Hi Surender

With regards to Fashion -

Both Amazon & Myntra being the first movers played volume game & so are prominent in value segment. Nykaa I believe had time to understand their business models and is consciously choosing to attract higher segment population, relatively. The price elasticity, demand is far more secular & also better unit economics to cater to this segment. This segment is also more sticky & do not switch apps in search of coupons & small discounts.

Also, Fashion app is curated & carries latest collection within a brand (say Biba) than a Myntra.

That’s why the AOV of Nykaa is double (I think) of the other 2 apps.

Rural - Rural also contributes sizable portion of revenues and for them online is better option than to travel to near by city to buy.

Having said this, going out & checking before buying segment will remain dominant and company is aware of this and was always conveying that they will also open EBOs etc. Offline retail is a must.

In addition to Bharat Petroleum, Hero Motocorp has now partnered with Hindustan Petroleum to establish EV charging infrastructure. I think it has done the ground work very well and is taking each and every step carefully while planning to introduce it’s electric vehicle.

Term insurance is a must. What if both the parents die in an accident? Who will take care of daughter’s all expenses and , education costs and marriage expenses etc?

Generally when Term.insurance is decided , ppl dont give a proper thought for the amount required. They just take 1 cr or 2 cr etc.

But there is a scientific process to arrive at it.

Just like we need capital in business, we need capital for our family, if we consider family as business enterprise.
There are 4 types of capital and their anology in family case

1. Working capital = to cover Your monthly expenses.
   For example, if you have monthly expenses of
   50 k that means yearly 6 lakhs, so to get 6 lakhs yearly with 6% Guaranteed returns , you need a capital of 1 crore. So if you keep 1 crore in a fixed deposit of SBI, your daughter will get montly 50k for expenses. So working capital works out to be 1 crore.

2. Fixed Capital- this is Your children’s Higher education, and marriage expenses and also if possible their settling down funds.
   Suppose your daughter wants to do MBBS and today the cost is 50 lakhs and by the time she does it , cost will be 2 crore then thats fixed capital, for marriage may be another 1 crore and for settling down it means if you want to provide a seed capital to help them start a business or giving help to settle a clinic , 1 crore ,
   So fixed capital works out to be 4 crore.

3. Outward liability - this will.include all your loans , like.home loan, car loan, personal.loan and also those loans of others where you are a guarantor.

4. Emergency capital- thos can be anywhere from 20 lakhs to 50 lakhs…

So total capital is addition of these 4 types of capital…this much Term.insurance you should take to cover these needs…

There is more sophisticated way also where, your earning capacity in next 20-25 years is calculated based on your education and experience and then extrapolated and then arrived at your Human Life Value.

IDFC First Bank is everywhere! xD

@jamit05
For Nykaa, all the birds are in the bush and everyone has to keep guessing about their quantity and timing. For the near term (3~5 Yrs), PE is and will remain ill-suited for for Nykaa’s valuation. Being a growth business, the focus shall be on topline’s growth, which generates enough cash to support all the initiatives. With time, embedded levers shall expand OPM towards 16~20%.

@richdreamz
Any thoughts on the customer stickiness (repeat purchase behavior) aspect for the ‘Fashion’ vertical?

Factors such as Family/friend feedback at the store, impulse buying, touch, and feel play a major role while buying fashion products. Virtual tryouts cannot overcome these factors. The online marketplace will always remain on the back foot on these aspects.