The business model here is, let's take an example of a head and shoulderd shampoo, The sachets of it available at ₹4 for 8.5ml so it's costing 47p/ml. If the consumer like that product then they shift to the larger size and of the product which priced ₹150 per 180 ml which means the cost of 1ml is 83paise. The company got profit of 36% increase.

The Business model and Profits logic

Later his son Rangnathan started a company called 'cavinkare' and launched a shampoo called Chik and sold it for 50paise. And the company sold 10lakh sachets in its initial year in 1983. He started with ₹15000 and now the company values ₹1100 crores +

The Start

Nearly 40years back the fmcg products we're sold in bottles and packets, but they aren't affordable for a common middle class people, then the man from Tamil Nadu, India named Chinni Krishnan come up with an idea that lower middle class person can also afford the products that rich person use.

The Story

For example, that 100ml of shampoo is priced ₹40 and it comes for 20 washes considering 5ml for wash . Chinni krishnan found out we can manufacture the same product in 5ml for just ₹2. But no company step front because of trust issues.

The Idea

Close to 40 years back, most of these FMCG products were sold in large packets and bottles. Hence, they were only limited to those who were well off. There was no concept of sachets back then. But, a small entrepreneur from Tamil Nadu introduced the concept of sachets to the entire country forcing even the large MNCs to follow suit. In the process, he ended up building a 500 crores INR shampoo brand called Chik. And today, almost 70% of the shampoo sales in India happen in sachets. In this video, we will understand the concept that brought about this revolution. Check out Think School's Online courses: 1. Learn how to communicate ideas like us with the Communication Masterclass: https://communication.thethinkschool.com/yt 2. Land your dream jobs and customers through the LinkedIn Masterclass: https://linkedinmasterclass.thethinkschool.com/yt 3. Create a Perfect Resume in less than 3 hours with the Resume Masterclass: https://resumemasterclass.thethinkschool.com/yt Want to buy the equipment we use? Mic: https://amzn.to/2PjDNAP Camera: https://amzn.to/3dMzojh Camera Stand: https://amzn.to/3nidnfp Mobile holder for stand: https://amzn.to/3xgCF25 Thumbnail by Jangaiah (If he likes your content, he'll do thumbnails for free contact him at nethulajangaiah@gmail.com) Follow Think School's on: Telegram group: https://t.me/Thinkschoolers LinkedIn: https://in.linkedin.com/company/the-think-school Instagram: https://www.instagram.com/thethinkschool/ Facebook: https://www.facebook.com/thethinkschool #chikshampoo #sachetrevolution #cavinkare

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Close to 40 years back, most of these FMCG products were sold in large packets and bottles. Hence, they were only limited to those who were well off. There was no concept of sachets back then. But, a small entrepreneur from Tamil Nadu introduced the concept of sachets to the entire country forcing even the large MNCs to follow suit. In the process, he ended up building a 500 crores INR shampoo brand called Chik. And today, almost 70% of the shampoo sales in India happen in sachets.

In this video, we will understand the concept that brought about this revolution.

Check out Think School's Online courses:
1. Learn how to communicate ideas like us with the Communication Masterclass:  https://communication.thethinkschool.com/yt
2. Land your dream jobs and customers through the LinkedIn Masterclass: https://linkedinmasterclass.thethinkschool.com/yt
3. Create a Perfect Resume in less than 3 hours with the Resume Masterclass: https://resumemasterclass.thethinkschool.com/yt

Open a Demat Account & Start investing: https://zerodha.com/open-account?c=ZMPUJE

Want to buy the equipment we use?
Mic: https://amzn.to/2PjDNAP
Camera: https://amzn.to/3dMzojh
Camera Stand: https://amzn.to/3nidnfp
Mobile holder for stand: https://amzn.to/3xgCF25

Thumbnail by Jangaiah
(If he likes your content, he'll do thumbnails for free contact him at nethulajangaiah@gmail.com)

Follow Think School's on:
Telegram group: https://t.me/Thinkschoolers
LinkedIn: https://in.linkedin.com/company/the-think-school
Instagram: https://www.instagram.com/thethinkschool/
Facebook: https://www.facebook.com/thethinkschool

#chikshampoo #sachetrevolution #cavinkare

The Indian education system is messed up and everyone knows about it. But very few are doing something to fix it.Think School is an education start-up  and we want to put a dent in the Indian education system. And we do that by providing world-class business education at less than the cost of denim jeans.

Our mission at Think School is to teach you all about business, geopolitics and economics which are subjects that schools and colleges typically neglect. We are here to provide an education that truly prepares you for the real world.


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