How to capture every other fashion sale online 💃👫🏃

If you are Flipkart, you will do that by buying Jabong for $70 million – and have 50% market share.  Flipkart-Jabong deal is one of the five numbers we selected for you today. Please do read and let us know what you think.

Did you know that in its early years Flipkart grew primarily by word of mouth? The customers who liked its service recommended it to their friends.  If you like our newsletters, you can do that too. Please forward this link to those might be interested: http://howindialives.com/news/newsletter/

News In Numbers: July 27

0.5 times

What is it? The revenue multiple at which Flipkart bought online retailer Jabong. At $70 million, the buy price is about 50% of Jabong’s revenues.

Why is it important? Fashion and apparel segment is most profitable among all online segments. In addition, Jabong has reported gross profit margins. The deal is also an indicator of the valuation of firms in fashion e-tailing sector. In 2014, Flipkart bought Myntra forabout $300 million.

Tell me more: Once the deal is through, Flipkart will secure more than 50% market share in online fashion and apparel market in India. Amazon is also actively pursuing this space.

 1.2 million

What is it? The number of people affected by floods in Assam due to overflowing of the state’s main river Brahmaputra.

Why is it important? The situation has become worse in the last two days with half of Assam’s districts impacted. Nearly 1.27 lakh people moved into 322 relief camps in 19 districts so far, and 10 people have lost their lives.

Tell me more: 60 per cent of Kaziranga National Park, which houses one-horned rhinoceroses, is submerged because of floods. This has pushed the rhinoceroses into high grounds where they are vulnerable to poaching.

 

Rs 1.02 trillion

What is it? The amount of additional money government will spend this fiscal to implement the Seventh Pay Commission recommendations for central government employees.

Why is it important? This additional money in the hands of around 3.1 million employees will spur demand for consumer facing industries like cars, two-wheelers, durables etc., The top 25 cities will account for 38% of salary gains from implementing the pay commission recommendations.

Tell me more: Though the pay commission recommendations are restricted only to central government employees, the state governments would also be forced to increase salaries over the next two years.

 Rs 600 crore

What is it? The amount the government paid to external lenders between 2009-10 and 2014-15 for unused credit line as commitment charges.

Why is it important? This could have been avoided with better debt planning, according to Comptroller and Auditor General (CAG). India’s external debt – at $474 billion by end of 2015 – around this period was second highest among the Asia Pacific countries.

Tell me more: While external debt has grown, India (at 23%) also has among the lowest external debt to GDP ratios among the emerging economies

 2

What is it? The potential jail term for those who employ children, according to changes in child labor law  labour.

Why is it important? This is more stringent than the existing penalty for the violations, and might help bring down child labour – and along with Right to Education initiatives increase enrollment in schools. At the same time, the new changes allow children to work for their families and have brought down the number of banned occupations for adolescents. United Nations has warned it could adversely impact backward castes and tribals.

Tell me more: The Child Labour (Prohibition and Regulation) Amendment Bill, passed in Lok Sabha on Tuesday increased jail term for offenders to 6 months to two years  and or a fine of Rs 20,000 to Rs 50,000. Imprisonment can go upto three years for a second time offence.

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News in Numbers, July 1, 2016: World Bank’s loan to India for solar, Flipkart vs Amazon…

$1 billion

What is it? The amount the World Bank would lend to India for its solar energy programme.

Why is it important? This is the biggest ever loan given by the bank for a solar programme to any country and would help India achieve its ambitious target of installing 100 GW (gigawatts) by 2022. The solar power generation had crossed 19,000 MW (megawatts) in 2015-16 though the Minister for Power, Coal, New and Renewable Energy is looking to achieve this target by the end of 2017 itself.

Tell me more: India wants non-fossil fuel (wind, water, solar and nuclear) to account for 40% of the total installed power capacity by 2030 from 30% currently. The World Bank has lent $4.8 billion to India between 2015 and 2016, making it its biggest client.

Rs 2,28,986 crore

What is it? India’s fiscal deficit (excess of expenditure over receipts) for April and May of 2016.

Why is it important? It’s 42.9% of the budget target for this fiscal compared to 37.5% for the same period last year (despite a slowdown in government’s capital expenditure.) This may make it challenging for the Finance Minister to restrict fiscal deficit to Rs 5.33 lakh crore in 2016-17, especially with the implementation of the Seventh Pay Commission that would cost the exchequer over Rs 1 lakh crore.

Tell me more: The government’s capital expenditure was down by nearly 12% to Rs 33,231 crore in the first two months of 2016-17 from Rs 37,743 crore in the same period last year. The revenue expenditure, which would go up further due to the Seventh Pay Commission payout, increased by 17.6% to Rs 2.64 lakh in April and May from a year ago.

