Meesho is a social commerce platform that allows users to resell products using their social network.
It was founded in 2015 by IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal. In this article, we will discuss How Meesho Started and the Advertisements and Campaigns of Meesho, and everything you need to know about Meesho. So, let’s get started!
Meesho – Name, Logo, and Tagline
Meesho means “Meri Store” or “Apni Dukaan” in Hindi, which justifies the service he provides. Meesho aspires to create an environment where anyone can start a business without financial investment.
Meesho’s tagline reads: “More than just a housewife, a Meesho businessman.”
Meesho – Startup Story
In 2015, when Meesho was launched, it was called FASHNEAR. The idea behind FASHNEAR is like Swiggy or Zomato. FASHNEAR handles fashion-related products and allows customers to purchase fashion clothing and accessories from stores in their area. Local stores selling clothing and accessories can register with the FASHNEAR app and customers can order from these local stores, and delivery people will be available to deliver.
However, the founders quickly noticed some flaws in FASHNEAR’s business model. Some of the major downsides they found were that consumers were less interested in buying clothes from local stores. In addition, store owners also want to increase sales by selling products online at different locations across the country, instead of selling their products locally. These issues inspired Vidit and Sanjeev to research a better business model.
At the end of 2015, Fashnear was renamed “Meesho”. The founding duo visited many merchants and dealers to identify their problems. They found that many merchants were selling via WhatsApp, but their reach was limited because they only shipped locally. They also found that most of the stores registered on MEESHO are run by women and that these women sell products in their homes, not in physical stores. Meesho’s current business model is built around these realities and issues, and now, with Meesho, women can comfortably start a resale business from home without having to owe any inventory warehouse. Meesho now allows small stores and manufacturers to deliver their goods nationwide, while Meesho handles product deliveries, facilitating cash-in options and ensuring that consumers can return products seamlessly if they wish. Thus, Meesho acts as a bridge between suppliers (manufacturers and merchants who list their products on Meesho), resellers, and customers. Meesho also helps suppliers manage their inventory.
Meesho – Business Model and Revenue Model
Regarding the business model, it cannot be said that Meesho operates under the D2C (Direct to Consumer) business model. In the D2C business model, a product is sold directly to the consumer by the manufacturer. However, Meesho involves agents, who are intermediaries between the producer and the consumer. Meesho is a platform that helps businesses (including manufacturers and agency business owners) increase their sales and, in turn, charge certain fees and commissions to the business. So Meesho now has a B2B business model, which it transitioned to in 2021 after changing its path from the reseller model it had focused on in the first place. Below are Meesho’s main sources of income-
Mission
The commission that Meesho charges suppliers is their main source of revenue. When an agent sells a product on the Meesho platform, the seller of that product is charged a certain percentage of commission. The commission-based business is similar to e-commerce platforms like Amazon, Flipkart, and others. According to the company’s website, a 0% commission is charged to suppliers for certain types of products. No commission is charged to agents. Apart from commissions, other sources of income are –
Logistics
Meesho provides logistics to suppliers and charges them. The Meesho team is currently working to reduce logistics costs to increase profits for sellers.
Advertisement
Part of Meesho’s revenue comes from advertising. As the number of sellers on the platform increases, merchants who want to showcase their products in front of resellers and customers on the platform have to pay a certain amount to advertise their products.
Data
As we all know, data is the new oil and is definitely a source of income for Meesho. Meesho is not violating any privacy policy, and they are only allowed to sell data that does not violate any privacy issue.
Meesho – Advertisements and Campaigns
Meesho launched its first TV commercial on September 25, 2020. The ad shows a woman being called by many names, wife, mother, daughter, sister, or daughter-in-law, but defying all responsibilities. Family, a woman can build her own identity and source of income with Meesho!
Meesho Layoffs
Meesho recently laid off about 150 employees, effective April 11, 2022, due to a restructuring initiative at the grocery delivery service Meesho Superstore. The e-commerce unicorn is eager to restructure its grocery business and deliver efficiency. This resulted in the layoffs of a small number of Meesho full-time employees and a reassessment of some of the roles in third-party contracts to remove redundancies to core operations and business. By Meesho.
Meesho’s Smear campaign
Meesho announced that a defamation campaign is raging against the company, that’s why the company has sent out legal notices to social media influencers and those associated with them, according to a report dated June 7, 2022. This is not the first time the company has noticed such incidents; Twitter users Udita Pal and Aashima Arora have previously been implicated in smearing Meesho for monetary gain. Regarding the Meesho smear campaigns, the Advertising Standards Council of India (ASCI) responded that if influencers receive money for posting anti-Meesho tweets aimed at smearing the name and reputation of the company, they will be liable for prosecution, according to a June 10, 2022, report.