Unless you are living under a rock there is hardly any soul who hasn't encountered any BuzzFeed-associated content. It rose to fame with its overall media ecosystem ranging from online articles, and to various pieces of investigative journalism, and comedy videos during the 2012 YouTube era when digital media was gaining widespread acceptance. However, BuzzFeed has been lagging recently, suffering massive losses across various verticals ranging from its content quality to various controversies the company has embroiled itself. In this article, we will give you a detailed insight into the phenomenal rise and dismal fall of BuzzFeed. Inception of BuzzFeed Johann Peretti, an MIT grad started "BuzzFeed" as a side project while working at "The Huffington Post." This was the time when audiences were recognizing digital media which was a shift from traditional media. Memes were insignificant in the entertainment space when BuzzFeed started. It was a kind of a subculture that was miles away from the mainstream internet and this was exactly what BuzzFeed decided to capitalize on. Johann started "BuzzFeed laboratories" which could be summarised as a web algorithm that scraped stories across the internet which had the potential to go viral. However as time passed BuzzFeed employed its content team and started producing web content that was satirical, humorous, and easy to read for the audience. This shift from a chatbot to a digital media production house was what marked the inception of BuzzFeed. In 2010, BuzzFeed founded its video division marking its advent into YouTube. What followed was a complete dominance of BuzzFeed over YouTube with various small divisions across the organization turning into small makeshift brands across YouTube. The video content ranged from various niches to stock market to cooking. BuzzFeed was truly dominating the scene. It also had many famous web series like Worth It, Unsolved Crime, As/It, etc. BuzzFeed's news division which was founded in 2012 ended up giving winning a Pulitzer Prize. People began to recognize 'BuzzFeed News' after it started reporting on various political scandals ranging from the government spending in Afghanistan to various other scandal exposes that brought the government to the dock. This was followed by a series of serious pieces of investigative journalism which bagged them a Pulitzer for their journalism piece on Uyghur Muslims in the Xinjiang region of China. BuzzFeed relies on various mechanisms to earn revenue. It has crafted itself a collaborative revenue ecosystem thus ensuring revenue from multiple streams with zero dependence on any particular stream of income. The major revenue sources of BuzzFeed are native advertisements and display advertisements. By selling valuable advertisement space across its website, BuzzFeed earns money through various methods ie. CPC, CPS, or a promotional fee levied at the start of any campaign. Apart from this native advertisements is another component wherein BuzzFeed collaborates with various brands and integrates their products seamlessly into the content and meanwhile promoting the product. For native advertisements, BuzzFeed has collaborated with the likes of KFC, Volkswagen, etc. Apart from this BuzzFeed earns revenue for various other verticals such as video advertisement, subscription models, affiliate marketing, and podcast marketing. Apart from these sources, there are other revenue streams that BuzzFeed uses to earn revenue. At the beginning of the Fall of BuzzFeed Although BuzzFeed had a perfect ecosystem with massive gains, the company still started losing ground with plagiarism complaints. Users began to notice a heavy amount of directly plagiarised content. The extent of plagiarised content on the site was so much that a lot of content was directly copy-pasted from Reddit or various other forums. BuzzFeed began to see various famous influencers and regular faces who were loved by the audience part ways from BuzzFeed and the majority of the time these partings were bitter. This further strained the relationship between BuzzFeed and its audience because the audience didn't accept the new faces. BuzzFeed saw various massive layoffs across various verticals although, they termed it as a structural restructuring to increase efficiency however the primary reason behind this was failed revenue targets which further led to bitter investors and failed funding rounds.Apart from content issues, BuzzFeed decided to go public on the stock market however this ambitious project didn't take off as planned. BuzzFeed decided to become the first digital media company to be publicly traded on NASDAQ with a $1.5 Billion valuation. To go public, it chose the "SPAC merger" route. This route allows new age companies to go public through the third party route with fewer legalities. However, the SPAC merger didn't bring in the right amount of capital due to investors withdrawing their capital at the last moment. The stock was heavily traded on the first day however it witnessed massive pitfall of 20% in the upcoming days and the stock value severely declined with no signs of revival. Many current and former employees sued Buzzfeed for its mismanaging of IPO, As employees weren't able to sell their ($BZFD) shares on market. With this move, They wanted to acquire Complex Network for $300 million which is famous for its Hot Ones series. Complex's website brings 7.2 Million views monthly views (as of July, 22) which covers topics related to streetwear, music, and food. Before going public, Buzzfeed bought HuffPost for $150 Million, which at the time was losing $20 Million every year but after a series of cost-cutting measures they are now expected to turn profitable by the year-end. If we compare all the companies under Buzzfeed in a 5-year chart, You can see that all the companies except Hot Ones are declining every year. Buzzfeed's own website only brings around $93 Million views per month, This becomes a major problem for shareholders of $BZFD as the company still struggles to find a stable audience. Their main YouTube channel (BuzzFeed Videos) only gets 30K-50K per video which shows poor audience engagement. If we compare it with Barstool Sports and Vox Media which are currently thriving in the media space, Both of the companies have a strong audience engagement. But this doesn't mean that in the future these companies will stay relevant. These companies are heavily dependent on the algorithms of search engines and social media sites. Although BuzzFeed is trying to project itself as profitable, logging massive growth, the core business of BuzzFeed is still unprofitable. Its growth trajectory has been seeing a downward turn over the past few years and it would be remarkable to see if BuzzFeed turns the tables and achieves massive revenues or dies a slow death.

