Business model of Firstcry ~ Business Plan, Revenue Model, SWOT Analysis

Introduction

FirstCry is an e-commerce company focused exclusively on baby & kids products.The Business model of Firstcry involves its business plan, revenue model, its competitors, SWOT Analysis and many more.

FirstCry initially operated on an inventory-based approach, with the company simply distributing items throughout the country from warehouses in Pune, Delhi, Bangalore, and Kolkata. After a few years, FirstCry began to add shops to its platform and offered local businesses the option to sell their items on its website. Firstcry.com offers a product assortment of over 90,000 goods from over 1200 foreign and Indian companies.

The company also has two private labels called BabyHug, which is into apparel for babies and kids, and CuteWalk, a footwear brand. FirstCry is now one of the largest online shopping platforms for kids and has over 350 franchised brick-and-mortar shops in more than 125 Indian cities.

Business Plan

Firstcry has bridged the demand and supply gap in baby care market, through shifting scurry brick and mortar stores to click and purchase model, which is conceptualized as an innovative business strategy. Firstcry.com works on a hybrid business model. So, apart from the online presence, Firstcry.com also has over 100 franchise stores across India. Firstcry runs a unique programme wherein the brand reaches over 70,000 unique parents each month by giving out a Firstcry Box.

Firstcry is using social media platforms as its face of promotion. FirstCry began to add shops to its platform and offered local businesses the option to sell their items on its website.

Revenue Model

The increase in sales mostly could be attributed to the onset of the pandemic. As the pandemic compelled the Indian government to impose lockdowns, more and more people moved to ecommerce to rely on their day to day purchases.

Competitors

There are several brands in the market which are competing for the same set of customers. Below are some of the competitors of FirstCry:

BabyOye
Hopscotch
Flipkart
Amazon
Local vendors
Kraftly
Snapdeal
BeiBei

SWOT Analysis

Strengths

Brand visibility with online and 180+ offline stores
First Cry offers a wide range of products, so parents can find everything they need for their children in one place. 2,00,000+ products from 2,000 + national and international brands
Alliance with brands like Pigeon, Farlin, Mattel, Pampers, Disney etc.
Four rounds of fund raising from investors like Saif Partners, Valiant Capital Partner, IDG Ventures India.
Asia’s No1 Baby care online portal, FirstCry’s website is one of the most visited websites in India in the baby and kids category. The company has been investing in SEO and online advertising to maintain its ranking. The team also focuses on improving the user experience on the website. This includes improving the website’s navigation, making sure the website loads quickly and making sure the website is mobile-friendly.
One price strategy for online and offline both customers
Kiosk box concepts which are gifted to new mothers in collaboration with hospitals. It increases customer footfall.
Firstcry Baby has a highly successful track record of both launching new products in the domestic market but also catering to the various market based on the insights from local consumers.
The domestic market in which Firstcry Baby is operating is both a source of strength and roadblock to the growth and innovation of the company.

Weaknesses

A niche market is very specific which is very risky and not fully developed in the nation
Extensive marketing strategies used by companies like Flipkart and Amazon
Market coverage of big e-tailors
Few suppliers
Patent and Copyrights Forgery: Firstcry Baby business model can be easily replicated even with the number of patents and copyrights the company possess. The intellectual property rights are very difficult to implement in the industry that Firstcry Baby operates in.
Firstcry Baby track record on environmental issues is not very encouraging.

Opportunities

Globalization: Expansion to other countries, expansion into international market can help Firstcry Baby to tap into international talent market. Globalization has led to opportunities in the international market. Firstcry Baby is in prime position to tap on those opportunities and grow the market share.
Can also opt for Horizontal Market Model
Emphasize on its own personal label trade Babyhug
Changing Technology Landscape: Machine learning and Artificial Intelligence boom is transforming the technology landscape that Firstcry Baby operates in.

Threats

Mahindra group has acquired BabyOye.com. Mom and Me have renamed as BabyOye.
Online rivals are gaining funds from foreign investors like Helion Ventures, Velos Partners: Online competitors like Hopscotch and BabyOye getting funding from investors like Helion Venture Partners, Velos Capital Partners etc.
Babyoye.com takes over Hoopos a rival.
Culture of sticky prices in the industry: Firstcry Baby operates in an industry where there is a culture of sticky prices.
Government Regulations and Bureaucracy: Firstcry Baby should keep a close eye on the fast changing government regulations under the growing pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects.
Increasing costs component for working in developed market because of environmental regulations: Firstcry Baby has to deal with these costs as governments are trying to levy higher environmental taxes to promote cleaner options.

Conclusion

FirstCry is a true testament to the fact that you can survive & thrive even in a highly competitive industry by carving out a niche for yourself. Firstcry has begun trying to apply the sophisticated approach that goes on from their websites to brick and mortar retailing to squeeze even more revenue out of their business.