The story of App Cab in India

Cab services in just 5 minutes, was not not only unheard of but also beyond imagination in Indian cities. Eyes blinks and yes it is here, touch and feel it you are no more deprived.

Having started its operation from financial capital Mumbai in 2011, Ola Cabs has caught the imagination of urban India faster than expected. Taking India for a ride and also competing with bigger global competitor Uber was not an easy task for the young founder duo of Ola. Today, Ola and Uber are two prominent name which has changed the landscape of local city travelling.

Players and Games in the market
The app based Cab services is some four years old in market however unlike other startups, this field is relatively less crowded. Majorly Uber , Ola and Taxi4Sure (acquired by Ola) play in this market. Despite being relatively new market there have been lot of fireworks in the field which gave the industry more eye balls than it could have ever gained through advertising. In fact, many people knew about Ola and Uber only when their services were barred in Delhi NCR ,one of the important market for Taxi aggregator services.

State Govt of Delhi had straight face off with App based Taxi services going to the extent of banning it, some voice also murmured about involvement of established players in the market to disrupt the growth of app based services which was on killing spree for Taxi companies like Meru, Easy cabs etc. App based Taxi service provider maintained that they are not the transport agencies but just an app for Taxi search. Good that the nascent players successfully crossed this hurdle which posed serious challenge on them.


Changing Lives

Surprisingly , app based Taxi services have changed the lifestyle and travelling habits in Metro Cities quite rapidly. They have not only dented the business of established players but more than that created new market segment. Availability of low cost traveling options have given wings to the class which now travels even to the offices by cab, this was quire unheard of earlier. The surge in demand has been so phenomenon that the demand started to outstrip the supply pushing app based companies to hire more drivers.

Fortunately, the excitement on the other side has also been quite encouraging. More and more drivers are today getting on board to Ola, Uber and Taxi4Sure leaving their traditional jobs. I happen to ask some of drivers about their backgrounds on my several trips and found out they are from all walks of life. Couple of them even were driving heavy vehicles while some other were seasonal drivers during holiday seasons in India. I found most drivers happy by connecting with these App Based services.

How they make money

While customers are getting the fare which they never imagined and drivers are getting commission and incentive beyond their expectations. Both the associate wonder big time where from money comes. Actually, none of them are making profit now or anytime soon. For Uber or Ola, the current focus is to expand the horizons - acquiring more customers, acquiring more drivers and expanding into more cities are the prime focus of all of them. Ola acquired Taxi 4 Sure in cash and Stock deal for $ 200 Millions by consolidating the position as well as keeping any serious competitors at bay for the time being in the booming cab services market.


Future of the Industry

Though, many of the traditional analyst have doubt about longevity of the business model or profitability however the industry does not seem to be looking back. For a country like India where there is low vehicular penetration and difficult driving scenario, the market condition seems encouraging. The probable challenge which this industry might face is cost competency as India is cost sensitive market and users will be more cost driven. So the churning out profit keeping both drivers and customers will be an uphill challenge in mass segment. The absence of third player in the market will give enough playing room to Ola and Uber to maneuver the industry in ideal way.

End of Life - Death and the Path Beyond

The prediction of death is probably the most certain thing after the birth, time may vary but eventuality is certain, without any exception. Yet, humans normally fear to discuss the end of life and there is no end of longing to live forever. The loss of life can be in any age, it can be in friction seconds or it can reach after decades of suffering i.e. the way of attainment is different but end is same. 

Though death is something certain yet it undisputed fact, no one wants to die. It has been observed that after crossing 5 decades of life i.e. 50 years, the fear of life is more a reality hounding humans. It is a stage where people worry, knowing they have spent more years in life than they will in future. At this stage, people can be broadly divided into two category. One, who accept mortality as ultimate truth and attainment of life having lived their life, while the second start fearing death thinking they have still not lived the enough. And no surprise, we definitely have more people falling ins second category than the first. 

