1. Rising Concerns about Food Safety: As reports of food adulteration and contamination increase, particularly involving well-known brands, concerns about food safety are on the rise. Consumers are now becoming more vigilant about the quality of the food they consume. This has led to an increased demand for food testing services to ensure that products meet safety standards.
2. Government Regulations: The Indian government has been implementing stricter regulations regarding food safety and quality standards. This has necessitated food businesses to comply with these regulations, thereby driving the demand for food testing services.
3. Health Consciousness: As more people become health-conscious, they are paying closer attention to the nutritional content and quality of the food they consume. Food testing helps consumers make informed decisions about their food choices.
4. Urbanization and Changing Lifestyles: Rapid urbanization and changing lifestyles have led to an increase in demand for processed and packaged foods. However, this has also raised concerns about the quality and safety of these products, leading to a greater need for food testing services.
5. Technological Advancements: Advances in food testing technologies have made it easier and quicker to detect contaminants, pathogens, and adulterants in food products. This has made food testing more accessible and affordable for both consumers and businesses.
6. Consumer Awareness Campaigns: Various consumer awareness campaigns, both by non-governmental organizations and social media influencers, have helped educate people about the importance of food testing and the risks associated with consuming unsafe food.

Overall, the food testing market for retail consumers in India is poised for further growth as awareness about food safety continues to increase, and as technology enables more efficient testing methods. In India, only few companies offer food testing services for individuals or retail consumers. These services cater to various needs such as testing for contaminants, nutritional analysis, authenticity verification, and allergen detection and are currently not that affordable. Can we build a more sustainable way of helping out conscious customer and offer a better and affordable food safety testing services. We looked for answers and may have found one too. Reach out for more info at support@untappedmarkets.in

We conducted a survey of 2,000 people in India in Tier- 1 and Tier-2 cities recently, to check out the untapped potential of this market segment. Reach out to us if you need the access to the final findings of this report.

India’s lithium discovery has sparked excitement and potential in the country’s efforts towards electric vehicles and renewable energy. The discovery of significant reserves of the mineral in the union territory of Jammu and Kashmir has the potential to not only meet India’s domestic needs but also put the country on the map as a major global player in the production of lithium.

Lithium Reserves in Jammu & Kashmir Can Speed up India’s EV Dream

According to an article by The Weather Channel, India currently imports almost all of its lithium needs. With the discovery of large reserves in Jammu and Kashmir, the country can now reduce its dependence on foreign sources and ramp up domestic production to support its ambitious goal of having 100% electric vehicles (EVs) by 2030.

The report highlights that lithium is a key component in EV batteries, which is why the mineral’s discovery in India is a significant development in the country’s push towards electrification. As of now, India’s EV market has been slow to take off, with lack of charging infrastructure and high costs of batteries being major hindrances. However, with the discovery of lithium reserves, India has the potential to produce more affordable batteries, reduce costs, and accelerate the pace of EV adoption in the country.

India’s Lithium Discovery Could Electrify Entire Domestic PV Installed Base: Jefferies

According to an article in The Economic Times, analysts at Jefferies believe that India’s lithium discovery has the potential to electrify the entire domestic photovoltaic (PV) installed base. This is because lithium is not just a key component in EV batteries but is also used in PV cells for energy storage.

The report highlights that India’s PV installed base is growing at a rapid pace, with over 5 GW of new capacity added in the first three quarters of 2022 alone. With the addition of lithium to the mix, the country’s renewable energy ambitions could be significantly boosted, making India a major player in the global green energy space.

India’s Lithium Discovery Could Boost Green Energy, But Creates Problems for the Region

While India’s lithium discovery has the potential to boost green energy, it also creates new challenges, as highlighted by an article by the Peterson Institute for International Economics. The report states that the discovery of lithium in Jammu and Kashmir has raised concerns about the environmental impact of mining, as well as potential conflicts with local communities over land use and ownership.

The report suggests that India must adopt responsible mining practices and engage in a transparent dialogue with local communities to address these issues. It also emphasizes the need for a clear regulatory framework that balances the potential benefits of lithium mining with its social and environmental costs.

An article by The Times of India highlights the potential economic benefits of India’s lithium discovery. According to the report, the discovery of lithium reserves in Jammu and Kashmir could create a new industry in the region, providing job opportunities and boosting local economies.

Furthermore, the report highlights that India’s domestic production of lithium could save the country millions of dollars in imports and provide a boost to the country’s manufacturing sector. With India’s focus on reducing dependence on foreign sources and promoting self-reliance, the discovery of lithium could be a significant step in that direction.

