Magicpin app is offering small local retailers multi-million valuation. Using this novel mantra it has successfully uploaded 4,00,000 selfies in less than six months. It has used students in collecting selfies taken at its favorite local shop and submit photo of bill, on the app. After posting selfie they get the rewards point displayed on the app and can be redeemed through small network of retail business.
The Magicpin team states this will be next wave of offline retailing and can be bringing intelligent loyalty dynamics to small retailer hands. The plan is to eventually allow its retailer to understand customer better and enhance its margins through intelligence.
Loyalty programs come in large formats for offline retail. Seventy five percent of revenues of Shoppers Stop coming from its First citizen loyalty program and has over four million registered customers. However, smaller family businesses are dependent on the customers loyalty and are not dependent on any intelligence in converting sale to extra margins. Anshoo Sharma and Brij Bhushan felt that this was long tail where sum of parts could be larger than the whole chunk.
The offline retail market in India will reach $1 trillion by 2020. A study by advisory firm Ernst & Young says the present market will be close to $600 billion in size, organized retailing is less than 10 percent of market. Ninety percent of them are semi-organized and are waiting for organizing themselves to target audience better.
“We want to empower smaller businesses to understand their customers better,” says Anshoo, Co-founder and CEO of Magicpin. He added companies like Meituan/Dianping Groupon have added value by connecting the offline world. “While the answer for India will be different, there is a large opportunity that got us excited to go after it,” says Anshoo.