 

Rs 8,392 crore

What is it? The amount held by Indians in Swiss banks at the end of 2015, a third lower than the previous year.

Why is it important? This is the lowest amount of funds held by Indians in the Swiss Banking system since the country started making its data public in 1997 and marks the second straight year of decline. This seems to be the impact of clampdown of illicit wealth by countries including India, which is likely to lead to Swiss banks become more transparent than ever. India has sought faster responses to its pending information requests from the Alpine nation and an automatic financial information exchange would begin in 2018.

Tell me more: The funds held by Indians in Swiss banks was at a record high of Rs 23,000 crore at the end of 2006.

 

91

What is it? E-commerce firm Flipkart’s score in the quarter ended March based on metrics including trust in a brand, product assortment and prices, overall buying experience in terms of ease of using its platform and the ease of product cancellations and returns.

Why is it important? Flipkart is still slightly ahead of Amazon India, which entered the country in June 2013 and had a score of 87, though Snapdeal was a distant third at 60. This is yet another sign that Amazon is ahead of Snapdeal and breathing on the neck of Flipkart. With a recent investment announcement of $3 billion in the country, Amazon India has an advantage over both Flipkart and Snapdeal, which has to depend on external investors. A US mutual fund managed by Vanguard Investment marked down the value of its shares in Flipkart by 25%, the sixth such markdown in recent times.

Tell me more: In terms of ‘Most trusted brand’ and ‘Best value proposition’, Flipkart scored higher than Amazon India while the latter beat the former in terms of ‘Great experience’. The analysis is by RedSeer Management Consulting for Mint.

 

683

What is it? The number of invitees to join the Academy of Motion Picture Arts and Sciences, of which 46% are women and 41% are minorities.

Why is it important? It will make the voters more diverse. The Academy had recently promised to double it female and minority membership by 2020. The Oscars came in for heavy criticism for having no nominees from minority actors for the second year in a row. However, it has a long way to go because even if all the invitees join, the share of women and minorities would only marginally increase (25% to 27% and 8% to 11% respectively).

Tell me more: If all those who invited were to join, it would increase the academy’s total voters to 6,945, a record in the last few years.

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News in Numbers, June 30, 2016: Terror attacks in India foiled, Grofers lays off 10% of staff…

5

What is it? The number of men who were arrested on suspicion of plotting a series of attacks across the country on behalf of the ISIS on Wednesday.

Why is it important? The team had reportedly planned bomb blasts in areas such as Charminar, an important government building and markets and malls. This is the third such action on ISIS collaborators since last year; in the first two instances, a total of 43 were arrested. One of the most dangerous terrorist organisations in the world, the ISIS had threatened to send fighters to conduct guerilla attacks in India a couple of months ago.

Tell me more: In the raids, the National Investigation Agency and the local police seized weapons, nitrate-based explosives, 40 mobile phones, a laptop, a pen drive, 32 sim cards and Rs 15 lakh in cash.

Rs 1.02 trillion

What is it? The amount that would be given as pay and pension increases to 10 million central government employees and pensioners after the Cabinet approved the Seventh Pay Commission on Wednesday.

Why is it important? This, along with the implementation of the One Rank One Pension scheme for ex-servicemen, is likely to boost savings and stimulate urban spending, especially in sectors such as automobiles, consumer durables and fast-moving consumer goods. The cumulative impact is estimated to be 0.63% of the GDP, according to Fitch’s India Ratings and Research chief economist. However, this may have an upward impact on inflation – retail inflation hit a 21-month high in May driven by food prices.

Tell me more: A report by the State Bank of India says this may impact the country’s fiscal deficit target in 2017-18. The employees and the pensioners would receive the hikes along with their August salaries and be paid with effect from January 1, 2016. The government will pay Rs 12,133 crore in arrears in the current financial year itself.

 

~45%

What is it? The share of monthly personal budget for consumer durables that’s spent on vehicles in India for domestic (as against enterprise) use, according to the latest government data.

Why is it important? Underlines the importance of automobiles and car ownership for urban and rural consumers, and therefore for the car companies, in India. Vehicles command the highest share even for enterprise use in both the urban and rural areas, accounting for an average of 80% of the monthly per capita expenditure.

Tell me more: The second highest expenditure was on jewellery across rural and urban India. Other items that Indians like to spend on are mobile phones, laptops, tablets, air-conditioners, geysers and coolers. In terms of services (excludes health and education), Indians spend the most on eating out followed by travelling.

 

150 – 200

What is it? The number of employees grocery-delivery startup Grofers has laid off. It’s about 10% of its total employees.