Conclusion:

In conclusion, India’s lithium discovery is a significant development in the country’s push towards electrification and green energy. With the potential to reduce costs, increase affordability, and accelerate the pace of EV adoption and renewable energy expansion, the discovery of significant reserves in Jammu and Kashmir has the potential to make India a major player in the global lithium market. While there are challenges associated with the extraction and processing of lithium, this discovery presents significant opportunities for India’s economy and its transition towards a sustainable future.

After taking a glance at how the US and Europe markets are gaining traction in the EV industry, we now proceed towards Asia. In recent times, the EV industry around the Asian regions has experienced huge developments. The Asia-Pacific electric car market is predicted to grow during 2021-2028 at a CAGR of 34.6 % by value and would reach $761.9 billion by 2028. The market would be driven by factors such as cooperative government schemes and regulations, hike in investments by leading automotive OEMs, and diminishing battery prices. Furthermore, the increase in endorsement of electric mobility in emerging APAC countries and increasing EV and battery manufacturing potential in Southeast Asia will lay out remarkable opportunities in this market. Yet, insufficient charging infrastructure in countries such as India, Malaysia, and Indonesia could block the growth of this market marginally. The high cost of electric vehicles and range limitation of EVs are few major challenges for the Asia-Pacific electric cars market.

Top players in the Asia EV market:

BYD: Ranked no. 1 in global sales for six consecutive years from 2014 to 2019, the biggest Chinese electric car brand BYD is the fourth largest electric vehicle manufacturer in the world today with a market share of nearly 6.5% reported in 2021. According to local Chinese reports, its monthly sales are already approaching 1 lakh units, the most popular model being e6. It expects to sell around 6 lakh battery electric vehicles (BEVs) and between 5 to 6 lakh plug-in hybrid EVs (PHEVs) during 2022.

Hyundai: Korean auto giant Hyundai Motor is the fifth largest EV maker in the world as far as sales numbers went in 2021. Starting off with Kona electric SUV, Hyundai has now drawn out its IONIQ family of electric cars. Hyundai is reported to hold nearly 5% of market share. Hyundai has also developed wireless electric vehicle charging system, in partnership with Kia.

The three major Asian countries/markets:

China, Japan and South Korea together lead in the field of electro mobility worldwide. While South Korea is strong in technology, Japan and China have a strong stand in terms of manufacturing and market size. According to Electric Vehicle Index 2021:

China:

China has been the world’s largest market for battery electric vehicles and plug-in hybrids since 2015, and will remain the largest globally until the end of 2030. But, the moderate 2019 and 2020 growth of China’s EV market, heavily affected by pandemic reflects both an overall decline in the light-vehicle market and significant cuts in EV subsidies. In response, the central government offered monetary incentives. The government also extended the purchase-tax exemptions of NEVs till 2022. These measures, along with the government’s commitment to advance billions of renminbi in the charging infrastructure as part of an economic-stimulus programme, could boost EV sales again.

Japan:

Japan accounted for the second-largest share of the Asia-Pacific electric cars market in 2021 by value as well as by volume. The large share of this country is mainly due to the increasing apprehension among the residents about the transportation alternatives, environmental impact of vehicular emissions, and gain in support of government for automotive OEMs and consumers via subsidies and tax rebates. The Japanese government has set a target of increasing the share of electric cars in new vehicle sales to 70% by 2030. The aspects that will lead to the progress in sales of electric vehicles in Japan during the forecast period are the news on the end of sales of new gasoline-powered vehicles by mid-2030, upgradation in battery capacities and driving distance of PHEVs and BEVs, increasing globalization of fuel cell technology, and large-scale expansion of charging stations and hydrogen refuelling stations subsidized by the government.

South Korea:

The EV market in the Republic of Korea has formed somewhat later compared to those in most developed countries, but even so, the domestic market size is increasing at a high speed. As of December 2020, South Korea had 92,400 plug-in passenger cars in circulation, of which, 84,070 were fully electric cars (91%). The government offers a purchase subsidy for electric cars and is planning to reduce the cost of EVs for its consumers by nearly 10 million won in the next four years. The goal can be achieved by focussing on local BEV production and supply chains. The technological advancements in domestic battery material will also play a major role in cutting down the costs of EVs. There will also be similar developments for electric trucks and buses working in deliveries and public shipment.

The Indian EV market is currently in its infancy and is estimated grow at CAGR of 90.3% from 2021 to 2030. In terms of EV sales, the numbers account to hardly 1.3% of total vehicle sales in India during 2020-21. At ‘Untapped Markets’, we believe EVs will become the vehicles of the future and major investments will soon start happening in the Indian market as well in the next 3-4 years.

