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Sum insured: INR 5,000Coverage: Cyber fraudPremium: INR 5-10 per monthModel: In partnership with HDFC ErgoProvision to lock the price for extended period against a charge (currently done by MMT and FK for BBD sale)Exclusive brand discounts that Myntra, FK offers as part of value add on5% SC on every purchaseBirthday voucherPriority customer supportFaster return pickup
Mostly users (4/13) have pointed that the quality is the biggest pain point and they expressed interest to buy an add on assurance product that safeguards the quality50% through a survey showcased interest to buy a product offering Quality AssuranceSum Insured: 70% of product valueCoverage: Protection against fading and shrinkage of apparelPremium: INR 10 per order
Their wallet share and spending patternsDigital apps usageKey reasons for preferring a particular appExperience on Meesho (major pain points and needs, if any)Willingness to pay for any value added service (example: Amazon Prime, Hotstar subscription, etc.)Validating potential offerings (user subscription, gift card and cyber insurance)
Meesho users spend about 10% of their monthly expenditure on online shoppingFor almost all users, Meesho is the preferred app to purchase low ASP products such as clothes, home decor, accessories, footwear etc. and thus, prefer Meesho since they feel Meesho is affordable and value for money app. However few users (4/13) would also want Meesho to havecategories such as electronics. They currently prefer FK or AZ for thatApart from online shopping apps, users also use social media apps (13/13), digital payment apps ( 10/13) and food ordering apps (3/13)Most of the users don’t pay for any value added services including OTT, few users have FK plus (2/13) membershipThe users who have FK membership prefer to purchase from FK because of benefits such as coins and free shippingHowever, when explained in detail 46% users (6 users out of 13 users) are willing to pay for subscription which bundles multiple offerings but even within that the most attractive benefit for majority of the users was cashback in the form of Smart Coins ( however awareness of SC is low) - this was further evaluated via survey where ~50% users ( 256/506) expressed interest to buy a monthly subscription program priced at INR 70/month. However, this is likely to have a positive impact on overall flywheel leading to incremental NMVCyber security insurance priced at INR 10 that covers digital fraud for a month was tested amongst users8/13 users expressed interest to buy the insurance since they do UPI payments and this provided a safety net and trustWe further evaluated the willingness to purchase via survey - ~38% users ( 160 users out of 422 users) are interested to pay INR 10 for cyber insurance with 66% of them citing safety as key reason
Those which are directly credited to buyer's account (e.g. mobile top-up card, game credits)Those requiring buyer to redeem online (e.g. transport/food delivery e-vouchers)Those requiring buyer to redeem offline (e.g. movie tickets, dining vouchers, hotel/resort tickets)
Sum insured: INR 5,000Coverage:
Premium: INR 5-10Estimated opportunity: INR 39 lacs per month (0.02%)Based on results of Digital Suraksha, we can explore other insurance offerings such as Quality Assurance (contextual), Mobile Protect/Screen Protect, etc.
Benefits offeredUpto 5% Smart Coins on every purchasePriority customer supportVouchers in birthday monthPricing: INR 70-80 per monthOpportunity: INR 50-70 lacs per month (0.04%, excluding potential NMV uplift)
Fade protection in case color of the product fades post washShrink protection in case the apparel shrinks post washDocumentation: User to take clear photos and share a short video showing the extent of fading or shrinkingClaim Initiation: User to log in to their Meesho account and initiate a claim providing necessary details, including the documentationEvaluation: Meesho experts/ops team (to be set up in collaboration with existing claims team within F&E) will assess the documentation provided and verify the genuineness of the claimReimbursement: Upon claim approval, user receives a reimbursement (in source account or in the form of Meesho coins) equal to ~70% of the product value (excluding the cost of Quality Assurance)Intentional Damage: Quality Assurance does not cover damages resulting from deliberate actions such as intentional exposure to harsh chemicals, excessive heat, or improper care with the intention of damaging the item.Normal Wear and Tear: Apparel naturally undergoes some degree of wear and tear over time due to regular use. Gradual fading or minor shrinkage that is a result of normal use and not a sudden or excessive occurrence is not coveredAccidental Spills or Stains: Any damage caused by accidental spills, stains, or exposure to substances like ink, bleach, or strong dyes is excluded from coverage.Third-Party Alterations: Any modifications or alterations made to the apparel by third parties, including tailors or alterations services, which result in shrinking issues are not eligible for coverage~50% of the respondents will be willing to pay INR 10 per order to get Quality Assurance on apparels ( very high interest amongst males- 74%)
Monetization - New ideas
Executive Summary
Executive Summary
User levers
Outside in
Screenshot
User Research
POV on Offerings
Proposed construct
Opportunity size (as % of NMV)
Insurance
FK, Paytm offer a cyber security insurance that provides cover to users against UPI and card frauds
Users felt that this is a value added service and provides them security and were willing to pay for such service
We can experiment with cyber security insurances as an embedded product
~0.02%
Pricing
Users are satisfied with prices on Meesho that serves as primary hook
However, users are extremely value seeking and would like to get extra discounts in terms of cashback, vouchers etc.