Over the years the South Asian country of the Philippines has positioned itself as a Gold Mine of young talent skilled in the BPO industry. In this week's article, We will deep dive into the emerging tech sector of the Philippines. The BPO industry emerged in the Philippines in 1992 and it has been massively gaining momentum since its inception with the industry employing more than 2 Million Filipinos. The BPO sector is single-handedly responsible for contributing around $30 Billion to the economy of the Philippines. Globally speaking Philippines accounts for nearly 15% of the global BPO industry, just after India which contributes 28% and brings in $84 Billion to its economy. Advanced economies like America, Britain, and various European nations outsource most of their tasks to various Asian or developing countries. In the beginning, companies used to outsource various clerical as well as repetitive work to other countries. However over the years as outsourcing became generalized these organizations started outsourcing various other aspects of the business. Present-day companies operating in advanced economies outsource a majority of their teams from other countries. Outsourcing naturally turns out to be lucrative for organizations because it helps them tap into exceptional talent at a much cheaper rate. Outsourcing helps in cost-cutting and helps organizations scale their business by hiring a large number of employees at a much cheaper cost. The introduction of BPO in various countries has also led to a rise of freelancers offering their services to various individuals as well as organizations while competing on a global basis. The BPO industry is majorly responsible for the rise of the gig economy. BPO Services in the Philippines The USA typically outsourced the majority of its back-office work to the Philippines. The majority of the outsourced work was concerned with the call center. Call centers have become a significant source of employment for Filipinos since their inception in 1992. Apart from call center and customer support, various other back-office operations related to IT, HR, and Finance have been outsourced to the Philippines. However, In recent times with technological advancements and a decentralized economy, various other services have been outsourced to the Philippines: Transcription & Writing Services Software Development Animation & VFX Service Game Development Data Mining These operations are generally labor-intensive and require skilled labor. However due to the internet as well as acceptance of remote work by various organizations these services are outsourced to the Philippines. Why is the Philippines excelling in BPOs The Philippines has shaped itself as an outsourcing hub in recent decades. It provides nearly 85% of its services to the USA. The other 15% is offered to counties like UK or Australia. There are various factors that are responsible for the Philippines turning into a favorable outsourcing destination. The primary factor is a high pool of youngsters nearly 30 Million. According to demographic analysis, the average age in the Philippines is 24.5 years. This clearly points out the fact that the Philippines has a massive working-age population. The inclusion of English in the Philippines education curriculum resulted in the Philippines turning out to be the 4th largest country with a majority of English speakers. Additionally, the tone, as well as the ascent of Filipinos, are very easy to comprehend which makes them a perfect fit for outsourcing work. The government of the Philippines plays a major role in the phenomenal because the government introduced various policies which helped in creating a conducive business environment for BPOs in the Philippines. Additionally, the education system of the Philippines which is ranked among the world's best has been responsible for providing a skilled talent pool to various organizations. Exponential Growth of BPOs in Covid-19 COVID-19 has been a great beneficiary to the BPO industry around the world. BPO Hiring went up to 38% in the Philipines. Since the majority of the workplaces were closed around the world, BPOs immediately adapted to the work-from-home environment and started functioning on a remote work basis. Apart from that, various overseas organizations had to shift to remote work, resulting in increased employment opportunities for gig workers and employees working in the BPO sector. Although Covid-19 wreaked massive havoc amid various employment sectors the BPO industry in the Philippines seemed to be functioning quite efficiently in spite of such a bleak market. Future of BPOs in the Philippines The pandemic has brought various drastic changes in the way organizations are functioning. The nature of work is turning out to be more demanding and employees need to boost up their skills in order to succeed. Employers are focusing not only on the technical aspect but various other aspects like soft skills before hiring an employee. In case you are working as a freelancer the competition increases massively. Freelancers are required to ramp up their skills and compete on a global level in order to succeed. The inclusion of automation and artificial intelligence is turning out to be good news as well as bad news for Filipino employees. Although artificial intelligence is automating repetitive work, the inclusion of artificial intelligence is opening up new avenues across IT as well as various technology-related sectors.

Waste Management ($WM) is a waste and environmental services company that operates in 20 countries. It mainly deals with garbage management from collection to recycling. Their clients consist of major businesses, residential areas, etc, and usually have contracts with cities to bring it to transfer stations where the waste is compacted, ultimately ending up in landfills they own and operate. This brings $18 Billion in revenue in 2021. Rise of WM Inc. The 1950s is when the waste industry started expanding because there was more garbage being produced. This was right after WW2, there was a baby boom, and the population was expanding at an incredible rate. In 1956, there was a small garbage collection company called Ace Scavenger. At the time they were only operating 12 garbage trucks around the Chicago area, But they noticed the new potential in the industry and invested heavily in expanding this business - bought new trucks, made deals for garbage collection in new areas, acquired some of their smaller competitors. In 1965, The government responded to this nationwide increase in trash production by implementing stricter laws and stricter rules. Most small businesses shut down. Ace Scavenger had spent the last decade expanding so they made it, and a couple of years later they merged with another similar company and the resulting company was called Waste Management. In 1971, They went public and started acquiring competing companies with the capital they raised. They landed some contracts from other countries. They also started getting involved in the disposal of chemical and toxic waste on which the government was making new regulations. In the 1980s they were involved in a line of scandals that involved dumping hazardous waste in illegal places, resulting in millions of dollars in fines, a sharp decline in their stock price, and a lot of negative publicity. In the early 90s, after years of mostly non-stop growth and success, They finally started experiencing some major financial troubles. There are multiple factors responsible for this, the primary being a weaker economy, resulting in people spending less and generating less waste. In 1993 the revenue fell for the first time ever and profits were down. When earnings come in below expectations, it negatively impacts stock price and the company’s overall public image. And hence, from the years 1992-97, WM Inc. fraudulently made it appear that they were doing better than they really were. Dean Buntrock is responsible for most of this, as he's the one who set earnings targets, maintained a culture of fraudulent accounting, personally directed specific accounting changes to be made to make targeted earnings, and was the spokesperson who announced these earnings to the public. Accounting Scams In 2002, The Securities and Exchange Commission (SEC) filed suit against the founder and five other former top officers of WM Inc. charging them with perpetrating a massive financial fraud lasting more than 5 years. The complaint, filed in the U.S. district court in Chicago charged that the defendants engaged in a systematic scheme to falsify and misrepresent Waste Management's financial results between 1992-97. The company officials cooked the books and enriched themselves for years and duped unsuspecting shareholders. As the SEC put it, they avoided depreciation expenses on their garbage trucks by assigning unsupported and inflated salvage values and extending their useful lives. This effectively adds money to their earnings that shouldn't be there. They also assigned arbitrary salvage values to other assets that previously held no salvage value. They failed to record expenses for decreases in the value of landfills and refused to record expenses necessary to write off the cost of unsuccessful and abandoned landfill development projects. Hence, by making such adjustments, they fraudulently increased their earnings. They scammed investors, who decide which stock to buy based on such information. In 1996 documents stated that Waste Management made $192 Million that year when in reality they lost $39 Million. These numbers were even verified by an independent auditing firm, Arthur Andersen (A&A). Despite finding irregularities, They signed off on the records, as they felt a conflict of interest since they would make more money keeping Waste Management as a client. The SEC estimates that Dean Buntrock (CEO of WM Inc.) gained more than $17 Million through performance-based bonuses, retirement benefits, charitable giving, and selling company stock while the fraud was happening. For example, he received a tax benefit by donating inflated company stock to his former college to fund a building in his name. Arthur Andersen paid a $7 Million penalty, which was the largest ever against an accounting firm. In addition to this, Waste Management agreed to pay $220 Million to settle shareholder lawsuits. Waste management's management team decided to pay over $30 Million to the SEC, Most of which came from Buntrock. Today, Waste Management is back on its feet and doing better than ever. WM is now the largest player in the garbage recycling space with a market capitalization of $64 Billion. Major shareholders of WM include Bill Gates, Vanguard, and BlackRock.