Why we fear death  

The fear of death is more natural than exception and the question arises why we fear death so greatly. What do we lose after death. Probably nothing or everything. The answer on loss of belonging can be truly derived only if we know what happens after the death. Is it a dead end or a new beginning. Death can be biologically explained as end of cells and tissues but psychologically it is end of an existence. For the person who dies, it is end of the road where everything ceases to exist in real life and is pushed in memories to be faded in due course. Death is repulsive to most because it is unknown. The sense of attachment is the prime reason why people are not receptive to the concept of death. Death is not experience, we can not experience our death, it just happens. Amongst the fear of death people often don't realise, they are not here to go through pleasure or pain of their own death. Then what causes the anxiety to die ?? There is a different aspect, though death is certain but everyone doesn't die in same way. There can be diseases, accidents or long sufferings, does this causes death a painful encounter ?? Probably not

What happens after we die

When fear of death crosses the mind, also does what happens after death. This thought process is largely (if not completely) controlled by the religion and belief attached the religion. Different religion gives different account of treatment on what happens after the death from nirvana to rebirth. This discussion can be endless. Going by different streams, we find different account, While biology says its permanent end of life cells The spirituality elevates the occurrence taking it as big as attainment or rebirth. Remarkably, biology only states the end of the life and not the things beyond it while spirituality takes the step forward from here.


A driver may lose control of car and hit another, killing a family. A mother may die of unnatural death leaving confused children and a grieving husband. A husband may die suddenly, leaving behind his mourning wife and kids. An infant boy succumbs to a fatal birth defect. A gentle, elderly lady dies quietly in her sleep. Not only this death may also come by choice i.e. suicide. All these lead to the situation of death, whatsoever be the cause the end result is death, end of a body. 

There can be numerous stories of death experience but the mystery still remains, what happens after the death !!! 

Talvar Movie Review : Releasing 2nd October

Talvar Movie Review

Movie : Talvar
Written By : Vishal Bhardwaj
Directed By : Meghna Gulzar
Produced By : Junglee Pictures  

Starring : Irrfan Khan, Konkona Sen Sharma, Tabu, Neeraj Kabi & Others
Rating - Outstanding 

With power packed names like actor Irrfan Khan, Konkona Sen Sharma and Tabu, Story Writer Vishal Bhardwaj and Director Meghna Gulzar the expectation from the, real life inspired , thriller "Talvar" gets elevated. Thankfully the movie not only lives upto the expectation but also raises the bar for alternate genre of sensible movies. Though the director and story writer had almost no scope of twists and turns, they succeed to keep audience unblinking throughout the movie. It is to the credit of the director Meghna Gulzar that she strongly holds the audience interest right till last moment and even beyond. Your nerves are certain to overwork in thought stirring moments when you step out after the movie.

"Talvar" based on double murder of a teenager and house servant draws clear inspiration from infamous Noida "Aarushi-Hemraj" murder case which hogged the limelight of nation for years. At times movie erupts the myriad emotions and hold backs the human conscience. Movie rotates around the powerful story line up  , which interestingly is known almost by everyone, on the one side and unflinching Irrfan Khan on the other side. Making a film on real life incidence is formidable job especially when it lacks the usual bollywood masala, here full marks goes to director and actors who infused life into it so lividly that makes it a thriller. Irrfan Khan acting as the lead investigating officer carries the movie on his shoulder with natural prowess. Unyielding Konkona Sen Sharma who has restricted presence in the movie adds value alongside stoic Neeraj Kabi. Director has smartly broken the monochrome by inserting the other side of Irrfan Khan's personal life with wife Tabu. It helps the movie to go light whenever thought start dominating the nerve system.

Movie takes heavy toll on first hand sloppy investigation by city police, in satirical as well as grievous way. Vishal Bhardwaj's story successfully exposes the blemish police investigation with rage as well as satire. Crafting the story line with impeccable perfection for such complicated case was no easy task for writer but he flows it not only in neutral path but also humorously tears apart the investigation carried by government agencies. Meghna Gulzar has done full justice with story by giving soul to the movie with her matured direction. Flip Flop investigation by local police and bizarre helplessness of agency probe is depicted in very neutral way. Movie is not judgmental but shows all the versions and angles with neutrality and leaves it to the audience to go with version which they may find more compelling. The devastated and feeble investigation process blows out the belief on established bureaucratic structure. Movie tilts from honour killing to mysterious murder angles and evokes anger and dispair. 

