Profitable and feasible business models
posted on Jul 20, 2022 | Author DR. MOHAMED IDREES UL ISLAM
Businesses today are changing dramatically with the change in technology, and the future business environment will be no different. The use of technologies such as artificial intelligence, machine learning and automation will be part of almost every business. We are already seeing more companies adopting cloud-based business management software or other software to manage day-to-day operations in the Valley. With the popularity of start-up culture in India, we will also see more such behavior in the Valley. More and more businesses will be focused on the individual in the form of freelance skills and social media influencers. At the same time, there will be businesses that will not succeed in the future. Due to the reluctance to adapt to changing conditions, many businesses are struggling. The way people buy is changing. The way they access markets is changing. The way they communicate and meet is changing. In order to be profitable in the future, businesses will need to view their customers through this changing lens. Here are some of the business ideas that are feasible and will pay off in the future.
In India, the online shopping market is expected to grow from US$46.2 billion in 2020 to US$188 billion in 2025. The new trend in the industry is the entry of new smaller D2C players. targeting niche segments. Our valley has not yet joined the e-commerce revolution. There are some successes, but many failures. Businesses here are reluctant to change and adapt to modern methods. In today’s market, if you don’t reach a customer on your end, someone else will. One of the fundamental characteristics of most industries today is that they are very competitive. A clothing store owner in downtown Srinagar is competing with Myntra, Ajio, Flipkart, Amazon and others without him even realizing it. Companies in the valley should have an online strategy and start selling their goods and services online by joining the multinational platforms already mentioned. They can and do use social media to promote their products. Opening a retail website is not a viable option as it will not have the same flow of customers that the big players enjoy. This may be a viable option in the future once the brand becomes popular.
The future of outsourcing in India will take over the major global outsourcing players due to their growing access to vast internet penetration, huge remote workforce, superior talent, quality results and high turnaround times at low cost. Technology outsourcing is expected to grow by around 20% per year over the next decade as companies around the world step up their digital transformation initiatives and renew existing contracts with IT vendors. Kashmir has a pool of talented IT professionals and it is constantly growing. The various costs associated with running an outsourcing business are lower than most parts of the country. We already have some successful examples of IT outsourcing companies in Rangreth. But I see more potential there. People with outside exposure and industry know-how should bring processes home and run them here. I am sure they will save many cost and increase the bottom line.
We have already seen the result of the e-commerce revolution here in the form of a boom in logistics business. Apart from domestic players, many natives have also started the logistics industry. It is a complementary line of business and exists with the e-commerce industry. In fact, the boom in the logistics industry is due to the needs of e-commerce. According to a 2019 forecast by McKinsey Global Institute (MGI), India’s logistics industry will grow at a compound annual growth rate of more than 10%, from $200 billion at the start of 2020 to at least $320 billion. dollars in 2025. would be the key to success for new players in the industry and an entry point.
Many people have decided to pursue a career as a freelancer due to difficulties in finding employment caused by COVID-19. The thing is, most startups and companies are now hiring freelancers to meet their needs. It saves them a lot of money. There will be a plentiful supply of qualified people with a variety of skills in the future. Many people choose to have the flexibility to work at their preferred locations, times and jobs. The number of freelancers in India is expected to reach 20-30 billion by 2025. Many IT professionals are already working from home for multinational corporations. Content writing jobs and online teaching are some of the other freelance entrepreneurs already happening around us. There are many more freelance opportunities, and the list keeps growing. All you have to do is learn the skills that are in demand.
With online learning, both teacher and student can choose their own pace of learning, and there’s also the added flexibility of creating a schedule that works for everyone. India already had the second largest proportion of internet users in 2019. It is the second largest internet market in the world. Earnings from the well-known learning app “Byjus” provide further proof of the growing acceptance of online education in India. Around 18 million Indians will need to change careers by 2030, according to a February 2021 study, which highlights the importance of reskilling and upskilling. Kashmir has a rich pool of talented teachers. They can pool their resources or individually explore the potential of online education. This model has the potential to make their product available worldwide and teach skills that are and will be in demand.
Become an investor in a current or new business
It’s definitely something new to the valley, but I’d put it at the top of my list and my favorite. In the years to come, this could be a successful business model in the valley. Businesses need funds all the time to start and operate, and the availability of funds is not always there. People with money don’t always have the ideas, and people with ideas don’t always have the money to invest in them. Once the two come together, we can witness wonders. There are many potential and existing businesses in the valley that need funds. Investing in them would be a good deal. This would require a team of people and not just the work of one person. Individually, this happens in the valley at the level of family or friends, but requires a more organized and analytical approach to succeed at a higher level.
Social Media Influencers
This thing is already popular in value and has future potential as the demand for social media content keeps increasing. Current youtubers should focus on affiliate marketing and promoting local businesses like national and international influencers do. People with skills or a knack for influencing others should share their talent online. Social media influencers have improved in terms of creativity, teamwork and strategy. Social media influence is no longer a side interest or a chance event. Influencers on social media are aware of the value of the influence they have accumulated over time. The demand for micro-influencers in the influencer marketing industry is set to skyrocket in 2022. Due to brands favoring micro-influencers due to their higher engagement rates and reachability, their share in the whole industry has grown significantly over the past year.
Besides the following, there are many other opportunities for up-and-coming businesses in the valley. Become a wholesaler or distributor of new or established brands; developing small business at the district level; and finally, invest in small real estate units. Kashmir is a huge market with a huge population and the demand from consumers is constantly increasing. You will find buyers for anything affordable. How you reach customers will be the differentiator between success and failure.
(The author is a faculty, Department of Management Studies, North Campus, University of Kashmir. He can be contacted on: [email protected])