An untapped Market till 2015
What is so Licious (extremely attractive) about the company Licious that everyone is talking about it? :p
Well it is their founders’ -Abhay Hanjura and Vivek Gupta- birds-eye view to hit the untapped market in the year 2015
India has the largest vegetarian population in the world,but according to the survey India also has over 70% population being meat and sea-food eaters, and growing…
So folks where did you used to go to buy the meat?
Of course, the time before Licious came to your rescue
Umm…..
Is the answer…to a butcher?……..right?……nearest to your house whose surrounding is full of filth and smell making your whole market experience extremely bad. Moreover, they do not even have the facility to store the meat at their optimum temperature.
Hygiene and quality issues?
You must be loving your chicken and kebab at home but at some or the other point in time, you must have worried about the hygiene and quality issues as neither the customer nor the butcher is aware of the health of the animal or if the animal is pumped with chemicals.
95% of the Indian meat market was unorganized in year 2015, the meat and sea-food speciality stores are only in big cities.
Ever wished for that clean and hygienic, nicely packed box of meat and kebab? Instead of it wrapped in black polythene or a newspaper :(
Well, worry not, here comes LICIOUS whose mission statement is —
“We won’t sell what we won’t eat ourselves!”
An interesting thing about Licious is that unlike the conventional method of saying Out of Stock to customers, it says order now what is available in the store, and the remaining quantity will be delivered the next day. And with this model, company revenue increased by 8% in a single day.
Shutdown
And boy o boy, this did come at a cost, after just 35 orders, their supply chain collapsed, as the staff was not well trained and ready for the meat revolution. They shut down the factory and spent about 2 weeks training their staff intensively.
Reopening
When they reopened things went well, In the first full month of operation they received 1300 orders and after this first month, 90% of the customer came back for more. By the end of 2015, they generated whooping Rs 1.47 cr in revenue.
Packaging
Remember “We won’t sell what we won’t eat ourselves!”, so one will definitely not eat a chicken wrapped in polythene, here comes indeed a Licious packaging, a white box with a smile on the front, making the customer experience completely different.
Today Licious is present in 14 cities across India delivering 1 million homes /month, a great increase from just 1300 orders/month.
Competitors
The main competition of Licious is from FreshToHome, ZappFresh, and TenderCuts.
According to sources Licious is now valued at $650 million.
What really benefitted the company was “No Outsourcing”. According to Inc42
“Simply put, the secret sauce lies in the fact that the company owns the entire supply chain and does not outsource any of its business processes. That earlier experience of poor customer service had ushered in a valuable lesson and benefited all processes within Licious.”
Here’s how Licious mastered the Fam to Fork model —
How do you think Licious delivers fresh meat and seafood without any added chemicals, coloring, flavoring, and preservatives within 90 mins of placing the order?
The secret is ownership of the whole supply chain !
Let’s dig more into the whole supply chain -
Farmers deliver the livestock to the Licious team which is transferred to Processing centers( all owned by Licious) in Refrigerated trucks with maintained temperature (0–4 degrees) where they are cleaned, cut, and packed.
From Processing centers, the products are delivered to Delivery centers in temperature-controlled packages so they remain fresh.
Licious has partnered with Google maps to ensure accurate delivery and get the accurate location of the consumers. When an order is placed in the App, the delivery center closest to the region receives the order, and the estimated delivery time is calculated through distance API.
The Delivery center packs the order and is picked by the Delivery Agent and is delivered within 90 mins.
This ownership of the whole supply chain has ensured fresh and quality meat in addition to enhanced customer satisfaction. All Licious products undergo more than 150 quality processing tests at various stages of sourcing and processing to ensure the “freshness” factor.
How is Licious different from traditional meat markets?
Let’s have a look at what Licious is doing differently that has made it so popular with meat enthusiasts-
In a traditional meat market, a product goes through a very long supply chain which can compromise the quality and lead to increased prices.
Firstly, livestock is collected from farmers by the middlemen who then sell it to wholesalers who sell it to retailers. Then local butchers purchase the livestock from retailers and process it for consumption by market.
Instead, Licious is a D2C ( Direct to customer) brand that collects livestock from farmers, processes it, and delivers it to customers without compromising the quality and freshness of the product.
Licious found a problem (Unorganised meat market), analyzed the situation, and developed a solution (organized the meat market ) efficiently that lead to its success.
Thankyou for spending your time and reading this, we hope it was worth reading.