Irrfan Khan in lead role plays the different shades and keep the movie rolling in every direction, be it an avid investigating officer or disgruntled humorous husband. Konkona Sen Sharma playing the role of mother of teenager is as natural as she can be. Her role in the movie is pre-defined from the story line giving her less space for her versatile acting but even with restricted horizon she is central in the main plot. Neeraj Kabi playing as the father has even more silent dimension, he has also shown the natural flavour to play the character. Tabu ,playing wife of Irrfan Khan has more tickling appearance as she is detached from the main story plot.

Meghna Gulzar has done simply brilliant work for keeping the flow of the moving independent and rolling. It is definitely her best outcome as she seems to have gone in the skin of the infamous murder case pulling it one by one so finely. Her acute representation of even a smaller evidence makes one revisit the varied sequences as claimed by different parties. She deserves the pat on the back for depicting so complicated case in such natural flow. And Vishal Bhardwaj the man behind the scene, must have worked hard to live the sequences again and again before unraveling the story plot.

 

Watch "Insaaf" Song from Talvar Movie : https://www.youtube.com/watch?v=BmCSvu03wSY

Watch "Patli Gali" Song from Talvar Movie : https://www.youtube.com/watch?v=ycuep651IFw

 Watch "Zinda" Song  from Talvar Movie : https://www.youtube.com/watch?v=oFvPh0nPnFI

Overall, this "who done it" movie is one of the must watch of 2015. It has ability to pull the audience to the core and keep them connected throughout. Once in cinema it is sure to keep you on edge of your seat from beginning till the end. Movie gets stronger with its songs especially the song "Insaaf Hoga" is just lovable. It's a must watch movie in cinemas and one of the most distinguished movie which will keep your meaningful time. Don't miss this thriller - "Talvar this friday"

Talvar Movie Review

Movie : Talvar
Written By : Vishal Bhardwaj
Directed By : Meghna Gulzar
Produced By : Junglee Pictures  

Starring : Irrfan Khan, Konkona Sen Sharma, Tabu, Neeraj Kabi & Others
Rating - Outstanding 

With power packed names like actor Irrfan Khan, Konkona Sen Sharma and Tabu, Story Writer Vishal Bhardwaj and Director Meghna Gulzar the expectation from the, real life inspired , thriller "Talvar" gets elevated. Thankfully the movie not only lives upto the expectation but also raises the bar for alternate genre of sensible movies. Though the director and story writer had almost no scope of twists and turns, they succeed to keep audience unblinking throughout the movie. It is to the credit of the director Meghna Gulzar that she strongly holds the audience interest right till last moment and even beyond. Your nerves are certain to overwork in thought stirring moments when you step out after the movie.

"Talvar" based on double murder of a teenager and house servant draws clear inspiration from infamous Noida "Aarushi-Hemraj" murder case which hogged the limelight of nation for years. At times movie erupts the myriad emotions and hold backs the human conscience. Movie rotates around the powerful story line up  , which interestingly is known almost by everyone, on the one side and unflinching Irrfan Khan on the other side. Making a film on real life incidence is formidable job especially when it lacks the usual bollywood masala, here full marks goes to director and actors who infused life into it so lividly that makes it a thriller. Irrfan Khan acting as the lead investigating officer carries the movie on his shoulder with natural prowess. Unyielding Konkona Sen Sharma who has restricted presence in the movie adds value alongside stoic Neeraj Kabi. Director has smartly broken the monochrome by inserting the other side of Irrfan Khan's personal life with wife Tabu. It helps the movie to go light whenever thought start dominating the nerve system.

