Good rules should be designed for higher adoption

How do we drive adoption for rules in a country, a community?

Should a good rule be easily enforceable too?

I think it should be.

If we want to build a society where most follow the rules, enforceability should be an important criteria.

To decide whether a new rule should be introduced or not. Whether an existing rule needs to be modified or scrapped.

Why?

It is my belief, that when we have rules that can be easily broken without any consequences, it sends a signal to the community. And this signal usually leads to a gradual loss of respect for the law of the land and for the fellow citizens.

 

A good rule should be easily enforced

Let me explain with an example of two rules, which most of us are familiar with

  • Front seat passengers should wear seat belts while traveling in a car
  • All vehicles should have a valid pollution-under-control (PUC) certificate

While both these were introduced in the last 20 years or so in NCR, the first one has seen significant levels of adoption whereas we all know that very few cars and bikes have a valid PUC certificate.

Why?

If you ask me, the reason is very simple.

For seat-belts, the fact that you are complying (or not) is visible each and every time you are driving. Any traffic-cop who sees you not wearing the seat belt can pull you over and issue a challan. So you run a very high risk of being punished if you are out on the road w/o wearing your seat belts.

Contrast this with the pollution certificate rule.

A traffic cop on the road has no clue if your vehicle currently has a valid PUC certificate or not. Hence the cop would rarely pull you aside asking for the certificate. It is usually asked for when you have already been stopped for some reason and they feel that they might put more pressure on you if you are w/o the PUC. Hence as car owners, we are usually not very afraid to drive w/o this certificate. The risk is just too low. And hence very few cars actually have a valid PUC certificate.

So while almost everyone knows that the laws need them to drive a non-polluting vehicle, very few actually end up doing so.

And I think its very simply just the issue of how easily the rule can be enforced.

In my opinion we should have few rules, but all should be enforced strictly.

What do you think?

Unit Economics in the times of Auction Marketing Models

Unit Economics is all we hear these days in the consumer technology world. Unfortunately for many start-ups seeking venture funds, this is the biggest hurdle they need to cross to build a strong case for their business.

What is the concept of Unit Economics

I will not go into the definition and relevance of Unit Economics. That’s well documented here and here. Or just Google it.

Lets refer to Microeconomics 101 for our discussion – Marginal Costs(MC) and Marginal Revenue(MR). We all know that its a healthy sign if Marginal Revenues are higher than Marginal costs. And this delta (MR-MC) is what is unit economics.

On the other hand, if we are losing money on each transaction, either we see the losses reducing or we stop growing transaction volumes.

At least rational individuals would choose to do so. Or so goes the basic Economics assumption.

Unit Economics in web/mobile start-ups

  1. Marginal costs are volatile

A big chunk of a start-ups costs is the customer acquisition cost. ( I am excluding businesses with very high repeat volumes in early days where the operating costs contribute heavily to the overall transaction costs).

Most start-ups need to market their products and services. They are in a continuous state of transaction ramp-up along with concurrent improvements in experience or efficiency.

And in a world where most advertising/marketing channels are bid/auction model driven – this translates into the marginal costs being highly volatile. How volatile?

  • In the early days when you don’t have the luxury of brand-pull or of time, almost 60-70% of transactions may be coming from Google Adwords/Facebook/Ad-networks. Meaning 60% of your business is not insulated from pricing shocks.
  • Bid-rates may vary as much as 30-40% to maintain the same positioning. Maybe more, if there is a competitor who has just raised a round. Also, if you are competing in a category where big brands play, anything can happen. E.g. At Deal4Loans, we had seen bid-rates on our key-words jump significantly every time a competitor raised venture money or a bank launched a new digital campaign.
  • Add to this that the conversion-rates of your campaigns have not yet stabilized. Remember, these are early days, you are experimenting on your landing pages, and funnel optimization is still underway. So the final cost per account gets even more volatile.

2. Customer Pricing is relatively in-elastic

Theoretically, if you could pass on the burden of increased bid-rates and hence the ups/downs in marginal costs on to the consumer, your unit economics would be safe. The neighborhood vegetable vendor who has daily-prices does exactly this and is hence able to retain his margins.

Unit Economics

But this is rarely possible. Pricing is just not that elastic.  Most mobile/web start-ups can not /do not change prices so frequently.

