Introduction:

TRAI Introduces New Guidelines for Telecom Operators

Main Body:

 In response to the alarming surge in scam calls and messages in India, TRAI has implemented
groundbreaking measures. Mandating explicit user consent, telecom operators like Jio and
Airtel must now adhere to the Digital Consent Acquisition (DCA) program, bringing an end to
unsolicited promotional messages. Despite penalties imposed on Airtel and Vi for non-
compliance, TRAI issues new guidelines emphasizing per-agency user consent.

 Under the updated regulations, agencies must seek user permission through telecom
operators before delivering promotional content. Users will receive an SMS notification with
a unique short code, starting with 127xxx, explaining the consent request's purpose, scope,
and the requesting brand or agency's identity. Users can respond, granting or denying
consent. Denied consent results in a block from further messages. TRAI urges telecom
operators to establish an online portal for easy consent revocation.

Conclusion:

TRAI's new regulations empower users, granting control over communication preferences to tackle
the rising issue of unwanted and spam cases.

Source: https://www.indiatoday.in/technology/news/story/new-trai-guidelines-mean-less-
promotional-calls-and-messages-for-you-what-this-means-for-you-2460832-2023-11-09

Introduction:

E-commerce Brands Focus on Tier II and III Cities This Festive Season with Digital in Their Media Mix

Main Body:

 E-commerce Brands Unleash Festive Extravaganza:

 Amazon's Great Indian Festival, Flipkart's Big Billion Days, Meesho's Mega Blockbuster Sale,
Myntra's Big Fashion Sale, Tata Neu's The Grand Sale, and AJIO's All Stars Sale dominate the
festive marketing landscape.
 Robust marketing campaigns span diverse media channels, from celebrity-filled ad films to
digital ads, posters, and TV commercials.
 Tier 2 and 3 Markets Take centre Stage:
  Meta's festive report reveals a shift in consumer preference for local language content, with
76% of Diwali shoppers favoring ads in their local language.
 E-commerce brands intensify efforts in Tier II and Tier III cities, witnessing substantial growth
and engagement.
 Digital-First Approach and Transforming Content:

 E-commerce brands shift focus to content marketing, leveraging its strength to increase
Customer Lifetime Value.
 During the festive season, a 'digital-first' approach dominates, with a strong online presence
crucial for engaging customers.
 YouTube gains prominence for Urbanic, while AJIO emphasizes a balanced budget split
between traditional and new-age mediums.
 Influencer and creator content significantly impact purchasing decisions, according to Meta's
festive report.
 Consumer Sentiment and Industry Trends:

 A Redseer report anticipates an 18-20% sales growth to around $11 billion during the festive
season.
 E-commerce brands recognize the growing significance of Tier II and Tier III cities, with
substantial revenue from non-metro markets.
 CLiQ focuses on providing a 'magical shopping experience' with personalization and offers to
woo non-metro audiences.
 Trends shaping consumer sentiment include a demand for premium products, higher
importance on trust and authenticity, and a need for relevance and personalization.

Conclusion:

E-commerce brands strategically leverage digital channels, influencers, and personalized content to
tap into the high consumer sentiment during the festive season. The focus on Tier II and III cities,
coupled with a digital-first approach, reflects the industry's commitment to regional expansion and
accessibility, making the festive season a catalyst for growth in non-metro markets.

Sources: https://www.socialsamosa.com/experts-speak/e-commerce-brands-focus-tier-cities-festive-
digital-1686215

Introduction:

Deloitte Casts Doubt on Dunzo's Ability to Continue as a Going Concern

Main Body:
Financial Struggles and Audit Findings:

 Deloitte, in its latest audit report, expresses material uncertainty about Dunzo's status as a
'going concern.'
 Dunzo's regulatory filings for FY23 reveal a staggering net loss of Rs 1,802 crore, a 288%
increase from the previous year.