Movie takes heavy toll on first hand sloppy investigation by city police, in satirical as well as grievous way. Vishal Bhardwaj's story successfully exposes the blemish police investigation with rage as well as satire. Crafting the story line with impeccable perfection for such complicated case was no easy task for writer but he flows it not only in neutral path but also humorously tears apart the investigation carried by government agencies. Meghna Gulzar has done full justice with story by giving soul to the movie with her matured direction. Flip Flop investigation by local police and bizarre helplessness of agency probe is depicted in very neutral way. Movie is not judgmental but shows all the versions and angles with neutrality and leaves it to the audience to go with version which they may find more compelling. The devastated and feeble investigation process blows out the belief on established bureaucratic structure. Movie tilts from honour killing to mysterious murder angles and evokes anger and dispair. 

Irrfan Khan in lead role plays the different shades and keep the movie rolling in every direction, be it an avid investigating officer or disgruntled humorous husband. Konkona Sen Sharma playing the role of mother of teenager is as natural as she can be. Her role in the movie is pre-defined from the story line giving her less space for her versatile acting but even with restricted horizon she is central in the main plot. Neeraj Kabi playing as the father has even more silent dimension, he has also shown the natural flavour to play the character. Tabu ,playing wife of Irrfan Khan has more tickling appearance as she is detached from the main story plot.

Meghna Gulzar has done simply brilliant work for keeping the flow of the moving independent and rolling. It is definitely her best outcome as she seems to have gone in the skin of the infamous murder case pulling it one by one so finely. Her acute representation of even a smaller evidence makes one revisit the varied sequences as claimed by different parties. She deserves the pat on the back for depicting so complicated case in such natural flow. And Vishal Bhardwaj the man behind the scene, must have worked hard to live the sequences again and again before unraveling the story plot.

 

Watch "Insaaf" Song from Talvar Movie : https://www.youtube.com/watch?v=BmCSvu03wSY

Watch "Patli Gali" Song from Talvar Movie : https://www.youtube.com/watch?v=ycuep651IFw

 Watch "Zinda" Song  from Talvar Movie : https://www.youtube.com/watch?v=oFvPh0nPnFI

Overall, this "who done it" movie is one of the must watch of 2015. It has ability to pull the audience to the core and keep them connected throughout. Once in cinema it is sure to keep you on edge of your seat from beginning till the end. Movie gets stronger with its songs especially the song "Insaaf Hoga" is just lovable. It's a must watch movie in cinemas and one of the most distinguished movie which will keep your meaningful time. Don't miss this thriller - "Talvar this friday"

Kitchen Chimney : A Beginners's Guide

As the lifestyle of modern India shifts towards contemporary global lifestyle, Indian homes experiences lot of changes. The most vibrant part of a home is turning out to be the kitchen, which now beckons utility as well as style. Kitchen Chimney is one such utility which has caught the imagination of Indian Kitchens faster than any other appliances. Primarily these chimneys sucks out stale air, removes fumes and air-borne grease particles, it takes out what’s bad and leaves you with what’s good. 

Broadly Chimney can be sub divided in 2 types

Ducting or vented Chimney: 

Ducting Chimneys which ducts out smoke and fumes outside the house through PVC pipes and leaves the kitchen fresh. Most of the homes uses this kind of chimney

Ductless Chimney (Split) :   

Ductless chimney recycles the air in the kitchen and provides fresh air. It doesn’t pull out the air but releases it back into the kitchen. 

How Electric Chimney Work

Before buying an electric chimney it is advisable to understand how the electrical kitchen chimney works. An electrical chimney is placed just above the cooking stove, normally 3-4 ft of height from cooking pane. Chimney sucks in all the oil, grease, smoke, vapor, odor and other small particles that are popped out during cooking. The smoke which is sucked in by chimneys are normally thrown out while some appliances can also recycle and circulate it back in the kitchen. This is how a chimney works to keep the kitchen in good shape and free of stain and odor. 

Major Brands of Kitchen Chimneys : Faber, Glen, Kaff , IFB, Prestige, Bajaj, Sunflame, Pigeon, Hindware, Whirlpool 

Advantages

1) Your granite/marble/tiles/wooden furnishings will be protected from sticky fumes which comes out from pressure cooker and frying pans.

