Don’t do e-commerce
Most e-commerce businesses in India, including Flipkart, are bad copies of Amazon. They are making losses. Amazon and other startups did not happen because of erratic venture capital. It was a constant and incremental work over years.
250 years of hard work:
- They built robust manufacturing culture.
- Like China from 40s to 60s.
- Walmart, K Mart, Cost Co, the foundation for Amazon.
- Rise of American consumerism.
- They invented technologies ( telephony, internet, mobile, transport) and processes ( banking, payments, catalogue marketing) for themselves such as UPS, which Amazon used.
- Read: US government was the first entrepreneur.
We’ve just started:
- 1/4th of India uses smartphones. Though, nearly 90% uses phones.
- Weak support services such as warehousing, transport, banking require upgrade. Report by Mckinsey.
- Per capita income is amongst the lowest in the world( INR 1,12,000 approx).
- No jobs?
- Read: Still Amazon is keen to win India.
What should we do?
- Build real businesses.
- Startups and funding will not solve our problems. .
- Share wealth like Ford did.
- Demand action from the authorities ( contracts, labour laws, ease of getting capital, training, education)
Learn from Dorabjee’s, Pune’s oldest grocers.