3. Marginal Cost CURVE is UNPREDICTABLE AND NOT SMOOTH

We know that the bid-rates can inflict wild fluctuations(as seen in pt1) in the cost of acquisition, thereby making it unpredictable. But a bigger challenge is that the Marginal Cost curve is not smooth.

Realistic MC MR Curve

One rarely finds gradual changes in marginal costs with increasing through-put. It happens in unpredictable steps. Here’s why

  • Each fluctuation in effective bid-rate leads to drastic ups/downs
  • As a start-up you are experimenting with multiple channels. Success in any one will bring down the blended MC immediately.
  • Referral/Viral coefficient and % of in-bound of the campaigns can impact the costs significantly. e.g. One PR mention may bring in huge self-select traffic.
  • SEO traffic which is typically very predictable can also swing wildly with a new Google update as we saw with Penguin and Panda.

So what do we do?

  • Keep Experimenting. Do know that customer-acquisition at optimal price is a moving target. You are never really truly there. It can always be better.
  • Invest early in content. In-bound has significant ripple effects.
  • Raise money but don’t throw it all on branding. Consumer memory is short lived. Discover and test more channels, unlock access to more segments.

I would love to hear from bootstrapped ventures as to how they are/have handled the customer acqui costs. What worked, what didn’t?

Public policy, ripple effects and feedback loops

I have always been intrigued by product design and by extension policy design (& implementation). If the government were to look at itself as a start-up technology venture, the policies, schemes and guidelines issued by the government would possibly be the “products” of this venture.

And like any good product manager, one should study not just the immediate impact of change(s) in product design but also the delayed and maybe stickier changes in consumer behaviour.

And that is what I want to share with you today.

Shift in dietary habits due to Green Revolution

Sometime last month, I was visiting an uncle of mine – someone who is in his mid 70s, reasonably fit, exercises regularly and has borderline diabetes. While we sat at the lunch table, I noticed that he had multiple other grains in his roti as against mine which was from just wheat atta. It seems most physicians recommend adding ragi, chana etc in your atta mix as a healthier alternative.

And that’s how our conversation began.

Wheat Green Revolution

And what came out was quite surprising for me.

It seems in their childhood days in villages of western U.P., wheat was not the staple grain. Infact it was considered a delicacy and wheat-chapattis were made when they had guests over. And he comes from a well-to-do farmer family. This was not because of economic constraints, it was just how things were.

So as the elders started talking about this significant shift in probably the most important component in a typical North-Indian meal – roti – what emerged was that the shift was triggered by the Green Revolution in all probability.

This lunch group which included scientists and government employees, agreed to the following sequence of events:

  • Wheat was one of the chosen candidates for green revolution . Though am very curious to find out why?
  • Government stepped in on the supply side with higher yield varieties, irrigation support etc
  • It also created artificial demand by setting up floor prices thus encouraging farmers to grow wheat. Making wheat a critical component of Public Distribution System also ensured a big buyer for wheat at these prices. This in turn ensured that a higher percentage of land under cultivation now got sowed with wheat
  • This brought the otherwise-considered-premium grain into the middle-class households at a very affordable price. Imagine if suddenly, you find yourself able to afford an item which for years or maybe generations was considered premium, chances are you will buy more of it to feel good (my assumption)
  • And they all started eating wheat more, skewing our diet heavily towards this singular grain in North India.
  • And the subsequent generation(s) like ours has come to believe that our rotis have always been a wheat-only product. Coz wheat rotis is what we ever saw.

Am also very clear that India’s self-reliance on nutrition has been contributed heavily by progress on wheat and rice. So there’s no doubt that this has worked as planned.

The fact that wheat may not be the healthiest grain is probably something new. Gluten intolerance was probably unheard of during the Green Revolution.

But with the new facts before us, should the government re-evaluate its focus on just a handful of grains in its policies.

What if, the support prices on wheat are relaxed a bit? What if other “healthier” grains are encouraged similarly? Will the cost of managing supply chains and warehousing for multiple grains offset the advantages of a wider-spread in our diet?

Many questions and I don’t have any answers.

Low availability of fodder for cattle

Ask any elder who has seen standing wheat crop in the fields now-a-days vs in the old days. One thing they would tell you is that the wheat crop is now stunted. Its much much shorter.

This am told, was probably one of the biggest breakthrough in developing High-Yield-Varieties. The nutrients and water is no longer “wasted” in the growth of the non-grain-yielding parts of the crop.