2) Your kitchen wall and roof is protected from the stains of cooking

3) Protection from steam/smoke when you are preparing

4) It will help prevent sneezing when chillies are fried

5) The kitchen is easy to maintain and clean.

6) It will improve the aesthetics of your already beautiful kitchen.

Points to be Checked

Size of the Chimney : It particularly depends on the size of the kitchen and size of the family. Normally, product is offered in size of 60 Cms and 90 Cms. Size of 60 Cms is good for a family cooking of 5-6 persons

Air Suction Capacity : Practically, for a small family air suction capacity of 400 m3 per hour is good enough, however traditionally most users go for air suction capacity upto 1000 m3 per hour. Higher suction capacity is particularly required in Indian kitchen due to varied cooking methods involving spices and tadka.

Number of Blower :  Blowers in the kitchen chimneys works for the effective exhaust of unwanted smells and oil vapours at different speeds, it gives better outputs and lower noises. Higher the numbers of blowers better it performs in ensuring more effective removal of unwanted smells, oil and grease.

Control : Chimney control can be slider, push or even touch sensors in high end chimneys.

Types of Filters
Chimney Filters can be classified into two types depending upon structure and materials i.e. Mesh and Baffle.

Mesh Filter

Normally Mesh Filter is made of Stainless steel or Aluminium, Stainless Steel is relatively costlier than Aluminum but Aluminum is light weight. Filter which has multiple layers of mesh retains grease and oil particles from smoke and throw out remaining smoke. On consistent use Mesh holes get blocked by grease and oil particles thus reduces suction capacity of the chimney and needs cleaning. Cleaning is easy in Steel mesh as compared to Aluminum . For Indian households, this type of filter is least recommended as it needs cleaning every week.

Baffle Filter

Baffle filter panel is made of multiple curves though which air sucked by chimney passes through , during this process panel retains oil, grease particles in it. As grease and oil particles are not obstacle to flow of air, so less chances of getting it blocked and it has higher duration of cleaning. Normally a baffle filter needs to  be cleaned once a 4 to 5 weeks. Most baffle filters are made from stainless steel panel. 

Conclusion : For a well done modern house Chimneys are integral part of the kitchen to have a hygienic and well look. The features and type depends on the budget as Chimneys are available in price range of Rs 5000 to Rs 100,000. It solely depends on the budget of the household to decide which kind of chimneys to go with. 

Recommendation is to use Air Suction capacity of 700 or more , made of baffle filter and should have 60 cms of size. Other features are related to outlook and operational ease which an individual can decide self.  

Flipkart vs Snapdeal : Online Battle Heats Up

When the Summer of 2015 descends and mercury dips down there is one imminent nostalgic battle between Flipkart and Snapdeal which can heat up the market place of Indian e commerce industry. This battle of two major domestic online player has all the spices from sledging each other to greater and better deal to customers. None of the two player are ready to back out in face to face battle in Indian market. It is remarkable to observe in India, very rarely two business houses have rubbed against each other openly but that aggression is no more missing out. Can it match iconic Pepsi vs Cola like war back at home or even outdo that, will be interesting to watch out. 

It is difficult to predict when and how the rivalry broke out but the kind of industry and competition they are into it is natural to keep each other at bay. This strategy has another advantage of getting more eyeballs from customer thus giving minimal room to the rest players from the clash of titans. The era of ambush marketing is out in open, at least in online marketplace. 

When Snapdeal Co Founder Rohit Bansal lamented the shortcoming of software engineers in India for the kind of programming he wanted, Flikart Co Founder and CEO took no time to buzz him off through twitter. Sachin directly hit out at Rohit for not finding the right talent and termed this as failure of Snapdeal to mine the talentpool.   

#AchhaKiya Trolling

When Snapdeal trolled Flipkart on #AchhaKiya campaign, in all probability it would have left Flipkart heartburn as Snapdeal suddenly caught the attention and the whole campaign of Flipkart was reeling under trolling pressure. 