Mounting Losses and Liabilities:

 The increased losses lead to Dunzo's current liabilities exceeding current assets by Rs 325.8
crore, primarily due to high operational costs.
 Auditors rarely raise concerns of this nature, but Dunzo's total liabilities surpassing assets
raises bankruptcy event concerns.
 Dependency on Funding and Business Improvement:

 Deloitte highlights that Dunzo's ability to continue as a 'going concern' significantly relies on
additional funding and business operation improvement.
 The audit report mentions a material uncertainty that may cast significant doubt on the
group's (Dunzo's subsidiaries) ability to continue as a 'going concern.'

Management's Response:

 Dunzo acknowledges the concerns but emphasizes significant developments since the audit
report, including scaling operations and achieving a neutral business burn.
 The spokesperson mentions FY23 achievements, such as a platform GMV crossing Rs 1,500
crore, successful cost cuts, and optimization of the store network.
 Past Struggles and Current Measures:

 Similar concerns were raised by auditors in FY22, indicating a worsening situation for Dunzo.
 Over the past months, Dunzo has faced challenges, including salary delays, layoffs, closure of
dark stores, and surrendering office space to manage cash burn.

Optimism Amid Challenges:

 Despite challenges, Dunzo remains optimistic, attempting to secure capital in the range of
$25-30 million.
 The company has raised close to $500 million since 2015, with Reliance Retail holding the
largest stake (25.8%) and Google as the second-largest shareholder (around 19%).

Conclusion:

Dunzo faces significant financial challenges as Deloitte raises doubts about its status as a 'going
concern.' While the management emphasizes positive developments, including financial milestones
and operational optimizations, the company's past struggles and dependence on additional funding
underscore the severity of the situation.

Sources: https://www.moneycontrol.com/news/business/deloitte-casts-doubt-on-dunzos-ability-to-
continue-as-going-concern-11686401.html

Introduction:

BYD's Rise to Electric-Vehicle Dominance: Berkshire Hathaway's Caution and Current Triumphs

Main Body:

Berkshire's Initial Doubts:

 Berkshire Hathaway, led by Warren Buffett and Charlie Munger, purchased around 10
percent of BYD in September 2008 for $230 million.
 Initially sceptical of BYD's move from mobile phones to cars, Munger warned founder Wang
Chuan-fu about entering the car business, considering it a potential graveyard.

BYD's Unlikely Journey:

 Despite reservations, Berkshire saw potential in tapping into the rising global demand for
environmentally friendly technology.
 BYD, once known for handset components, had purchased the struggling state-backed
Qinchuan Automobile Co in 2002, signaling a shift to the car business.

Challenges and Technological Expertise:

 BYD faced financial challenges as it expanded its dealership network ahead of new-energy
vehicle demand.
 Munger praises Wang's technical expertise and ability to navigate challenges, labeling him a
genius and a natural engineer.

Unprecedented Renaissance and Current Success:

 Berkshire, viewing its investment as venture-capital-like, witnessed BYD's stock value soar
amid the global car industry's environmental focus.
 The initial $230 million stake is now worth over $9 billion, showcasing BYD's unprecedented
renaissance.

Current Electric-Vehicle Dominance:

 BYD is on the verge of surpassing Tesla as the world's largest electric-vehicle maker.
  BYD-made batteries hold 16% of the EV market, with over 90% used in its cars. Capacity
expansion positions BYD to supply external clients like Tesla.

Strategic Advantages and Analyst Enthusiasm:

 BYD's blade-battery technology and low-cost lithium iron phosphate alternatives contribute
to its leadership in the EV market.
 Analysts raise net income estimates, anticipating a 15% increase for this year and 18% for
2024 despite competition and a price war.

Bigger Picture and Industry Transformation:

Berkshire continues to trim its stake but reallocation of capital is emphasized over a vote against the
stock.

The potential overtaking of Tesla by BYD underscores the transformative impact of new entrants in
the once-stagnant car industry, showcasing a remarkable turnaround.

Source: https://www.moneycontrol.com/news/opinion/byd-is-close-to-overtaking-tesla-but-
berkshire-hathaway-had-once-warned-it-about-car-business-11705631.html