Sexiest business model of the future | Startup | Sarthak Ahuja

The sexiest business model for the future will be this...
A lot of these new-age businesses are making losses despite reaching mass scale, having captured market share and penetrating customer reach through digital channels...
And it has been done so unsustainably, that for any new player to attempt to reach their scale without burning as much money seems intimidating, and for them to turn profitable is still seemingly distant.
But let’s go down to first principles...
People either buy intangibles (services, experiences, and status signals) or tangibles (goods, and status signals).
Even at the core of your purchase from Amazon, Nykaa, Uber, Apple... there is a hardware product. There is something tangible you can touch and feel.
Even your D2C brands have realized that the only way to make margins is through backward integration to own the manufacturing facilities.
Your platform businesses like Amazon, Nykaa, Myntra... are getting into manufacturing their own label of products.
A lot of these are first white-labeled contract manufactured, but after a point, the margin lies in conquering the margin at the manufacturer level.
And this return to focus on manufacturing will force businesses to stop trying to justify premium through brands and status... but move focus towards keeping prices low for customers and focusing on cost reduction.
And this focus on further cost reduction will push businesses to innovate and drive further efficiencies in manufacturing.
If you’re in manufacturing, know that you will continue to be the future, as long as you can bring innovations here and be the next semi-conductor manufacturing monopoly for the world, or some such.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.