Explore

Strat BHAG

Why High ASP -

⁠

Declining NMVc trend since 2023 Jan

Slowed out inflow due to drop in visibility post comp marketplace

RTO / Claims related churn tougher for high ASP

~45% users buy High ASP but we only utilise 1/3rd wallet share

How does this fare for low / reg ASP?

Meesho’s market share is significantly under-indexed in high ASP range as compared to comp / FK

~15% comp OC is High ASP vs ~2.8% for Meesho (Old High ASP def)

More accretive to CM2??

What’s High ASP -

The price point at which conversion drops for a category / Taxo - ~1.3X higher than Avg ASP

Final def TBE

Gold vs High ASP -

Gold is a one stop destination for assured good user experience in high ASP purchases from Meesho

Essentially a better quality subset of High ASP / Trust badging for High ASP

Gold definition -

Catalogs which have stable quality data (no. of ratings>=20)

NQD - Graded NQD thresholds across the no. of ratings bucket have been defined for eligibility in Gold. Approach: We identified rating count threshold at which NQD stabilises - this mark came at 70 ratings. Post this, NQD benchmark for gold eligibility was identified based on long term nmv retention analysis across NQD buckets - this came out to be <=18 for stable catalogs (i.e catalogs with >=70 ratings). We then defined the NQD thresholds for unstable catalogs i.e across buckets of ratings <70, such that <10% deviation happens in the expected NQD threshold (NQD <18 @70 ratings) when these unstable catalogs reach the stable stage. This analysis gave statistically significant results for catalogs with >=20 ratings. Rating bucket X NQD threshold for eligibility can be found below

Returns - Eligible catalogs to have <1.5x of SSCAT/ Taxonomy return%

Average rating - 3.5 & above

Catalogs which do not have stable product quality data (no. of ratings<20) - Seller level quality indicators will be considered for gold eligibility.

Table 45

Table 45

Rating Buckets

NQD Threshold

20-30

30-40

40-50

50-60

60-70

>=70

There are no rows in this table

⁠

First level problem understanding for High ASP / Gold -

Awareness

VOU indicates that 23% of users are not even aware of High ASP being sold on the platform.

Consideration

We floated a survey to understand if users consider Meesho as a platform to purchase high ASP products. Below are the results -

⁠

Screenshot 2022-11-26 at 10.54.01 PM.png

⁠

Deep dive into why users don’t consider meesho for buying High ASP indicates the following reasons :

*6.6k responses from at least 1 order placed users

⁠

Screenshot 2022-11-28 at 11.51.38 AM.png

⁠

Conversion

Of the rest 60% of users who consider buying, 44% users who haven’t bought yet. Deep dive into why users don’t buy high ASP products from Meesho indicates the following reasons :

*4.4k responses from at least 1 order placed users

⁠

Screenshot 2022-11-28 at 11.54.27 AM.png

⁠

Problems identified above are also corroborated with internal data :

There is no direct avenue for users to discover higher price (better quality) products on Meesho. FY feed and widgets are under-indexed in terms of VC for high ASP. However, Search and visual search are over-indexed in high ASP indicating a high intent towards purchasing in this category in Meesho.

⁠

⁠

Users need more quality validation in high ASP as compared to regular ASP. In the absence of quality markers, conversion of high ASP products is lesser than regular ASP products. However, as the quality markers increase, the conversion of high ASP products increase at a faster rate compared to regular ASP products. FK Expert also corroborated a similar observation on their platform.

⁠