But on the flip side – this has increased the cost of cattle-management for local farmers. Why?

There just isn’t enough fresh fodder for the cattle. The non-grain part of the wheat crop was used as fresh and dried fodder for the cattle that the farmer had at home. This is gone.

As my friend (who runs a dairy farm) tells me, procuring fodder is now a big challenge in most regions.


I am not an economist or an agriculture scientist and probably have understood just a very small part of the whole picture here.

But I learnt few important lessons from this lunch conversation :

  1. There are usually multiple ripple-effects of any new policy change ( or product change)
  2. While the product may deliver on the core metrics initially identified as measurements of success, we should zoom-out and ask ourselves, what else has changed
  3. I should start eating healthier. Right now  🙂

Showing Contact Addresses in Google Maps

Quick Summary:

Here’s a small product feature recommendation for Google Maps on Android. Currently when I am in Google Maps and typing in the search box, it throws results that match with Google Places directory on the web. If it also throws matches with local contacts in the phone (or Google account) that have an address field added, it will ease usage.

Google Maps & Contacts
Background:

A quick background will help understand the use-case much better. I was travelling to Jaipur and wanted to go to my friend’s place in Bani Park. I had asked him for his address the day before and stored that in the phone’s contact against his name. Now when I was close to Bani park and looking for exact directions to his place, I had to

  • go to the Contacts,
  • search for his name,
  • View and copy the address,
  • Close Contacts and open Google Maps,
  • click on search(in GMaps) and paste the address (without the door number etc),
  • See the matching list of places from Googles Places directory,
  • Choose the right one and get started

Recommended Solution:

It would have been so much easier if

  • I go to G Maps
  • Click on search and type the friend’s name
  • IF there is an address field against it, gets thrown up
  • [CHALLENGE] – Smartly remove the part(s) of address like door or flat number and match it with Google Places
  • Get started

Better still would be if
GMaps and contact addresses
Once I have used the (text based) address for directions inside maps for the first time, it asks me to “pin” the place on the map when i reach my destination,so that an accurate latlon (latitude longitude) can be entered in a hidden field against this address.

If this pinning of a text address is done, it can add more wow – as soon as I open up Google Maps at a particular location, it can show me my pins in the vicinity – no more typing or searching needed – just choose the pin for directions and get started.

What do you think?

Is this something that would make your GMaps experience better? Do let me know in the comments section below – will love to hear your feedback.

#Android #GoogleMaps #GMaps #Google

SMS is reborn as an acqui channel in the Smartphone age

In the early days of Deal4Loans, we used to get a lot of traffic and leads through SMS campaigns. Especially for products like Personal Loans (Simple pitch and high-urgency in a need based product)

SMS reborn in smartphone ageDuring those days, NDNC (National DO NOT CALL) list was not introduced and there were very few players who were sending bulk SMS for lead generation. Response rates were high.

Market quickly figured out that this was a cost effective and easy channel to scale up. A tsunami of SMS campaigns started to happen and finally the National government had to intervene with its NDNC initiative.

And while SMS acquisition campaigns have largely died out, it seems to be back again.  And with even more potential.

In a recent campaign we closely observed, a bank reached out to a select base of consumers through SMS and emails. The resulting traffic on the portal was significantly higher in case of SMS.

Why?

Apart from all the other factors (higher delivery rates, targeting time of intervention), now most recipients have a 3G or Wifi enabled smartphone, where CTAs are simple. This campaign had a short URL taking to the Landing Page after a crisp text talking about the offer.

Lesson learnt:

If you can withhold the temptation to abuse your mobile registered users, SMS can deliver amazing results even in marketing campaigns.

3 tips for New To Bank Acquisitions – Digital Banking Toolkit

Why Online Acquisitions

Acquiring New To Bank (NTB) customers is a key agenda for most Digital Heads at Banks.

Its only logical that online acquisition budgets are getting bigger, given the following:

  • Consumers are spending more and more time online. Digital is the best channel to start a dialogue
  • Digital channels are tracked exhaustively. You can measure the return on each dollar spent.
  • Digital channels allow data to flow at higher speeds. This could translate into better context, targeted products, straight-through-processing, upfront checking of applications etc etc.
  • Tablets have provided the ideal form-factor to do an assisted digital sourcing, as has been proven by the success of ICICI Bank
  • Regulatory changes are also making it easier to acquire online – Aadhar database, eKYC, wet signatures to go away in some instances etc.

