New Delhi: Snapdeal Marketplace Online Homegrown, which used to compete with Flipkart and Amazon, has reversed its business model to target the end of the market value.
This development is contrary to the background of a company rack supported by Softbank plans to merge $ 950 million with Walmart’s flipkart in 2017 and consolidate the entire business, including putting more than half of its workforce and selling main assets such as the FreeCharge mobile wallet business to Axis Bank and Logistics Arm Vulcan Express to the future group of Kishore Biyani.
“In recent years, we have focused on the e-commerce segment of our value and strategy also to continue to build up for this segment,” Kunal Bahl, Founder & CEO in Snapdeal, told Snapdeal, told TII.
“We are very clear about the customers we serve and that they are mainly ‘buyer value’.
So we will not sell very expensive items or upscale brands.” This is very contrasting to other online retailers in India such as Amazon and Flipkart who have been Set the value of gross merchandise (GMV) and fat margins as benchmarks to measure success.
“There are many retailers in India that we are looking for, including Vishal Megamart, V Mart,” said Bahl.
“The e-commerce value is no different from what they are – in terms of needs and customers they serve – and, in some ways, we build their online business equivalent.” To serve the lower end of the market, Snapdeal has used its resources to build the ability to provide depth in various and optimizing the supply chain to reach remote areas.
“The part is quite large from the country, especially very small cities, and villages still don’t get door service from e-commerce,” said Bahl.
“When you sell, on average, an item worth RS 200-400 is completely without shipping costs to buyers, it is important to engineer and optimize the supply chain.” Snapdeal reports RS 864 Crore’s revenue at FY20, marginal is higher than RS 839 Crore in FY19.