Electronic Vehicle (EV) sales have surged, with growth in all three top auto markets: The US, Europe and China. Regardless of components insufficiency, pandemic-forced manufacturing disturbances, and longer-term fragility of the universal market, sales expanded by 160% in the first half of 2021 from a year earlier, to 2.6mn units, representing 26% of new sales in the global automobile market. However, EVs are expected to make up 20-30% of sales in the United States, European Union and China by 2025.

EV gaining traction in the US:

EV sales in the US have grown from a few thousand vehicles in 2010 to more than 315,000 vehicles annually from 2018 to 2020. States with zero-emission vehicle (ZEV) regulations were responsible for about two-thirds of 2020 US EV sales and less than one-third of overall light-duty vehicle sales. Although the US has third-largest EV market, but compared to China and Europe, the US EV market lags behind with only 250,000 EVs sold in the first half of 2021. However, the uptake in electric vehicles is taking place faster than previously thought, driven by government decarbonization policies of limiting global warming to 1.5 degrees (2.7 degrees F), falling battery prices and a growing number of models offered by automakers. A study shows that the states and cities in US with the most pronounced EV market success remain to have the most prominent policy supports. This growth in EV sales is also linked to enabling infrastructure like public and workplace charging stations for people without off-street parking and for longer trips.

New York and California signed on to the ZEV pledge, though the United States did not. A new report from global consulting firm Arcadis concludes New York and California are rival leading nations but given their physical and economic size, both states could capture greater market share. New York will need to focus on transitioning fleet vehicles to achieve its EV goals, while California could boost EV market share by building out charging infrastructure, the report said.

Top players in the US EV market:

#1 Tesla – Tesla leads the global electric car sales with Model 3 being the bestseller in the world and Model S as the longest-range electric car.  It sold close to 421,000 units in the first half of FY21, which translates into a market share of about 15%. Headquartered in Texas, the company is led by billionaire entrepreneur Elon Musk. In 2008, the company launched Tesla Roadster which was the first ever accessible EV passenger vehicle. Currently, it has four models in its portfolio: Model X, Model S, Model 3, Model Y. Tesla’s share price is presently trading at US$ 1,064.40. From 2020 to 2021, the stock price had increased by 44% on the NASDAQ.

#2 General Motors – Seeking to be at par with Tesla, General Motors (GM) headquartered at Michigan, is another US company investing billions to shift its entire new fleet to EVs as a part of a broader plan to become carbon neutral. After the automaker remarked that it wants to end production of its all diesel and gasoline powered cars, trucks and SUVs by 2035, it revealed plans to increase spending to US $35.0bn through 2025, a 30% increase from plans announced in 2020. GM plans to sell more than 1mn EVs annually by 2025. Its stock is currently trading at US$ 61.46, up 42% against US$ 40 in 2020.

Government initiatives:

The While House has declared headway on the Administration’s target to stimulate and deploy electric vehicles and charging stations, create well-paying union jobs, and set up a clean transportation future. This includes actions by federal agencies:

• President Joe Biden has set a goal for half of new passenger vehicle sales in the United States to be electric vehicles by 2030.
• The Department of Transportation provided enlightenment on how funds can be used to install charging infrastructure and newly designated alternative fuel corridors.
• The Department of Energy declared new grants and partnerships for charger-related research and development.
• The General Services Administration announced progress on the goal to transform the federal fleet to ZEVs.
• Biden’s American Jobs Plan includes a $15bn investment to fund a vision of building a network of 500,000 robust, convenient and affordable public charging stations that will increase drivers’ confidence that they will always have charging options when they need, although most vehicle drivers will charge at home or work.
• The American Jobs Plan also includes creating good-paying union jobs with safe working conditions in America along with promoting strong labour training and installation standards.

American Automakers have signalled that they are committed to transportation electrification and revolutionise the auto industry. At ‘Untapped Markets’, we believe that although sales are going in the right direction, extra measures are needed to completely capitalize on current drive and boost EV adoption into the mounting growth rate needed to acquire the peak point where change is irreversible. Investments in infrastructure and research & development, strong policy support at national and municipal levels, and coordinated global action taken today will determine if EVs can reach their full potential in the next decade.

Emerging players:

The top 10 logistics companies in India include: Container Corporation of India Ltd., Blue Dart Express Ltd., Aegis Logistics Ltd., TCI Express Ltd., Mahindra Logistics Ltd., Allcargo Logistics Ltd., VRL Logistics Ltd., Gateway Distriparks Ltd., Transport Corporation of India Ltd. and Gati Ltd.

Impact of the COVID-19 crisis:

Ever since the Covid-19 outbreak, more or less business conduct in every industry and every part of India has been affected. Logistics has been particularly hard-hit, without which only certain cottage industries may function. Even before the second wave of the disease began in 2021, the pace of recovery was unclear. The two key functions of the logistics sector: warehousing and transportation have been experiencing several challenges.

