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Why Chumbak's Business Model is so successful?

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Chumbak’s Company Overview


Chumbak, founded in 2010, is an Indian lifestyle brand known for its vibrant and quirky designs spanning home decor, fashion, accessories, and more. The brand is synonymous with contemporary Indian aesthetics and offers a wide range of products that celebrate India's diverse and colorful culture. Chumbak is a design-led lifestyle brand for apparel, home, and accessories products. They retail over 100 categories across 17 stores across India across formats. A quirky Indian design and lifestyle brand. They sell fashion accessories, apparel, and home decor. They also design and manufacture their own products. Chumbak's business model revolves around creating unique and visually appealing lifestyle products that resonate with the modern Indian consumer. The brand combines traditional Indian artistry with a contemporary twist, catering to a younger and trend-conscious demographic. Chumbak operates online and offline, with a solid retail presence in major cities and a robust e-commerce platform. The brand's distinct design philosophy sets it apart, creating a niche for individuals seeking vibrant and culturally inspired products. Chumbak generates revenue by selling its diverse product range, including home decor, fashion apparel, accessories, and stationery. The company leverages a direct-to-consumer approach, selling products through its physical stores, franchise outlets, and official e-commerce websites. Revenue is also generated through strategic collaborations, partnerships, and limited edition collections. Chumbak's ability to balance affordable pricing and unique design aesthetics has contributed to its success, attracting a broad customer base across India. Additionally, the brand occasionally engages in promotional activities, discounts, and seasonal sales to further drive sales and enhance customer loyalty.

https://global.chumbak.com/

Country: Karnataka

Foundations date: 2010

Type: Private

Sector: Consumer Goods

Categories: Retail


Chumbak’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, nostalgia, design/aesthetics, badge value, fun/entertainment, attractiveness

Functional: variety, sensory appeal, informs, simplifies, reduces effort, avoids hassles, reduces cost


Chumbak’s Related Competitors



Chumbak’s Business Operations


Cash machine:

The cash machine business model allows companies to obtain money from sales since consumers pay ahead for the goods they purchase, but the costs required to generate the revenue are not yet paid. This increases companies' liquidity, which they may use to pay off debt or make additional investments. Among several others, the online store Amazon often employs this business model.

Aikido:

The aikido business model is often characterized as using a competitor's strength to get an edge over them. This is accomplished through finding weaknesses in a competitor's strategic position. In addition, it adds to marketing sustainability by exposing rivals' flaws, finding internal and external areas for development, and attracting consumers via specific product offers that deviate from the norm.

Crowdsourcing:

Crowdsourcing is a kind of sourcing in which people or organizations solicit donations from Internet users to acquire required services or ideas. Crowdsourcing differs from outsourcing because work may originate from an undefined public (rather than being commissioned from a particular, identified organization). In addition, those crowdsourcing procedures are a combination of bottom-up and top-down. The benefits of crowdsourcing may include reduced prices, increased speed, better quality, increased flexibility, scalability, and variety. An anonymous crowd adopts a solution to a task or issue, usually through the internet. Contributors are compensated or have the opportunity to win a prize if their answer is selected for manufacturing or sale. Customer engagement and inclusion may help build a good rapport with them, resulting in increased sales and income.

Community-funded:

The critical resource in this business strategy is a community's intellect. Three distinct consumer groups comprise this multifaceted business model: believers, suppliers, and purchasers. First, believers join the online community platform and contribute to the production of goods by vendors. Second, buyers purchase these goods, which may be visual, aural, or literary in nature. Finally, believers may be purchasers or providers, and vice versa.

Discount club:

The discount club concept is built on perpetual high-discount deals utilized as a continual marketing plan or a brief period (usually one day). This might be seen as a reduction in the face value of an invoice prepared in advance of its payments in the medium or long term.

Corporate innovation:

Innovation is the outcome of collaborative creativity in turning an idea into a feasible concept, accompanied by a collaborative effort to bring that concept to life as a product, service, or process improvement. The digital era has created an environment conducive to business model innovation since technology has transformed how businesses operate and provide services to consumers.