Juul was designed to help adult smokers quit, but instead resulted in an entire generation getting addicted. Today, Juul has lost much of its market share and faces multiple lawsuits. When first launched, Juul became so popular that it became a verb of its own, becoming representative of all e-cigarettes and vaping under the term 'Juuling'. At its peak, the company dominated over 70% of the e-cigarette market share. The company claims that it was never their intention to hook an entire generation on vaping and nicotine. However, intentions aside, the matter of fact remains that the younger age group did get addicted. However, in just 3 years the value of the company fell from $38 billion to under $5 billion. The company is also awaiting FDA authorization while facing multiple multimillion-dollar lawsuits for its contribution to fueling the youth vaping epidemic. The company launched in 2015, out of Pax Labs, an American electronic vaporizer company founded in 2007 that markets the Pax vaporizers. It revolutionized the tobacco industry with Juul’s cutting-edge design. It generated the perfect storm – a high-tech product released at the right time, convenient to use and carry around, and looked like a sleek flash drive. Its design further enabled the youth to hide and use it right under their parent’s nose. Co-founders Adam Bowen and James Monsees had wanted to create a satisfying alternative to cigarettes for adult smokers who wanted to quit, but whether knowingly or unknowingly, their marketing catered to all the needs of the youth. While they have denied targeting this consumer base, their advertisements painted the picture of the coolness and convenience of the Juul for the youth. They provided fun flavors as well – having pods in different flavors such as mango, cucumber, mint, crème brulee, and fruit medley. Under marketing, they also organized events and hired social media influencers to do paid promotions posting themselves juuling. These are all tactics that would greatly bring the youth into their fold. Soon users started posting their own content of themselves juuling on social media platforms such as Instagram and Snapchat. The company’s popularity skyrocketed. In 2016, the company made up less than 5% of the e-cigarette market. By the end of 2017, this had grown to nearly 30% and generated 224 million dollars in revenue. The number of devices sold jumped from 2.2 million to 16.2 million within a year. This came at a time when the percentage of youths in the US smoking cigarettes was at an all-time low of 10.8%. A common sentiment among experts states that kids were not informed enough, and were tricked into getting addicted to Juuls, that they did not realize that the nicotine in vapes was also incredibly addictive. Their early packaging failed to highlight that juul pods contained high amounts of nicotine, an extremely addictive substance. There was no warning label on the box. They market as 5% and 3% pods, but nobody knew what the base value was. 5% of what? One 5% juul pod has as much nicotine as a standard pack of cigarettes. The formulation and design of the product meant that it could be conveniently used nearly all the time, while also liking it better because of the flavors. This in many ways made it more potent and worse than smoking, as you would finish a pod faster than you would a pack of cigarettes, and then proceed to buy another one. Nicotine consumption hence increases. By 2017, an estimated 1.73 million high schoolers were vaping as opposed to the 1.12 who were smoking. With its massive success, Juul parted ways with Pax Labs. For years, Juuls and other e-cigarettes were marketed and sold without the intervention of the FDA. But following the visibly accelerating and observable nicotine and Juul addiction among the youth, it became impossible to ignore. In 2018, medical and public health groups like the American Academy of Paediatrics sued the FDA over its lack of action against e-cigarettes. A federal judge later ruled that the agency did act illegally by allowing those products to remain on the market unchecked until 2022. The number of high schoolers vaping rose to over 3 million. As concern around teen use grew, in 2018 San Francisco passed a ban on flavored tobacco products. Juul’s market shares massive increased within a year. And while the company had always branded itself as an attempt away from cigarettes, at the end of 2018, Altria, one of the world’s largest tobacco brands invested 12.8 billion dollars in Juul, acquiring a 35% sake. The glass ceiling shattered. This is the move that brought the company’s valuation to 38 billion dollars. The vaping giant was at an all-time high and seemed untouchable until the FDA declared youth vaping an epidemic. While a lot of parents and citizens blame the company Juul, they as a business were simply taking advantage of an unregulated industry and market structure that was put in place by agencies such as the FDA. In September 2021, the agency launched one of its largest coordinated enforcement efforts to crack down on over 1300 retailers and 5 major manufacturers for illegally selling e-cigarettes to minors. Then, they seized over a thousand pages worth of documents related to Juul’s sales and manufacturing practices. Juul got rid of every flavour except tobacco, mint and menthol and promised to enhance its online age verification system. It also phased out all social media accounts that had been accused of targeting teens for years. In 2019, an investigation was opened as to whether Juul had actively marketed its product to American children. This is when the company began its downfall. It was revealed that Juul representatives had called the product completely safe and had neglected to mention that along with the product they would be selling a lifestyle of nicotine addiction. Research also shows the negative impacts on children, as they have developing neurological systems. In September 2019 CEO Kevin Burns resigned and all advertising in the US was suspended. School districts across the country started to sue Juul. The Trump Administration announced a federal ban on almost all flavored pods and raised the legal age of tobacco to 21. These strategies seemed to pay off as teen vaping rates dropped from 2019 to 2020. The following year Juul’s legal battles came back. They settled with the state of North Carolina for 40 million dollars and the state of Arizona for 14 million dollars. Recently, FDA ordered Juul to stop its US operation permanently and The move by the F.D.A. is part of a wide-ranging effort to remake the rules for smoking and vaping products and to reduce illnesses and deaths caused by inhalable products containing highly addictive nicotine.

In 2021, Michael Burry tweeted about his prediction for the 2022 Stock Market Crash. Here are the now deleted tweets which are explained in simple terms for newbie investors. Michael Burry, who inspired ‘The Big Short, predicted the 2008 Global Financial Crisis caused by the housing crisis, predicting that US mortgage-backed securities were no longer stable investments due to greed and corruption. He ended up making a personal profit of $100,000,000 and made his investors over $700 million from this bet. He now warns us of a 2022 stock market crash. In February 2021, Michael warned us of high inflation as a consequence of the Fed’s unprecedented money printing. He called out the US government and Federal Reserve over the trillions of dollars worth of stimulus they had provided in the pandemic. When he first stated this, he was the contrarian, as at that stage inflation rates remained low despite the printed money. The inflation rate was 1.7%, below the Federal Reserve's margin. But, in a fashion similar to the housing crisis, Barry was simply early with his predictions. In 2022, the inflation rate has risen to 8.6%. Over the past few months, Burry has also been tweeting about an impending economic crisis and market downturn, that is bound to worsen. The Scion Asset Management manager believes that the S&P 500 rebounded too quickly and disproportionately from the COVID-19 crash in 2020. This belief runs to the extent that he states the S&P index could plummet by as much as 54% in the coming years. He observed the following historical trend in the S&P index – In the 2009 crisis, the SP500’s bottom was 13% lower than the 2002 bottom In 2002, the SP500’s bottom was 17% lower than the 1998 LTCM crisis low In 1975, SP500 was 10% lower than the range in the 1970s Essentially, he is implying that the bottom of a current market crash is lower than the one preceding it by about 10 to 15%. Hence, following this trend, he predicted a drop by 15% of the COVID low in the S&P index. This brings the S&P to 1862 points. Burry is predicting a peak to trough fall of a total of 61.4%, bringing the market back down to the historically normal Shiller PE of roughly 16. The Shiller P/E ratio is a valuation metric that measures a stock's price relative to the company's earnings per share. Here, Barry alludes that even during market downturns, strong short-term recoveries have often been observed, despite the long-term downward market trend. A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend. In technical analysis, a dead cat bounce is considered to be a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. Hence, he once again insinuates that we are in the early stages of an impending crisis. Taking the examples of Microsoft, Amazon, and JP Morgan shares, he also mentions that current trading volumes are low as compared to earlier times. This insinuates that over the next few years, as selling increases, it would lead to much larger declines in the stock market. Further, Barry tweeted the following chart, showcasing concerning similarities between the 10 years leading up to different financial crises. The green shows the market in the years leading up to the Great Depression. The yellow shows the S&P 500 leading up to the Dot Com bubble 2000 crash. The white shows the S&P500 run-up to today. The model is uncannily similar. He points out the consistency of human nature, for human spending and buying patterns to periodically lead up to the same bleak situation. This approach discusses the stock market. However, the core reasoning behind Barry’s view is the economy. The rise in inflation has resulted in the Fed increasing interest rates to make borrowing harder for businesses. However, this interest rate rise will also affect the consumer, the fundamental building block of the economy. In such an economy, consumers have less income to spend, as money goes towards servicing their debts. This starts a vicious cycle, as less discretionary spending results in less sales for the companies that have been invested in. Barry comments upon the current state of consumers: This perpetuates a cycle of less consumer spending, less savings, and higher credit card debt, which will further result in less discretionary spending (to pay off the credit card debt), and so on. The less consumer spending will also result in decreased sales for businesses, resulting in layoffs and unemployment, which full further leaves the consumer will less money and force him to dip into savings and debt. We observe the negative impacts on businesses with the example of Amazon, which had the slowest growth rate of 7% since the dot com bubble burst. This is abysmally low compared to the 44% expansion rate in the year-ago period and is the second consecutive quarter of single-digit growth. And there goes Barry’s tweet – Hence, we conclude that inflation, interest rate hikes, reduction in consumer savings, and less discretionary spending result in lower business profitability and an overall downward market trend.