Warehousing- Ordering and maintaining appropriate quantities has now become all the more difficult because traditional forecasting techniques have become outdated. Most companies have minimized their product mix to devote warehousing to only vital products. The prevailing skepticism around supply, due to the pandemic might make producers want to keep surplus inventories rather than experiencing stock crunch. Smaller warehouses at multiple locations are preferred over large regional warehouses to respond better in case any unpredicted situation arises.

Transportation- The lockdown forced restrictions on movement of goods across government-defined zones and states, hence the use of suboptimal routes has increased. Railways being the only mode of conveyance operating without any restrictions, dominated the transportation during lockdown. A shortage of drivers raised the rental cost of trucks. To become more responsive to changing demand, companies are increasing their use of LTLs (less-than-truckload). Covid-19 intensified the emphasis on E-commerce, since urban consumers have shifted to online shopping in large numbers. To stay relevant post-pandemic, all logistics partners have to keep up with the shift to digital economy.

Innovation in the logistics sector:

• Third-party (3PL) and fourth-party (4PL) logistics service providers to handle complicated supply chain issues coming to light.
• Development of Multimodal Logistics Parks (MMLPs), well-organized economic corridor routes for orderly delivery, and intermodal stations to connect discrete modes of transportation to make business unification certain.
• Integrated cold chain and safeguarding infrastructure space using high-end technology, without any obstacles, from the farm gate to the consumer.
• Use of durable and eco-friendly base for e.g., using fleet of electric vehicles for last mile delivery.
• Increasing investment into Logistics start-ups to propel growth and advancements in the sector.
• Digitalization of logistics sector by installation of artificial intelligence, blockchain, and other technological solutions to promote the free flow of data, reduce human contact and solve other inefficiencies is an urgent need in order for the sector to survive in the long term.
• Driverless vehicles, wearable devices, warehouse digitization/automation to attain operational regulations to counter supply-chain cost pressures in the sector.

Initiatives taken by the Government of India:

Strong growth supported by government reforms, transportation sector development plans and growing retail sales holds the potential to drive the growth of this segment and contribute up to 25%–30% of the GDP by 2025. The E-commerce sector is becoming extremely popular with the introduction of online payments such as Amazon Pay, Paytm, Gpay, and new popular delivery apps. The “Make in India” initiative is envisioned to provide goods that will be produced and transported to markets at reasonable prices. The National Logistics Policy to be released by the Government aims to promote seamless movement of goods by focussing on several areas such as process re-engineering, digitisation, focus on multi-modal transport, EXIM trade etc. and will look at improving logistics in core sectors. Effective implementation of the policy would help provide an impetus to trade, enhance export competitiveness, and improve India’s ranking in the Logistics Performance Index. The Multi-Modal Logistics Parks Policy (MMLPs) is another key policy initiative of the Government of India to lower freight costs, reduce vehicular pollution and congestion, and cut warehouse costs to promote domestic and global trade. The developments of Bhratamala Pariyojana and the Sagarmala projects and the Eastern and Western Dedicated Freight Corridors are expected to boost the industry.

At ‘Untapped Markets’, we believe that with further investments in the logistics infrastructure, government initiatives and e-commerce growth, we could witness a lot of innovations in this sector and ample opportunities for growth for players who are able to differentiate their proposition in the market.

Statistics (as of FY20):

Individual European markets shares of new EV sales: Norway (75%), Sweden (32%), the Netherlands (25%), Finland (18%), Denmark (16%), Switzerland (14%), Portugal (14%), Germany (13%), France (11%), Belgium (11%), and the United Kingdom (11%).

Model availability at national level: Germany (132), the Netherlands (112), the United Kingdom (110), France (110), and Norway (109).

Amount of installed public chargers: The Netherlands (65,600), France (46,000) and Germany (44,700).

Ratio of EVs per charger: The Netherlands (4.6), Italy (7.5), Finland (8.9), Sweden (20), Norway (25).

Top players and bestselling models in Europe:

#1 Volkswagen (Germany): It’s the world’s third most popular EV manufacturer with a goal to produce 50 electric car models by 2025, by investing over €30bn into EV related technologies. It also aims for the majority of its vehicles to be zero-emission worldwide by 2040. The automobile group itself aims to be carbon neutral by 2050. VW offers two EV models: the e-up! and e-Golf. The company owns 12 renowned brands including Porsche, Audi, Bentley, Bugatti and Lamborghini. The VW group holds 10% market share in EV and sold 290,000 EVs in 2021.