 For readers who may be unaware of , #AchhaKiya was a big bang marketing campaign of Flipkart, In June this year Flipkart launched  Achha Kiya campaign on Television, Print Media and Social Media with a message "Nahi Khareeda, Accha Kiya" (Didn't Buy, good for you) 

So the campaign was all about telling customers that your wait pays if you didn't buy. This was a covert campaign launched by Flipkart with scheduled teasers to excite customers. In any good weather days, it would have been a great campaign to lure the customer. But the excitement of Flipkart was short lived as Snapdeal hit back swiftly on campaign rhyming Achha kiya bata diya, #YahanSeKharido (Good that you told, Buy from here). 

                                                                           

And Snapdeal Trolling was not limited to Social Media but it went out it open, challenging Flipkart billboard and placing it's hoarding just below the Flipkart ad teasing customer even more. Not to disappoint Flipkart marketing team but Snapdeal won this round with applause. Prior to this Snapdeal had also poked at Flipkart during Big Billion Sale and asked customer to check at Snapdeal before they buy at Flipkart. 


Online Market Place Positioning 

Based on GMV if we try to analyse the Indian e-tailers, Flipkart is obviously No. 1 for the time being and will continue to do so in near future as well. Flipkart is estimated to have mopped up over $3.5 Billion of funding from investors where as Snapdeal estimate is $1.75 Billion as funding received.

In terms of valuation Flipkart is growing at CAGR of 150% in last 3 years and GMV is growing at 250%. In last 3 years time Flipkart GMV has grown 50 times and by end of 2015 Flipkart targets to touch $ 8 Billion in GMV.

On the growth trajectory Snapdeal has also charted similar path albeit on smaller value if compared to its home gown rival. Snapdeal GMV in last 4 years has grown by 566% and valuation by 145%. Snapdeal at its current pace may end up at $3.5 in sales based on GMV.

Since neither of the companies in E Commerce are yet profitable So the parameter to judge them can only be on GMV. Gross Merchandising Volume or GMV is total sales value of merchandise sold through the marketplace. So until the profit hits the industry the GMV can be used as yardstick to judge the marketplace.

Festive Rivalry

In it's tradition to keep Flipkart bemused, recently in an interview Snapdeal CEO Kunal Bahl claimed to dethrone Flipkart from Number 1 position by March'16. It was certain to cause unease in Flipkart which assertively hit back by ruling out any such feat by Snapdeal or by any other etailer. Flipkart termed the marketplace as no competition by claining any retailer can not even touch half of the sales of flipkart by March'16

Flipkart will sell goods worth $10 billion (Rs 65,000 crore) during fiscal 2016, and "nobody will be even half of that", the company's head of commerce Mukesh Bansal told ET. "There is not a shred of doubt based on all the market numbers we have today."

Earlier Kunal Bahl said  "The one thing I am very, very clear about right now is that I think we're going to be No. 1 (in terms of sales) by March 2016," in an exclusive interview with ET. "I think we're going to beat Flipkart by then."

Analysing the current market position and growth trajectory of both companies it looks unlikely that Snapdeal displaces Flipkart so soon and so easily. But what makes Kunal Bahl to claim this openly. This time it definitely was not a satire like "Big Billion Day" or "Achha Kiya" trolling. So what was it ?
Though Snapdeal CEO didn't disclose how he is going to beat Flipkart in sales value but it is imperative his bet is high on the sales added by recently acquired Freecharge. Mobile recharge space which is highly dominated by Paytm can be a game changer for Snapdeal if it is executed in right way. The category of fashion apparels/electronics/home furnishing falls in shopping needs but mobile recharge and bill payment is need of every mobile user. So decoding this segment could fuel GMV of Snapdeal beyond the projections done by most analyst. 

In his interview to ET Mr Bahl also took pot shot on Myntra App Only decision of Flipkart terming it consumer unfriendly idea ever. 