After a rocky decade, the pandemic provided the final hit, forcing Revlon to file for bankruptcy. India behemoth Reliance is rumored to be considering a buyout of Revlon. Revlon helped usher in the era of color cosmetics in the first half of the 20th century. It was founded in 1932 by the Revson brothers, Charles and Joseph Revson, along with chemist Charles Lachman. It started with nail polishes but quickly explained to include lipsticks. Cosmetic sales in the US surged between 1941-46, and Revlon positioned itself to take advantage of this boom with the tagline ‘seen on the fingertips and lips of the nation’s smartest women. The cornerstone of its rise was mass production and mass marketing, establishing itself as a ubiquitous cutting-edge brand. It spent heavily on advertising, sponsored popular television programs, and landed exclusive deals with beauty shop suppliers. In the 1960s and 1970s, Revlon further expanded, entering pharmaceuticals and apparel. Rise & Fall of Revlon In 1975 Charles Revson died and European businessman Michel Bergerac became the CEO. A year after this, Revlon sales reached nearly $1 billion. However, it remained second, lagging behind Avon products that offered door-to-door distribution. Revlon kept pace with changing trends, and the conglomerate began to market its product to career-driven women as more women entered the workforce. But by the early 1980s, sales began to flatten, and business Ron Perelman initiated a hostile takeover of Revlon in 1985. Perelman won the fight against Bergerac for control of the company and became the controlling shareholder and chairman of Revlon’s board. Perelman enlisted famous fashion photographer Richard Avedon and launched an unforgettable ad campaign, hiring famous models such as Cindy Crawford to be the face of Revlon. Hence, the brand’s public image appeared to be faring better. However, its finances were in a mess. Perlman had used junk bonds to finance the takeover. Junk bonds are risky investments, although they offer higher yields and rates of return, they also have a higher chance of default. He was unable to pay this debt. It has been assumed that he would sell Revlon’s non-beauty businesses to pay off this debt but instead, he attempted a failed maneuver to bid for Gillette. This happened in a highly competitive atmosphere, as Proctor and Gamble bought several makeup brands and acquired a third of the cosmetic market share in 1990, compared to Revlon’s meager 20%. Revlon was also stretched thin as it had diversified too much, carrying 9 makeup lines with nearly 3000 individual products. Women also began to move towards less and less makeup, as fashion trends changed and bright colors went out of style, marking a shift towards more natural neutral looks. As Revlon tried to adapt to this change and went public to raise money in 1996, most of its pre-tax profits went to pay off its $1.3 billion debt. By 2003, Revlon had experienced 16 consecutive quarters of losses, and by 2007 its market share had fallen to 11%. Perelman kept bailing the company out with injections of cash and a changing stream of CEOs, trying to keep the company afloat. It tried to recapture market share via acquisitions, but by 2017 its market share had further fallen to around 6%. The competition also increased, beyond P&G and Loreal, as startups by celebrities (such as Kylie Cosmetics) became commonplace. In 2020, as the pandemic halted life, sales further fell, and the widespread use of masks rendered lipstick obsolete. This came at a time when $343 million bond payment was due, and Revlon had to refinance its debt to avoid bankruptcy. Revlon Bankruptcy Revlon voluntarily filed for chapter 11 bankruptcy in June 2022. Chapter 11 bankruptcy allows a company to stay in business and restructure its obligations, it involves a reorganization of a debtor’s business affairs, debts, and assets. Since then, its stock has skyrocketed 456% from its low reached on June 16. Shares were up as much as 80% on 21st June trades alone. Retail investors have ramped up their purchasing into Revlon, likely a result of them attempting to 'buy the dip' on the back of the bankruptcy announcements. The real question is if Revlon's equity holders will be left with anything after the bankruptcy proceedings, or if they'll be completely wiped out as the company prioritizes paying back debt holders, as usually happens in bankruptcy. Revlon has secured approval from a bankruptcy court to borrow $375m to address supply chain issues. Revlon CEO Debra Perelman believes that consumer demand for Revlon products remains strong, and the issue remains the challenging capital structure. Reliance interest in Revlon Days after Revlon filed for bankruptcy, India’s Reliance is said to be considering a buy-out of the company. Rumors say that the Indian conglomerate is keen to diversify away from its mainstream oil business and expand its beauty and personal care portfolio. Reliance is on an acquisition trail to become the next FMCG Multinational, as it has been linked to several deals this year, including WBA’s Boots. It has already established itself in the telecom and retail sectors in India.