#2 Renault Group (France): Renault Group was the first to believe in all-electric mobility, and still leads the way. Standing at the second position, after Tesla, Renault Group represents more than 15% of all EVs sold in Europe in 2020. On a global scale, around 460,000 EVs have already been sold by the group. Models of electric vehicles by the Renault-Nissan-Mitsubishi alliance, for example, the iconic Nissan Leaf and Renault Zoe, are created to have a decent range with zero-emission. The cars are designed for mass market and are responsive and smooth.

Bestselling EV models in Europe: Renault ZOE (15%), Tesla Model S (14%), Mitsubishi Outlander PHEV (10%), Nissan LEAF (8%), BMW i3 (7%), Hyundai IONIQ Electric (4%), Volvo V60 Plug-in Hybrid (4%), Opel Ampera (3%), Tesla Model X (3%), Volkswagen e-Golf 2017 (3%) and others (29%).

Government stimulus:

• Governments in countries with major OEMs are prioritizing the improvement of EV automation with the ambition to evolve the technology and keep the value chain in the country.
• The European Union’s new emission standard of 95 grams of carbon dioxide per kilometre for passenger cars and light commercial vehicles (LCVs) stipulates that 95% of the fleet must meet this standard in 2020 and 100% in 2021.
• Government is devoting funds in EV infrastructure and mobility programs to stimulate supply: For some years already, government investment in Europe has been towards EV-related R&D. Many governments are financing EV-supporting infrastructure (e.g., charging stations, special parking spots). Governments are also proving to be constant pillars for mobility programs, which address environmental issues, congestion problems, or both.
• Subsidies, tax breaks, and special driving entitlements encourages demand: Many European governments and cities (e.g., Norway, Denmark, the Netherlands, France, UK, as well as Oslo, Amsterdam, Paris, and London) are impelling buyers to opt for electric mobility, each with their own schemes. Purchase, lease, and road taxes are among the burdens being relaxed by governments to make EVs a more appealing choice to customers.
• Another push for EV growth from the governments of most major European countries comes from the desire for higher energy independence and a shift towards a less oil-intensive transport sector.
• Other benefits offered by governments (mostly cities) includes the use of special driving lanes, preferential or free parking, and waiving of toll fees.

The trajectory and ultimate scale of adoption of EVs in Europe remains uncertain. However, at ‘Untapped Markets’ we believe that the developments to date and some indicators looking forward suggest significant potential in the market.

Start-ups emerging as players:

According to a report by NASSCOM, the Indian Government with its ‘Start-up India Programme’ categorically assists AgriTech start-ups, which are clearly leading India’s next Green Revolution. The agricultural industry contributed roughly 19.9% of total GDP in FY21, increasing from 17.8% in FY20. The Indian AgriTech market nearly contains 600-700 start-ups of which five promising AgriTech start-ups helping Indian farmers are:

1. Ninjacart: raised $164.2 mn in FY21
2. WayCool: raised $60.8 mn in FY21
3. AgroStar: raised $42 mn in FY21
4. DeHaat: raised $19.3 mn in FY21
5. Bijak: raised $14.3 mn in FY21

Indigram Labs, a Technology Business Incubator aims to incubate 100 AgriTech entrepreneurs over the next five years. By FY25, the market is anticipated to grow at a CAGR of 32.0% in terms of revenue.

Application of Digitization Tools in Agriculture Sector:

• Responsible administration and monitoring of farmland
• Avoids usage of surfeit pesticides, fertilizers and lowers overall water utilization
• Expands agricultural productivity and minimizes expenditure
• Hinders soil degradation
• Raise socio-economic status of farmers
• Enhance safety at work
• Reduce environmental and ecological aftermath

Today, numerous digital technologies have come up shaping the agricultural value chains and rejuvenating operations by enabling farmers maximise their output. Remote sensing, soil sensors, unmanned aerial surveying and market insights, etc., not only help farmers collect, envisage and evaluate crop and soil health conditions at different stages of production, but also provide an early signal to identify the challenges and deal with them in a timely manner. Artificial Intelligence/ Machine Learning (AI/ML) algorithms can generate real-time actionable insights to help improve crop yield, control pests, assist in soil screening, provide actionable data for farmers and reduce their workload. Blockchain technology offers tamper-proof and precise data about farms, inventories, quick and secure transactions and food tracking, so that farmers don’t have to be dependent on paperwork to record important data. Projects based on technologies such as data analytics, big data, satellite imaging, IoT, GIS technology and use of drones and robots are also proving to be successful.

Initiatives under Digital Agriculture Segment in India:

The need for digitization has become a national interest and hence necessary initiatives are also taken towards the same.