Fractionalization:

This business model has a varied tipping point in various markets because units or serving sizes of a product or service has been harmed/modified throughout the manufacturing process. The website's owner earns money by receiving a portion of the price of the goods or services. For instance, if you run a book club, you may sign a contract with Amazon or another retailer and then use their website to sell the books you're discussing, earning a portion of each sale.

Make more of It:

The business invests time and money in developing in-house expertise and development that may be used both internally and outside to sell goods or services to clients or third parties. AWS was created to meet Amazon's cloud computing requirements. They quickly discovered that they could offer their services to end-users. At the moment, AWS accounts for about 11% of Amazon's overall income.

Unlimited niches:

Online retailers provide specialized content to various niche client groups via continuing mass-customized customer relationships. The sector of technical content providers is a second client segment. Combining these two factors may result in an infinite number of niches. New material is produced and distributed through online channels, which implies that online retailers must prioritize platform maintenance and marketing in addition to service delivery.

One-off experience:

The one-off experience business concept aims to facilitate the interaction between consumers in abundant marketplaces and their experience-seeking counterparts. This business model can only succeed if social media firms collaborate with physical event organizers, online pop-up shops, and e-commerce merchants. Developing software and participating in continuous dialogue with their consumers is insufficient. This business model provides consumers with unique experiences at a particular location during a specific event.

Long tail:

The long tail is a strategy that allows businesses to realize significant profit out of selling low volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The term was coined in 2004 by Chris Anderson, who argued that products in low demand or with low sales volume can collectively make up market share that rivals or exceeds the relatively few current bestsellers and blockbusters but only if the store or distribution channel is large enough.

Revenue sharing:

Revenue sharing occurs in various forms, but each iteration includes the sharing of operational gains or losses amongst connected financial players. Occasionally, revenue sharing is utilized as an incentive program ? for example, a small company owner may pay partners or colleagues a percentage-based commission for recommending new clients. Occasionally, revenue sharing is utilized to share the earnings generated by a corporate partnership.

Lean Start-up:

The Lean Start-up methodology is a scientific approach to developing and managing businesses that focuses on getting the desired product into consumers' hands as quickly as possible. The Lean Startup method coaches you on how to guide a startup?when to turn, when to persevere?and how to build a company with maximum acceleration. It is a guiding philosophy for new product development.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Shop in shop:

A store-within-a-store, sometimes known as a shop-in-shop, is an arrangement in which a retailer leases out a portion of its retail space to another business to operate another independent store. This arrangement is prevalent with gas stations and supermarkets. In addition, numerous bookstores collaborate with coffee shops since consumers often want a spot to relax and enjoy a beverage while browsing. Frequently, the shop-within-a-store is owned by a manufacturer who operates an outlet inside a retailer's store.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Take the wheel:

Historically, the fundamental principles for generating and extracting economic value were rigorous. Businesses attempted to implement the same business concepts more effectively than their rivals. New sources of sustained competitive advantage are often only accessible via business model reinvention driven by disruptive innovation rather than incremental change or continuous improvement.

Radical transparency:

The concept of radical transparency, or everyone knowing everything, has the potential to be a significant driver of improved organizational performance. This is especially true for new, fast-growing businesses that are under pressure to achieve aggressive sales targets and keep their investors pleased. In governance, politics, software design, and business, radical transparency refers to activities and methods that significantly enhance organizational processes and data openness.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Mass customization:

Mass customization is a strategy that entails using modular goods and manufacturing processes to allow efficient product individualization. Mass customization refers to producing customized output using flexible computer-aided manufacturing systems in marketing, manufacturing, contact centers, and management. Mass customization is the next frontier for manufacturing and service sectors alike. Beyond the physical product, mass customization is utilized by a diverse variety of software products and services with the goal of developing strong connections with customers via personalization and suggestion.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

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