DocuSign, a company providing the service of eSignatures, experienced a boom in 2020 during the pandemic. This was followed by its stock price falling in half, and concerns over the future of the company and the ramifications for investors. The pandemic transformed life and society by changing the medium of work and communication. The emphasis on virtual technologies that can be accessed remotely is well visible with the success of corporations providing such services – such as Zoom Video Communications and Peloton Interactive. As the demand for such services exploded, the value of their stock increased, with the companies getting greater investments, expanding market share, and generating larger profits. The story of DocuSign is similar. DocuSign, Inc. is an American company headquartered in San Francisco, California, that allows organizations to manage electronic agreements. It provides the service of eSignatures, allowing users to electronically sign documents on different devices. Business Model of DocuSign DocuSign produces a software solution that allows people to sign business and legal documents from a smartphone or computer. This was particularly useful for large enterprises that had to sign documents daily. For example, banks and insurance companies posit signatures on a daily basis. A policyholder needs to sign documents for insurance claims to come through. Particularly in the pandemic, with the immense loss of life, a unique situation was created where insurance claims ran high, but the situation made it difficult for physical meetings with such companies. In such a background, DocuSign saved the day, also helping companies cut down on expenses by eliminating travel costs. One of DocuSign’s USPs is its robust verification feature. This differentiates it from competitors. They use picture verification of government-issued IDs to check the identity and prevent fraudulent signatures. DocuSign went public in 2018 valued at a little under 5 billion dollars. Its IPO was well received as everyone was fascinated with the new innovative software it provided and its utility of it. Their revenue grew rapidly, at a 37% CAGR even in pre-covid times. Even though the company reported operating losses in every quarter, investors overlooked it due to the impressive growth rate. Rise of Docusign in Covid While COVID negatively impacted most businesses and livelihoods as life came to a standstill, DocuSign experienced a boom. As employees were forced to work from home, the online signature platform they provided shifted from a convenience to a necessity. They grew at an annualized rate of 50% between the first and third quarters of 2021. The reported operating losses almost broke even during this time period. Its stock was valued at $310 at its peak, giving it a market capitalization of $60 billion. This market cap surpasses that of household names such as Twitter and Chipotle. Fall of DocuSign stock On 2nd December 2021, when DocuSign released the results of their third quarter, their stock price had almost fallen in half, bringing their market cap down nearly 30 billion dollars as well. Even though they beat analysts’ expectations by generating $545 million in revenue, representing a 42% growth in year over year (comparing the same time period in successive years) for quarter 3, this growth rate was never sustainable in the first place. The market for electronic signatures is small, and with DocuSign’s core focus on that niche, a market cap of $60 billion was absurd in the first place. It can be explained by investor behaviour during the pandemic. In the pandemic investors highly invested in any company that was benefitting from the situation, resulting in such companies becoming overvalued. As the situation changed and life returned to normal, the high growth rates would obviously fall, as an overvalued company tends to return to its mean, negatively impacting stock price. Total revenue growth slowed from 58% y/y in the period last year and is also just 1% higher compared to the prior Q4. Non-GAAP operating margin of 17% declined from 20% in Q1 fiscal 2022. This is partly due to ongoing investments to support new initiatives, including through a larger employee headcount. Free cash flow actually improved this quarter to $175 million, up 42% y/y based on the top-line momentum and higher billings. For the full fiscal year 2023, a revenue target right around $2.475 billion, if confirmed, will be 17% above the result in fiscal 2022. The current guidance suggests a flat gross and operating margin compared to the latest Q1. DocuSign ended the quarter with $1.1 billion in cash, equivalents, and investments which cover the $750 million in long-term debt. Is the stock still worth it? As a stock that was likely highly overvalued during covid times, it was expected for the price of the stock to fall. However, this does not mean that the company is doomed. A big theme for DocuSign is the move beyond just e-signatures to an entire "agreement cloud" ecosystem. Contract Lifecycle Management (CLM) is seen as the long-term growth driver referring to all such processes. Both before and after the initial signing, there are amendments and renewals, and other procedures and CLM takes care of this while also providing a system to track records. CLM allows customers to generate agreements and facilitates negotiation as a complete document management platform. Although it faltered, the company still has scope for executing on its “land and expand” strategy, in which it attracts clients and then consistently sells more and more services. Others discuss that the company might be acquired by a bigger tech company such as Google, Apple, or Adobe because of the kind of software services it provides. Overall, the market is bullish on its CML potential.

Trader Joe's is unlike any other major grocery store chain. In this article, we will attempt to identify the unconventional reasons behind their success. When scrolling social media, some might be surprised to find fan pages for grocery stores. The typical Instagram influencers share beautiful vacation photos and endless selfies, not pasta sauce, and frozen food. But apparently, there is a market for it; customers and creators alike are flocking to social media to share their unique Trader Joe’s grocery finds. With accounts like Trader Joe’s List topping 1.5 million followers. On YouTube, you will find many videos on ‘Everything New at Trader Joe’s’ lists appearing monthly, and new favorites lists being published on national news sources, the brand has seemingly attracted a cult following. In a sense, the chain has become more than a grocery store; it offers shoppers unique products that become part of customers’ lifestyles. It has almost a cult following classic thanks to its distinct features, despite not spending on advertising or utilizing social media and other technological advancements. Here's why Trader Joe's became people's favorite grocery store? Theme of the Store Unique and Fresh Products Good Store Management Low-Cost Items Before we move into the discussion, Let's go back a little to when it all began... History The first Trader Joe’s store was opened in 1967 in Pasadena, California, by Joe Coulombe, who graduated from Stanford with an MBA. He started off working at Rexall, a popular pharmacy company store that launched five convenient stores (named Pronto) to take advantage of a growing market. However, the project didn’t do well and was shut down. Coulombe bought the project from them and operated it on his own. Pronto expanded, growing to 18 stores. When 7-Eleven came to California, Joe rebranded, as he did not want to directly compete with the larger, well-established company. Initially, he renamed the store Trader Vic’s, and it grew in popularity because of its employees that wore Hawaiian grass skirts and for giving customers unique foods that regular supermarkets didn’t carry. Till 1976, the government had laws in place to regulate the price of liquor. This meant that liquor was sold at exceptionally high prices with a larger profit margin. This meant that stores like Trader Joe’s, which sold an assortment of scotch and wine, could afford to sell other products cheaply, as the profits would be made up by their liquor sales. However, this regulatory apparatus was removed, meaning stores could now lower the prices of liquor. This made things difficult for smaller stores like Trader Joe’s, as bigger supermarkets could afford to bring down prices to a level that smaller stores could not match, taking away profits and customers. To deal with this problem, in 1979, Coulombe sold the company to a much larger retailer Aldi Nord, owned by Theo Albrecht. Joe stayed on as the chief executive until he retired. In 1989, when he was replaced, the new management kicked up store expansion using the resources of the wealthy Albrecht family, making it the neighborhood Trader Joe’s with over 500 stores that we know today. The Albrecht family owns the company to this date. Why is it so popular? Trader Joe’s is different from other grocery stores such as Walmart in its design and products. For starters, it holds no sales, offers no coupons, doesn’t have a loyalty program, doesn’t offer self-checkout, no online ordering, almost no advertising, and doesn’t collect customer data. Here are a few reasons behind its popularity. Caribbean Theme Store When opening that first location Joe Column was inspired by the Jungle Cruise ride at Disneyland, a Caribbean vacation that he had just taken, and a book he was reading called White Shadows in the South Seas. Following the theme, Managers wear bright, casual Hawaiian shirts, sometimes with leis, and are titled, Captains. Assistant managers are designated first mates, and regular employees are called crew. It has a tropical and nautical theme, and unlike other grocery stores, does not display rows and rows of similar-looking branded items. The employees at Trader Joe's try to get kids involved in grocery shopping by secretly hiding a stuffed animal in each store and you can win a sweet treat if you find it. You can also find a hidden lobster around the store. The store gives a friendly neighborhood feel and hires local artists to hand-draw its signs and