1. Digital Agriculture Mission 2021-25 (2021)
2. The Jio Agri (JioKrishi) platform (2020)
3. Agricultural Digital Infrastructure (ADI) solution (2019)
4. National Agriculture Market (eNAM) (2016)
5. Soil Health Card Scheme (2015)
6. Direct Benefit Transfer (DBT) Central Agri Portal (2013)

The Indian Government has introduced Digital India, a platform to provide the farmers of India in urban and rural areas, various government services electronically through digitally enabled devices. It has proven to be a boon for Indian agriculture. Other initiatives like E-sagu, Community Radio (CR) and digital green are also considered to be brilliant initiatives.

The Future:

• The distinct small-holder farms in the country make the process of data gathering complex. Farmer Producer Organisation (FPOs), a group of small farmers should be formed so that even if they individually have less than 2 hectares of landholding but when they unite, they may have hundreds of hectares and implementing technology becomes a feasible option.
• Limited penetration of mechanisation tools and recurring adversities like drought, floods and excessive monsoon, have negatively impacted the deployment of digital solutions in the sector. Customisation is the need of hour and should be implemented to each Indian farm.
• Low-cost technology and equipment rental services are required. As typical Indian farmers are small, plug and play hardware has good opportunities in Indian market.
• The government should take steps to educate the farmers, take time-to-time feedbacks to understand whether the projects are proving to be helpful for them and encourage them to share ideas and suggestions so that better facilities can be provided.

While many countries have already taken huge benefits from these modern solutions, we at ‘Untapped Markets’ believe that acceptance in India is still at a very nascent stage but it will enhance sustainability, accelerate growth and revolutionise agriculture in the coming few years. Yes, there are a plenty of obstacles but when there are challenges, there are opportunities to be delved into as well.

Amazon Care:

Launched in September 2019, Amazon Care provided Amazon employees and their families immediate access to quality medical care and avoid lengthy wait and travel times to get medical attention. By providing these services, Amazon was investing in the well-being of arguably their most important asset: their employees. Until March 2021, the services were exclusively available to the employees and their families in Amazon’s home town Seattle, but Amazon is now quietly expanding into the $3.8 trillion medical sector. The tech giant has filed paperwork to operate in all 50 states across the US.

Amazon Pharmacy:

The company has announced pharmacy services delivering medicines door-to-door. To place an order, users mandatorily have to first set up an account entering primary details and clearly specifying if they are allergic to any sort of medication. They will also have to submit their health conditions. Doctors can then directly send prescriptions to Amazon Pharmacy and patients can also convey transfers from their existing retailers. Amazon Prime members can enjoy special benefits and discounts on medication. Amazon Pharmacy has been launched in the United States and is supposed to go live in 45 states. It will not be available in states including Hawaii, Illinois, Kentucky, Louisiana, and Minnesota. There has been no announcement until now to know if Amazon will launch this feature in other countries including India as well.

Impact on healthcare market:

With zeal to become a global player in the healthcare market, Amazon is receiving mixed reactions on their initiative, some say that Amazon is disrupting the complex prevailing healthcare system in multiple different ways, others say it will open employment opportunities for physicians. Nonetheless, doctors and private clinics all over the world will have to fear the competition with Alexa’s home diagnosis systems. However, the other players should think of how to take advantage of the digitalization by digital business innovation leveraging their core competencies, rather than pushing themselves back.

Features of the Amazon telehealth:

Telehealth is a growing sector, and Amazon promises far more than one-off visits with remote physicians. It will not be a standard clinic which we know of today. Rather, Amazon will apply its data driven mechanics which will permit an effortless management of connected healthcare databases for quick application development.  According to an industry study, before COVID-19, around 11% of US consumers were using telehealth appointments which have now risen to 46%. Some advantages of telehealth services are listed below:

1. Order-tracking potential
2. Scheduling appointments in no time
3. Ease of setting up a new user
4. Price transparency
5. Freedom of choice for packaging
6. Fast medicine deliveries at home
7. On demand vehicles for patients
8. Online web chat
9. Shared account security
10. Analytics to prevent adverse drug events (ADR)

The Road Ahead

The road ahead is not devoid of potential hurdles for the company. Walgreens, Walmart and other companies have earned a loyal consumer base over past many years and earning customer trust will hence, be challenging. Consumers will be concerned about data security and privacy although Amazon has potentially built necessary reassurances. Amazon Pharmacy does not presently provide same-day delivery and hence can cause a problem in situations where the consumers will require the medications same day itself. There can also be a fear of package theft and Amazon must assure reliability of delivery.

With Amazon’s excellent adaption to their core capabilities to collect, analyse and interpret data and the company’s expertise in speed, building consumer loyalty, and scalability, we at ‘Untapped Markets’ expect a significant traction for Amazon in this segment. The multi-pronged approach will soon scale up and Amazon will emerge as a leading telehealth operator and will offer innovative data driven treatment options.