So, on advent of festive season when they sit in boardrooms deciding the strategies to win over the customer they will have to piece together the ideas which at the same time can win consumer mind space. The mindgame will continue to boost the marketplace from print media to social media. The masculinity and the feminism together will hold keys to make winner but one thing is sure customers are going to get good spoons of discount as well as entertainment when Snapdeal and Flipkart muscles it out in open.
All The Best  

Real Estate - Uncertainty on buying decision

Recently at the SBI Conclave RBI Governor Raghuram Rajan hit the bull's eye of Real Estate problems. He categorically said it is not the interest rate but the sky rocketing home prices which is hurting the industry and keeping the actual buyers at bay.

I think we need the market to clear. With growing unsold stock, we need to see the ways to do it. Some of it might be by making loans easier, but we also don't want to create a situation where prices stay high at the level which means demand can't pick up" Said Rajan

He added - It would be "great help" if realty developers sitting on unsold stock bring down prices. Once the prices stabilise , more people would be keen to buy houses. 

Nothing can be narrated in precise way than RBI governor did. The realty segment today is under depression and has dearth of buyers. If we go by statistics, situation seems so grim that entire hype created in last one decade might prove to be a bubble. However, it is interesting to note that developers are not ready to buzz down and are defiant to keep the artificial prices in the segment despite advice of Mr Rajan. Their argument is high input cost and high land prices doesn't allow them to bring prices down. 

URBAN HOUSING
Urban Housing in last 20-25 years has seen changes inspired from global trend. There is social, financial as well as economical aspects which has changed the living pattern. Migration to bigger city, emergence of nucleus families and easy availability of financial assistance from lenders are some of the reason which has paced the growth of urban housing in last few years. Demand from the Tier I and Tier II cities resulted into urban cities cluster into many parts of country. For   example, Delhi today is surrounded by urban cluster of Gurgaon, Faridabad, Noida, Greater Noida and Ghaziabad which has given millions of people choice of affordable as well as luxurious living options. Geographical spread of Delhi certainly could not have withstood if the growth was largely concentrated into it. Same is the story everywhere near metropolitan cities as they expand horizontally as well as vertically. If one drives through the outskirt of cities one can find huge cluster of housing developments underway. It makes one think if so much of new construction will find actual buyers ???

DEMAND & SUPPLY

Demand and Supply are the basics of any trade to decide the prices. However in housing segment the figures are quite interesting as well as worrisome to see.

According to "White Paper - Indian Housing Industry" by Research & Consultancy firm RNCOS, urban Housing shortages in India may reach to 34.1 Million by 2022. Urban housing shortage stood at 18.8 Millions in 2012 and is growing every year. It plainly means there is less number of houses being constructed than actually required.

But in contrast it is reported that all metro cities have inventory piled up as ready to move homes are unsold. As per report of  Knight Frank India , there are approximately 7 lakhs unsold homes in 8 major cities. Mumbai Metropolitan area with 1.95 lakhs unit and Delhi NCR with 1.9 lakhs units leads the pack. However the statistics on this account is difficult to get as developers and builders won't reveal the actual figures. Further it is estimated it will take around 3-5 years time for inventories to be sold up at current pace. The situation as stated above lands us in a situation where on the one hand there is urban housing deficiency on the other hand there is unsold inventory waiting to be taken care of.

So what is causing this imbalance in demand of basic need of Housing ? In all probability Price. When a decision making tilts towards the pricing , it definitely favours the buyers better than ever.

IS IT BUYER'S MARKET  

When there is slowdown in sales and correction in prices it is assumed to be buyer's market as they start calling shots than ever. The situation is like more houses chasing less number of buyers. Be it Primary or Secondary market, the seller loses the hold on firm prices. Year 2006-2010 is stated to be Seller's market when there was no equilibrium and prices moved north very rapidly. In comparison, 2010-2014 was more a balanced market where sellers and buyers almost had similar negotiable clout. Still buyers had upper edge in primary market and seller in secondary market.