reflect the local culture. The lack of self-checkout, online ordering, and data collection makes customers reminiscent of older times with friendly and knowledgeable staff. Checkout stations have no conveyer belts or TV Screens, and employees use a literal bell instead of a PA system to communicate. Unique and Fresh Products Despite a lot of products carrying the Trader Joe label, these are not Trader Joe’s manufactured products. Trader Joe’s strikes a deal with an existing brands such as Pepsi Co, Krafts, Nestle, etc. to puts its label on high-quality, well-liked, and pre-tested foods. But not all its products are manufactured by large corporations, some of its products are sourced from local farmers or imported from foreign countries. Trader Joe's frozen pizza is famously sourced from Italy, where the company buys pizza from a local family-owned bakery. In return, the manufacturer gets a new and regular source of income from Trader Joe’s, which will buy in large quantities and pay on delivery, rather than being charged slotting fees. These manufacturers have to sign air-tight NDAs in order to sell there products to Trader Joe's. You can only know about these manufacturer when there is a food recall or a lawsuit. Good Management Trader Joe’s staff are especially crucial to the brand name and customer experience, as they hire not based on skill but on personality, recruiting smart, energetic, and conversationalist extroverts. They prioritize the customer, offering immediate assistance when asked, and helping with activities such as dropping groceries in the car. Staff is specifically told to stock products throughout the day, as this initiates close contact with customers. You'll see many positive feedbacks from former employees of Trader Joe's. The above posts can be found in many online forums and comment sections. Trader Joe's also ranks as the best grocery chain to work. Wages are also better compared to Walmart and Target. Low-Cost Items Privately labeled products are cheaper than similar products sold in other grocery stores. Buying a reduced variety in bulk that is marketed and sold as cheap and unique, is one of their cost-cutting strategies. Advertising using their flyer by using non-copyrighted images is another cost-cutting tactic. These are measures that enable their small stores to keep prices low. Trader Joe’s products have also often found to be almost identical to branded products, despite being sold at a much cheaper price. This makes Trader Joe’s well-known for its cheap, reliable, and unique products, due to its smart selection and positioning of products. Less is More? The downside to this method is that Trader Joe’s has a much smaller inventory (around 4,000) compared to other grocery stores, such as Whole Foods Market (around 40,000). The meticulous management of inventory means that products and arrangements come and go, and customers might often find their favorite items discontinued or out of stock. As Trader Joe’s purchases directly from manufacturers, trucks deliver new stock to their small back rooms, making it difficult to predict demand daily. People have made pages to inform shoppers which Trader Joe's products are discontinued and where can they get sometimes the same or similar products. The fact that their favorite product in the store can be discounted anytime gets a lot of hate. But this also pushes the shopper to buy their favorite product in bulk. For more: Why you spend so much money at Trader Joe's. Trader Joe’s policy of ‘Less is More’ has served them well to this point, resulting in a slow but steady growth rate, and a loyal consumer base. It has grown a lot since its modest beginnings as a single store in Pasadena, California. Their unique marketing strategy, cost-cutting operational efficiency, and strategically designed shopping experience for customers all make it the successful store it is today. Its establishment as a cult brand makes its future growth prospects safe for the foreseeable future. Even today, Trade Joe’s is expanding and establishing more stores across America.

Swedish furniture company, IKEA makes a shift from its traditional linear fast furniture model to a circular business of renting out furniture. Can Ikea become 'Netflix of Furniture'? Ikea is the biggest furniture company in the world. Founded in Sweden in 1943, today the IKEA Group sells ready-to-assemble furniture, kitchenware, and home accessories in over 400 stores worldwide. In 2019, Ikea explored an interesting venture. They tested out a furniture rental model in 30 countries. With concerns about sustainability ever-rising, this move is an attempt at a circular and environment-friendly business model. How does it work? Currently, in the rental model, you initially commit to renting the product for an entire year. After this first year, the monthly price of renting reduces, and the contract can be extended monthly. After returning the product, IKEA will refurbish and rent it out again, or sell it second hand. To derive the most from a product (by renting it out multiple times or selling it second-hand) IKEA is incentivized to design sturdy products that last long. This is the opposite of IKEA’s traditional fast furniture policy, in which they sold cheap products of relatively lower quality, which the customer would have to purchase again upon break-down. The value chain switches from linear (in which you acquire raw materials, make the product, and sell it) to circular (you receive the product back). This will also add to the economy as it creates jobs – for the transportation, delivery, repair, recycling, and resale of rentals. One of the main factors determining the success of this model will be the cost of renting furniture. Will the price be affordable, or would it be cost advantageous to buy furniture? Hence, the price and the time you expect to rent furniture for would be crucial to making this decision. Another factor is the type of consumer. For example, a customer might be willing to go for rentals even if the cost of ownership is less if they relocate a lot and dislike the hassle of disassembling and transporting their possessions (hence valuing the convenience of rentals). However, the proportion of such consumers is small in the market, and this model will likely not appeal to most customers except for a certain niche (such as college students or individuals with occupations that require a lot of traveling). Rise of Subscriptions The youth increasingly tend to rent – be it homes or transportation, paying monthly subscriptions for platforms such as Spotify and Apple Music, OTTs, phone bills, and other rental expenses. This move appears to exploit that tendency while also appealing to its more environmentally consumer base. However, it does tend to be cheaper to buy furniture, and another monthly bill would not attract an Average Joe. The rental model will find most of its users in businesses. It is a common practice to rent furniture for offices. As offices possess a lot of furniture for their employees – office desks, chairs, etc., it is convenient to rent these out. It eliminates the difficulty of disposing of many products when they lose functionality and makes it easier and more convenient to regularly upgrade to fresher models to build a good work environment. It also frees up capital for other investments, as it avoids spending a large sum of money on buying furniture in one go. Move towards Sustainability Ikea released its first-ever Climate Report for FY21 and aims to reduce the climate footprint and move towards using renewable energy by 2030. The rental system releases owners from the task of owning and maintaining furniture, the struggles associated with relocation, and throwing away items that lose their utility. It appeals to flexible and mobile customers and those who prefer access to ownership. It could also appeal to those who wish to stay up to date with the latest trends, as they can simply stop renting and switch out for the newer trend, removing the personal responsibility of ownership and disposal, and easily freeing up space. This is a switch to products as a service model – instead of the customer buying and possessing responsibility for the product, the provider of this service becomes responsible. Investing in Rental Startups Ikea recently invested in Nornorm, It allows users to rent furniture for their offices on a subscription basis in an effort to cut waste and encourage circularity in workspace design. Nornorm puts together personalized office designs for its customers, installs the furniture, and provides an app to manage preferences such as desk height. Currently, BCG is working together with them to furnish its offices. This deal may be worth up to $100K per month in revenue. But you may wonder, What if someone cancels their furniture subscription? So, If a client cancels their subscription, Nornorm disassembles and collects the furniture, which it then repairs and uses in other spaces. Normally, Companies don't change their furniture often so it can be a steady flow of income for Ikea and Nornorm. Nornorm recently struck a deal with the visual collaboration platform, Miro. It will furnish Miro’s headquarters in Amsterdam, offices in Berlin, and workspace in Austin, Texas. This deal symbolizes the entry of IKEA’s rental model into US markets. Where is it available? IKEA introduced this rental model in a limited capacity in six countries in 2021 – Finland, Sweden, Denmark, Norway, Spain, and Poland. It plans to expand and test out this rental in 30 countries. IKEA is offering students in Netherlands the offer to rent a bed, desk, table, and chairs for a monthly fee of up to 30 euros ($33.68). Owning vs Renting Furniture Let us assume that you want to rent a couch, 2 chairs, a table, and a coffee table. This whole set will cost you €817.08 ($864.75) for the whole year, after 1 year of renting the furniture subscription prices will go down by half so next year it will cost you €408.54, and so on. But if you just buy the whole set then it will only cost you €697.97, So currently renting furniture is not worth it, and Ikea knows it that's why it is only focusing on B2B. But many other companies are attempting to make renting furniture possible in future.

