India’s $ 210 billion (non-food, non-pharmaceutical) retail market, which is growing 9-11%, represents a vastly untapped online opportunity. Currently, only 3 percent of valuable merchandise is sold online, enabling rapid growth in value e-commerce. Kunal Bahl, co-founder and CEO of Snapdeal, tells Activity area how the market, with its 220 million more valuable products, taps into this segment by supplying 60 percent of Indian households with products they can afford. Excerpts:
When do you plan to raise another round of funding, and how much will it be?
Right now, we are focused on executing our plan for customer experience, growth and profitability. Given the firm’s clear focus and leadership in the value e-commerce segment, investors continue to contact us to invest in the business, and at the right time we will explore the same.
Your recent campaign
focus on value
e-commerce. How is this different from traditional e-commerce agreements?
For a long time, e-commerce in India was about brands on the one hand, and relatively low-quality, low-cost items on the other. Value e-commerce is all about providing users with good quality products at affordable prices, without requiring a trade-off between price and quality. Value e-commerce is for consumers who are primarily looking for affordable lifestyle products and are not necessarily looking to buy discounted brands. In India, a value driven platform is a missing piece of the Indian e-commerce market. While a few platforms offer a limited selection of valuable items, at Snapdeal we understand that a dedicated value shopping platform is essential to reaching over 90% of online shoppers. Our efforts over the past four years have focused on creating value in e-commerce.
How is Snapdeal different from other ecommerce players who also offer value-added offers? Is there a parallel with value retailers such as DMart or Vishal Mega Mart?
Concentration is the key success factor in an ultra competitive e-commerce market. We have seen successful online businesses spring up in categories such as cosmetics, eyewear, and children’s products.
The value retail segment is the largest part of Indian retailing, and we are confident that the growth opportunity for a value-focused e-commerce leader such as Snapdeal is significant.
Well-established retail models such as DMart and Vishal Mega Mart are successfully serving this audience in physical markets. We are the first large-scale platform to create an online equivalent of these, with an exclusive focus on good-quality, well-priced products like everyday wear, everyday kitchenware. and decorative items for the home.
How did Snapdeal sculpt
a positioning in
Finding a balance between good quality and affordable prices is not an easy task – it requires that every part of the business be optimized to deliver value to customers, given the small size of the baskets, while ensuring consistent and good user experience.
For example, in an early industry, we offer free shipping on all orders, with no minimum order value requirement, ensuring that shipping costs don’t go down much. Working closely with our salespeople, we have built an assortment large enough to meet the full range of value needs.
For customers who are primarily looking for affordable value products in discretionary categories such as clothing, footwear, home decor and cooking, among others, we are able to meet all of their requirements without them having to do their shopping. shopping at local bazaars.
On Snapdeal, 100% of products are rated for their value and affordability. Technology has enabled us to provide a personalized flow to each client; a frictionless customer experience to facilitate ordering, delivery, as well as returns and refunds, which is very important to our customers who come mainly from small towns and are new to e-commerce.
Your last campaign
looks at the brand-oriented psyche. What
is the thought process
behind this campaign?
Seeking value is an integral part of an Indian customer’s buying consideration – both online and offline. Our latest campaign inspires consumers to look beyond sales talks to find the best value for their money and trust their wisdom to judge value against the hype.
While researching for the campaign, we surveyed hundreds of consumers who frequently buy brands and implicitly equate good quality with high prices. In blind tests, they were constantly amazed at the quality of the products, even when it came to affordable products not from well-known brands. The campaign uses humor to disrupt the idea that only expensive brands deliver good quality.