Under a subscription program, we can offer 5% Smart coins to users on each purchase which would be our core offering
This came out as the hero offering for our bundle in our user research as well
i. Bundle few offerings such as
ii. Pricing: INR 70-80 per month
~0.04% (excluding potential NMV uplift)
Return pickup
No e-commerce platform has any offering
Few users (2/13) pointed out faster pick up as a need. Hypothesis to be validated through a survey
Under a subscription program, we can offer faster return pick up since this has come up as a need of our users. Capabillity to be evaluated
NA
Covered above in subscription
Priority Customer support
A lot of e-commerce players such as Myntra, Nykaa, Best Buy, Shopee provides dedicated customer support as value add on service in loyalty membership program
Users are satisfied with customer support and is good to have benefit
This is good to have benefit and can be offered as an add on under subscription bundle
NA
Covered above in subscription
Product quality
Embedded Insurance/Damage protection - Shopee offers damage protection across categories for 3% of product value that covers accidental damage, wear and tear, loss due to natural calamities and damage due to liquids
,
We can evaluate Quality assurance for the users
~0.02%
Variety
AZ,FK, Shopee have mix of both low and high ASP products and certain categories not available on Meesho such as electronics
Few users (4/13) have pointed at need of having all categories such as electronics and accessories so that they can use Meesho as one stop for all needs
Category teams can explore this
NA
Free shipping
Most of the e-commerce companies in India and outside provide free shipping as a benefit in membership programs
Few users (2/13) were aware that we charge free shipping for products below INR 100 and wanted to get free shipping as a benefit
Since this is not a key ask from users, we are not evaluating this
NA
Delivery
Amazon and Flipkart offers fast delivery as a value service in their membership programs
Based on a research conducted by F&E, users are not willing to pay for speed
This was not highlighted as a problem in our user calls as welll
Capability to be evaluated to offer as part of subscription. Can exclude in V0
NA
Return window
Best Buy provides extended return duration to loyalty members which is tiered in nature and is not paid membership
Almost all users are satisfied with return window and did not point this as a need
Since this is not a key ask from users, we are not evaluating this
NA
Instant Refund
Instant refund on return initiation (offered by Myntra under Myntra credits)
One user (1/13) pointed that they would prefer to get refund in Meesho credits (Meesho balance) as that is hassle free process
We already have Meesho wallet balance- this can be evaluated under that
NA
Priority Deals
A lot of e-commerce players such as Myntra, Nykaa, Myntra, FK, AZ provides exclusive early access to salles as value add on service
Users don’t feel a need to have early access to sales as Out of stock is not a pain point
Since this is not a need, we are not evaluating this
NA
There are no rows in this table
User Research
We conducted a detailed phased research with multiple surveys and LoDs to understand user behavior and pain points
We did detailed qualitative video interviews with 15 users distributed evenly across power users (definition) and infrequent users (active users but placing order once in 2 months) users to understand the following:
Key insights
A. User behaviour
B. Needs and pain points
While most of the users are satisfied with Meesho , few of them cited pain points around quality (4/13), , longer return pick time (2/13), and shipping fee ( 2/13) and longer delivery time (1/13)
C. Willingness to pay for a bundle offering
PFB the hero offering of the bundle (based on a user survey):
Table 71
Benefits
Column 2
5% Smart coins on each purchase
39%
Getting a special voucher in your birthday month
23%
Return/exchange pick up within 2 days
20%
Fast and exclusive customer support
18%
There are no rows in this table
2. Since users have limited wallet share, we tested low ticket membership program (INR 70-80 per month)
3. This has to be a monthly program since users are extremely price sensitive and want to test the offerings first and would like to continue only if they like it
D. Willingness to buy cyber security
External Market Landscape (details available )
Major global e-comm players (Shopee, Taobao and PDD), Commission/Transaction Fee on sales is the primary monetization lever. Hence, majority programs are focused on increasing engagement/loyalty and nudging users to buy more through missions, incentives, etc. PFB a list of prominent loyalty/monetization programs for these players:
Table 72
Particulars
Description
Monetization lever or not?
Shopee
PDD
Taobao
Live commerce
Rewards/vouchers shared by sellers and platform over livestream
No
Yes
Yes
Yes
Group buying
Special discounts funded by sellers on group purchases
No
No
Yes
No
Interactive gaming (daily check ins, mini games, missions)
Free rewards, vouchers and coins to increase engagement
No
Yes
Yes
Yes
User generated reviews
Users earn money/coins to review products (funded by seller or not is not known)
No
Yes
No
No
Embedded insurance
i. Phone screen and mobile 360 protection plans on Shopee
ii. Returns Assurance- no return shipping fee on returns
iii. Pet insurance
iv. Damage protection against accidental damage
Yes
Yes
No
Yes
Subscription offering
i. Special vouchers to be used in the Taobao ecosystem + free shipping (88VIP)
ii. Shopee allows brands to curate their own membership programs- incentivizing users through discounts as a loyalty lever. There are category specific memberships as well. Eg: for pet purchases, moms club, etc.
Yes- for Taobao, free for Shopee
Yes
No
Yes
Digital products
Yes
There are no rows in this table
Final shortlisted opportunities
A. Cyber Insurance (to be prioritized )
Considering a cyber insurance offering is already available in the market, we want to experiment by launching a sachet “Digital Suraksha” offering for users. PFB the details:
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B. User subscription (to be evaluated in detail)
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BE NMV/user will be ~INR 2.8k per month (without considering cost of additional services such as birthday month voucher and priority customer support)
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C. Quality Assurance
A. Coverage
B. Sum insured: ~70% of product value
C. Period in which a user can file a claim: 30 days starting at the end of the 7 day return window
D. Cost of Quality Assurance (can be reworked)
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E. Meesho commission: 20%
F. How it works?
G. Exclusions
H. User Interest
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