Owning a car is one of the top priorities that is immediately equated to a wealthy standard of living in most Indian households and it is not a surprise that the country holds the space for being the 5th largest market in the world for automobiles. There is no inadequacy of cars on Indian streets, directly contributing to air pollution and immense traffic. Incentives to make more cars for residents also was increased by the NDA-II government’s Make In India campaign initiated in 2014 aimed to convert India into one of the biggest global manufacturing hubs. Regardless of these stimulants, many major companies - Ford, Harley Davidson, General Motors, Datsun (Nissan sub-brand), etc., have reeled back from the Indian market. A variety of reasons ensure these decisions. Some of them include; Demonetization Policy Goods & Services Tax Introduction of Ride Sharing High Car & Fuel Prices Effect on Auto Jobs Struggles in India's Economy Conclusion Demonetization Policy The demonetization policy that was implemented in the year 2016 harmed the manufacturing industries on a large scale. It was a classic effect that followed the problem of lack of money supply in the economy due to newly printed currencies that were unavailable in commercial banks and even the RBI. The lack of cash or money with the people reduced their capacity to purchase cars, especially the luxury ones. This derailed consumer demand significantly and forced the producers to cut down on the supply side to prevent manufacturing losses. A decrease in output led to an increase in unemployment, affecting the entire economy and automobile industry altogether. Goods and Service Tax Next was the issue with the introduction of GST by the government in the year 2017. The GST levied on automobiles comes up to around 28%, especially levying the same rate for two-wheelers and high-end cars as well. Along with compensation cess, the cess on certain goods imported into India to compensate States for the loss of revenue associated with GST, the effective tax rate on most vehicles touches 43%. We observe that the trend of exits began in 2017 with General Motors. The switch from BSIV to BSVI in 2020 further increased costs for manufacturers BSVI engines are more expensive to manufacture, and the transition from BSIV to BSVI can cost companies 150-200 crores for each manufacturing unit. A government think-tank further proposed phasing out all diesel engines by 2030, and while the government later stated that no such proposal would be made, the environment remains changing and unstable. The tax imposed on scooters or even low-end vehicles or cars is too high for the lower-middle class to afford and access transportation. It makes the situation worse for the industry during the pandemic since automobiles are 2nd class non-essential goods, making it much less likely that a consumer would spend their minimal savings on a car, thus immensely affecting the manufacturing situation. Ride Sharing The advent of Ola, Uber, Metros, and other shared transportation services also severely hamper the need for purchasing a vehicle of their own. These shared services are relatively cheaper, require no maintenance, do not demand EMIs, and are far more convenient to access. The increase in the usage of public transportation services also increased due to consciousness in controlling air pollution, especially since the alarming rates of smog found in Delhi in the last couple of years, forcing the government to impose restrictions on using cars on a daily basis itself. All of this reduces the demand for owning cars and thus constrains the manufacturing capabilities. High Pricing The complex market system and the pricing in India in comparison to other countries strongly influence the decision to desert the country’s manufacturing atmosphere. The Indian market consists of a large population of potential consumers who are from the middle class and are extremely price sensitive. This is not simply because of the sticky prices of the product itself but also due to the after-sale expenses incurred due to maintenance, repair, fuel, etc. Only very few companies are able to manage and decode consumer preferences. In most cases, these companies tend to be based from India itself, like Maruti, Tata, Mahindra, Renault, etc. These sorts of companies tend to grab a large chunk of the market share, demotivating foreign companies to set up shop in the Indian automobile market. Electric Vehicles One of the recent and successful explorations when it comes to the automaker industry is the introduction of Electric Vehicles by Tesla and the interest being picked up by Tata Motors as well. Although an Indian company shows interest in selling electric cars, it is not yet a feasible idea for the Indian consumer market. The prices and the demand would constantly be indirectly proportional and it will grow harder for the manufacturers to reach equilibrium by supplying cars at cheaper rates while aiming to make profits. In 2020, Annual EV sales went down by -26% largely due to lockdowns. This causes multiple companies to pour their investment into different venues of manufacturing in various other countries. A new market full of opportunities awaits these companies in comparison to satisfying the incomprehensible Indian market and it appears to them that it might be a wiser decision to quit India. Effects on Jobs This exit has clearly had a negative impact on the GDP as well as the people of the country. People now have fewer options to choose from, and multiple people have lost jobs due to this mass exit. More than 4,000 employees of Ford and 2,000 of Harley Davidson suffered directly due to the closure. It is noteworthy that in the automobile industry when one direct employee is removed, 2-3 people suffer indirectly as there are multiple micro industries that rely on the auto sector. An estimated 64,000 jobs have been lost in the last 5 years due to automobile companies leaving the country. Micro, Small, and Medium-Scale Industries (MSMEs) have been affected on a large scale. There are around 500 small-scale enterprises that supply to three or four firms, resulting in a loss of up to 50% of orders due to Ford's decision. Indian Economy India struggles to provide economies of scale to these companies – the cost advantages gained due to the increase in efficiency stemming from a larger production of goods, i.e., a greater scale of operation. Most automobile brands have failed to acquire market share even after substantial investment, and most plants in this industry operate at less than 40% of their production capacity. Basically speaking, the Indian economy is not what they expected it to be. India was viewed as a highly untapped market, and the GDP was expected to show accelerating growth considering the demographic dividend in India’s high population (with around 12 million people entering the working-age population of 15-59 every year). However, these assumptions did not prove fruitful, and the light vehicle market grew annually grew at a rate of only 2% when compounded annually between the years 2011 and 2019. Most people turned towards servicing and replacing old cars, and first-time buyers were gradually reducing in the market, according to Gaurav Vanghal, associate director at IHS Markit. Additionally, the cost of owning a car has increased significantly, as well as fuel prices as well. In an already price-sensitive market, this further lowers demand. Conclusion We conclude that red-tapeism, unstable government policies, difficulty in acquiring market share, and a disappointing Indian economy are the prime reasons for automobile companies leaving India. The little understanding of foreign companies of Indian culture and the demands and needs of the consumer base in a price-sensitive market that does not provide economies of scale make the endeavor unfruitful. More: Slideshow on Why Major Automakers leaving India

India’s economy may be struggling, but its pharmaceutical industry is booming, thanks to initiatives to improve domestic access to medicine and a solid export market. But can such growth continue? India is a significant player in the global medicines industry. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US, and 25% of all medicine in the UK. Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14th by value. While the country’s economic growth sinks under 5%, the Indian pharmaceutical industry is growing by 7% to 8% a year, according to the Indian Pharmaceutical Alliance, while rating agency ICRA expects growth of 11% to 13% in 2020 Key Takeaways According to government sources, India's medical expenditures would increase by at least 9% to 12% in the next five years, making it one of the 10 largest nations in terms of medical spending. Compared to other nations, the cost of manufacturing pharmaceutical goods in India is lower and more effective. The BSE Healthcare Index has risen at a CAGR of 12% per year over the previous ten years, while the Nifty Pharma has returned approximately 10.94% per year India exports 16 billion more medicines than they import. There are about 3000 pharma companies in India, 10 pharma companies are part of the Nifty 50. Indian investors truly believe in the Indian pharma industry and consider it a defensive sector. But can you believe this country did not have access to even basic drugs and used to import all the medicines until the 1970s. Beginning of Indian Pharma The origins of India’s market leadership can be traced back to the independence era. Around 1947, western multinational corporations controlled India’s pharmaceutical market. They held almost 99% of the patents, and domestic drug prices in India were among the highest in the world. But around 1970, the Government decided to switch things ups. They tweaked India’s patent laws and the new amendments only protected the manufacturing process deployed to make new drugs. The Indian government saw this problem and started public sector pharma companies Hindustan Antibiotics Ltd. and Indian Drugs and Pharmaceutical Ltd. This act was passed to provide low-cost medicines to citizens and to grow the Indian pharmaceutical industry. This law patented the process of manufacturing medicines rather than the product and this act opened a lot of opportunities for Indian pharma companies. Now let's discuss what made the Indian pharmaceutical industry grow at such a good pace. Why Indian Pharma is Winning? 