Thanks for the feedback Adithya. The online fashion experience is meant to replicate offline, but you can only return clothes with the tags on and without any sign of it having been used when it comes to physical stores, that's not the case online. Fashion has always been Amazon's Achilles heel, but in the US too returns are a huge problem online. As for reducing the return window, I would argue that since most categories on Amazon and Flipkart have only a 10-15 day return policy, there is no reason for fashion to be different. This is an expectation that has been set over the years for consumers. Margins in fashion are much higher than other categories, but taking into account steep discounts and return cost + sanitisation measures pressures it. In a service like Try and Buy, many items are then dispatched to consumers, who can try everything and when it's returned, there is a 30-60 day window for sellers to get them back. That's an opportunity loss.

Abinaya Vijayaraghavan

Thanks Harsh. Clothes do have high margins to play with, but post-covid, platforms are providing far steeper discounts than earlier, which is also borne by brands. And discounts are expected to continue until January next year, instead of just 2-3 sale events in a year. Discounts combined with these costs will pressure margins.

Abinaya Vijayaraghavan

Thanks Malavika! 1. There are government mandated general safety precautions like social distancing, personal hygiene and masks. 2. Until now, there is no quality check performed or asked by platforms for returns. It is up to the discretion of sellers. 3. There isn't a tab or seal with this information yet. Which also brings up interesting questions about consumer behaviour.

Abinaya Vijayaraghavan

Thanks for your comment. The hygiene measures may have been instituted post-Covid, but the sole focus is not about Covid. It's sanitisation as a whole for the industry and brands are very careful not to be associated with any claims of clothes having stains or marks. The overall cost of operations will go up as you said, but returns are a constant at 30% and as customers choose to buy affordable clothing, that is set to rise.

Abinaya Vijayaraghavan

Thanks Rohit. Apparels is a category that cannot be done online without allowing for generous returns policy. Since the idea is to replicate brick and mortar stores which also offer 30-day refunds and replacements. But you can only return clothes offline if they have not been worn, which is not case online.

Abinaya Vijayaraghavan

Thanks Pavandeep. F&V is definitely a volume game and Hyperpure is fairly small now, so it will be interesting to see if they can keep maintain their unit economics/margin as they scale.

Abinaya Vijayaraghavan

That is a good point, Sandeep. As Hyperpure grows, it could become a source of conflict. Customers will essentially take Zomato's word for the quality of the produce and freshness of ingredients.

Abinaya Vijayaraghavan

Thanks Harsh! Zomato gives a hygiene tag for the produce, not for the physical hygiene of the restaurants. For that, they have tied up with Equinox, where physical audits of the restaurants take place. The Hyperpure Inside tag is to tell the customers that this restaurant sources high-quality and fresh ingredients.

Abinaya Vijayaraghavan

Hi Manaswi, Hyperpure holds a greater appeal for small and mid-size restaurants than larger restaurants definitely. And there's no requirement that a restaurant has to source 100% of its raw materials from Hyperpure to get the hygiene tag. Also, I am interested in understanding what you mean by "..traditional suppliers with whom getting to first base with respect to a working relationship is a long-drawn process." Do let me know if we can chat sometime. Thank you.

Abinaya Vijayaraghavan

Hi Pragnya, thank you for reading. And that's a very good question. Zomato says in addition to sourcing from major brands like Amul, ITC and Cargill, fresh produce is sourced from farmers or source market aggregators. They also tie-up with organisations that work with farmers.

Abinaya Vijayaraghavan

Hi Ranish, offline markets are disrupted, plus the free delivery means that there are fewer touch points for restaurant owners.

Abinaya Vijayaraghavan

Hi Anandh, thanks for your comment. That's a good observation, most restaurants have long-term relationships with their suppliers. Hyperpure's primary attraction is the price and the free delivery. But as you pointed out, the margins in grocery are very slim and wastage is a huge issue.

Abinaya Vijayaraghavan

Thanks for the feedback Adithya. The online fashion experience is meant to replicate offline, but you can only return clothes with the tags on and without any sign of it having been used when it comes to physical stores, that's not the case online. Fashion has always been Amazon's Achilles heel, but in the US too returns are a huge problem online. As for reducing the return window, I would argue that since most categories on Amazon and Flipkart have only a 10-15 day return policy, there is no reason for fashion to be different. This is an expectation that has been set over the years for consumers. Margins in fashion are much higher than other categories, but taking into account steep discounts and return cost + sanitisation measures pressures it. In a service like Try and Buy, many items are then dispatched to consumers, who can try everything and when it's returned, there is a 30-60 day window for sellers to get them back. That's an opportunity loss.

Abinaya Vijayaraghavan

Thanks Harsh. Clothes do have high margins to play with, but post-covid, platforms are providing far steeper discounts than earlier, which is also borne by brands. And discounts are expected to continue until January next year, instead of just 2-3 sale events in a year. Discounts combined with these costs will pressure margins.

Abinaya Vijayaraghavan

Thanks Malavika! 1. There are government mandated general safety precautions like social distancing, personal hygiene and masks. 2. Until now, there is no quality check performed or asked by platforms for returns. It is up to the discretion of sellers. 3. There isn't a tab or seal with this information yet. Which also brings up interesting questions about consumer behaviour.

Abinaya Vijayaraghavan

Thanks for your comment. The hygiene measures may have been instituted post-Covid, but the sole focus is not about Covid. It's sanitisation as a whole for the industry and brands are very careful not to be associated with any claims of clothes having stains or marks. The overall cost of operations will go up as you said, but returns are a constant at 30% and as customers choose to buy affordable clothing, that is set to rise.

Abinaya Vijayaraghavan

Thanks Rohit. Apparels is a category that cannot be done online without allowing for generous returns policy. Since the idea is to replicate brick and mortar stores which also offer 30-day refunds and replacements. But you can only return clothes offline if they have not been worn, which is not case online.

Abinaya Vijayaraghavan

Hi Yash, thank you. Cloud kitchens are definitely going to get a big boost since restaurants want to increase their source of revenue. It will be interesting to see how it works out with respect to customers wanting more transparency inside kitchens.

Abinaya Vijayaraghavan

Hi Eshwar, thanks for the detailed comment! You are right, I have highlighted only some of the solutions being thought of by restaurant owners. A re-invention seems to be necessary to overcome the challenges posed by the crisis.

Abinaya Vijayaraghavan

Hi Mihir, it has been changed. Thank you for reading!

Abinaya Vijayaraghavan

Hi Rana, thanks, it has already been changed.

Abinaya Vijayaraghavan

Hi Yogesh, thanks for the feedback. The unorganised sector in the restaurant industry is definitely worth looking at too.

Abinaya Vijayaraghavan