Meesho Case

Study
 Assignment Question 1 Answer :
There were several problems with Fashnear where the Founders went wrong :

1)The retention rates of customers were very low. Even though the acquisition
had a steady pace, Fashnear had difficulties in ensuring customer retention.

2) Since most of the products were unbranded, the profit margins

were wafer thin and it was not a sustainable business model.

3) Many people were reselling the products they bought on Meesho and hence
there end consumers were actually different, creating an opportunity to
leverage the gap between resellers and consumers.
4) Furthermore, due to low quality of supplies, inability to charge much commission
from the supplier and high burn rate in logistics and supply chain management, this
business model was not profitable as well.

Assignment Question 2 Answer:

Meesho does have a problem-solution fit but not a product market fit.Problem
solution fit does not imply product market fit. There is an iterative process through
which the problem gets redefined until product-market fit is achieved.
Meesho identified a correct problem where the low-priced unbranded fashion
retailors had a huge market opportunity in the tier 2 and tier 3 cities. Meesho even
identified the correct solution to it, which was bringing the small businesses online
and leveraging the power of internet and social media to build their online
presence and increase sales. However, they could not achieve product-market fit
because of the dynamic market conditions and with the dire need to pivot their
business model because of the problems stated in the answer to last question.
Assignment Question 3 Answer :
With the B2B2C model, Meesho has finally achieved product market fit. Now, with the
resellers using their social media presence to market Meesho products and sell them
to consumers, Meesho not only provided the right product to the right end
consumers but also provided income opportunities to the people in need as well as
empowered female entrepreneurs to start their own online business at very low cost.
However, Meesho's business model is still not profitable. Product market fit does not
imply profitability. The path to profitability requires a viable business model, which
may involve further refining the problem and product. Even though Meesho has a
sustainable business model, for it to become profitable and increase profit margins,
Meesho would need to raise more funding from investors and eventually focus on
branding their company and sell fashion products from low-end unbranded product
retailors directly to end consumers in tier 2 and tier 3 cities as now, they trust the
brand of Meesho and its products.