1. Cost-Effectiveness The cost of production of pharmaceutical products in India is very low compared to other nations. The lockdown in China has had a significant impact on India’s drug prices as well. Paracetamol, vitamins, and penicillin cost higher than before since the nationwide lockdown. To elaborate, the slow production of APIs translated into scarcity, which increased the costs of materials required to produce generics. At one point in time, the cost of a paracetamol shot was from Rs 250-300 kg to 400-450 kg. 2. Increasing Investment Foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached $1.206 Billion between April-December 2021. Even Indian retail investors have poured more than Rs 12,000 crore and this has moved pharma stocks to new hights. The BSE Healthcare index has risen at a CAGR of 12% per year over the previous ten years, while Nifty Pharma has returned approximately 10.94% per year. During the same period, Nifty has returned 12.28% per year, while Sensex has returned 12.72 % per year. With the spread of the coronavirus, the pharmaceutical industry and mutual funds that invest in it have done better than their counterparts recently. 3. Policy Support In June 2021, Finance Minister Ms. Nirmala Sitharaman announced an additional outlay of Rs. 197,000 crore (US$ 26,578.3 million) that will be utilized over five years for the pharmaceutical PLI scheme in 13 key sectors such as active pharmaceutical ingredients, drug intermediaries, and key starting materials. Weakness in Indian Pharma However, that doesn’t mean, it’ll be a walk in the park. Pharma companies are extremely dependent on foreign countries. For example, Divi’s derives the majority (80%) of its revenue from exports to global companies and almost a third of its revenue comes from the US alone. And although the US market is particularly lucrative, this dependency can be a prickly thorn sometimes. For instance, Between 2010 and 2015, FDA inspections of Indian companies more than doubled from 108 to 270. Around 25–30% of the total warning letters issued by the FDA could be attributed to India alone. Conclusion The process of pharmaceutical products is divided into 4 parts: research, product development, clinical tests, and marketing. The Indian industry has been coordinating all these parts very well. The research and development of the scientist, careful clinical research, and the marketing team's support are all perfect. The recent pandemic was the perfect example of how well our pharmaceutical industry helped save millions of lives. Do let us know your views on the Indian pharmaceutical industry in the comments.

Rupee Vs Dollar: Like other markets, the money market too works on the basis of demand and supply; thereby, if the demand for the dollar gets high, the rupee depreciates and that is the basic working methodology of the floating exchange rate. The Rupee has been staggering since the beginning of the year i.e fall in the purchasing power of rupee has been unreal. The value of $1 USD was Rs. 63.5 Which now is nearly Rs. 77and there are estimations that it will soon hit the Rs. 80 mark! That's around 20% depreciation in Rupee. Now you must be wondering if I need to worry about it if there is no foreign trip planned? Well, yes the rupee depreciation will not only affect your overseas expenses but also affect financial markets in India, interest rates on loans and even the overall Indian economy. So in this article we have covered everything about why the rupee is falling and what are its consequences. Why has the rupee been falling drastically? Decrease in the demand of rupee. Fundamental reason behind the fall or rise of any currency is demand. If demand for currency increases its value also increases. So if India exports goods and services and foreign investors invest in India the value of rupee goes up which has not been happening and thus the rupee is hitting all the down records. Foreign investors are exiting. Foreign investors have already pulled out over $21.3 bn (Rs 1.62 lakh crore) and the reasons are the Russia/Ukraine war as well as the increase in the repo rates and interest rates by reserve bank of India. Problems with Global Supply Chain There are multiple reasons that cause the depreciation of the INR which can range from inflation, global economy, rising global fuel prices, global geo-political scenarios and more. Imports now more expensive, while exports are cheaper With a small dip in the Indian currency, the Indian government has to pay a little extra for the same goods it was importing earlier. So, importing items get more expensive. Oil imports will get costlier, which has a direct impact on prices of many other things – anything that needs to be transported will (if it hasn’t, already) now see an increase in its prices.India currently imports 85% of its oil demand and the rise in crude oil prices directly increases import bill and expenses. How it can affect your Personal Finances? Inflation may go up. When we talk about finance and economy it's all interrelated. As discussed, India imports crude oil which weakens the rupee and also makes it expensive to buy crude oil.It will also import other products and also finished products like edible oil, petrol, electricity will be more expensive. All these factors will lead to inflation which every common man has to face. Effect on interest rates. The Reserve Bank of India controls inflation and implies regulations to control it. If the inflation increases because of rupee depreciation beyond the limit, the Reserve Bank of India. RBI can take various steps like increasing repo rates and bank rates to control the inflation. This results in high interest rates on loan and high fd rates by commercial banks. This indirectly affects the common man because of high interest rates on loans. Fall in overall returns on your portfolio. Depreciation in currency indirectly affects the financial markets and causes fall in financial markets. When the value of rupee depreciates it results in a lower index in Indian stock exchanges. Overall returns of investors in stock market,bond market and mutual funds often see the downfall in such conditions. Increase in overseas education and trips. Due to depreciation in rupee Indians have to pay a little extra may it be education in ivy league college or your dream vacation. Because of the decrease in the value of the rupee , the exchange value of the dollar increases and thus it directly affects your personal finance. How to maintain your portfolio? Invest in Gold Investors in India and around the world consider investing in the gold safe during the recession. When the world is suffering from an economic crisis due to the coronavirus pandemic, there is a hike in gold prices. This is due to the demand and supply factor. It must be noted that whenever there is recession or slowdown or depression in the economy, gold prices hike as they are considered to be the safest mode of investment by the investors. Rebalance Stocks A good investment strategy during a recession is to look for companies that are maintaining strong balance sheets or steady business models despite the economic headwinds. Some examples of these types of companies include utilities, basic consumer goods conglomerates, and defense stocks. In anticipation of weakening economic conditions, investors often add exposure to these groups in their portfolios. Increase Cash Reserve Save Money. Putting away money during difficult times can be challenging, however, even putting a small amount of money away can help. Experts recommend having money for three months of basic expenses, like rent or food. Build an Emergency Fund Try to build a corpus that can help you sustain your monthly petty expenses along with EMIs for at least six months. Having six months’ worth of expenses can seem like a daunting task, but one can achieve this goal by small contributions. Buy a Real Estate Don't buy a house. At least right now, During a recession, there are usually less buyers, so houses stay on the market longer. This makes sellers more likely to lower their listing prices, so that their home is easier to sell. You might even get lucky with a home at an auction. More That was everything you needed to know about why the rupee is weakening, how it affects your personal finance and how you can make your way through it. Do tell us about your views on the current economy and your analysis on why the rupee is falling in the comment section.