In conversation with Mr. Venkata Radhakrishna Thatavarti, Founder- OxyLoans.com, we attempted to seek his opinion and understand his side of the story to the P2P lending market in India. Here are some excerpts of the interview:

Q1. What inspired you to start OxyLoans and can you describe your journey towards acquiring 22,000+ borrowers?

Two things, first I wanted to do something really big and really meaningful. I have seen people selling services such as airplane tickets, movie tickets, then I thought one thing that could be interesting to sell online, and that would be money. Then to put my idea into action, I had to aggregate money, that’s when I learnt about P2P lending. When you sell money in the form of lending or investing, borrower buys money and then he or she repays it with a profit. We started our operations based on blockchain technology without any borders and open to the world. However, when RBI mandated the licences for P2P lending and made only the PAN card holders as part of the eligible borrowers, we pivoted our operations a bit.

Secondly, as quoted by Uday Kotak “If Indians understand P2P lending, banks will have to rethink about their FD and loan interests”. It’s only a matter of time. If people know how to lend money and it is RBI approved, they will be willing to take the risk. Lending is something we are habituated traditionally, every home does lend to other, so every home is a bank and this is what inspired me to start Oxy Loans.

Our user base has grown in last three months, we have 3,00,000 + users out which 60,000 + are investors and rest are borrowers. We did a study PR and we only use LinkedIn and Facebook to communicate the message and a couple of press releases. We know this is a very long-term business and we have to stay long and cash burning will not help. Lending and borrowing are not the kind of business where we can give a 1+1 offer or any cashback on bill payments as it is purely money. So, we decided to stay calm and build our trust among consumers first, as a result we have seen 3x- 4x user base growth and that’s how we have acquired new users consistently.

Q2. What were the initial challenges you faced in setting up OxyLoans?

In India, any concept needs 8 to 10 years of waiting period or some big player has to come into the market to educate customers. Although, P2P is traditionally known to everyone but one of the biggest fears is what would happen if government catches hold of the money or if the individual becomes a scapegoat of the economic change.

Q3. Please tell us about your current presence and expansion plan.

Currently, we are in Hyderabad and Bangalore. We have a Pan-India recovery team and all our lending and borrowing operations are in online mode. The current business we are doing will definitely grow massively and then we will expand to Pan-India in next 24 months with a strong recovery arm. Recovery arm is very important and we have a perfect setup for the same.

Q4. What do you think are the current challenges regarding P2P lending and investing in India?

The fear of putting money in P2P lending among the minds of investors (lenders) is a major concern currently in the market. Only salaried class are coming ahead to invest in this market owing to their income stability and better awareness. However, this pattern is expected to change, as more and more people get to know about digital money, we can expect higher participation from different classes of investors/lenders and borrowers in the market.

Q5. What are some of the recent trends in the P2P industry to keep an eye out for?

The entry of ICICI, Cred and BharatPe has opened doors for everybody. So, in near future, we can expect companies like Pine labs, Google Pay, Flipkart whosever who have user base whether big or small will come into P2P market by tying up with licensed operators to start offering P2P lending as a service.

One big change which can happen in the market is, if the government announces tax benefits on P2P lending, which may result in lot of new trends which are tough to imagine, but every financial product will then be reengineered basis the P2P lending framework, where any individual with a PAN card will be able to lend or borrow money in the market.

Q6. What is the specific impact of Covid on the fintech industry? What are the key trends that you have observed in consumer behaviour towards digitization post Covid?

I have seen positive results on fintech due to Covid-19. A lot of banks now have moved towards digital offerings and fintech companies saw this as an opportunity to connect individuals and banks together. With borrowers seeking sources of loan online, investors/lenders also jumped into the same bandwagon and moved online, which resulted in faster growth of P2P lending platforms in India.

Q7. How does OxyLoans handle defaults? How much is the default percentage?

We have a proper recovery team. We love our borrowers and educate them about the credit scores and defaults. We use normal channels of connecting with borrowers such as calling, connecting on WhatsApp and sending people to home with a soft note. We do have inhouse and outsourced team to take care of recovery Pan-India.

As of today, the default percentage is less than 4% which is commendable as it is way below the industry average of 10% + and luckily, we have done limited lending due to which our NPA is also less.

Q8. What marketing measures do you plan to implement to attract lenders and borrowers?

To attract lenders and borrowers, we use digital platforms such as Instagram, Facebook, Twitter etc. Apart from these standard options, we use paper advertisement and bit of peer activities. But what we are seeing now that instead of acquiring new users, P2P lending companies are partnering with companies who already have an established user base. In August 2019, Cred formed a partnership with one of the P2P operators in the industry to offer their services. So being an RBI licensed vehicle, P2P companies can now partner with organizations with a user base to reduce their marketing cost.

