Bollywood sees big money in e-commerce
The e-commerce craze has now caught up with Bollywood, with the who’s
who of tinsel town pumping money into this rapidly evolving space. From
superstars like Salman Khan, Sanjay Dutt, Ajay Devgn, Karisma Kapoor and
Shilpa Shetty to lesser-known actors like Vatsal Seth, all are making a
beeline to cash in on the near $10-billion opportunity.
Last week online travel portal Yatra.com announced that Khan
had become a stakeholder and brand ambassador for the Gurgaon-based
firm, which is reported to have plans for a public listing next year. In
December, Kapoor had picked up a majority stake in BabyOye.com, an
online babycare products store, for an undisclosed amount. The highly
enterprising B-town diva Shetty had launched GroupHomeBuyers.com — a
group real estate buying site — through a 50:50 joint venture with
Mumbai-based first-generation entrepreneur Hem Tejuja, just a few months
ago. Devgn and Dutt have invested in ticketing service
Ticketplease.com, whereas, Seth and Sohail Khan founded celebwears.com —
a customised apparel store.
Traditionally, Bollywood stars have been big on parking their
spare cash in more conservative avenues such as real estate, art and
hospitality. The growing trend with celebrity investments, however, is
equity participation. And e-commerce, being the hottest-selling idea, is
deriving the benefits. It is also inherently not capital intensive, and
is known to have quick and high returns on investment, when successful.
E-commerce is the future, said Shetty. “Sales for GroupHomeBuyers
have already crossed R35 crore since we started, and we have got over
one and a half lakh hits. I entered the space because e-commerce is the
way forward; and also because GroupHomeBuyers was a unique proposition,
and a first of its kind in the world,” she told FE.
“I don’t want to do something because it is a fad, but I will
definitely look into further viable opportunities in e-commerce,” Shetty
added. In addition to real estate, the website also trades in things
like insurance and home loans, which has taken total revenues to R120
crore so far.
Actor Neha Dhupia also launched HerStyle.in, her own e-retail
venture for women’s apparel, fragrances, and personal care products.
Dhupia, who entered the business due to a personal inclination, says she
is already set for more action in e-retail.
“I am planning further ventures in e-commerce, and I will be
happy to talk about it once it goes live. I got into the space with
HerStyle.in due to my own awareness of it, and because I have friends
with prior knowledge and experience in it. I can't disclose how much I
have invested in it, but it is a pretty decent amount,” Dhupia said.
The Indian e-commerce field, estimated to be a $10-billion
market, has been one of the largest recipients of venture capital and
angel investments in the past two years. Last year alone, there were
about 32 investments, with big-ticket deals ranging between $25 million
and $40 million. Several members of India's technocracy have also opened
their angel investment book with e-commerce start-ups. Deep Kalra,
chief executive of Makemytrip.com, part-funded Zovi.com, an apparel
store. In March, Sunil Singh, the India managing director of software
product firm GlobalLogic, invested in the kids' segment with
allschoolstuff.com. And Naveen Tiwari, founder of InMobi, picked up a
stake in Chottu.in.
Said Anirban Das Blah, managing director, Kwan Entertainment and
Marketing Solutions, a celebrity management firm, "Overall equity
participation will be the single biggest strength in celebrity
endorsement. In a field like e-commerce, there is no opportunity cost.
They (celebrities) have nothing to lose, but the upside is massive.”
“Some of the recent deals that have happened in this space with
Bollywood actors are sweat equity deals,” he added. Sweat equity refers
to an investment format wherein the investor pays for his stake in
effort rather than through financial equity. For instance, Salman Khan
has a multi-layered deal with Yatra, where he owns equity, said the
company's head, marketing and strategic alliance.
“It's a win-win venture for both parties. As companies get a
brand push, stars use it as a medium to be in the news and in the public
eye in between their move releases and dry spells," explained Rashmi
Vallabhajosyula, brand expert and founder, Altius Consulting.
Star Bazaar
* Salman Khan is a stakeholder in & brand ambassador for online travel portal Yatra.com
* Karisma Kapoor has a majority stake in online babycare products store BabyOye.com
* Shilpa Shetty has 50% stake in group real estate buying site GroupHomeBuyers.com
* Ajay Devgn & Sanjay Dutt have invested in ticketing service portal Ticketplease.com
* Vatsal Seth & Sohail Khan have founded customised apparel store website celebwears.com
No comments:
Post a Comment