Here are 3 seemingly simple tips for anyone who is doing NTB acquisitions today at a banking set-up.

Choose the right on-boarding product

choose-productWhich product will you focus on to get more customers into the bank?

Many would say, we do not have a choice as each business line would be relying on the support of digital channels. Be as it may, it might be prudent to take a step back and understand the advantages of choosing a particular product for consumer on-boarding vs another.

  • Do we reject a lot of applicants for this product. Typically in case of credit cards and most loan products, the rejection rates are high and hence we need to sieve upfront to reduce the cost per lead or cost per account. Are there other products in the portfolio which have lower rejection rates e.g. most liability products may fall in this category
  • Does the product start giving me more data and insights about the customer? Can I build strong contexts to pitch the next product. Any payment product would be a good bet as it starts building a lot of relevant data points about the customer.
  • Is this being sold or the customer has a well articulated need? Loans should see a higher conversion as against credit cards because the customer has a need. But the scenario may change if the card is free and loaded with offers.
  • Is the process straight-through? If not, how many steps are there? The higher the number of steps, lower would be the conversion rates.
  • Competition – given that you are not the only bank trying to talk to the customer, the kind of marketing money it takes to interrupt a customer would increase for the segment with higher competition. Back in 2007 the bid rates for Personal Loan keywords moved almost 100% in less than 6 months. Every bank in India was focusing on acquiring Personal Loan customers.

Manage the Drop-out funnel

With all the tools available for tracking, doing A/B testing it is so much easier than before to manage the drop-outs in the acquisition channel. Over the years, industry has also learnt and created a best-practices library. Use it. E.g.

  • Acquiring through partners who have data on customers is more efficient and reliable. This is why most banks are exploring SME financing through ecommerce platforms.
  • Allow applicants to save applications and continue later. Across channels.
  • Build for a true OmniChannel experience. As the customer journey will definitely toggle devices
  • Provide for assisted filling of forms. What might sound simple & easy to you may be confusing to others
  • Authenticate the communication fields upfront (email, mobile). This allows you to follow-up on leads more proactively.
  • There are no permanent rejections – a customer who is not eligible today may be eligible tomm. Except may be those who are already over age :-).

Build data-led acquisition platforms

Data - Led AcqisitionsWhat has changed significantly in the last decade is the amount of data prospects and customers are generating across various channels and touch-points. The future (if its not already upon us) of digital acquisitions is data-led.

E.g. acquiring SMEs for working capital financing can happen in multiple ways:

  • Bidding on search engines for loan keywords
  • Putting up banners on B2B portals
  • Showing banners to specific SMEs on a B2B portal basis some cuts
  • Deep integration with portals to get fresh data about SME’s transaction, reputation, growth trajectory etc.
  • And so on.

Its easy to see that as the richness of data improves and also its freshness, the credit decisioning becomes better.

But this is not easy to do. It requires bringing together credit , product and digital teams into a room and understanding clearly the opportunities ahead of us.

Some banks are already working hard to evaluate the new data-points available and calculate their influence on the traditional credit models. Its a matter of time before this becomes the new normal.

 

Uber and Free Market Economics

Uber has changed the way we travel within cities. On a recent trip to Jaipur, the first thing I did on reaching the city, was to top-up my PayTm wallet to get going on Uber. (yeah no card-on-file yet 🙂 )

Uber Free Market Economics

And over the next 3 days I took more than 12 rides across the Pink city. Here are some of the interesting observations I had:

  • Jaipur is really a small city – Only one ride was over Rs 100/-. All others barely crossed the Rs 75/- mark. Given the distances are not too much, the per ride fare is expected to be low. This is a critical point because the supply-demand balance can be easily titlted in a small-population. Also the per ride metrics are sensitive to even the slightest changes.
  • Free market economies tend to be cyclical – Almost all the drivers I spoke to talked about the good old times they have had, driving around as Uber cabs upto almost 6 months back. It seems back then Uber was super aggressive in signing up cabbies and were paying as high as Rs 1800/- per day. Guaranteed. This came down to 1600, 1400 and now is at 1200/-. And its all because of the immensely huge supply. Most cabbies now complained of getting too few rides on a daily basis. Add to that the low average per ride fare and it is clear that this city needs volume of rides to be high. Or to quickly reach an optimal sweet-spot of supply and demand match. As the word of tough times (for the cabbies) is spreading,  fewer are joining and many who had joined Uber are reportedly quitting it. Some can’t even pay their loan EMIs.
  • There is no consistency of vehicle experience – I got from a Nano to an Innova under UberGo. Firstly, UberGo is where most customers go, hence even cabbies are registering themselves as UberGo. So you are better off choosing an UberGo. The Innova guy said that he wasnt getting any rides so he switched from UberX to Uber Go. Also it seems you make the same per ride across both categories. Hence UberGo seemed a logical preference. The Nano guy was proud of his decision, he claimed that he would recover his investment much faster. And thats true. I think this is a classic example of how the market evolves when its close to a free market.
  • Drivers understand and give importance to rider feedback – I have never seen so much sensitivity from an Uber Driver towards the feedback/rating. To have been able to crack this is really commendable on Uber’s part. The drivers have strong appreciation for this feedback being utilized for giving them ride bookings. Again, there might not be a completely transparent system but the fact that information and feedback is flowing across the supply and demand side, is strong enough motivator to influence decisions.
  • Locals are avoiding taking own vehicles – Lot of areas constantly face bad traffic due to construction activities. Parking is a challenge. Most of my local friends have either started using an Ola or Uber over self-drive or are seriously considering to do so. Atleast till the fares are this low !

Update:

And back in Delhi.

  • There was a surge charge of 1.9X due to high demand and unmatched supply I guess. This allowed UberX  guys to also pick up UberGo customers without formally registering into the UberGo. Complete reverse of what’s happening in Jaipur. I guess Delhi customers prefer the more spacious UberX and there is sufficient demand therein.
  • The first cabbie who picked my request, called me and asked me where I need to go (instead of asking me where to pick me up from), and hearing my destination – declined. Just put the phone down and on my Uber screen I was back at fresh request. No way to even go and give feedback on this bloke ! So I guess Delhi cabbies have a hack to the feedback-driving-behaviour loop also. Land of Jugaad !!

Digital India – its already here

Today’s the launch of the Digital India initiative and quite a coincidence that I had an experience which makes me believe that Digital India is already here.

Digital India

Here’s what happened.

I was in Mumbai and called for an Uber. I started talking to the cabbie to understand the target market for a specific use case for mTuzo . We are pitching to banks that with mTuzo we can help move their debit card customer from an ATM only to ATM + POS relationship.

So I asked him which bank account he gets his Uber payments in – it was a SBI account and it was his choice. Uber gives him complete freedom to choose the banking partner.

Next I asked him if he had a debit card for that account . Turned out he did.

I asked him if he’s been using that card at ATM or for shopping also. As expected he had been using it only for cash withdrawals.

Probing further I asked him what if he got 15-20% discount if he shopped using his debit card, would he consider switching from cash to card. And his response just stumped me.

He said he’s already used his card for online purchases at SnapDeal. He did his first purchase using COD (cash on delivery) but once he was sure that they delivered just fine, his next transaction was through his debit card,

Let me repeat that – a 30 something male who has been driving a cab in Mumbai for last 10 years, is only schooled till class 10th, who uses his debit card only for cash withdrawal, has used it online at SnapDeal.

And what really really shocked me was his first purchase on SnapDeal. I can bet you will never be able to guess it.

 

 

Take a few guesses…..

 

 

 

…….

He bought a selfie stick for Rs 300 (after a 66% discount). A selfie stick !!!!

I rest my case, Digital India is here.

Maybe we need a Digital Bharat initiative.

 

The Marketing Funnel at Baapu Market Jaipur

On a recent roadtrip, we went shopping at the famous Baapu Market in Jaipur. Its a bazaar with lots of small shops selling similar stuff mostly fabric, bangles, jewellery and the likes. One is also told to bargain hard when shopping here.

While my wife was excited about the amazing collection of fabric, jewellery etc , I was intrigued by the interesting model that these shopkeepers had adopted.