If we evaluate situation today, Buyer's have got the upper edge in negotiations. While the luxury segment has seen price correction of upto 25-30% , the similar correction is yet to be observed in mid and affordable segments. Mid and Affordable segments has still not seen any substantial price correction in last several months. While luxury segment is being driven mostly in secondary market, Mid and Affordable segment is still being largely controlled by developers. And developers are not ready to lower the prices, even if the they have unsold inventory resulting in market to hang in balance. If market is not going down, it is not going up either.

Expect market to be corrected by at least 12-15% in this segment in coming 1-1.5 years. The correction of 15% if factored with 8% bank interest of holding fund with self gives buyer advantages of around 23% in a year and around 30% in 2 years horizon. It is also to be noted that, a rented home always costs you lesser than EMI on same home if purchased. Another observation here is market seems unlikely to go up in less than 2 years time horizon, which emphatically means equilibrium will continue to remain in prices. Buyers holding fund for better negotiation also beat the uncertainty of under construction houses which is the biggest evil in this industry. Many experts might say this is best time to buy property (like they always say) but in my opinion wait & watch can bring more fruits for a decisive buyer. Some special housing pockets might duck the trend though and outperform the overall industry.

 

E Commerce - How the future shapes ?

E Commerce has been the biggest challenger to the organized Retail Industry in recent time or any time ever. The formidable challenge posed by E Commerce company is so much that organised retail industry in its worst nightmare can not deny the snapping of market share in long term future. 

The trend is global and not specific to particular region or lifestyle. US, Europe, Canada or in Asia Pacific Region China and India are equally unilateral in accepting the Online Shopping (E Commerce). Asia Pacific Region is accounted to be 33% of global market place as in 2015 and expected to rise to 37% by 2018.

United States stands to hold numero uno position in E Commerce at present but China seems all set to outdo United States very soon. India the second most populous country is far behind in absolute value but estimated to have eight fold growth in E Commerce volume from US $ 2.5 Billion in 2012 to US $ 17.5 in 2015. 

India E Commerce Scenario

E Commerce in India can be termed still at very nascent stage in India. Though, some traditional retailers have already started to attribute loss of sales to online sellers but their apprehensions seems to be misplaced. In India online shopping accounts merely 0.5% of total sales as in 2014 and expected to reach around 3% by 2020. Online travel booking comprises 70% of the total e commerce transactions in India. With these figures certainly online retail market can not destabilize the traditional and organised retail market to the extent of recognition as of now. 

But the complacency ends here, India's overall E Commerce grew at CAGR of 34% to US $ 16.4 Billion in 2014 and expected to surpass US $ 22 Billion 2015. Under the E Commerce, Online Retailers and Marketplace is growing at even faster speed of 56% CAGR from 2009 to 2014. (Source PwC). Apparel & Accessories, Books and Electronics are the most popular segment under online retailing.

Low internet penetration was one major roadblock hurting the industry. Just 16% of India's population has internet penetration as against 50% in China, 57% in Australia, 69% in Japan and 70% in Korea. So internet penetration as compared to other Asia Pacific countries is quite smaller. However, this problem has been smartly  handled by E commerce companies through M Commerce (mobile app)

As per the google study (Nov 2014), approximately 100 Million people are expected to shop online by end of 2016 against 35 Million as in 2014 and 8 Million in 2012. Of this expected 100 Million customer base a robust 40 Millions are expected to be Women and around 50 Million new buyers are expected to come from Tier 1 and Tier 2 cities.

As the battle of mobile apps takes intensive turn various online players also get into the survival of fittest mode. As of now home grown Flipkart remains to be the biggest and the most popular in overall category aided by its prized acquisition Myntra in Apparel & Accessories category. Might of Flipkart is chased by Snapdeal and Paytm though by distance. 

Amazon and Uber, the two major foreign player constantly consolidating their position in the marketplace. 

The speed at which the E Commerce and M Commerce category is expanding, there definitely is threat to the organised as well as unorganised retail but as of now the traditional players are given enough arm distance to be on safer distance. The current battle leads more towards the fight of supremacy challenging one another in the game rather than challenging outside players. Another 3-5 years of online sales is going to be quite more interesting for the players as well as shoppers.