Q9. How is OxyLoans different from its competitors? Can you name a few major companies in this sector?

So, what I have understood in the competition landscape is that recovering efforts are minimal. No matter how many algorithms we write, the lending and borrowing industry has a very strong need of a robust recovery arm. We have put a strong recovery team and on time recovery is one of our core strengths.

Secondly, we use AI to understand the borrower’s behaviour and predictivity. But still its secondary to our recovery arm which is necessary to survive in P2P lending market.

Faircent, LenDen Club, LiquiLoans, CashKumar are some of the other major players in the market. We trust that we are in the top 5 and we are doing a good business, we have large growth opportunities, we are tying up with banking securities and large organizations to increase the supply and demand of money.

Q10. Cred recently entered the P2P industry, what would be the effect of the same on the industry?

Cred’s entry into P2P lending is the biggest and largest advantage to the industry as they will spend a lot to educate customers. They have opened the game but they might not win it to my knowledge as their offering is only 9%. There are other players such as BharatPe which offers 12% returns. But these rates are still not attractive to investors. However, all this competition and players visibility might help educate the customers more about the market offerings and may push them to join the bandwagon.

Q11. How P2P lending platforms could transform the consumer lending industry in the future? Where do you see this industry in the next 5 years?

P2P lending Industry will enable the complete lending market to transform. People will massively participate in the industry, they will start taking more risk, industry will support it and financial planners will start talking about P2P lending. So, we will see upside growth in the industry in future.

For the next 5 years, there will be rise of 10 unicorns. In 2022, you will see 3 unicorns, 2023 another 3 and 2024 another 4. This is something to watch out as P2P lending is the largest vehicle which can help to raise the demand and fulfill the supply. I believe this is going to be massive.

Myntra’s data-backed understanding of customer buying trends, along with the influencers’ expertise and understanding of the domain, made this event quite successful. Walmart-owned Flipkart will also launch its live commerce platform soon. The e-commerce company had last month announced its partnership with homegrown short video platform Moj to enable video and Live Commerce experiences to engage the next 200 million e-commerce customers.

American retailer Walmart has been investing in live shopping by hosting events across social platforms such as TikTok and YouTube in a massive way. On November 28, it will debut Twitter’s first-ever shoppable live stream where users will be able to watch a live broadcast, shop the featured products and join the conversation around the event by posting tweets. No surprise that Google’s YouTube, Facebook, and Twitter are also experimenting with this format by conducting various live shopping events on their respective platforms in the United States.

Indian advertising is also poised to make huge inroads into the live creator-driven commerce space especially for the younger population. The live or video commerce segment in India is still in its nascent stage but has a huge potential to be the next big thing in the content space considering mobile and data penetration in the hinterland and Indians’ obsession with the video formats. It may reach USD 4-5 billion Gross Merchandise Value (GMV) by 2025 as per few industry reports. Consumers are moving from traditional transactional e-commerce environments to one that incorporates social engagement, fun, and storytelling at the core of customer experience. Other Indian e-commerce players which are using live commerce include Bulbul and Simsim.

Mobile shopping has dramatically changed the digital ads segment. Traditional commerce is still popular but the ongoing pandemic has changed the consumers’ behaviors totally. India has a huge potential for this platform as we have a very strong celebrity culture. Celebs are using their own social media platforms to further the brands and monetize or join the live sessions of the brands where both can monetize. Both formats will continue to grow since mobile payment is rising fast.

In India, out of 1.3 billion people, a third (more than 400 million) already had access to social media before the pandemic. This number has surely skyrocketed in the last 18 months and there is a significant shift in consumer behavior that is the real fuel for the growth of the segment. Over the last few years, brands have shown significant interest in influencer marketing. The pandemic has accelerated the adoption of influencer marketing by brands making it an integral part of the brand marketing strategy and is now an important part of our media mix recommendation to brands. The key factor that has got brands interested is the bond of trust and authenticity that influencers share with their audiences, thus helping brands associate with an influencer to leverage the same.

Personal care 25%, F&B 20%, Fashion & Jewellery 15% and Mobile and electronics 10%; contribute 70% volume of influencer marketing. On the influencer radar, celebrities contribute 27% while influencers contribute 73%. Nearly two-thirds of the Indian population follow an influencer. Brands can probably interpret that influencers and creative storytelling correlate with brand differentiation, a key advantage as attention spans get shorter.

Influencer marketing industry is at a point of inflexion and can take off, subject to the industry initiating to measure, quantify and make investments in influencer marketing accountable.

Source: Industry Articles. Statista