Comments on: In India, Niche Consumer Internet Business Models will Thrive more than GOOGs or AMZNs

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http://rishikesh.youresuccess.com/Places-to-shop-in-rishikesh.html — Fri, 11 Dec 2009 17:10:58 +0000

Abhishek S…

I saw this really good post today. Great Stuff….

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By: Hemant

Hemant — Tue, 24 Nov 2009 08:50:05 +0000

Dear Sampad,

Tend to agree with the overall argument made here. But there are a few thoughts which do cross one's mind. Bharat Student and MBA education sites, a site built on the fantasy niche of young users who are addicted to the net, seems to be a good example of what you are saying. Expect education to make inroads in this broad 'horizontal' to cater to specifics such as K-12, subject centric (maths) and so forth… Real Estate and Travel have some relevant business figures to boast about in India.

Dunno how some of the other niche sites like iDiva (Women) are faring but indiaparenting.com does amazingly well within its TG (Young Parents)

Most tend to ignore is the sales or messaging potential of an absolute niche following and participation. But, i feel that the industry is still learning to appreciate the value of 500 over 50,000, even if the product is highly targeted. They will succumb to cater to the horizontal, purely cuz of business and sales pressures of reaching a mass market.

The cajones to stare in the face of opportunity and withstand unrealistic target sales numbers by having a perspective about the product offering and the niche market it caters to, will nuture many such ventures.

Strictly, my opinion.

Cheers
Hemant

By: Santosh

Santosh — Mon, 23 Nov 2009 11:32:31 +0000

I will second Sanjay's argument about : "selling the tall-and-big clothes" as a niche, is there enough volume there, to make it an attractive business??

In developed countries, niche is great and it works. In India, if we are talking about niche, the promotion has to be that rich & penetrating to reach the niche. Hence we are talking about VC money and lack of revenue for considerable time.

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By: Sanjay Mehta

Sanjay Mehta — Sun, 22 Nov 2009 03:55:43 +0000

Sampad,
For all the logical reasons that you mention, niche is where most ambition and money is going. And I consciously mention both of those words. For an entrepreneur to also think beyond niche, requires a dare that I have rarely seen in India. If an entrepreneur mentions that he wants to build something at global scale, that may take on an Ebay or an Amazon or whatever, or build something in a new class, but at that level, he is usually laughed at. And that has made the entrepreneurs also less ambitious, and they are happy to resign themselves to building a niche. And the money angle, of course, you touch upon, in terms of investors' confidence, etc.

But the other reality, the way I see it, is that fixed costs are not trivial and are not going away anywhere. That being the case, niches may barely cover those or not even cover those. So while I may be excited about "selling the tall-and-big clothes" as a niche, is there enough volume there, to make it an attractive business?? And if not, then you are back to square one. While picking niches, one has to make sure that the niche itself is large enough, to make it a good game!