Why is it important? With this, Grofers joins a list of other hyperlocal startups such as Peppertap, Localbanya, Townrush, which have either downsized or shut down their operations earlier. Unicorns such as Flipkart and Paytm had tried their hand in this segment but pulled back, indicating that the business model for such hyperlocal startups has been tough to establish and sustain.

Tell me more: Grofers, which has raised about $165 million so far from investors such as Softbank, Tiger Global and Sequoia Capital, also revoked offers given to 67 students who were to join the startup in July. In January, Grofers had announced shutting down operations in nine cities and only four months before that, had expanded to 27 cities.

 

Rs 4,251

What is it? The average airfare to travel from Delhi to Chennai between June 29 and July 4 when booked on June 28, according to an analysis by Yatra.com for ET. Last year, the average airfare for the same route in the corresponding period was Rs 6,218.

Why is it important? Last minute booking is proving to be cheaper by up to 52% on various routes this year when compared to 2015. A 20% year-on-year decline in oil prices and an increase of 7-8% in passenger capacity are being attributed for the drop in fares, according to Yatra.com. The discounting could also be to achieve high passenger load factors.

Tell me more: In recent times, airlines, especially budget carriers, were seen decreasing air ticket prices but hiked cancellation charges by 50-100%.

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News in Numbers, June 10, 2016: Road accidents in 2015, drug abuse problem in Punjab is real…

Rs 200 crore

What is it? The amount Micromax Informatics is planning to invest in its Uttarakhand facility over the next year to make split and window air conditioners.

Why is it important? The handset-maker is looking to grow into a consumer durables company with an aim to generate about a fifth of its revenue from this segment in the next 12 months. Diversification into new businesses is likely to help Micromax boost its overall revenues as it lost its market leader position to Samsung in the smartphones segment last year.

Tell me more: The firm, which entered into the television business in 2014, earns 12% of its revenue from this segment.

945 – 2039

What is it? The estimated range of premature deaths due to outdoor air pollution per year per million people in India by 2060, according to a report.

Why is it important? The number was 508 in 2010. India is likely to continue to be among the worst affected countries even by 2060. Its impact on GDP is estimated to be 0.9% by that year.

Tell me more: The economic impact is calculated based on increased worker sick days and healthcare costs and, damage to crops. Globally, outdoor air pollution could cause 6-9 million premature deaths by 2060 with an economic cost of $2.6 trillion a year by 2060 or 1% of GDP, according to the Organisation for Economic Co-operation and Development.

 

11%

What is it? Percentage of passenger vehicles that were sold to government employees in 2015-16, up from approximately 10% in 2014-15.

Why is it important? Car makers are expecting this to go further up with the implementation of the Seventh Pay Commission in the current fiscal even as they faced slower growth in May with car sales declining by 0.86%. Along with government pay hikes  the monsoon cheer is likely to result in a consumption-led demand and more profits.

Tell me more: Government employees accounted for 16% of Maruti Suzuki’s domestic sales in 2015 and for Hyundai and Honda, the corresponding figures are 7.2% and 15% respectively,

 

501,423

What is it? The total number of road accidents in India in 2015, according to a report released by the government.

Why is it important? Youngsters in the age group of 15-34 years accounted for over half of the people killed in road accidents. The cause of the accidents is mostly cited as driver’s fault – over three-fourths of the road accidents were due to the driver’s fault and within this category, over 60% (each) of road accidents caused and people killed were due to over-speeding of drivers. Some activists have argued that citing drivers’ fault as the reason is the easiest way to close a case – because other possible causes such as faulty vehicle parts, bad roads or inadequate lighting/signs are difficult to establish. The latest death toll is yet another reminder that too little efforts are taken to solve the problem.

Tell me more: On an average, 17 people died every hour in road accidents in 2015. Road accidents killed 146,133 people last year (139,671 in 2014) and injured 500,279 (493,474 in 2014).

 

174

What is it? The minimum number of people charged under the Narcotic Drugs and Psychotropic Substance (NDPS) Act, who have died in Punjab prisons in 2014 and 2015, according to an analysis.

Why is it important? Highlights the seriousness of the drug abuse problem in the state, which has been at the top consistently or ranked among the top five in many of the metrics used to measure this abuse. There are 836 drug users per 100,000 population in Punjab (as per a 2015 survey) compared to the All-India figure of 250 per 100,000 (2012). The average rate of crime under the NDPS Act has been the highest in the state between 2005 and 2014.

Tell me more: The drug abuse problem in Punjab became a point of debate after the Censor Board decided to cut off all drugs-related references to Punjab in a Hindi film titled ‘Udta Punjab’. It quickly turned into a political issue after Congress and Aam Aadmi Party accused the BJP of influencing the Censor Board to prevent showing Punjab’s drug abuse problem (the party has denied it). The state, which is ruled by the Akali Dal-BJP combine, goes for state elections next year.

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