentiality, where the credit terms are kept secret from other lenders, such as the IMF, etc. The Chinese also stress keeping the credit terms secret from the citizens in both the borrowing and the lending country, who otherwise have a legitimate right to know. A report claims that close to 42 countries in the world whose public debt exposure to China is above 10% of the nation’s GDP. These countries include Pakistan(CPEC), Sri Lanka(Hambanthota Harbour), Maldives, etc.,

The belt and Road initiative/THE TRAP: The debt trap diplomacy of China primarily revolves around the concept of its flagship infrastructure project-Belt and Road initiative (earlier called One belt One road). The Belt and Road Initiative(BRI), a Centre-piece of Xi-Jinping’s foreign policy, is an ambitious economic and commercial project that focuses on increasing connectivity and cooperation among various countries spread across the continents of Asia Africa, and Europe. Initially, it was envisioned as an ambitious project to restore the ancient silk route that dated from the 2nd century B.C. until the 14th century A.D, which stretched from Asia to the Mediterranean, traversing China, India, Persia, Arabia, Greece, and Italy. This route connected a multitude of trade posts, markets, and maritime ports, and it traded not just silk and fabrics but also essential commodities like gunpowder and paper (which eventually led to the invention of the printing press), all of which had a significant impact on the western world.

The BRI links China with other countries in lieu of ancient sea and silk routes of China with a series of latest infrastructure projects including bridges, railways, ports, energy power plants by investing trillions of dollars, resulting in win-win cooperation of participating countries along with China. But in reality, the practice is different. Now, suppose you are familiar with the mutual funds' investment advertisements. In that case, there’s a pronunciation “read investment-related documents carefully,” The Belt and Road initiative comes in place of that famous saying where the debt-trap diplomacy was terms & conditions in discreetly small letters, as the Chinese would say, “economic cooperation with Chinese Characteristics.”

For instance, in Srilanka, where the Chinese built Hambantota Port was leased to the Chinese for 99 years due to non repayment of loans to the Chinese Govt., which it had begin to Sri Lanka for construction of BRI constructions in its land. Another Glaring example of debt-trap coercion can be attributed to Pakistan, where China has planned to invest almost 60$billion for the CPEC. CPEC passes through Pakistan-Occupied Kashmir (Gilgit-Baltistan), an Indian territory illicitly occupied by Pakistan, which many have intimated as the white elephant of the century given the debt ratio to GDP of Pakistan booming out of control.

String of pearls: The BRI involves mainly all the neighbours of India such as Pakistan, Bangladesh, Sri Lanka, Myanmar, Nepal, and the Maldives, i.e., sans Pakistan, every country which has close relations with New Delhi and falls within the area of strategic significance for India which relates to the hypothesis ‘The string of Pearls.’ A string of Pearls is a strategic encirclement strategy by the Chinese to encircle India by building military infrastructure along the key points in the Indian Ocean to pressure New Delhi and check its military supremacy in the Indian ocean. The militarization of BRI cannot be ruled out since the Chinese have already begun constructing a naval facility at Gwadar Port, which Pakistan has leased to them until 2059. (The gateway to CPEC). The presence of Chinese submarines in Karachi (2014) and Colombo (2015) also indicates that militarization is imminent.

Concerns for India: The Chinese geopolitical strategy-string of pearls via debt-trap diplomacy and militarization of the Belt and Road initiative(BRI) program indicates that such a system will encircle India and threaten its power projection, trade, and territorial integrity. Significantly, the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-Occupied Kashmir (Gilgit-Baltistan), an Indian territory illicitly occupied by Pakistan, undermines India’s strategic interests and territorial integrity.

The Chinese pre-emptive moves and militarization of the BRI demonstrate that by attempting to outmanoeuvre India in the Indian Ocean, China is driving India closer to the United States and its allies. Nevertheless, few experts believe that India should not boycott the BRI and that it can be advantageous if it is economical and trade-oriented per se, with no geopolitical underpinnings that favour Chinese interests.

About The Writer

B J K Rajkumar

Pursuing PGDM at IMT, Hyderabad

A constantly evolving person writes about Sino-Indian geopolitics.

THE STRATEGY OF CARING BEAUTY: THE NYKAA STORY

 

Beauty lies in the eye of the beholder, in the same way for the Indian financial arena year 2021 rests for Initial Public Offerings (IPO). You must be wondering how these two quotes complement each other? The answer is Nykaa's IPO.

The global beauty industry has never lost its allure. Along with its steady growth, the industry has amassed a slew of devoted customers over the years. However, with the emerging technological trend and internet boom, people cannot physically visit cosmetic stores. Why should physical stores be the only option when online cosmetics stores allow customers to order products at any time and from any location?

Nykaa is one of these e-commerce platforms for beauty and wellness items, and it has quickly become the first choice for all cosmetic lovers in India. Anyone who has even the slightest interest in using beauty and wellness products has heard of Nykaa at some point in their lives. This is an e-commerce site that specializes in Beauty and cosmetic products. Since its inception in 2012, this platform has played a critical role in dispelling the myth that e-commerce and beauty retail do not perform well in India.