Baapu Bazaar Jaipur
Baapu Bazaar Jaipur – photo credit Eric Parker/Flickr/MakemyTrip.com

In most shops there were three different types of roles that the owner and staff were playing:

  • The Marketers – One or two people who were stationed outside the shop, about 15-20 steps away. They would shout out loudly about their speciality bangles or suit-pieces or sarees. I felt the idea was to get the attention of the people who were walking around to move towards their shop(s). They essentially brought more attention/traffic to the specific shop. Like many marketing campaigns, there focus was on increasing reach, hence they would spread in a wider catchment area.
  • The Call-to-Action – Then there was this one guy who was right at the entrance of the shop. Now, most shops here have some of their wares displayed right on the footpath. This guy would observe what me or wife were showing interest in, and would try to nudge us in saying there’s an amazing collection inside that we should check out. This is a critical step in their sales cycle. My assumption is that they have figured out that if you step inside the shop once, chances of your buying something increase multifold.
  • The Convertors – Now comes the most interesting part. In most shops (especially those dealing in fabric) one would be expected to remove shoes and sit down for the guy inside the shop to show the collection. I feel that the removing of the shoes and sitting down is like crossing a certain conversion hurdle. The prospect is now almost committed. This person(inside the shop) would be a very calm and relaxed one, who would have the utmost patience of showing us all that we asked. Its easy for one to feel bad for not buying from him since he had spent so much of his time on us. But the fact is, that its we who invest our time and end up feeling its better to buy from here, given that we have spent so much time checking out so many options. Interestingly, these guys came across as very easy to trust and in the absence of brands, its their personality and conduct that drives that trust.

Maybe I was seeing patterns where none exist.

Let me know if you visit this market and see (or fail to see) what I have just described. Will be interesting to hear from you.

Impact of un-utilized assets : A Mathematical Model

A few weeks back I was wondering what happens when we buy a car but don’t drive it. While the automobile industry witnesses a growth but is it something that increases the drag on the economy.

I spent a few hours to work on a very simple model to find what happens in various consumption scenarios.

Approach:

I had to create a simple-one -product economy. Hence  I assumed that

  • Our economy produces cars each worth Rs 12 lakhs.
  • Average utility lifetime of the car as 1lakh miles
  • Additional spends required based on consumption as 5 Rs per mile

I also simulated 6 different scenarios from a household’s perspective. namely:

  • Scenario 1: Normal usage. Uses for full life of the product
  • Scenario 2: Stops using after a time. Does not sell it or buy another
  • Scenario 3: Stops using and sells it off but doesn’t buy another
  • Scenario 4: Stops using, doesn’t sell and buys another which is used
  • Scenario 5: Sells this and buys another which is used
  • Scenario 6: Doesn’t sell, buys another, stops using that also and buys a 3rd

Once these assumptions were plugged in, I calculated a few ratios and interesting things emerged.

 Unutilized Assets

  1. The value derived from each product drastically changes between two similar scenarios where the old stuff is traded vs where it is not sold. Does this mean that in a resource constrained economy, a market place optimizes the return of invested resources through higher utilization?
  2. In the scenario 6, income generation is highest for every 1 Re spent by the households. So maybe hoarding is a good strategy when domestic income generation is important. On the contrary imagine if we do this in categories where we import the products – we might be supporting Chinese economy more than we ever wanted to.

Not knowing fully well what these ratios meant, I spoke to my Professor friend Dr Dash who gave some very interesting path of analysis. Essentially what he mentioned was that I should look at this top down rather than at a micro level. He also mentioned about ICOR – Incremental Capital Output Ratio – how much additional capital do we require for each unit of GDP increase. E.g. an ICOR of 3 means we need 3 Rs for every 1 Re contribution in GDP.

  • Assume a market size of 75 Bn USD and lets say one third of this is from private cars. Hence a market of 25 Bn USD
  • Now assume that 5% of all cars produced in a year lie idle, which means about 1.25 Bn USD worth of cars remain idle. (and this is incremental value of locked capital every year)
  • So with an ICOR of 5 , these un-utilized cars translate into 6.25 Bn USD worth of capital that is “wasted” every year.
  • But where it became tricky for me was that whether the asset is utilized or not, the GDP is impacted depending on ICOR. So is this a case of smarter capital allocation? Would this “wasted capital” helped us in producing some other more needed product or service?
  • A very interesting and probably extreme case of this top-down analysis would be the scenario where the asset is imported. In such a case, a reduction in “wasted capital” would result in better trade-balance
  • With a marketplace, if 40% of these cars are sold in the second-hand market, then we free up that much capital.
  • Moreover with cars available at a lower price, many category shifts might happen. E.g. say a Maruti Alto being sold in the second hand market might attract a person who was in the market for a 2 wheeler earlier.