Essel Group has invested in a new business doing video commerce.

Bye e-commerce, hi video commerce

Video-commerce can be the next big thing in India. A startup from Noida is already building India’s first.

Brief:

• Ezmall from Noida is building a video commerce business. It started in 2017. Essel, which also owns ZEE network, has invested INR 105 crores approx.
• It uses video to explain the products. It aims to imitate the practice of touching and feeling the product before buying.
• It maintains its own inventory, unlike e-commerce players, who are marketplaces.

How does video help?

• Customers from tier 2 and tier 3 cities ( 10 crore users approx.) trust the content in local language. Videos in local language builds trust faster than English language.
• It mimics the practice of touching the product before buying it. No other e-commerce firm focusses solely on videos.

How is it doing?

• It broke even in July- September 2018 quarter. During Diwali, they shipped over 750,000+ units.
• Customer returns are below 4 percent. Repeats are close to 30 percent.
• It grew five times since April 2018. It aims to grow ten times in the next year.
• It’s competitors are Meesho from Bengaluru and Shopmatic from Delhi-NCR.

What are others saying about it?

• Livemint’s report.
• Your Story’s interview with the founder.
• Website

NDBJ Insight:

• It seems to be a Zee venture. Ezmall is registered in Mumbai. It’s email is Essex Group’s id. Also, CEO isn’t amongst the listed directors.
• Ezmall uses Zee’s TV network to generate demand. Hence, the video comes handy.