Nykaa's success is the epitome of the Indian startup's innovative ideas and long-term sustainability vision. A beauty and personal care product brand founded by IIM Ahmedabad graduate and former investment banker Falguni Nayar started its journey as an online store. In nine years, the brand has ventured from an online store to an omnichannel model and from Beauty and personal care products to a seller of fashion products. With more than 350 brands and 3000 products, Nykaa.com is the most significant player in the nation in its segment. Apart from its online presence, the brand has around 80 physical retail stores in 40 cities.

At the time of its IPO company has valued at $1.2 billion, and with its 4000-crore funding raising activity, the brand tried to expand its verticals by fortifying the financials. The investors will take Nykaa's shares and how it will perform in the index that time will tell us. Still, the story of the hour is how in the era of e-commerce giants Amazon and Flipkart, Nykaa came up as a dark horse and established itself as a household name in Indian Beauty and personal care products. Let us decode the strategies that make Nykaa a giant killer.

A Brand for Solution

Nykaa.Com is the one-stop online terminus for you to sit back, relax, and shop at your leisure, with free beauty advice and assistance over the phone, advice from beauty experts, the latest beauty trends, product reviews, tutorials, and celebrity looks on the Beauty Book Blog, and a fun Virtual Makeover tool. This is the uniqueness Nykaa brought in the arena; they are not there to only sell products; they care for their consumers. The brand published a magazine that provides all sorts of information about a product and its usage. It usages influencers and beauty experts to connect with its consumers directly, offer them customised solutions for their problems, and help them understand products according to their needs. This process provides them with enormous customer loyalty and brand reputation.

"Unlike Kareena Kapoor, who is promoting kajal, or Aishwarya Rai, who is promoting shampoo, these are 23–25-year-old girls of Nykaa who dress and speak as if they are customers, rather than speaking from a pedestal."

Model of Competitive Advantage

E-Commerce businesses usually function on two types of business models, the Marketplace model, and the Inventory model.

In the Marketplace Model, Customers will be able to interact with a limited number of vendors through e-commerce platforms such as Flipkart, Snapdeal, and Amazon. For example - when a person purchases a good from Flipkart, he is acquiring them from a Flipkart-registered vendor. Flipkart does not sell the goods directly. Flipkart is merely an online platform where a buyer and a vendor meet.

The inventory model of e-commerce refers to an e-commerce activity in which the e-commerce firm owns the inventory of goods and services and sells them directly to customers. This is the model that set aside Nykaa from the crowd, and the model helps them hold the secure item and allows them to avoid counterfeit items on their platform. The brand has three warehouses in Bangalore, Mumbai, and New Delhi. The model also helps brands cut costs and receive economy of scale as they can order in bulk with various BPC product manufacturers and sell them over their platform. With the model, the brand able to build up trust among the consumers due to authentic products and on time and quick delivery.

Nykaa's management also played smart by choosing the inventory model. They received the benefit of government regulation which says, "In the eCommerce industry, 100% FDI in the marketplace model of e-commerce is allowed under the automatic route. Whereas in the inventory model, no FDI is permitted, with their awareness, the brand developed a competitive advantage over foreign players and foreign investment operated brands such as Amazon and Flipkart

Adaptable and Learner

Nykaa is a virtual store that sells everything from low-cost items to high-end brands. Nykaa has only lately begun cooperating with and presenting non-Indian brands such as HUDA Beauty, Kiko Milano, Wet and Wild, and others, which is a significant accomplishment in and of itself. This has turned Nykaa into a haven for cosmetic junkies who can now get their hands on goods previously unavailable in India. Nykaa also fostered the careers of several YouTube beauty gurus, showcasing their talent and pushing their chosen career path to the best extent possible. Nykaa's community network, which is an interactive platform of product users and experts, has around 1 million subscribers and Nykaa's YouTube channel has approximately 1 billion subscribers, which showcase the brand's mastery in content marketing, every week around 40000 users join their network community without any marketing push.

Nykaa Luxe and Nykaa On Trend are two offline store formats of Nykaa's offline store. The Luxe format includes Indian and worldwide luxury beauty brands and Nykaa Beauty, the company's line of cosmetics. Products are preferred by category based on their reputation in the latter format. The brand explores 92% of the BPC market consumer segment who are not in the online space.

Nykaa's fashion e-commerce store has expanded its worldwide delivery to 13 countries as part of the multi-brand company's distribution network expansion. International customers can now shop the retailer's comprehensive multi-brand collection of Indian fashion brands and its private labels. Nykaa's distribution network includes Zariin, The Jodi Life, The Pink Elephant, Global Desi, and FKSN.

Conclusion

The brand has grown remarkably in the last three years; income has doubled. Nykaa has returned to profitability in FY20-21. This year, they made a profit of 60 crores, which is unusual for a business in its early days. Apart from its financial recklessness Nykaa has established itself as one of the most successful businesses. Thanks to its calm and steady approach, it is positioned to become one of the top beauty and wellness companies in the industry. For all its consumers, it is the epitome of trust, wellness, and care. In the word of its founder, Nykaa's as a brand wants to become a demand-led retailer, not a push retailer and the BPC market leader is aptly dedicated to her vision. 

About The Writer

Piyush Ranjan Jha

Pursuing PGDM at IMT, Hyderabad

A constant learner expresses his opinion on Nykaa.